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Medserv — Momentum to build in H2

MedservRegis (MSE: MDS)

Last close As at 20/12/2024

0.65

— 0.00 (0.00%)

Market capitalisation

35m

More on this equity

Research: Industrials

Medserv — Momentum to build in H2

While H117 results reflect a slower than expected performance in each of the key divisions, Medserv looks set to deliver sequential improvement in H2. We have lowered FY17 estimates; however, our FY18 estimates remain largely unchanged as momentum from the increased drilling programme from Q417 should continue. The longer-term investment case is underpinned by established contracts for drilling and OCTG services together with workover programmes. In addition, the company is well placed to secure business in new geographic markets to support growth.

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Written by

Industrials

Medserv

Momentum to build in H2

Interim results

Industrial support services

24 August 2017

Price

€1.34

Market cap

€72m

US$1.18/€1

Net debt (€m) at 30 June 2017

47.2

Shares in issue

53.7m

Free float

35%

Code

MDS

Primary exchange

Malta SE

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

4.7

11.3

(19.1)

Rel (local)

6.1

9.9

(23.0)

52-week high/low

€1.7

€1.2

Business description

Medserv is a Malta-based provider of integrated offshore logistics and services in support of drilling operations in the Mediterranean. The acquisition of the METS companies in February 2016 diversified the company into onshore steel tube stockholding and servicing for countries in the Middle East.

Next events

Q3 trading update

November 2017

Analysts

Annabel Hewson

+44 (0)20 3077 5700

Jamie Aitkenhead

+44 (0)20 3077 5700

Medserv is a research client of Edison Investment Research Limited

While H117 results reflect a slower than expected performance in each of the key divisions, Medserv looks set to deliver sequential improvement in H2. We have lowered FY17 estimates; however, our FY18 estimates remain largely unchanged as momentum from the increased drilling programme from Q417 should continue. The longer-term investment case is underpinned by established contracts for drilling and OCTG services together with workover programmes. In addition, the company is well placed to secure business in new geographic markets to support growth.

Year end

Revenue (€m)

PBT*
(€m)

EPS*
(c)

DPS
(c)

P/E
(x)

Yield
(%)

12/15

42.7

6.1

9.7

4.3

13.8

3.2

12/16

32.8

(1.3)

(2.1)

0.0

N/A

0.0

12/17e

30.3

(2.3)

(5.3)

0.0

N/A

0.0

12/18e

42.3

5.8

9.5

3.8

14.1

2.8

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles and retention contracts, and exceptional items.

H117 results

Medserv reported H117 revenues of €13.6m, down from €17.3m in H116, with reported EBITDA of €1.6m, down from €3.6m. Divisionally, Integrated Logistic Support Services (ILSS) reported revenues of €5.8m, with a lower than expected contribution from Malta. The Oil Country Tubular Goods (OCTG) operations of METS reported H117 revenues of €7.5m, up from €6.5m in H116. With a lower H1 contribution, the company has reduced group FY17 revenue guidance from €35.9m to €30.0m. However, H217 could see a sequential improvement as drilling programme support increases.

Momentum building into 2018

The key to growth in H217 and ongoing momentum into 2018 is already contractually locked in. In ILSS, drilling is set to commence in Q417 for Cyprus, supported by Medserv’s two facilities in Limassol and Larnaca. In OCTG, while activity in Iraq was lower than expected in H1, activity levels have already picked up strongly in Q3 as workover demand grows following a resumption of production at the main fields. While Medserv continues to deliver in existing markets, the group is pursuing opportunities in new geographies to expand its global presence and support longer-term growth.

Valuation: Recovery potential not yet rated

We adjust our FY17 estimates for the lower H117 contribution and FY guidance. However, our FY18 estimates remain largely unchanged as the expected Q417 momentum runs into next year. As new territories are brought on stream the potential for the substantial revenue growth for the 2018-2020 period discussed in the interim statement should become more tangible. In turn, this should provide support for our DCF-based fair value which currently stands at €1.74 per share, from €1.83 before.

Interim results and outlook

Exhibit 1: Medserv H117 financial summary

€m

H116

H117

% change

Integrated Logistic Support Services (ILSS)

10.59

5.76

-45.6%

Oil Country Tubular Goods (OCTG)

6.45

7.55

17.2%

Photovoltaic farm

0.27

0.31

16.8%

Group revenues

17.30

13.62

-21.3%

Gross profit (adjusted)

3.38

1.17

-65.4%

Gross margin (%)

19.6%

8.6%

EBITDA

3.55

1.60

-54.8%

Depreciation

(1.70)

(1.81)

6.5%

Operating profit (adjusted)

1.85

(0.21)

N/A

Amortisation

(0.56)

(0.83)

Operating profit (reported)

1.28

(1.04)

Exceptional

(0.20)

(0.36)

Finance costs

(0.81)

