LIBERUM: CEO Video: Matt Wragg, Gattaca plc:

Hybridan Small Cap Feast - 16/04/2024

16th April 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: Reverse Takeovers: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radical Limited for

Trading report in-line with sector peers

The results for the six-months to January are robust against a backdrop of declining confidence in both clients and candidates generally. With an improvement in the contract book during early Q3 we think this highlights that the tide is starting to turn and likely to feed through to demand for permanent hires ahead of the CY24 end. With net cash accounting for over 70% of the current market capitalisation, the operating business appears undervalued. H1 results were broadly in line with expectat

LIBERUM: Gattaca: Resilient contract performance, perm tough

Profit expectations maintained

We are encouraged by several aspects of the pre-close trading update covering H1, not least the outcome and movement in net cash. A renewed focus on the cost base should result in improving conversion rates, offsetting any further shortfall in fee income during H2. We also remain confident that a recovery in Gattaca’s markets should emerge during Q4 ‘24/early FY25 supporting a further re-rating of its shares. The yoy shortfall in NFI of 16% during H1 includes a large RPO contract which ended i

LIBERUM: Gattaca: Resilient H1 performance

Robust foundations in place

The implementation of the ‘four pillars’ of Gattaca’s new strategy resulted in adj. EBIT rising significantly, as did conversion rates too (up to 5.4% vs 0.2%). Impressively, this was achieved despite the Group’s markets turning more challenging during H2. NFI fell by 8.5% yoy, down by 1.8% in FY23, with a targeted exiting of lower margin contracts a factor. Progress has been driven by self-help: on cost control, marketing, an improved culture, exiting low margin contracts and improved producti

LIBERUM: Gattaca: FY23 in line, delivering on strategy

EPS & cashflow beats, plus dividend reinstatement

Two of the most important qualities of any corporate are resilience & adaptability. Being able to rapidly respond to tougher macro-economic conditions in real time without damaging long term objectives: and Gattaca, a specialist STEM recruiter, fits the bill. Yesterday it reported encouraging progress, despite experiencing a -1.2% (H1 +5.2% vs H2 -7.4%) fall in FY’23 NFI to £43.6m (£44.1m LY) due to the industry’s well publicised slowdown & the conscious unwind from low margin business. Adjus

Hybridan Small Cap Feast 16/08/2023

Joiners: No joiners today. Leavers: No leavers today. 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 reduce maintenance costs, improve reliability and reduce carbon footpr

LIBERUM: Gattaca: FY23E PBT ahead, but cautious outlook

LIBERUM: CEO Video: Matt Wragg, Gattaca Plc*

Well placed to weather even the harshest of storms

Gattaca today reported in line H1’23 results (6M ending Jan’23). Underlying NFI climbed +5.2% to £22.7m (£21.6m LY) thanks to two new client wins and strategic price initiatives (+9% contract & 6% perm). On top, there were standout performances (see note) from defence (+32%), energy (20%) and infrastructure (7%) - partly offset by the shedding of low margin business (2 large accounts) and a not surprisingly less buoyant TMT backdrop (-43.5%, tough YoY comps). We believe the group remains on t

LIBERUM: Gattaca* - H1 in line, good progress on strategy

PROGRESSIVE: SDI Group: Solid update reflects strong second half

SDI Group’s trading update for the year ended 30 April 2024 is in line with current guidance for FY24, with good momentum heading into FY25. This reflects the hands-on approach under the new CEO, addressing short-term issues that had led to underperformance in some businesses. The underlying portfolio performed well in terms of profitability and cash generation, with improved trading in a number of businesses. The increased cashflow in H2 and significant headroom within its banking facilities le

Likewise (LIKE LN) - FY23 results: taking share

Likewise has reported another year of progress materially outperforming the market, against a tough backdrop, as management continue to invest in the business and execute on its strategy. Revenue for the year was up 12.9% to £139.5m and adjusted operating profit increased c. 6% to £3.5m, both in line with Zeus forecasts. We believe current profitability understates the performance of the business as it continues to invest in capacity and logistics. Likewise has also seen continued strength into

