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Q3/20 EBITDA of NOK 28m vs. Factset consensus of NOK 13m ITS sales down 65% Y/Y hurt by high auto manufacturer inventories Oceans sales up 64% Y/Y driven by strong demand for product portfolio Board announced DPS of NOK 0.30 to be distributed in November 2020
Companies: Norbit ASA
Arctic Securities
Reported Q2/20 EBITDA of NOK 30m vs. consensus NOK 17m Surprisingly strong top line of NOK 155m, up 2% Q/Q Decline in SG&A demonstrates the flexibility within ITS EPS of NOK 0.20 implies run-rate P/E of <20x despite Covid-19
We expect NORBIT to report Q2/20 EBITDA of NOK 20m, 49% above latest Factset consensus of NOK 13m. We estimate Y/Y revenue growth of -16%, as all three business segments are negatively impacted by the ongoing Covid-19 outbreak. However, we expect Oceans to show a positive development Q/Q as business activity in Asia is starting to recover. We expect Q2/20 to mark the bottom of the current business cycle for ITS, as we expect truck sales to pick up in H2/20.
While Norbit Q1/20 results were below expectations, it did not come as a surprise that sales are being hurt by Covid-19 related uncertainty across markets. Despite a temporary decline in sales, the company continues to invest in its product portfolio and distribution network. While this will have a negative impact on profits in H1/20, we expect growth and profitability to return in H2/20 as the global economy gradually recovers from the current lockdown.
Reported Q1/20 EBITDA of NOK 16m, 50% below latest Factset consensus Negative deviation explained by negative organic growth of 4% Y/Y We expect 2020 estimates to come down following Q1/20 report Share price down 20% YTD already reflects uncertain outlook
NORBIT reported Q4/19 EBITDA of NOK 40m, 2% above latest Factset consensus of NOK 39m. The Board declared a 2019 DPS of NOK 0.6, corresponding to a payout ratio of around 40%. While the company intends to continue investing in future growth, we expect the strong balance sheet combined with positive cash flow to support continued DPS growth in 2020-2022. We reiterate our Buy recommendation with a target price of NOK 30 per share.
Q4/19 EBITDA of NOK 40m vs. latest Factset consensus of NOK 39m 2019 DPS of NOK 0.6m well above consensus of NOK 0.3 Q4/19 sales of NOK 186m 21% above consensus of NOK 154m Total revenue growth of 21% Y/Y driven by Oceans sales up 60% Q/Q
NORBIT’s solid profitability and strong cash flow generation separates it from most other fast growing small caps. Supported by our estimated net interest bearing debt of NOK 7m, we expect the Board to declare the company’s first dividend since the Q2/19 IPO. We estimate a 2019 DPS of NOK 0.60, corresponding to a payout ratio of ~40%. Based on latest close, this corresponds to a dividend yield of 3.4%. We reiterate our Buy recommendation with a TP of NOK 30.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Norbit ASA. We currently have 18 research reports from 1 professional analysts.
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth
Companies: Strix Group PLC
Zeus Capital
Companies: Yu Group PLC
Liberum
Companies: FOG PEB KBT EMR TIME GETB JNEO
Cavendish
Cohort announces that its subsidiary SEA (Systems Engineering and Assessment Ltd.) has been awarded a major contract by the UK’s Ministry of Defence to provide Electronic Warfare Counter Measures (Increment 1a) (EWCM 1a) to the Royal Navy with a total value of at least £135m. This includes provision and support of SEA’s Trainable Decoy Launcher System, Ancilia. At the FY 24 interim results Cohort had commented on an overall “increased tempo” of order intake. The Group reported a closing order b
Companies: Cohort plc
Equity Development
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
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik
Companies: Luceco PLC
Quadrise continues to advance towards commercial revenues for its innovative fuel and biofuel technologies, with each of its projects approaching key milestones in 2024. Preparatory steps for the MSC Shipmanagement (MSC) fuel trials are now complete and fuel supply agreements are nearing finalisation. Quadrise will achieve its first licensing revenues on the successful completion of Valkor’s project financing (timing uncertain). Quadrise also successfully concluded its Morocco trial, paving the
Companies: Quadrise PLC
Edison
Companies: FOG TND BVXP ACC HDD
Companies: Flowtech Fluidpower plc
Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base, total revenue increased an impressive 20.2% to £136.1m (organic +15%), with adj. PBT +7.5% to £31.7m (FY2022: £28.3m), 3.1% ahead of our estimate of £30.5m. Fully diluted (FD) adjusted EPS increased a more muted 2.6% (impacted by anticipated tax headwinds) to 368.5p (basic adj EPS 374.5p), 3.4% ahead of
Companies: Judges Scientific plc
WHIreland
Companies: Michelmersh Brick Holdings PLC
Canaccord Genuity
Companies: BILN IGP RBN SBTX
Gelion has reported in line H1 FY24 results that demonstrate continued strong cash management and steady progress in its pursuit of next generation lithium-sulphur battery technologies. Encouraging early test results justify last year’s IP acquisitions and validate Gelion’s Li-S battery technology plan, with additional progress expected to be reported in H2 alongside its pursuit of a strategic partner for its planned Advanced Commercial Prototyping Centre (ACPC) facility in Australia. There is a
Companies: Gelion PLC
Forterra’s FY23 (to 31 December) earnings were slightly higher than guidance, which was raised in January, with resilient pricing partly offsetting a steep fall in demand among its main end users, large housebuilders. Our estimates are broadly unchanged, other than reflecting a more conservative stance on the final dividend. Despite a cautious tone in the outlook statement, we believe the largest housebuilders may now rebound more strongly than smaller peers.
Companies: Forterra Plc
Progressive Equity Research
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