Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on FOMENTO DE CONSTRUC Y CONTRA. We currently have 8 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
FOMENTO DE CONSTRUC Y CONTRA
FOMENTO DE CONSTRUC Y CONTRA
FCC: adjusted FCFE still negative but expected to improve in 2017
06 Feb 17
Key information: • Net revenue fell 8.1% to €5.95bn. • EBITDA rose 2.3% to €833.7m. • EBITDA margin rose from 12.6% in 2015 to 14.0% in 2016. • EBIT dropped 71% to €93.6m. • FCC 2016 net loss rose to €165.2m from a €46.3m loss a year earlier. • Loss compares with €146.2m average loss predicted in a survey of six analysts. • FY profit was hit by a goodwill adjustment in cement of €299.9m in Q3. • FCC reduced its net debt by €2bn.
Misleading growth in EBITDA, adjusted FCFE still negative
27 Oct 16
Key information • Net sales decreased by 8.6%. • EBITDA increased by 3.4%. • EBITDA margin increased by 1.6pp to 14.0%. • EBIT was negative due to the impairment of goodwill in the cement business for €299.9m. • Net debt decreased by 23.7% to €4.2bn compared to the end of 2015 thanks to a capital increase in Q2. • Net financial expense decrease by 22.4%.
Extraordinary items boosted the bottom line, FCC still overpriced
01 Aug 16
Key information: • Net sales decreased by 8.7%. • EBITDA up by 1.3%. • EBITDA margin improved by 130bp to 13.0%. • EBIT decreased by 22.1%, but adjusted EBIT increased by 12.1%. • EBIT margin worsened by 70bp to 4.2%. • Income from continuing operations increased by 12.9%. • Net income at €54.8m in H1 16 versus €-11.9m in H1 15. • Strong operating cash flow generation at €324.8m in H1 16 vs €-131.1m in H1 15. • Net debt decreased by 19.5% to €4.4bn. • Backlog decreased by 3.1%.
Poor performance due to the strong contraction in the Construction division
09 May 16
Key information: • Revenue declined by 6.8%. • EBITDA decreased by 9.3%. • EBITDA margin at 11.1%. • EBIT decreased by 25.5%. • €17m net loss in Q1 16 versus a net profit of €6m in Q1 15. • Construction revenue declined by 19%. • Environmental activities accounted for c.90% of EBITDA. • Undersubscription of the capital increase.
Still in debt-overhang, FCC posted results roughly in line with consensus
29 Feb 16
h2. Key information • Revenue increased by 2.2%. • EBITDA increased by 1.3%. • Net loss of €46m vs net loss of €742m in 2014. • Adjusted EPS of €0.16 vs consensus of €0.13. • Backlog decreased by 1.5%. • No improvement in operating cash flow which remains roughly stable compared to 2014. • Increase in net debt by 9% to €5.5bn. • FCC is committed to taking the necessary steps to increase its capital by €710m at an issue price of €6 per share. The transaction is intended to strengthen the group's capital structure and reduce interest-bearing debt. • The company will, however, remain overleveraged.
Board of Directors approve capital increase
22 Dec 15
FCC’s management announced on the evening of 17 December that a capital increase of €709.5m was approved by the Board of Directors. In our opinion, the capital increase is good news. The price seems fair for current shareholders (the previous capital increase was done at a 50% discount at €7.5 – please see 13/11/2015 Latest – whereas this one is done at a premium). A €709.5m capital increase at €6 per share means that 118.5m shares have been raised, namely a c.20% difference with our forecast. This will allow the company to buy back the tranche B debt (see table below) and to avoid a costly dilution from the conversion of tranche B debt to FCC shares, which was the main factor in the sharp decrease in the share price during the last few months in our opinion (the lower the share price, the higher the potential dilution from conversion, which engendered a vicious circle). p=.*Debt restructuring* p=.!debt.PNG! p=._Source: FCC’s presentation_
N+1 Singer - T. Clarke - Strong conclusion to FY16, record order book
28 Mar 17
After significant upgrades at the time of the full year update (PBT forecast +43% FY16; +14% FY17), today’s results are c.4% ahead of our expectations at the PBT level and show strong growth on the prior year (PBT +48%). All regions achieved positive growth in revenue. The outlook statement refers to a still growing order book (£350m at the end of February vs. £330m at the year end) and the strength of recent trading, with London & the South East and Scotland said to be particularly positive. The Group has reiterated its ambitions to improve margins, but we have not incorporated this into our forecasts at this stage. We have nudged up our FY’17 forecasts (PBT +5%) and introduced FY’18 forecasts that imply 2% PBT growth. Despite the well justified bounce in the share price, the shares still trade at a significant discount to the peer group (7.6x FY17 PE, 4% yield).
Panmure Morning Note 29-03-2017
29 Mar 17
We are cutting our recommendation to HOLD as we see little upside from current levels given the lack of positive surprises in today’s trading update. Multiples of 4.4x 2017 sales and 17x 2017 EBITDA imply an expectation of at least slightly exceeding expectations. We had assumed that acquisitions will provide the momentum until organic investments deliver. However, acquisitions are proving elusive and excess cash is diluting returns. Moreover, our forecast relies on at least one order in vehicle simulator market, which has yet to be announced. The management has shown that it can use the financial markets to raise equity but it now needs to show that it can deploy excess equity productively.
N+1 Singer - Severfield - Strong H2 drives upgrades; CEO temporarily steps down due to ill health
28 Mar 17
Severfield’s trading update highlights that trading during H2 was strong and the Group now expects results to be ahead of expectations. Cash flow performance has been similarly strong with net funds at the year end also expected to be ahead of expectations. The strong performance was driven by both a better than expected revenue performance and better than expected growth in the operating margin. We expect to increase our FY16 PBT forecasts by c.9% to around £19.5m. In addition, we are disappointed to see that Ian Lawson (CEO) has taken a temporary leave of absence due to physical ill health. John Dodds (non-executive Chairman) will step up to Executive Chairman on an interim basis and Alan Dunsmore (FD) has agreed to assume the role of CEO on a similar basis. This should ensure the continuity of the business whilst Ian is recovering. The outlook for Sevefield remains positive and the Group has reiterated its medium term target to double PBT from £13.2m in FY16 by FY20. We remain positive on Severfield (one of our best ideas for 2017) and continue to see clear potential for it to outperform its medium term targets.
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)