Hybridan Small Cap Feast 28/07/22

Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Inteliqo Limited, intends to join the Aquis Growth Market. Inteliqo Limited provides sales, marketing and distribution services to technology product owners under long-term distribution agreements. The Company has agreed its first such agreement in respect of the Ipedia iQ product range. The iQ product is a smart translation earphone (earbuds) system which offers integrated real time speech translation in

SHORE CAPITAL - Epwin Group+ (EPWN) - House Stock, 77p - Earnings forecasts retained; valuation compelling with FY22F dividend yield of 6%

Epwin Group (EPWN LN) - Strong first half performance

Today’s announcement indicates the positive, robust, trading Epwin has delivered since 2021 despite tough conditions throughout the first half of this year. Revenue in H1 22 is £178.0m (HY21: £157.8m), 13% ahead of this time last year which was a strong trading period. It is 27% ahead of H1 FY19, the last results unaffected by Covid-19. PVC the resin price hit an all-time high in April, however it has since plateaued, and as mentioned in the last Zeus note, Epwin’s ability to secure supply has e

Zeus: Real Estate, Building Products & Merchants - June 2022

Zeus presents the latest edition of the Real Estate, Building Products & Merchants quarterly summary of valuation, performance and earnings momentum. Key observations are as follows: • Subsector performance: One-year forward P/E ratios contracted in the last quarter for all subsectors except House Builders (that remained flat), reflecting general risk-off sentiment and a deteriorating outlook for the UK economy – the OECD now expects the UK to be the second slowest growing G20 economy in 2022

Hybridan Small Cap Feast 24/05/22

*A corporate client of Hybridan LLP Dish of the day Joiners: EnSilica (ENSI.L), has join AIM. EnSilica provides an end-to-end service for the design and supply of mixed signal ASICs, outsourcing certain elements such as the wafer fabrication of the manufacturing and packaging to third parties - otherwise known as a Fabless Semiconductor Model. ASICs are Integrated Circuits or semiconductor chips developed for a particular use or product rather than for general purpose usage. ASICs help

SHORE CAPITAL - Epwin+ (EPWN) - House Stock at 80p - Positive AGM trading update: RMI demand remains robust, forecasts retained.

Epwin Group (EPWN LN) - Trends continuing

This morning’s AGM statement indicates that trading in the first four months of the year has remained strong and followed the trends seen at the end of the last financial year. Revenue is 15% ahead yoy, against a very strong comparative period in FY21. Material costs continue to increase, particularly resin, and are directly related to the on-going conflict in Ukraine. Reassuringly Epwin has managed to secure supply, a benefit of being the largest player in the UK market. Any further cost input

Epwin Group - Raised estimates and margin upside potential

Epwin’s FY21 results exceeded our modestly upgraded estimates following a year-end update. The other highlights of the year were confirmed de-leveraging in line with guidance and a confident DPS uplift. Further recovery of industry input cost inflation through margin performance will be keenly watched but we have raised estimates for FY22 and FY23, including a stronger dividend expectation. In our view, the margin and share price risks are now firmly to the upside.

SHORE CAPITAL - Epwin Group (EPWN) - House Stock at 88p

Epwin Group (EPWN LN) - Strong year with good levels of demand

Epwin traded strongly into the year-end, with FY21 underlying EBIT and PBT ahead of Zeus forecasts by 5.8% and 3.9% respectively. The Group has actively managed significant inflationary pressures and supply shortages, implementing price increases and surcharges where accepted by customers. High cash generation in the period has strengthened the Group balance sheet, bringing covenant net debt (excl. IFRS16 leases) down from 1.3x adjusted EBITDA in FY20 to just 0.4x in FY21. With reduced net debt

Epwin Group - The best is yet to come

FY21 ended on a firm note, modestly exceeding expectations. Price inflation will come through in a strong revenue performance but also some temporary margin dilution. As a result, the benefits of having repositioned and strengthened the group in recent years may not be visible to investors at first. We believe Epwin is well placed to regain and exceed historic levels of profitability as industry pricing issues work through. This scenario is not fully reflected in estimates, or the company’s valu

Hybridan Small Cap Feast 20/01/22

Joiners: No Joiners Today. Leavers: Universe Group has left AIM following a takeover by Inform Information Systems Limited What’s cooking in the IPO kitchen? Hercules Site Services a technology enabled labour supply company for the UK infrastructure sector, intends to float on AIM. Hercules is seeking to raise approximately £5.5m to rapidly deliver on the significant demand it is experiencing for its diverse range of services across the UK infrastructure sector, including to scale up its operati

