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Although Sonae posted lower net income in 9m-23 owing to higher funding costs and tax expenses coupled with an increase in depreciation due to the investment in the expansion and digitalization of its businesses, the company once again demonstrated the resilience of its business model. The Portuguese HoldCo reported a 7% yoy improvement in consolidated EBITDA, with the underlying EBITDA margin up by 20bps. In terms of NAV, too, Sonae was in the green, with an increase of 4% qoq to €4.4bn.
Companies: Sonae SGPS (SON:ELI)Sonae SGPS SA (SON:LIS)
While Sonae recorded a fall in net income in H1 23, due to higher financing costs, tax charges and increased impairment, as a result of investment in the expansion and digitalisation of its activities, Sonae demonstrated the resilience of its business model with an expanding EBITDA margin. The challenging environment had no impact on the valuation of its businesses, with NAV growth of 4% qoq.
Sonae posted a good set of H1 23 results in terms of operating performance, demonstrating once again the resilience of its business model.
Sonae started the year on the right foot in terms of NAV (+2.6% qoq), top-line growth (+12% yoy) and profitability (fairly stable EBITDA margin) amidst lingering inflationary trends, and increasing interest rates. The story was not all rosy, however, when it came to net income (group share), which fell by 38.3% to €26m on the back of higher depreciation, taxes, financial costs and inflation.
Despite a 28% increase in headline net profit Sonae, owner of Portugal’s largest food retailer, was adversely hit by supply chain disruption, inflation and rising interest rates in 2022. Margin compression in an inflationary environment with soaring energy prices led to a 17% fall in Sonae’s underlying net profit, a decline that was more than offset by €142m of one-off capital gains. The outlook for the coming years remains bleak on the back of high inflation coupled with a projected decline in
Over 9m 22, Sonae demonstrated resilience in the increasingly-challenging environment of rising energy costs and interest rates. However, the first signs of fragility were felt in Q3, as evidenced by the decline in margins, which were under pressure from inflation. Fortunately, the Portuguese HoldCo can boast of a 3% increase in NAV in Q3 to €4bn, which should somewhat reassure investors.
Sonae remains undisturbed by supply chain disruptions, unprecedented inflation and interest rate hikes. For the second quarter in a row, the Portuguese holding company posted promising results in an increasingly challenging environment. Although valuations have not been spared the market turmoil, this is not the case for the revenues and operating performance of the portfolio companies with top-line growth across all the businesses.
Companies: Sonae SGPS SA (0ML0:LON)Sonae SGPS SA (SON:LIS)
Sonae’s reported resilient Q1 2022 results on the back of solid revenue performances from the food and fashion retail divisions. Despite the current challenging market environment with high inflation, supply chain disruption and geopolitical tensions, Sonae was able to increase its top-line performance in almost all of its businesses.
Sonae’s H1 results showed a strong resiliency on the back of the solid sales performance of the food retail and electronics retail divisions. Sonae MC was able to leverage its leading position in Portugal and its broad presence across multiple food retail formats to benefit from the positive dynamic surrounding the market.
Companies: Sonae SGPS SA
The good performance in the food retail and the full consolidation of Sonae Sierra are improving the holding company’s top-line and profitability, the discount to NAV retracted to 18.9% but remains attractive.
The holding company’s achievements in 2018 marginally exceeded our expectations revenue-wise, while its bottom line was largely more fuelled by Sonae Sierra’s capital gains and Sonae RP’s sale and leaseback transactions.
Sonae reported an increase in turnover thanks to the positive contribution from all businesses, particularly food retail.
The holding company’s achievements over Q1 18 exceeded the management’s targets for FY18 with all businesses reporting increased turnover and an improved underlying EBITDA in comparison with Q1 17.
The company’s achievements in 2017 exceeded our expectations revenue-wise, while its bottom line was lower than our expectations due to the impact of non-recurrent effects in 2016.
