Gooch & Housego plc (GHH LN) - One for the watchlist

The dust is starting to settle following the mid-August profit warning. Gooch has a record order book but has struggled to fulfil orders due to shortages of skilled employees and supply chain constraints. We cut our estimates in line with new guidance; FY22e PBT falls by 28% to £8m. Our valuation is cut to 900p from 1,150p. Despite near-term headwinds, the outlook is a bit brighter. Order flow is strong across all industry verticals, and recruitment and supply chain pressures have steadied. The

Hybridan Small Cap Feast 17/08/2022

Dish of the day Joiners: No joiners today. Leavers: Altus Strategies Plc has left AIM. What’s cooking in the IPO kitchen?** Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. T

Gooch & Housego - Trading update, 32% EPS downgrade and retirement of CEO

The group has announced a disappointing trading update signalling that despite a record order book, H2 trading has been ‘gated’, with the ramp up in production constrained by labour and supply chain shortages. It expects H2 progress over H1, but now expects FY22 EBIT to be £3.5m lower than previous expectations. It also announces the planned retirement of its long-standing CEO, Mark Webster, to be replaced by Charlie Peppiatt, until recently EVP at TT Electronics. We reduce our FY22 EPS forecast

Morning Note – 17 August 2022

Gooch & Housego plc (GHH LN) - Into the light

We think Gooch & Housego is attractive at the current share price and initiate research coverage with a valuation of 1,150p, indicating c.30% potential upside. Manufacturing is gradually recovering from COVID and supply chain disruptions, and the orderbook is now at record levels. Recent H1 results were mixed but the strength of the recovery in orders, particularly for industrial lasers, combined with abating disruption, prompted management to continue to support full year consensus earnings est

Morning Note – 7 June 2022

Gooch & Housego - Stronger H2 expected after H1 weakness – forecast unchanged

Interim results signal no changes to full-year expectations. The first half saw macro-economic challenges; although GHH coped well with rising costs due to previous restructuring and efficiencies taken, COVID-related challenges resulted in customer delays and component supply disruptions. A&D saw lower volumes due to these issues but is expected to have a stronger H2 supported by a strong order book. Industrial saw good growth in industrial lasers and semiconductor activity. No change to trading

Morning Note – 5 April 2022

Gooch & Housego - Half-year output constrained, but with a record order book

The group’s half-year update highlighted that it is seeing robust levels of demand across all its businesses, with a recent recovery also now coming through at A&D. This results in a record order book, which has grown by 25.6% in CER terms to £119.9m. However, first half output has been constrained by supply chain challenges, as previously identified, COVID-related absences and some shortages of high skilled labour. COVID-related staff absences have affected UK output recently. The group now exp

Morning Note – 23 February 2022

Gooch & Housego - Record order book; trading in line with expectations

The group’s AGM trading update signals that demand in the first four months of its financial year has been strong and improving. Some COVID-related issues have continued to affect some areas of the business. While mitigating actions have been taken, management now expects trading to be slightly more H2 weighted, with guidance unchanged for FY22. Trading conditions remain robust in a number of end markets such as hi-reliability fibre couples, industrial lasers and medical lasers, while the order

Morning Note – 30 November 2021

Gooch & Housego - FY results ahead of expectations, recovery on track

FY results were ahead of expectations, with a strong closing month. It has seen a strong recovery in nearly all its end markets, with some internal efficiency benefits gained and exceeding some currency headwinds and supply chain challenges. No change to forecasts with recovery expected to continue, underwritten by a growing order book, and management is cautiously positive. Our price target remains 1450p, offering upside after its recent underperformance.

Morning Note – 5 October 2021

Gooch & Housego - Year-end trading update – slightly ahead of expectations

The group has provided a positive year-end trading update, pointing to trading being slightly ahead of existing expectations. Gooch & Housego has seen a good recovery in underlying market activity, although the update indicates some supply-chain constraints and currency headwinds. We increase our FY21 EPS by 2.5% to 37.3p, but maintain our existing expectations for FY22. We also retain our 1450p price target with today’s update helping sentiment.

