Tougher macro environment ahead

Better sales in Q2 22 but with softer margins In Q2 22 SABAF reported a mixed set of number with better revenues and softer margins. The company has started to apply IAS-29 in Turkey as the country is hyperinflationary. Net of this IAS effect (not yet included in our Q2 numbers), SABAF reported higher revenue growth (we estimate up in the LSD region) in the quarter with pricing being the main driver. By region, we saw a strong performance in the US coupled with stable EU, more than compensating

Strategy continues despite cost inflation

Stable volumes in Q1 22 with cost inflation weighing on margins SABAF posted a set of results overall in line with estimates confirming FY22 outlook. In Q1 22 sales closed at EUR70.9m (+9% YoY) with stable YoY volumes (in line with BNPPE) and a slightly higher contribution from pricing. EBITDA of EUR13m (-14% YoY) was in line with our forecast, translating into a c.490bps margin deterioration in the quarter. We remind that the comparison base was challenging as Q1 21 benefitted from lower raw m

Consolidating a record year

4Q21 results impacted by higher energy costs and non-cash FX items In Q4 21 SABAF posted c.5% organic growth with pricing being the main driver of the top-line performance. EBITDA was down c.30% in the quarter and it was the result of tough comparison base (100% YoY growth in 4Q 20) and EUR 2m of energy cost headwind which was not factored in our numbers. However, operating profit is in line with our expectation due to lower DandA. Q4 bottom-line contribution (of EUR 0.6m) was negligible as net

Old flames, current prospects

The leading EU supplier of components for major domestic appliances (MDA) is going global, with an eye on consolidating its leadership in the market for gas and hinges and expanding into the profitable, fast-growing electronics segment. Market share gains to drive 75% of 2021-24 MSD top-line growth SABAF is on the verge of becoming a global supplier as it grows in North America and APAC. Share gain in the gas and hinge markets represents more than 75% of our (c.5%) 2021-24 top-line CAGR, impro

Strix Group plc (KETL LN) - Trading conditions to improve in H2

Today’s trading update for H1 22 highlights the difficult operating environment over the first six months of the year, particularly in Q1. Trading picked up in Q2 and is expected to continue to improve in H2 22, in part, due to the inherent seasonality of the business, but also due to some catch up in demand. Guidance is for FY22 post-tax profit to be in line with the consensus estimate of £32.2m, as a result Zeus reduces its estimate by 2.5% to £32.2m. Previous guidance of £3.0m potential impac

Review of Electricity Market Arrangements - REMA Could Bring Benefits

Last week, the UK government published the consultation paper on its Review of Electricity Market Arrangements (REMA). Any change potentially represents uncertainty in a market that has been wary of changes with a number of shares falling after early details of possible reforms were flagged in the press. We review the possible changes and conclude that while there is some risk, from what we can see at present the likely outcomes could be either minimal or beneficial for investors in clean energy

Invinity Energy Systems - Improving Liquidity for US Investors

Invinity has begun trading shares on the OTCQX Best Market in the USA. We see this as adding liquidity for North American investors and more generally increasing visibility for the company in key markets in North America.

LIBERUM: SigmaRoc* - Rock solid

SHORE CAPITAL - Crestchic+ (LOAD) - House stock at 196p

LIBERUM: Flowtech Fluidpower* - Resilient H1 trading

Inflation Reduction Act

The US Inflation Reduction Act of 2022 now has a chance of passing the Senate next week as it is being voted under the Reconciliation procedure which allows bills related to the budget to pass on a simple majority rather than the 60-vote majority required to overcome a filibuster. If the act does find its way onto the statue books it will bring US$369bn in clean energy tax credits, grants and other incentives. Much is directed to protecting clean energy manufacturing in the USA, but it is a wide

Hybridan Small Cap Feast 21-07-2022

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen? Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group export

SHORE CAPITAL - Velocys+ (VLS) - House Stock, 5.6p - Tipping the balance - thematic developments in sustainable aviation

LIBERUM: Staffline Group* - H1 restrained by investment but expect stronger H2

Q2 22: mixed signals

Rolls Royce published mixed figures. Profitability was particularly low, pushing the net result back into the red zone. However, FCF generation was a positive surprise despite the rise in inventory. It has finally found an agreement to sell ITP Aero and will use the resulting cash to repay its only floating interest rate debt.

Morning Note – 2 August 2022

LIBERUM: Staffline Group* - H1 restrained by investment but expect stronger H2

Morning Note – 4 August 2022

Cenkos: Oil & Gas -- Getech Group, Longboat Energy, Valeura Energy, Genel Energy, bp, EnQuest, SDX Energy, Eco (Atlantic) Oil & Gas, Occidental Petroleum, ConocoPhillips, Vaalco Energy, Phoenix Global Resources, Sirius Petroleum, Tullow Oil, Equinor, Sunco

Oil posted the biggest weekly decline since early April on growing signs that a global economic slowdown is curbing demand. Prices are near the lowest level in six months. West Texas Intermediate settled at $89 a barrel, ending the week nearly 10% lower. US gasoline consumption has dropped, stoking demand concerns, while low liquidity has added to volatility. Supplies from Libya also picked up, helping to shrink key oil futures time-spreads and ease the tightness in the market. The pullbac