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Q4 closed in line with expectations LU-VE reported results broadly in line with consensus. Sales were up c1% and the company saw strong growth from industrial cooling in Q4 (+c60%), while the special application segment was slightly up and A/C and refrigeration were both down DD (with likely weaker HP and commercial refi). Adj. EBITDA increased 5% in Q4, with growth driven by c40bps of margin expansion chiefly due to self-help. Net debt closed at EUR 126m and was down QoQ with lower working cap
Companies: LUVE (LUVE:BIT)LU-VE SpA (LUVE:MIL)
BNP Paribas Exane - Sponsored Research
Q2 23 results were in line In Q2 there were no surprises from the release. Sales (of EUR 168.9m) were in line with last year. We estimate organic performance was flattish with positive pricing (up LSD) almost offsetting slightly negative volumes. In the quarter, we saw a divergent performance across businesses with strong Air conditioning (ie HP) and Industrial cooling, helping to cope with weak special applications (ie appliances) and still subdued (commercial) refrigeration. EBITDA was stable
With momentum improving in H2 and top-line accelerating in 2024/25e, we see LU-VE as well-positioned to deliver HSD sales CAGR with expanding margins. Market share gains in the US and booming demand for heat pumps in EU should support the growth story. LU-VE trades at c12x 2024e EBIT, a c40% discount to its HVAC/R peers. EU heat pump growth is far from cooling... LU-VE looks best positioned to benefit from the EU push on building decarbonisation. We forecast the EU business to grow at HSD CAGR,
Stable Q1 despite a challenging comparison base LU-VE posted a soft start in Q1 mainly due to a tough comparison base. Sales of EUR 151.4m grew by c2%, mainly driven by Air conditioning (+75%) more than offsetting a general weakness of the other applications. Adj. EBITDA was stable YoY at EUR 19.2m (overall in line with BNPPe) with a 12.7% margin (ie same level as last year). Price/mix and volumes more than offset the cost inflation. That said, the result was impacted by EUR 1.9m one-offs (due t
4Q 22 overall in line with orders starting strongly in 2023 In FY22 LU-VE posted 2% beat on (Reuters) consensus EBITDA with results overall in line with our estimates. In Q4 22, the company generated c.13% sales increase and we estimate organic growth was HSD vs c.17% BNPPe due to lower than expected volume and pricing contributions. In Q4, adj. EBITDA was almost in line and came in at EUR c.17m, implying a 11.1% margin which is not far from last year (11.7%). FCF generation was slightly below o
With improving macroeconomics and reduced political noise, we selected four names across the Italian Sponsored Research space - ALMAWAVE, SALCEF, CEMENTIR and LU-VE - that offer a combination of sound growth, potential margin expansion, healthy BS and MandA momentum. Better macro and lower country risk brings Italian Mid and Small caps back on the radar Following a challenging past year for Italian MidandSmall Cap equity performance, a more benign macro backdrop, easing consumer concerns and ea
Companies: LUVE AIW CEM SCF CEM LUVE
9M 22 results came in line In 9M 22, LU-VE posted a set of results in line with our estimates. Sales increased by c.28% YoY at constant perimeter. We estimate a DD increase in volumes and almost 20% contribution from prices. It is worth highlighting the strong performance of the Air Conditioning application (with heat pumps up by 150%), while the US business doubled. Looking at profitability, the reported EBITDA of c.EUR 60m was substantially in line with our estimate, despite EUR 2m of incremen
Megatrends feed long-term growth prospects... Yesterday LU-VE hosted an Investor Day, shedding light on the megatrends that are likely to support the group''s growth ambitions. We discussed these dynamics in our latest in depth note (LU-VE: Cold Rush). Growth and increasing sustainability in cold chain and heating electrification are the main factors supporting LU-VE''s organic development in the near future. By region, the EU remains at the core as it is benefitting from the increasing penetra
Elections confirm polls, with the right-wing coalition winning a majority of seats The Italian elections resulted in the right-wing coalition led by Giorgia Meloni of the Brothers of Italy winning a majority of seats in both lower and upper chambers, though far from the 2/3 needed to change the constitution. The new government will officially start in the week of Oct 10th, and after an initial phase of selecting ministers, it can begin effectively governing from early November. Thus, we may ne
Companies: SAB LUVE FNM IRE MN SES HER AIW IF TIP FNM IRE GHC CEM IGD WIIT COM SAB IF UNIR SCF CEM ILTY MN LUVE IGD TIP HER SES ORS
H1 22 results showed strong profitability In H1 22 sales grew by +39.9% YoY with organic figure of c.36% (BNPPe) which was the result of c.25% increase of the price list, while the rest came from volume/mix. Profitability was well ahead of our number. LU-VE posted 13.2% EBITDA margin (vs BNPPe of 12%), implying EUR 42.1m of EBITDA (+c.59% YoY) which was 12% above our estimate. Pricing power continues to protect profitability with the positive impact of the price hikes and volumes, more than offs
Research Tree provides access to ongoing research coverage, media content and regulatory news on LUVE. We currently have 11 research reports from 2 professional analysts.
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
Companies: Renold plc
Cavendish
Companies: BILN ELCO NXQ CUSN ATG
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
Companies: Billington Holdings Plc
Another Good Year of Diversified Growth with More to Come in 2024 CCapital have released their Q1 operating results. Overall, revenue has come in slightly lower than expected at $80.2m vs TamE of $85.9m but is largely tracking in line with our FY24 annual estimate and we note the company has maintained guidance. Drilling revenue for this quarter was impacted by a fall in utilisaztion rates as well as general remobilisation geographically but we expect a strong recovery throughout the year as k
Companies: Capital Limited
Tamesis Partners
Plant Health Care announced it has signed a distribution agreement with AMVAC, an American Vanguard Company, to support commercialisation of novel fertiliser products incorporating Plant Health Care's Harpinαβ in China starting in 2024. The novel product combines Harpinαβ technology with an AMVAC fertiliser and is expected to help growers improve crop quality and yield as part of an integrated and environmentally responsible crop production programme. AMVAC continues to evaluate Plant Health Car
Companies: Plant Health Care PLC
Companies: 88E RNO TRIN KRM EXR BOOM
Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appear
Companies: Severfield Plc
Edison
discoverIE’s March year-end update confirms a strong operational performance in challenging markets. Following two years when sales increased by +48%, FY 2024 Group sales were +1% ahead of 2023 at CER (reported -3%) driven by a +2% contribution from acquisitions and organic -1%. As expected, organic growth returned in the later part of the year (Q4 +2%, +11% sequentially) and the order book has reverted to normalised levels of c.4.5 months’ sales, which – combined with a continuing strong pipeli
Companies: discoverIE Group PLC
Companies: Iofina plc
Canaccord Genuity
Companies: PLL TLG HZM SAV KAV KP2 SVML
SP Angel
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.
Progressive Equity Research
Liberum
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.
Companies: Invinity Energy Systems PLC
Longspur Clean Energy
Severfield’s full-year results to March will be ‘slightly above’ the Board’s expectations, according to today’s trading update, with net debt significantly better. We maintain our PBT estimates for both forecast years, which are ahead of consensus, but reduce our net debt for FY24E. Record orders were boosted by the steel specialist’s European operations, after last year’s Voortman acquisition, while the Indian JV has seen ‘another step up in profitability’. The group has also launched its first
Companies: ATOME PLC
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