Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Eiffage. We currently have 15 research reports from 1 professional analysts.
Eiffage released a strong set of FY results, marked by the continued momentum in heavy vehicle traffic on the group’s toll roads, solid orders in Contracting with slightly higher margins fuelled by favourable volume effects while the full-year dividend has been increase by a third, to €2 per share (AV: €1.7).
Eiffage released a solid set of 9M 17 figures, marked by an equally strong performance of both the Contracting activities and Concessions. Key highlights For the nine-month period: Revenue up 7.1%, to €10,776m (+6% lfl) Contracting up 7.1%, to €8,683m (+5.7% lfl) Concessions up 7.2%, to €2,093m (+7.4% lfl) Order book up 8.7%, at €13bn Guidance maintained
Eiffage released a strong set of first half results, marked by robust contracting activities, whose growth outpaced that of Concessions for the first time since 2009. Key highlights Revenue up 7.6%, to €6,993m Operating profit up 7.4%, to €727m Net profit up 30.8%, to €174m Net debt down €367m, to €11,501m Guidance unchanged Order book up 7% Other developments The group announced the acquisition of Saipem’s Maritime construction business, a non-core asset part of its Offshore E&C division. The business is estimated to have generated around €100m worth of revenue in 2016 from works concentrated mainly in Kuwait, Congo and Panama. Completion is expected to occur in late 2017.
Eiffage released a solid set of Q1 results, marked by the confirmation of the previous guidance, stronger-than-expected Contracting and resilient Concessions despite lower traffic on unfavourable calendar effects. Key highlights Total group revenue up 7.6% (+6.2% lfl) Contracting up 8.4% (+6.7% lfl) Concessions up 4.2% Order book up 7.7 yoy, or +5.2% sequentially Unsurprisingly, management confirmed the previous guidance of a slight increase in sales, along with another increase in earnings.
Eiffage released a positive set of full-year results. Results Group revenue came in at €14bn up 0.7% yoy and 1.3% ahead of consensus. Operating profit was up 11.6%, at €1,597m while the EBIT margin was up 110bp, at 11.4%. Excluding an exceptional non-cash profit due to the future change in the French tax rate, net income was 5% above market expectations, at €416m (+33% yoy). By division, the Concession business performed strongly, revenue being up 4.6%, with Q4 slightly below the nine months growth figure. On the other hand, the contracting activities were broadly flat, implying a strong Q4 (+5%), driven by a continued recovery in the construction business in Europe and particularly in France. The Energy and Infrastructure businesses were down but started to rebound in Q4, particularly in the Energy market were revenue rose by 7.5%, compared to -7.1% during the nine months. The order book of the Contracting divisions increased to €12.0bn, up 5.1% yoy, equivalent to 12.6 months of activity. By division, it was down 1.8% for the construction activities while it was up 14.7% and 3.8% for the Infrastructure and Energy businesses, respectively. At 31 December 2016, Concessions’ net debt stood at €8,705m, down from €9,062m in 2015 while the group’s net debt stood at €11,213m down by €378m. The board proposed a dividend of €1.50, stable compared to 2015. Guidance Unsurprisingly, 2017 is expected to benefit from the 5.1% increase in order intake in 2016 and management sees a slight increase in sales along with another increase in earnings.
APRR, Eiffage’s main toll-road subsidiary, released its revenue and traffic update for the fourth quarter and full year 2016. For the full year: Excluding Construction, APRR’s consolidated revenue totalled €2,327.8m, an increase of 5.1% from €2,213.8m a year earlier. Toll revenues were up 5.2% at €2,257.7m, supported by a 3.6% increase in LV traffic and a +4.5% increase in HV traffic. Revenue from retail facilities, telecommunication and other were up 2.7%, at €70.1m. For the fourth quarter: Excluding Construction, APRR’s consolidated revenue totalled €545.9m, an increase of 4.8% from €521.1m a year earlier. Toll revenues were up 4.7% at €527.3m, supported by a 3.3% increase in LV traffic and a +3.4% increase in HV traffic. Revenue from retail facilities, telecommunication and other were up 7.8%.
