Companies: GHH SAV AGL SAVE
Interims were in line with expectations, with most areas showing decent recovery over recent months and existing underlying market trends continuing, although noting currency headwinds. We raise our FY21 EPS forecasts by 4.4% and by 7.7% in FY22, thus prompting us to increase our price target from 1355p to 1450p, maintaining existing target multiples. The shares premium rating is well-deserved and the recovery in trading momentum is assisted by restructuring benefits.
Companies: Gooch & Housego PLC
Companies: GHH IGP IOM UNG ARB
The group’s half-year trading update points to trading in line with expectations, with evidence of trading impetus improving across most markets. The various industrial laser markets are now more clearly in recovery mode driven by Asia, with the US and European markets now also gaining momentum. Additional A&D contracts and robust medical diagnostics demand have also been positive. Some logistical and remaining COVID-19-related stickiness in the supply chain has been seen but is expected to impr
Parsley Box, the direct to consumer provider of ready meals to the 60+ demographic, recently announced its AIM IPO plans. Parsley Box provides ready meals, which are not required to be stored in a fridge or freezer, have a shelf life of up to six months and are cooked in minutes. The company reported revenue of £24.4m for the financial year ended 31 December 2020 (unaudited). Deal details TBC and admission is expected to occur late March/ early April 2021. Caerus Mineral Resources, a London base
Companies: HUM IDOX BEM GHH PYC GTC SYM BEG SENS
Companies: BOTB GHH PHD KRM SAVE
The group’s AGM trading update, covering the first four months of FY21, shows continued improvement in trading, in line with expectations. Industrial lasers is seeing recovery broaden, with high levels of demand continuing for fibre optics and high-reliability fibre couplers. A&D remains strong with further orders, and Lifesciences has continued to see good growth, with recovery now being seen in medical lasers. It has announced the streamlining of two further sites to gain further efficiencies.
AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC. Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world's largest market for brands and retailers, intends to IP
Companies: IRR MKA GHH LEK POW KRM DRUM ODX FA/ ALBA
Companies: GHH IOM BBB
Full-year results were better than our forecasts, with PBT £0.8m better than expected, albeit showing a 35% decline following the effects of COVID shutdowns etc. Cash generation was also better than expected, resulting in net bank debt of £6.5m, a £7.8m reduction. No change to trading forecasts, with lower net debt. With maintained earnings, we also maintain our 1,100p price target based on a 32.3x P/E for FY21E, with the high P/E offering limited scope for further expansion, though today’s resu
Gooch & Housego (GHH): Corp
The group’s brief year-end trading update was encouraging, with trading for the year slightly ahead of expectations. The order book overall is slightly ahead on constant currency. Cash collection appears to have been better in H2 than expected. In the current year, we look for some operational drop through from higher revenue in A&D, Lifesciences and Telecoms, plus some operational streamlining gains. No change to FY20 PBT forecasts and we reintroduce FY21 forecasts, with a price target of 1100p
Arcontech (ARC): Corp Solid FY20 results give a strong foundation for growth | Avacta (AVCT): Corp SARS-CoV-2 antigen test – manufacturing expansion | Gooch & Housego (GHH): Corp Trading update – H2 trading improves as expected
Companies: Arcontech Group PLC (ARC:LON)Gooch & Housego PLC (GHH:LON)
Circassia Group (CIR): Corp | Gooch & Housego (GHH): Corp | Intercede (IGP): Corp | Quartix (QTX): Corp
Companies: GHH IGP QTX
Interim results were in line with previously reduced expectations, illustrating lower levels of demand in the Industrial division and some effects of COVID-19 in Q2. Profitability was affected by reduced overhead recovery and a lower mix of high margin industrial lasers as well as R&D expensed in the A&D division. No change to 2020 forecasts, with an uptick expected in H2, backed by a solid order book. While the current year P/E looks high at 35x, we anticipate a good profit recovery will make t
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The H1 results (in line with expectations) were led by New Category growth (up by +50%) and the partial recovery from the pandemic impact. We see the outlook as good, with annual sales revised upwards and even though margins may be challenged by increased New Category investments. This is definitely good for the long term, but could be (unfairly) misinterpreted by the market at the moment.
Companies: British American Tobacco p.l.c.
Reckitt Q2/H1 21 numbers missed estimates. Q2 sales declined 1%, hurt by slowing Hygiene growth (+7.8%) and weaknesses in Health (-5.6%) and Nutrition (-9.7%). H1 sales were up 1.5%, driven by Hygiene (+18.1%). The adjusted operating profit margin (-290bp to 21.6%) was hurt by steep rise in input prices.
