Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on MULLEN GROUP LTD. We currently have 16 research reports from 1 professional analysts.
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MULLEN GROUP LTD
MULLEN GROUP LTD
Reports 2Q16 Results Well Above FCC Estimates
22 Jul 16
Mullen reported 2Q16 EBITDAS of $46 mm, far exceeding our estimate of $34 mm. OFS revenue and margins were much stronger than we had anticipated due to pipeline hauling work. There were no changes to the Company’s 2016e capex program. The outlook remains tepid for the remainder of the year, especially with a number of large work programs rolling off in the OFS (Premay Pipeline Hauling) and T&L (Kleysen Group) divisions. We have revised 2016e EBITDAS higher by 11.2% while our 2017e EBITDAS is unchanged.
Closes $149 mm Bought-Deal Financing and Concurrent $10 mm Private Placement
17 May 16
Mullen has closed its bought-deal financing, which involved the issuance of 11.2 mm shares (including the over-allotment) at an offer price of $13.30 per share for gross proceeds of $149 mm. An additional $10 mm was raised through a concurrent private placement to the Mullen family and insiders at the same issuance price.
Reports 1Q16 Results Below Expectations, Dividend Reduced, and Covenant Waiver Obtained
22 Apr 16
Mullen reported 1Q16 EBITDAS of $46 mm, below our forecast of $50 mm due to higher than expected G&A costs. The Company reduced its monthly dividend by 63% to $0.03/share (prior: $0.08 share). The new dividend implies a yield of 2.6% while our 2016e payout ratio is 51%. Mullen received covenant waivers in 1Q16 which allowed it to change its net debt formula, which we view positively. Additionally, Mullen paid off its $70 mm Series C notes in the quarter.
1Q16e Preview and Commodity Update – All Is Quiet on the Western Front
13 Apr 16
We are updating our oilfield industry forecasts post the release of FirstEnergy’s new commodity price forecast for crude oil and natural gas on March 24, 2016. We have updated our 2016e Canadian well count/drilling days forecast to 3,209/37,335 from 3,800/43,325. In 2017e, we have left our forecast unchanged at 6,200 wells/70,200 days. In the U.S., our 2016e rig count forecast is now 482 (prior: 610) and 2017e is 675 (prior: 775). Data for 1Q16e came in weaker than our prior forecast anticipated, and we have lowered our estimates across our coverage universe accordingly. We are currently below 1Q16 consensus for 15 of 18 companies in our coverage universe, but the percentages are misleading given the absolute size of EBITDAS being earned this quarter.
19 Jan 17
Aggregated Micro Power* (AMPH): Funding for first peaking power plant project (CORP) | The Mission Marketing Group* (TMMG): Positive trading update (CORP) | Cello (CLL): Increasingly backed by, and leveraging, technology (BUY) | 4imprint (FOUR): Growth backed by strong cash flow continues (BUY) | Allergy Therapeutics (AGY): Positive trading update and market share gains drive upgrades (BUY) | Shanta Gold (SHG): Q4 operating results (BUY) | Sound Energy (SOU): Tendrara extended well test result (BUY) | Revolution Bars (RBG): Price target increase (BUY)
FY16 trading update; 4% earnings upgrade
24 Jan 17
The trading update confirms another year of double digit earnings growth for Empresaria. We anticipate acceleration in growth rates in FY17 reflecting organic growth, acquisition contribution and FX tailwinds; Arden forecast FY17 earnings growth of 24%. We believe this is not reflected in a FY17 valuation of 8.4x, with the relationship to growth expressed in a Price Earnings Growth ratio of 0.35x. The valuation is inconsistent with current trading, geographical alignment and delivery of the strategy to acquire niche growth businesses such as Rishworth and ConSol, which are fundamentally improving the quality of earnings at Empresaria. The shares represent a conviction Buy.
N+1 Singer - St Ives - Downgrade
19 Jan 17
Marketing activation has been impacted by further decline in grocery retail impacting profit by c£5m. Strategic The Company is also taking this opportunity to revise its guidance for Strategic Marketing as its recovery pace is not running at the planned target rate. PBT falls from N1Se £31.9m to £25m. The Company expects dividend to be held based upon lowered guidance and the implied cash flow performance. There do not appear to be any covenant issues. Forecasts and TP under review and downgrade to Hold. We expect the shares to test the 100p level.
Trading conditions difficult but acquisitions underpin growth
23 Jan 17
FY16 revenue will be £53.7m (FY15: £44.8m), in line with ZC estimate of £53.9m, showing growth of c. 20% yoy underpinned by the three acquisitions undertaken in the year. However, due to higher costs relating to the acquisitions and, to a lesser extent, gross margin pressure, PBT will be in the region of £7.0 to £7.2m equating to growth of between 5.5% and 8.0%. As a result, FY16 ZC profit forecast is reduced by 8.0% to £7.0m. The impact in FY18 and FY19 is muted by the announcement of a further acquisition leading to an increase in revenue estimates of 8.7% whilst profit estimates fall c.4.5% in each year, respectively. Despite the decrease in forecasts the PER multiple on FY17 earnings remains single digit at just 9.1x, against a distributor average of 15.8x. With commitment to the forecast dividend increase reiterated, Flowtech offers an above average yield of 4.1%
N+1 Singer - Morning Song 19-01-2017
19 Jan 17
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16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.