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Today's very positive update on Chrysos and MSA Labs confirms that the Chrysos rollout is on track and going rather well, with expanding global coverage.

And CAPD have raised their stake in MSA Labs to over 81% in a fundraising to enable further growth:

Https://www.londonstockexchange.com/news-article/CAPD/msalabs-trading-update/16031103

Cheers - great write-up. Just such good value:

"The Berenberg Price Objective Is 250p A Share.

However, very much more bullish views come from analyst Bob Liao, at the group’s NOMAD and joint broker Zeus Capital, he has estimates out for $825.5m revenues in 2023, EBITDA of $91.8m and earnings of 20.8c per share.

For 2024 his figures suggest $868.9m revenues, EBITDA of $97.3m and earnings of 22.4c per share.

Looking further forward to the 2025 year, he goes for $921.2m revenues, EBITDA $104.5m and earnings of 24.3c per share.

At Edison Research, analysts Max Hayes and Katherine Thompson, are looking for $833.7m revenues this year, $94.4m EBITDA and 20.1c of earnings.

For 2024 they see $909.6m sales, $103.0m EBITDA and 22.5c of earnings.

Latest analyst forecasts are within a range of $771.8m and $833.7m for FY23 revenue and $90.9m and $97.8m for FY23 EBITDA

Of the three brokers analysts that follow the group the Highest Target Price was 350p, the Lowest Target Price was 180p, with the consensus average being 265p per share.

My View – Break To 130p And Then 150p+

This £327m capitalised business is ‘a real money machine’, it is highly cash generative.

CentralNic’s expense base is stable, which should allow continued revenue growth to expand margins.

It is worthy of a significantly higher market rating than it has currently.

The group had an outstanding start to the year, achieving its best-ever first quarter, so I look forward to a positive Interim statement within the next fortnight.

I remain a great fan of its annual recurring revenues and its massive global cash generation.

It has a proven business model and is totally scalable as it grows strongly.

Looking forward to the forthcoming statement I am hoping that it will bring about some upward regrading of estimates by brokers and the market generally.

As I have stated before – ‘Value will out’ and that will happen with CentralNic, these shares, which touched 121p after the big buy-back news earlier this week, are definitely for buying at around the current 115p.

At that level they are only trading on just 7.25 times price-to-earnings – which is exceptionally cheap for such a fund generator, and just half of the UK market average rating.

Once the shares have bounced back up through the 130p level, I see them returning to trade in the 150p – 160p range which was peaked last December."

As regards today's trading update, the core business is going great guns and needs funding to finance the growth. Fine. But the discount to the share price in the accompanying placing is too great to stomach easily. Let's hope those who didn't get enough stock due to the oversubscription come into the market to buy up stock.

Prospects look terrific with, as Cenkos state, "government backed investment in infrastructure, the move to net zero and the significant expansion in the Data Centre market)" plus healthcare and the move to smart buildings generally.

Cenkos conclude today:

"TClarke has announced an oversubscribed placing to raise £10.7m (gross) at an issue price of 122p. The funds will be deployed to capture and deliver identified contract opportunities in the London region, alongside strengthening the balance sheet. These new contract opportunities are expected to materially enhance profitability, with higher operating margins reflecting the benefits from enhanced economies of scale. On our revised forecasts, the group is trading on a FY24E PE of 6x and an EV/EBITDA of 2.7x. We believe this looks a very attractive entry point, with the 4.5% dividend yield providing an additional underpin. BUY"

"View and current trading:

Alongside today’s placing announcement, the group has confirmed that trading since the last update (10 May 2023) has continued to be strong, with the order book increasing to £781m, a sharp uplift to the FY22A position of £585m. It is also £4.5m cash positive as at 30 June 2023. There has been a step change in the growth of this business in recent years (with a record year of growth delivered in FY22) it has deep relationships with its client base (90% of its contracts are with repeat clients and (or) principal contractors) and the order book provides the group with excellent visibility. BUY"

Liberum this morning also note "AGM trading update indicates trading has been in line."

They reiterate their Buy recommendation and 335p target price.

Their forecasts are 15.3p EPS this year, rising to 18.9p EPS and then 22.7p EPS.

That's with a 1.4p dividend this year rising to 1.6p and 1.8p.

So a similar ballpark to Singer's forecasts. Which again is hopefully an indication that they've been guided in that direction.

