The Industrial Revelation

UK Nov GDP and industrial output misses but construction output beats, China's Dec exports rise ahead of expectations

Ford enters electric car race, Melrose sees good aerospace growth, Spectris reports lower LFL sales in North America & China

Melrose (MRO LN, £10.8bn) | Trifast (TRI LN, £201m) | Spectris (SXS LN, £3.0bn) | Elementis (ELM LN, £994m) | TT Electronics (TTG LN, £401m) | Renishaw (RSW LN, £2.8bn) | Oxford Instruments (OXIG LN, £904m) | Gooch & Housego (GHH LN, £295m) | Scapa (SCPA LN, £358m) | Trifast# (TRI LN, £201m) | Dialight (DIA LN, £88m)

Morning Song

Elementis (ELM LN) Interims confirm FY guidance, Mondo acquisition under review | Infrastructure India (IIP LN) Proposed financing to generate $125m

Morning Song

Elementis (ELM LN) Solid Q1 update and confident outlook | Futura Medical (FUM LN) MED2002 (Eroxon®) Phase III design unveiled | N Brown Group (BWNG LN) Business plans remain on track and rating offers scope for bounce | Redde (REDD LN) Positive momentum continues, forecasts unch | SDL (SDL LN) Q1 in line and vast majority of slipped deals, by value, now signed | Senior (SNR LN) Trading in line

A year of progress and a promising outlook for FY18

Elementis’ full year results confirm a year of significant strategic progress and earnings growth, a touch ahead of expectations. The outlook for the new year is promising and, as the portfolio transformation continues, it is striking to read that Personal Care is now the largest profit contributor in the Group. We retain our P&L forecasts whilst edging up our dividend expectations alongside a newly defined dividend policy. We expect another year of good progress in FY18 and, in our view, the sh

Morning Song

boohoo.com (BOO LN) Buy into derating as brand momentum increases | Carador Income Fund (CIFU LN) Q4 dividend of 2.25c, total of 9c for full year | ECO Animal Health Group (EAH LN) Marketing authorisations for Aivlosin® in Ukraine | Elementis (ELM LN) Strategic progress not yet reflected in share price | Goals Soccer Centres (GOAL LN) 2017 falls short of expectations but turnaround green-shoots in evidence

Strategic progress not yet reflected in share price

We anticipate a positive year for Elementis in 2018. This is the first year to benefit fully from SummitReheis, last year’s transformational acquisition. Meanwhile macroeconomic and peer group-specific indicators look positive. PPG last week reporting their strongest quarterly volume growth for three years. In our view, recent strategic progress is not yet reflected in the share price, which lagged the peer group last year. We continue to see intrinsic value in excess of 330p (14x FY18 EV/EBITDA

N+1 Singer - Elementis - Sale of Surfactants for €39m

After a competitive process, Elementis has entered into an agreement to sell its Surfactants business in Delden to Kolb Distribution AG for a cash consideration of €39m. We consider this a positive conclusion to the planned disposal of this non core, loss making and capital consumptive business. As expected, Elementis enters into a supply agreement with Kolb for continued sourcing of certain products for its Specialties division from the Delden site. This will be modestly dilutive to earnings fr

N+1 Singer - Morning Song 17-11-2017

Elementis (ELM LN) Share price drift presents buying opportunity | Springfield Properties (SPR LN) Springboard to sustainable long term growth | T. Clarke (CTO LN) Positive update, order book building for FY18/19

PROGRESSIVE: Oxford Metrics: Drivers to growth and catalysts for rerating

Oxford Metrics’ results for the year to 30 September show a business that is growing strongly, driven by long-term technology, economic and demographic trends across the life sciences, entertainment and engineering markets. The results are in line with the trading update given on 25 October (see our note) that showed revenue and adjusted PBT ahead of our, and market, expectations. With a confident management commentary on the outlook, we raise our estimates for FY24E and introduce forecasts for

ITM Power (ITM LN) - Trading update

ITM has released a trading update, providing guidance on its upcoming H1 FY 2024 results, and reiterating full year FY 2024 guidance.

Water Intelligence 10m Trading Update

Water Intelligence has reported a strong 10m Trading Update that indicates it is on track to meet expectations and we increase our FY23 estimates by +2%.

