Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Umicore. We currently have 9 research reports from 1 professional analysts.
Umicore’s H1 figures showed a good performance seeing sales growth (ex precious metal sales) and increased profitability. Sales from continued operations rose +7% to €1,453m and EBTDA increased +14% to €354m. Net income attributable to shareholders was additionally helped by a swing in profit from discontinued operations coming in at €119m (€6m). Management confirmed FY guidance, expecting recurring EBIT in a €370-400m range (continued operations: €355-385m). Management is increasing opacity by stopping the issuance of the quarterly trading updates, which we do not appreciate.
Umicore reported some Q1 trading figures with sales from continuing operations up by +13% driven by strong demand in clean mobility. Management gave FY guidance, expecting recurring EBIT in a €370-400m range (continued operations: €355m-385m).
Umicore released a mixed picture within its divisions. The group’s sales excluding precious metal trading were marginally up (+1% to €2,668m), with EBITDA at €408m after €427m. Net profit attributable to shareholders clearly dropped 23% to €131m. Operating CF clearly rose +45% to €384,7m, primarily fuelled by the swing in NWC from €-113m to €13m, seeing higher inventories. Investing CF was a bit weaker (€-209m after €-222m) as higher investments in intangible assets were more than offset by disposable gains. Despite clearly higher dividends (€-143m after €-115m), financing CF stood fairly unchanged at €-105m (€-99m) as equity measurements of the company generated some positive inflow (€38m). Management proposes a gross annual dividend of €1.30 (€1.20) per share at the AGM on 25 April 2017, of which €0.60 was already paid out as an interim dividend in August 2016. For 2017, management expects clean mobility activities to deliver solid growth. Recycling activities are seen as benefiting from the new capacities coming on stream. We expect the Annual Report to be published within the next few weeks.
Umicore’s number-less trading statement reported a +7% revenue increase mainly driven by Catalysis. Management confirmed recent 2016 guidance expecting recurring EBIT to be in the range of €345-365m including the FY contribution of Zinc Chemicals for the full year, but excludes the effect of the rescheduled shutdown of the Hoboken smelter at the end of the year.
Umicore saw some higher sales from continuing operations (+2% to €1,207m, ex-metal trading) and EBITDA rose +10% to €223m in H1 16. Net income attributable to shareholders dropped from €90m to €46m due to the negative impact from discontinued operations. Operating CF more than trebled (€169m after €51m), fuelled by significant lower NWC outflow (€-13m after €-165m). Investing CF stood fairly unchanged at €-89m, whereas financing CF moved from €-14m to €-63m as the latter suffered from a swing from net gross debt issuance (€23m) to net gross debt repayment (€-11m) and was additionally burdened by higher dividend payments (+27% to €-74m). Management slightly lifted 2016 guidance, expecting now recurring EBIT to be in the range of €345-365m (€335-360m) including the FY contribution of Zinc Chemicals for the full year and based on current metal prices.
Umicore’s sales update provided only percentages but no hard figures. Group’s sales were marginally up by 1%. Catalysis reported strong demand from automotive, but the division’s performance was mostly offset by weaker performances from Energy & Surface Technologies (-4%) and Recycling (-8%). Both suffered from lower metal prices. Management did, however, provide some guidance with recurring EBIT expected to be in the range of €335-360m in 2016.
Umicore reported a +11% sales (ex metal trading) increase to €2,629m pushed by higher demand in Catalysis and Energy&Surface Technologies in 2015. EBITDA rose +5% to €417m and net profit attributable to shareholders was almost unchanged at €171m. Operating CF jumped +49% to €396m predominantly driven by a swing in NWC from €-113m to €88m. Investing CF came in at €-242m (€-222m) despite lower capex investments. Due to the share-buy-back programme (€-64m after €-10m), financing CF moved from €-99m to €-148m. Management will propose a higher dividend of €1.20 (€1.00) per share, of which €0.50 was paid out in September 2015, at the next AGM on 26 April 2016. Management failed to give clear guidance, but expects significant higher volumes in clean mobility and recycling. Metal price development is expected to remain volatile. AR is expected to be released in the coming weeks.
Q3 sales are seen +10% higher driven by Catalysis and Energy&Surface Technologies. Net debt increased due to interim dividend payments (€50m) and share buy-backs (€32m). Management became a bit more moderatein its guidance, now seeing REBIT near (previously: in the upper part) the €310-340m range.
H1 sales (ex precious metal sales) were up +12% to €1,349m and EBIT rose +18% to €123m. Net income attributable to shareholders came in +11% higher at €90m. Operating CF was severely hit by a €221m swing in NWC to €-165m outflow and investing CF moved up from €-69m to €-92m mainly driven by higher capex. Financing CF came in at €-14m after €-98m, primarily lifted by the disposal of own shares. Management fine-tuned already given FY guidance, expecting now REBIT to come in the upper part of the previously stated €310-340m range.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Umicore. We currently have 9 research reports from 1 professional analysts.
