IBU-tec - Termination of coverage

Edison Investment Research is terminating coverage on: • 2G Energy (2GB) • Apontis Pharma (APPH) • Artec technologies (A6T) • Beta Systems (BSSA) • Blue Cap (B7E) • Cyan (CYR) • Consus Real Estate (CC1) • Daldrup & Soehne (4DS) • DATAGROUP (D6H) • Datron (DAR) • Delignit (DLX) • Deutsche Börse (DB1) • Deutsche Grundstücksauktionen (DGR) • Deutsche Rohstoff (DR0) • DVS Technology (DIS) • Edel (EDL) • Ernst Russ (HXCK) • Exasol (EXL) • expert.ai (EXAI/EXSY) • Fashionette (FSNT) • Formycon (FYB)

IBU-tec - Greentech to drive future growth

Management’s stated expectation of a recovery in FY21 appears justified as sales jumped 40% year-on-year in H121 and the group returned to profit at EBITDA level. Management predicts further improvement in H221, supported by the launch of the group’s own battery materials for electric vehicles (EVs). Management expects demand for battery materials, together with coatings that extend the number of times glass bottles can be reused and service revenues from recycling battery materials to raise tur

IBU-tec - Tapping into greentech trends

IBU-tec’s revenues were lower during FY20 because of a fire at BNT and reduced demand because of the coronavirus pandemic, but insurance payouts helped keep EBITDA stable. Management expects a return to growth in FY21, driven by the launch of its own battery materials for electric vehicles (EVs) in H221. It has outlined its strategy to deliver revenues of €80–100m or more by 2025, based on demand for battery materials, coatings which extend the number of times glass bottles can be reused and rec

IBU-tec - Preparing for future after the coronavirus

IBU-tec is continuing its programme to reduce dependence on individual customers and market segments and to improve the profitability of BNT Chemicals, which was acquired in June 2018. It is expanding the group’s presence in markets with long-term growth potential. These include a range of materials used in electric vehicle batteries and organotin compounds used in the synthesis of drugs to treat hypertension and the manufacture of coatings for glass packaging.

IBU-tec - Battery materials to support recovery

IBU-tec is expanding its share in the greentech, electromobility, energy storage and life science sectors, all of which are likely to show strong growth in future. In the short term however, management expects weaker demand from some customers, the effects of coronavirus and a fire affecting some of the reactors at BNT will result in FY20 sales being in the lower double-digit percentage range below FY19’s level.

IBU-tec - Battery materials driving growth

IBU-tec is benefiting from rising demand for battery materials to meet the volumes required as transportation moves to electric vehicles (EVs) and battery energy storage systems are deployed to address the variable power output from renewable energy sources. Engagement with a major battery manufacturer in the Far East represents an opportunity to increase its output of battery materials by an order of magnitude. We note that IBU-tec’s fortunes are not tied to any one battery technology or suppli

IBU-tec - Return to growth

FY18 was successful for IBU-tec on several fronts. Organic revenues rose by 13% to a record high, reversing the decline in FY17. There was strong growth in demand for battery materials and chemicals catalysts following the programme instigated in H217 to reduce dependence on sales of materials for automotive catalysts. Including BNT Chemicals (BNT), acquired in June 2018, revenues almost trebled, while EBITDA increased by 60%. Management expects growth to continue in FY19, supported by the first

IBU-tec - A new dimension

H118 was successful for IBU-tec on several fronts. Revenues were back to almost H117 levels, as strong growth in demand for battery materials offset continued weakness in demand for materials used in automotive catalytic converters. Management achieved the objective set out at the IPO of purchasing a new site in Bitterfeld where more complex and hazardous materials can be processed in volume. It also purchased BNT Chemicals, more than doubling the revenues and adding complementary chemistries.

IBU-tec - Transformative acquisition

IBU-tec has completed the acquisition of speciality chemicals company BNT Chemicals in a transformative deal that substantially expands the type of chemical treatments deployed, the markets served and the customer-base. Management estimates this will more than double annualised revenues and be immediately earnings enhancing with the potential to substantially improve BNT’s profitability in the medium term. The terms of the transaction were not disclosed. The consideration was payable in cash usi

IBU-tec - One door closes, another door opens

Fallout from the Dieselgate scandal included a reduction in demand for the chemicals used in automotive catalytic converters. This adversely affected IBU-tec’s FY17 revenues (down 5%) and pre-tax profits (down 55%). Conversely, the environmental agenda is driving demand for electric vehicles, battery energy storage systems for use with renewables and catalytic devices for cleaning up factory exhaust gases. Management expects demand for specialist materials used in these applications to support a

EBIT margin ahead of target

IBU-tec beat its EBIT margin target for H117 despite bearing the increased costs associated with a new logistics facility and selective investment in engineering and sales personnel. Sales benefitted from diversification into the fast growing battery energy storage market. Management is pushing ahead to acquire a third site where it can manufacture more complicated materials by 2018 at the latest.

Renold - Strong end to FY24: EPS up 11%. Robust FY25: EPS up 27.6%

The FY24 year-end update is very upbeat signalling trading being materially ahead of expectations, with a better-than-expected profit out turn and stronger cash generation. It continues to strengthen margins through efficiencies and investment in modern equipment. The order book remains close to record levels providing a robust view of future forecasts. In FY24E we upgrade EPS by 11% and in FY25E a significant upgrade of 27.6%. It looks capable of declaring a dividend in FY25 as well as manageme

Billington Holdings - Record result boosts dividend; forecasts upgraded

FY23 results show very strong growth over FY22, driven by strong Structural Steel activity, with results slightly ahead of upgraded profit expectations, while stronger than expected cash flow resulted in an unexpectedly generous dividend of 33p (offering a FY23 yield of 7.0%). The group now has net cash of £22.1m and is debt free and is therefore in a strong position for potential M&A activity. Following the recent £90m of new orders to increase the order book to record levels we conservatively

Morning Note – 15 April 2024

Morning Note – 16 April 2024

Invinity Energy Systems - Update on Strategic Investment

Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.

PROGRESSIVE: Severfield: Targeted acquisition strategy aids growth path

Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.

FY results: strong cash flow

Warns on brine supply costs

SP Angel . Morning View . Copper prices hold higher as China processing fees fall below $0/t amid low feedstock availability

Clean and competitive fertiliser

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

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

Windar Photonics - Major order, successful net £4m fund-raise, target fair value price raised

WPHO's announcement last week of a major new contract award with a North American customer represented an encouraging step forward in building the group's presence in this crucial market for wind power; and has been followed by news of the over-subscribed fund-raise which has strengthened the company's balance sheet to the tune of £4m net (£4.4m gross). The company is a pioneer in the field of wind turbine optimisation and continues to grow through innovation based on its unique IP. Following th

Norcros - FY24 trading in line with expectations

FY24 trading underpins Norcros’s compelling investment case, where its new product development initiatives, market positioning and self-help initiatives allow it to take market share in both the UK and South Africa. We believe that Norcros’s key strengths are underappreciated and that legacy issues have been resolved. Its rating is low at 5.6x FY24e P/E, which is attractive, especially when compared to its yield of 5.7% on its well-covered dividend. We retain our estimates and value the shares a

LIBERUM: Gattaca: Resilient contract performance, perm tough

Norcros (NXR LN) - FY24 trading update

Norcros has provided a FY24 trading update for the year to 31 March 2024 showing revenue and profitability to be in line with expectations. Reported revenue of c. £390m is down 11.1% yoy but broadly in line with Zeus forecast of £395.5m.