The group’s H1 21 results were pretty much at par with expectations. Revenues and operating profit were largely in line with consensus. However, compared to AV’s expectations, operating profits were lower. FCF was also lower than expected due to higher working capital requirement in comparison to the period before. In terms of guidance for the full year, the group reiterated its qualitative stance given at its investors day. Comparatively, we believe, H2 will be stronger.
Companies: SGS SA
SGS’s FY20 results were not too much off expectations. 2020 was a tale of two halves where H1 was plagued by the pandemic and H2 saw business recovery to help the group post a decent result. SGS also completed various acquisitions and one disposal during this time. Going forward, the group will report through a simplified structure. The group proposed a dividend of CHF80 per share, similar to that for FY19.
SGS posted mixed H1 results with weaker than expected sales, while FCF was strong. Unsurprisingly, the company scrapped its full-year guidance due to the pandemic.
SGS’s FY19 results came in broadly in line with consensus at the top line, while it beats expectations on the net profit and FCF. The group’s cost measures seem to bear fruit, and improved profitability, combined with a higher return to shareholders with a 2.5% increase in dividend to CHF80. SGS is a must-have stock as it is a leading TIC company, with a good diversification in its business lines and a healthy balance sheet.
As part of its Capital Markets Day, SGS reaffirmed its 2020 EBITA margin to be above 17%, while for this year organic growth should be lower than expected, due to the challenging macro environment. Management also presented Asia as being a very interresting area for its long-term growth, driven by production shifts with new business in certification.
SGS’s H1 results came in marginally below expectations on organic revenue growth. Despite a +20bp IFRS16 positive effect, postponed payments in GIS impacted the margin development in H1. Thus, the second half should benefit from the collection of these payments. Management remains confident and continues to see robust divisional developments going forward. The downside in our view is related to the M&A strategy which is not aggressive enough to meet the 2020 commitments, especially on the 17% ma
At first glance, SGS delivered a solid performance in 2018, but we are not convinced. Since the start of the 2020 Plan, SGS has acquired CHF300m of revenue, which is far from the billion CHF target over 2016-20. Even though the group expects to accelerate its M&A activities, there still remains much to be done.
SGS delivered H1 results broadly in line with expectations, showing a better-than-expected organic growth (+5.6% vs +4.9% cons), but a touch light on margins (14.6% at cc vs 14.8% cons). The bottom line is mainly affected by exceptional items (c. CHF50m restructuring charge in IND and provisions for cumulative overstated revenues reported in prior periods in Brazil).
Revenue growth of +8.5% to CHF3.31bn (+5.6% org, +0.9% acq, +2.0% FX)
Increase in adjusted operating income o
Revenue and earnings growth continued in 2017. Dividend per share increased by 7.1% from CHF70 to CHF75. The operating performance is expected to improve further in the current year. M&A activities will be accelerated.
The company reported half year results (no quarterly reporting available). In the first half year, revenues increased 5% to CHF3.05bn (estimate +3.1%). EBIT improved 4.1% (estimate 5.9%) to CHF394m and the EBIT margin declined marginally from 13.6% to 13.5%. EBITDA also increased by 4.4% to CHF570m and the EBITDA margin declined from 13.6% to 13.5%. Net income improved 7% to CHF276m. Management confirmed guidance for the current year.
SGS reported final 2016 results. Revenues increased 4.8% to CHF5.99bn and 6% on a constant currency basis. Acquisitions contributed around 3.5% to revenue growth and 2.5% was organic growth. The operating performance of the company, however, was not really exciting. EBITDA increased 0.7% to CHF1.15bn and real EBIT declined marginally by 0.7% to CHF816m. The EBITDA margin dropped from 20% to 19.2% and the EBIT margin from 14.4% to 13.6%. The adjusted operating margin also declined from 16.1% to 1
SGS is planning to grow the business by digitalising its activities. The company already has minority stakes or partnerships in tech companies such as Savi, Agflow and Sensima Inspection. The first priority will be information, systems and platforms followed by technology integration, analytics (predictive maintenance, asset tracking) and cybersecurity. In addition, the strong regional focus should increase the footprint in the largest market China. In 2016, the company had over 120 locations wi
The company reported first half year results (no quarterly results available). Revenues increased 5.4% and 7% at constant currency of which 3.6% organic and 3.4% acquisition driven. Management acquired ten companies for a total of CHF99m. These companies contributed CHF99m to revenues and CHF1m to the operating performance. EBIT jumped 18.3% to CHF394m and the EBIT margin increased from 12.1% to 13.6%. The operating performance excluding restructuring charges of CHF64m in 2015 remained unchanged
The company reported final 2015 numbers. Revenues declined by 2.9% to CHF5.7bn but increased by 3.6% based on constant currency. Organic growth was 2% and 1.6% driven by acquisitions. The company faced a difficult environment especially due to the strengthening of the Swiss Franc against major currencies and the fall in commodity prices.
Adjusted EBITDA reached CHF1.19bn and increased by 3.4% at constant currency. Real EBITDA however declined by 8.1% to CHF1.14bn. The EBITDA margin declined f
On its capital markets day in Chile/Peru, management announced some minor changes within the group. The regional structure will be optimised from 10 to 8 to improve efficiency. The business in Northern and Central Europe will be merged with Southern Central Europe. Central America will beintegrated into South America. In addition, management will merge three Asian regions down to two by the end of 2016.
