discoverIE confirmed a return to organic revenue growth in the last two months of FY21 and 17% organic growth in orders over the same period, helped by robust performance in target markets, which make up more than 70% of revenue. With board expectations for underlying earnings now ahead of the consensus range, we have upgraded our forecasts reflecting higher revenue and lower interest expense, resulting in an upgrade to underlying EPS of 7.7% for FY21e and 3.3% EPS for FY22e.
Companies: discoverIE Group PLC
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Management has confirmed a strong finish to FY 2021, ahead of the upper end of expectations, and we have upgraded FY 2021E and 2022E EPS by 3%. Trading momentum has continued to strengthen, with group orders increasing by +17% organically in the last two months of the year (led by Asia), laying the foundations for a good start to FY 2022. We reiterate our view that discoverIE is resilient, flexible and well positioned for growth in the structurally growing markets of Renewable Energy, Transporta
Trading has improved through the course of H221, with order intake for the four months to the end of January up 10% y-o-y on an organic basis and average monthly sales up 4% compared to H121. As discoverIE expects to report underlying EPS at the upper end of consensus forecasts, we have raised our FY21 forecasts, driving a 4% EPS upgrade.
Companies: discoverIE Group PLC (DSCV:LON)Amino Technologies plc (AMO:LON)
Looking Ahead At The Next Week
discoverIE reported resilient H121 results considering the expected drop in demand due to COVID-19. Having taken action at the start of the pandemic to reduce costs and conserve cash, the company was able to minimise the impact of the revenue shortfall on operating profit and pay down a substantial amount of debt. With order intake and design win activity now moving in the right direction, the company is well positioned to resume its growth path. While we have reduced our forecasts to reflect th
discoverIE has announced the acquisition of Limitor, a designer and manufacturer of thermal safety components and sensors, for €14.5m. It is subject to regulatory approvals, which are expected during the final quarter of this financial year, and will operate within the group’s Variohm cluster of specialist sensor businesses. With an operating margin of 21%, it is a high value-add business and is expected to enhance group underlying earnings and margins. We have upgraded FY 2022E EPS by 2.5%, rai
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discoverIE has weathered the pandemic well, with H1 sales down -6% and adj. PBT down -12%. Cash flow was particularly strong, reducing net debt from £61m at March 2020 to £42m at September. The second half has started well, with orders ahead of sales and up on last year, and dividends have resumed with a 3.15p interim (up +6% on last year). We are factoring a touch more caution into our forecasts to allow time for orders to build into sales, but reiterate our view that discoverIE is resilient, f
discoverIE reported resilient trading through H121, with a revenue decline of 6% y-o-y, noting that sales in target markets performed significantly ahead of other sectors. Order intake improved through Q2 and the book-to-bill ratio for September was above 1x. With increased confidence in its outlook and a strong balance sheet, the company intends to reinstate the dividend with interims in November and has resumed its M&A strategy with the acquisition of a high margin US sensors business.
Bango (BGO): Corp Bango scales up Far East operations | discoverIE (DSCV): Corp Resilient H1, improving outlook, dividends returning | LPA Group (LPA): Corp Prestigious Siemens project award | Touchstone Exploration (TXP): Corp Chinook announced as another significant gas discovery
Companies: DSCV LPA TXP
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CAP-XX is a world leading developer and retailer of supercapacitors, an important electrical energy storage technology, that delivers high power densities not possible with batteries. The company, its technology and strong IP position are well proven with more than 62 million CAP-XX supercapacitors sold to-date by CAP-XX and its four licensees. As well as reaching EBITDA positive on an underlying basis for its H1/FY21, it has recently concluded a transformational deal which has seen it acquire t
Companies: CAP-XX Limited
boohoo Group has announced results for the 12 months ended 28 February 2021, reporting a strong finish to the year, with performance ahead of ZC’s forecasts, driven by strong momentum in both the UK and USA in the final months of the year. Profit generation has been robust, despite significant cost headwinds resulting from COVID and the impact of a number of dilutive acquisitions made over the year. The shares have traded sideways in recent months, despite the Group’s continued strong trading pe
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Trading momentum has remained very strong since the group last reported in January, with own Ecomm sales +50% y/y, stores trading ahead of FY19’s levels since re-opening and Friends of Joules and Garden Trading both growing strongly. This drives material PBT upgrades of c.35%-60% over our forecast horizon reflecting the higher sales base and the increasing leverage benefits from the group’s well-invested infrastructure and strong drop through as Friends of Joules and Garden Trading scale. We rai