Elementis (ELM LN) Share price drift presents buying opportunity | Springfield Properties (SPR LN) Springboard to sustainable long term growth | T. Clarke (CTO LN) Positive update, order book building for FY18/19
Companies: TClarke Elementis
The trading update in September reported that expectations for the year were unchanged but that H1 had seen operational challenges and delays in the Technical Plastics division. The Interims today reconfirm that position with a strong H2 weighting expected (c.37:63). This is more pronounced than usual and will rely on a much improved performance from Technical Plastics which management is confident can be achieved. The forecast risk is obviously higher due to this weighting but we remain at Buy with an unchanged target price of 175p (P/E of c.14x March 18).
Elementis’ shares have drifted recently, underperforming peers despite reporting a very solid Q3 performance just three weeks ago. The shares now trade at a marked discount to the peer group, having de-rated since the start of the year. We expect an in line outturn to FY17 and believe Elementis is well set to deliver continued profit growth in FY18 with the potential for non-core disposals to enhance cash generation. End market conditions are generally favourable in Specialties (US and China coatings exposure both positive, oilfield recovery continues, personal care growth well in excess of GDP). Meanwhile, Chromium looks to be through the worst of a challenging competitive environment. We consider recent share price weakness a buying opportunity with the shares now trading on an FY18 P/E rating of <17x, a 10% discount to the peer group.
Totally (TLY) - Sch 1 for £11m RTO of Vocare, a provider of integrated urgent care services to the NHS throughout the UK. £76.8 million rev in the year ended 31 March 2017. Totally to address Care Quality Commission concerns. Due 24 Oct. Central Asia Metals (CAML) -RTO of Lynx Resources. Anticipated market capitalisation at Admission: £404.8m. Raising £113m at 230p. Acquiring the SASA zinc-lead mine in Macedonia from Solway Industries. Due 15 Dec. Springfield Properties—Scottish housebuilder. “Our turnover exceeded £100 million for the first time this year and now we employ around 500 people. This IPO is the next step in our growth.” Expected Mid October. Offer TBA. OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. Orogen plc, to be renamed Sosandar plc on Admission. Sosander is an online womenswear brand specifically targeted at a generation of women who have graduated from younger online and high street brands, and are looking for affordable clothing with a premium, trend-led aesthetic. Offer to raise £5.3m with market cap of £16.1m, expected 2 November 2017 OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected late october .
Companies: AUR SDX GPX ZOL VLTY SLN SCPA TEF AVAP
Successful investing is all about detail. Take the UK’s latest new car registration figures, which were down -4.6% Oct’17 YTD according to the Society of Motor Manufacturers and Traders (SMMT). Clearly the big boys – namely the large OEMs (eg Ford), suppliers (GKN) and dealers (Pendragon) - are having a difficult time, buffeted by more cautious buyers and environmental concerns over diesel engines (-14.9%).
Highlights this quarter: Economics: Generally, the data points to modest growth continuing, with a more positive trend in PMI surveys suggesting decent m manufacturing momentum over the next six months. Currency weakness continues to be a double-edged sword for U K manufacturers, with exporters gaining competitiveness while input prices have risen. There has recently been a divergence of sterling’s performance against the euro and the USD. Those in commodity or competitive product areas may well have seen margin erosion, while many in intermediary goods have already passed on price increases to their customers. With low unemployment, the prospect of tighter labour markets post-Brexit and public sector pay caps starting to come off also signals the potential for some labour inflation, long absent from the UK industrial scene. Topic of the quarter: We believe that powerful macro and sectoral pressures will drive further significant changes to the manufacturing supply chain over the next few years. We investigate some of these pressures, with the move to outsource suppliers to low- cost centres, like China, now seeing a slight reverse flow with some restoring to shorten complex and often inflexible supply chains. We see systems technology facilitating greater supply-chain control and efficiency. Brexit will present challenges to the UK supply chain with price and time to market barriers likely to rise, presenting challenges to the UK’s highly integrated and time-sensitive supply chain. Slick distribution infrastructure and greater information sharing with suppliers are likely to prove winning strategies in optimising logistics and gaining stock efficiencies. Sector valuation: The industrials sector has continued to exhibit strength, with small-cap industrials outperforming by 2 % on last year and larger cap industrials by 17%. Currency and improving economic data have been a positive for the sector. While some other sectors have seen a pick-up in profit warnings over recent months, industrial technology companies have announced generally positive or in-line trading updates that have helped to drive the small-cap Industrials to an EV EBITDA of 8.4x and a P/E of 16.7x with the traditional small-cap discount narrowing.
Companies: SIXH ACL AXS AMPH ALU AEP AVG CAPD CAR FENR FLO RAD GHH HDD IOF MPE RE/ RNO RBN SOLI SOM SCE TRT TRI VANL VEL ZAM
Ten Entertainment Group—The UK's second largest ten-pin bowling operator with 40 sites announced the successful pricing of its initial public offering and the placing of 16,250,000 Shares at a price of 165 pence per Share. | Verditek— Schedule One. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Funding and admission date TBC. | Eddie Stobart Logistics— Schedule 1. Admission expected 25 April but capital raising details TBC. | ADES International Holding— Intends to join the Standard List in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. | Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
Companies: DJI ESC STCM SCPA ONZ 7DIG SRT BRD MTEC GAL
Haydale Graphene Industries (HAYD) has successfully raised £9.28m by way of a placing and open offer to fund the company’s next stage of development and growth. HAYD is an advanced materials business that enables customers to exploit the properties of graphene and other nanomaterials, including silicon carbide. By pursuing just a few opportunities the company should achieve profitability within a sensible time frame. HAYD’s global footprint has helped it win business in Korea, Taiwan, the UK and the US in the end markets outlined below
Companies: Haydale Graphene Industries
Symrise’s sales rose +5% (organic: +9%) to €763m, EBITDA improved +8% to €162m and EBIT clearly went up +15% to €162m in Q3.
