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EdenRed’s Q3 FY23 trading update was slightly ahead of the street and our expectations. Operating revenue saw robust growth backed by double-digit progressions across all the regions. Consequently, the management tightened the full year EBITDA guidance to the upper half of the €1.02-1.09bn range. Nevertheless, the share price remained under pressure (-4.47% at the time of writing) due to the uncertainty regarding the regulatory environment in France. We will slightly increase our estimates, but
Companies: Edenred (EDEN:EPA)Edenred SA (EDEN:PAR)
AlphaValue
EdenRed’s share price came under pressure yesterday (closed -11%), after the French Small and Medium Enterprise (SME) minister announced the possibility of capping the commission paid by restaurants to meal voucher providers. While it is not a good news for EdenRed, which sources c.16% of its revenue from France, the share price reaction could be overdone as the cap represents a low-mid single-digit headwind to the group’s top line. We retain our cautious stance.
EdenRed reported H1 2023 results slightly ahead of the consensus and our estimates on sales and profitability. H1 operating revenue increased by 20% on a LFL basis, while other revenue doubled on the back of higher interest rates. However, the unimpressive EBITDA guidance, coupled with higher interest expenses in H2 given the increase in debt to fund the Reward Gateway acquisition, has weighed on investor sentiment (share price down -2.26% at the time of writing). We maintain our cautious view o
EdenRed announced the acquisition of Reward Gateway, a leading employee engagement platform provider, for £1.15bn (or €1.3bn). The deal is in line with the management’s Beyond Food strategy, and is expected to enhance the group’s employee engagement solutions portfolio, while also providing access to new geographies. It is an all cash deal and, hence, is EPS accretive from 2024. Overall, a positive development from a strategy perceptive.
EdenRed reported better-than-expected Q1 2023 sales figures. Operating revenue continued to benefit from the increased face value of vouchers underpinned by the inflationary environment, while higher interest led to a tripling of revenue earned on the invested float. The decrease in fuel prices however impacted the Fleet & Mobility segment. The management reiterated the targets for FY23. We will increase our estimates but are likely to maintain our cautious stance on the stock.
Edenred ended FY22 with a strong operational performance, but weak net income due to higher financial expenses. For FY23, management confirmed the strategic targets, which are largely in line with consensus. No wonder the share price reaction remained muted (+0.7% at the time of writing). We will increase our estimates to incorporate the strong FY22 results, but are likely to maintain our cautious view on the stock.
EdenRed reported Q3 FY22 revenue ahead of the street and our own expectations. Operating revenue increased 19.1% yoy on lfl basis, underpinned by strong momentum across businesses and geographies. The group continues to benefit from favorable economic conditions wherein inflation and increased interest rates continue to drive growth in employee benefit solutions and other revenue, respectively. We will revise upwards our estimates, but retain our cautious stock recommendation.
EdenRed reported a strong H1 22 performance, delivering a headline beat on Q2 and H1 22 figures. Lfl revenue growth benefited from inflation tailwinds and expansion in market share underpinned by digital offerings. The H1 profitability margin improved with management raising the EBITDA growth guidance. We will increase our estimates slightly but remain cautious on the stock.
EdenRed announced better-than-expected Q1 results with total revenue coming in slightly ahead of the street expectations. LFL sales increased 15.3% yoy, ahead of the 12.45% consensus estimate, as the group benefitted from a favorable macroeconomic environment with inflation and increasing fuel prices along with continued adoption of its new and existing products. Overall, a strong update. We have revised our estimates slightly upwards, but retain our cautious stock recommendation.
Edenred’s FY21 sales and net profit were in line with consensus and our expectations. However, the FCF was a beat, driven by a strong Q4 performance that led to an increase in the float, despite the higher use of benefits by employees in 2021 vs 2020. The EBITDA margin returned to the pre-pandemic level, prompting management to reiterate its objectives set in the “Next Frontier” 2019-22 plan. Overall, the results were strong and we maintain our positive stance on the stock.
Edenred reported its Q3 FY2021 sales update, slightly ahead of market expectations. Operating revenue grew c.13% yoy underpinned by a recovery in business activity, and the rollout of new and existing solutions. Backed by the strong sales performance in 9M FY2021 to date, management upgraded its EBITDA guidance for the year. Overall, a strong update. We will revise upwards our estimates and target price, but retain our cautious stock recommendation.
Edenred delivered a beat on Q2 and H1 FY2021 headline figures. Lfl revenue benefited from the accelerated consumption of accumulated card balances and the expansion of new / existing solutions — further aided by soft comps. The H1 profitability margin improved with management also raising the EBITDA FY2021 outlook to >9% lfl growth; however, the stock came under pressure today as investors seem to have balked at the conservative guidance. We will raise our estimates with our investment case curr
Edenred announced better-than-expected Q1 results with total revenue coming in slightly ahead of the street expectations. The group continued to build on the recovery seen in the second half of last year with lfl sales of 3.6% yoy in Q1 FY2021, registering positive top-line contributions from across businesses and geographies. While the pandemic-induced uncertainties persist, we expect Edenred to benefit from soft comparables in Q2 and a better operating environment in H2.
Edenred continued to recover across the businesses through FY20, despite a re-introduction of lockdown measures in some geographies. The EBITDA margin improved thanks in part to the implementation of cost-saving measures. Management raised the dividend by c.7% for the year. However, the stock price slumped >4% at the time of writing as investors balked at the conservative EBITDA guidance for FY21. We will revise our profitability estimates downwards and maintain a bearish stance on the stock’s v
Research Tree provides access to ongoing research coverage, media content and regulatory news on Edenred. We currently have 35 research reports from 4 professional analysts.
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
Companies: Supreme PLC
Zeus Capital
Companies: FOG PHC FEN BBSN ELIX
Cavendish
Shore Capital
Companies: MPE TRI VNET BVXP HVO
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
Companies: Vianet Group plc
Capital Access Group
Companies: James Latham Plc
SP Angel
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
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-
Companies: Headlam Group plc
Edison
Renewi’s FY24 trading update was in line with management’s expectations and its improved cash generation is reassuring for investors. Attention is now likely to turn the strategic review of the UK Municipals with management stating that they remain on track to update markets by the end of June. This could lead to an exit of key liabilities and leave Renewi as an attractive circular economy investment with strong market positions and organic growth plans, which should assist in generating value,
Companies: Renewi Plc
Norcros has announced the sale of its Johnson Tiles UK business to the current management team for a consideration of £1.0m, with a further modest earnout based on the equity value of the business, both payable in April 2028.
Companies: Norcros plc
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
Companies: AEIT ROOF DGI9 INPP GSF SEIT USFP HICL ORIT BSIF TRIG NESF SEQI HEIT GRP GCP FSFL 3IN AERI PINT RNEW BBGI GSEO DORE TENT GRID CORD HGEN AEET
Hardman & Co
Companies: CLA STM GLN FXPO KAV GWMO CEY BHP THX EEE
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
Companies: FTC AGL SRT SOU G4M AOM SUP
Hybridan
Companies: Ilika plc
Liberum
Companies: Gattaca plc
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