Companies: GHH SAV AGL SAVE
Interims were in line with expectations, with most areas showing decent recovery over recent months and existing underlying market trends continuing, although noting currency headwinds. We raise our FY21 EPS forecasts by 4.4% and by 7.7% in FY22, thus prompting us to increase our price target from 1355p to 1450p, maintaining existing target multiples. The shares premium rating is well-deserved and the recovery in trading momentum is assisted by restructuring benefits.
Companies: Gooch & Housego PLC
Companies: GHH IGP IOM UNG ARB
The group’s half-year trading update points to trading in line with expectations, with evidence of trading impetus improving across most markets. The various industrial laser markets are now more clearly in recovery mode driven by Asia, with the US and European markets now also gaining momentum. Additional A&D contracts and robust medical diagnostics demand have also been positive. Some logistical and remaining COVID-19-related stickiness in the supply chain has been seen but is expected to impr
Parsley Box, the direct to consumer provider of ready meals to the 60+ demographic, recently announced its AIM IPO plans. Parsley Box provides ready meals, which are not required to be stored in a fridge or freezer, have a shelf life of up to six months and are cooked in minutes. The company reported revenue of £24.4m for the financial year ended 31 December 2020 (unaudited). Deal details TBC and admission is expected to occur late March/ early April 2021. Caerus Mineral Resources, a London base
Companies: HUM IDOX BEM GHH PYC GTC SYM BEG SENS
Companies: BOTB GHH PHD KRM SAVE
The group’s AGM trading update, covering the first four months of FY21, shows continued improvement in trading, in line with expectations. Industrial lasers is seeing recovery broaden, with high levels of demand continuing for fibre optics and high-reliability fibre couplers. A&D remains strong with further orders, and Lifesciences has continued to see good growth, with recovery now being seen in medical lasers. It has announced the streamlining of two further sites to gain further efficiencies.
AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC. Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world's largest market for brands and retailers, intends to IP
Companies: IRR MKA GHH LEK POW KRM DRUM ODX FA/ ALBA
Companies: GHH IOM BBB
Full-year results were better than our forecasts, with PBT £0.8m better than expected, albeit showing a 35% decline following the effects of COVID shutdowns etc. Cash generation was also better than expected, resulting in net bank debt of £6.5m, a £7.8m reduction. No change to trading forecasts, with lower net debt. With maintained earnings, we also maintain our 1,100p price target based on a 32.3x P/E for FY21E, with the high P/E offering limited scope for further expansion, though today’s resu
Gooch & Housego (GHH): Corp
The group’s brief year-end trading update was encouraging, with trading for the year slightly ahead of expectations. The order book overall is slightly ahead on constant currency. Cash collection appears to have been better in H2 than expected. In the current year, we look for some operational drop through from higher revenue in A&D, Lifesciences and Telecoms, plus some operational streamlining gains. No change to FY20 PBT forecasts and we reintroduce FY21 forecasts, with a price target of 1100p
Arcontech (ARC): Corp Solid FY20 results give a strong foundation for growth | Avacta (AVCT): Corp SARS-CoV-2 antigen test – manufacturing expansion | Gooch & Housego (GHH): Corp Trading update – H2 trading improves as expected
Companies: Arcontech Group PLC (ARC:LON)Gooch & Housego PLC (GHH:LON)
Circassia Group (CIR): Corp | Gooch & Housego (GHH): Corp | Intercede (IGP): Corp | Quartix (QTX): Corp
Companies: GHH IGP QTX
Interim results were in line with previously reduced expectations, illustrating lower levels of demand in the Industrial division and some effects of COVID-19 in Q2. Profitability was affected by reduced overhead recovery and a lower mix of high margin industrial lasers as well as R&D expensed in the A&D division. No change to 2020 forecasts, with an uptick expected in H2, backed by a solid order book. While the current year P/E looks high at 35x, we anticipate a good profit recovery will make t
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Publication of international factory list: Today’s publication of the Group’s international factory list meets its pledge for full supply chain transparency within 12 months of the Independent Review into its supply chain, published by Alison Levitt QC in September 2020. The list details c.1,100 factories following an extensive mapping and audition exercise that was begun in 2020. The Group has also announced its intention to sign the International Accord for Health and Safety. This is a legally
Companies: boohoo group Plc
Companies: Made.com Group PLC
The publication of Boohoo Group’s Economic Impact Report, released yesterday, made clear its commitment to the UK, with plans to invest more than £500m over the next five years, creating 5,000 new UK jobs in the process. The report also detailed the Group’s material contribution to the UK economy, supporting more than 8,000 full time jobs and contributing more than £2bn to UK GDP since 2009. The investment signals both the quantum of the future growth opportunity and confidence in the Group’s pr
Games Workshop’s (GAW’s) trading update indicates sales growth for Q122 (three months to 29 August 2021) is in line with management expectations. Management has highlighted pressure on freight costs and currency exchange rates given GAW’s high international exposure. The declared dividend of 25p per share brings the year-to-date total to 65p. Our forecasts for FY22 and FY23 are unchanged. Our DCF-based valuation remains £129 per share.
