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As part of a comprehensive refinancing, including up to EUR 50m in new equity, refinanced bank facilities and in addition a simplified corporate structure, Axactor is contemplating a EUR 160-200m bond issue to refinance AXA01. With maturities pushed into 2024, we see a greatly improved credit profile for AXA. We keep estimates largely unchanged, while seeing improved LTV and net leverage as a result of the refinancing.
Companies: Axactor ASA
Arctic Securities
Axactor (AXA) announced today it is buying Geveran’s 50% stake in co-owned Axactor Invest, refinancing its existing bond, bank and mezzanine facilities as well as completing a EUR 30-50m equity issue. Overall, we find these measures supportive for the equity story and expect Axactor to attract more interest going forward. As a consequence of these measures we reiterate our Buy recommendation and increase our target price to NOK 11 (9).
Axactor SE (AXA) published its Q3 report this morning and we found the numbers on the bright side. No additional revaluations within NPL and a EUR 5m reversal within REO’s underline that the markets are normalising and the outlook is more stable. However, AXA received a waiver for the NIBD/Cash EBITDA covenant also in Q3 and deleveraging is key in our view now. We have made fairly neutral estimate revisions and hence we keep our Buy and NOK 9 TP.
11%/28% higher collections from NPL and REO’s in Q3 Q3 EBITDA was EUR 30m vs ARCe at EUR 16m and margin improved Reversal of REO impairment of EUR 5m Neutral report, market expects refinancing
11%/28% higher collections from NPL and REO’s in Q3 Q3 EBITDA was EUR 30m vs ARCe at EUR 16m and margin improved EPS in Q3 came in at EUR 0.02 vs ARCe/cons at -0.01/0.00 Reversal of REO impairment of EUR 5m
Axactor reports Q3 on October 28th and we look forward to an update from the company. We have increased collections in 2H 2020 by EUR 15m ahead of Q3 following a swifter recovery than anticipated in July. Axactor now trades at a 2020e Price/Book of 0.45x, 10x 2021e EPS and 5x EV/Cash EBITDA. We continue to see higher risk and dependency on a few markets, but still find risk/reward attractive. We reiterate Buy and our NOK 9 target price for now.
Axactor SE (AXA) published its Q2 report this morning and the figures were not as bad as we feared. As expected, revaluations characterised the Q2 result and we view the breach of bank covenants as undramatic in the short term. That said, AXA is dependent on a recovery in 2H, particularly in Spain. Following moderate estimate revisions and continued uncertainty for the entire sector, we keep our Buy recommendation and NOK 9 TP unchanged for now.
Better Q2 than feared, Cash EBITDA of EUR 44.4m EUR 53m in impairments, significant reduction in BV for REO Covenant waiver for the RCF facility in Q2 and Q3 secured Supportive report and the bond price should strengthen a few cash points ]
Q2 EBITDA was negative and Cash EBITDA soft following impairments NPL revaluations of EUR 27m, equivalent to 2.4% of BV REO impairments of EUR 26m, equivalent to 22.7% (!) of BV Waiver to meet leverage ratio (bank covenant) in Q2 and Q3
Axactor reports Q2 on July 23rd and following the pandemic we find estimate uncertainty to be greater than normal. The significant changes in the collection outlook, along with the lack of revaluations in Q1, points towards a significant write-down in Q2. We have assumed EUR 60m/5% of BV in our estimates. 2020 will be a lost year for the industry and appears to be more than priced in as far as we can tell. We reiterate our Buy recommendation and NOK 9 target price.
Axactor SE (AXA) published its Q1 report this morning and core earnings were on the weak side following negative impact from the Covid-19 epidemic, primarily in Spain. We have lowered collections further as we see Q2 being harder hit and Q3 depending on how long the shutdown lasts. We hope for a swift recovery sometime in the second half. Following negative estimate revisions and a very weak near-term outlook, we lower our target price to NOK 9 (12).
AXA’s Q1 EBITDA/Cash EBITDA was soft following lower NPL collections FX gain of EUR 9.6m and unrestricted cash positon of EUR 46.1m RCF extended by one year, bond to be refinanced by Q1/21 Bond is trading at distressed levels with a risk covenant breach
AXA’s Q1 EBITDA/Cash EBITDA was soft following lower NPL collections FX gain of EUR 9.6m result in a net profit EUR 3.5m AXA has EUR 49m in cash and RCF extended 1 year to December 2021 Potential impairments in Q2/20, may challenge covenants
Axactor reports Q1 on Tuesday April 21st and we have tried to account for how the Covid-19 epidemic will affect the P&L. With Spain and Italy being hardest hit in Europe, we expect this has had and will have a negative impact in 2020. On the positive side the company has just issued equity and is in a better position to cope with headwind. In addition, we view the shareholder action taken and change of CEO as positive for the investment case.
Axactor SE (AXA) published its Q4 report on Wednesday and the figures largely in line with our estimates and the trading update already given in connection with the private placement last week. We have increased capex to EUR 400m and see a potential increase if additional funding is secured. Management indicated that they are following the bond market closely and might tap it in the near future.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Axactor ASA. We currently have 48 research reports from 3 professional analysts.
Bioventix has published its H1 2024 results to end December 2023, delivering a strong set of interims with continued growth in profitability and free cash flow generation. Revenues grew by 13% to £6.7m with the company’s continued healthy operating margins translating into adjusted EBITDA (ex. share-based payments) growth of 12% to £5.3m. In line with management’s policy of maintaining c.£5m cash on the balance sheet, an interim dividend of 68p was declared (+10%), with net cash at period end of
Companies: Bioventix Plc
Cavendish
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Companies: Fintel PLC
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Companies: Braemar PLC
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Gym Group has accompanied confirmation of FY23 profit resilience and continued buoyancy (like-for-like revenue up 12% in the first two months of 2024) with a clear commitment ‘to accelerate, not reinvent the wheel.’ The latter is telling with new senior management endorsing Gym Group’s sweet spot as a low-cost operator in the long-term growth market of health and fitness. Its confidence in material scope for enhanced pricing and member acquisition and retention is complemented by expansion targe
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Companies: US Solar Fund Plc
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