Q3: Top-line growth continues as expected

GTT’s impressive revenue growth of 35% was in line with the market’s expectations. As per our previous note, the company confirmed the upper end of the guidance range as deliveries gained pace thanks to accelerated construction activity in the Asian shipyards. The order intake for LNG-powered vessels of 15 is promising for the outlook of this segment as GTT is betting on the potential of LNG as bunker fuel for shipping industry decarbonization.

Q2: Reliable growth, robust visibility

GTT is reaping the benefits of a record number of orders and increased construction activity. H2 revenues jumped by 23% yoy while the order book continued to build. Currently the company has 313 orders in the core business including the LNG carrier orders received in July. The giant order book ensures strong revenue visibility and, with cost discipline remaining intact, this translates into strong margins for GTT in the medium term.

Q1: LNG carrier orders maintain momentum

The healthy order intake momentum in LNG carriers continued in Q1 with 25 new orders. The overall orderbook reached an all-time high with 289 orders, 94.5% of which composed of LNG carriers. FY23 however will see a lower order intake than the record FY22. The decision of the Korean supreme court to reject GTT’s appeal does not pose any material risks as no shipyards have asked the company to separate technical assistance and technology license contracts.

Q4: revenues improve, outlook shines bright like a diamond

Annual revenues were slightly down by 2.4% and annual income shrank by 4.3%. Although the Q4 performance improved, the under-the-weather results of the previous quarters weighed on the annual results. The medium-term outlook, however, offers astonishing prospects with heightened revenue visibility thanks to a record backlog supported by LNG carrier orders. As GTT will continue benefiting from the LNG market environment, so will its investors.

Q3: Revenues down but good prospects with record orders

Due to schedule delays, 9M revenues were down by 7.5% compared to 9M FY21, but Q3 revenues saw an annual increase of 4%. The current momentum in the LNG sector provides valuable support to GTT’s business, as reflected in the excellent order book. 9M LNG carrier orders increased to 134, including 46 in Q3. The orders underpin GTT’s revenues for the 2024 to 2027 delivery period

Q2: delays in yards spoil the record intake

A mixed report as the record order intake should already be priced in and the short-term focus will be on delays in shipbuilding schedules. On Russia, GTT continues to carry out work in progress, but the management confirmed the risk of postponement or cancellation of the contracts.

Q1: strong order intake, Russian projects remain at risk

A record order intake with 34 LNG carriers, as well as 20 units in LNG as fuel. The company continues to honour its contracts for Russian-related projects and will revise its outlook in case of delays/sanctions/cancellations. While this might impact FY22, the outlook remains bright as LNG is set to grow with Europe lowering its dependency on Russian gas.

Q4: strong order book allows for high payout

Good set of figures, above our estimates and consensus. The dividend is set at €3.10 per share, which is in line with our estimate. The outlook guides for a revenue of €290-320m and EBITDA of €140-170m and with a dividend of at least €3.10 per share. All in all, positive news on the dividend but no big surprises vs our estimates (FY22E revenue of €300m, EBITDA of €160m, dividend of €3.00 per share).

Q3: good order intake

Management is repeating the guidance, with revenue declining yoy after the strong 2020 (following a strong order intake), partly offset by a 22% yoy increase in services and the new hydrogen division. The commercial activity has accelerated in the core business this quarter with 22 orders, against 26 in H1, for deliveries in 2023-25.

Q2: commercial activity picks up

The outlook is confirmed. With H1 in the books, the guidance implies around €135m of revenue for H2, which will be an 18% decline vs H1. This seems quite low, but Q2 revenue declined by 12% qoq. Also, revenues expected from the order book stand at €273m. Revenues from services increased by 48% yoy at €8.9m. A similar level of sales in H2 would therefore imply a FY revenue of €290-295m, and in line with the guidance.

Q1: guidance confirmed

The short update is in line with expectations as the company confirms the guidance for 2021. The order intake has been slow in Q1, with two LNG carriers, but is catching up in April with 4 LNGCs and 2 VLECs (ethane carriers).