Management is also planning to increase the footprint in North America and China. In Nort
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Open Orphan has released its H1 2021 results. The numbers represent a milestone for the Group, delivering both positive EBITDA and bottom line profits in its half year for the first time. While H2 looks slightly uneven, this remains a rapidly growing business in a market increasingly well understood by investors and with significant opportunity for high returns in 2022 and beyond, there remains lots to go for. Reiterate Buy.
Companies: Open Orphan Plc
Begbies has issued an AGM update that confirms the group has had a good Q1 with double-digit revenue and profit growth, benefiting from a contribution from recent acquisitions which management has confirmed are performing in line with expectations and a recovery in activity levels within the Property division. Management has also confirmed that the group is on track to meet market expectations for the full year. As we have said previously, a return to pre-pandemic insolvency volumes would offer
Companies: Begbies Traynor Group plc
Interim results showed a 240% (+£15.2m) increase in proforma revenues to £21.9m, with sequential half-yearly growth of 55% (+£7.8m), driven principally by non-COVID-related studies. The company has guided to revenues (including other income) of c.£40m in 2021 and is targeting c.£50m in non-COVID revenue in 2022, with any COVID-related revenue being in addition to this. The shortfall from our previous 2021 estimate of £46m is attributed predominantly to the ongoing completion of a COVID challenge
Accelerating platform change aims to diversify revenues, improve business mix and lower operating costs. The bulk of this transition should be complete by summer 2022 in time for the seasonally important fourth quarter for US sports betting. The changes wrought across the organisation will hike exceptional costs in our forecasts but tangible benefits should be felt from the H2 2022E onwards.
Companies: XLMedia Plc
Companies: Appreciate Group plc
Braemar has confirmed H1 trading (to August) has been strong. The new strategy, with its revitalised focus on Shipbroking, is driving growth supported by the recent investment to increase the strength and diversity of services. Shipbroking has benefited from investment in the Dry Cargo and Securities desks and the Sale and Purchase desk has also been very active. While the tankers market has remained subdued, there are indications that demand will strengthen as global demand for oil recovers. Th
Companies: Braemar Shipping Services plc
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
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Mattioli Woods (“MW”) has posted solid final results showing a beat (+9% vs SCMe) at the key adj. EBITDA level. Momentum is building: revenue growth in H2 was +12% vs H1 with a positive quarterly progression. This is encouraging for FY22e, which has started strongly (+10% Q1). Recent acquisitions are being integrated and offer a material step up in scale and earnings. We leave forecasts unchanged at this early juncture, noting potential for upside if trends are sustained. Once a full contributio
Companies: Mattioli Woods plc
RBG’s interims offer no surprises, with performance strong across all divisions and progress on track against our FY21e forecasts (Revs: £45.5m, Adj. EBITDA: £11.8m). The Group’s diversified revenue model has proved resilient against a continued backdrop of uncertainty – driving revenues +53% YoY against a somewhat weak comparative, split +35% organic, +18% from Memery Crystal (despite only one month of contribution). Demand for services across all three businesses remains strong, and management
Companies: RBG Holdings Plc
What’s new: Fintel’s interims are in line with its July trading update which (i.e. 10% revenue growth and 12% EBITDA growth) and provided colour on the impact of recent strategic disposals (i.e. Zest Technologies and Verbatim funds).
Companies: Fintel PLC
Today's results echo the messaging of June's detailed trading update, confirming a resilient FY21A result over a COVID-19 affected year. Whilst current market conditions remain challenging (given the large degree of government support provided to SMEs over the pandemic), we expect net origination growth to return over FY22E, as the economy rebounds, driving future revenues. While profit growth will be tempered by investment in FY22E, we expect a strong earnings delivery of +63% in FY23E, as retu
Companies: Time Finance plc
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Eurowag confirms its intention to undertake an initial public offering on the Main Market (Premium). The Offer would be expected to comprise both (i) new Ordinary Shares to be issued by the Company, raising gross proceeds of approximately EUR200m to support Eurowag's growth strategy and (ii) existing Ordinary Shares to be sold by existing Eurowag shareholders. Eurowag is a leading pan-European
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Silverbullet is a fast-growing digital marketing transformation services and product company serving a blue-chip client base. Silverbullet’s “killer-app” is its recently launched 4D contextual advertising solution designed to help advertisers target consumers in a post-cookie world.
Companies: Silver Bullet Data Services Group plc
Trading during the first quarter (May to July 2021) was in line with expectations. BEG remains on track to achieve our revenue and adjusted profit forecasts, which are unchanged. As anticipated, the components of forecast double-digit percentage growth in revenue and profits this year are internally driven, rather than market related: specifically recent acquisitions and the bounce back from 2020’s lockdowns.
Compliance and energy services group Sureserve has successfully extended its multi-year gas service contract by up to 10 years with its long-standing client, The Guinness Partnership, one of the UK’s leading owners of social housing. Although we are not changing our financial projections, we believe major contract renewals of this nature underpin our estimates and, importantly, improve the quality of earnings. Given the long-term growth and earnings quality, we believe the valuation remains comp
Companies: Sureserve Group Plc