Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Umicore. We currently have 8 research reports from 1 professional analysts.
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 8 research reports from 1 professional analysts.
Augean (AUG LN) H1 trading flat, guidance reduced due to I&I | Dialight (DIA LN) Good progress, now we await momentum pickup | Gresham Technologies (GHT LN) Further positive confirmation of Clareti opportunity | Rathbone Brothers (RAT LN) Interims show progress but we remain at SELL on low earnings growth | Restore (RST LN) In line H1 update; on track for another year of significant growth | Servelec Group (SERV LN) Reassuring return to underlying growth for this “Best Idea” | St Ives (SIV LN) Disposal aids deleveraging | Victrex (VCT LN) Strong core revenue growth suggests upside to FY forecasts
Companies: AUG GHT VCT SIV DIA RST SERV RAT
Whether we know it or not, advanced materials are a core component in the everyday life of the everyday person. They are the key material in items we often disregard, such as printer inks and lotions, to objects which defy the laws of gravity like the Airbus A380 and London’s Shard. Furthermore, these materials are not only essential to many objects and structures, but, due to their superior qualities, are the key to the advancement of many industries. One such example is the use of carbon fibre which offers five to ten times more rigidness, stiffness, and strength than its aluminium counterpart. As a result of these impressive qualities, motorsport and athletics have improved ten-fold since their mainstream use and new records are broken every year.
Companies: AGM AUTG BIOM BOY CAR EKT EMH EXO GRPH HDD HAYD IKA ITX CRPR MGAM NANO OXIG PLA SCE SYM VCT ZEN
Today we publish our H1 review of our Best Ideas for 2017 – the document in which we also outlined our key top down and bottom up investment themes for the year. Our 12 top picks in January were Cineworld, Elementis, Herald Investment Trust, Hill & Smith, IQE, MySale, Redde, ReNeuron, RhythmOne, SDL, Servelec and Severfield which have collectively outperformed the wider market by 13% YTD. At the half way stage we retire Cineworld and Hill & Smith from the portfolio (both were moved from Buy to Hold in May after outperformance), to be replaced by CVS Group and Renold. We also give a brief update on the rationale for our picks.
Companies: IQE RNO SDL CVSG ELM REDD RENE MYSL SERV HRI SFR RTHM CINE HILS
Quiz—Sch 1 from the omni-channel and international own brand in the women's value fast fashion sector. Offer TBA. Expected late July. Last year Quiz posted sales of £87.4m while pre-tax profits grew by 17pc to £5.7m | Arena Events Group -provider of temporary physical structures, seating, ice rinks, furniture and interiors. Raising £60m. Mkt cap £63m. Expected on the Chef’s birthday. 25th July. | Altus Strategies—African focused natural resource Company. Offer TBC. Expected Mid July. | Harvey Nash Group— Provider of professional recruitment and offshore solutions moving to AIM from Main. No capital to be raised. Mkt Cap c. £57.8m. | AnimalCare—RTO of Ecuphar NV, a European animal health company. £30m raise. Ecuphar FY16 rev £68.4m, underlying EBITDA £8.9m. Due 13 July. | NEXUS Infrastructure—£35m vendor sale. Mkt cap £70.5m. Provider of essential infrastructure services to the UK housebuilding and commercial sectors. Expected 11 July. FYSep16 rev £135.7m. | Greencoat Renewables - Schedule 1. Targeting a portfolio of operating renewable electricity generation assets, initially investing in wind generation assets in Ireland. Offer TBC. Due Mid July. | I3 Energy –Schedule 1 Update. Independent oil and gas company with assets and operations in the UK. Offer TBC, Mid July admission. | Verditek— Sch 1 update. The Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission late June | Rockpool Acquisitions—Northern Ireland based Company seeking strong NI acquisition with an international outlook. Raising £1.5m at 10p. Due 5 July. | Hipgnosis Songs Fund investment company offering pure-play exposure to Songs and associated musical intellectual property rights. Prospectus yet to be published. | Impact Investment Trust—Exposure to a diversified portfolio of funds providing SMEs across developing economies with the growth capital they need to have a positive impact on the lives of the world's poorer populations. Raising up to $150m at $1.00 | Residential Secure Income - social housing REIT raising up to £300m Admission due c.12 July. | Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus. | NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June. | Kuwait Energy— has not been able to complete its initial public offering as announced in its Intention To Float of 3 May 2017. However, in light of positive feedback from potential investors, the Company remains committed to obtaining a London listing and continues to explore its options. | Supermarket Income REIT– Up to £200m raise to acquire a diversified portfolio of supermarket real estate assets in the UK, providing long-term RPI-linked income. Due 21 July.
