Avacta – 180p

20 May 2020 – distribution agreement

The company has announced that it has entered into an exclusive distribution agreement with Medusa19 to supply a saliva based rapid test for Covid 19.  The test should give a result within minutes and is designed for use by both healthcare professionals and consumers around the world.  The company’s share price has continued to strengthen and. having tipped the shares at 17.5p in January as one of our Shares of the Year these have now reached acclaimed ten-bagger status!  They are a FIRM HOLD.

Duke Royalty – 28.3p

14 May 2020 – trading and dividend update

The company has decided that although its trading remains pretty resilient, it would be prudent not to pay out the next cash dividend which would have been due for the June quarter, but to pay this as a scrip dividend instead.  At this stage the timing and amount of the dividend are not known but these will be revealed next month.  The group has suffered like most others from the downturn caused by coronavirus, but it expects to receive its royalty income as expected although this may be delayed.  The company has a strong balance sheet with cash on hand of over £3m and up to a further £18m available through a revolving line of credit.  Although the share price has recovered from its low it still stands only just above half the level reached in January and we believe this justifies a recommendation of BUY.

EMIS Group – 1065p

13 May 2020 – director share purchase

Non-executive director Patrick De Smedt has acquired 10,000 shares in the company at a price of 1047p each.  This is a useful vindication of our buy recommendation in the last issue.  Continue to BUY.

Vodafone – 122.88p

12 May 2020 – final results

Results for the year ended 31 March 2020 have been released.  Group revenue grew by 3.0% to €45.0bn, supported by improving commercial momentum in Europe.  Adjusted EBITDA grew by 2.6% to €14.9bn and free cash flow grew by 12.2% to €4.9bn.  Adjusted earnings per share fell from 6.27c to 5.60c.  Dividends per share were maintained at 9.00c.  This is a solid business which should be resilient despite current market conditions.  We keep our BUY rating.

Zytronic – 120p

12 May 2020 – interim results

Results for the six months ended 31 March 2020.  Group revenue was £7.4m (2019: £9.5m), impacted by falls in Gaming, Financial and Vending revenues.  Profit before tax was £0.5m (2019: £1.4m) and basic earnings per share slipped from 7.4p to 2.5p.  No interim dividend was declared due to Covid-19 (2019: 7.6p) but net cash as at the period end was healthy at £12.4m (30 September 2019: £13.1m).  The shares are a BUY.


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