Invinity Energy Systems - UK Supports Long Duration Storage

The government appears to be following the Lords’ Science and Technology Committee’s recommendation that they “get on with it” when it comes to supporting long duration energy storage. Confirmation of a cap and floor revenue support model that could be open to applications in 2025 should drive new demand for Invinity flow batteries. With a strong commitment to more intermittent renewables, yet also delays on new baseload capacity such as Sizewell C, demand for storage represents a growing and lo

AB Dynamics (ABDP LN) - A haven in a troubled sector

Put mildly the global automotive sector is troubled. The list of challenges is long: stuttering ICE/EV transition, digitalisation, micro mobility car replacement in big cities, lacklustre end-demand, labour disputes, OEM consolidation, social policy and geopolitics. ABD is a haven, offering market-leading testing technology locked into long-cycle, propulsion agnostic, R&D spend by the OEMs; and shielded by regulatory vehicle safety testing requirements. The balance sheet is strong, with c.£30m o

Hercules Site Services - Excellent trading update

Hercules has released a very positive trading update in which it confirms that FY24E revenue is expected to exceed £105m – considerably ahead of our £95.7m forecast. Civil Projects has benefited from the well-documented troubles within the water industry that are requiring increased investment on infrastructure projects. Meanwhile, the number of staff deployed on HS2 continues to rise, and work has recently begun on Sizewell C. Given the group’s continued strong performance, we upgrade our forec

Norcros (NXR LN) - Stable trading in H1-25

Norcros, a market leader in the UK bathroom and kitchen products market along with strong market positions in South Africa, has provided an encouraging trading update for H1-25. Group revenue was flat yoy (cc, L4L) and adj. EBIT is expected to be at least £19.5m, meaning Zeus’ unchanged FY25 forecasts are now 51% covered at the revenue line and 45% at the operating level. The UK division performed well, seeing marginal improvement in Q2 as revenue (cc) rose 1% yoy in H1 following a flat Q1, whil

PANMURE LIBERUM: Research Reels: SigmaRoc - Solid as a rock:

PANMURE LIBERUM: Eneraqua Technologies: Steep recovery expected in H2

PANMURE LIBERUM: Galliford Try: Strong progress to 2030 targets

Morning Note – 9 October 2024

Steering a steady course in H1'25

Norcros’ H1'25 pre-close statement infers that headline trading in Q2 was similar to Q1, leaving group revenue flat overall y-o-y for continuing businesses. On the same basis, while profitability looks to be slightly lower - which may reflect mix effects - company expectations for the full year are unchanged. While easing inflation and interest rates have been welcomed in Norcros’s primary markets, any significant pick-up in economic activity is still pending as new governments bed in in both

SP Angel Morning View: Open season on Mining M&A as Rio Tinto takes out Arcadium

Morning Note – 30 September 2024

Strong order book supports reiteration of guidance

H1 results are as expected, with revenue of £29.9m (H1’24: £26.0m) and an adj. loss before tax of £3.8m (H1’24: £0.4m loss). Since the General Election, project visibility has improved, with policy direction clearer and demand remaining strong. The order book has increased to £114m (Jan. ‘24: £102m). Whilst the H2 revenue weighting is large at 63%, our forecast is fully covered by secured orders, with 40% of the order book for delivery in H2. Management therefore reiterates guidance and we make

James Halstead (JHD LN) - FY24 results robust; margins ahead

James Halstead, a manufacturer and international distributor of commercial floor coverings, has this morning announced positive FY24 results, which illustrate a strong margin performance against a wider challenging backdrop for flooring demand. Revenues of £275m (Zeus est. £285m) decreased 9.4% YoY, primarily driven by weaker underlying demand in a number of regions and wider destocking at certain distributors. Despite this, the group made strong progress on gross margins (+603bp to 44.1%), refl

SP Angel Morning View: Tin inventories expected to tighten as Chinese refined production slides on ore shortages

SDI Group - FY24 results in-line: refreshed view of growth

FY24 results were in-line with its pre-close update, with stronger H2 trading and positive initiatives being undertaken by the new management. Cash generation was also stronger in H2, with sufficient firepower in current facilities to pursue the strategic target of some acquisitions in the current year. We reset our FY25 forecast, which results in adj EPS decreasing by 18.9%, with our target price following suit, moving from 175p to 135p. However, despite the lower forecast we see good prospects