Surface Transforms (SCE LN) - £100m contract win vs. near-term headwinds

Surface Transforms has announced a £100m contract with OEM 10, a major global automaker. The Group will be the sole supplier for two model variants, and discs will replace those of a key competitor on an earlier model variant, providing validation of Surface’s superior technology. Revenue from this contract will flow in 2025e. In contrast, current trading has been hit by production delays at OEM 8. Production is now restored but Surface has struggled to provide enough discs in a shortened period

Hybridan Small Cap Feast 23/11/2022

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Kistos Holdings plc, intends to join AIM. The Company was incorporated to act as a new holding company for the group companies 0f Kistos plc (KIST), a holding company with the objective of creating value for its investors through the acquisition and management of companies or businesses in the energy sector. Anticipated Market Cap £327m. Expected 22 Dec 2022. AT85 Global Mid-Market Infrastr

LIBERUM: Accrol Group Holdings Plc* - Very strong first half

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

SHORE CAPITAL - N Brown Group+ (BWNG) - House Stock at 23p - Resignation of Chief Financial Officer

In-line interims, guidance unchanged

Victoria has reported underlying EBITDA of £100.1m that is in-line with October’s trading update. Revenues of £776m were ahead 59% (7.7% like-for-like organic growth) with significant impacts from acquisitions, namely the Balta carpets and rugs businesses, and inflationary price increases. Underlying PBT and diluted EPS were down 3.1% and 26% respectively. Despite on-going macro challenges, the Board has reaffirmed that it continues to be confident that synergy gains and other management actions

A strong H1 performance

IG Design: A strong H1, with progress on many fronts

IG Design Group has delivered a strong set of interim results, as guided in October’s trading update, with adjusted PBT up 35% to $27.4m on a reported basis (+42% on a constant currency basis). This was driven by accelerated ordering of seasonal goods by retailer customers keen to de-risk their supply chains, alongside catch-up pricing and product engineering, which has delivered some gross margin recovery. While cautious on the outlook given continuing economic uncertainties, the Board has upgr

Cenkos: CAP-XX Ltd -- Battery-Free and Wirelessly Powered IoT

CAP-XX has announced a partnership to develop solutions that combine Energous' WattUp technology with CAP-XX's high-performance supercapacitors. The combination of CAP-XX supercapacitors with Energous' WattUp over-the-air wireless power technology is expected to enable maintenance-free IoT devices that do not require battery replacement. Energous, listed on NSADAQ (Ticker: WATT, market cap $75m), is a fabless semiconductor and systems supplier for Radio Frequency wireless power networks. Based

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

Q3 22 beat fails to impress

Reckitt reported strong Q3 22 trading numbers (+7.4% LFL growth), beating estimates. However, the beat wasn’t enough to impress investors, who took note of the 4.6% volume drop and marked the stock price down by 4% during the session following the announcement. Although the FY22 growth outlook was upgraded to 6-8%, this implies a weak Q4, validating investors’ caution. We will upgrade our estimates marginally (1-3%), to reflect the strong Q3 performance.

Morning Note – 24 November 2022

Hybridan Small Cap Feast 18/07/2022

18 July 2022 @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 objective

Encouraging H1 figures, but we don't bet too much on the mid-term strategy

Good H1 figures and the turnaround plan on track make the risk/reward tilt upwards given the recent underperformance against BAT. However, we continue to believe that IMB’s combustible focus strategy is not the right one and we see much more positive catalysts when looking at BAT.

The Big Book 2022 - Extended Coverage & Best Ideas

The Big Book 2022 includes our highest conviction Best Ideas for 2022. In 2021 our Best ideas outperformed by 24%, extending our track record (>10% outperformance on average over the past decade). We have again divided our coverage into six distinct themes to create our Matrix. We have added two new categories this year: ESG and Pricing Power, both of which will be fundamental investment themes for 2022. We look forward to discussing our ideas with you.