Hybridan Small Cap Feast 10/08/22

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 objectives, financial situation or

Well positioned in a tightening environment

Victoria has delivered record FY22 revenues and EBITDA, exceeding the minimum £970m and £155m indicated in April’s trading update. L4L revenue growth, against a Covid weakened comparative, was 19.2%, split equally between volume and price. Given the inflationary cost environment and supply chain constraints this is a highly creditable performance that demonstrates both pricing power and operational strength. The Group also made a number of enhancing acquisitions in FY22 (including the Rugs and U

Attractive long-term fundamentals

We publish our more detailed forecasts for Victoria following the FY trading update and completion of the carve-out and acquisition of the Rugs and UK Carpets division of Balta Group NV. FY2022E has been flagged with revenues in excess of £970m, underlying EBITDA in excess of £155m and underlying EBIT in excess of £100m. For FY2023E, management expect EBITDA in excess of £200m. Whilst demand into FY2023E has remained strong, the shares have weakened on thoughts of tightening consumer expenditure

Completion

Victoria has announced the completion of the acquisition of the highly complementary rugs and UK carpet divisions of Balta Group NV for a cash consideration of approximately £139m. The rugs business is a well-established operation and is the no.1 producer in Europe and the no.2 globally. The carpets activities increase the scale of Victoria’s UK carpet business and add non-wovens. As previously announced in November 2021, the acquisition will be immediately earnings accretive, on an historic c.6

Acquiring Rugs & UK Carpet Divisions of Balta

Victoria has announced the accretive acquisition of the highly complementary rugs and UK carpets divisions of Balta Group NV for a cash consideration of approximately £117m. The acquisition is subject to the conclusion of the carve out of the divisions from Balta and is expected to complete in April 2022. The rugs business is a well-established operation and is the No.1 producer in Europe and the No.2 globally. The carpets activities increase the scale of Victoria’s UK carpet business and add no

Strong interim results, forecasts upgraded

Victoria has reported record first half results that capture the benefits of strong consumer demand, operational efficiencies and acquisitions that provide on-going opportunities for additional synergies. There is a compelling organic and inorganic investment case that supports our expectation of share price outperformance. We introduce a PT of 1325p.

Hybridan Small Cap Feast 10/11/2021

Joiners ProCook, the UK's leading direct-to-consumer specialist kitchenware brand has joined the Main Market (Premium). ProCook's revenue grew by 37% to £53.4m in FY21 (ending 4 April 2021), with Adjusted EBITDA growing by 246% to £13.3m in the same period. Offer size £39.7m. Mkt cap £158m. Leavers No Leavers Today. What’s cooking in the IPO kitchen? Ashtead Tech, subsea equipment rental and solutions provider for the global offshore energy sector to join AIM. The Directors have a high degree of

Positive H1 trading update

Victoria has issued a positive half-year trading update that confirms underlying profit before tax for FY2022E will be ahead of consensus market expectations. Against a background of strong consumer demand for its flooring products, the first half has seen record operating earnings. Management expect this demand picture to continue into next year and beyond with the added support from the high level of housing transactions which is a good lead indicator of future refurbishment activity. Septembe

Strong growth continues

Victoria has issued a positive AGM update supporting upgrades made at the time of the final results in July. Given the substantial COVID lockdown effects experienced in early FY2021, year to date trading is noted to be c.70%+ ahead of the same period a year ago and c.50%+ up on a like-for-like basis excluding acquisitions. More importantly, Victoria confirms the trading outturn to be over 50% ahead of the comparable period in 2019, including acquisition benefits but despite some material impacts

Record year despite Covid impacts

Despite the adverse effects of Covid lockdowns significantly impacting Q1 FY2021, Victoria has delivered record FY2021 revenues and adjusted EBITDA, respectively c.3% and c.6% ahead of expectations set by its June trading update. The outlook for revenue and margins in FY2022E is encouraging with the Group continuing to experience strong on-going demand in its key markets, having captured structural margin uplift from targeted productivity and operational initiatives. Whilst traditional lead indi

Well positioned to deliver shareholder value

Ahead of next week’s results, we are publishing revised forecasts that capture the benefit of the recent acquisition of Cali Bamboo, a fast growing US distributor. With the benefit of Koch’s £75m preferred equity investment (‘PEI’), management has now invested over £160m in acquisitions in the current financial year to acquire c.£27m of EBITDA, whilst remaining in-line with its 3x senior debt/EBITDA policy. June’s trading update confirmed a robust organic growth outlook and management remains ke

Positive trading update

Victoria has issued a positive update confirming that trading continues to be very strong across all of its geographies and products. Sales are noted to be running with double digit percentage increases against 2019 levels with its factories running at full capacity. The group has mitigated against increased raw material costs through raised selling prices and supplier negotiation, and secured supply. The statement notes that recent acquisitions are bedding in well and that management remain con