Q3 sales were pushed by the Chemtura acquisition and clearly rose +25% (p: +6%; v: +3%; FX: -3%; portfolio) to €2,404m. The gross profit margin softened from 32.2% to 22.9%, but EBITDA strongly improved by +31% to €315m. Net profit attributable to shareholders came to €55m after €62m. Operating CF rose +21% to €369m driven by higher D/A (€184m after €119m) and higher NWC inflow (€133m after €113m). Despite higher capex (€-125m after €-106m; 67.9% of D/A after 89.1%), investing CF moved from €-170m to €-119m, lacking the previous year’s negative net balance of €-68m generated by acquisition-related costs (€-198m) partly counterbalanced by financial inflows (€130m). Financing CF (€-484m after €-264m) reflected the higher net gross debt repayment (€-468m after €-249m). Lanxess acquired Solvay’s phosphorous additives business in the US in order to improve its phosphorus-derivatives portfolio in flame retardants. Management refined its FY guidance now expecting EBITDA pre one-offs to come in at €1,250-1,300m (previously: €1,225-1,300m; 2016: €995m).
Solvay’s sales rose +4% (v: +9%; p: 0%; FX: -4%; portfolio: -1%) to €2,464m in Q3, but the gross profit margin declined from 31.6% to 30.8%. EBITDA declined 3% to €499m and net income attributable to shareholders came in pretty much unchanged at €179m (€176m). benefiting from a tax income. Mainly due to the tax income (€-90m after €30m) and a swing in NWC (€-34m after €27m), operating CF strongly fell by 22% to €406m. After the previous year’s divestment proceeds (€309m; Solvay’s stake in Inovyn), the reporting period’s investing CF (€-214m after €37m) saw some acquisition-related costs (€-30m). Lower capex (49% of D/A) could not fully compensate for the swing. Income from other current assets (€129m after €-14m) and much lower net gross debt repayments (€-86m after €-541m) pulled financing CF up into the black (€63m after €-588m). Management confirmed its guidance, expecting underlying EBITDA to grow 6-8% and FCF is seen as being above €800m.
K+S released Q3 17 numbers. Revenues reached €726.5m (+5.7% yoy), EBITDA €76.7m (+37%), EBIT I €12.3m (vs €-31.4m) and net income €1.5m (€-27.4m). Net debt at the end of Q3 17 amounted to €3.939.2m vs €3,745.2m in H1, €3,584m at year-end 2016 and €2,860m a year ago. Over 9 months, revenues reached €2,549.9m (+3.2% yoy), EBITDA €389.5m (-8.3%), EBIT I €178.1m (-11.8%) and net income €115m (-4.4%). The group maintains its FY17 targets (EBITDA to reach €560-660m, EBIT I €260-360m) but, as a reminder, also indicated in H1 that the 2020 target was no longer realistic (EBITDA was seen to reach c. €1.6bn by 2020).
Amino Technologies (AMO LN) Another strong period | Carclo (CAR LN) Positive trading; improvement in pension and reserves | FreeAgent (FREE LN) Debut prelims strong; executing growth strategy | Gooch & Housego (GHH LN) Good H1 growth with strong prospects | IDOX (IDOX LN) Solid H1; focused strategy driving execution | Oxford Metrics (OMG LN) Benefits of new strategy beginning to show | Vp (VP/ LN) Strong momentum drives FY18 upgrades | WYG (WYG LN) Positive cashflow surprise, FY18 guidance reiterated
Companies: CAR VP/ AMO GHH IDOX OMG WYG
Best Ideas 2017 - H1 Review A strong H1, CVS Group and Renold added for H2 | Gresham Technologies (GHT LN) Significant North American CTC win | Murgitroyd Group (MUR LN) Positive trading update confirms significant H2 improvement | Oxford BioMedica (OXB LN) Debt facility refinanced | RhythmOne (RTHM LN) Adding to the proposition and scale | SQS Software Quality Systems (SQS LN) Hi in line, suggesting recent growth concerns overblown
Companies: IQE OXB RNO SDL GHT CVSG HILS MUR ELM CINE REDD RENE MYSL SERV SQS HRI SFR RTHM
Carclo (CAR LN) Trading in line; Strong H2 expected | Oxford Instruments (OXIG LN) Improved H2 performance, reiterating FY18 expectations | Renold (RNO LN) H1 18 results in line with expectations | Speedy Hire (SDY LN) Delivering further upgrades in today’s interims | Trifast (TRI LN) Continuing good momentum
Companies: RNO SDY TRI CAR OXIG