Eiffage published a mitigated set of Q3 results. Results During the nine-month period, group revenue reached €10.1bn, down 0.8% yoy. The Contracting activities were down by 2.1% (-2.6% lfl), reflecting the relatively good performance of the Construction division, up 2.4% (+1.3% in France and +6.7% abroad), more than offset by the weaker results of the Infrastructure and Energy divisions, down 1.5% and 7.1%, respectively. Finally, the Concession activities generated €1,952m of revenue, up 4.9% yoy. During the third quarter, group revenue reached €3,565m, up 0.7% yoy. The Contracting activities were down by 0.2%. Construction was down 2.4%, Infrastructure was up 2.7% and Energy down 1.9%. Finally, concessions were up 4.3%, at €732m. The order book for the contracting activities reached €11.9bn, up 4.8% yoy (+7.5% excluding the BPL project), representing c.12.7 months of Contracting activity. Guidance The group confirmed its guidance of a slight decline in activity and improved results over 2016 as a whole. Other developments The company also confirmed that AREA, the APRR subsidiary, has signed an acquisition contract regarding the Bouygues Group’s entire 46.1% interest in ADELAC capital, the concessionaire for the A41 North motorway between Annecy and Geneva for €130m. At closing, AREA will sell this 46.1% to Eiffage and Macquarie. Eiffage’s stake will remain accounted for as an equity associate.
APRR released its revenue and traffic update for the 9-month and Q3 periods. For the 9-month period: Excluding Construction, APRR’s consolidated revenue totalled €1,781.9m, an increase of 5.3% from €1,692.7m a year earlier. Toll revenues were up 5.4% at €1,641.8m, supported by a 3.6% increase in LV traffic and a +4.9% increase in HV traffic. Revenue from retail facilities, telecommunication and other were up 1%. For the third quarter: Excluding Construction, APRR’s consolidated revenue totalled €665.4m, an increase of 4.6% from €635.9m a year earlier. Toll revenues were up 4.7% at €617.0m, supported by a 3.6% increase in LV traffic and a +2.7% increase in HV traffic. Revenue from retail facilities, telecommunication and other were up 2%.
- Consolidated revenues €6.5bn, -1.6% (-2% lfl); - EBIT +13.6% with operating margin improvement (+104bp to 10.4%) with the contribution of contracting; - Net profit attributable to holders of the parent +68% to €133m (despite higher restructuring costs mainly at Metallic Construction); - Net debt: -€0.4bn over 12 months and +€0.3bn since 01/01/2016; - Order book: €12.1bn, up 1.6% (+4.7% excluding BPL) since 01/01/2016 (12.8 months activities); - Increase in liquidity to €2.4bn at 30/06/2016 (vs €2.1bn at 30/06/2015). Eiffage reiterated its guidance for a FY 16 increase in net attributable profit. Post-closing event: 3 acquisitions of medium.
H1 16 traffic (number of kms travelled) +4.1% vs H1 15 with: Light vehicles +3.7% Heavy vehicles +6% Excluding Construction, Q2 16 APRR’s consolidated revenue: €575.7m + 4.6% (+€25m) Q2 16 traffic +1.8% with: Light vehicle +0.7% (unfavourable calendar effects) after +6.5% in Q1 15 (favourable weather effect) Heavy vehicles +8% (favourable calendar effects and traffic diversions linked to bad weather) after +3.9% in Q1 15
APRR released yesterday Q1 16 traffic figures after the market close. They are excellent (vs. Q1 15): + 6.5%, of which LV (light vehicles) +3.9% and HV (heavy vehicles) +3.9%. Traffic revenues: €506m, +6.8% (last tariff increase 01/04/2016), of which toll roads +7%. The annual contractual revision of tariffs agreed with the French State has translated from 01/02/2016 into an average increase of 1.23% and 1.27% respectively for light and heavy vehicles.
FY 15 performance is globally in line with expectations and slightly above our FY 15 forecasts (much above for the dividend) with the 2.8% decline of the order book as the only downside (+1.6% for Q4 15). A 25% increase in the dividend will be proposed, to €1.50 (AV forecast €1.25). FY 16 guidance: a small decline in consolidated revenues and a new increase in net profit (new contribution of lower D&A and lower financial expenses).
Eiffage has presented its reorganisation targets (only two head offices) and its management's tools based on digitalisation: - they respond to the most demanding requests in tenders (BIM); - they are the basis for cost control and efficiency; - they should enhance the efforts to improve margins. However, for 2015/16, the hefty costs implied by the restructuring should swallow the benefits. FY 15 guidance is unchanged. The newsflow should be rich in Q4 15 with the expected announcement in c.10 days of the results on the first bids for Grand Paris (Eiffage is the preferred bidder for at least one project, some PPPs and Eole). However, the expected revenues from these offers will not change the size of the group until at least 2017/18. These offers would be won in a price-pressured context but they have no lump sum risks. The recovery in civil works in France is still not here, the Real estate division is maintaining its size and the Energy division is being reorganised to align its EBIT margins on Vinci Energy’s. New progress is expected in financing costs.