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SiS has extended its partnership with the British professional cycling team, serving as a reminder of the group’s market-leading brand, product and innovation agenda, which continues to fuel an exciting pipeline of new products. Management has a clear strategic plan to more than double sales over the next 4-5 years, delivering a double-digit EBITDA margin and 50%+ EBITDA CAGR. With a strong balance sheet, now self-funding, and increasing momentum, we raise our TP to 100p (from 80p), noting that
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The UK market showed a continued recovery in the first quarter albeit the indices are still well short of their all-time peaks, unlike many of their international peers. The FTSE 100 has risen by 1,186 points (21.4%) since the end of October and the FTSE 250 by 4,304 points (25.0%). The comparable performance since the start of the year is less spectacular- the FTSE 100 has risen by 253 points (3.9%) and the FTSE 250 has risen by 1,070 points (5.0%). The factors behind the sustained rally are fa
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Tern plc* (TERN.L, 14.9p/£49m) Portfolio update: Good commercial progress on multiple fronts (04.05.21) | CAP-XX Ltd* (CPX.L, 8.7p/£38.5m) Contract win: Windscreen damage detection application (04.05.21) | Mirada plc* (MIRA.L, 82.5p/£7.3m) FY pre-close: In line and growth in H2 (05.05.21)
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Whilst today’s interims reflect the ongoing impact of the pandemic, order intake has been on an improving trend since January, prompting a full year revenue upgrade (from £8m to £10m) within this note. The cost base has been well managed and the Group is well placed to return to profitability as trading patterns normalise post COVID. Following the Tender Offer towards the end of the period, the net cash balance remains a strong £7.8m.
Companies: Zytronic plc
As hinted at in the brief trading update on 20th January, Galliford Try has coped well with COVID restrictions and has delivered a return to profitability, a return of the dividend (1.2p interim), and an improved cash profile. This hasn't come easily, and is the result of a root and branch overhaul of risk processes, the costs base, and internal monitoring and attitudes. In this period it has also been helped by supportive end markets.
Companies: Galliford Try Holdings PLC
MAST Energy Developments (MED) is to IPO on the Standard List on 14th April 2021 under the ticker MAST. The company has raised £5m giving a market capitalisation on listing of c. £23m. MED is currently a 100% subsidiary company of AIM quoted, Kibo Energy*. MED was established to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market. PensionBee has confirmed its intention to float on the High Growth Se
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Today's news & views, plus announcements from NXT, QLT, HBR, GFRD, EQN, RQIH, BREE, DXRX
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A/W’21 is the starting point for change across the group’s ranges from core all the way up to concept and trend items. There is a coherence and excitement across the new ranges that elevate and refresh the brand, yet it is still Ted Baker with all its signature handwriting. The progress made in 6-months since the new Global Head of Creative joined has been impressive and we see incremental benefits as new ranges are dropped more often, the critical path is shortened by 3 months and excitement ar
Companies: Ted Baker PLC
VW closed a solid Q1, comfortably outperforming market expectations on the back of strong sales in China and a product mix pulled by the higher-end, lifting margins to pre-pandemic levels. The EV offensive continues to gain speed with the group already earning the top spot on European BEV sales. Although the current semiconductor shortage casts a shadow on the Q2 performance, the upgraded margin guidance is a sign of a brighter FY outlook.
Companies: Volkswagen AG Pref
Burberry has released its FY 20/21 figures (ended in March), above consensus and our expectations.
The rapid full-price sales rebound and margin progression in the second half of FY20/21 have confirmed the improved attractiveness of the brand; in particular, the strong demand in China, Korea and the US has continued to be the firepower.
However, the updated cautious guidance is indicating some weakness in terms of profitability for the near term.
Companies: Burberry Group plc
US & German manufacturing PMI hits lowest readings since 2009, UK manufacturing PMI heads below 50, BorgWarner expects material financial impact from customer production halts
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Wickes to demerge from Travis Perkins and list on the Main Market. Expected 28 April. Advance Energy to complete an RTO on AIM indirectly acquiring up to 50% of Carnarvon Petroleum Timor which holds a 100 per cent. working interest and is the contractor under the Buffalo PSC, offshore Timor-Leste. Carnarvon Petroleum Timor is a subsidiary of ASX listed company, Carnarvon Petroleum Limited. The net proceeds of the Placing of approximately £20.01m (approximately US$27.51mm) will be used to fund
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