WHI Support Services Sector Comment: Challenges and opportunities

Bleak expectations for the UK economy in 2023 anticipate underperformance against other G7 countries based on factors such as (a) the UK's higher than average mortgage rate sensitivity and (b) relative exposure to high gas and energy prices. Some measure of political / economic stability has returned, though this arguably remains a brittle quality, given the scope for dissent within the Conservative party and the unpredictable impacts of industrial action, among a range of factors. All of this s

Hybridan Small Cap Feast 17/11/22

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Long Term Assets Limited (LTA), a Guernsey investment company, intends to join the Specialist Fund Segment of the Main Market of the London Stock Exchange. The initial portfolio is made up of a diversified range of assets, recently valued in the region of £160m, comprising a complete selection of the Disruptive Capital’s family office private asset portfolio. LTA aspires to be a “best-in-cl

Water Intelligence - 3Q/9M22 update – FY22 on track

Water Intelligence has released a trading update for 3Q/9M22 with sales YtD surpassing those of the whole of 2021. For 9M22, revenue increased 38% to US$54.9m, adjusted EBITDA increased 13% to US$9.7m and adjusted profit before tax increased by 7% to US$7.0m. Water Intelligence is on track to be at the upper end of analyst expectations for revenue and in line with expectations on profits. Crucially, this update confirms that the financial performance of Water Intelligence is improving 2H22 over

WH Ireland: Water Intelligence (WATR) - Q3 update: failing infrastructure feeds growing demand; WATR strongly placed

WATR's Q3 update this morning demonstrates that the company remains strongly placed to satisfy vigorously growing demand for its water leak detection and related services – which it provides across the whole of the US as the only national player, and also in international markets (UK, Australia, Canada). 9-month sales at +37% reaffirm the successful trajectory traced in numerous previous periods, while drilling down, the key Corporate-Operated Locations grew revenues by as much as 59% - and sam

Water Intelligence Q3 update

Water Intelligence has released a strong Q3 update in which it indicates that at the 9m stage it has already exceeded FY21 sales and we raise our FY22 sales forecast while maintaining our profit estimates, which we view as firmly underpinned.

WH Ireland: Sector Comment - Dollar earner picks as sterling crumbles

Just over two months on from our “Sector Views” call to buy dollar earners on July 21th, this remains hugely topical with further significant £ weakness and the Bank of England at the time of writing on the back foot following last week's mini-budget. As the “world's currency”, the dollar remains at a multi-year high against a basket of major currencies and above parity with the euro. In terms of sterling, we recommended a selection of dollar buys two months ago when the sterling / dollar rat

Water Intelligence - 1H22 interims, amending TP, reiterate Buy

Water Intelligence reported a strong increase in revenues for 1H22 but that did not translate into profits which were held back by a sharp increase in other administrative costs. We understand that cost trajectory should flatten in 2H22 which, together with an increase in our revenue forecasts, means we maintain our EPS forecasts. The revenue performance underscores the strength of the growth story but given current market conditions and the need for Water Intelligence to demonstrate bottom line

WH Ireland: Water Intelligence (WATR) - H1 results: strong momentum continues; huge markets, dollar earner

This is another very good set of results from WATR, featuring sales up 44%, which in turn drove a 53% increase in gross profit (a 500bp increase in the margin). WATR supplies in-demand water leak detection and related services across the whole of the US, and also in international markets including the UK and Canada. It operates a strong model which has seen significant double-digit CAGR over a number of years; and this morning's outstanding results reaffirm the company's well-tried approach to

Water Intelligence interim results update

Water Intelligence has released interims that demonstrate continued robust top line momentum and we maintain our FY profit estimates.

WH Ireland: Sector News and Views – Corporate - dollar earner picks in a changing landscape

A year on from the end of lockdown on July 19 2021, celebrations at the UK's economic bounce-back in H2-21 have long lost their fizz. Two intertwined themes have remained salient / gathered pace over the past six months since our mid-year sector review: exchange rates and inflation. As we write today, press speculation is focussing on the possibility of a 0.5% rise in UK interest rates in August, billed as the biggest move in 27 years. Looking further afield, economists are looking to the F

Water Intelligence - Acquisition of Shanahan Plumbing

Water Intelligence has acquired Shanahan Plumbing which adds plumbing operations in the Connecticut and New York areas. The acquisition price is US$0.8m in cash representing a multiple of 4x PBT. The acquisition is consistent with the company's strategy of building out its ancillary adjacent service offering to leverage the customer base generated by its core non-invasive leak detection business as enhanced by its investment in technology to improve scheduling and dispatch efficiency. The transa

