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In Q3 23, organic sales were up by +8.9% and the operating margin from activity jumped to 10.9% of sales (+4.6pts). Seb benefited from high volumes in Professional thanks to large coffee machine contracts in China, the UK and US. In Consumer, organic sales resumed in Other EMEA countries and Americas. The 2023 guidance is unchanged. In Q4 23, Seb anticipates a lower activity level in Professional, very moderate demand in China and the concentration of investment on growth drivers.
Companies: SEB (SK:EPA)SEB SA (SK:PAR)
AlphaValue
In Q2 23, organic sales growth (+6.8%) comfortably exceeded expectations. The main positive surprise came from the strong rebound in the EMEA region in Consumer. In H1 23, the operating margin from activity (-0.4pt to 5% of sales) included a significant margin recovery in Q2 23 (+3pts to 6.4% of sales). Operating WCR improved thanks to lower inventories. The 2023 guidance has been upgraded including organic sales growth of +5%, an increase in the operating result from activity by +10% at least.
Although lower organic sales had been expected, the decrease in Consumer (-6.6%) was above expectation while record organic growth in Professional (+29.1%) beat expectation. Lower sales had a negative impact on the operating result from activity, amplified by the embedded effect of 2022’s high production costs (c.€50m). On the positive side, free cash flow exceeded €200m thanks to inventory reduction. The 2023 guidance includes a recovery in Consumer, strong growth in the Professional business a
Seb reported a higher-than-expected 2022 operating margin from activity at 7.8% of sales (-2.3pts yoy). There was a big contrast between the low margin in H1 22 (5.4% of sales) and the high margin in H2 22 (9.8% of sales) obtained through the reduction of spending on growth drivers and administrative costs combined with a favorable product mix and price increases (+5% on average) during 2022. For 2023, Seb anticipates a stronger top line and an improvement in the operating margin from activity.
In Q4 22, organic sales decreased by 5.6%, less than expected. Seb benefited from strong sales of coffee machines and hotel equipment in the Professional business. In Consumer, Seb beat expectations in South America thanks to Colombia, in Other EMEA thanks to organic growth in Poland, Turkey, Egypt, the United Arab Emirates and in China (+3.8%) despite the surge in COVID-19 cases. The operating margin from activity is now expected in the high-end of guidance (7.0-7.5% of sales) in 2022.
Seb had a weak Q3 22 due to lower volume in France and Germany, and the loss of activity in Russia and Ukraine. The negative impact from activity was significant for the operating margin (-4.3pts to 6.3% of sales). The 2022 guidance was revised downwards taking into account the continuation in Q4 22 of the trend in sales seen in Q3 22 and unchanged headwinds of €-300m on the operating result from activity.
Q2 22 was disappointing. Organic sales decreased by 5.1% due to the Consumer segment (-5.9%). Seb was impacted by weak demand, sales losses in Russia and Ukraine, less loyalty programmes in Europe and the lockdowns in China. In H1 22, the operating margin from activity collapsed to 5.4% of sales (-3.5pts yoy). Higher operating cost was offset by price increases and the product mix but Seb supported higher investment for growth and sales and administrative expenses. 2022 guidance was downgraded.
Companies: SEB SA (SK:PAR)SEB SA (0MGS:LON)
Organic sales grew slightly in Q1 22 (+0.4%) vs a very high comparative. Fewer loyalty programmes in Western Europe (-2.6pts) and the loss of business in Russia and Ukraine had a strong cumulative negative effect on the growth rate (-3.7pts). The operating income from activity dropped to 7.2% (-3.4pts) due to a negative currency effect and a €50m surge in investment for growth and commercial expenses. Seb is targeting growth in sales and the operating result from activity in 2022.
2021 was a great year with organic sales growth of 15.5% and an operating margin from activity of 10.1% of sales, back to the 2019 level. Seb benefited from a huge positive price-mix effect, productivity gains in manufacturing and structure costs under control. For 2022, Seb is confident and anticipates organic sales growth and an increase in the operating income from activity. The question mark is about the impact of the war between Russia and Ukraine on the European activities.