- Consolidated revenues €6.6bn, +1.4% - EBIT +3.8% with operating margin improvement (+20bp to 9.0%) - Net profit attributable to holders of the parent +14.5% to €79m (despite higher restructuring costs mainly at Metallic Construction) - Net debt: down €0.4bn over 12 months - Order book: €11.9bn, up 1.1% since 1 January 2015 (12.2 months activities) - Sharp increase in liquidity to €2.1bn at 30/06/2015 (vs €1.5bn at 30/06/2014). Eiffage is guiding for a FY 15 increase in net attributable profit. Post-closing event: the 09/04/2015 protocol between the State and APRR & AREA and incorporating the motorway stimulus package amounting to €720m were published in the Journal Officiel on 23/08/2015.
APRR released after the 20/07/15 market close, H1 15 traffic figures. They are good (vs H1 14): +2.2%, of which LV (light vehicles) +2.3% and HV (heavy vehicles) +2%. Traffic revenues +2.7% (last tariff increase on 01/04/2014). Q1 15 traffic figures were +1.8%, of which LV (light vehicles) +1.8% and HV (heavy vehicles) +1.9% with traffic revenues +2.4% (last tariff increase on 01/04/2014).
Research Tree provides access to ongoing research coverage, media content and regulatory news on Eiffage. We currently have 15 research reports from 1 professional analysts.
We have completed another refresh of our value style screen, first established as of 12 May 2015. As usual the screen selected the 25 stocks exhibiting the most extreme value characteristics from our universe, and we have chosen 10 stocks to focus on. Since the last refresh, two days before the last general election, which resulted in a hung parliament, the screen has performed a little better than the small-cap index with our focus stocks outperforming by about 500bps. The weighting to UK consumer stocks noted last time detracted from performance, which came as little surprise given our cautious stance, much discussed in our other strategy work this year. One might have expected more consumer exposure in the refreshed screen given this year’s severe underperformance, but it appears forecasts have been similarly downgraded, keeping much of the sector outside our value criteria
Companies: AUG EHG GOAL MMH RTHM SDY TEF VANL
Gattaca plc (GATC.L, 161p/£49.7m) Interim results to 31 January 2018 (19.04.18) | RTC Group plc (RTC.L, 56p/£8.2m) AGM trading update (18.04.18)
Companies: Gattaca RTC Group
With Q1 2018 behind us, we evaluate the performance of the tech sector versus the broader market, and peers across the pond to see how the London listed technology universe compares to its bigger and better known US counterparts. We examine if the UK listed tech sector is overvalued on a relative basis. No tech sector review can be complete without analysing the performance of the big eight mega tech companies who had a very good year and currently have an aggregate market capitalisation of US$4.79tn, roughly the size of the Japanese economy.
Companies: APC ECSC EUSP FDM GETB SPRP SNX
We note today’s update on the distribution agreement (DA) termination notice and the final results. The two new pieces of news, in our view, are that the gross book value of the disputed stock was £4.3m at 31 March 2018 and that Sprue has entered into a £7m revolving credit facility with HSBC and drawn down £3m of this on 29 March 2018. Our forecasts, target price and recommendation will remain under review until the 2017 final results are reported for which, no date has yet been confirmed.
Companies: Sprue Aegis
Hays plc (HAS.L, 182p/£2,639m) Q3 trading update to March 2018 (12.04.18) | Hydrogen Group plc (HYDG.L, 36.5p/£12.2m) Final results to 31 December 2018 (10.04.18) | PageGroup plc (PAGE.L, 537p/£1,755m) Q1 trading update to 31 March 2018 (11.04.18) | Parity Group plc (PTY.L, 11.1p/£11.3m) Final results to 31 December 2018 (10.04.18) | Robert Walters plc (RWA.L, 699p/£528m) Q1 trading update to 31 March 2018 (10.04.18)
Companies: HAS HYDG PAGE PTY RWA
As the table shows there has been a reasonable rally in markets over the last month. An increase in interest rates in May now seems less likely, partly due to the fall in inflation. We have seen continued volatility, with some profit warnings as highlighted by the EY report and M&A activity. As the results marathon continues, the vast majority of results have been as anticipated, with some notable exceptions. In Share News & Views, we comment on APC Technology*, Christie Group, ECSC*, Escape Hunt*, EU Supply*, Norcros, Northbridge* Quarto* Sprue Aegis*, Tricorn Group* and Warpaint London*.
