Strong performance against tough market conditions

Hybridan Small Cap Feast - 10 Jan 24

10th January 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje

Strong sales growth momentum remains in place

Marks Electrical’s sales growth remained strong at 17.8% in Q3, and the company appears on track to match our full year expectations of an 18.7% increase following a strong 21.5% advance in the previous year. But as a company with a core strength in premium products, gross margins have come under pressure - customers’ buying patterns have been negatively impacted by the challenging trading environment. As a result, we cut our FY2024 EBITDA forecast from £8.0m to £5.0m (and reduce FY2025 expectat

Excellent top-line growth but short term product margin pressure

Market share gains and efficiency drive cash flow

Results confirm 24.8% sales growth to £53.9m in H1, and despite lower EBITDA margins, Marks Electrical converted 145% of operating profit into cash (vs. 118% for the whole of FY2023), enabling a 0.30p unchanged interim dividend. Margins, as expected, were reduced by the strategic decision to add integrated gas, electrical and television installation services to its next day delivery service, and increased wages for the company’s drivers. As a result, EBITDA margins were two percentage points lo

Marks Electrical Group - Positive outlook but plenty to do in H2

Interim results are as expected following the H1 trading update. Revenue increased +24.8% to £53.9m as the company continued to gain market share. Adj. EBITDA decreased from £2.7m in H1 FY23 to £2.3m with distribution and installation being the main source of cost pressure. It is on track to meet our reduced FY24E adj. EBITDA forecast of £8.1m, but has plenty to do in H2. It ended the period with £10.9m of cash, as previously flagged, as it continued its focus on working capital management. We r

HY results - strong growth continues

Hybridan Small Cap Feast - 12 Oct 23

12th October 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje

Marks Electrical Group - H1 trading update

Revenue growth remained impressive through the last two months of H1, tapering from 30.7% for the first four months to 24.8% for H1 as a whole, and could have been higher had Marks not taken the opportunity to invest in capacity ahead of the peak Black Friday trading period. Investment in its installation team leaves it well placed for H2 and beyond but, combined with higher distribution costs, it has also had an impact on margins. As a result, we have increased our FY2024E revenue forecast to £

Service uplift sparks 25% sales growth

Marks Electrical Group’s sales revenue advanced by 24.8% in the first half of its 2024 financial year, according to a trading update released today, as the company made further market share gains in its core categories. Notably strong advances by category included +71% for televisions, +74% for washer-dryers and +36% for American fridge-freezers. These gains were achieved against relatively flat domestic markets for both Major Domestic Appliances (MDAs) and Consumer Electronics (CEs). An improve

Strong sales performance but some growing pains

Hybridan Small Cap Feast 10/08/2023

Dish of the day Joiners: No joiners today. Leavers: National Milk Records plc (AQSE: NMRP) has left the AQSE Growth Market. What’s cooking in the IPO kitchen?** Announced ITF 4 August: Tan Delta Systems plc, a Sheffield based Company intends to IPO on AIM. Tan Delta has developed an innovative and differentiated monitoring solution based on real time oil analysis and analytics that offers equipment operators enhanced insight into the maintenance status of their equipment and thus the ability to

Marks Electrical Group - AGM trading update: fast start to the year

The good start to the year continued into June and July, and Marks Electrical has enjoyed impressive sales growth of 30.7% over the first four months of FY24 as it continued to gain market share in the MDA and consumer electronics markets. Sales growth to date is significantly ahead of our FY24 sales forecast of +17.5% but our forecasts are H2-weighted, and the comparator will become tougher as the year progresses (last year’s AGM statement reported revenue growth of 13.7% before Marks went on t

Sales growth exceeds 30% so far in FY2024

Marks Electrical Group (MRK) released a trading update ahead of its AGM. The company enjoyed strong trading in the first four months of its FY2024 financial year as enhanced delivery options, sustained high service quality levels and more widespread brand awareness helped the company to over 30% sales revenue growth in the period, compared with nearly 14% a year earlier. With further benefits of strong cash conversion – consistent with a proposed 0.66p final FY2023 dividend – we reiterate our fa