Norcros - UK margins up materially, South Africa stabilising

Norcros’s compelling investment case was underpinned at the half year where underlying operating profit was down less than 3% despite material revenue pressure. Group operating margins rose 60bp, the UK business reported record underlying profits and Norcros continued to take market share in both the UK and South Africa. We believe that Norcros’s key strengths are underappreciated and that legacy issues, notably the pension deficit, have been resolved. We retain our estimates and value the share

Morning Note – 5 December 2023

Water Intelligence - 10-month update paints a strong picture, PTBA +14% YoY, inline for FY23E

WATR's 10-month update published this morning reflects continuing momentum in the business, in particular pushing margins ahead while also continuing to invest for growth. WATR is a supplier of in-demand water leak detection and related services across the whole of the US, with rarity / uniqueness in being a nationwide provider of these services, while also playing in international markets including the UK, Australia and Canada. The company has typically generated double-digit CAGR over the pa

discoverIE - Efficiencies driving margin, good forward visibility

discoverIE has reported an encouraging H1 2024 showing a resilient sales performance (flat in total, +4% CER) against strong comparators (+23% CER last year) in a difficult macro environment and an impressive increase in operating margins from 11.5% to 12.9%. Underlying EPS increased +8% and gearing of 1.6x is at the lower end of the target range. There remains significant opportunity for acquisitions, which – alongside targeting continued margin increases – provides upside potential to our fore

Titon Holdings+ (TON, House Stock at 80p) - Trading update

SP Angel Morning View: Gold powers through $2,100/oz on outlook for Fed rate cuts

UK-Listed Energy Sector: Review of the UK oil and gas landscape – why the country needs it, current policy and tax

The front of this note takes a look at the UK oil and gas sector, why domestic production is advantageous, what the main political parties think, and what could happen going forward. The latter part contains a review of the companies in our coverage – some that are UK centric, which give exposure to the note’s wider theme, and others that are focused elsewhere.

Velocys - Recommended Offer at 0.25p

The recommended offer announced today for Velocys comes from a consortium consisting of Lightrock, Carbon Direct Capital, GenZero and Kibo Investments. At 0.25p this values Velocys at £4.1m on a fully diluted basis. Following the acquisition, the consortium will provide up to US$40m of funding to help Velocys achieve it’s medium-term growth plans as well as providing a £3.5m bridging loan until the acquisition is effective. We remain of the view that the offer is cheap relative to the long-term

TClarke - £1.1bn order book and delivery protection measures

TClarke has confirmed it is on track to deliver its three-year growth-plan target of £500m of revenues in 2023E (up from £426m in 2022). It detailed a 99% increase in the order book to £1.1bn alongside a further £1bn in opportunities. Reflecting the current challenges in the construction sector, management has made a number of strategic decisions to preserve the business’s strong market and financial position. These include changing some supply-chain partners mid-contract to protect project comp

PROGRESSIVE: Oxford Metrics: Technology, strategy and EPS enhancing

Oxford Metrics (OM) today announced the acquisition of Industrial Vision Systems Ltd (IVS) for £8.1m, funded from cash and 1m new shares. IVS operates in industrial applications of smart sensing, with machine learning technology for quality control in the manufacturing environment. The deal is immediately earnings enhancing and we are raising our forecasts for FY24. This is an exciting first M&A application of the funds from the Yotta disposal. The deal appears technologically and strategically

PROGRESSIVE: SDI Group: Acquisition of Peak Sensors

SDI Group has announced the acquisition of Peak Sensors, a UK manufacturer of temperature sensors, for an estimated £2.4m (£2.3m less cash). The initial cash consideration is £1.58m, with a further c.£0.82m payment due shortly after completion. The deal will be funded from SDI’s revolving credit facility. As at 30 September, SDI had c.£1.78m cash, £15.1m bank debt and £9.9m undrawn bank facility excluding the accordion, providing considerable financial flexibility for the group. The acquisition

H1 23: RR may have finally found a bottom

After years of slippage, Rolls Royce may have finally found the bottom. H1 23 was marked by a 28% organic increase in revenues, a 531bp increase in operating margin and a sharp increase in cash generation, thanks to a higher activity level and the initial benefits of the multi-year transformation plan. Following these strong results, the company has upgraded its FY23 outlook.