Harwood Wealth (“HW”) has updated on recent acquisition activity: it has secured three targets from the pipeline, with £1.8m total consideration. We leave our forecasts unchanged. HW has developed through a careful mix of small and medium-sized acquisitions. There are further acquisition opportunities under consideration which can be funded from cashflow and balance sheet resources. Alongside embedded growth from acquisitions already made and being integrated, we believe this is not recognised i
Companies: Harwood Wealth Management
HW has reported in line interim results with 28% adj. EBITDA growth leaving our FY19e forecast well covered (48%). We make no changes to forecasts. 5 acquisitions have been completed year to date, with a further 10 at varying stages of progress. A £7m credit facility has been secured, which we think is an optimal route to fund further acquisitions. The shares trade at a discounted 13x PER falling to 10.5x, with potential earnings upside. We think a 160p/share intrinsic value is more appropriate
Harwood Wealth has posted in line final results. Adj. EBITDA is as expected: £6.1m vs N+1Se £6.0m. Earnings growth is strong, reflecting organic growth and annualising acquisitions. Nine bolt ons were completed in the year, a further one announced today, with 2 at signed heads and a further 6 in advanced stages. We do not change our earnings forecasts but take this opportunity to issue maiden FY21 estimates. Shares are trading at an attractive multiple (15x) below the sector before a consolidati
Circassia Pharma (CIR.L) - specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb.
Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019.
Chaarat Gold Holdings—RTO, the Company intends to acquire Kapan Mining and Processing CJSC, which owns the Shahumyan mediumsized
Companies: BLOE SOG HAT HW/ ESC EMR SCLP 9537 HOTC EYE
Kropz, an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana, is looking to join AIM. Offer TBC, expected late Nov
Titon holdings—international manufacturer and supplier of ventilation systems and window and door hardware. No capital raise. Due 10 Dec. Mkt cap c.£22m.
Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seek
Companies: BMV HW/ KGH PLUS TPG 9537 CHRT IKA MNO BRD
Harwood Wealth (HW/ LN) Appointment of Gillian Davies as Interim CFO | Lookers (LOOK LN) Resilient H1 PBT given comp, on track to revert to PBT growth in H2
Companies: Harwood Wealth Management (HW.:LON)Lookers plc (LOOK:LON)
Sensyne Investments - healthcare technology company that creates value from accelerating the discovery and development of new medicines and improving patient care. Raising £60m. Mkt Cap £225m. Due 17 Aug.
Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Offer TBA. Due late Aug.
Vitesse Media (VIS) — To be renamed Bonhill Group. RTO of the trade and assets of InvestmentNews, a B
Companies: NANO VAST TERN DMTR SAVE HW/ EVR FDBK NSCI
Dunelm Group (DNLM LN) Kiddicare - competitor closures and sales transfer | Harwood Wealth (HW/ LN) Interims in line, returns from consolidation continue |
Companies: Dunelm Group plc (DNLM:LON)Harwood Wealth Management (HW.:LON)
Harwood Wealth (“HW”) has reported in line interim results. AuI/M has grown as a product of an organic and acquisitive strategy, which has driven revenue (+44%) and earnings (adj. EBITDA +50%). H1 adj. EBITDA totals 50% of N+1Se FY18e. We leave our forecasts unchanged, but tweak the dividend down by 4-11%. HW has completed 69 acquisitions to date (9 H1’18) and has 18 at non-binding heads of terms. We believe the current 18.5x FY19e PER rating is attractive as the strategy continues to deliver.
Harwood Wealth (“HW”) has provided an update summarising all acquisitions in H1. Nine acquisitions have been completed with £310m additional AuI. Consideration payable totals £10.9m, but part of this will be paid in coming years and is contingent on performance. We do not change our forecasts at this stage with these acquisitions providing only a partial contribution in FY18e. We note an attractive 16x PER (ex-free cash available to make acquisitions). HW will announce interims on 3rd July 2018.
Abzena (ABZA LN) Forecast update | Carclo (CAR LN) Review completed, reassuring outlook | Driver Group (DRV LN) Continued earnings momentum | Fulcrum Utility Services Limited (FCRM LN) In line results; Positive outlook supported by strong order book growth | Gooch & Housego (GHH LN) Good H1 18, well set for H2 and beyond | Harwood Wealth (HW/ LN) 9 H1 acquisitions adding £310m AuI, forecasts unch | Renold (RNO LN) Cautiously optimistic | Vp (VP/ LN) A year of significant growth and strategic pro
Companies: ABZA CAR DRV FCRM GHH HW/ RNO VP/ WYG
Consumer Sector Key takeaways from the Consumer reporting season | Harwood Wealth (HW LN) Acquisition of Berkshire-based IFA with £34m AuI | Porta Communications (PTCM LN) Results show progress from reorganisation | Sanderson Group (SND LN) H1 slightly ahead, no change to full year expectations | Sinclair Pharma (SPH LN) FY’17 results in line, US sales team established for Silhouette rollout
Companies: HW/ PTCM SND SPH
Bioquell (BQE LN) In line trading despite FX headwinds | Carador Income Fund (CIFU LN) Significant reset activity post expiration of US risk retention appeal | Driver Group (DRV LN) Sale and leaseback in line with strategy | Harwood Wealth (HW LN) Acquires retirement solutions specialist Plan65 | Midatech Pharma (MTPH LN) FY results in line with expectations, US ops achieve EBITDA breakeven | River and Mercantile Group (RIV LN) AuM +1.1%, -5% EPS forecasts; resilience remains | Safestyle UK (SFE
Companies: BQE DRV HW/ SFE SUMM MTPH
Avast, global cybersecurity provider with 435m users worldwide. In 2017, the Group's Adjusted Billings was $811 million, Adjusted Revenue was $780 million, Adjusted Cash EBITDA was $451 million. Seeking to raise $200m. Due in May | Fundamentum Supported Housing REIT. Raising £150m. Focussed on UK Social Housing assets. Due 2 May | Vivo Energy—retailer and marketer of Shell-branded fuels and lubricants in Africa, Due in May. 100% secondary sell-down of existing Shares by Selling Shareholders, No
Companies: TAM SYS D4T4 PEL ECHO BXPHAR PAT HW/ DRV HARL
Actual Experience (ACT LN) Large-scale deployment and reseller agreement validates opportunity | Dialight (DIA LN) AGM trading update – some progress on operational issues | Findel (FDL LN) PBT growth at upper end of expectations for FY18 | Gresham Technologies (GHT LN) Clareti contract win provides further evidence of positive momentum | Harwood Wealth (HW LN) Refining the board structure, FD stepping back | Lookers (LOOK LN) Vauxhall network changes could be helpful for partners long term
Companies: ACT DIA STU GHT HW/ LOOK
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Cambria Autos has left the AIM following a takeover.