Companies: EOG MERC EHP DTG FLK AGQ HAYD PROX ADT OPP
A positive Q3 update from Victrex should pave the way for forecast upgrades. Management is said to be comfortable with current expectations, but volume growth in the quarter (+6%, comfortably offsetting weak consumer electronics sales) and currency benefits (2/3 of the £18m full year benefit to fall in H2) means there may now be a "degree of upside potential". Automotive and Electronics (ex consumer) are said to be showing particularly good growth, as is the VAR channel. We expect the shares to respond positively despite another trimming of consumer electronics guidance and will update our forecasts and TP in due course.
Givaudan reported +6% (organic: +2%) higher sales (to CHF2,483m) but the gross profit margin declined 80bp to 45.6% in H1 due to the newly-acquired businesses. EBITDA was down 6% to CHF597m as, in the previous year’s period, the company booked a CHF55m gain from changes in plan assets. Net income attributable to shareholders came in at CHF384m (CHF368m). Operating CF (CHF269m after CHF237m) primarily improved due to lower NWC outflow (CHF-210m after CHF-242m) despite higher inventories. Investing CF (CHF-229m after CHF-48m) was driven by significant higher capex and acquisition-related costs (Activ International) of CHF-111m. Financing CF moved from CHF-407m to CHF-146m due to higher net cross debt proceeds (CHF385m after CHF88m), which was more than eaten up by the higher dividend payment of CHF-515m (CHF-495m). Management confirmed its mid-term guidance for the 2015-20 period, expecting a 4-5% average organic growth rate and an average 12-17% free cash flow as a percentage of sales. An explicit guidance for 2017 was again not given.
Avacta* (AVCT): What to look for in upcoming immunogenicity study? (CORP) | Byotrol* (BYOT): Acquisition to gain NHS traction (CORP) | H&T Group* (HAT): Results ahead (BUY)
Companies: AVCT BYOT HAT
We recently hosted our annual Industrial Technology dinner with 14 companies, many of which are active in the materials science arena; having focused previously on composite materials in the aerospace sector, in this edition of Machinations we focus on graphene, with its unique and potentially game-changing qualities and potential applications. Investments in this area remain fairly early stage, but could potentially reap huge rewards. Graphene is well represented in the UK small-cap market by several players.
Companies: SIXH ACL AXS AMPH ALU AEP AVG CAPD CAR FENR FLO RAD GHH HDD HAYT IOF MPE RE/ RED RNO RBN SOM SCE TRT TRI VANL ZAM
Harvey Nash Group— Provider of professional recruitment and offshore solutions moving to AIM from Main. No capital to be raised. Mkt Cap c. £57.8m. | AnimalCare—RTO of Ecuphar NV, a European animal health company. £30m raise. Ecuphar FY16 rev £68.4m, underlying EBITDA £8.9m. Due 13 July. | Angling Direct -Schedule 1 from the specialist fishing tackle retailer in the UK . Offer TBA. Expected mid July. | NEXUS Infrastructure—Offer TBA. Provider of essential infrastructure services to the UK housebuilding and commercial sectors. Expected 11 July. FYSep16 rev £135.7m. | Tatton Asset Management –Sch 1. Provider if services to FCA authorized financial advisers. Raising £10m at 156p. Secondary offer £41.6m. Due 6 July. | GYG—Intention to float by the superyacht painting, supply and maintenance company. Due 5 July. Raising £6.9m new plus vendor sale of £21.5m at 100p. Mkt Cap c. £47m. Revenue of €54.6m in FY16 and adjusted EBITDA of €6.7m. | Greencoat Renewables - Schedule 1. Targeting a portfolio of operating renewable electricity generation assets, initially investing in wind generation assets in Ireland. Offer TBC. Due Mid July. | QUIZ— Omni-channel fast fashion womenswear Company intention to float. Due July 2017. Offer TBA | I3 Energy –Schedule 1. Independent oil and gas company with assets and operations in the