Growth delivered again in FY19
The FY19 results are summarised in Exhibit 1 below. The FY18 results were modestly restated to reflect the implementation of IFRS 15. The impact was to reduce FY18 revenues by £1.3m and adjusted operating profit by £0.4m.
Exhibit 1: Cohort FY19 results summary
Year end April (£m) |
FY18 |
FY19 |
% change |
Order intake |
|
|
|
MASS |
29.1 |
97.0 |
233.3% |
SEA |
27.0 |
36.7 |
35.9% |
MCL |
12.1 |
26.0 |
114.9% |
EID |
8.4 |
18.9 |
125.0% |
Chess |
|
11.3 |
|
Total order intake |
76.6 |
189.9 |
147.9% |
Order backlog |
|
|
|
MASS |
40.9 |
98.8 |
141.6% |
SEA |
33.6 |
31.1 |
-7.4% |
MCL |
10.3 |
14.6 |
41.7% |
EID |
19.0 |
25.6 |
34.7% |
Chess |
|
20.8 |
|
Total order backlog |
103.8 |
190.9 |
83.9% |
Revenue |
|
|
|
MASS |
37.6 |
38.9 |
3.7% |
SEA |
37.3 |
38.3 |
2.7% |
MCL |
17.4 |
21.7 |
24.9% |
EID |
18.3 |
11.5 |
-37.0% |
Chess |
|
10.7 |
|
Total revenue |
110.5 |
121.2 |
9.6% |
Adjusted operating profit |
|
|
|
MASS |
7.1 |
8.2 |
14.9% |
SEA |
4.4 |
5.5 |
24.3% |
MCL |
2.1 |
2.3 |
10.1% |
EID |
4.3 |
1.4 |
-68.6% |
Chess |
|
1.7 |
|
HQ & Other |
(2.7) |
(2.8) |
4.9% |
Total adjusted operating profit |
15.2 |
16.2 |
6.2% |
Finance costs |
(0.1) |
(0.3) |
|
Adjusted PBT |
15.1 |
15.9 |
5.0% |
Tax expense (adjusted) |
(2.9) |
(2.6) |
|
Minorities |
(0.4) |
0.4 |
|
Adjusted net income |
11.8 |
13.7 |
15.7% |
|
|
|
|
Adjusted EPS |
29.1 |
33.6 |
15.5% |
DPS |
8.2 |
9.1 |
11.0% |
Net cash/(debt) |
11.3 |
(6.4) |
n.m. |
Source: Cohort reports. Note: FY19 numbers restated for IFRS 15 adoption.
The key features of the FY19 results are summarised as follows:
■
The reported closing order book of £190.9m recovered strongly from the H119 report of £108.8m and £103.8m in FY18. Order intake of £189.9m in FY19 was at a record level and included some £70m of contract renewals. All of the continuing divisions increased their intake considerably and Chess booked £11.3m of orders following its consolidation in December, and added £20.8m to the year-end backlog. Alongside the results, the company announced a further electronic warfare operational support (EWOS) export order for MASS of £4.75m.
■
Reported revenues were £121.2m (FY18: £110.5m restated). This was slightly below our estimate as EID revenues fell below expectations, partially compensated for by a better than expected performance at Chess (see Exhibit 4).
■
Reported adjusted operating profit was £16.2m (FY18: £15.2m restated), broadly in line with our estimate of £16.6m allowing for the impact of IFRS 15.
■
Reported adjusted EPS was 15.5% higher at 33.6p (FY18: 29.1p restated), both of which exclude research and development tax credits (RDEC) following an accounting change that now includes this in reported operating profit. We treat it as exceptional in both years, to align it with our previous preferred adjustment to exclude the credits from the tax line.
■
Reported DPS was 9.1p (FY18: 8.2p), an 11.0% increase, in line with the group’s progressive dividend policy and continuing the positive track record since flotation in 2006.
■
Following payment of the initial consideration for Chess Technologies of £21m (including debt acquired), Cohort ended the year with net debt of £6.4m (FY18: net cash £11.3m). However, this was much better than expected due to some favourable timing of supplier payments and debtor receipts around the year end. These effects unwound early in FY20.