Today's AGM update "appears" to be a step in the right direction.

Certainly Singer Capital's update this morning indicates that they've been guided to reiterate their rebased forecasts for this year following today's update.

Singer reiterate their 249p price target, and also their forecasts of:

- 15.8p EPS this year rising to 20.2p EPS

- 1.4p and then 1.6p dividends

- £6m net cash rising to £8.7m at the end of each financial year

- a P/E of 7.9 falling to 6.2

Looks like SCE have a new major shareholder - Janus Henderson Group PLC have declared going above 5% with a 5.18% holding and 12,517,500 shares:

Https://uk.advfn.com/stock-market/london/surface-transforms-SCE/share-news/Surface-Transforms-PLC-Holdings-in-Company/91502002

Great to see CEO buying a maiden stake here and particularly the CFO spending almost £50k on CAPD shares.

Golden Rim's shares were up 13% overnight to 9 month highs on "encouraging" drilling results at Kada, where CAPD are the drilling contractor (and also own around £1.5m of shares):

Https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02683401-3A621191?access_token=83ff96335c2d45a094df02a206a39ff4

Nice 17,857 buy at 112p just reported - looks like someone's filled their ISA for this year with £20k of TST shares.

AmcoGiffen have just been awarded a £5m contract to rebuild the fire-damaged Troon station:

Https://news.railbusinessdaily.com/amcogiffen-awarded-contract-for-troon-station-rebuild/

QTS have announced a senior hire to aid their expansion in England:

Https://news.railbusinessdaily.com/qts-training-announces-senior-hire-to-bolster-capabilities-in-midlands-and-yorkshire/

"Lorna Gibson, Director of QTS Training said: “It’s great to have welcomed Phil at such an exciting time for us. His vast knowledge and experience will prove hugely beneficial to QTS Training, particularly as we scale up our operations at our English training centres.

“We have huge ambitions to grow our business in the next few years and Phil will play a crucial role in this, helping to grow both the team and the level of training services we offer."

And here's nice coverage of Shepley's 75 years in business and their nuclear contracts at Sellafield etc:

Https://www.timesandstar.co.uk/news/23589838.firm-engineered-success-75-years/

Singer Capital have now raised their price target to 2p (from 1.5p).

This is in line with Equity Development who've also increased to 2p.

Singer forecast 0.169p EPS this year to 30/9/23, rising to 0.197p EPS to 30/9/25. That's a current year P/E of 7.98 falling to 6.85.

Net cash rises over the period to £2.1m at 30/9/25 (remember that a large proportion of REAT's revenue is not only recurring, but paid in advance).

Singer conclude that at the 1.3p at the time of the note:

"Shares attractively valued

We believe the shares are substantially undervalued, trading on a Sep. ’24 P/E rating of only 7.9x, falling to 6.6x. We target a 10x Sep. ’25 P/E multiple, which implies a 2.0p target price (increased from 1.5p). Given the M&A strategy and opportunities to grow LaddersFree ahead of our forecasts, we see scope for the price to exceed this level over time."

Allenby Capital have also now updated - they too have a 90p valuation:

"MTI Wireless Edge* (MWE.L, 44.5p/£39.4m)

Contract win: Repeat military antenna order (03.07.23)

• Repeat order from a European customer, worth $1.4m, for the manufacture of military antennas. The principal part of the contract relates to the manufacture of an existing product line, with the balance relating to upgrades to the antenna solution.

• The contract is expected to be delivered within 14 months.

• MTI also continues to purchase shares to be held in treasury with 225,000 currently held.

• No change to forecasts or 90p/share fair value.

Allenby Capital comment: Good contract win with an existing European customer for military antennas that covers both the existing product line but also upgrades. The win indicates that the customer is happy with both MTI's products and services. MTI reports increasing demand for military antennas with high levels of new enquiries and new contract negotiations. No change to forecasts or 90p/share fair value."

Lovely new coverage of CMH on the excellent AIM Prospector web site - the article is free to view after registration:

Https://www.aimprospector.co.uk/product/39

Conclusion:

"On 22nd June we got the announcement that appeared to confirm that the fightback

was on. A major contract win to supply turbo parts for a car manufacturer was announced at Chamberlin and Hill, worth a total of €7.3m over a period of eight years.

