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Zalaris is a leading European provider of comprehensive payroll and HR solutions and services, covering the entire employee lifecycle. The company’s proprietary platform PeopleHub is tailored towards multinational corporations or large and complex single-country projects, the more attractive end of the business process outsourcing (BPO) market. Due to long-term relationships with customers and a low churn rate, the company has an improving financial profile with good revenue momentum as well as
Companies: ZALARIS (ZAL:STO)Zalaris ASA (ZAL:OSL)
Edison
Premium
SAP CEO talked about the weak guidance in a Bloomberg interview …says it is evidence of cloud transition Covid-19 is speeding shift from on-prem to cloud software Could be viewed as more “company specific” than broad sector specific
Companies: Zalaris ASA
Arctic Securities
Despite Covid-19 halting growth and scale for Zalaris, the company is delivering on its cost cutting with another solid quarter, showcased by an underlying EBIT margin of 8% and 6.1% FCF yield (incl. leases) YTD. Management also seemed confident of further margin improvement and growth in 2021, with the latter being key for achieving more scale as the fixed cost base is still high. We reiterate our BUY recommendation and lift our target to NOK 63/sh.
Revenues of NOK 189.7m, 7% and 4% below ARCe and Consensus Underlying cash-EBIT margin of 8.2%, in line with ARCe Still slight revenue impact by Covid-19, but better outlook Figures slightly below expectations, but still supportive
SAP cut both its 2020 and mid-term targets yesterday …citing more muted demand, following re-introduced lockdowns ZAP expects this to last to at least 1H 2021 Outlook risk on Zalaris, but margin improvement our main focus in Q3
Zalaris will report Q3 figures 27 October and we expect another solid quarter with further margin improvement. We have lifted our Q3 estimates on lower cost assumptions and slightly upped growth for Q4/20 and Q1/21 following continued easing of Covid-19 restrictions. If Zalaris delivers on our Q3 EBIT margin, we argue it should lead to a repricing as it adds further support to the margin recovery with the third consecutive quarter of margin improvement.
Zalaris reported strong Q2 figures, which added confidence to our margin expansion view. Management also gave a positive outlook statement and Zalaris is on track to deliver on its 10% adj. EBIT margin target, already achieving a 5% FCF yield (incl. leases) in 2020 despite modelling negative FCF in H2 due to WC. We lift our target price to NOK 61 based on revised estimates and lower NIBD, but emphasize further upside as we currently model 8% FCF yield in 2022.
Strong Q2 figures and underlying margins DPS of NOK 0.5 per share has a strong signalling effect Zalaris highlights strong pipeline and positive effects post COVID-19 We expect positive estimate revisions and spread tightening
Strong figures and underlying margin Dividend of minimum NOK 0.5 per share announced Zalaris expects positive effects post COVID-19 We expect positive estimate revisions and share to trade up
NPL companies: Proposal for changes to debt collection law in Norway Axactor: Renews and expands forward flow agreement in Norway NRC group : SEK 149m contract in Sweden Zalaris: Renews payroll and HR services for leading fertilizer company
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Research Tree provides access to ongoing research coverage, media content and regulatory news on Zalaris ASA. We currently have 56 research reports from 3 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
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Cavendish
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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
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
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Tamesis Partners
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
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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
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
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Canaccord Genuity
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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
Liberum
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.
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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
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