Organic sales grew strongly in Q4 21 (+8.8%, o/w +8.4% in Consumer, +14.4% in Professional). In Consumer, Seb benefited from double-digit organic growth in Other EMEA countries (+13.5%), North America (+11.8%) and China (+14.5% thanks to high Double 11 sales). In 2021, Seb had record organic sales growth (+15.5%) and anticipates an operating margin from activity of 10% of sales. Seb’s strengths are a diversified product portfolio and geographic presence, and the ability to manage well cost infla
Seb beats expectation with solid organic sales growth and a sastisfactory operating margin from activity in a complex environment. Organic sales grew by +6.4% and the operating margin from activity was 10.6% of sales. Seb benefited from low promotional activity, strong volume, price increases, a positive mix effect and productivity gains which offset higher raw material, components and logistic costs and the currency headwinds. 2021 guidance was upgraded.
In Q2 21, organic sales growth remained solid in Consumer (+20.6%), despite no growth in China (-0.1%), and the organic recovery exceeded expectations in the Professional business (+34.2%). In H1 21, the ORfA margin increased to 8.9% of sales (+5.4pts) thanks to higher volume and the positive price mix. 2021 guidance is slightly revised upwards in terms of reported sales growth (>+10% now) and unchanged for the ORfA margin (close to 10% of sales) despite higher negative currency effects.
Q1 21 was an impressive quarter with organic sales growth of +31%, o/w +39% in the Consumer segment and an operating result from activity of €198m (vs €18m in Q1 20) which exceeded by 43% the pre-COVID-19 level. In Consumer, all geographic areas contributed to sales growth. China rebounded (+30%) and was not the fastest-growing geographic area. The big good surprise came from EMEA (+41.5%) and the Americas (+61%). Lastly, Seb gave out its 2021 guidance which was above our current estimates.
Seb released its final 2020 figures which showed a good operating performance on a like-for-like basis. The COVID-19 pandemic boosted online sales which represented 35% of the total (+8pts). Starting the year 2021, the Consumer activities remain solid while the Professional business is expected to be back to normal in H2 21. Management anticipates organic sales growth and an increase in operating income from activity in 2021.
Organic sales grew by 2.9% in Q4 20, above expectations. The good performance came from the Consumer business (+6.2%), while the Professional activities (-28.5%) continued to suffer from the COVID-19-related restrictions for hotels, restaurants and the catering sector. The Chinese New Year, which falls on 12 February, will have an impact on sales in Q1 21. The stronger end of the year 2020 led the group to raise guidance for operating income from activity to c.€600m in 2020.
Companies: SEB SA
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Watkin Jones’s guidance for FY24E is unchanged in its trading update for the first half to 31 March. We maintain our forecasts for the full year and introduce half-year estimates, in line with reiterated guidance that performance will be significantly H2 weighted. The group confirms a continuing gradual recovery in appetite among institutional investors to forward fund its build-to-rent (BTR) and student developments. We believe this should gather pace as the direction of interest rates becomes
Companies: Watkin Jones Plc
Progressive Equity Research
Ceres Power Holdings’ innovative technology uses electrolysis to produce green hydrogen and solid oxide fuel cells to generate power. In a year where it moved to the Main Market of the London Stock Exchange, it recorded revenue growth of 13% and gross margin expansion to 61% (the highest in the sector, according to management), but is yet to record an operating profit (FY23 operating loss of £59.4m versus £54.0m in FY22). Ceres continued its strategy to drive innovation and technology across sol
Companies: Ceres Power Holdings plc
Edison
Sanderson Design Group (SDG) has announced its FY24 full-year results, which are in line with the headline figures from its February trading update. A record year for Licensing and a strong performance in the key North America market helped to offset a challenging consumer environment in other geographies, most notably the UK. While this backdrop is set to persist in FY25E, the group will continue to focus on its strategic growth drivers, notably North America and Licensing, to deliver sharehold
Companies: Sanderson Design Group PLC
Surface Transforms has issued new revenue guidance for FY24, with the company now expecting revenues in the range £17.5-22m. We are withdrawing our previous forecasts for FY24 and withdrawing our price target while we review the impact of the new guidance.