(1.50)

Profit before tax (adjusted)

1.04

(1.70)

N/A

Profit before tax (reported)

0.28

(2.90)

Net income (ongoing adjusted)

0.98

(2.25)

N/A

Net income (ongoing reported)

0.22

(3.45)

N/A

Net debt

46.95

47.22

0.6%

Source: Company reports

Integrated Logistic Support Services (ILSS)

ILSS reported H117 revenues of €5.8m, down from €10.6m in H116. The division missed H117 expectations largely due to the impact on the Malta base of the temporary cessation of drilling activity offshore Libya from March. This should resume before the end of August and hence should drive a sequential uplift in H217. However, the key growth driver for the division is Cyprus, where drilling is set to commence in Q417. As a reminder, Medserv will support ENI’s drilling operations from its new Limassol base (full operation) and its storage facility in Larnaca. Total SA commenced a programme in July (not using Medserv), and this is regarded as a precursor to a start up by ENI in the concessions it won in the December 2016 licencing round.

Looking forward, Medserv is engaged in advanced negotiations to locate support bases in new geographical regions that should support longer-term growth. The company has indicated that contracts here would be focused on development and production rather than exploration. The most advanced of these appears to be Egypt with an MOU signed during the current year. Both ENI and the Egyptian authorities regard the Zohr gas field as a priority for development. The proximity of the field to the Cyprus blocks is a key driver of the renewed drilling activity there. In addition, the expectation that rigs will be prioritised to these programmes has led to the further deferral of the wildcat drilling programme offshore Portugal where the licence runs to early 2019.Therefore, Portugal is expected to deliver relatively flat performance in the short term.

We have revised our estimates for the division, lowering FY17 revenue from €17.7m to €13.6m.

Oil Country Tubular Goods (OCTG)

OCTG reported H117 revenues of €7.5m up from €6.5m in H116. The division’s results were somewhat below expectations on a lower than forecast contribution from Iraq. However, activity in Iraq has already seen a strong pick-up in activity in the Q3 and business here should drive revenue and EBITDA growth for the division as inspection and machine shop demand grows. Meanwhile, the contribution from Oman is expected to remain stable while the UAE should see a small improvement; hence we have made modest adjustments to our estimates for this division.

Estimates revision, valuation implications

We have revised our estimates for the division, lowering FY17 revenue from €17.5m to €16.7m, which reflects a lower contribution from Iraq and a slightly less favourable $/€ profit translation assumption. The revision to revenues substantially drops through to our adjusted EBITDA assumption due to the high level of fixed cost in the operations. Our forecast is reduced by 39% to €4.3m in FY17. However, as activity increases the operational leverage should allow a rapid recovery in profitability. The increase in drilling programmes and workover projects in H217 will provide operational momentum into FY18. In addition, as the company secures business in new geographic markets this will support growth and build visibility for the medium term.

Exhibit 2: Medserv estimates revisions

Year to December (€m)

FY17e

FY18e

 

Old

New

% change

Old

New

% change

Revenues

35.2

30.3

-13.8%

42.3

42.3

0.0%

 

 

 

 

 

 

EBITDA

7.0

4.3

-38.8%

12.4

12.5

1.2%

Depreciation

(3.6)

(3.6)

-0.2%

(3.7)

(3.7)

0.7%

Operating profit (adjusted)

3.4

0.7

-80.3%

8.7

8.8

1.5%

Exceptionals (incl. PPA Amortisation)

(2.5)

(2.5)

 

(1.7)

(1.7)

 

Operating profit (reported)

0.9

(1.9)

N/A

7.0

7.1

1.8%

 

 

 

 

 

 

Profit Before Tax (adjusted)

0.5

(2.3)

N/A

5.9

5.8

0.6%

 

 

 

 

 

 

EPS - underlying continuing (c)

0.6

(5.3)

N/A

9.6

9.5

0.7%

DPS (c)

0.0

0.0

3.8

3.8

Net debt

45.1

46.8

44.4

48.0

Source: Edison Investment Research

We continue to employ a capped DCF approach to valuation, which encompasses a six-year explicit forecast projection in our model with a zero growth scenario anticipated in our terminal value calculation. We have used a cost of equity of 11%, which gives us a calculated WACC of 8.2%. On our reduced FY17 estimates, our core assumptions return a DCF value of €1.74 per share, down from €1.83 per share.


Exhibit 3: Financial summary

€m

2014

2015

2016

2017e

2018e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

32.4

42.7

32.8

30.3

42.3

Cost of Sales

(23.2)

(29.9)

(22.9)

(21.0)

(25.8)

Gross Profit

9.2

12.8

9.9

9.3

16.5

EBITDA

 

 

5.9

10.3

5.0

4.3

12.5

Operating Profit (before amort. and except.)

