… Eurozone banks are likely to need around 200bn euros of additional capital. These Banks will not be able to raise it on markets so it would have to come from cash strapped governments.
…the FTSE 100 and 250 improved sharply with 3.1% and 3.6% respectively. The Aim All Share at 715 increased just over 3%. It would seem that Eurozone Debt control optimism and a splatter of corporate news, out-weighted the less optimistic news on unemployment reaching a 17 year high, earnings increasing by 1.8% and a muted 0.3% rise in UK Retail Sales.
…inflation is set to increase from 4.5% when the Retail Price Index is reported on Tuesday and it’s probably just a matter of months before it reaches 5% and beyond. Wednesday’s BOE Minutes will show why QE2 was needed with an insight on reducing GDP Growth. After last Friday’s higher than predicted Retail Sales in the US the likely impact economic indicators this week will be Industrial Production, Car Registrations, and Housing Starts. Markets are likely to be flat this week.
Inland (INL) – £31.3m at 17.25p
Brownfield land developer . Inland has made an initial contribution from its Drayton Garden Village development site helped Inland to treble its profit in the year to June 2011. Inland is focused on developments in south east England. Revenues rose from £16.5m to £21.4m in the year to June 2011, while pre-tax profit jumped from £1.05m to £3.54m. The net asset value is 26.5p a share. Inland intends to change its name to Inland Homes to reiterate its exposure to housebuilding even though the brownfield land development is likely to remain the principal revenue generator. However, the housebuilding part of the business will be more predictable than land sales. Inland generated £4m of profits from Drayton Garden Village last year – included in the revenues figure – and believes this could rise to a total of £18m over the next three or four years. Planning permission remains difficult to achieve and the government’s localisation plans won’t make it any easier.
Inland paid off its borrowings from RBS in order to make sure it was not hit with penalties. It is talking to alternative banks about new facilities. There is a small loan from Close Brothers on the balance sheet. Net debt was £420,000 at the end of June 2011.
TEG Group (TEG) – £10.3m at 8.75p
Waste composting plants operator TEG Group reported a higher interim loss due to delays in its Greater Manchester contract but recurring revenues are increasing. The fourth site in Greater Manchester will proceed but the equipment sales related to this Bolton plant will not contribute much this year. Originally this could have contributed at least £4m this year but the delay means that it won’t be anywhere near that. TEG processed 86% more waste in the first half. Revenues increased 6% to £9.33m in the six months to June 2011, while the loss increased from £376,000 to £798,000. Equipment sales fell and recurring revenues from plants operated by TEG jumped from £2.15m to £3.84m. Around £1.5m of the increase came from the Simpro acquisition but there was also organic growth.
TEG and its partner Alkane Energy were appointed preferred bidders for a food waste and anaerobic digestion contract for three North Wales councils: Denbighshire County Council, Conwy County Borough Council and Flintshire County Council. This is the first of a number of Welsh waste projects which TEG is bidding for. TEG’s first anaerobic digestion plant will be in Perth and this should be commissioned by the end of this year. There should be news of the planning application for a site in Dagenham sortly. If things go to plan this plant could be up and running by the end of next year.
House broker Ambrian believes that TEG is on course for full year revenues of £19m, down from £20.7m. Following a period of uncertainty about public spending there are more projects starting to come through. There was £1.52m in the bank at the end of June 2011, although net debt was £868,000. Since the recent £3.69m placing at 10p a share the cash pile has increased to £3.31m. Around £1m of working capital is required for the North Wales contract. The latest plants will be project financed. There was no cash outflow from operations in the first half so TEG has plenty of cash to invest in new operations.
ECKOH (ECK) – £16m at 8.25p
Eckoh has announced that it will be launching a new solution, EckohASSIST offers an additional way to reduce contact call centre costs and to provide an easier customer experience. The service takes advantage of Eckoh’s speech recognition technology, enabling a caller to ask for assistance in their own words, rather than by choosing preselected options. The service starts with the prompt “How may I help you?” and analyses the caller’s free form response to select the most appropriate recipient for the call. If the service cannot accurately identify the response it will automatically stream the customer to a contact centre agent, so that the call can be correctly routed without the caller having to speak to the agent. The prospective P/E for March 12 is 13.5x on forecast PBT of £0.61m falling to a P/E of 8.8x by 2013.
Motive Television (MTV) – 0.42p at £4m
Motive Television has signed a letter of intent (LOI) with Central European Media Enterprises (CME) This is a major milestone in preparing the ground for the deployment of ‘Television Anytime Anywhere’ these technologies on a commercial basis in a market of 18m TV households. Motive will be supplying advisory and consulting services using its Television Anytime Anywhere technologies. This LOI follows the technical pilot for CME in 2010 and the planning project of earlier this year.
In terms of the LOI, Motive is currently working on technical specifications for CME’s operating company in the Czech Republic and will then work on the potential roll out of Motive’s technologies in CME’s markets. Once this process is completed, the final stage will be the signing of a master agreement, which will define the commercial terms under which these technologies will be deployed. A small loss is forecast this year and could be replaced by a small profit for the Dec 2012 year –end.
ANT (ANTP) – £6.68m at 27p
IPTV technology ANT Galio Move allows users to stream live and recorded content directly from their Set-Top Box (STB) or TV via Wi-Fi to their companion device – anywhere in the home, opening up a range of new viewing scenarios.ANT says that there are 27 set top box licensees that are currently shipping products. The ANT technology enables them to offer additional services in order to prevent their products being seen as low margin commodity items. The Company’s first entry into the companion device market helps to Maximise the functionality of STBs and TVs, enabling broadcasters, operators, and, TV and STB vendors to offer extended live TV viewing on companion devices, such as the Apple iPad; responding directly to the growing demand from viewers for a ‘TV everywhere’ experience.
According to Arbuthnot, ANT could move into profit in 2012. A loss of £100,000 is expected for this year, which is lower than the first half loss of £310,000. Interim revenues were flat at £2.14m. Profits are being forecast for the December 2012 year end of£0.68p for an EPS of 2.8p so a prospective P/E of 9.6x.There is still £4.78m in the bank and it should remain above £4m at the end of the year.