WH Ireland: Water Intelligence (WATR) - FY21 results demonstrate momentum in building a strong global company

WATR has delivered further impressive results. Sales up 44% drove gross profit at +57% while PBTA rose 36%. Supplying water leak detection and related services across the whole of the US, and also in international markets including the UK and Canada, WATR continues to grow its business at strong double-digit CAGR rates, while also driving its reacquisition programme at pace and winning further national contracts. In the year the company is reporting, it succeeded in forcefully overcoming the

Water Intelligence - FY21 results – in line, confirms positive view

Water Intelligence reported results for FY21 in line with previous guidance and our forecasts apart from an additional US$1.9m gain in respect of Payment Protection Plan forgiveness. That confirms the rapid growth in revenue, cash flow and profit that execution of the strategy is delivering. The company is well positioned to overcome current market challenges and again noted the recent investment in human capital undertaken to accelerate execution of the growth plan. Water Intelligence expects t

Final results update

Water Intelligence has released its FY21 Results which confirm the robust progress made in 2021.

Water Intelligence - Central Texas deal on highly attractive metrics

Central Texas deal on highly attractive metrics

Heading for record 2023 deliveries

Top Picks for 2023 - 2022 review and outlook for 2023

On 10 January last year, we set out our ten top stock picks for 2022, in what turned out to be a very poor twelve months for global equities, due to war, accelerating inflation, political instability and recession fears. Between 7 January 2022 and 31 December 2022, the AIM All-Share Index declined 30.0%, whilst the average performance of our ten top picks was -24.7%, a modest relative outperformance. In this note we discuss the performance of our 2022 top picks, equities trends in 2022, and our

Terminating coverage

Setting up a breakthrough year - Correction

Somero Enterprises - Year-end trading update – slightly lower than expectations

The update reflects some slight customer supply chain constraints, with the resultant FY revenue and EBITDA slightly down on previous guidance. Underlying market demand remains positive with expected backlogs. Strong growth was again recorded by Europe (+20%) and Australia (+40%). We reduce our revenue for FY22 by 3.5% with a 3.7% reduction in Adj EPS. Lower net cash of $34.0m is also reflected in dividends, which we reduce by 22% to 37.5ȼ. The growth story remains strong with international grow

QuotedData’s Real Estate Monthly Roundup – January 2023

Performance - 2022 ended with another difficult month for property companies as the sector continues to get to grips with the impact of higher interest rates. There were several funds that performed well during December, however, with secondary shopping centre landlord Capital & Regional top of the pile. For a second month on the trot Home REIT saw its share price tank after it came under attack from a short seller in November. Valuation moves - It was a mixed bag for valuations, with six-month

This Week's AIM Highlights 20th January 2023

LIBERUM: SigmaRoc* - Good start to 2023 with strong pipeline

LIBERUM: Yü Group* - Yet more upgrades

Strix (KETL LN) - Full year trading update

Strix have issued a full year trading update indicating profit after tax will be c. £23.0m, in line with updated guidance provided in the 30 November 2022 trading update following completion of the Billi acquisition. Year-end net debt came in at £87.0m, slightly ahead of Zeus forecasts, leaving the company well placed to bring net debt / EBITDA materially below 2.0x during FY23. Profitability being in line provides confidence that the Zeus FY22 revenue forecast of £110.0m will be achieved, imply

Q4 & FY22 Trading Update

Capital Limited (LSE: CAPD) this morning provided its Q4 & FY2022 trading update. The Company has continued to perform strongly in 2022 with Q4 revenue 8.2% higher QoQ and 18.9% higher YoY. The full year of revenue has once again exceeded the revised guidance (albeit marginally) and our estimates.

ITM Power - A Major Reset

ITM’s new CEO has outlined a major reset for the company focused on transforming it into a volume manufacturer of market leading electrolyser technology. Getting there will involve a lot of work and cost and today’s revised guidance shows a near doubling of EBITDA loss against the original consensus for FY23. FY 24 should start to see the benefit of cost cutting and the company has also announced two new 100MW contracts announced today with Linde. Importantly, ITM has the cash reserves to suppor

Hybridan Small Cap Feast - 25 Jan 23

25 January 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment object

SHORE CAPITAL - Ultimate Products+ (UPGS) - House Stock, 170p - Returning to Ambiente - a commercial opportunity

ITM Power (ITM LN) - H1 FY 2023 results

ITM has released its H1 results to the end of October 2022, alongside providing an update on the company’s strategy under its new CEO. The statement is something of a curate’s egg, showing an expectation of poor FY 2023 financial performance (as previously flagged), but also a new strategy focused on manufacturing scale-up, and signature of two new 100MW contracts.