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Research Tree provides access to ongoing research coverage, media content and regulatory news on KUONI REISEN HLDG-REG(CAT B). We currently have 4 research reports from 1 professional analysts.
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KUONI REISEN HLDG-REG(CAT B)
KUONI REISEN HLDG-REG(CAT B)
Kuoni is taken private by EQT
02 Feb 16
Kuoni announced today that the private equity house EQT has launched a cash public tender offer for all publicly held registered shares of Kuoni for a price of CHF370 per registered B share. The offer represents a premium 34% to the current 60-day average share price and a 60% premium to the average share price since the 5 January when Kuoni confirmed early-stage discussions with potential bidders. Should the deal be completed, Kuoni should be delisted between Q2 and Q3 2016.
Speculations of a potential takeover of Kuoni
05 Jan 16
The press announced yesterday that the Swedish buy-out firm, EQT Partners AB, could be a potential bidder to takeover Kuoni. For several weeks, rumours have emerged about a potential buy-out of Kuoni by private equity investors (including BC Partners, Permira Advisers and Partners Group). This morning the board has admitted that the group has received preliminary approaches from third parties as regards potentially taking Kuoni Group and its businesses private. The board highlighted that talks with potential bidders were only at an early stage and there is no certainty that an offer would be made. Representatives of EQT declined to comment. The stock, which is worth CHF1.15bn, has gained 1.9% this morning following the group’s press release.
Brand new management and extensive restructuring announced
13 Nov 15
Kuoni unveiled weak 9m 15 results, below consensus and our expectations. One-off impacts of the disposal of the European TO operations and unfavourable FX are behind the loss of CHF293m (from CHF52.5m net profit in 9m 14). Still, Kuoni posted 7.6% sales growth LFL in 9m 15, on the back of robust VFS Global (+26.2%) and GTD (+10.6%) but the strengthening of the Swiss franc was highly penalising (-7.7% impact on 9m 15 sales) as well as the struggling GTS division (-1.1% LFL in 9m 15 sales). Within the business, the Destination Management Specialists declined sharply (-10% in sales in 9m, -CHF14.1m EBIT loss in 9m), affected by weak demand from Russia (Middle East and Africa were the most impacted) while the Group Travel business reported 4.6% organic growth in sales, boosted by China and Taiwan. Marketing initiatives made at the GTD division (higher personnel costs and investments in technology), and which came to an end as planned, proved successful as reflected in the improved gross profit in the key summer season. The GTS division however was hit by the collapse in Japanese demand (increase in the consumer tax rate in FY14, the devaluation of the yen) which is largely behind the widened EBIT loss of CHF36.2m (-CHF6m in 9m-14). As a result, EBITA dropped from CHF88.4m to CHF56.3m while EBIT collapsed by 69% from CHF66.4m to CHF20.5m. The latter was also penalised by higher costs invested in the growth strategy of GTD and VFS Global but also the CHF16.4m of impairments related to the GTS restructuring programme. Also, a time-bound contract with the South African authorities has impacted EBIT generated by VFS Global in Q3 15.
A penalising exposure to difficult Asian markets
02 Sep 15
Kuoni announced mitigating organic trends in H1 15, while it was hammered by the conversion into Swiss francs. Revenue grew by 6.8% LFL in H1 15 which was more than offset by the appreciation of the Swiss franc (-7.4%). The VFS Global division (visa processing services) experienced the highest LFL growth (+28.8% vs 14.5% in H1 14) with a 23% rise in EBITA yoy. A temporary contract with the South African authorities in FY14 and H1 15 has contributed to this growth. Global Travel Distribution (GTD) showed 10.9% LFL growth, boosted by the Asia/Pacific region and China in particular but showed a significant drop in earnings (EBIT at CHF3.2m vs CHF15.1m in H1 14) penalised by marketing and IT-related initiatives. The GTS division was weak (-4.4% in LFL sales) despite a strong growth seen in China and Taiwan. This was attributable to declining Japanese demand caused by the increase in the consumer tax rate in FY14 and the devaluation of the yen which made travel more expensive. We recall that Asia/Pacific accounts for 81% of Global Travel Services revenues (source market) with a major part coming from Japan and China, while Europe stood as the most popular destination for holidaymakers (93% of sales). Gross profit came in 3.5% below last year's level, which is explained by tough comps (proceeds from the sale of a property in Zurich in FY14) and higher costs incurred in the GTD and VFS Global strategy, all impacting reported EBITA (-63% yoy). Reported net income from continuing operations slipped to CHF5.9m (vs CHF28.4m last year).
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)
Small Cap Breakfast
28 Mar 17
Path Investments—Publication of prospectus from the Energy Investment Company. Raising £1.4m. Admission due on or around 30 March | Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April | Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally. Fundraise TBC. Admission expected 7 April. | K3 | Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. | Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Tufton | Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
Strong set of full-year results, comforting guidance
23 Mar 17
GVC released a solid set of full-year results. Key highlights Pro forma Net Gaming Revenue (NGR) was up 12% at constant currency, or 9% on a reported basis at €895m, in line with the February trading update. Pro forma clean EBITDA was up 26%, at €205.7m, bang in line with AV’s €206m forecasts, translating a three percentage points increase in margin added to the growth in revenue. c.69% of NGR was derived from markets either regulated (including those in the process of regulating) and/or locally taxed (68% in 2015), while 95% of the revenues were derived from GVC’s proprietary platform. Net debt stood at €131.5m or 0.6x clean EBITDA. The board proposed a second special dividend of €0.15, giving a total dividend of €0.30 per share for the year, beating market expectations. Guidance The start of 2017 seems promising as management said that daily NGR had increased by 15% (+16% cc), translating into an 18% (+19% cc) growth in sports labels’ daily NGR and a 6% (+8% cc) increase in games labels’ daily NGR. The gross win margin reached 9.5% while it should move towards the 10% mark on the long term. Regarding dividends, the group confirmed a progressive distribution policy and expects to distribute at least 50% of the group’s free cash flow, starting from 2017. Debt refinancing In the first quarter of 2017, the group issued a €320m Senior Secured Term and Revolving Facility, composed of a €250m term loan (maturity 6 years) and a €70m revolving credit facility (maturity 5 years) used to pay down the Nomura Loan in full.
N+1 Singer - Morning Song 23-03-2017
23 Mar 17
eg solutions (EGS LN) Re-focusing on sales is delivering rewards | Futura Medical (FUM LN) FY results: continued clinical, regulatory and commercial progress | Halfords Group (HFD LN) Confidence in FX mitigation grows; stay at BUY | IFG Group (IFP LN) Top line growth but earnings pressures remain | Realm Therapeutics (RLM LN) FY results in line; on track for Phase II start in 2017 | Safestyle UK (SFE LN) Another good full year performance but valuation up with events | WYG (WYG LN) Mixed conclusion to FY17, reassuring FY18 outlook
Driven by distribution
24 Mar 17
Following results earlier this month, we publish our new forecasts following the segmental consolidation of divisions, and remain cautious relative to consensus (c.2% below at the PBT level in FY18E) mainly due to our UK assumptions. We believe the valuation is relatively attractive, and Inchcape is well placed for further growth given the strength of its balance sheet as it seeks to further utilise its unique global market position.