Defence and security revenues accounted for 88% (FY18: 89%) of the group total in FY19. These can be split further by customer and market segment as shown in Exhibits 2 and 3, respectively.
Exhibit 2: FY19 defence and security revenue by market segment (£106.5m)
|
Exhibit 3: FY19 defence and security revenue by end customer (£106.5m)
|
|
|
|
|
Exhibit 2: FY19 defence and security revenue by market segment (£106.5m)
|
|
|
Exhibit 3: FY19 defence and security revenue by end customer (£106.5m)
|
|
|
By segment, the most significant proportional increases came in C4ISTAR, largely due to MCL. A recovery in research advice & support services at SEA was largely neutralised by a similar decline in sales of simulation and training (mainly at SEA and MASS, respectively).
End-customer changes can be summarised as a modest decline in both domestic markets, with strong improvements in security and export markets (each up £4.8m), including the inclusion of Chess.
The slight increase in the proportion of group sales to commercial markets (FY19: 12%) was due to a strong performance in SEA’s transport segment. Record deliveries of traffic and rail control and safety monitoring systems were made, helping to increase the group’s non-defence revenues by almost 20% in the year. Transport alone accounted for 7% of group sales (FY18: 4%).
Overall group revenues were split 54:46 between products and provision of services.
MASS (FY19 sales: £38.9m; 32% of group sales) continued to grow, with revenues up 4% and adjusted operating profit of £8.2m (FY18: £7.1m), a 15% increase and a 21% margin (FY18: 18.9%. growth). The strong margin performance was due to increased EWOS export work as well as completion of a support contract allowing contingencies to be released. Order intake was £97.0m, a divisional record, centred on the long-term £50m UK MOD support contract signed in H219. Although order intake and margins are expected to return to more normal levels in FY20, further profit growth is expected. The expected progress is underpinned by a backlog of £98.8m (FY18: £40.9m), of which orders deliverable in FY20 are £29.1m, representing order cover of our divisional sales estimate of c 67% (FY18: 52%).
SEA (FY19 sales £38.3m; 32% of group sales) returned to growth in FY19, and benefited from a restructuring in H119 that delivered £0.6m in H219 of a total anticipated annual cost reduction of £1.0m. Sales rose 3% and the adjusted operating margin rose 250bp to 14.3%, delivering adjusted operating profit of £5.5m, 24% higher than FY18. Margins also benefited from the absence of a loss-making contract that depressed the prior year. While UK submarine activity remains in a lull with FY19 revenues of just £4.7m (FY18: £7.3m), sales in other areas continued to increase. Transport had a strong year and there was modest growth in the research activity. FY20 is expected to see good naval order intake for export and domestic markets for products including communications systems and torpedo launch systems, as navies refresh and recapitalise their fleets. While the order of backlog of £31.1m included deliverable sales of just £12.3m for FY20 compared to £15.7m at the start of FY19, this had increased to £16.6m at the end of June, providing cover of our estimated FY20 sales of c 43%. Management expects a flat performance from the division in FY20.
EID (FY19 sales £11.5m; 9% of group sales) had a disappointing year. An export order from the Middle East for armoured vehicle intercoms had been expected to be received early enough to provide a significant contribution in Q419, but failed to materialise in time. The result was inadequate overhead coverage, which saw full-year margins drop to 11.3% (FY18: 23.5%) as revenues fell almost 40%. It was eventually signed and will boost current year performance. The £7m decline in revenues was split between the tactical and naval divisions, of which the tactical decline largely related to the deferred order. The naval division saw a fall in radio deliveries to the Portuguese Navy, as well as some programme deferral for the M-Class frigate programme for Portugal, Belgium and Holland. The division is entering a period where management expects lower levels of naval support work, whereas lower-margin intercom and radio system deliveries are expected to increase, meaning divisional margins return to a more normal 18–20% range. The order cover for our expected recovery in sales in FY20 is a healthy 85%, with further export and domestic opportunities in prospect.
