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AvH reported strong H1 results, with all core segments contributing positively to the group net result, and even surpassing the pre-COVID-19 high in H1 19. With a record order book for Marine Engineering & Contracting, record inflows for its Private Banking segment and a reshuffling of the real estate business following the Leasinvest and Extensa merger, the current outlook is certainly bright, confirmed by management as it anticipates a record net result (excluding capital gains) in 2021.
Companies: Ackermans & van Haaren (ACKB:EBR)Ackermans & van Haaren NV (ACKB:BRU)
AvH released FY20 results that came just a hair below our estimates, serving as proof of the resilience brought by its diversified portfolio of assets. Private Banking closed a strong year that saw its AUM climb to a record €54bn, driving a net result contribution that helped offset the pandemic-led weakness at DEME. The still sunny outlook for Private Banking and an improving scenario for dredging thanks to a record €4.5bn order backlog should support AvH’s positive tone for 2021.
The holding company’s H1 release put in evidence the benefits of its broad sector exposure, with the better than expected performance from its Private Banking segment and a timely disposal in Marine Engineering & Contracting leading to a positive group net result despite a challenging first half for many of the HoldCo’s core segments. The dividend proposal and better visibility supports AvH’s more encouraging outlook in H2.
Companies: Ackermans & van Haaren NV
Despite a challenging year for the Marine & Offshore division, the solid FY19 release for AvH was led by the other segments, as they made up the shortfall of the prior ‘growth engine’ and delivered a record net profit for the holding company. Thanks to a successful disposal in senior care, AvH benefits from a solid financial position that will allow it to carry out investments in 2020.
The muted performance in the dredging and offshore activities carries on in Q3, with 9M19 revenues from DEME (AvH’s prime growth driver last year) staying flat versus 2018. It appears that we will have to wait for a tailwind for the offshore wind business until 2021 at the earliest. Nonetheless, the successful sale of AvH’s stake in Residalya is likely to lead the company to post a record net profit result in FY19.
After a record year in 2018, AvH’s prime growth driver appears to have run out of breath. However, although the offshore wind energy business saw its revenues decline over H1 19, traditional dredging picked up the slack and an opportune disposal in senior care lifted the group’s profits to record levels. Expectations for the full year remain flattish as major investments in capacity expansion in marine & engineering are expected to arrive in 2020.
AvH’s growth pulled once again by the offshore activity. Almost all segments, except energy & resources, posted positive performances.
DEME benefits for the third quarter in a row from the growth in the offshore wind energy activity, which offsets the slowdown in the dredging. FY 18 net income is expected to be slightly lower than the €302.5m achieved in 2017.
The offshore wind energy activity is AvH’s growth driver. It is capital intensive and reduces the marine engineering business’s volatility. It may face competition though.
Will the wind-propelled Marine division in Q1 18 start to change the AvH balance?
AvH is a diversified holding company active in various fields: Marine Engineering & Contracting, Private Banking, Real Estate & Senior Care and Energy & Resources. Marine Engineering & Contracting is the holding’s main activity (83% of 2017 overall revenues).
The market for large traditional, infrastructure-type dredging works is subject to strong cyclical fluctuations on both the domestic and international markets but also offers a promising outlook in the longer run. 40% of the dred
Research Tree provides access to ongoing research coverage, media content and regulatory news on Ackermans & van Haaren NV.
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Companies: Gattaca plc
Further international potential for the deployment of Powerhouse’s waste to hydrogen technology is emerging in the form of a LoI between partner Hydrogen International and Mitsubishi Heavy Industries. Clearly this is a strong partner and we identified Japan is a strong area of opportunity in our view.