Like all manufacturers, Chamberlin benefits from economies of scale. As the

business runs closer to capacity, the profit delivered from each extra pound of sales increases. It is being reported that Chamberlin's broker is forecasting EPS of 0.6p for the year ending May 2024. A small loss before tax is forecast for the

year to May 2023.

Chamberlin's challenge hasn't changed. To turn a profit from its cyclical operations by executing properly and winning new business. Its products are highly relevant and some of Chamberlin's capabilities are difficult for competitors to replicate. Successful turnaround could lead to a price of 10p+."

Shore Capital retain their 90p valuation here after today's contract win.

They forecast 4.2c EPS this year and a 3.2c dividend, with $9.2m cash at the year end.

That's 8.3p per share of cash, giving rise to an ex-cash P/E of only 11.2 for this year.

They conclude:

"Outlook and valuation:

In the March note we also highlighted that each of the divisions has growth drivers with, in our view, Mottech particularly well placed to potentially see stronger demand than we forecast for its water management and control software. Typically, the software improves the efficiency of irrigation systems, while reducing the cost of operating them. Summit/PSK had a strong FY22A and we would also expect to see continued good demand for its defence-related products and services as demonstrated by today’s contract win. Finally, the Antenna division is likely to benefit from the rollout of 5G across the world as it already supplies seven of the top ten operators with its technologies. The share price has drifted lower since the release of the Q1 results in May.

Ahead of Q2/H1 FY23F results in mid-August, we maintain a 90p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY23F EV/EBITDA multiple of 11.2x (the average of our peer group)."

Big article in yesterday's Sunday Times about asbestos in schools is likely terrific news for REAT over time.

The ST are launching a campaign for government action as there are 21,500 schools which contain asbestos and an estimated 10,000 teachers, pupils and staff have died from asbestos exposure at schools in the past four decades.

Firstly, REAT has a full asbestos removal licence, enabling it to carry out removal and encapsulation of asbestos and full reinstatement:

Https://www.sharecast.com/news/aim-bulletin/react-group-adds-asbestos-removal-to-decontamination-offering--1017677.html

Secondly, via its Fidelis acquisition REAT already has a large portfolio of schools taking its services (and from memory REAT already had schools even before Fidelis was acquired). It should be easy to cross-sell as REAT have already proven they can do successfully.

Here's the article:

Https://www.thetimes.co.uk/article/act-now-on-asbestos-pupils-and-teachers-being-killed-years-after-exposure-pznsmtd6p

"The Sunday Times is campaigning for a phased removal of asbestos, starting with schools and hospitals. Government policy is to leave it in place unless it is disturbed and damaged. But with many lightweight prefabricated structures built in the 1950s, 1960s and 1970s now in a state of disrepair, this is no longer a viable policy: it could be putting schoolchildren, teachers and ancillary workers at risk. Not everyone who inhales asbestos will be affected by it, but some need to breathe in only a few fibres."

"In 2021 the DfE costed the backlog of school repairs in England at £11.4 billion. The following year the department said there was a risk of “the collapse of one or more blocks in some schools which are at, or approaching the end of, their designed life expectancy”.

A massive increase in the buyback programme - it's now £34m, i.e around 10% of the shares in issue (increased from £4m as originally announced for this programme).

Great to see - this should put the cat amongst the pigeons.

This shows a great deal of confidence going forward, likely confirmed by the note in the RNS that CNIC "confirms that it currently has no unpublished price sensitive information", i.e trading must be proceeding well at present without anything adverse to report given we're now at the half year stage.

Good news - the Vigilant sale has completed smoothly.

We now know that this £7.6m m/cap company, which already had £0.65m net cash, will now receive over time a further £7.6m with between £2.1m and £3.4m receivable immediately.

Plus we already know that trading has been "strong" this H2 and the period to 30th June will report good figures ahead of last year.

Mucho undervalued imho.

Excellent $1.4m contract win announced today for the manufacturing of military antennas.

Plus an encouraging comment that this "is also part of the increasing demand that we are currently experiencing in new enquiry levels and new contract negotiations for defence related solutions from throughout Europe as well as other regions":

Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-win/91482444

The numbers and particularly the general trends and tone of today's interims look fine to me, particularly pleased with the confidence in the outlook for the full year.