MCL (FY19 sales £21.7m; 18% of group sales) delivered a strong performance, with a 25% increase in revenues largely due to initial deliveries of tactical systems to the UK submarine fleet, with higher bought-in content and lower margins. Combined with the full impact from some investment in overheads during FY18, adjusted operating profit rose by 10%. MCL also had a strong year of order intake, booking £26.0m of new and repeat business, a book to bill ratio of 1.2x and generating a year end backlog of £14.6m (FY18: £10.3m). Of this, £7.7m is for delivery in FY20, providing sales cover of 35%, but visibility is normally only three to six months. Management expects modest growth in the current year
Chess Technologies (FY19 £10.7m; 9% of group sales) made its initial circa five-month contribution to the group in H219. Chess was acquired in December 2018 and provides specialist products and technologies in the areas of electro-optics, tracking and fire control to customers around the world. It performed better than had been anticipated in the period, generating an adjusted operating profit contribution of £1.7m on sales of £10.7m at a margin of 15.8%. The company benefited in the period from deployment of its counter unmanned aerial vehicle (C-UAV) technology at two UK airports due to a high-profile drone incursion. We assume this would have been very high-margin work due to its urgency. We would expect margins to moderate to low to mid-teens in the coming years. Chess has strong positions and order prospects on a range of naval and land programmes with significant customers. Of its £20.8m order backlog at the start of the year, £15.0m is deliverable in FY20, providing order cover of 68% for our divisional sales estimate of £22.0m for FY20.
Clearly, the political environment is in turmoil in the UK, and remains focused on Brexit. Despite this and the continuing constraints in UK defence budgets, the external climate suggests to us that increased spending is likely to be sought. As well as its more stable long-term programmes, Cohort appears to be well positioned with its portfolio of activities to take advantage of other likely areas of increased resource, such as maritime security and anti-submarine warfare (ASW), counter UAS (unmanned air systems = drones) and cybersecurity. There are also good export prospects in these areas as defence and counterterrorism spend increases round the globe, augmented by the addition of the more export-oriented activities of Chess. In Portugal, defence spending is on the increase, which should help EID to recover as deferred and new export business is won and executed.
Overall, management states that order cover for FY20 was 55% of consensus sales of £146.7m at the start of the year, which returns it to the more normal 55–65% range from which it slipped in FY18. Our estimate is marginally below this. While SEA’s contribution is expected to remain broadly flat, EID should bounce back strongly, MCL is expected by management to grow modestly, MASS should continue its growth and Chess looks set to make a strong full-year contribution.
Earnings revisions and FY21 estimates
To reflect the updated trading prospects of the divisions, we have revised our estimates for FY20 as follows:
Exhibit 4: Cohort earnings revisions
Year to April (£m) |
2019e |
2019a |
|
2020e |
2021e |
Prior |
Actual |
% change |
Prior |
New |
% change |
New |
MASS |
39.8 |
38.9 |
-2.2% |
43.4 |
43.4 |
0.0% |
46.5 |
SEA |
38.2 |
38.3 |
0.4% |
38.9 |
38.5 |
-1.0% |
40.4 |
MCL |
22.0 |
21.7 |
-1.2% |
20.9 |
22.1 |
6.0% |
23.3 |
EID |
18.0 |
11.5 |
-35.9% |
26.6 |
19.6 |
-26.4% |
20.2 |
Chess |
8.0 |
10.7 |
|
21.0 |
22.0 |
4.8% |
23.5 |
Total group |
125.9 |
121.2 |
-3.8% |
150.8 |
145.7 |
-3.4% |
153.9 |
|
|
|
|
|
|
|
|
EBITDA |
17.8 |
17.3 |
-3.0% |
21.1 |
21.0 |
-0.3% |
22.3 |
|
|
|
|
|
|
|
|
MASS |
8.0 |
8.2 |
2.1% |
8.0 |
8.5 |
6.0% |
9.1 |
SEA |
5.2 |
5.5 |
5.8% |
5.4 |
5.4 |
-1.0% |
5.6 |
MCL |
2.3 |
2.3 |
-1.2% |
2.0 |
2.1 |
6.0% |
2.2 |
EID |
3.0 |
1.4 |
-54.6% |
4.6 |
3.5 |
-23.0% |
3.6 |
Chess |
1.0 |
1.7 |
|
2.6 |
3.2 |
|
3.3 |
HQ Other and intersegment |
(2.9) |
(2.8) |
-2.6% |
(3.0) |
(3.0) |
0.0% |
(3.0) |
Adjusted operating profit |
16.6 |
16.2 |
-2.6% |
19.6 |
19.7 |
0.3% |
20.8 |
|
|
|
|
|
|
|
|
Adjusted PBT |
16.3 |
15.9 |
-2.3% |
18.9 |
18.6 |
-1.8% |
19.9 |
|
|
|
|
|
|
|
|
EPS - adjusted (p) |
32.3 |
33.6 |
4.0% |
36.1 |
35.7 |
-0.9% |
39.2 |
DPS (p) |
9.2 |
9.1 |
-1.1% |
10.1 |
10.1 |
-1.0% |
11.1 |
Net cash/(debt) |
(16.0) |
(6.4) |
-59.8% |
(6.5) |
(6.8) |
4.8% |
5.0 |
Source: Edison Investment Research
It can be seen that the overall impact is modest, with a less than 1% reduction in EPS expectations for FY20e. In addition, our newly introduced FY21 estimate shows good growth of around 10% in adjusted EPS, and a return to a net cash position as the company continues to execute its increased order backlog.
