Report
Brian Moretta ...
  • Dorothea Hill
  • Jason Streets
  • Mark Thomas
  • Martin Hall
  • Mike Foster
  • Nigel Hawkins
  • Paul Singer
  • Stephen Clapham
  • Tony Williams
  • Yingheng Chen

Hardman & Co Monthly: February 2019

This Investment Research Paper addresses the issue of renewable power generation in the UK and in mainland Europe, which – after the deep-seated financial crisis of 2008/09 and the ensuing recession – now has better prospects of achieving critical mass. It also considers investment perspectives.

In recent years, there has been a major shift in favour of renewable generation. It has been led by wind generation, mainly on-shore but also increasingly off-shore. In the UK’s case, there has been a sea-change in operating costs, illustrated by the successful bids by two leading energy companies – EdP Orsted and Engie – to build and operate North Sea wind farms....
Underlyings
600 Group PLC

600 Group is an engineering group. Co. operates these businesses from locations in North America, Europe and Australia selling into more than 180 countries worldwide. Co. has two segments: Machine Tools and Precision Engineered Components, which designs and develops metal processing machine tools sold under the brand names Colchester, Harrison and Clausing and designs and manufactures precision engineering components under the brand names Pratt Burnerd and Gamet; and Industrial Laser Systems, which operates under the combined TYKMA Electrox brand that provides laser solutions across a number of industrial laser applications including marking, engraving and micro-material processing.

Advanced Oncotherapy

Advanced Oncotherapy is focused on providing radiotherapy systems for cancer treatment through the use of a proton therapy technology. Co. operates in two business segments: proton therapy and healthcare related properties. The healthcare related property U.K. segment relates to Co.'s property in Folkestone, which is being marketed for sale.

Avacta Group

Avacta Group is a biotechnology company that is developing biotherapeutics and reagents based on its proprietary Affimer technology, an engineered alternative to antibodies. Affimer® reagents and therapeutics are a class of non-antibody binding proteins that have been engineered for a range of applications where antibodies and aptamers have limitations. Co. has two operating segments: Life Sciences, which provides custom Affimers for reagents and diagnostics, drug and biomarker discovery in biotech research and development; and Animal Health, which provides tools and contract services to assist diagnosis of conditions in animals to enable treatment for veterinarians.

Burford Capital Limited

City Of London Investment Group

City of London Investment Group is the holding company for a number of subsidiaries. The principal operating subsidiary is City of London Investment Management Company Limited, which acts as an investment manager on 38 accounts with a total of £3.58 billion under management as at June 30 2017. Co. is an asset management group with an institutional client focus specializing in Emerging Market closed-end fund investments. Co.'s range also include Developed, Frontier and Global Tactical Asset Allocation closed-end fund strategies.

Civitas Social Housing Plc

Civitas Social Housing is a real estate investment trust investing into existing portfolios of built social homes in England and Wales. Investment Manager: Langham Hall UK Services LLP Investment Adviser: Civitas Housing Advisors Limited

Diurnal Group

Diurnal Group is a pharma company developing products for the life-long treatment of chronic endocrine conditions. Co. is focused on addressing clinical and patient needs in hormone replacement, initially by developing and marketing products for the rare orphan diseases congenital adrenal hyperplasia and adrenal insufficiency. Co.'s products include Infacort®, an immediate-release hydrocortisone preparation targeting Adrenal Insufficiency (including Congenital Adrenal Hyperplasia) in children under six years of age in Europe and 16 years of age in the U.S.; and Chronocort®, a modified-release hydrocortisone preparation, initially targeting Congenital Adrenal Hyperplasia in adult patients.

Genedrive

Genedrive is a holding company. Through its subsidiaries, Co. is a molecular diagnostics business developing and commercializing a point of care diagnostics platform for the diagnosis of infectious diseases and for use in patient stratification (genotyping), pathogen detection and other indications. Co.'s Genedrive® is a patented small polymerase chain reaction platform which enables rapid nucleic acid amplification and detection from various sample types, including plasma, sputum and buccal swabs. Co. also provides contract research services to drug development companies under the Epistem brand name.

Haydale Graphene Industries

Haydale Graphene Industrials uses materials, including graphene and silicon carbide (SiC), to enhance the quality and performance of its customers' products. In the U.S., Co. manufactures proprietary silicon carbide fibres and whiskers that strengthen ceramics and enable scratch and wear resistant coatings. Applications for SiC include scratch resistant cookware, corrosion barriers for oil and gas pipelines and cutting tools, for example, jet engine turbine blades from solid billets. Co. has developed proprietary graphene-based inks and coatings for the print and biomedical sensor markets, as well as enhanced resins for the pre-preg carbon fibre market.