Companies: Powerhouse Energy Group PLC
Mpac, the specialist high-speed packaging and automation solutions provider, supporting the roll-out of next-generation technologies, has today (12 January 2022) published a FY21F trading update (Y/E December). Overall, despite the operational challenges, Mpac’s high-quality, agile and resilient business model has come to the fore. The Group has reported year-on-year (yoy) growth in order intake, revenue and adj. PBT; its ‘One Mpac’ business model continues to progress strongly, in our view. As
Companies: Mpac Group PLC
JOHN MENZIES+ (MNZS, BUY at 315p) – Note Publication: Evolutionary trends…
MARKS & SPENCER+ (MKS, HOUSE STOCK at 253p) Q3 TS – FY22 guidance firmed up, c5% underlying upgrade
NORTHBRIDGE INDUSTRIAL SERVICES+ (NBI, House Stock at 174p) - Further progress in Tasman disposal
BUNZL^ (BNZL, BUY at 2723p) – Note published: Solid strategic outlook
TESCO^ (TSCO, BUY at 292p) Q3 & Christmas TS – a beat to expectations and so further FY22 upgrades (c5%)
HILTON FOOD G
Companies: IDEA BRK ASC PFG MAB HFG TSCO BNZL NBI MKS MNZS
The Group has issued an in-line trading update for the first half of the current financial year and confirmed period end net cash (pre-IFRS 16) of £22.5m. Avingtrans has also announced that it has increased its shareholding in Adaptix to 11.9% at a cost of £1.5m. Adaptix and Magnetica have product launch plans that are convergent and there is clear benefit in the companies working in close collaboration as they bring about a transformation in (small-scale) diagnostic imaging. The funds are to be
Companies: Avingtrans plc
Companies: Ilika plc
Companies: Kier Group plc
Plant Health Care and Wilbur Ellis hosted a joint webinar to discuss the strategic partnership. We highlight our key takeaways below, all excellent in our view. We see 2022 as the inflection year for PHC. We expect upward pressure to current forecasts, good news flow from Brazil on the launch of Saori and US registration of PHC279 as well as increasing penetration in Europe. The scale of key distribution partners is a massive endorsement. Buy
Companies: Plant Health Care PLC
Trading through Q3 and into Q4 to date has proven to be strong and not blunted by any of the headwinds that management held caution against at the time of reporting its Interims (on 1 December). Taylor Maxwell, and within that its timber merchanting division, has outperformed expectations and consequently management is now guiding to FY22E EBITDA of at least £32m, 13% ahead of our previous estimate and a baseline for FY23E from which it can still feel confident of growing profits by 20% plus. Ma
Companies: Brickability Group PLC
Capital Limited has released its Q4 and FY2021 trading statement this morning. Overall, it shows 2021 was an outstanding year for the company with revenue growing an impressive 68% to $226.8m (above the latest guidance of US$220 -US$225 million) and most other operating metrics growing with it. The company enters 2022 with an ongoing tailwind from the commodity markets, the highest rig count in its history, Sukari at full speed and the MSALABS business at an inflection point for growth. In other
Companies: Capital Limited
Power reliability testing group Northbridge has today updated the market on the disposal of its Tasman oil drilling tools division. The exit from Malaysia and Singapore is now finalised and the exclusive discussions on the sale of the larger Australian and New Zealand units are progressing. The Board aims to give a more detailed update on this disposal within the next few weeks. Reflecting this process, the Tasman MD is standing down. Northbridge performance for 2021 remains in line with managem
Companies: Northbridge Industrial Services plc
We believe the narrative for the UK equity market remains very good. Some inflation appears embedded in markets and economic growth seems robust. We saw investors show caution into the end of 2021 and so have cash to deploy in our view. This has been corroborated by investor feedback we’ve had already this year. The UK equity market is materially cheaper than global equities on a relative basis so asset allocators have to be looking at UK equities while UK 2022 GDP growth is likely the best of t
Companies: AFM ANX AXL CYAN GLAN MODE OBI MATD SEN SOM WSG
Companies: Wincanton plc
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Universe Group has left AIM following a takeover by Inform Information Systems Limited
What’s cooking in the IPO kitchen?
Hercules Site Services a technology enabled labour supply company for the UK infrastructure sector, intends to float on AIM. Hercules is seeking to raise approximately £5.5m to rapidly deliver on the significant demand it is experiencing for its diverse range of services across the UK infrastructure sector, including to scale up its operati
Companies: SPA AREC BBSN CCS EPWN GETB MRL ORPH PEN
Powerhouse’s development partner, HUI, has raised £3m which will help to secure development progress in Europe as well as fund cashflow to Powerhouse under the existing exclusivity agreement covering Poland, Greece and Hungary. We see the move as helping to de-risk progress outside the UK with HUI looking towards its first waste to hydrogen project at Konin in Poland as well as making early progress at a potential site in Bulgaria.