TPI provides its latest research note on Falanx Group Ltd (FLX.L).

Falanx has provided investors with a trading update for its year ended 31 March 2020, together with a Q1 2020/21 update.

Broadly in line with expectations set out in its pre-close statement released on 31 March 2020, the Group expects to report revenues for the period of c.£5.8m (2019: £5.2m).

Based on this, the completion of a substantial cost reduction exercise including successful transfer of many of Group staff to remote working, the first quarter of the new financial year saw overall unaudited EBITDA losses reduce by c.60% despite coinciding with the peak of the UK’s COVID-19 Pandemic.

Retaining a strong balance sheet and with the current year presently sustaining a c.5% year-on-year revenue improvement, TPI considers Falanx has potential to deliver a positive operating profit for 2020/21.

The Board will possibly provide more detail regarding such expectations with the anticipated release of its 2019/20 results which is now scheduled for September.

Read More FalanxGroupplc_ResearchUpdate_5August2020__FINAL_BG.pdf

We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to Integumen plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination.

The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient.

Copyright © 2020 Turner Pope Investments (TPI) Limited, all rights reserved.

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