Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on LAGARDERE SCA. We currently have 6 research reports from 1 professional analysts.
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FY16e recurring EBIT guidance raised
10 Feb 17
Lagardère reported Q4 revenues of €1,984m, down 2.9% and up 2.4% on an organic basis (supported by Travel Retail at +7.2%, i.e. validating its current strategy in this segment, and Sports at +11.6%, thanks to a favourable calendar effect in Asia and Africa, offsetting a soft Publishing: -1.4%). A satisfactory end to the year, even if slowing down, as expected and guided for by management, after the strong +6.1% of the last Q3 and +2.5% for the 9 months period, due to an unfavourable basis of comparison for Publishing (Q4 15 organic performance was +9.2%) and a poor market environment for Active (magazines’ contraction and poor advertising for radio activities. For FY 16, consolidated revenues reached €7,391m, up 2.7% and +2.5% on an organic basis (Travel Retail at +7.1%, Publishing at +2.5%, Sports at +1.5%). This is slightly lower than AV’s figures of €7,448m despite higher organic growth (+2.7% compared to our +2.3%) and due to some higher forex and disposals’ impact than we had anticipated. As a positive, the group, which only reported its sales figures, is revising upward its FY16 guidance for recurring EBIT to be up by 13% instead of “slightly above 10%” compared to FY15 at CER and excluding any impact from disposals in the Distribution activities.
So far so good
10 Nov 16
Lagardère has reported Q3 revenues of €1,976m, positively up 6.1% on an organic basis (+7% on a reported basis after +2.7% coming from perimeter impact and -1.4% from forex). The 9 months total revenues were up by 5% to €5,407m (+€257m), of which +2.5% organically. The group reiterated its FY16 guidance for recurring EBIT to be slightly above 10% compared to FY15 at CER excluding any impact from the Distribution activities’ disposals.
Still confident in its FY16 guidance
23 Sep 16
As usual, Lagardère’s H1 16 results were mixed, reflecting its conglomerate profile and various business models. Consolidated revenues were up €127m to €3,431m, i.e. +3.8% on a reported basis helped by a +4.6% perimeter impact (c.60% coming from the sole Travel Retail division). The organic trend, which appeared disappointing at first sight (only +0.5%), reflected an unfavourable calendar impact in sporting events (two major football championships held in H1 15). Excluding the latter, the like-for-like top-line growth would have been +2.4%, which we consider as a rather satisfactory performance with the tough environment weighing on the group’s growth engine (Travel Retail). As expected, and due to the calendar effect in sports (-€27m impact), the group’s recurring EBIT was down from €122m to €101m, i.e. a margin decrease of 80bp to 2.9%. Lagardère, nonetheless, reiterated its FY16 guidance for a recurring EBIT growth target “slightly above 10%” (at CER and excluding any impact from any disposal of the Distribution activities), considering an encouraging outlook for H2 16e and as the Sports calendar’s adverse impact is expected to be fully reversed. The H1 16 FCF generation was also reassuring at €47m compared to -€84m a year earlier.
Good start to the year and reiterated guidance
12 May 16
Lagardère reported Q1 16 consolidated revenues down 2% on an organic basis and +0.9% on a reported basis at €1,586m (+€14m). The latter benefited from a 3.4% net positive impact from acquisitions. Positively, the group confirmed its FY16e guidance for recurring EBIT growth “slightly above 10%” (at CER and excluding any impact from any disposal of the Distribution activities).
Full-year 2015 results overshadowed by Dominique D'Hinnin's departure...
14 Mar 16
Lagardère, which had reported in February €7,193m consolidated revenues, up 0.3% on a reported basis and +3% organic, published a FY15 recurring EBIT of €378m (+10.5% or +€36m mainly driven by Sports: +€16m and Active: +€6m), in line with our expectations and reflecting a 5.3% margin compared with 4.8% a year earlier. Adjusted net profit reached €240m (AV: €234m) and satisfactorily reported cash flow from operations at €627m up €273m from FY14. The proposed dividend per share is unchanged at €1.30. The group is cautiously guiding for a FY16e recurring EBIT growth slightly above 10% (at CER and excluding the disposal of the Distribution activities).
Mixed H1 results offset by improved guidance
11 Aug 15
This time supported by continued growth in Travel Retail and a favourable calendar effect in Sports (i.e. the African Cup and the Asian Cup), Lagardère H1 15 revenues rose by 2.9% organically (-1.8% reported to €3,304m, after a negative perimeter impact of €277m and a positive €130m forex). Q2 organic growth reached only +0.4%, the only positive trend coming from the strategic Travel Retail business (+3.7%). Although the Sports division saw its margin boosted from 3.3% to 12.4%, it was insufficient, regarding the small size of the business (only c.8% of group sales), to offset the decline in profitability from the other activities. On the whole, the group's operating margin therefore only slightly improved (+40bp to 3.7%). Positively, Lagardère nonetheless raised its FY15e recurring EBIT growth from +5% to +7%, at CER and excluding the potential disposal of the LS Distribution business (a negative €15m impact so far).
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
10 Mar 17
We have run our new quantitative Slide Rule over the Support Services sector. Of the c.500 stocks we have ranked on a Quality, Value, Growth and Momentum basis in the small to mid-cap space, 21 Support Services stocks appear in the top 100. Fulcrum leads the pack, ranked no. 6 out of 500 (and not coincidentally our top pick for the year), closely followed by Brainjuicer (no.7), Sanne (no.8), Learning Technologies (no. 12) and Next Fifteen (no.16). These stocks have high ROCE on both an EBIT and cash basis, strong growth prospects, earnings and share price momentum and valuations that, in this context, remain attractive. At the other end of the spectrum, HSS, Management Consulting, Serco, Mitie and Lakehouse appear towards the bottom of the rankings. Strong returns could, of course, be made if any of these turn their fortunes around, and management has been changed at Lakehouse, Serco and Mitie.
Small Cap Breakfast
23 Mar 17
K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march.
21 Mar 17
NAHL has a track record of being highly innovative around changes in regulation and we believe the changing personal injury landscape presents an opportunity to build market share. The recent strategy statement provides forecast benchmarks to base long term investment decisions. Whilst the shares are up 21% over the last month, valuations remain very modest with a FY17 PE of just 6.5x and a dividend yield of 10.4%. We believe the shares are meaningfully oversold and expect a recovery bounce to over 200p short term.
6% dividend yield for a growth stock?
16 Mar 17
4imprint’s proven operating model continues to steadily gain market share from a low base. Capital requirements are low, acquisitions unlikely, pension risk significantly reduced and, hence, future cash flow is likely to be returned to shareholders. We expect the current $22m net cash balance to be retained, providing a cushion against any macro downturns, and dividend growth to continue to match EPS, supplemented by special dividends when net cash builds (possibly every other year). As such, the free cash flow yield, 5.1% in FY2018E 5.8% in FY 2019E, is a proxy for the dividend yield, highly attractive in our view for a proven growth stock.