Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SOLVAY SA. We currently have 7 research reports from 1 professional analysts.
|17Jan17 06:30||GNW||Solvay restates 2015 and 2016 financial information following recent portfolio transformation steps|
|14Dec16 06:00||GNW||Solvay to sell its stake in Vinythai to AGC Asahi Glass|
|07Dec16 06:00||GNW||Solvay continues its transformation with the sale of its cellulose acetate tow business|
|06Dec16 07:00||GNW||TRANSPARENCY DECLARATION - PARTICIPATION NOTIFICATION BY BLACKROCK, INC|
|23Nov16 07:00||GNW||PARTICIPATION NOTIFICATION BY BLACKROCK, INC|
|08Nov16 06:01||GNW||SOLVAY GROUP HIGHLIGHTS 3RD QUARTER AND 1ST 9 MONTHS 2016|
|29Sep16 06:00||GNW||Solvay accelerates drive for sustainable and long-term value creation with new mid-term objectives|
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Underlying figures look good – at first sight
08 Nov 16
Q3 sales rose +8% to €2,921m and the gross profit margin improved from 26.9% to 29.7%, based on IFRS. EBIT rocketed +67% to €360m and net profit attributable to shareholders ballooned by +71% to €176m. Conveying the better operating performance and higher D/A down the road, operating CF strongly increased by +31% to €522m. Investing CF swung from €-193m to €37m, clearly pushed by the divestment of Solvay’s stake in Inovyn, the European chlorovinyls joint venture held with Ineos, contributing €309m to CF. Financing CF dug deeper from €-130m to €-588m, burdened by higher repayments of borrowings (€-541m after €+20m). Management provided a more detailed FY guidance, now expecting®EBITDA to grow 7-8% (high single-digits; 2015 pro forma: €2,336m) and FCF is expected to exceed €700m (above €650m).
Stuck on its struck path
29 Jul 16
It looks to us that Solvay will follow its chosen path by focusing on a creative set of figures. Based on the previous year’s pro-forma figures, Q2 sales were down 6% to €2,946m, whereas gross profit margin strongly rose from 27.0% to 29.0%. Underlying EBITDA (no chance for adjustments) strongly grew by +35% to €453m and net income attributable to shareholders jumped +48% to €185m. Operating CF was burdened by higher NWC outflow and higher provisions coming in at €356m after €410m. Investing CF moved from €-267m to €-173m due to some lower capex and a swing from acquisitions to divestments of companies. Financing CF was hit by the swing from net gross debt issuance (€18m) to net gross debt repayments (€-321m) and additionally loaded by higher dividends. Management reaffirmed FY guidance, still expecting REBITDA to grow in high single-digits (2015 pro-forma: €2,336m). FCF is seen above €650m.
Babel in numbers
03 May 16
Solvay has created a set of figures, which might have been meant to generate transparency but the comparable figures are pro-forma figures as if Cytec had been acquired since 1 January 2015. Sales moved up +10% to €3,052m, despite a more than €430m (estimate) push from Cytec, as prices, adverse FX developments and some divestments offset Cytec’s sales. The gross profit margin slightly improved (26.0% after 25.7%) but net income attributable to shareholders was hit by significantly higher one-offs as well as interest expenses melting like ice in the sunshine (€15m after €140m). By contrast, operating CF swung from €-88m to €217m, driven by much higher D/A and a NWC outflow, which nearly halved (€-246m after €-502m). Investing CF came in at €-217m after €-526m, predominately helped by the lack of an income tax payment and some lower capex (below D/A). Financing CF swung from €521m to €-383m due to the swing from net cross debt repayments (€334m) to net gross debt issuance (€-137m) and some higher dividend payments. Management reaffirmed FY guidance, still expecting REBITDA to grow in high single-digits (2015 pro-forma: €2,336m). FCF is seen above €650m.
Where has all the performance gone?
25 Feb 16
Thanks to FX tailwinds (6%), Solvay reported +4% higher sales at €10,578m in 2015, but the gross profit margin improved 1.0bp to 26.1%. REBITDA went up +10% to €1,955m and net profit attributable to shareholders came in at €406m after €80m. Operating CF declined 14% to €1,388m, facing a swing in NWC from €236m inflow to €-99m outflow. Severely hit by the purchase price for the Cytec acquisition, investing CF went from €-650m to €-6,113m as capex remained unchanged. Financing CF swung from €-1,690m to €5,475m, fuelled by €1,477m proceeds from the capital increase, €990m from the issuance of the hybrid bond and €3,409m (€-1,214m) net gross debt proceeds. Management proposes a dividend of €3.30 (pre-adjusted: €3.40; adjusted for the value of rights issued in December 2015: €3.20) per share at the next AGM on 10 May 2016. For 2016, management expects REBITDA to grow in high single-digits and FCF to exceed €650m. The annual report should be available within the next few weeks.
An organic flop: when does this change?
30 Oct 15
In Q3, Solvay again generated no organic growth, but sales were up +5% to €2,714m. The gross profit margin clearly improved 1.7pp to 26.9%. EBITDA came in slightly weaker (€425m after €430m) and net profit attributable to shareholders declined 10% to €103m despite a lower income tax rate. Operating CF went up +16% to €420m, predominantly driven by the €47m swing in NWC to €18m inflow. Investing CF (€-212m after €-299m) was helped by divestments of subsidiaries and the sale of other investments. Financing CF (€-130m after €-264m) mainly benefited from a swing from net gross debt repayment (€-223m) to purchase (€17m). Management continued to fail to give clear guidance, but is confident of generating solid REBITDA growth in 2015.
Cytec – the next Rhodia or a real change?
30 Jul 15
Solvay announced the acquisition of Cytec, the second largest player in aerospace composite materials, for an enterprise value of US$6.4bn. The total cash consideration will be US$5.5bn, reflecting a 27% premium on the volume-weighted average closing share price over the last quarter. Financing has to be fully financed and will consist of a €1.5bn rights issue, €1.0bn hybrid instruments and senior debt issuance. The acquisition is expected to be closed in Q4 15.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
Continued progress since interims
01 Feb 17
Carclo has announced that H217 trading remains strong and the outlook for the full year is in line with its expectations. Growth is being driven by the two larger divisions, Technical Plastics (TP) and LED Technologies, while the Aerospace division is experiencing stable trading conditions. We leave our estimates unchanged, but note potential currency upside should foreign exchange rates remain at current levels for the remainder of FY17.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
Small Cap Breakfast
14 Dec 16
Ultimate Products—The Telegraph reports Jim McCarthy, former chief of Poundland has been appointed Chairman of Ultimate Products ahead of a £100m listing in H1 2017. Ultimate Products owns the Beldray cleaning brand and the licence to sell Russell Hobbs and Salter electrical products in the UK. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
N+1 Singer - Victrex - Strong Q4 delivered – meeting FY expectations
11 Oct 16
Victrex’ year end update confirms a strong Q4 performance, driven by the anticipated surge in demand from its large consumer electronics programme. Full year volume and revenue are both a touch ahead of our forecasts and consensus expectations. Invibio has delivered a steady year, in line with expectations, and the Magma oil & gas project has delivered its first meaningful revenues of over £1m. The outlook reiterates previous caution over the consumer electronics outlook but we believe this is now reflected in most analysts’ forecasts, including our own. There is no mention of currency, but this is clearly a strong tailwind for FY17 and, if current rates persist, into FY18. Overall, today’s statement should be well received. There was a lot to do in Q4 and Victrex has delivered it. In our view, the FY17 rating of 16x with a 6% yield (inc. 3% special) represents an attractive entry point for this high quality group.