Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on NEOPOST SA. We currently have 8 research reports from 1 professional analysts.
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Limited organic decrease in Q3 16 is encouraging
02 Dec 16
Neopost reported Q3 16 revenue of €279m (€284m in Q3 15), corresponding to a -2.1% organic decrease yoy. SME Solutions decreased by 3.4% organically, while CSS grew 7.4% yoy. For the first 9M16, the organic decline reached -2.9% yoy. The integration of Icon Systemhaus in the Enterprise Digital Solutions division is going to plan, while organic growth in Enterprise Digital Solutions this quarter was penalised by the high comparison basis (the company recorded a licence sale of c. €2m in Q3 15). Excluding Icon Systemhaus, Enterprise Digital Solutions is growing in double-digits. The Neopost Shipping division reported growth of more than 10% this quarter. In SME Solutions, Neopost continued the roll-out of digital and shipping solutions to offset the decline in sales of Mail Solutions. This roll-out is coupled with a plan to lower costs by more than €50m by 2018 in this division. The restructuring costs will represent €10-15m per year for the next two financial years.
Not as bad as it looks
29 Sep 16
Neopost reported H1 16 results below market expectations. H1 16 revenue reached €557m, a 5% reported decrease but -3.3% organically (-3.8% in Q2 16), including a 4.8% decline for mailing (-5.6% in Q2 16) and +8.8% in CSS (+10.4% in Q2 16). The operating profit was €100m, corresponding to an 18.0% margin. For the CSS division, the current operating margin was 4.6% (versus 7.2% in H1 15), while the mailing division stabilised at 21.0% versus 21.4% last year. Leasing portfolio and other financing services receivables amounted to €780m, down from €802m at the end of H1 15, a decrease of 0.7% at constant exchange rates. The group’s net attributable income came in at €58m, corresponding to a net margin of 10.5%, compared with 11.0% last year. The EPS was €1.56, down 18% from €1.85 in the previous year. The company confirmed its mid-term target which consists of a return to organic growth coupled with an operating margin above 18%.
No major change in business trend
02 Jun 16
Neopost reported Q1 revenue of €273m, down 4.7% yoy. Given a negative currency impact of 2.2% and a positive scope effect of 0.3%, organic growth was -2.8%. Organically, the Communication and Shipping solutions increased by 9.7% but restated for the scope effect of the consolidation of Temando, organic growth in sales for CSS stood at 7.0%. Within the SME solutions (ex. NIO), of which revenue decreased by 4% yoy, sales of Mail Solutions were down 5.0% at CER, reflecting a contrasting situation for equipment sales as business remained resilient in North America, but there was a marked downturn in Europe and in the ROW. Neopost confirmed it intends to maintain a current operating margin, before acquisition-related expenses, at above 18% throughout the period of transformation, and return to above 20% (before acquisition-related expenses) in the medium term. This target will be achieved by optimising its organisation, reducing costs and continuing to improve the operating margins of its Enterprise Digital Solutions and Neopost Shipping divisions.
FY15 results in line, but no EPS turnaround short term
30 Mar 16
Main facts: Revenue at €1,190m up 6.9% and down 1.8% organically, including a 5.3% organic decline for Mail Solutions and +11.4% organic increase for Communication and Shipping Solutions. In Q4, revenue came in at €321m, a +2% yoy growth but -3.5% organically. The current operating result reached €234m (vs €245m in 2014) and corresponding to a 19.7% margin (vs 22% last year). The net income was unchanged at €134m and corresponding to a €3.72 per share (vs €3.89 last year). The dividend proposed is €1.70, in line with expectations. Neopost confirmed its mid-term target to maintain the operating margin at above 18% with the target of returning to over 20%, and a return to organic growth. The company did not disclose any short-term guidance for 2016.
Another bleak quarter
02 Dec 15
Neopost reported Q3 15 revenues of €283.6m, slightly below market expectations (€290m), and corresponding to +5.6% yoy growth and -1.1% organic change including -4.1% for mailing solutions and +9.9% for Communication and shipping solutions. The company made an early repayment on its German private placements (Schuldschein) and one of its French private placements, for the respective amounts of €67m and €50m to optimise its financing conditions. Revenue guidance for FY15 is updated at the lower end of the prior range with organic growth at about -1% instead of between -1% and +1% and confirmation of the operating margin (before acquisition-related expense) at a minimum level of 19.5% (vs between 19.5% and 20.5%). The dividend of €1.70 per year is confirmed and an interim dividend of €0.8 will be paid in cash on 9 February (dividend ex-date is 5 February 2016).
Management looks confident of the transformation story
15 Oct 15
During a Paris road show with the company, following its H1 15 results and the change in dividend policy, we had the opportunity to discuss several issues with the CFO. The company's increasing focus on its transformation towards solution & software resulted in a sharp cut in the dividend (from €3.90 to €1.70), a margin erosion in H1 15 due to R&D investment, acquisition costs and lower margins from the companies acquired. However, the normative growth of the new businesses acquired is around 15% per year which should continue at least for the next three years. The stock is now under strong pressure, as investors look worried by the transformation and the dividend cut.
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
Panmure Morning Note 18-01-2017
18 Jan 17
Blancco technology, a leading provider of data erasure solutions and mobile device diagnostics, has announced that its underlying profits are ahead of expectations. Organic sales growth remains strong, the group continues to win larger ticket orders and the mobile diagnostics is performing ahead of plan. Consequently, we are raising our FY17 PBT forecast from £8.0m to £8.3m.
N+1 Singer - NCC Group - Interims confirm underlying business sound
19 Jan 17
NCC’s interim results were largely flagged in the detailed trading update released in December. Group revenue increased 35% to £125.8 (organic growth +18%) and adj. EBITDA grew 15% to £21.3m. The group’s issues relating to contract losses/deferrals in the period were previously announced and are already included in our forecasts. The group has maintained its interim dividend at 1.5p, which we believe is an indication of the strong underlying business. Separately, NCC has announced that Paul Mitchell intends to step down as chairman in May ’17. We continue to believe that NCC remains a highly attractive asset in an area seeing strong structural growth and see the current share price weakness as an opportunity. We retain our Buy recommendation and 233p target price.
N+1 Singer - dotDigital Group - Trading update
17 Jan 17
dotDigital issued a trading update for the six months ended 31 December 2016, indicating revenue growth up 17% y-o-y to £15.0m with EBITDA in line with market expectations and on track for the full year. Cash has grown to £18.9m. Revenue was slightly light of expectations owing to a slower start in the US but Q2 already showed improvement with a strong pipeline building. Our EBITDA and EPS forecasts are unchanged but revenues trimmed by 4% for both years. There is much activity in broadening avenues of growth in terms of new connectors, partnerships and geographical footprint and we remain positive of its prospects. Interim results will be released on Feb 21.