SIT’s first half results have come in slightly above guidance with both heating and metering showing strong growth. A better second half is now in prospect although we temper a better sales forecast with some margin of caution as raw material costs are likely to impact the gas metering business. Overall, we see better profits and our base case valuation rise to €12.1 from €11.3.
Companies: SIT S.p.A.
SIT’s first half results, due on Thursday, will show strong sales growth as already published by the company. Profitability is likely to see a strong rebound on levels seen in H1 20. Investors should look for detail of sales progress across the board, tempered by the timing of gas metering programmes. Further detail on the acquisition of US valve business NGA will also be of interest.
The UK government has announced its long awaited hydrogen strategy and also launched a consultation on funding hydrogen production. The strategy confirms support for both green and blue hydrogen production as well as for the replacement of natural gas in around 3m homes. Subject to the consultation, the price differential between fossil fuel solutions and hydrogen will be subsidised by the use of contract for differences based on the existing UK support for offshore wind. As with the earlier ene
Companies: DRX ITM PHE SAE SIT VLS
SIT has refinanced its debt with an ESG linked loan. The move follows a strong theme from the company towards greater sustainability. ESG index loans have gained in popularity and we expect SIT to benefit from the new structure.
SIT continues to find opportunities with strong strategic fit and today has announced the acquisition of the electronic valves business of Emerson Electric. This will allow the company to expand its offering in North American markets and to grow market share in this new product line.
SIT has sustained its first quarter growth into Q2 as key markets emerge from the COVID related slow downs see last year. Heating has seen the strongest growth but even after adjusting for the Janz acquisition, metering has continued to grow. We upgraded forecasts at the time of the Q1 statement, given an encouraging outlook statement, and we now see this as vindicated, with today’s strong statement adding an element of de-risking to the full year outlook.
The International Energy Agency (IEA) published its Net Zero by 2050 roadmap. This confirms work by others showing high demand for renewable energy, storage, electric vehicles and hydrogen if we are to reach a position of global net zero emissions by 2050. Given historic criticism of the IEA for failing to recognise the role of renewable energy, we see this report as an important indicator of how far expectations are shifting in favour of clean energy.
Companies: ADN DRX GSF ITM NESF PHE SAE SIT STRLNG TLG VLS
SIT’s bond issue allows it to generate financial efficiency through the refinancing of the Janz acquisition debt. With a strong sustainability profile we think the company should be able to benefit from the ESG indexing element of the coupon. Along with the Shelf agreement the new financing also gives the company useful financial fire power. We think the company is well placed in an environment with opportunity in all its business areas and see this new financial resource as an important benefit
The Q1 results from SIT showed strong growth benefiting from the Janz acquisition and showing good recovery in key elements of the heating business. Historically SIT has enhanced both market share and margins through constant product development and these results saw growth in fan products and C&I metering driven by new product introductions. A stronger outlook statement is encouraging and we have made a modest increase to our FY 21 forecasts resulting in a small increase in our base case valuat
SIT offers a strong business in gas heating and smart metering with good organic growth potential boosted by its recent water metering acquisition. A post COVID 19 bounce in earnings is almost guaranteed by the acquisition. On top of that, the shares offer exposure to one of the few suppliers to the hydrogen economy with critical hydrogen-ready componentry and metering.
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Our conviction in AFC Energy is fundamentally premised on our appreciation of the unique attributes and qualities of AFC Energy's technology. We have long believed its systems are robust – chemically and otherwise. Nevertheless, we are very impressed with the delivery achieved by AFC Energy's systems in the most arduous conditions on the planet. To have successfully featured as the primary power source to charge the vehicles in each of the first three races is a very strong statement that unequi
Companies: AFC Energy plc
Strix hasn’t missed a beat over the last eighteen months. Despite the pandemic and the resultant lockdowns, it was able to marginally grow earnings in FY20. The COVID impact on the income statement is barely noticeable, a year of low growth rather than the collapse in profitability experienced by others. This was topped off by the Capital Markets Day in November when the challenging five-year growth target of doubling revenue was set.
