Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on NORTH MIDLAND CONSTRUCTION. We currently have 6 research reports from 1 professional analysts.
|24Jan17 08:07||RNS||TR-1: Notification of Major Interest in Shares|
|24Nov16 14:38||RNS||TR-1: Notification of Major Interest in Shares|
|01Nov16 15:47||RNS||Director/PDMR Shareholding|
|09Jun16 14:19||RNS||TR-1: Notification of major interest in shares|
|08Jun16 07:00||RNS||Performance Share Plan Awards|
|03Jun16 10:42||RNS||Appointment of Chief Executive Officer|
|19May16 07:00||RNS||AGM Statement|
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Research reports on
NORTH MIDLAND CONSTRUCTION
NORTH MIDLAND CONSTRUCTION
Return to profitability; Results in line with previous guidance
01 Apr 16
North Midland’s results are in line with the previous guidance given at the time of the February trading update. FY’15 marked a return to full year profitability for the Group. North Midland has been held back by a number of legacy contracts, but now only one problematic contract remains. The business is de-risked and management can now focus its efforts on further improving the Group’s underlying trading performance. The secured order book for the current financial year (c.£181m) and a solid pipeline of potential orders under existing frameworks underpin cautious optimism in the Group’s medium term outlook.
Positive underlying trading; legacy contracts prompt downgrades
18 Feb 16
North Midland’s trading update is mixed. The company details unexpected losses of £3.1m relating to the resolution and conclusion of a number of legacy contracts. However, stronger than expected underlying trading has offset some of the impact of these losses. The company now expects to achieve reported PBT of c.£0.6m for the year to 31st December 2015 vs. our forecast of £2.0m. North Midland has been dogged by a number of legacy contracts, but after today’s statement, only one problematic contract remains. This de-risks the business and should allow the management team to focus its efforts on further improving the Group’s underlying trading performance.
Return to profitability; Progress in legacy contracts
13 Aug 15
North Midland Construction has reported a return to profitability in H1, with PBT of £0.1m (H1’14: £0.4m, FY’14: -£3.0m). Revenue was up 17.9% YoY to £107.2m (H1’14: £91.0m), supported by a strong performance in highways and Nomenca. We are encouraged by signs that the legacy contracts that have dogged the business are coming closer to resolution, with one contract set to be concluded in mid-September and the contractual matters of another expected to be finalised imminently. We have nudged up our revenue forecasts, but leave profit forecasts unchanged, with an expected return to full year profitability in FY’15.
Time to go over weight
24 Feb 17
We believe equity investors are taking an unnecessarily cautious stance on the construction sector. Forward looking indicators (e.g. consumer confidence, construction PMIs and housing starts) point to a stable market and recent sales LFL are particularly encouraging (e.g. Marshalls). Near term margins may suffer temporary distortions as inflationary pressures build. However, history has shown that modest input cost inflation is actually a positive for earnings growth in the sector. Therefore, as we move into 2018, margin trends are likely to surprise on the upside.
N+1 Singer - Waterman Group - Robust performance, mid-term ambitions reiterated
28 Feb 17
As trailed in the recent half year update, Waterman’s interims are in line with the prior year and in line with expectations. Both divisions recorded a robust performance despite some market uncertainties in the immediate aftermath of the EU referendum. Full year expectations are reiterated as is the medium term aspiration to increase operating margins to 6% by FY19 from 4.1% in H1’17. We see good growth opportunities in a number of areas, particularly Infrastructure & Environment, with robust conditions also in Property within retail and residential. In our view, Waterman’s shares look significantly undervalued on 4.5x FY17 EV/EBITDA compared to peers on 6.9x. We also note the attractions of a c.5% dividend yield, +33% at the interim stage.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced
N+1 Singer - Morning Song 23-02-2017
23 Feb 17
Genus (GNS LN) Interim results: R&D step-up, disappointing ABS performance | Howden Joinery Group (HWDN LN) Prelims and net cash better than expected but conditions weaken | Oxford Pharmascience Group (OXP LN) Encouraging interim OXPzero™ Ibuprofen exploratory PK data | StatPro Group (SOG LN) Increased majority shareholding in Infovest Consulting | Wilmington Group (WIL LN) Interims slightly ahead, move to focus on 3 verticals
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Encouraging trading update, boosted by FX
23 Feb 17
The group recently announced an encouraging trading update, with FY results now expected to be slightly above previous expectations, based on solid underlying trading and boosted by ongoing FX tailwinds. As such, we are modestly increasing our forecasts, with an 8.8% increase in EPS for the current year and 9.3% for 2018. This places the shares on a P/E of 16.9x in 2018. We raise our price target from 176p to 215p and, with modest upside from current levels, we maintain our Buy rating.