Exhibit 5: Financial summary
|
|
£m |
2018* |
2019 |
2020e |
2021e |
Year end 30 April |
|
|
IFRS |
IFRS |
IFRS |
IFRS |
PROFIT & LOSS |
|
|
|
|
|
|
Revenue |
|
|
110.5 |
121.2 |
145.7 |
153.9 |
Cost of Sales |
|
|
(70.9) |
(78.1) |
(93.9) |
(99.2) |
Gross Profit |
|
|
39.7 |
43.0 |
51.7 |
54.7 |
EBITDA |
|
|
16.3 |
17.3 |
21.0 |
22.3 |
Operating Profit (before amort. and except.) |
15.2 |
16.2 |
19.7 |
20.8 |
Intangible Amortisation |
|
|
(5.3) |
(9.5) |
(7.3) |
(7.2) |
Exceptionals |
|
|
0.3 |
(0.7) |
0.0 |
0.0 |
Other |
|
|
0.0 |
0.0 |
0.0 |
0.0 |
Operating Profit |
|
|
10.3 |
5.9 |
12.4 |
13.6 |
Net Interest |
|
|
(0.1) |
(0.3) |
(1.1) |
(0.9) |
Profit Before Tax (norm) |
|
|
15.1 |
15.9 |
18.6 |
19.9 |
Profit Before Tax (FRS 3) |
|
|
10.2 |
5.7 |
11.3 |
12.7 |
Tax |
|
|
(2.1) |
(0.6) |
(1.8) |
(2.5) |
Profit After Tax (norm) |
|
|
12.2 |
13.3 |
15.5 |
16.6 |
Profit After Tax (FRS 3) |
|
|
8.1 |
5.1 |
9.5 |
10.2 |
|
|
|
|
|
|
|
Average Number of Shares Outstanding (m) |
|
40.7 |
40.7 |
40.8 |
40.8 |
EPS - fully diluted (p) |
|
|
28.7 |
33.4 |
35.5 |
39.0 |
EPS - normalised (p) |
|
|
29.1 |
33.6 |
35.7 |
39.2 |
EPS - (IFRS) (p) |
|
|
19.0 |
13.4 |
21.2 |
23.6 |
Dividend per share (p) |
|
|
8.2 |
9.1 |
10.1 |
11.1 |
|
|
|
|
|
|
|
Gross Margin (%) |
|
|
35.9 |
35.5 |
35.5 |
35.5 |
EBITDA Margin (%) |
|
|
14.8 |
14.3 |
14.4 |
14.5 |
Operating Margin (before GW and except.) (%) |
|
13.8 |
13.3 |
13.5 |
13.5 |
|
|
|
|
|
|
|
BALANCE SHEET |
|
|
|
|
|
|
Fixed Assets |
|
|
54.9 |
72.9 |
65.7 |
58.6 |
Intangible Assets |
|
|
45.3 |
61.9 |
54.6 |
47.4 |
Tangible Assets |
|
|
9.6 |
11.0 |
11.0 |
11.1 |
Investments |
|
|
0.0 |
0.0 |
0.0 |
0.0 |
Current Assets |
|
|
61.5 |
75.6 |
87.0 |
91.5 |
Stocks |
|
|
5.9 |
13.5 |
16.2 |
16.6 |
Debtors |
|
|
34.7 |
43.0 |
51.7 |
50.8 |
Cash |
|
|
20.5 |
18.8 |
18.8 |
23.8 |
Other |
|
|
0.5 |
0.4 |
0.4 |
0.4 |
Current Liabilities |
|
|
(39.6) |
(36.2) |
(38.6) |
(40.6) |
Creditors |
|
|
(30.4) |
(36.1) |
(38.6) |
(40.6) |
Short term borrowings |
|
|
(9.2) |
(0.1) |
0.0 |
0.0 |
Long Term Liabilities |
|
|
(1.9) |
(35.3) |
(31.7) |
(21.5) |
Long term borrowings |
|
|
0.0 |
(25.1) |
(25.6) |
(18.8) |
Other long term liabilities |
|
|
(1.9) |
(10.1) |
(6.1) |
(2.6) |
Net Assets |
|
|
75.0 |
77.0 |
82.3 |
88.0 |
|
|
|
|
|
|
|
CASH FLOW |
|
|
|
|
|
|
Operating Cash Flow |
|
|
16.2 |
11.5 |
9.1 |
27.3 |
Net Interest |
|
|
(0.1) |
(0.3) |
(1.1) |
(0.9) |
Tax |
|
|
(2.9) |
(2.6) |
(3.1) |
(3.3) |
Capex |
|
|
(0.7) |
(2.1) |
(1.5) |
(1.5) |
Acquisitions/disposals |
|
|
(6.0) |
(21.0) |
0.0 |
(5.5) |
Financing |
|
|
(0.8) |
0.1 |
0.0 |
0.0 |
Dividends |
|
|
(3.0) |
(3.5) |
(3.8) |
(4.3) |
Other |
|
|
0.0 |
0.0 |
0.0 |
0.0 |
Net Cash Flow |
|
|
2.6 |
(17.8) |
(0.4) |
11.7 |
Opening net debt/(cash) |
|
|
(8.5) |
(11.3) |
6.4 |
6.8 |
HP finance leases initiated |
|
|
0.0 |
0.0 |
0.0 |
0.0 |
Other |
|
|
0.2 |
0.0 |
0.0 |
0.0 |
Closing net debt/(cash) |
|
|
(11.3) |
6.4 |
6.8 |
(5.0) |