Epwin (EPWN LN) - Continuing to perform

Epwin’s AGM statement confirms it is continuing to trade in line with expectations despite the volatile operating environment. Competitors, as well as other building products peers, have warned recently that trading in the first months of 2024 has been below expectations, putting pressure on estimates. The fact Epwin has not warned is testament to how well the business has been managed. It came out of the pandemic in a strong commercial position providing flexibility to manage the business in th

Morning Note – 20 May 2024

Staffline (STAF LN) - Encouraging momentum

Staffline has released a brief AGM statement confirming that the positive trading momentum from the final quarter of FY23 has continued into the first four months of FY24.

Van Elle Holdings plc (VANL LN) - FY24 profit in line, net cash ahead

Van Elle’s FY24 profit (April y/e) is expected to be in line with market expectations, confirming a resilient performance during tough market conditions. Aligning to the figures in today’s statement, we increase FY24 revenue by 1% to £140m and net cash (ex. leases) by 27% to £5.5m, with underlying PBT unchanged at £5.0m. We continue to believe Van Elle has substantial growth opportunities in sectors such as energy, water and rail (including internationally), as well as being well positioned to b

Judges Scientific+ (JDG, House Stock at 11,650p) - AGM trading, forecasts unchanged

Judges Scientific - Cautious AGM Statement – no change to estimates

Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Today's trading update yields no changes to our FY2024 estimates, given they were cautiously set on the basis of there being no material contribution of ‘coring' contract revenue from subsidiary Geotek in the financial year. With negotiations now commencing on a new coring expedition, Judges anticipate a new contract will likely commence towards the end of the financial year, with the substantial

Mpac Group+ (MPAC, House Stock at 490p) - Clean energy advances

Smiths News - Refinancing releases dividend shackles

Smith News’ H124 results highlighted the robustness of the underlying business, but also revealed the success that management is achieving in creating long-term shareholder value. For example, 74% of revenue is now contracted until 2029, the recent refinancing saves costs and removes the dividend restriction, and the organic growth initiatives are gaining significant momentum. Furthermore, the revised capital allocation policy raises the possibility that modest, self-funded M&A could add further

Morning Note – 22 May 2024

Galliford Try | CME - Raising the bar

Galliford Try hosted its Capital Markets Event (CME) yesterday at which it introduced its new targets through FY30 based on executing the unchanged Sustainable Growth Strategy which has proven so successful. The key new targets are a divisional operating margin of 4.0% and revenue in excess of £2.2bn which implies compound revenue growth of 7% pa from FY23, more than doubling at the divisional operating profit level which would be on track to hit c£90m in FY30. That in turn is expected to drive

PROGRESSIVE: Oxford Metrics: Tracking nicely

Oxford Metrics held a capital markets day on 18 April at its recently opened office in Oxford. The event was well attended by investors who saw demonstrations of Vicon’s markerless technology within a 3D virtual reality entertainment environment and within an industrial environment in conjunction with Industrial Vision Systems (IVS), acquired in late 2023. The potential of markerless technologies, smart manufacturing inspection and the ongoing application of the £52m funds from Yotta’s disposal

Trading update: performance ahead of expectations

In an Update for the year to 30 April 2024 Cohort reports overall performance slightly ahead of market expectations. We note that the Group reports very strong order intake of c.£387m (compared to £218m in FY23) resulting in a closing order book which stood at c.£518m (FY23: £329.1m), inclusive of the March SEA Royal Navy £135m Ancilia contract. The group notes strong H2 performance, with overall growth in the Sensors & Effectors division, notably Chess and SEA, outpacing the Communications & I

Likewise - Full year results reflect continued growth trajectory; on track for FY24

Likewise is a fast-growing distributor of residential and commercial floor coverings in the UK. This morning, the group has reported full year results for the year ended 31 December 2023, which illustrate a year of further progress on its path towards building a distribution business of significant scale. Revenue increased 12.9% YoY to £139.5m, a strong outturn considering the current industry backdrop, and reflecting market share gains for the group. With the impact of higher utilisation of the