Sonae’s 9M17 revenues grew by 6.9% to €4,115m on a yoy basis, fuelled by the positive performance of all businesses: Sonae Retail, Sonae FS and Sonae IM. Sonae’s underlying EBITDA grew by €9.6% to €221m in 9M17. The underlying EBITDA margin added 10bp to 5.4%. However, the holding’s EBITDA declined by 8.1% on a yoy basis to €273m, impacted by the non-recurrent items registered last year (benefiting mostly from the capital gains arising from the sale and leaseback transactions completed by Sonae
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Companies: Tekcapital Plc
Starting this month, we plan to provide monthly screens on the sector, in addition to observations on sector fundamentals and valuation. This month we screen for companies with the lowest EV/ EBIT multiples and identify five attractively valued companies. Among these, we highlight Nexteq and Maintel for their high quality and growth, respectively.
Companies: Maintel Holdings Plc (MAI:LON)Nexteq PLC (NXQ:LON)
Rosslyn Data Technologies has released a trading update for the year to April 2024 indicating its total sales pipeline has continued to expand and discussions with larger new partners have continued to progress. Partnering with major BPO (Business Process Outsourcing) organisations and Consultants undertaking procurement transformation projects is the primary sales model adopted by Rosslyn and, in the interim results to end-October 2023 announced in January, Rosslyn reported a strong increase in
Companies: Rosslyn Data Technologies PLC
Companies: RDT QTX DUKE CMCL
Companies: Fadel Partners, Inc.
The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (
Companies: TXG NDVA TSVT BCOW Z29 TXG NCYT GNS SUN AMS OMG APH EKF EAH IMM AGL DEMG AGY TSTL IPO GDR ETX TRX HVO HVO CTEC AVO OXB DEST VLG IXI VAL ERGO INDV AGR AVCT BAI 123F IMCR BCOW
Hardman & Co
Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.
Companies: ENSI PPS MIRI SEEN ENET CHSS
Arcontech has reported encouraging H1 24 results to December, with revenue £1.45m, adj EBIT £0.4m and net cash £5.7m, in line with our conservatively unchanged £2.8m FY24 revenue estimate. Revenue growth (+7% yoy) reflects the multi-year contract won in October and the strengthening relationships with core Tier-1 customers, with signs of improvements in challenging market conditions. Our prudent forecasts reflect the impact of unexpected growth in floating user terminal numbers in H1, with plent
Companies: Arcontech Group PLC
30th January 2024
Status of this Note and Disclaimer
This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje
Companies: SNX PEG HVO COG HVO KMK
Intelligent Ultrasound has provided a trading update for the year to December 2023, providing a view on revenue progression and year end cash. Group revenues for the year are expected to be £11.2m, up 10% YoY versus our estimate of £12.5m. Within this figure, Clinical AI revenues were broadly in-line with our forecast at £2.0m (Cavendish est. £2.2m) up c200% YoY, while Simulation revenues, impacted by lower sales in Europe and China, were £9.1m, down 3% YoY (Cavendish est. £10.3m). Cash at the e
Companies: Intelligent Ultrasound Group Plc
1st March 2024
Status of this Note and Disclaimer
This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objecti
Companies: NWF FDP MEN EAAS SEEN ORCH CREO ENET
On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div
Companies: PTAL GHH IGP MSLH PINE NXQ EQLS NXR AXL
Companies: Windward Ltd.
IQGeo’s trading update shows FY23 revenue of at least £44.2m +6% ahead of our previous forecast of £41.7m, FY23 EBITDA at least +5% ahead at £6.4m, and FY23 net cash +23% ahead at £11.0m. Excellent execution of the land and expand strategy has scaled organic exit ARR +50% yoy to £21.1m, with record order intake +40% yoy to £56.9m, and net recurring revenue retention increasing to 132% from 108% in FY22. Remarkable organic revenue growth of +56% has driven +66% revenue growth, and FY23 gross marg
Companies: IQGeo Group PLC
Companies: OHT PCIP BRCK SND CORA