Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on LOW & BONAR PLC. We currently have 23 research reports from 3 professional analysts.
|01Dec16 10:22||RNS||Total Voting Rights|
|23Nov16 03:51||RNS||Director/PDMR Shareholding|
|22Nov16 02:56||RNS||Director/PDMR Shareholding|
|22Nov16 02:55||RNS||Director/PDMR Shareholding|
|11Nov16 07:00||RNS||Appointment of Non-executive Director|
|09Nov16 12:07||RNS||Second Price Monitoring Extn|
|09Nov16 12:02||RNS||Price Monitoring Extension|
Frequency of research reports
Research reports on
LOW & BONAR PLC
LOW & BONAR PLC
N+1 Singer - Morning Song 03-11-2016
03 Nov 16
Overall trading for the year appears to have started slightly slowly overall but with underlying revenues making progress and profits flat for the period. Slow profit progress was already expected due to the previously signalled growth orientated investment being made. A material timing change on a Compliance unit contract, strong growth in AXCO and buoyant Health performance bode well for revenue performance looking forward. Visibility levels are said to be good underpinning managements confidence that the group is on track for the year. Wilmington remains a good play on the growth in global regulation and compliance. BUY
N+1 Singer - Capital Goods - Backdrop suggests upgrades ahead
09 Sep 16
Our latest review of the UK capital goods sector suggests a more positive outlook for our stocks, echoing the more hopeful picture we identified at the start of the year (Best Ideas 2016, 4 January). While growth remains very low, key indicators suggest a slight improvement for our universe by the end of 2016. More significantly, weak sterling is set to provide a materially bigger boost to sales in H2 than in H1 if FX rates are maintained. This does not appear to be reflected in consensus forecasts, which have also seen their first quarterly upgrade in Q3 to date after four years of quarterly downgrades. Share prices have risen sharply through 2016, taking our weighted sector P/E to c.20x. However the sector does not look expensive relative to the market, trading on its normal premium to the FTSE All-Share. To identify the best prospects we have assessed end market commentary from overseas capital goods groups, track records of growth and introduced quant screens relating to profitability and cash generation. Given the more positive tone to our findings, we have a number of Buy recommendations, but only one Sell. In this note we summarise the main inputs into our sector view, along with overviews of our coverage and some interesting non-coverage stocks.
N+1 Singer - Morning Song 09-09-2016
09 Sep 16
Summit continues to make strong progress with its utrophin modulation and C. difficile infection (CDI) programmes. Ezutromid has commenced a Phase II proof-of-concept trial (PhaseOut DMD) in the UK, with the first muscle biopsy data expected Q2/Q3 2017. A placebo controlled trial is expected to start in H2 2017, assuming positive interim data from the PhaseOut DMD trial. Ridinilazole Phase III options are currently being evaluated for CDI and we expect an update later in the year. We remain positive on the group’s future prospects and its significant market potential.
Business improvement in action
02 Aug 16
Significant investment activity, business portfolio management and more favourable financing have all been prominent features in the year to date, with group EBIT progress also delivered in H116. We expect Low & Bonar to deliver solid H2 performance and to continue its strategy of business improvement. Our estimates are modestly higher in the current year, more so in the following two and the FY17e P/E is now below 10x with a dividend yield of c 5%.
First Half 2016 Results
01 Aug 16
The disposal of the Sports and Leisure yarns business is proof that Low & Bonar is intent on delivering its strategy to focus on higher margin markets at the expense of commodity businesses or areas in which it does not have a strong market position. The results for the first half demonstrated that there is now solid potential growth in most areas of operation as European markets continue to stabilise. The company has the potential to leverage its manufacturing expertise and intellectual property in order to expand through a combination of organic growth and selective M&A activity, The current rating is still reflecting historic trading difficulties and the subsequent uncertainties of a new management team and a revised strategy. However, there was sufficient evidence in recent results to suggest that a more optimistic view is now appropriate.
N+1 Singer - Morning Song 07-07-2016
07 Jul 16
On the day of the BREXIT vote result we highlighted our recent Buy upgrade on UBM and its attractive post-vote characteristics. The stock has performed well (c10% total return) since we upgraded to Buy but has more to offer. UBM’s improved mix post the PRN disposal (over 95% of profits from events) and high US$/US$-linked exposure make for an appealing profile in an uncertain environment (at group level no profit was generated in GBP in FY15). We have adjusted our FX and cost assumptions, boosting FY17 EPS by almost 15%. Our events organic growth assumptions look robust at just under 2% in FY16, and 2.8% in FY17 and FY18 yet earnings growth is 23% in FY16 and 26% in FY17. We lift our TP to 685p (was 605p) and reiterate our Buy rating. We suggest taking profits on recent IPO performer Ascential (NR) and Buy UBM thereby switching into more attractive exposure at the same valuation (c11x FY16/17 cycle) and avoiding a potential stock overhang situation.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
Focused on the long term
08 Dec 16
These are rare events but it is nice to see a management use its public listing advantageously to trade short-term dilution in EPS for the optionality of asymmetric upside in the long term. With over £10m already in the balance sheet, ABD has successfully raised £5.4m gross in a placing and expects to raise another £1m from an offer. We were not surprised to learn that the placing was over 3.5x oversubscribed. How many listed UK companies are positioned to take advantage of the digital revolution in the automotive industry? The additional investment in new people, facilities, products & services should be dilutive to FY2017-18 EPS but this is small price to pay to establish the leading supplier of integrated test, measurement and simulation solutions to the autonomous vehicle industry. Our forecasts assume that growth will accelerate from FY2019. We raise our target price to 575p based on 15x FY2019 EPS, equivalent to Ricardo, the only other UK stock which has embraced the optionalities offered by the technological changes in the automotive industry.
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
N+1 Singer - Waterman Group - Encouraging AGM statement in line with expectations
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.