Q4: expansion impacts margin

The stock was down 10% the day of the release, on a lower outlook yoy. While our estimate for revenue was slightly above the range (€285-315m, against our estimate of €318m), the former (and the market apparently) was clearly too high when looking at the EBITDA (€150-170m, vs €193m), and justified by GTT’s expansion (workforce grew by 22% yoy).

Q3: decent order intake with ice breakers

Positive update with a revenue steady qoq at €102m (€306m for 9m). The group confirmed its guidance on both revenue and EBITDA. To top it off, the release came with an order for 10 ice-breaker LNG carriers. At this run rate, revenue is set to be at the top end of the €375-405m range, which is higher than expectations, as the consensus is factoring in slower construction schedules in Asian shipyards.

Q2: margins continue to improve

Good results from the company, with operations running normally and which absorbed effectively the cost increase from last year. H2 remains uncertain on the order intake, but GTT could surprise with another strong set of numbers.

Q1: confirmed guidance as operations running normally

GTT is processing its strong order book accumulated during 2018/19 and confirmed its FY20 guidance. Nothing stands out in this quarterly update, which is positive considering the precarious environment and the strong dependency on South Korea and China.

Supreme (SUP LN) - Record performance, EBITDA ~doubled

Supreme’s FY24 trading update confirms a record performance in the 12 months to 31 March 2024. Organic revenue and profit growth across all four divisions has driven Group revenue +45% YOY to £225m, with FY24 adj. EBITDA almost doubling to ‘at least £38m’, driving record levels of cash generation. Supreme is actively exploring complementary M&A, supported by a debt free balance sheet. Trading on an undemanding FY25 PE of just 6.7x, with a 3.4% yield, we believe downside risks are more than price

Morning Note – 22 April 2024

Supreme+ (SUP, House Stock at 125p) - Supreme, Supreme!

Morning Note – 25 April 2024

SP Angel Spec Sits: FY Trading Update (LTHM)

Vianet Group: FY24 trading update, strategic contract win

Vianet has published a positive trading update for FY24 with turnover up 7.6% to £15.18m, a 3.5 percentage point increase in gross margin YoY, and adjusted EBITA ahead of market expectations. Net debt continues to fall and closed FY24 at £1.52m (£2.1m at 30 September 2023), demonstrating strong free cash flow generation, even without the benefit of the £0.9m tax receipt received in 1H24, which augers well for a final dividend. The company reported a new contract with Wilcomatic Wash Systems, the

Headlam Group - Strategy for growth in tougher market

Headlam Group has laid out an ambitious long-term revenue target of between £900m and £1bn, as it seeks to grow its share of the UK floor coverings distributor market. Despite a challenging backdrop due to the low level of residential housing transactions, management is seeking to expand each of its sales channels: Trade Counters, Larger Customers, Regional Distribution and Europe & Other. The FY23 results reflected the more challenging environment and the group trades at a discount to its long-

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Vianet - FY24 ahead, strategic forecourt customer win

Vianet’s FY24 trading update shows FY24 revenue +1% ahead of our previous forecast, adjusted EBITA +2% ahead, EFCF and net debt +£0.6m ahead, and a strategic new customer win with prominent forecourt operator Wilcomatic. A robust FY25 pipeline and outlook leads us to reiterate our FY25E forecasts at this point, with the update highlighting: strong progress renewing and winning new customers on 3-5 year contracts as they migrate from 3G to Vianet’s advanced 4G LTE solutions; the successful integr

SP Angel Morning View: Copper prices hit $9,700/t as China smelts concentrates for zero charge Tc/Rc

LIBERUM: Ilika: CMD confirms operational progression

Hybridan Small Cap Feast - 24 April 24

24th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

LIBERUM: Gattaca: Resilient contract performance, perm tough

LIBERUM: Severfield: Erratum: Better EPS and cashflow, and buyback

LIBERUM: CEO Video: Matt Wragg, Gattaca plc: