Bourbon Corporation to be liquidated

The Commercial Court has decided to take the offer from the French banks (owner of the company Société Phocéenne de Participation). As the SPP offer intends to liquidate Bourbon Corporation, we therefore end our coverage of the company.

Q3: subsea down / reorganisation continues

As a reminder, the shares have been suspended from quotation for a month now, as the court administrators have received a takeover offer. The Commercial Court is completing the analysis of the various options. The deadlines for tender offers submissions (part of the reorganisation proceedings) are extended to 20 November.

H1: activity improves while negotiations continue

While negotiations around the reorganisation are still continuing, the activity is improving in Subsea Services. H1 adjusted revenue is up 3.5% yoy (€362m), in line with our estimate (€367m). Net cash flow from operating activities is down 4% vs H2 18 at €53m with an unfavourable change in working capital.

Q4: confident on reaching a solution in 2019

FY18: Adjusted revenue: €-690m (-20% yoy) Average working day rate: $7,942 (-9% yoy) Adjusted EBITDAR: €143m (-43% yoy) Adjusted EBIT: €-314m (-22% yoy) Free cash flow: €102m Net income: €-458m (-20% yoy)

Q4: stable activity

Adjusted revenues: €175.9m (+1.3% qoq) • marine & logistics: €88m (+1.2% qoq) • mobility: €46.1m (-0.5% qoq) • subsea services: €38.2m (+0.8% qoq) • other: €3.6m (+53.9% qoq) Average daily rate: $7,989/d (+1.7% qoq)

Q3: stable rates, uptick in subsea services activity

Adjusted revenues: €174m (+3% qoq) marine & logistics: €87m (-3% qoq) mobility: €46m (-2% qoq) subsea services: €38m (+27% qoq) other: €2m (stable) Average daily rate: $7,854/d

Subsea prices nosedive

Bourbon’s H1 results: • Adjusted revenues: €340m (-15% yoy / -10% yoy at constant exchange rate), below consensus (-5%) • Adjusted EBITDA: €-2m • Net income: €-197m • Cash flow from operating activities: €81m • Negotiations with debt holders ongoing

Recovery in offshore services market needs more time

Q4 adjusted revenues were €182m (-19% yoy), below consensus expectations and also our estimates. 2018 outlook updated: Management expects the offshore services activity to stabilise and should gradually recover in 2018. A gradual increase in the utilisation rate is anticipated.

H1 EBITDAR in line with consensus, but no pick-up in demand

The H1 17 adjusted EBITDAR ex-capital gains came in at €145m (-36.6% yoy), in line with consensus estimates. The net loss was €170m, worse than expectations, due to the large financial expense. Outlook for 2017 Management points to signs of gradual recovery in the drilling activities. It expects utilisation rates to stabilise in the subsea and crew-boats segments. It also expects a slight upturn in the deep-water and shallow-water activities, however, prices should remain under heavy pressu

Shallow water drives Q1 revenue fall

Q1 adjusted revenues declined by 28.3% yoy (-7.7% qoq), to €226m. Outlook: in 2017, Subsea and Crewboats should continue the upturn seen in late 2016. These segments should be the first to benefit from a recovery.

Dividend reduction (from €1.00 to €0.25 per share)

The H2 16 adjusted EBITDAR was €154m (-40% yoy), slightly below consensus estimates. The net loss was €175m, missing expectations. The debt restructuring (“Stronger for longer” plan) announced on 8 March is subject to conditions to be fulfilled no later than 15 July 2017. These include: - the repayment of an advance (€37m) granted to JACCAR Holdings when the holding was trying to let Bourbon buy its gas shipping business (in spring 2016); - arrangement of new funding of up to €240m over the

Maintenance to give some support to Subsea and Crewboats

Q4 adjusted revenues came in at €244m (-28% yoy, -6% qoq), below consensus expectations but broadly in line with our estimates. Outlook 2017: gradual recovery in maintenance operations. Higher utilisation rates in Subsea and Crewboats, while Deep and Shallow water should continue to suffer during the first quarters of 2017.

Q3 prices stable qoq, but lower utilisation

Q3 adjusted revenues were €259m (-25% yoy), missing consensus expectations. Outlook 2017: clients increasing maintenance operations and starting projects to expand facilities. H1: Deep and Shallow water still weak; Subsea and Crewboats should benefit from a pick-up in maintenance activity.

