Lane keeping 2022 CMD

Volvo came back on its 2020 CMD with a service-focused top-line growth strategy triggered by the transition to EV and automated trucks. Management sees EVs generating 1.5x more revenues than Diesel versions over their life cycle, >5x for autonomous solutions. The pluri-engine scenario is still up to date but with low visibility on the development costs called by the electrification and automation of the portfolio. Note, however, that truck production looks to be better set up than autos to integ

FY21 results: flexibility has a cost

Q4 21 operating margin was broadly in line as sales beat consensus on the back of higher pricing and higher deliveries and margins were below estimates due to headwinds on the cost side. The reopening of the order book pumped the truck order intake but management keeps on its lead time containment strategy entering 2022. Extra dividend was expected higher. Investment needs to prevent a too fast increase in short-term shareholder returns.

Solid Q3 EBIT – Chinese slowdown likely contained

Q321 sales were in line with expectation, while Volvo posted a 9% beat on operating profit as pricing, CE product mix and service volumes offset the inflation in input and logistics costs. This indicates satisfactory handling of the supply chain bottlenecks despite management’s stress on low visibility. Order intake does not reflect the strong demand due to selectivity, to so as to avoid overlengthening the backlog. The FY21 market forecasts were in line with expectation while those for FY22 loo

Strong Q2, but supply-chain could act as a brake on H2 demand

Q2 21 globally in line with consensus as Trucks saw the sequel of one month of production stoppage by record demand for CE. The market outlook for H2 is bright, outlined by raised forecasts on Chinese trucks and CE in all regions except China. Nevertheless, peaking raw material and freight prices, along with probable production halts are on the menu for H2, putting both margins and WC at risk.

Q1 21: solid year ahead despite supply chain constraints

Q1 21 was better than expected on the margin front (12.6% adjusted operating margin), while sales surged by 13% on the back of strong demand for new products and services. Net order intake was also remarkable as truck orders doubled yoy. Despite the risk of semiconductor shortages in the supply chain, Volvo raised its HD truck market outlook by c.10% in China while confirming its FY21 expectations the other regions.

Finals, ahead of expectations

Volex has delivered final results that are ahead of expectation. Organic revenue growth of 19% reflects growing customer demand, alongside a particularly strong performance in EV which saw sales almost double. The Group has demonstrated its ability to manage both supply chain challenges and inflationary cost increases, albeit with a short time lag. Recent acquisitions have integrated well, building exposure to attractive higher growth market segments. The Group’s global footprint has resonated w

AFC Energy (AFC LN) - Kier agreement

AFC has signed an agreement with another leading UK construction/infrastructure player, this time in Kier Group. We believe this further endorses our long term thesis that AFC will play an active role in encouraging the transition away from diesel-fuelled temporary power solutions. We believe its technology could help the sector make clear strides towards a net zero future, which has to commence now if they are to reach this target by 2045. The share price has been weak of late (in line with man

AFC Energy (AFC LN) - A year of deployment

Interim results from AFC contain few surprises and the group remains on track for the full year. The two main deltas versus our (unpublished) forecast were that the £2m stage payment from ABB were treated as deferred income rather than as revenue and that income from R&D tax credits was below our estimate. The first issue is an accounting issue which has no bearing on cash flow, while the second is likely a timing issue. On its own, the tax issue explains why period end cash, at £48.6m, was £1m

Cenkos: Healthcare Sector - Ward Round

Weekly round-up of AIM-listed healthcare news. Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics

ITM Power - Trading update

Trading update

Spectra Systems Update

Spectra Systems Corp (SPSY.L), a global leader in machine readable high speed banknote authentication, brand protection and gaming security technologies, recently announced a further expansion of its sensor development phase contract with a central bank customer. The amendment, related to expanding the flexibility of use for the new generation of sensors, is worth an extra $2m and will be phased over the next three years and results in forecast upgrades at the top and bottom lines.

SHORE CAPITAL - Judges Scientific (JDG) - House Stock at 6860p

Hybridan Small Cap Feast 28/06/2022

Joiners: No Joiners Today. Leavers: Raven Property Group has left the Main Market. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or req

Hybridan Small Cap Feast 16/06/2022

*A corporate client of Hybridan LLP Dish of the day Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends to join AIM. LifeSafe has developed what the Directors believe to be market disrupting, eco-friendly fire safety protection products to both protect (via fire extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires. At the cent

Powerhouse Energy - Full Year Results Reflect Progress

Powerhouse’s full-year results reinforce a picture of strong progress with considerable development of both the company and initial waste to hydrogen projects using the DMG technology. This is reflected financially, and cash burn is manageable with £9.8m of cash at the period end.

Hybridan Small Cap Feast 22/06/2022

Dish of the day Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Visum Technologies seeking admission to The AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June. LifeSafe Holdings, a fire safety technology business with innovative fire safety p

Symphony Environmental (SYM LN) - Supply agreement with major customer

SYM has announced an exclusive supply agreement for its d2p (designed-to-protect) antimicrobial technology with a major customer. Grupo Bimbo (NASDAQ: BIMBOA) is one of the largest bread manufacturers globally. The company has conducted extensive trials of d2p for its plastic bread packaging, with the aim of extending the life of products, improving hygiene, and reducing waste. The company has asked SYM to supply d2p for its nominated bread packaging manufacturers across the American continent f

Roadmap to significant profit growth

With a clear roadmap of new digital inkjet products and an ambitious management team focused on gaining (or retaining) significant market shares across the segments that make up its $1bn addressable market, Xaar is positioned to grow strongly. Management has already demonstrated its abilities in turning the business around, and we believe it is far from clear that the share price fully reflects the opportunities ahead.

Judges Scientific (JDG) – Acquisition of minority shareholding in Bordeaux

The shares now trade on 24.3x FY2022E earnings, versus a peer group trading on a blended 24.9x. Judges' shares more than regained their composure in early 2022, before events in Ukraine and continued Covid concerns (notably China) weighed on sentiment. As a result, some treading of water is likely in our view. But given the strength of the business (we believe earnings risk is towards the upside) and balance sheet, the quality of earnings and the company's continued ability to execute deals on s

SIMEC Atlantis - A Clear Path Forward

SIMEC Atlantis’ full year statement and in particular its going concern statement show that financial risks remain following the decision not to proceed with the Uskmouth conversion. Yet the company has created a path through these risks with the creation of the 240MW Uskmouth battery project and further opportunities at the MeyGen tidal stream project. With MeyGen seeing the immediate benefit of an additional turbine in the water we see the current year as being a better one for the company.