AvH reported strong H1 results, with all core segments contributing positively to the group net result, and even surpassing the pre-COVID-19 high in H1 19. With a record order book for Marine Engineering & Contracting, record inflows for its Private Banking segment and a reshuffling of the real estate business following the Leasinvest and Extensa merger, the current outlook is certainly bright, confirmed by management as it anticipates a record net result (excluding capital gains) in 2021.
Companies: Ackermans & van Haaren (ACKB:EBR)Ackermans & van Haaren NV (ACKB:BRU)
AvH released FY20 results that came just a hair below our estimates, serving as proof of the resilience brought by its diversified portfolio of assets. Private Banking closed a strong year that saw its AUM climb to a record €54bn, driving a net result contribution that helped offset the pandemic-led weakness at DEME. The still sunny outlook for Private Banking and an improving scenario for dredging thanks to a record €4.5bn order backlog should support AvH’s positive tone for 2021.
The holding company’s H1 release put in evidence the benefits of its broad sector exposure, with the better than expected performance from its Private Banking segment and a timely disposal in Marine Engineering & Contracting leading to a positive group net result despite a challenging first half for many of the HoldCo’s core segments. The dividend proposal and better visibility supports AvH’s more encouraging outlook in H2.
Companies: Ackermans & van Haaren NV
Despite a challenging year for the Marine & Offshore division, the solid FY19 release for AvH was led by the other segments, as they made up the shortfall of the prior ‘growth engine’ and delivered a record net profit for the holding company. Thanks to a successful disposal in senior care, AvH benefits from a solid financial position that will allow it to carry out investments in 2020.
The muted performance in the dredging and offshore activities carries on in Q3, with 9M19 revenues from DEME (AvH’s prime growth driver last year) staying flat versus 2018. It appears that we will have to wait for a tailwind for the offshore wind business until 2021 at the earliest. Nonetheless, the successful sale of AvH’s stake in Residalya is likely to lead the company to post a record net profit result in FY19.
After a record year in 2018, AvH’s prime growth driver appears to have run out of breath. However, although the offshore wind energy business saw its revenues decline over H1 19, traditional dredging picked up the slack and an opportune disposal in senior care lifted the group’s profits to record levels. Expectations for the full year remain flattish as major investments in capacity expansion in marine & engineering are expected to arrive in 2020.
AvH’s growth pulled once again by the offshore activity. Almost all segments, except energy & resources, posted positive performances.
DEME benefits for the third quarter in a row from the growth in the offshore wind energy activity, which offsets the slowdown in the dredging. FY 18 net income is expected to be slightly lower than the €302.5m achieved in 2017.
The offshore wind energy activity is AvH’s growth driver. It is capital intensive and reduces the marine engineering business’s volatility. It may face competition though.
Will the wind-propelled Marine division in Q1 18 start to change the AvH balance?
AvH is a diversified holding company active in various fields: Marine Engineering & Contracting, Private Banking, Real Estate & Senior Care and Energy & Resources. Marine Engineering & Contracting is the holding’s main activity (83% of 2017 overall revenues).
The market for large traditional, infrastructure-type dredging works is subject to strong cyclical fluctuations on both the domestic and international markets but also offers a promising outlook in the longer run. 40% of the dred
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Companies: DX (Group) Plc
Seeing Machines has announced results for its financial year ended June 2021 and, after the 3 August 2021 trading update, there were few surprises in the numbers with the company trading ahead of expectations in terms of margins and cash. This reflects the successful focus by the management on reducing costs and conserving cash. However, with the conclusion of the recent fund raise, we expect the company to change gear to investing in the business and managing for longer term shareholder value.
Companies: Seeing Machines Limited
Friday's market sell off saw some violent downward moves in many stocks with little initial differentiation between sectors or the key drivers of businesses, creating significant share price drops in a number of higher quality or uncorrelated names. We take a look at some stocks we believe have either seen an unwarranted sell-off, have seen weakness go under the radar or where there is now a more attractive opportunity.
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Seeing Machines has announced that it has been selected as the DMS supplier for automotive programmes through Magna International worth cA$120m and a fundraise of at least US$40m at 11p.