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Light Science Tech Holdings, the controlled environment agriculture technology and contract electronics manufacturing Group to join AIM. Raising £5m. Expected mkt cap £17.4m. Due 15 Oct.
Harmony Energy Income Trust to join the Specialist Fund Segment of the Main Market raising up to £230m. The Company's investment objective is to provide investors with an attractive and susta
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Palace Capital has released a good trading update of for the 6 months to 30 September. The Group has achieved good progress both across the portfolio and in sales achieved at Hudson Quarter. With cash reserves rising, the Group continues to look for value creative opportunities to recycle capital which should realise value for shareholders. Buy
Companies: Palace Capital plc
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Gymshark has started to put together plans for a stock market listing according to City A.M. The company hit a £1bn valuation just over a year ago and boasts customers in more than 130 countries. Gymshark was founded by teenager Ben Francis in 2012 in his parents’ garage with products that appeal to Gen Z consumers. Timing TBA
Rubix Group Holdings, the market leading pan-European distributor of industrial main
Companies: ZOO CUSN ECHO IDEA PURP TEK
Non-Standard Finance (‘NSF’), one of the leading providers of unsecured credit to UK adults, published interim results for the half year to 30 June 2021 on 28 September. Overall, these showed a significantly lower loss before tax due to improved operational performance and lower below the line charges. The group also reported that current trading was ahead of plan primarily due to strong collections performance. Discussions with the FCA regarding the redress programme for guarantor loans custome
Companies: Non-Standard Finance Plc
NextEnergy Solar Fund’s investment in NextPower III opens up geographic opportunities in Latin America, Asia and other parts of Europe much earlier than could have been delivered by direct project investment. Additionally, the JV announcement with energy storage system (ESS) developer Eelpower is also an attractive way to accelerate portfolio diversity as well as opening up the door to further asset growth. By working with partners experienced in different geographies and the energy storage segm
Companies: Nextenergy Solar Fund
What’s new: Tatton’s interims trading update confirm it has “delivered strong growth in all its key metrics during the period including revenue, profits and assets under management” (AUM). It is “trading in line with expectations”.
Companies: Tatton Asset Management Plc
AuM pushed on in Q2, hitting £10.8bn – including the acquisition of the Verbatim funds (+13% in H1 organic only). Crucially, net inflows have remained strong through the whole of H1 at £109m avg pcm. This flow momentum underpins an encouraging outlook, both near and medium-term. We leave our forecasts unchanged although note risk to the upside heading into H2. We will review our model again at the Interims. Given the pace of growth and scale of opportunity from already established relationships,
Gore Street’s trading update confirms expectations of a strong trading environment for batteries in both the GB and Irish markets. Driven principally by high gas prices creating electricity market volatility and with tight capacity margins likely to remain, we see the company continuing to generate excess cash returns in this financial year at least.
Companies: Gore Street Energy Storage Fund PLC
Companies: NewRiver REIT plc
TMT Acquisition (TMTA.L) has joined the Main Market (Standard) pursue opportunities to acquire businesses in the technology, media and telecom sector. Raised £5m, mkt cap £5.5m.
NMCN Plc has left the Main Market (Premium) following the appointment of administrators.
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Harmony Energy Income Trust to join the Specialist Fund Segment of the Main Market raising up to £230m. The Company's investment objective is to provide investors with an attractive
Companies: SEE FST ORCP DNL FDBK 8091 IGP
Companies: Chrysalis Investments Limited
Today's news & views, plus announcements from BHP, MGGT, RIO, BWY, MONY, BGO, YOU, AVAP, PCA & SOLG.
Companies: AVAP BGO RIO SOLG
Trident Royalties Plc (AIM: TRR) has, this morning, highlighted the news released by Lithium Americas Corp. (NYSE/TSX: LAC) with respect to its Thacker Pass Lithium Project located in Nevada, USA. Lithium Americas has more than doubled its M&I resource to 13.7Mt Lithium Carbonate Equivalent (LCE) and increased the Phase 1 capacity to a target of 40ktpa Lithium Carbonate (up from 30-35ktpa) and Phase 2 target to 80ktpa (from 60ktpa).
This is material for Trident, which holds 60% of a LOM unca
Companies: Trident Royalties Plc
Today's news & views, plus announcements from NWG, WPP, SMDS, BDEV, CSP, EMG, HICL, QTX, RLE, MTEC, BOOM, CAPD & THG.
Companies: Barratt Developments PLC (BDEV:LON)HICL Infrastructure Company (HICL:LON)
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
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