Morning all!
A rare event – No RNS to report on today for companies in my universe.
As always, all comment most welcome!
A bit tangential, but I see Graham Neary's Cube Investments has created a little bit of a stir at £SO4 (Salt Lake Potash):
https://www.investegate.co.uk/salt-lake-potash-ltd--so4-/rns/statement-regarding-online-article/201811190700067317H/
My morning smallcap tweet: MPL open offer. Do you feel lucky, punk?
Mercantile Ports & Logistics (LON:MPL), Kromek (LON:KMK), Pipehawk (LON:PIP), Johnston Press (LON:JPR)
Mercantile Ports and Logistics (MPL) [Late Friday] £27.75m placing and £2.07m open offer at 2p, a 2.5% discount. 235% dilution. Will be used to partially substitute undrawn banking facility, pay accrued bank interest and other outstanding liabilities, along with the continued construction and completion of the port. "Commercial operations are about to commence." Those who have been holding their breath dies long ago. MPL (nee SPL) IPO'd in 2010 at 250p and was fully funded to finish the port in 2013.
Kromek Group (KMK) wins five-year $7.8m baggage screening contract.
Pipehawk (PIP) FY rev down 16%, EPS -0.45p (+0.54p). Expected orders "not received until late in the financial year with consequent underutilisation of staff - and hence profitability. Nevertheless, as described below, since the third quarter the orders have flowed in and we are now extremely busy." No F/C.
Johnston Press (JPR) Entering administration somewhat understated as "Strategic Review Update - End of FSP (formal sale process)." Bondholders likely to buy it.
Sirius Real Estate (LON:SRE) - "In the first half, we achieved a significant milestone, exceeding the €1 billion mark for assets owned. We saw a 43% year-on-year increase in profit before tax underpinned by a €69.3 million valuation uplift, new lettings of more than 83,000 sqm and €6.6 million of annualised rent roll signed in the period and are able to report a 2.6% like-for-like rental growth despite the impact from three expected large move-outs. This performance reflects the success of our asset management strategy alongside the currently strong German market.
Our business model and the diverse nature of the Sirius portfolio has always been a key strength. Occupier demand for industrial assets and secondary offices in Germany has never been greater.
We believe this market will continue for some time and Sirius is very well positioned to take advantage of it. With the portfolio being valued at a defensive 7.8% gross yield and having significant amounts of value-add opportunity within the 19% vacancy, we can see considerable upside to come from income and capital growth over the next few years."
Adjusted NAV 70.52c+7.3% so at a buy price of 60.6p trading well below NAV. Operations in Germany so I don't see any Brexit impact. (I hold)
