discoverIE Group - Upgrading on strong close to FY23

With Q423 trading slightly better than expected, discoverIE is on track to deliver FY23 underlying earnings ahead of board expectations. The year-end order book was also higher than anticipated due to stronger than expected order intake in Q423, providing good visibility for FY24. We have upgraded our underlying EPS forecasts for FY23 and FY24 and reduced our net debt forecasts over the same period.

Morning Note – 19 April 2023

discoverIE - Strong finish to the year, order book higher than expected

In a positive FY 2023 year-end trading statement (to March), discoverIE has detailed Group sales were up +16% on FY 2022. This progress splits: +8% organic (in both divisions), +5% from acquisitions and +3% from currency. Sales in Q4 continued to be strong despite challenging comparators, with total Q4 growth of +8% (+2% organic, +3% from acquisitions, +3% from currency). The order book has remained at a higher than expected level following a strong order intake in Q4, which was +16% higher than

discoverIE Group - Better trading and acquisition drive upgrades

discoverIE’s Q323 trading update confirmed continued good momentum, with FY23 underlying earnings tracking ahead of board expectations. The company has completed the previously announced acquisition of Magnasphere, adding a high margin sensor business to the Sensing & Connectivity division. We have upgraded our forecasts to reflect better trading and the accretive acquisition and note that gearing remains below the company’s target range, providing headroom for further M&A.

Morning Note – 25 January 2023

discoverIE - Positive Q3, strong order book, EPS upgraded

In a positive trading update, discoverIE has detailed positive trading momentum continued through Q3 with, a strong order book providing good visibility of demand. Q3 Group sales were up +11% on last year (+5% organic, +3% acquisitions, +3% foreign exchange). Gross margins continued to be robust and the semiconductor issues that have impacted two of the Group’s 21 businesses (as flagged last year) are continuing to improve. Consequently, the Group is on track to deliver adj. earnings ahead of th

Morning Note – 3 January 2023

discoverIE - Differentiated, international and growth focused

discoverIE announced the acquisition of Magnasphere, a US-based designer and manufacturer of magnetic sensors and switches for industrial applications, on 22 December 2022. Magnasphere is a high-value-add, high-margin business (2021 operating margin 28%) and will operate within the Group’s Variohm cluster of specialist sensor businesses (part of the Sensing & Connectivity division) whilst retaining its distinct brand identity. The cash consideration of $22m (£19.1m) represents 11.9x historic pre

discoverIE Group - Acquiring US sensor specialist

discoverIE is acquiring Magnasphere, a US-based designer and manufacturer of magnetic sensors and switches for cash of £19.1m. The business will operate within the Variohm cluster in the Sensing & Connectivity division. The deal fits well with the group’s strategy, providing strong operating margins (28% in CY21) and good growth prospects, as well as further access to international markets. We estimate the deal is likely to improve FY24 underlying operating margin by c 0.3pp to 11.5% and FY24 EP

discoverIE Group - Focused on sustainable growth

discoverIE reported another strong set of results for H123 despite ongoing supply chain challenges, with 14% y-o-y organic revenue growth, 37% EPS growth and a record end-H1 order book. As the company is on track to achieve underlying earnings for FY23 in line with board expectations, our FY23 and FY24 underlying EPS forecasts are broadly unchanged. The company is refining its ESG strategy and has announced its net zero commitments (scope 1 and 2 carbon emissions by 2030, scope 3 by 2040), havin

Morning Note – 23 November 2022

discoverIE - Well positioned for further growth in a changing world

Strong H1 results from discoverIE provide further evidence of the value of the group’s focus on the structurally growing markets of renewables, medical, transport and industrial & connectivity. H1 2023 sales were up +26% (+23% CER, +14% organic) and adj. EPS up +37%. Operating margins rose from 10.3% to 11.7%, evidencing rising value-add and the group’s ability to pass on the impact of inflation and supply chain issues. discoverIE’s components are essential to client projects but generally only

discoverIE Group - Robust H123 order intake drives record orderbook

In H123, discoverIE reported strong organic growth in revenue and orders, with a book-to-bill of 1.07x and a record order book at the end of H1. Gross margins have been resilient, despite various supply chain challenges, and the company is adding new production capacity in India. The company is on track to deliver underlying earnings in line with board expectations for FY23; we maintain our forecasts.

