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Today's news and views, plus announcements from: NG., AUTO, IMI, BME, TW., BBY, GFRD, RWI, & UOG.
Companies: IMI plc (IMI:LON)Galliford Try Holdings PLC (GFRD:LON)
Capital Access Group
Under the leadership of Roy Twite, IMI has gradually but surely become an improved business. The ingredients include initiatives to drive organic growth, well-thought-out acquisitions, less cyclicality, better margins and, last but not least, a very competent management. However, when we look at the market’s perception of today’s IMI, we sense a valuation gap and believe that IMI deserves a higher valuation. As such, IMI is worth a look at the current price.
Companies: IMI plc
AlphaValue
IMI posted a good first half result which was slightly above expectations. Revenue growth was positive across all divisions but was particularly strong in Critical Engineering. Adjusted operating profits increased due to margin expansion in all three divisions. CFO and FCF improved due to higher profits and reduced working capital. IMI also declared an interim dividend of 9.1p and unveiled a new reporting structure for future results. Finally, IMI confirmed its revised outlook first provided dur
Today's news and views, plus announcements from: IMI, IAG, RMV, STAN, ITRK, LWDB, WHI, NOG, PAY, SEPL, & OBE.
Companies: IMI plc (IMI:LON)Seplat Energy PLC (SEPL:LON)
IMI delivered a decent set of full year results with a marginal beat on profitability versus the consensus. In 2022, the group took another step forward towards its target of a 20% margin across the cycle and delivered restructuring benefits ahead of the plan. Order growth in Critical was encouraging, whereas orders from Growth Hub exceeded expectations. The board will propose a dividend of 25.7p for 2022. The outlook for 2023 points towards another year of revenue and profit growth.
IMI posted a decent set of results that were above our expectations. Revenues grew organically despite adverse effects from lockdowns in China and the disposal of the Russian operations. Adjusted operating profits also grew as all divisions saw an expansion in adjusted operating margins. The company also made good progress on its restructuring programme as well as in the Growth Hub. CFO was lower due to working capital build-up. For the 2022 outlook, the company expects adjusted EPS to exceed 10
IMI reported a good set of results with higher than expected profitability that helped it to reach the ceiling of its adjusted EPS guidance. Revenue growth was driven by attractive demand from most end-markets even as recovery continued in others. CFO was decent and included higher working capital investments. The group completed its £200m buy-back programme and will propose a final dividend of 15.8p per share. Regarding the FY22 outlook, the group expects adjusted EPS to exceed 100p.
IMI released its revenue figures for Q3 and they were slightly better than expected. All three divisions saw organic growth and are on track to reach their FY21 targets. With this update the group also raised its outlook. Additionally, the group is on track to finish its share buy-back programme of £200m.
IMI’s H1 revenues were in line with our expectations but profitability and margins were ahead of them. All three divisions registered growth in revenues and margins. FCF more than doubled. As a result, the company raised its FY21 outlook again. The company also proposed an interim dividend of 7.9p, an increase of 5% and has made good progress in its buy-back programme.
Like other capital goods companies under our coverage, IMI too witnessed a stronger second half. The full-year results were, however, slightly below our expectations. The group’s restructuring efforts bore some fruit but also experienced a delay due to the pandemic. The proposed dividend matched our expectations but the FY21 outlook is rather soft from our point of view.
IMI’s H1 figures proved to be resilient in times of crisis, benefiting from management’s actions on the group’s cost structure. The restructuring is on track and management reintroduced new guidance for 2020, assuming no deterioration in H2, and an adjusted EPS of 65p to 70p. Nevertheless, the overall business environment remains under pressure with very limited visibility ahead.
IMI continued on delivering encouraging results in H2, reflecting a solid result from its ongoing restructuring. FY19 was in line with our expectations, while the operating margin came in 3.9% above. Like many corporates, IMI was unable to quantify the ultimate impact of the Coronavirus outbreak on its supply chain and demand. We, however, appreciate the good progress delivered by the company.
Research Tree provides access to ongoing research coverage, media content and regulatory news on IMI plc. We currently have 0 research reports from 10 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
Companies: Renold plc
Cavendish
Companies: BILN ELCO NXQ CUSN ATG
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
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
Companies: 88E RNO TRIN KRM EXR BOOM
Companies: Iofina plc
Canaccord Genuity
Companies: PLL TLG HZM SAV KAV KP2 SVML
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.
Companies: Severfield Plc
Progressive Equity Research
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
Edison
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.
Companies: Invinity Energy Systems PLC
Longspur Clean Energy
Liberum
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
Companies: Itaconix plc
Companies: ATOME PLC
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
Companies: AEIT ROOF DGI9 INPP GSF SEIT USFP HICL ORIT BSIF TRIG NESF SEQI HEIT GRP GCP FSFL 3IN AERI PINT RNEW BBGI GSEO DORE TENT GRID CORD HGEN AEET
Hardman & Co
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