Companies: Surface Transforms PLC
Cavendish
Solid State’s trading update affirms the sustained strength in demand throughout H224, resulting in record FY24 revenue and adjusted PBT ahead of prior consensus of £155m and £12.5m, respectively. This is attributable to the earlier-than-expected delivery of a NATO contract. As a result, consensus FY24 revenue and adjusted PBT estimates have been raised by c 6% and c 20%, with respective FY25 estimates declining commensurately.
Companies: Solid State plc
Subsector price performance: In the fourth quarter to 29 December 2023 all but the AAA publishers and platform subsector saw share price declines. The UK PC and Console focused subsector was again the worst performing subsector (-26.2%) over the quarter and LTM (-70.1%).
Companies: TBLD FDEV DEVO
Zeus Capital
Gooch has issued a positive update for H1. Trading has started to recover with stocking levels normalising at industrial and medical devices customers. The outlook is positive with growth returning, and management has confirmed our full year estimates (adjusted for the disposal of EM4). The order book and order flow appear healthy, and net debt is comfortable. Gooch clearly still has plenty to do to lift operating margins from a lacklustre 8.1%, but the transformation plan appears to be back on
Companies: Gooch & Housego PLC
Banquet Buffet*** Abingdon Health 9.25p £11.3m (ABDX.L) The lateral flow contract development and manufacturing organisation announces its unaudited interim results for the six months ended 31 December 2023. Revenue increased 117% to £2.4m (H1 2023: £1.1m). The Adjusted EBITDA loss decreased 47% to £1.2m (H1 2023: £2.2m). Furthermore, reduction in operating loss of 50% to £1.2m (H1 2023: £2.4m). The Board therefore expects that H2 2024 revenue will be significantly improved compared with H1 2024
Companies: CPX SLP FA/ FIPP ECR ETP ORCA
Hybridan
AFC has unveiled a groundbreaking modular ammonia cracker system demonstrating viable and scaleable production of hydrogen in the UK using this method. The cracker system is designed to deliver 140 tonnes of fuel cell grade hydrogen each year. Hydrogen from the plant will initially be targeted for sale into AFC’s UK H-Power Generator deployments, including those with Speedy Hydrogen Solutions. Along with the recent purchase of the mobile storage and distribution assets of Octopus Hydrogen, AFC c
Companies: AFC Energy plc
Sanderson Design Group (SDG) continues to deliver on its key strategic initiatives and growth drivers despite a challenging global backdrop. The group’s FY23 performance showed flat revenue, with adjusted underlying PBT rising £0.1m to £12.6m. Net cash dropped back to £15.4m, with the total dividend maintained at 3.5p. The star performers were Licensing (reported revenue +25%), the Morris & Co brand (+16%) and the US market (+20%). Our forecast revisions assume more modest sales progression, wit
17th 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: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi
Companies: ARS TIDE SCE SNX ECK CNS TST SPEC SSTY
On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div
Companies: PTAL GHH IGP MSLH PINE NXQ EQLS NXR AXL
AFC has made strong progress with products and its manufacturing strategy. Despite heavy investment, the cash position, at £27.4m, was slightly better than our estimate for £26.9m, demonstrating good discipline. The monthly cash burn rate (at c. £1.3m) is tracking in-line with our expectations. Generally, we maintain our estimates for significantly increased sales in FY24e and FY25e, with the cash position unchanged. Recent news on commercial progress has been positive. The 30kW H-Power Generato
We note the regulatory announcement this morning from Surface Transforms and withdraw our estimates and valuation, pending conversations with management.
SCE is raising £16m through a placing (and up to a further £3m through open offer) to fund substantial expansion and additional working capital. This will enable the Group to grow to £75m revenue capacity in the near term, commence the build and equipping of a new factory and then (with internally generated free cash flow) scale to £150m revenue capacity and beyond. With a contracted order book of £190m and a prospective pipeline of £400m, this is clearly the time to seize the opportunity. The e
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