UK. Offer TBC, 7 June admission. | Verditek— Sch 1 update. The Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission late June | Rockpool Acquisitions—Northern Ireland based Company seeking strong NI acquisition with an international outlook. Raising £1.5m at 10p. Due 5 July. | Hipgnosis Songs Fund investment company offering pure-play exposure to Songs and associated musical intellectual property rights. Prospectus yet to be published. | Impact Investment Trust—Exposure to a diversified portfolio of funds providing SMEs across developing economies with the growth capital they need to have a positive impact on the lives of the world's poorer populations. Raising up to $150m at $1.00 | Residential Secure Income - social housing REIT raising up to £300m Admission due c.12 July. | Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus. | NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June. | Kuwait Energy— $150m raise plus vendor offer. Admission due June. 2p reserves 810.0 mmboe | Supermarket Income REIT– Up to £200m raise to acquire a diversified portfolio of supermarket real estate assets in the UK, providing long-term RPI-linked income. Due 21 July.
Companies: AVAP PRM AEG FJET FAL EDE BRD TEG PROX AAU
ATTRAQT Group (ATQT LN) Integration progress; potential for significant cost savings | Bodycote (BOY LN) Good trading, in line with management expectations | Brewin Dolphin Holdings (BRW LN) Positive interims showing Q2 FuM growth and margin accretion | Grafenia (GRA LN) Net cash clarification | Listed Law Conference More listed legal services companies expected | Raven Russia Ltd (RUS LN) Raising funds for further opportunities | Synairgen (SNG LN)Full year results; LOXL2 inhibitor due to commence Phase I in H2 2017 | Zotefoams (ZTF LN) Positive start to the year
Companies: RUS BOY BRW MUR GRA SNG ATQT BUR DRV GTLY ZTF
You don’t have to be a ‘Silicon Valley’ tech startup to deliver double-digit top line growth. Carclo – an innovative designer and manufacturer (70% non-UK sales) of complex plastic parts, cables and premium LEDs (see below) to the healthcare and engineering sectors - has been doing exactly this for years.
AkzoNobel announced an extraordinary shareholders meeting on 8 September in order to appoint the new CEO and additionally discuss the company’s response to PPG’s offers. Furthermore, the company announced the new structure for the executive committee in order to drive operational excellence. Last but not least, Akzo reported Q2 figures, which were poor, as expected by us, and did not meet consensus. Management confirmed recently-given FY guidance, with EBIT increasing by c.€100m compared to the 2016 figure (€1,502m). As a reminder, Akzo defines EBIT as operating income excluding identified items. 2020 targets are a ROS of 15% and ROI >25% excluding unallocated corporate centre costs, etc.
Companies: Akzo Nobel
Clipper Logistics (CLG LN) Earnings enhancing acquisition | Conviviality (CVR LN) Raising a glass to a positive YE update | Halfords Group (HFD LN) Confidence in FX mitigations + staycation benefits | Sigma Capital Group (SGM LN) Successful launch of the UK’s maiden PRS REIT, raising £250m | Small-cap quantitative research Momentum screen refresh + 9 focus stocks
Companies: HFD SGM SDM EYE SOG CLG MAB1 CVR GFIN FARN LRM W7L TET
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
accesso Technology (ACSO LN) Strong start to FY 2017 | Avon Rubber (AVON LN) Contract award helps underpin forecasts for FY18 | eg solutions (EGS LN) Clear visibility of full year targets | Entertainment One Ltd (ETO LN) EPS and DPS in-line, Debt rises in line with last update | Scapa Group (SCPA LN) Forecast upgrades; momentum strong | UDG Healthcare (UDG LN) Strong interims, FY guidance raised 2% | 1Spatial (SPA LN) Onwards and upwards | Driver Group (DRV LN) Turnaround on track |
Companies: ETO AVON SCPA UDG SPA DRV EGS