Stable H1 16 EBITDAR margin but greater than expected net loss

Adjusted EBITDAR fell to €229m in H1 16 (-21% yoy, slightly above consensus estimates), but the margin was stable, at 38.2%, as direct costs decreased by 22.4% (lower vessel costs and G&A offset the higher expense for stacked vessels). However, consensus underestimated depreciation & amortisation, which came in at €157m (vs. estimates of €114m; we estimated €149m) resulting in an EBIT loss of €28m (vs. consensus profit at €13m; AlphaValue €13m loss). Higher taxes and finance costs than consens

Q2 revenues below consensus; management sees a bottom in Q3 16

Q2 revenues were €265m (reported, -23% yoy), below consensus expectations at €286m. Guidance 2016: - Adjusted revenue reduction in the same order of magnitude as H1 16 (vs. moderately lower vs. 2015); - Slight decrease in the EBITDAR margin.

M.P. Evans - In search of the sustainable magic money tree

MP Evans is one of the most efficient producers of sustainable palm oil in Indonesia with a proven track record of developing valuable plantations and, more recently, buying plantations at excellent prices. The 2022 spike in the CPO price created a surge in FCF which has supported the execution of its development strategy, evidenced by the two acquisitions in 2023 and the commissioning of a sixth mill in February 2023. MP Evans is at the start of a ten-year cash flow window where maintenance cap

Duplicate of BWMX: 1Q Review: In-Line Q, With Multiple Positives (Updated); Reiterate Buy

We are reiterating our Buy rating and $22.50 price target for Betterware after the company reported an impressive 1Q, with better than expected top line results. Further, management reiterated 2024 revenue and EBITDA guidance. There was also material progress at Betterware, which enjoyed double-digit increases in average ticket and revenue and is nearing the shift to positive growth in Associates. JAFRA Mexico also registered another strong quarter, as the acquisition has remained a key winner.

Morning Note – 25 April 2024

Premier Foods+ (PFD, House Stock, 139p) - Pension cash contributions suspended

Carr's Group - An enhanced value creation strategy

Carr’s Group has announced an updated strategy that offers the potential for value realisation and creation from a number of avenues. These include: value realisation of the Engineering Division; the ability to significantly reduce central costs; and longer-term value creation in the Agriculture Division as a focused business with recovery potential and a strategy to leverage its strong market positions for growth.

Wynnstay Group+ (WYN, House Stock, 370p) - AGM – FY24F unchanged

STCB: 4Q Review: Setting Up the Next Steps; Reiterate Buy, PT

We are reiterating our Buy rating and $0.25 price target for Starco Brands, leaving our 2024 projections basically unchanged and rolling out another year of double-digit top and EBITDA growth after the company reported inline 4Q23 results and left 2024 guidance unchanged. We believe, with multiple potential expansion opportunities in category adjacencies and new relationships, continued innovation and vertical integration and the potential for further accretive acquisitions (which are not in our

Greggs - Showing us how it's done

The second full year of Greggs’ five-year growth plan to double revenue by FY26 should be marked down as very successful, especially so given the challenging external environment. Unlike many consumer-facing companies, high selling price inflation was accompanied by volume growth, leading to good market share gains. The consumer is responding well to new initiatives to grow revenue in new dayparts and digital channels. Profitability was well-managed with better recovery of input cost inflation t

Greencore Group+ (GNC, House Stock, 117p) - Delivering on margin rebuild plans

AG Barr - Fizzing away

AG Barr’s (BAG’s) FY23 results highlighted the strength of the brand portfolio as group volumes (+2.4%) outperformed the UK soft drinks category decline of 2.9%. Key brands IRN-BRU (33% of FY24 revenue) and Rubicon (19% of FY24 revenue) grew 8% and 15%, respectively, as flavour innovation and format mix helped to drive volume growth. Management anticipates margin enhancement initiatives to yield a 100bp operating margin uplift in FY25, aided by greater in-sourcing and other efficiency gains. M&A

Initial Equity Trading Comments - 16 May 2023

Premier Foods+ (PFD, House Stock, 140p) - Strong trading & share gains

Hilton Food Group+ (HFG, House Stock, 854p) - On the front foot for growth

Cake Box Holdings+ (CBOX, House Stock at 161p) - Robust trading - a modest upgrade

Mining Monthly: August Edition

What you need to know: • The precious metals markets held flat in August, following the solid performance in July; mining equities fell modestly. • M&A continued to be light in August, we believe this is primarily due to the lack of clarity regarding the direction of interest rates. • Safe-haven assets like gold and silver continue to look highly attractive with mining equities trading close to trough multiples, creating buying opportunities for when investment dollars flow back into the sector