Accretive acquisition

Victoria’s acquisition of Edel Group BV creates Europe’s largest premium domestic and landscaping grass business. The artificial grass sector is expected to continue to grow strongly and there are opportunities for both commercial and operating synergies with Victoria’s existing grass businesses acquired in early 2017. The acquisition will be immediately accretive on an EV/EBITDA multiple of c.7x based on an EV of €69.4m that includes €20m of assumed debt. The acquisition is an excellent strateg

Accretive acquisitions

Victoria has announced the accretive purchases of the assets and business of ceramic tile distributors, Ceramica Colli and Vallelunga, and the shares of ceramic tile manufacturer Ceramiche Santa Maria for a total consideration (on a debt free, cash free basis) of c. €35m, funded from the Group’s existing resources. The acquisitions are an excellent fit with Victoria’s existing Italian operations and will bring important spare capacity to alleviate current production constraints in Italy whilst p

Record results for FY21E

Victoria has issued a positive trading update that highlights record results for FY21E despite the adverse impact of the April to May 2020 lockdowns that saw a £50m reduction in revenue in that period. Revenue is now expected to be over £640m (FY20: £621m) with underlying EBITDA in excess of £120m (FY20:£118m). The outlook for both revenue and margins in FY22E is very encouraging with the Group continuing to experience strong on-going demand in key markets having secured structural margin uplift

Cenkos: Seeing Machines Ltd -- FY22 Trading in line with expectations

Seeing Machines has released a trading update for year-end 30 June 2022. Revenues are expected to be in line with market expectations (as per 23 February 2022 announcement A$55.6m) and cash position ahead of market expectations (FactSet A$40.4m). It notes that High margin Automotive royalty revenues are up 139% on the prior year with production vehicles on road now at 447,000. As a leading indicator it notes Non-Recurring Engineering (NRE) revenue is up 61% on prior year and that the cumulative

Frontier Developments - Board Reshuffle, Positive signs ahead

Board Reshuffle, Positive signs ahead

LIBERUM: Frasers Group* - A standout FY22 gives confidence in the year ahead

LIBERUM: Joules* - Positive changes having an impact

LIBERUM: Science in Sport* - Lowering forecasts on tougher outlook

LIBERUM: CT Automotive* - Weak H1 but schedules improving

Accrol Group Holdings (ACRL LN) - Resilient trading despite clear headwinds

Accrol has delivered a robust trading update despite clear inflationary pressures on the business during the period. As a result, we are increasing our FY23 and FY24 revenue forecasts to reflect higher levels of activity and product inflation. Our headline earnings numbers remain unchanged following this update, albeit with growing confidence in FY23. We believe the shares look undervalued in what remains a strategically important player in the industry.

Strengthening position in home fragrance

Portmeirion has strengthened its position in the home fragrance market by acquiring smaller rival AromaWorks out of administration. AromaWorks is a well-established brand in the UK, having also very recently broken into the USA market. Historical sales last year amounted to £4.1m (c.35% of PMP’s Wax Lyrical’s FY21 outturn) and a PBT of £0.3m in what was a Covid impacted year. The total consideration is a modest £0.44m and we anticipate a short payback period. Strategically, this is a low risk de

LIBERUM: New Energy Monthly - Meetings with 3 UK New Energy stocks

Hybridan Small Cap Feast 27/04/22

According to Proactive Investors, Bridgepoint is said to preparing to list Burger King UK on the London Stock Exchange as early as this spring. A valuation of £600m is expected. Lift Global Ventures plc to join AQSE Growth Market. The Company's investment strategy is to operate as an enterprise company seeking acquisition or investment opportunities within the financial media and technology industries. Within these broad industries, areas of focus may include: Financial news websites and other f

Hybridan Small Cap Feast 28/06/2022

Joiners: No Joiners Today. Leavers: Raven Property Group has left the Main Market. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or req

AFC Energy (AFC LN) - A year of deployment

Interim results from AFC contain few surprises and the group remains on track for the full year. The two main deltas versus our (unpublished) forecast were that the £2m stage payment from ABB were treated as deferred income rather than as revenue and that income from R&D tax credits was below our estimate. The first issue is an accounting issue which has no bearing on cash flow, while the second is likely a timing issue. On its own, the tax issue explains why period end cash, at £48.6m, was £1m

Hybridan Small Cap Feast 14/03/22

Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen? Aquis Exchange (AQX.L) the exchange services group, announced its intention to apply for admission of the Group to trading on the Apex Segment of the Aquis Stock Exchange Growth Market. Aquis' shares will continue to trade on the AIM market of the London Stock Exchange plc to satisfy certain regulatory requirements. The Group is targeting admission to the AQSE Growth Market on 29 March 2022. New Energy One A

The Industrial Revelation

Airbus secures €15bn credit facility but partially restarts production in France & Spain, Cummins suspends production and FY20 guidance as customers shutdown

The Industrial Revelation

Japanese PMI falls to lowest level since 2009, GE Aviation cuts 10% of workforce, Kone downgrades 2020 outlook