The funds will be used to accelerate growth in the rapidly expanding DMS technology market, across all transport sectors globally. This includes the acceleration of the development of new core software and system features, acquisition of additional specialised technology, expansion of sales channels and produc
Macfarlane Group, the leading protective packaging solutions specialist, servicing clients across the UK
and now emerging into Continental Europe, has issued a trading update this morning (25 November)
covering the period since end June and the year to date. Trading has continued to be robust in a difficult
supply chain environment and the Group now expects to exceed its previous expectations for the full
year. Sales growth for the year to date has accelerated through to October at rate of +2
Companies: Macfarlane Group PLC
The oversubscribed placing to raise £25m and £2m open offer leaves Velocys well placed to move forward on its reference projects and strengthens its ability to address further demand as airlines increasingly seek out sustainable fuelling solutions. We have updated our forecasts for the raise and after a review of project timings. These show that if the company can progress its projects, it is capable of being cashflow positive in FY 24 without recourse to further funding. Our DCF based central c
Companies: Velocys plc
Powerhouse has seen early benefits from the agreement signed with HUI in October with this progress on a new project site in Bulgaria. Details have still to be agreed but we see the project as an example of further international demand for the company’s waste to hydrogen technology.
Companies: Powerhouse Energy Group PLC
While there remains considerable uncertainty over the planning and permitting of the Uskmouth power station conversion there have been a couple of recent pieces of good news for SIMEC Atlantis in our view. Inclusion of waste-to-energy in the carbon capture support model is potentially positive for Uskmouth and may increase its political attractiveness to the Welsh Government as they consider permitting. The ring fencing of CfD support for tidal steam in the next allocation round opens up the pos
Companies: SIMEC Atlantis Energy Ltd.
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Trinistar Liverpool S.a r.L announces its potential listing of a newly formed single asset company which will own the Capital Building in Liverpool on the IPSX. Upon admission the Company would become a real estate investment trust (REIT). The Capital Building occupies close to a 3.5 acre freehold site in the centre of Liverpool’s business district; the building comprises c425,000 square feet of predominantly of
Companies: ADBE ADBE SYM ARC AVCT CMCL CLIN DCTA FRAN OSI
The H1 results were a bit of a double check. First, how high hopes (battery materials) persist in a rapidly changing environment, something already communicated to the markets. The second, and a rather annoying one, was how to deal with the issues as management was not really transparent. This explains the strong miss in EBIT compared to the consensus. We were also wrong-footed as our impairment figure was far too low.
Companies: Johnson Matthey Plc
Like Taylor Maxwell before it, management's patience and persistence has landed another prized target, this one HBS NE Limited trading as HBS New Energies and UPOWA, giving Brickability a platform into the fast-growing renewables energy products market. It is Brickability's 13th acquisition in the past three years, will cost a maximum £5.5m and falls within the group's target 4-6x EV/EBITA purchase range thus enhancing earnings whilst broadening the product offering to its core housebuilder cust
Companies: Brickability Group PLC
Last week, as part of Diversified's Capital Markets Day, CEO Rusty Hutson and the Diversified senior leadership team provided investors with an in-depth overview of the Company's strategy and operations, with a specific focus on the Company's Environmental, Social and Governance (ESG) initiatives. Some of the key takeaways include US$15m of additional investment from 2022 on emission reduction activities and equipment. Mid-term plans (2023-2026) include plans to curb Scope 1 methane emissions in
Companies: FO 88E DEC EME GTC TRIN UOG WEN
The trading update confirms that TClarke is on track to meet FY21 expectations signalling a strong recovery from the pandemic-hit 2020 with revenues +47%, H2 margins back at 3%, underlying EPS +50% and net cash of c£5m in the year-end balance sheet. The highlight, in support of its target £500m turnover by 2023, is continued improvement in the order book, currently at £525m (end June £503m) including a record £320m (+25%) secured for a year out. This is not ‘being bought' but comes with a real s
Companies: TClarke plc
LTHM announced exceptional results for H1F22 ended 30 September 2021. H1F22 revenue reached £193.9m, +81.2% over H1F21 of £107m. This is notably a stellar first half driven by demand-supply imbalances in global markets that have resulted following the pandemic. Resulting PAT of £26.6m translates to EPS of £1.335 vs. £0.256 in H1F21.
Companies: James Latham Plc
Companies: DeepMatter Group Plc