Source: Company reports, Edison Investment Research estimates *FY18 restated for adoption of IFRS15
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United States The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison 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. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. |
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 1,185 Avenue of the Americas 3rd Floor, New York, NY 10036 United States of America |
Sydney +61 (0)2 8249 8342 Level 4, 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 1,185 Avenue of the Americas 3rd Floor, New York, NY 10036 United States of America |
Sydney +61 (0)2 8249 8342 Level 4, Office 1205 95 Pitt Street, Sydney NSW 2000, Australia |
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General disclaimer and copyright This report has been commissioned by Cohort and prepared and issued by Edison, in consideration of a fee payable by Cohort. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services. Accuracy of content: 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 and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. 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. Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note. No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, 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 securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors. Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. 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, subject to Edison's policies on personal dealing and conflicts of interest. Copyright: Copyright 2019 Edison Investment Research Limited (Edison). All rights reserved FTSE International Limited (“FTSE”) © FTSE 2019. “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.
Australia Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument. New Zealand 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. 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 (i.e. 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.
United Kingdom This document is prepared and provided by Edison 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. This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document. This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.
United States The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison 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. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. |
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 1,185 Avenue of the Americas 3rd Floor, New York, NY 10036 United States of America |
Sydney +61 (0)2 8249 8342 Level 4, 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 1,185 Avenue of the Americas 3rd Floor, New York, NY 10036 United States of America |
Sydney +61 (0)2 8249 8342 Level 4, Office 1205 95 Pitt Street, Sydney NSW 2000, Australia |
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