SHORE CAPITAL - Epwin Group+ (EPWN) House Stock, 103p

Epwin Group (EPWN LN) - Sustained momentum into the year end bodes well for FY22

Epwin has confirmed that FY21 finished strongly with revenue materially ahead and profitability marginally ahead of consensus expectations of £12.8m. ZC estimates for PBT increase to £13.2m (prev. £12.9m) and expect the previous consensus of £12.8m to increase by c. 5%. Revenue expectations of £312.1m were materially below the c. £330m that Epwin will report. We change FY21 expectations to reflect today’s trading statement and update revenue assumptions for FY22 and FY23. However, it should be s

SHORE CAPITAL - Mpac Group+ (MPAC, House Stock at 380p)

Strix Group plc (KETL LN) - Trading conditions to improve in H2

Today’s trading update for H1 22 highlights the difficult operating environment over the first six months of the year, particularly in Q1. Trading picked up in Q2 and is expected to continue to improve in H2 22, in part, due to the inherent seasonality of the business, but also due to some catch up in demand. Guidance is for FY22 post-tax profit to be in line with the consensus estimate of £32.2m, as a result Zeus reduces its estimate by 2.5% to £32.2m. Previous guidance of £3.0m potential impac

Review of Electricity Market Arrangements - REMA Could Bring Benefits

Last week, the UK government published the consultation paper on its Review of Electricity Market Arrangements (REMA). Any change potentially represents uncertainty in a market that has been wary of changes with a number of shares falling after early details of possible reforms were flagged in the press. We review the possible changes and conclude that while there is some risk, from what we can see at present the likely outcomes could be either minimal or beneficial for investors in clean energy

LIBERUM: SigmaRoc* - Rock solid

SDI Group - FY 2022 – another record year drives 12% FY 2023 upgrade

The third year of consecutive >50% EBITDA growth and 45% CAGR EPS growth - SDI reported full-year results to 30 April that were 12% higher than indicated at the trading update (6 May), helped in part by higher recognised revenues from the SVS and Safelab acquisitions. Coupled with a stronger underlying cash position (net cash of £1.1m), in part reflecting a delay in the Safelab contingent payment into FY 2023 and higher than forecast OEM contract prepayments (albeit less than FY 2021), £20m borr

Cenkos: Oil & Gas Sector -- Diversified Energy, Argos Resources, Deltic Energy, Kistos, Serica, Pantheon Resources, Nostrum Oil & Gas, ExxonMobil, Shell, SDX Energy, Tenaz Energy, Hurricane Energy, Jadestone Energy, United Oil & Gas, Seplat Energy, Equinor

Oil fell for a second-consecutive month as a deteriorating demand outlook offset concerns over tight physical supplies. West Texas Intermediate rose Friday, bringing this week's gain to around 4%. Futures nevertheless recorded their first back-to-back monthly decline since 2020 as fears of an economic slowdown fuelled bearish sentiment across markets. The US economy shrank for a second quarter as rampant inflation undercut consumer spending. Citigroup Inc says there are signs the oil market

LIBERUM: Flowtech Fluidpower* - Resilient H1 trading

SDI Group - Accretive acquisition – +5% in FY 2024

SDI has announced the acquisition of LTE Scientific for c.£5.5m (includes £1.65m of freehold property and £1.3m of cash). LTE Scientific manufactures and services sterilizers, decontamination and thermal processing equipment, used in the life science and medical market sectors. The acquisition is funded from cash and SDI’s existing debt facility, with net cash at 30 April having been c.£1.1m. We expect the acquisition to be immediately EPS enhancing and to be c.5% accretive to EPS in FY 2024. Co

Inflation Reduction Act

The US Inflation Reduction Act of 2022 now has a chance of passing the Senate next week as it is being voted under the Reconciliation procedure which allows bills related to the budget to pass on a simple majority rather than the 60-vote majority required to overcome a filibuster. If the act does find its way onto the statue books it will bring US$369bn in clean energy tax credits, grants and other incentives. Much is directed to protecting clean energy manufacturing in the USA, but it is a wide

SHORE CAPITAL - Velocys+ (VLS) - House Stock, 5.6p - Tipping the balance - thematic developments in sustainable aviation

LIBERUM: Staffline Group* - H1 restrained by investment but expect stronger H2

Morning Note – 29 July 2022

Hybridan Small Cap Feast 21-07-2022

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen? Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group export

Morning Note – 2 August 2022

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