Surgical Innovations – 2.35p

7 November 2019 – director dealing

Non-executive director Paul Hardy has continued to add to his holding in the company, acquiring another 100,000 shares at 2.3p.  We continue to rate the shares as a BUY.

Tyman – 228p

6 November 2019 – trading update

The company has announced a trading update covering the period from 1 July to date and this has confirmed that trading is in line with expectations with revenues and adjusted operating profit ahead of 2018.  This is despite the fact that markets remain challenging with weakness seen in the UK and European markets whilst trading in North America is broadly flat.  The group is seeing the benefit of last year’s acquisitions and with some improvement in operational performance being seen in North America the outlook remains encouraging.  We re-iterate our recommendation of BUY.

Surgical Innovations – 2.35p

5 November 2019 – director share purchase

The company has announced that non-executive director Paul Hardy has bought 500,000 shares in the company at 2.24p.  This takes his holding to over 6.8m shares and once again we re-iterate our recommendation of BUY.

Equiniti – 222p

4 November 2019 – acquisition

The company has announced that it has acquired US based Corporate Stock Transfer for an undisclosed sum.  The latter is a share registrar to companies with a market capitalisation of between $50m – $300m and has over 700 clients.  Based in Denver, Colorado, the acquisition will expand the group’s US business and will take it into the micro and small-cap client space which is a new growth area for the business.  We re-iterate our recommendation of BUY.

Duke Royalty – 44p

1 November 2019 – follow-on contribution

A follow-on investment of £2m into existing royalty partner Lynx Equity (UK) Ltd has been announced.  Lynx UK will allocate Duke’s further contribution towards the acquisition of Danish manufacturer, Sundby Trapper, which was undertaken in May 2019.  This follow-on investment diversifies both Duke’s portfolio and Lynx UK’s revenue base.  Based on the increased investment and enhanced exposure of £12m in Lynx UK, Duke  will be entitled to higher distributions of £1.6m per annum from Lynx UK from November 2019.  This represents a pro forma cash yield of 13.0% on total invested capital.  This follow-on transaction will also increase the security of Duke’s investment and all other terms of the £2m contribution are the same as Duke’s previous investment made into Lynx UK.  Sundby Trapper, founded in 1964, is a manufacturer of specialised steel staircases and related products in Denmark and throughout the Nordic region.  It has a strong market presence and a solid growth opportunity servicing residential, commercial and institutional markets. It has won bids for prestigious projects including The National Gallery of Denmark and the Norwegian Royal Palace.  The previously announced issue of £17.5m of equity at 44p per share has also been completed, with significant director participation.  We keep our BUY rating.

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