PROGRESSIVE: Vertu Motors: Smoother roads ahead

The results for the year ended 29 February released today show a robust performance across a difficult year, but they also provide good grounds for optimism. Revenue of £4,720m was a 17.6% advance on FY23, helped by the successful acquisition of Helston in FY23. Underlying operating profit of £59.3m was a 21.5% improvement on the £48.8m achieved in FY23. The net debt (pre-leases) result of £(54.0)m, vs our estimate £(62.0)m and FY23 £(75.3)m, is impressive. Encouragingly the recommended dividend

PROGRESSIVE: Zoo Digital: Recovery continues as pipeline accelerates

This morning’s trading statement from ZOO confirms that customer demand has continued to recover following the end to the industry-wide strikes of last year, with FY24 expected to be ‘at least’ in line with current market consensus. We maintain our FY24 estimates, which we increased slightly at the recent March update, with revenue at $39.9m and an adjusted EBITDA loss of $13.4m. New productions are translating into a healthy order pipeline, with market commentators forecasting a return to 2022

B90 Holdings (B90 LN) - Turnaround drives Q1 2024 profits and promising outlook

The company released 2023 results with Adjusted EBITDA loss higher than we forecast. However, the results do not significantly reflect the refocusing of the business on B2B performance marketing that started in November 2023. The restructuring has significantly reduced expenses and driven the company to EBITDA profitability throughout Q1 2024. We update our 2024 and 2025 forecasts to reflect the company’s new business model and maintain Adjusted EBITDA in both years. We continue to see profits a

SSP Group+ (SSPG, House Stock at 204p) - Interim results preview

Allenby Capital TMT Update - 13.05.24 - MIRI.L, MBT.L, PPS.L, CSFS.L, LST.L, DNM.L

Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.

Morning Note – 8 May 2024

Allenby Capital - Nightcap plc - Interims

Nightcap’s interims for the 6m to end December 2023 were in line with expectations, as such, we make no changes to our forecasts. The number of bars at the period end was 46 up from 36 a year earlier – the expansion driven by the June 2023 acquisition of Dirty Martini. The portfolio expansion led to a year-on-year revenue increase of 42% to £33.4m and 5% growth in underlying EBITDA (IAS 17) to £2.1m. Post period end the Company announced the acquisition of Piano Works funded by a £1m equity rais

LIBERUM: The Liberum Leisure Digest: NLW increase - pricing power is key

Cornerstone FS+ (CSFS, House Stock at 40p) - FY23A results beat, further upgrades

Zeus Building Products and Construction Round-Up - 3 May 2024

Market sentiment turned more cautious in the month of April, particularly regarding interest rates, with economic data producing mixed results. Despite housing transactions and net mortgage approvals continuing an upward trend, with the latter at an 18-month high and +20.1% YoY and +1.4% MoM to 61.3k (seasonally adjusted), Nationwide’s House Price Index dropped 0.4% MoM (seasonally adjusted) in April, below the +0.2% expected. This comes as mortgage lenders nudge rates up to factor in the potent

Hybridan Small Cap Feast - 14 May 2024

14th May 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: 7th May: Time To ACT plc, an engineering business focused on technology for the energy transition sector, has announced its intention to seek Admission to trading on the Aquis Stock Exchange

Hybridan Small Cap Feast - 16 May 2024

16th May 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: 7th May: Time To ACT plc, an engineering business focused on technology for the energy transition sector, has announced its intention to seek Admission to trading on the Aquis Stock Exchange

Various Eateries - H1 trading update; focused on delivering a high quality estate

Various Eateries is an owner, developer and operator of all-day club, restaurant and hotel sites in the UK. This morning, the group has provided an update for the 26-weeks to 31 March 2024, with revenue in the period increasing by 10.2% to £22.7m, driven by new openings, while LFLs moved marginally lower, reflecting a particularly wet winter and the strategic decision to absorb the majority of cost increases rather than increasing menu pricing. Overall trading for H2 to date is reported to be re

Initial Equity Trading Comments - 19 February 2024

Hardman & Co Healthcare Index: 2023 – Capital demands dent performance

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (