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Market trends in Q423 were like Q323, with Kendrion’s Industrial segment under pressure and Automotive in recovery due to higher pricing and new projects. On 7% y-o-y lower revenues, EBITDA was down 14%, slightly below our expectations. Kendrion is now more confident in realising its FY25 targets (revenue of around €636m and EBITDA margin of 15%) as it has more visibility on the ramp up of new projects, while being bullish about its pipeline, based on electrification and clean energy trends. We
Companies: Kendrion N.V.
Edison
Kendrion’s segments showed opposite trends in Q323 with Industrial Brakes hard hit by weaker economies in Germany and China and Automotive still in recovery mode with continued high single-digit organic revenue growth. On 6% lower group revenues EBITDA declined 12% with a 70bp lower margin at 10.5%. Kendrion expects the challenging market conditions to continue in Q423 and H124 and has taken measures to protect its profitability. We have lowered our revenue estimates for FY23–25 by 5–8% and EBIT
Kendrion’s Q223 organic revenue growth of 9% was better than the 5% in Q1 despite the slowdown in economic activity in several regions. Gross margin remained under pressure due to cost increases. EBITDA increased slightly year-on-year in Q2 after a decline in Q1, as cost savings offset wage inflation. Despite the short-term uncertainties, Kendrion is positive about its orderbook, which is driven by electrification and clean energy trends. On lower margin estimates, the average of our valuation m
Kendrion’s Q123 results were mixed with good revenue growth of 5% but an unexpected decline in EBITDA of 7%. Gross margin was under pressure due to Kendrion passing on material price inflation at no margin and lower direct engineering revenues in Automotive. We have adjusted our estimates only slightly downward as the positive energy transition trend is still intact. Our estimates for FY23–25 reflect a revenue CAGR of 7%, an EBITDA CAGR of 18% and a normalised EPS CAGR of 27%. The unweighted ave
Kendrion performed well in FY22 despite the difficult market conditions, such as delayed deliveries of raw materials, inflationary pressures and volatile demand. Organic revenue growth was 8% but margins were lower due to higher input prices and engineering costs. The energy transition will drive growth and higher margins at Kendrion over the next few years, bringing it close to its 2025 financial targets (average organic revenue growth of 5% and an EBITDA margin of >15%). The unweighted average
Kendrion’s Q322 results showed a relatively good performance under difficult market conditions, with continued pressure from a shortage of materials, volatile demand and inflation. Revenues in the quarter were stronger than we expected; the Industrial division remained the top performer, with revenues up 27% y-o-y, while the Automotive division returned to growth with an 8% top-line increase. Kendrion expects the current difficult environment to continue for the rest of the year and into 2023 bu
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At its capital markets day (CMD) on 8 September, Kendrion reiterated its financial targets for 2025 (originally set in September 2020) and confirmed its strategic direction. The Industrial division is continuing strong growth in revenues and profitability (despite market challenges), while Automotive still is affected by supply chain constraints, inflation and volatile demand. The long-term growth outlook for Kendrion remains strong, based on the favourable trends of electrification and green en
Kendrion’s H122 results were affected by the challenging market conditions, such as supply chain constraints, volatile demand, inflation and lockdowns in China. The Industrial division is performing very well by showing ongoing revenue growth and higher margins, but the Automotive division is facing declining car production and demand volatility. The short-term outlook remains uncertain, but the long-term growth potential is still based on favourable trends such as green energy and electrificati
Kendrion’s revenue growth of 13% in Q1 was better than we expected, despite increased uncertainty in its markets. Industrial remains the star performer (revenues +28%), benefiting from the accelerating transition to clean energy and electrification. Automotive faced declining car production in Europe but managed to limit the revenue decline to 1%. The EBITDA margin was below last year’s level due to higher raw material prices and volatile demand. Kendrion’s long-term outlook remains positive, wi
Despite the ongoing effects of the pandemic, supply chain constraints and volatile demand, Kendrion showed continued good revenue momentum in Q421 with organic revenue growth of 9%. Margins were lower due to supply chain issues, higher raw materials prices and a strong comparison base, but underlying trends such as electrification and energy transition continue to support strong growth. The unweighted average of our three valuation methods points to a fair value of €26.6 per share.
Kendrion’s Q3 results showed better than expected revenues but also reflected the impact of global supply chain constraints and volatile order patterns on profitability. However, the company has managed to limit the effect of these challenging market conditions to a decline in EBITDA margin of 60bp y-o-y, resulting in a margin of 11.0%. The long-term growth outlook remains intact, with Kendrion benefitting from trends such as electrification and the shift to renewable energy.
Kendrion is a global player in high-quality electromagnetic systems that optimise safety, performance and comfort in automotive and industrial applications. Kendrion expects current positive economic activity levels to continue, but management is cautious about the impact of supply chain constraints and volatile order patterns. Underlying trends such as autonomous driving, electrification and industrial automation continue to support underlying growth.
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Ceres Power Holdings’ innovative technology uses electrolysis to produce green hydrogen and solid oxide fuel cells to generate power. In a year where it moved to the Main Market of the London Stock Exchange, it recorded revenue growth of 13% and gross margin expansion to 61% (the highest in the sector, according to management), but is yet to record an operating profit (FY23 operating loss of £59.4m versus £54.0m in FY22). Ceres continued its strategy to drive innovation and technology across sol
Companies: Ceres Power Holdings plc
Watkin Jones’s guidance for FY24E is unchanged in its trading update for the first half to 31 March. We maintain our forecasts for the full year and introduce half-year estimates, in line with reiterated guidance that performance will be significantly H2 weighted. The group confirms a continuing gradual recovery in appetite among institutional investors to forward fund its build-to-rent (BTR) and student developments. We believe this should gather pace as the direction of interest rates becomes
Companies: Watkin Jones Plc
Progressive Equity Research
Banquet Buffet*** Abingdon Health 9.25p £11.3m (ABDX.L) The lateral flow contract development and manufacturing organisation announces its unaudited interim results for the six months ended 31 December 2023. Revenue increased 117% to £2.4m (H1 2023: £1.1m). The Adjusted EBITDA loss decreased 47% to £1.2m (H1 2023: £2.2m). Furthermore, reduction in operating loss of 50% to £1.2m (H1 2023: £2.4m). The Board therefore expects that H2 2024 revenue will be significantly improved compared with H1 2024
Companies: CPX SLP FA/ FIPP ECR ETP ORCA
Hybridan
AFC has unveiled a groundbreaking modular ammonia cracker system demonstrating viable and scaleable production of hydrogen in the UK using this method. The cracker system is designed to deliver 140 tonnes of fuel cell grade hydrogen each year. Hydrogen from the plant will initially be targeted for sale into AFC’s UK H-Power Generator deployments, including those with Speedy Hydrogen Solutions. Along with the recent purchase of the mobile storage and distribution assets of Octopus Hydrogen, AFC c
Companies: AFC Energy plc
Zeus Capital
Sanderson Design Group (SDG) continues to deliver on its key strategic initiatives and growth drivers despite a challenging global backdrop. The group’s FY23 performance showed flat revenue, with adjusted underlying PBT rising £0.1m to £12.6m. Net cash dropped back to £15.4m, with the total dividend maintained at 3.5p. The star performers were Licensing (reported revenue +25%), the Morris & Co brand (+16%) and the US market (+20%). Our forecast revisions assume more modest sales progression, wit
Companies: Sanderson Design Group PLC
Solid State’s trading update affirms the sustained strength in demand throughout H224, resulting in record FY24 revenue and adjusted PBT ahead of prior consensus of £155m and £12.5m, respectively. This is attributable to the earlier-than-expected delivery of a NATO contract. As a result, consensus FY24 revenue and adjusted PBT estimates have been raised by c 6% and c 20%, with respective FY25 estimates declining commensurately.
Companies: Solid State plc
17th 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: ARS TIDE SCE SNX ECK CNS TST SPEC SSTY
AFC has made strong progress with products and its manufacturing strategy. Despite heavy investment, the cash position, at £27.4m, was slightly better than our estimate for £26.9m, demonstrating good discipline. The monthly cash burn rate (at c. £1.3m) is tracking in-line with our expectations. Generally, we maintain our estimates for significantly increased sales in FY24e and FY25e, with the cash position unchanged. Recent news on commercial progress has been positive. The 30kW H-Power Generato
Gooch has issued a positive update for H1. Trading has started to recover with stocking levels normalising at industrial and medical devices customers. The outlook is positive with growth returning, and management has confirmed our full year estimates (adjusted for the disposal of EM4). The order book and order flow appear healthy, and net debt is comfortable. Gooch clearly still has plenty to do to lift operating margins from a lacklustre 8.1%, but the transformation plan appears to be back on
Companies: Gooch & Housego PLC
We note the regulatory announcement this morning from Surface Transforms and withdraw our estimates and valuation, pending conversations with management.
Companies: Surface Transforms PLC
Surface Transforms has issued new revenue guidance for FY24, with the company now expecting revenues in the range £17.5-22m. We are withdrawing our previous forecasts for FY24 and withdrawing our price target while we review the impact of the new guidance.
Cavendish
Sanderson Design Group (SDG) has reported an 8% increase in interim adjusted PBT, to £6.8m. This was achieved despite a weak backdrop in the home UK market and a 2% decrease in overall group revenue. Increased profitability was driven by strong performances in two of its key and higher-margin strategic growth pillars – Licensing and North America – which grew by 82% and 10%, respectively, on a reported basis. New product launches, including Disney Home x Sanderson, have seen sampling running at
SCE is raising £16m through a placing (and up to a further £3m through open offer) to fund substantial expansion and additional working capital. This will enable the Group to grow to £75m revenue capacity in the near term, commence the build and equipping of a new factory and then (with internally generated free cash flow) scale to £150m revenue capacity and beyond. With a contracted order book of £190m and a prospective pipeline of £400m, this is clearly the time to seize the opportunity. The e
Revolution Beauty is a multi-brand, multi-category, multi-channel, mass beauty innovator with proven global scale. Since launch in 2014, the Group has grown rapidly (FY14 – FY19 CAGR of 99%) generating revenue of £137.5m in the 12m to 31 December 2020. Revolution has an established retail footprint of c.11,000 doors across leading retail chains in the UK, USA and internationally, driving global brand recognition. This is complemented by a fast-growing digital business (+81% in 2020) including it
Companies: Revolution Beauty Group plc
Companies: CML FDEV NRR SSPG RMV AO/ ZIN
Shore Capital
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