Companies: Strix Group PLC
The Velocys interims show the recognition of sales to the Red Rock Biofuels project with a good gross margin indicating the value in these sales. With recent commercial progress in Japan we see this as helping to underpin the value of these developments. Overall, the company is making progress across the board and both the policy and wider industry background, notably in aviation, remain highly supportive.
Companies: Velocys plc
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Oil declined amid Russia's plans to boost upcoming overseas oil sales and as the dollar rallied.
Futures in New York ended the session nearly 1% lower on Friday. Russia will increase its oil exports 3% in the fourth quarter, according to Interfax. Meanwhile, gains in the US dollar reduced investor interest in commodities priced in the currency.
Despite weaker prices on Friday, US benchmark crude futures gained more than 3% this week due to tightening supplies. In the US, crude inventories
Companies: FO 88E DEC EME GTC TRIN UOG WEN
Plant Health Care has released its interim results in line with expectations following its trading update in July. In light of this, we do not make any changes to our numbers. We maintain our view that given current market trends, our forecasts remain well underpinned with considerable upgrade potential. Reiterate Buy.
Companies: Plant Health Care PLC
Velocys, the next generation sustainable aviation fuels (SAF) specialist, has reported interim results this morning (23 September). The company's first-half period to end June saw an encouraging rise in strategic activity, as well as a noticeable step up in general news flow surrounding the future needs of the aviation sector for renewable fuels as the industry begins its recovery from the pandemic. We note that this positive news flow has continued into the current Q3 period. The results demons
Companies: Safestyle UK Plc
First half performance indicates that the turnaround is almost complete with Safestyle reporting the best half year financial performance since H2 2017. Revenue of £73.0m is up 73.4% yoy but more importantly increased 13.3% on the H1 ’19 performance. The recovery in revenue picked up pace during the half, after four months it was 10.9%. Gross margin increased 639bps to 32.3% on HY19 as average selling price increased 11% despite a negative movement in mix. This resulted in adj. profit before tax
Esken now has financing in place for the recovery. The Group has raised £55m in fresh equity and secured a £125m convertible loan from Carlyle Group, who become a strategic investor in London Southend Airport. Strategy is focused on two core divisions. The Energy division, which supplies wood biomass to green power plants is profitable and has performed robustly. Trading in Aviation remains subdued. Cargo handling at London Southend has grown strongly but passenger traffic has been hit hard by C
Companies: Esken Limited
Xeros has reported H1 2021 results for the six-month period up to end June 2021. Revenues are broadly inline but cash is slightly behind expectations due to ramp up in XFiltra investment. These results are not reflective of the longer-term potential of the Group. Despite some inevitable further pandemic-induced delays, commercial progress is encouraging, with the potential of XFiltra looking particularly exciting. We reiterate our 400p/share price target.
Companies: Xeros Technology Group (XSG:LON)Xeros Technology Group Plc (XSG:LON)
Symphony has reported significant product development and regulatory approval. Most notably it has received enhanced US Food & Drug Administration (FDA) and Health Canada approval for introduction of d2p anti-microbial technology for bread packaging in these markets. Our analysis shows the total market in North America for bread products is valued at c.$24bn each year. In the recent H1 statement, the Group reported revenue growth of 13% to £5.4m (at constant FX) but a loss before tax of £0.6m (i
Companies: Symphony Environmental Technologies plc
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Billington provides structural steel and safety solutions to the construction industry. Despite sector wide challenges of the last 18+ months, Billington's interim results to June 2021 reflect a solid operational and trading performance. H1 revenue increased 15.1% YoY to £37.7m with adjusted PBT rising 24.6% to £0.76m. Billington commenced the year with full order books. Moreover, order intake has been strong, meaning the order book has remained at ‘consistently high levels', with the macro back
Companies: Billington Holdings Plc