Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SGS SA-REG. We currently have 4 research reports from 1 professional analysts.
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Acceleration of earnings growth required
18 Jul 16
The company reported first half year results (no quarterly results available). Revenues increased 5.4% and 7% at constant currency of which 3.6% organic and 3.4% acquisition driven. Management acquired ten companies for a total of CHF99m. These companies contributed CHF99m to revenues and CHF1m to the operating performance. EBIT jumped 18.3% to CHF394m and the EBIT margin increased from 12.1% to 13.6%. The operating performance excluding restructuring charges of CHF64m in 2015 remained unchanged. EBITD declined from CHF577m to CHF563m. The market expected EBITDA to reach CHF587m.
Solid but not exciting
21 Jan 16
The company reported final 2015 numbers. Revenues declined by 2.9% to CHF5.7bn but increased by 3.6% based on constant currency. Organic growth was 2% and 1.6% driven by acquisitions. The company faced a difficult environment especially due to the strengthening of the Swiss Franc against major currencies and the fall in commodity prices. Adjusted EBITDA reached CHF1.19bn and increased by 3.4% at constant currency. Real EBITDA however declined by 8.1% to CHF1.14bn. The EBITDA margin declined from 21.2% to 20%. EBIT dropped by 12.7% to CHF822 and the EBIT margin declined from 16% to 14.4%. Net income also dropped by 12.7%, and stood at CHF549m compared to CHF629m in 2014. The dividend will remain unchanged from the prior year at CHF68 per share.
Not giddy with excitement yet
02 Nov 15
On its capital markets day in Chile/Peru, management announced some minor changes within the group. The regional structure will be optimised from 10 to 8 to improve efficiency. The business in Northern and Central Europe will be merged with Southern Central Europe. Central America will beintegrated into South America. In addition, management will merge three Asian regions down to two by the end of 2016. Management is also planning to increase the footprint in North America and China. In North America, acquisitions will be the key element to drive the expansion of the business. In China, management will shift from exports to the local market. Strong growth is expected in Industrial, Food and Transportation. In addition, the company launched a focused programme to reduce costs. One operational business model, three shared service centres across the world and a team of 1,500 employees should help to reduce the cost base by at least CHF20m per year. Another efficiency programme (procurement savings) was launched and is expected to save CHF180m between 2015 and 2017. Furthermore, the net working capital, which will remain the key driver of the operating cash flow, will be structurally improved. In January 2014, the company changed its dividend policy. The dividend of CHF65 per share is the floor for 2013 up to 2016. For the current year, we expect a dividend of at least CHF68 per share. Around CHF500m of the share buy-back programme of CHF750m will be used for share cancellations.
Solid but not really exciting
20 Jul 15
The company reported half year results. Revenues declined 1.9% to CHF2.75bn mainly due to the strength of the Swiss franc. At constant currency revenues increased 3.4%, of which 1.8% was derived from organic growth and 1.6% from acquisitions. The lower than expected growth was mainly impacted by reduced and delayed capex from the oil and mining industries. The Environmental Services, consumer testing services and automotive services were the main contributors to revenue growth. EBIT declined 16.1% to CHF333m and the EBIT margin reached 12.1% compared to 14.2% in H1 14. Adjusted EBIT including restructuring charges and other less pleasant cost items declined 1.9% to CHF412m. The adjusted EBIT margin remained stable at 15%. Net income also dropped 16.1% to CHF214m. The company issued two bonds with a total volume of CHF550m. The CHF325m bond with a coupon of 0.25% will mature in 2023 and the second bond with a total volume of CHF225m with a coupon of 0.875% will mature in 2030.
Panmure Morning Note 30-11-2016
30 Nov 16
RPC, the international plastics products design and engineering group, has delivered yet another strong set of results (1H17 EBITDA +65%, EPS +45%). At the interim stage PBT was +66% (materially better than we had forecast). Topline growth has principally being driven by acquisitions (GCS + BPI), though organic remains a feature (and crucially remains at levels consistent with FY16). The two recent acquisitions have quickly been assimilated into the panEuropean platform and management has raised cost synergy guidance (again).
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
02 Dec 16
On 30 September 2016, when the company announced its full year results, it reported that the UK business had seen a slow start to the year, with particular weakness in repair and renewal spending by the NHS as well as “reticence” in the education sector. However, with the UK only representing about a third of the business, this weakness was expected to be more than offset by the positive effect of a weakened sterling on its overseas business, given the benefits for competitiveness and margins.
N+1 Singer - Morning Song 29-11-2016
29 Nov 16
Vp has reported another impressive set of interims, confirming strong growth in most markets and a positive outlook. Recent acquisitions are bedding in well and the full year outturn is set to exceed previous expectations (5%/6% EPS upgrades in FY17/FY18). The recent Capital Markets Day provided a reminder of Vp’s qualities (specialist focus, high returns, strong cash generation) and its growth potential, which in our view are not reflected in a modest <11x P/E rating. We firmly believe the shares are due a re-rating and see intrinsic value in excess of 800p.