Companies: Games Workshop Group PLC
The interim results are in line with expectations. The group’s three-year rebuild strategy appears on track reflected in strong trading in the UK & Ireland (UK & I) and the positive benefits of the broadening of the product range. Our full-year forecast remains unchanged.
Companies: Eve Sleep PLC
Reckitt Q2/H1 21 numbers missed estimates. Q2 sales declined 1%, hurt by slowing Hygiene growth (+7.8%) and weaknesses in Health (-5.6%) and Nutrition (-9.7%). H1 sales were up 1.5%, driven by Hygiene (+18.1%). The adjusted operating profit margin (-290bp to 21.6%) was hurt by steep rise in input prices.
FY 21 guidance (0-2% growth, 40-90bp margin contraction) was re-iterated (ex-IFCN China incremental margin offset by cost inflation). We will cut our estimates to factor in the soft growth/marg
Companies: Reckitt Benckiser Group plc
Solid Q1 21 trading update
Chargeurs posted Q1 21 sales of EUR181m up 14.8% of which15.6% LFL, tracking 8% above our EUR168m (+7% LFLe). The upside to our forecasts was driven by acceleration at protective films and sustained activity at Healthcare Solutions.
Protective films and CHS driving the beat
Trends at protective films picked up to reach +10.9% LFL thanks to strong demand in construction end markets, the ramp up of the Italian production facility and growing contribution from the
Companies: Chargeurs (CRI:EPA)Chargeurs SA (CRI:PAR)
Although renewable energy has been gaining increasing traction over the past decade as the costs of renewable energy generation and perhaps more importantly, energy storage have fallen, 2020 was a seminal year for transitional energy investors driven by governments seeking to “build back better” after COVID-19. The US has committed US$2.25trn largely focused on the energy transition while the EU has committed US$0.54trn with companies around the world including China committing to net zero targe
Companies: LAM FSJ TGP PRES JMAT CRPR NEXS VLX
The H1 results (in line with expectations) were led by New Category growth (up by +50%) and the partial recovery from the pandemic impact. We see the outlook as good, with annual sales revised upwards and even though margins may be challenged by increased New Category investments. This is definitely good for the long term, but could be (unfairly) misinterpreted by the market at the moment.
Companies: British American Tobacco p.l.c.
Daimler’s management and board of directors have approved the spin-off of Daimler Truck as an independent company and will submit it to a vote to shareholders at an extraordinary shareholders meeting set for 1 October. The spin-off and listing is expected to take place before the end of 2021.
Companies: Daimler AG
Tandem Group plc is a leading provider of sports, leisure and mobility products in the UK, with a valuable collection of licenses (eg Disney, Warner Bros and Mattel) and its own brands. The group is aligned with key structural growth trends such as rising demand for e-mobility products (e-bikes and e-scooters), boosted by a desire for less polluting forms of transport. Trading on a T+2 Adj P/E of only 6.8x, we believe Tandem is significantly undervalued, and see upside of c64% to the current sha
Companies: Tandem Group plc
Significant progress from all portfolio companies
Companies: Tern PLC
Gleeson has reported a year of excellent growth with completions, revenue and profits all ahead of pre-pandemic levels. The results are in line with expectations (upgraded several times during the year) and the FY22 2,000 home target has been reiterated. Both divisions continue to experience robust demand and supply chain challenges are being well managed. A new sustainability strategy is being launched this year alongside emissions reduction targets (direct and indirect), which will only serve
Companies: MJ Gleeson PLC
Companies: Science In Sport Plc