Koovs

Koovs is an online western fashion destination in India. Co. is engaged in supplying fashion garments and accessories for distribution through the KOOVS.COM website including international fashion brands, British high street brands and Co. own-label product designed by a team based in London.

Morses Club

Morses Club is a United Kingdom consumer finance business in the Home Collected Credit market. Co.'s customers are served by self-employed agents, as well as employees based across 98 branches. Co. operates through a series of local branches based all over the UK. Co.'s field management team operate from these branches, working with its network of self-employed agents.

Murgitroyd Group PLC

Murgitroyd Group provides a range of Intellectual Property advisory services through its trading subsidiaries Murgitroyd & Company Limited, Murgitroyd SARL and Murgitroyd LLC, European Patent and Trade Mark Attorneys.

Non-Standard Finance

Non-Standard Finance is a holding company. Through its subsidiaries, Co. is engaged in the provision and servicing of secured and unsecured personal instalment loans.

Oxford BioMedica PLC

Oxford BioMedica is a producer of gene and cell therapy in lentiviral vector and cell therapy research, development and production. Gene and cell therapy is the treatment of disease by the delivery of therapeutic deoxyribonucleic acid into a patient's cells. This can be achieved either in vivo (referred to as gene therapy) or ex vivo (referred to as cell therapy), the latter being where patients' cells are genetically modified cells outside the body before being re-infused. Co.'s products include: OXB-102, which targets Parkinson's disease; OXB-202, which targets corneal graft rejection; and OXB-302 (CAR-T 5T4), which targets targets a range of cancers.

R.E.A. Holdings PLC

R.E.A. Holdings is principally engaged in the cultivation of oil palms in the province of East Kalimantan in Indonesia and in the production and sale of crude palm oil and crude palm kernel oil. Ancillary to these activities, Co. generates renewable energy from its methane capture plants to provide power for its own operations and also for sale to local villages via the Indonesian state electricity company. As of Dec 31 2016, Co. held interests in respect of two stone deposits and two coal mining concessions, all of which were located in East Kalimantan in Indonesia.

Surface Transforms PLC

Surface Transforms is a developer and manufacturer of carbon ceramic products for the brakes market. Co. is engaged in the design, manufacture and sell carbon fiber components. Co.'s products in the automotive industry are lightweight, durable and refined, providing heat dissipation and material strength. In the aerospace industry, Co.'s products provideweight reduction, improved brake performance and wear life. Co's research activities are concentrated on the ongoing identification of new products and applications for carbon fibre reinforced ceramic friction and non-friction materials.

Tissue Regenix Group

Tissue Regenix Group is a medical technology company. Co. is engaged in the development of regenerative products to create replacement native tissue using biological (human and animal) materials. With its platform technology dCELL®, Co. is focusing on the treatment of patients with wound care, orthopaedic and cardiac applications. The dCELL® technology allows Co. to process both human and animal tissues, removing DNA and cellular material but leaving intact an acellular matrix within which the patient's own cells can repopulate and regenerate, creating like for like tissue.

Titon Holdings PLC

Titon Holdings is engaged in the design, manufacture, marketing and sales, plus its associate's activity in real estate development: trickle vents and hardware products for the window and door fabricator markets in the U.K., Europe and the U.S.; mechanical ventilation products for the new build residential markets in the U.K. and Europe; and natural ventilation products for the new build residential market in South Korea. The first two activities are carried out by Co.'s subsidiaries, Titon Hardware Limited and Titon Inc. (in the U.S.). The third activity is carried out by Co.'s subsidiary, Titon Korea Co. Ltd. and Browntech Sales Co. Limited, Co.'s associate company.

ValiRx

Valirx is a biopharmaceutical company engaged in developing technologies and products in oncology therapeutics and diagnostics. Co. operates in two divisions which consist of ValiPharma, the therapeutics division with two embedded technologies primarily directed at the treatment of cancers; and ValiSeek, a joint venture between Co. and Tangent Reprofiling Ltd to develop VAL401 in lung cancer and potentially other indications.

Warpaint London

Warpaint London is focused on color cosmetics, which it separates into four categories: Face make-up: foundation, blushers, illuminators, and powders and loose and pressed powders; Eye make-up: eye shadows, eyeliners, eyebrow pencils and mascara; Lip make-up: lipstick and glosses, lip pencils, lip plumpers and palettes; and Nail make-up: nail varnishes, polishes, hardeners and strengtheners, base and top coat. Co. consists of two separate divisions, own-brand, which its W7 brand sells to street retailers, beauty shops, and online sales channel; and close-out, which representing its business, buys and sells close-out and excess stock of branded cosmetics and fragrances from around the world.

Provider
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Analysts
Brian Moretta

Dorothea Hill

Jason Streets

Mark Thomas

Martin Hall

Mike Foster

Nigel Hawkins

Paul Singer

Stephen Clapham

Tony Williams

Yingheng Chen

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