In a bit of a rush, but just to say Equity Development's update includes an increase in their price target to 2p (from 1.7p).

They forecast 0.14p EPS for this year to 30/9/23, followed by 0.16p and 0.19p EPS.

They conclude:

"Records broken and encouraging trends

The Group has delivered record revenues and EBITDA in H1 to March 2023. The rising

proportion of recurring revenues, improving margins and strong cash generation in

consolidating, specialist markets has resulted in improved visibility. As such, we have introduced estimates for FY24 and FY25, with an expectation that EBITDA margins will improve to 13%+ by FY25 (vs. 7.0% in FY22A). As the final deferred consideration will be paid during FY24, we expect net cash to rise to £3m or 34% of the NAV during FY25. Our increased fair value assumption reflects our DCF and FY1 PER and price/book peer group models."

"Rise in fair value / share assumption

Improved visibility generated by the focus on added-value, long term contracts has enabled us to introduce estimates for FY24 and FY25. We anticipate a CAGR in revenues/EBITDA of 15.3%/35.8% respectively between FY22A and FY25F. Adj. EBITDA margins increase from 7.0% to 13.4%. Our expectation is investment in the business and/or M&A will take precedence over dividends for now. We have increased our fair value / share estimate to 2.0p (from 1.7p), a 57% premium to the current price."

Here comes WH Ireland to cheer you all up! They retain their 9.5p target price, and have ever so slightly reduced their forecasts given cashews being slightly behind.

They now forecast 0.4p EPS this year and 0.9p EPS next year, for a P/E of 8.3 falling to 3.9.

Extracts:

"FY22A results: palm oil profits held up well; cashews bedding in; expects strong ‘23

DKL’s FY results today show that its palm oil business generated a highly creditable performance in a year in which harvests were unusually low, while the group also succeeded in bedding in the new cashew operation. The latter made a negative contribution in FY22A, but is now well-positioned to become cash-generative in the course of FY23E. DKL is an increasingly diversified agricultural group focused on West Africa (Côte d’Ivoire), with activities which include a fully operational, sustainably sourced palm oil business and a growing cashew processing operation.

The company’s achievement in generating €4.6m of EBITDA in its palm oil business despite unprecedentedly low volumes reflects high pricing but also a proactive and efficient model focussing on local producers and meaningful export markets. With strong volumes in the palm oil high season in recent months, and with cashew machinery now fully installed and progressing towards target capacity, significant

benefits anticipated this year are supportive of our forecasts and 9.5p fair value assessment."

"Forecasts / valuation

DKL reports its main business (90%-plus of revenues), palm oil, on a monthly basis, giving an unusual degree of transparency. We have seen a sequence of strongly

improving volumes – combined with the already strong pricing, these should ensure an excellent year for this business. The bedded in cashew operation offers significant upside. With FY22A cashew numbers marginally behind forecast (equipment delays, coupled with prudent accounting), we are shaving our FY23E and FY24E forecasts modestly on a precautionary basis – recognising upside risk given the potential for palm oil to outperform in the current year.

We retain our 9.5p fair value assessment and see upside to the shares."

Excellent news for RNWH yesterday, with OFWAT accelerating £2.2 billion of water infrastructure investment:

"Ofwat approves early start for £2.2bn water infrastructure investment with companies under pressure to cut leaks and river pollution

Ofwat has approved acceleration of 33 investments by water firms worth £2.2bn

They include measures to improve water quality and install smart metres

The water industry watchdog has given the green light to the acceleration of around £2.2billion worth of investments to reduce leaks and river pollution.

Ofwat said on Tuesday it has approved 33 investment schemes put forward by water companies, which include measures to improve water quality and install smart meters.

The first tranche of investments is set to begin in the next two financial years, from 2023 to 2025, with projects to be completed by 2030.

etc"

Https://www.thisismoney.co.uk/money/markets/article-12237483/Ofwat-gives-green-light-2-2bn-investments-water-firms.html?ico=mol_desktop_moneymarkets-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Fmarkets%2Findex.html&_gl=1*4bivnt*_ga*MzIwNDgxMjkxLjE2NjQwNTQwMzU.*_ga_XE0XLFFF16*MTY4NzkzMTQ0Ni44NS4xLjE2ODc5MzE1NDEuMC4wLjA.&_ga=2.249081607.1443197997.1687845082-320481291.1664054035