Companies: APC BMS CRPR ECSC ESC EUSP FDM GETB PCF SNX SPRP TCN W7L
Clarkson has warned that it expects current year earnings to be materially below last year’s level and current expectations. Volatility in financial markets and concerns about a possible trade war have supressed activity in shipping asset transactions.
GYG has delivered a robust set of 2017 results, which are marginally ahead of our forecasts reset in November. Strong growth was delivered at all levels, and was primarily organic growth, with 14.7% revenue growth leading to 7.6% growth in adjusted EBITDA as it continues to invest in growth. We are maintaining our forecasts on the back of these results, and are comfortable with our assumptions given the strength of its order book, the growth dynamics of the market and its market leading position within this. We note the shares have been de-rated of late, and believe the FCF yield (>10% from 2018E), post-tax ROCE approaching 30%, dividend yield in excess of 6% and organic revenue growth (>10%) remains highly attractive.
The developer of advanced security and surveillance has today issued a strong AGM statement reporting that Q1 revenues were slightly ahead of management's expectations and almost 15% up on the same period in 2017. Order intake was boosted by £1.5m of radio communication contracts received from the MOD announced in February, although excluding those contracts, order intake was still higher than expected. The majority of the above MOD orders were scheduled for delivery in H1.
Companies: Petards Group
We have argued consistently over the last 12 months, as there is greater confidence in EUSP’s ability to become sustainably profitable, the share price should improve. This had been the case up to September 2017, since when the share price has fallen from 20p to 11.75p. With today’s news confirming EBIT profitability, we believe that there is a strong base to build on beyond 2017. At this stage, we have made no changes to our adj. PBT forecasts for 2018, 2019 and introduce forecasts for 2020. With potential upside to these forecasts we are happy to maintain our DCF-derived target price of 25p and our Buy rating. We view the current share price as an excellent buying opportunity. REA
discoverIE has confirmed trading for the full year to March 2018 has been in line with management expectations reflecting strong growth in year-on-year profitability. This has been supported by sales growth of +15% and rising margins (both gross and operating). We make no changes to our forecasts or target price and reiterate our view that discoverIE is successfully targeting structural growth markets.
Companies: Discoverie Group
We have this morning adjusted our FY18 forecasts for a strong second half with year on year organic growth delivered in all geographic regions. We also factor the recent acquisition Precision Technology Supplies (PTS) which drives a 4.5% earnings upgrade for FY19. The investment case for Trifast is centred upon the key long-term growth drivers that are supporting organic growth trends; the Group benefits from a broad spread of geographies, with 72% of FY18 forecast EBIT generated outside the UK, providing top-line resilience. The Group also has a successful M&A track record with the prospect of further earnings-enhancing acquisitions such as PTS in due course. We believe the medium term growth prospects fully support the current valuation.
The Board have announced a new accounting policy which increases P&L provisioning against procurement revenues to a higher level than the previously announced 20%. This has a material impact on the FY17 and future income statements but does not impact the underlying cash flows or debt position of the company.
Two former AIM companies could be in the FTSE 100 index in the near future following the successful bids by Melrose Industries for GKN and GVC for Ladbrokes Coral. Melrose has been on the brink of the FTSE 100 for a while and if a constituent company of the FTSE 100 is acquired than it can be replaced by the acquirer when it is eligible. Melrose is already on the reserve list for inclusion in the FTSE 100, following the March 2018 quarterly review.
Companies: PTSG JDG TRCS SRB TAP KETL
This month’s feature article is the first publication of the 2017 global pharmaceutical industry statistics from which the global and US rankings of the top 15 drug companies are derived. Comparisons are made with historical data to show how different company strategies have evolved. In addition, an analysis of the evolution of biopharmaceuical drugs has been made, together with a key sub-set, namely drugs derived from antibody technology, which now represent 12% of the entire market. Two more drugs joined the $100bn club in 2017.
Companies: OPM ABZA AVO AGY APH ARBB AVCT BNO BUR CMH CLIG COS DNL EVG GTLY GDR INL KOOV MCL MUR NSF OBT OXB NIPT PHP RE/ REDX SCLP SCE SIXH TRX TON VAL