 

 

4.2

7.6

1.6

0.7

8.8

Exceptionals (incl. PPA Amortisation)

(0.0)

(0.1)

(1.0)

(2.5)

(1.7)

Other

(0.1)

(0.2)

0.0

0.0

0.0

Operating Profit

4.1

7.3

0.5

(1.9)

7.1

Net Interest

(1.1)

(1.5)

(2.8)

(2.9)

(2.9)

Profit Before Tax (norm)

 

 

3.1

6.1

(1.3)

(2.3)

5.8

Profit Before Tax (FRS 3)

 

 

3.0

5.8

(2.3)

(4.8)

4.1

Tax

(0.9)

(1.3)

5.4

(1.0)

(0.4)

Profit After Tax (norm)

2.3

4.8

(1.3)

(2.7)

5.2

Profit After Tax (FRS 3)

2.2

4.5

3.1

(5.8)

3.7

Average Number of Shares Outstanding (m)

46.1

46.1

52.8

53.7

53.7

EPS - normalised (c)

 

 

5.0

9.7

(2.1)

(5.3)

9.5

EPS - normalised and fully diluted (c)

 

 

5.0

9.7

(2.1)

(5.3)

9.5

EPS - (IFRS) (c)

 

 

4.2

8.9

5.9

(10.9)

6.7

Dividend per share (c)

4.3

4.3

0.0

0.0

3.8

Gross Margin (%)

28.4

30.1

30.2

30.8

39.0

EBITDA Margin (%)

18.1

24.1

15.3

14.2

29.6

Operating Margin (before GW and except.) (%)

13.0

17.9

4.8

2.2

20.8

BALANCE SHEET

Fixed Assets

 

 

23.3

24.0

51.4

48.3

45.9

Intangible Assets

0.0

0.0

17.2

15.6

14.3

Tangible Assets

23.3

24.0

34.3

32.7

31.7

Investments

0.0

0.0

0.0

0.0

0.0

Current Assets

 

 

57.5

57.1

70.0

66.8

72.8

Stocks

0.0

0.0

1.3

1.2

1.7

Debtors

13.4

12.2

12.8

11.8

16.5

Cash

1.1

1.0

6.2

7.2

6.2

Other

43.0

43.9

49.7

46.5

48.4

Current Liabilities

 

 

(15.3)

(13.3)

(8.3)

(6.5)

(9.0)

Creditors

(10.4)

(9.5)

(7.2)

(6.5)

(9.0)

Short term borrowings

(4.9)

(3.8)

(1.1)

0.0

0.0

Long Term Liabilities

 

 

(56.1)

(56.7)

(86.8)

(87.9)

(87.4)

Long term borrowings

(21.1)

(22.4)

(52.1)

(54.0)

(54.2)

Other long term liabilities

(35.0)

(34.3)

(34.7)

(33.9)

(33.1)

Net Assets

 

 

9.5

11.1

26.4

20.7

22.3

CASH FLOW

Operating Cash Flow

 

 

(1.7)

10.4

6.0

5.7

5.0

Net Interest

(1.1)

(1.5)

(2.8)

(2.9)

(2.9)

Tax

(0.9)

(1.3)

(0.0)

0.2

(0.6)

Capex

(13.4)

(3.8)

(1.7)

(2.1)

(2.7)

Acquisitions/disposals

0.0

(2.6)

(34.5)

0.0

0.0

Financing

(0.2)

0.5

11.2

0.0

0.0

Dividends

(0.7)

(2.0)

0.0

0.0

0.0

Net Cash Flow

(18.0)

(0.3)

(21.8)

0.2

(1.3)

Opening net debt/(cash)

 

 

6.9

24.9

25.2

47.0

46.8

HP finance leases initiated

0.0

0.0

0.0

0.0

0.0

Other

0.0

(0.0)

0.0

0.0

0.0

Closing net debt/(cash)

 

 

24.9

25.2

47.0

46.8

48.0

Source: Medserv accounts, Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison and is not regulated by the Australian Securities and Investment Commission. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2017 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Medserv and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Aus and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2017. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney+61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney+61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison and is not regulated by the Australian Securities and Investment Commission. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2017 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Medserv and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Aus and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2017. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney+61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney+61 (0)2 8249 8342

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Carr’s Group — At an inflexion point
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Solid State — Interim results

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Research: Metals & Mining

Pan African Resources — Disposals hone investment case

Pan African (PAF) has made a number of announcements since Edison’s last note in May, including an operational update, the conclusion of the Uitkomst disposal and the disposal of Phoenix Platinum to Sylvania for a total cash consideration of ZAR89m (£5.2m, US$6.8m or US$10.80/oz of Phoenix resource), which is actually accretive relative to PAF’s current group-wide resource multiple of US$8.40/oz. Most recently, on 18 August, it released its customary JSE listing requirement paragraph 3.4b announcement indicating annual EPS in the range 1.07-1.22p for FY17.

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