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In the wake of the EU referendum result, our view of the UK chemicals sector remains relatively upbeat. The companies we cover (Croda, Elementis, Scapa, Synthomer, Victrex, Zotefoams) generally have limited domestic exposure and plenty to gain on transactional and/or translational FX exposure. The main beneficiary of FX is Victrex, where as a rule of thumb, we would expect a 10% sterling devaluation to increase Group PBT by 10%, all else being equal. An isolated period of disruption/ contraction
Companies: VCT ELM SYNT CRDA
Our recent sector report (18th April) highlighted multiple headwinds facing the sector in H116: a subdued and recently downgraded global growth outlook; oil price volatility and a still-falling rig count; the potential for a hard landing in China; the Brexit vote and its implications for sterling. Nevertheless, we expect this to be a positive year for the UK sector, a view reinforced by recent commentary from all the stocks under our coverage. Our BUY ratings are Croda, Victrex and Zotefoams and
Companies: VCT ZTF ELM SCPA CRDA
Croda’s Q1 update reaffirms full year profit expectations as continued margin enhancement and mix offsets somewhat sluggish underlying sales trends. Reported sales increased by 7.7% (+9.8% in the three core sectors) and by 0.4% on an underlying basis. Profit growth in Q1 was achieved through a good performance in consumer markets and innovation driving margins (New and Protected Products +8.0%). Operating margins increased by 60 basis points. Despite pockets of good growth (Asia, Europe, NPP), u
Companies: Croda International Plc
Byotrol is an Aim-listed anti-microbial play which floated in 2005 and underwent reorganisation, including appointing experienced new management, in Q4 2013. We had an initial presentation from the company on its trading statement on 25th February and look forward to learning more. Byotrol’s USP is in developing and commercialising hygiene products with IP protection and superior characteristics, especially in terms of long-lasting action. Byotrol addresses the B2B market in areas like surface s
Companies: BYOT AGM ELM SCPA SYNT VCT ZTF PIM SYN ITX VRS CRDA
Amino Technologies (AMO LN) Contract extension with Vodafone Netherlands | Spirent Communications (SPT LN) Appointment of CFO | Zotefoams (ZTF LN) MuCell momentum building
Companies: AFRN AGM ELM SCPA SYNT VCT BYOT PIM SYN ITX VRS SPT ZTF CRDA
There are plenty of things to worry about at the start of 2016: a subdued and recently downgraded global growth outlook; oil price volatility and a still-falling rig count; the potential for a hard landing in China; the Brexit vote and its implications for sterling. Nevertheless, we think this should be a positive year for the UK chemicals sector. There is plenty of evidence that consumer-driven chemicals demand is picking up and, to a degree, offsetting weaker industrial demand. Meanwhile, a si
Companies: AGM ELM SCPA SYNT VCT ZTF BYOT PIM SYN ITX VRS CRDA
Croda is a company of the highest quality and in our view fully merits its premium rating. 2015 was a return to form with good growth in sales and PBT (constant currency PBT +8.8%) after two somewhat disappointing years. This was driven by an excellent contribution from Omega 3 and New and Protected Products more generally. NPP sales now account for 26% of Group, underpinning ongoing margin development. The 100p special dividend was the icing on the cake and the shares are still cum-div.
Augean (AUG LN) Site purchase to support ANSS contract | Croda International (CRDA LN) Impressive FY results, 100p special dividend confirmed | Dotdigital Group (DOTD LN) Matching ambition with delivery | Genus (GNS LN) H1’s: strong PIC performance but ABS impacted by weak dairy trends | Oxford BioMedica (OXB LN) Proposed £8.1m placing provides cash resources into H2 2016 | Spectris (SXS LN) Bolt-on acquisition of CAS Clean Air Service
Companies: AUG DOTD GNS SXS OXB CRDA
Croda has confirmed a good year of progress in 2015, a fraction ahead of our expectations. All key metrics show growth (CC sales +4.2%, PBT +8.8%), an impressive results in a challenging and unpredictable market environment. The main news in the statement is confirmation of a 100p special dividend (3.6% yield in isolation), reflecting the strength of the balance sheet and cash generative nature of the Group. Growth continues to be driven by innovation (New and Patent Protected Product sales grow
A solid Q3 update confirms modest sales growth in Q3 (+2.3%), driven by another strong performance from the Consumer sectors and from Life Sciences in particular (+7.3%) on the back of the pharma grade Omega 3 API launch in the US. Q3 margins were ahead of the prior year with growth of New and Protected Products (NPP) well ahead of overall sales. Full year expectations are reiterated on a constant currency basis, implying a modest currency related downgrade to forecasts.
Croda's interims strike a confident tone confirming a continued improvement in underlying sales, strong margins and 7% PBT growth. This was underpinned by record sales of New and Protected products. Life Sciences is again the stand out performer, reporting 15% revenue growth on the back of the Omega 3 product launch. Encouragingly, Q2 sales were ahead of Q1. Full year expectations are reiterated, despite tougher comps from H2. We expect to retain our forecasts. Croda is a Group of the highest qu
AMINO TECHNOLOGIES (AMO LN) Strong interims and transformative acquisition | AUGEAN (AUG LN) Strong H1 performance, in line with expectations | CARADOR INCOME FUND PLC (CIFU LN) NAV -0.4% in June, 2.5c dividend declared as expected | CELLO GROUP (CLL LN) On track | CRODA INTERNATIONAL PLC (CRDA LN) Confident interims confirm on track for a return to growth | MOBILE STREAMS (MOS LN) FY’15 profits and cash in-line | RENOLD (RNO LN) Q1 trading a little disappointing | SCAPA GROUP PLC (SCPA LN)
Companies: AFRN AUG CLL MOS RNO SCPA VCT CRDA
Research Tree provides access to ongoing research coverage, media content and regulatory news on Croda International Plc.