FY 21 guidance (0-2% growth, 40-90bp margin contraction) was re-iterated (ex-IFCN China incremental margin offset by cost inflation). We will cut our estimates to factor in the soft growth/marg
Companies: Reckitt Benckiser Group plc
The trading update confirms H2 trading and the FY outlook is in line with expectations, with a good first-half performance and significant investment in new facilities and capabilities. Revenue growth was constrained by continuing pandemic, supply chain and Brexit effects, though with some recent signs of improvement. IHT opportunities are progressing well, including with its EV OEM, with APCBs seeing solid growth but with an increase in demand and order book, it plans to introduce a second shif
Companies: Trackwise Designs Plc
Trackwise Designs expects H121 group revenues to increase 71% year-on-year to £4.1m, reflecting the acquisition of Stevenage Circuits (SCL) in March 2020 and a 130% jump in IHT revenues to £0.6m. Management expects adjusted EBITDA to quadruple to £0.45m and adjusted operating loss to narrow from £0.4m to £0.1m. We leave our estimates unchanged.
A new partnership with Alshaya Group in the Middle East, building on Debenhams established store presence in the region, the launch of a new local Debenhams eCommerce platform and providing a new route to market for the Group’s existing portfolio of brands.
Companies: boohoo group Plc
In a positive Q1 trading update discoverIE has confirmed that the strong order growth reported in H2 2021 has continued. The order book at June 2021 was £220m, 50% higher organically than last year and 30% higher organically than two years ago. Q1 was ahead of the Board’s expectations with sales +21% ahead of Q1 2021 at CER (+16% yoy organically and +10% organically compared with two years ago). By region, China and Germany have produced the strongest growth. Organic growth was similar in both d
Companies: discoverIE Group PLC
boohoo Group has announced solid Q1 FY22 trading with Group revenue +32% YOY ahead of ZC forecasts (+25%) and consensus expectations (+28%), driven by strong momentum in key markets of the UK (+50% YOY) and USA (+43% YOY) despite tough PY comps (Q1 FY21 +45% YOY).
Sosandar’s FY21 results have been well-trailed with revenue growth of 35% to £12.2m and a reduction in EBITDA losses to £2.9m (PY: £7.7m). The accelerated growth seen in Q4’21 has continued into Q1’22, with sales increasing 256% YoY and the gross margin expanding 200bps QoQ. With restrictions easing, we envisage a continuation of growth in FY22 coupled with a reduction in EBITDA losses (breakeven in H2). May’s £5.8m (gross) ABB has provided the working capital to support a significant increase i
Companies: Sosandar Plc
Q2 results were roughly in line with expectations. With little surprise, the FY21 margin outlook was cut given the price uncertainties of the raw materials. This is the first bad signal for the sector.
Companies: Unilever PLC
Reckitt reported strong Q1 21 revenue, trumping estimates by 1.6%. Q1 revenue was up 4.1% on a lfl basis, to £3.51bn, attributable to 28.5% growth in Hygiene, which offset the weakness in Health (-13%) and Nutrition (-7.4%). E-commerce maintained momentum with 24% growth.
FY21 outlook was unchanged: 0-2% top-line growth with 40-90bp margin contraction yoy.
We will raise our estimates to factor in the strong Q1 showing and re-iterate our positive stance on the stock.
Although renewable energy has been gaining increasing traction over the past decade as the costs of renewable energy generation and perhaps more importantly, energy storage have fallen, 2020 was a seminal year for transitional energy investors driven by governments seeking to “build back better” after COVID-19. The US has committed US$2.25trn largely focused on the energy transition while the EU has committed US$0.54trn with companies around the world including China committing to net zero targe
Companies: LAM FSJ TGP PRES JMAT CRPR NEXS VLX
Logitech’s new fiscal year got off to a strong start with results above both our and consensus expectations. The momentum seen at the end of last quarter carried through into this one with Video Collaboration, PC Webcams, and Tablet & Accessories again registering strong growth rates. As guided by the company, operating expenses also increased. A strong Q1 and no change in outlook means that the latter half will be impacted by a high base of comparison.
Companies: Logitech International S.A.
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Reckitt reported largely in line Q4/FY 20 results. Q4 revenue was up by 10.2%, driven by Hygiene (+25.7%). The FY adjusted EBIT came in at £3.3bn with the margin at 23.6%. The final dividend remained unchanged at 101.6p. E-commerce sales were up by over 56% (~12% of revenue). The firm confirmed M&A developments which realign its portfolio towards faster-growing markets.
FY21 growth is expected at 0-2% with a 40-90bp margin contraction. We do not expect any major change to our estimates.
Proposed move to AIM from the main market (standard) by Emmerson (EML.L) to provide Emmerson with access to a market and environment which is more suited, in the Board's view, to the Company's current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoi
Companies: LND GDR GAMA SOLI SHED RLE CRU WRES SBI MNO