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Companies: Borgestad ASA
Arctic Securities
EBITDA holds up well despite COVID/challenges All eyes on refinancing in the next 12 months Agora Bytom footfall still lagging last year’s figures Arctic Securities mandated as arranger for a contemplated bond refi
BOR posted significantly lower revenues and EBITDA as expected, but we note that revenues actually were at the second highest Q2 level recorded, despite the pandemic. The re-letting risks in Agora Bytom are significantly reduced after recent lease prolongations, the liquidity reserve will more than double when the NBT deal closes and with signs of the strong momentum pre-COVID-19 especially within Industries returning in Q3, the underlying credit case has strengthened.
Revenues and EBITDA in line with estimates NIBD/EBITDA of 20x, but comfortable liquidity reserve New contracts within Industries, Agora Bytom now fully open Arctic Securities has been mandated as arranger for a contemplated bond refi
Aker to acquire NBT AS BOR owns 2.98% of NBT and has accepted to sell its share for NOK 71.5m Offer however subject to several conditions... …but nevertheless credit positive news; bond should trade up
BOR in Q1 recorded solid revenue growth in a seasonally weak quarter. EBITDA was however weaker, primarily due to the Properties segment which was hit by COVID-19, whereas Industries was less affected. Whereas the debt level (in local FX) now is at a record-low level, leverage increased, but the liquidity reserve of NOK 113m and the continued good asset backing provides comfort, especially in light of the upcoming debt maturities.
Solid revenue growth in a seasonally weak quarter, but weaker EBITDA Properties already hit by COVID-19, Industries less so Leverage coming up, but liquidity reserve of NOK 113m Webcast today at 12.00
At first glance Q4 was weaker than expected, but adjusted for the XO items, the underlying development is good. The refinancing risk is significantly reduced on the back of the private placement and bond buy-backs, and further comfort is provided by our SOTP suggesting a significant security foundation for bondholders. We foresee a further improved credit profile ahead and retain our outperform recommendation.
Revenues above but EBITDA below, partly due to one-offs however Capital structure strengthened; leverage at a record-low level Positive outlook comments No major movements in bond pricing expected on the back of the report
Borgestad: information related to the repair issue DOF Subsea secures several contracts in the North America region Noble Corp secures one well contract for the Clyde Boudreaux Transocean looking to scrap two old semis PGS: CMD and Q4 tomorrow
Companies: 0QOW 0DTO PGS1
Research Tree provides access to ongoing research coverage, media content and regulatory news on Borgestad ASA. We currently have 26 research reports from 1 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
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
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
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
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
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
Liberum
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
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
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