We currently have 80 research reports from 4
Volex has issued its year end trading update confirming revenues in excess of $605m and an operating profit in excess of $55m that are ahead of consensus FY22E expectations of $581m and $54.2m respectively. The Group continues to trade strongly whilst effectively managing global supply chain challenges and benefits from its proven ability to pass through inflationary cost increases, albeit with a time lag. Demand increased during the year, in particular in the EV sector where sales almost double
Companies: Volex plc
Seeing Machines has announced that it has been appointed by an existing customer and global Automotive Tier-1 supplier to deliver its FOVIO Driver Monitoring System (DMS) for a leading Japanese carmaker. This contract win, with an initial lifetime value of A$21m, is due to start production in 2025 and marks Seeing Machines' first production Automotive award in Japan bringing the total number of OEMs with which Seeing Machines has won business, to nine. Delivery is via the Company's deeply embedd
Companies: Seeing Machines Limited
Weekly round-up of AIM-listed healthcare news.
Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics
Companies: ANIC RUA CREO GENI HEIQ IHC IXI IUG OPTI SBTX VAL VLG
The award of £9.3m government funding towards the development of ITM’s 5MW Gigastack PEM electrolysers moves the company’s offer forward at a time when the market is being pushed forward by policy developments in the UK and in Europe.
Companies: ITM Power PLC
XPD has re-hired Richard Myson as Group CFO to build back the Board and improve financial management, following various recent senior resignations. This is welcome news. Richard previously worked at XPD for 16 years, held numerous senior finance and non-finance positions, and helped steer the Group through the successful IPO in mid-2017. He left XPD in late 2018 but has remained in close contact with the Group. Richard owns c.1.4% of the shares. Further, hiring of a new non-executive chair and C
Companies: Xpediator Plc
Companies: Ilika plc
Weekly round-up of AIM-listed healthcare news.
Agronomics, Eden Research, IXICO, HeiQ, Trellus Health, NetScientific, Circassia, 4basebio, Fusion Antibodies, Surgical Innovations Group, Yourgene Health, Abingdon Health, Verici Dx, Poolbeg Pharma, Omega Diagnostics
National Grid confirmed its safe-haven status by unveiling a strong set of FY21/22 figures, c. 3.3% above the consensus. The group is moving forward serenely, benefiting from its natural inflation indexation both at operational and dividend levels.
The mid-term FY25/26 plan is backed even if the FY22/23 outlook expected at ‘broadly flat’ is admittedly a miss. But who cares? NG is the perfect benchmark for a flight-to-quality for investors awaiting better times.
Companies: National Grid plc
Dish of the day
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What’s cooking in the IPO kitchen?
EnSilica, intends to join AIM. EnSilica is a designer and supplier of mixed signal Application Specific Integrated Circuits (ASICs). ASICs are integrated circuits or semiconductor chips developed for a particular use or product rather than for general purpose usage. ASICs help differentiate products through optimised hardware thereby making products smaller, faster, lower power and more
Companies: XTR XLM VRS SUP ROCK SLE SEMP OHG HDD FIH
Dish of the day
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What’s cooking in the IPO kitchen?
Psych Capital PLC, intends to list on the AQSE Growth Market. Psych operates the Psych Platform (a business-to-business networking platform), that is developing the Blossom Database pursuant to a third party licensing arrangement. The Company also has an investment of 426,000 common shares in Awakn, a Canadian NEO Exchange listed psychedelics research and clinical group, with operations in th
Companies: YCA 7DIG BOOM DMTR EYE KIBO NFC RST SPSY
Oil climbed as a global squeeze on refined products continued to pull fuel prices higher with Russian diesel exports falling sharply.
West Texas Intermediate rose 4.1% on Friday and eked out a weekly gain of 0.7% after a series of tumultuous trading sessions where lowered liquidity exacerbated price moves. Diesel exports from Russia dropped in April from their pre-war level as oil buyers seek to punish one of the world's biggest suppliers. Investors have also been keeping a close eye on Chi
Companies: FO 88E CHAR DEC EME GTC TRIN WEN
2021 was a pivotal year for Getech, as the Company expanded its business model to accelerate the energy transition by using its world-class geoscience data, unique geospatial software and leading expertise to locate, develop and operate geoenergy and green hydrogen projects. This positions Getech ideally to support an anticipated global expansion in capital spending across the energy sector. Despite the uncertainties that existed throughout the year, FY21 revenue at £4.3m rose 20% YoY (in line w
Companies: GETECH Group plc
2021 has seen Velocys make substantial commercial progress both with its own synthetic fuel reference projects and with commercial developments in Japan. The business was well supported by a £26.2m fund raise and is now building capacity as interest in sustainable fuels grows and is increasingly recognised as contributing to fuel security.
Companies: Velocys plc
SMS released an AGM update this morning confirming that it is currently trading in line with the Board's expectations, with solid growth in index linked annualised recurring revenues (ILARR) to £91.4m, continued strengthening in the meter installation run-rate (with further improvement expected throughout the year), strong performance of the first 50MW of batteries and further expansion of the grid-scale battery pipeline to 710MW. The balance sheet remains strong with £63.3m cash and £420m undra
Companies: Smart Metering Systems PLC
Companies: Clarkson PLC