Education Development International (EDI, 104.5p, £58.90m) Trading update for the year ending September 2010 confirms results will be in-line with expectations (£9.9m PBT with 12.6p EPS). The group is sensibly cautious regarding prospects for growth in the UK ahead of austerity measures though overseas growth continues apace. We maintain our BUY recommendation with a 121p price target  

Global Brands Sa (LON:GBR) (GBR, 2.375p, £2.63m) Sales increased to CHF6.64m (CHF5.87m) with gross profits CHF4.82m (CHF4.52m), margins of 72.6% (77%), staff costs of CHF3.96m (CHF3.36m) partially offset by lower admin charges of CHF1.96m (CHF2.04m) leading to a modest increase in EBITDA losses to CHF1.10m (CHF0.88m) and pre-tax losses up to CHF1.34m (losses CHF1.16m). The group ended the period with net cash of CHF0.56m (CHF0.82m at the yearend) post a net CFH 0.58m cash raise during the period. The statement highlights a significant upturn occurring in Q2 with the fall in margins explained by the actions of the new management that included correcting an overblown pricing structure and a move to outsourced logistics. H2 is showing sales up 25.9% in July, 27.6% in August with continued strong growth in September. The group has also moved to increase its market share in Switzerland by the acquisition of Pizza Taxi brand with 4 stores in Basel, Baselland and Aargu which will convert to the Domino’s brand. In, what we see as a major positive move, the group has signed an exclusive development and franchise heads of agreement with YO! Sushi for Switzerland plus first rights of refusal for Austria. The group will need additional financing for these opportunities, including potentially the CHF0.63m cash element of the CHF0.99m total consideration for Pizza Brand. Until the funding route and potential dilution is clear we drop the recommendation to a HOLD.  

Hasgrove Plc (LON:HGV) (HGV, 51.0p, £12.15m), the pan European marketing and communications services group, reports interims to 30 June 2010. Revenues increased by 6% to £16.8m (H109: £15.9m) with l-f-l sales up 7%. Cost and operational synergies boosted adjusted operating profit up 18% to £1.7m (H109: £1.5m) and adjusted PBT up 27% to £1.6m (H109: £1.3m). An exceptional charge of £0.4m predominantly related to redundancy costs and the office move. Strong operating cash flow reduced net debt to £5.9m (FY09: £6.5m). The full benefits of…

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