Morning Note – 13 October 2022

discoverIE - Strong growth continues alongside another record orderbook

In a positive H1 statement discoverIE has confirmed that trading remains in line with full-year expectations. H1 sales were up +26% (+23% at CER and +14% organically) driven by +17% organic growth in Magnetics & Controls and +11% in Sensing & Connectivity. Orders were stronger than expected with a book to bill of 1.07 and the orderbook increased to another record level at £257m (vs. £240m at Q1 and £224m at the start of the financial year). Price rises have offset cost inflation and gross margin

boohoo Group (BOO LN) - Building back to growth

FY23 revenue and EBITDA is a marginal beat vs. estimates with cash generation the standout beat. Market conditions are challenging, reflected in lower FY24 growth, but strategic progress is delivering improved profitability, with medium term guidance confident in a return to double-digit growth and increased profitability.

Initial Equity Trading Comments - 15 May 2023

LIBERUM: Ceres Power - Initiation - A Compellingly solid case

Mixed thoughts about Imperial Brands

Despite falling short on the bottom line, the H1 23 results were in line with the street’s expectations in terms of the top-line and operating profit. The challenges posed by high comps and the effects of the COVID period significantly impacted tobacco volumes but this decline was effectively mitigated by pricing strategies. In our assessment, the market’s lukewarm response to the results can be attributed to a perceived lack of catalysts for Imperial.

Morning Note – 11 May 2023

AGM update; benefitting from geographic diversity

Portmeirion has issued a brief AGM statement covering the traditionally quieter period of the year. Progress has been made YTD with geographical diversity and self-help being supportive features we understand. Overall, the expectation is for a flat H1 performance, which in the context of a challenging consumer backdrop would be a creditable outcome. We note USA has been singled out as showing customer caution in recent weeks re ordering and will need to be closely monitored over Q2. With c.80% o

Second half promises

No growth in sight, we cut top-line forecasts for 23/24e We have updated our forecasts for the seven European online retailers under our coverage, following the Q1 reporting season. At the start of the year, growth for online pure-plays was scarce. Current trading comments suggest this hadn''t changed in April/May. The outlook message across the sub-sector was consistent as almost all the retailers push top-line growth and profit expectations out to the second half of 23/24e. This report aligns

Portmeirion+ (PMP, House Stock, 508p) - No changes to forecasts on AGM statement

PROGRESSIVE: Watkin Jones: Investment appetite returns but rephased

Watkin Jones highlights a continued recovery in the institutional funding market in today’s interim results, which were in line with its expectations of a significant H2 weighting for FY23E. This, and attractive new land opportunities, should support its long-run target margins. However, the group has exercised caution in recognising profits on long-term contracts, leading us to cut adjusted PBT by £25m for FY23E, while leaving FY24E unchanged. Longer term, we believe the clamour for rental acco

Melrose Industries - The stars are aligned

Following the demerger of Dowlais automotive, Melrose Industries is a focused aerospace group with a retuned strategy, still with shareholder value at its core, to develop its capabilities long term as a focused entity. The flexion point in the aftermarket partnerships, benefits from the operational actions and the accelerating recovery in the aerospace market provide strong positive dynamics for Melrose. Profit is set to expand significantly, well beyond the pre-acquisition levels, fuelling a

Hybridan Small Cap Feast - 25 May 23

25th May 2023 @HybridanLLP 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 objectiv

Morning Note – 9 May 2023

Hybridan Small Cap Feast - 26 Apr 23

26th April 2023 @HybridanLLP 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 object

Hybridan Small Cap Feast - 22 Feb 23

22 February 2023 @HybridanLLP 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 objec

Hybridan Small Cap Feast - 23 Mar 23

23 March 2023 @HybridanLLP 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 objectiv