James Halstead is a manufacturer and international distributor of commercial floor coverings. The group has this morning released an update to coincide with its AGM, covering the first four months of its current financial year. This demonstrates both a continued robust performance against the present backdrop, alongside the acquisition of a distribution business in Malaysia. The previously declared final dividend 10.0p will be paid on 11 December, resulting in another record full year dividend of 14.25p.
Companies: James Halstead plc
James Halstead is a manufacturer and international distributor of commercial floor coverings. The group has a particularly strong track record in delivering for shareholders over many decades and FY 2020A results again demonstrated another highly creditable performance against the current challenging backdrop. The group's strong focus on product design and innovation, in combination with highly rated customer service, has resulted in an enviable reputation for excellence in its expanding geographical markets. These factors have led to a multi-decade annual increase in the dividend for shareholders, underpinned by strong cash generation, which has again been achieved in what has been a particularly difficult period for the vast majority of businesses globally. With such a robust platform in place, we see more of the same being delivered in the years ahead and see fair value for the shares at 550p.
James Halstead is a manufacturer and international distributor of commercial floor coverings. This morning, the group has provided a full year trading update for the twelve months to 30 June 2020, which illustrates stronger demand than anticipated at the time of the interims in March. A second interim dividend has been declared, whilst the year-end cash figure is reported to be ahead of the interim position. Furthermore, since the year-end, UK sales are reported to be less than 10% down against the comparative period, whilst key overseas businesses are near flat.
Dillistone has reported FY results to December 2019 with revenue of £8.0m (FY 2018: £8.7m), an adjusted loss before tax of £0.3m (FY 2018: £0.0m) and, against a favourable tax outcome (R&D tax credits), EPS of -0.15p (FY 2018: +0.61p). The company ended the year with cash of £0.4m (FY2018: £0.7m), and net debt position of £0.8m (FY 2018: net debt £0.4m).
Companies: Dillistone Group Plc (DSG:LON)James Halstead plc (JHD:LON)
Solid interims – near term outlook uncertain
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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Japanese PMI falls to lowest level since 2009, GE Aviation cuts 10% of workforce, Kone downgrades 2020 outlook
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US building permits fall in Feb missing estimates, Scania to temporarily stop European production from next week, JCB halts production across 9 UK plants
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German sentiment posts largest fall since 1991, US non-residential construction backlog rose in Jan, Daimler suspends European production for (initial) 2 weeks
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UK GDP flat in Jan missing estimates, Japan's machine tool orders fall 30% y/y in Feb, Boeing falls 18% yesterday as draws down loan
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German industrial production rose above expectations in Jan, Taiwan's exports rise in Feb but expect March decline, US machine tool orders fall 34% in Jan
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Oil price falls 30%, Chinese exports fall 17% in Jan-Feb, Japan's Q4 GDP revised down to 7% fall, Continental forecasts 2020 decline in global car production
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US durable goods falls less than expected in Jan, Japan and South Korean industrial production beat Jan estimates, CRH sees growth in US construction markets
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UK & German PMI beats estimates for Feb while US misses, John Deere sees "early signs stabilization in US farm sector" as it beats Q1 FY20 rev. estimates
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UK CBI manufacturing orders beat estimates for Feb; Taiwan revises down export growth in Feb due to coronavirus; Japan manufacturing PMI falls
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Boohoo has delivered strong results over the peak trading period for the four months ended 31 December 2020. Group revenue is +40% YOY, with robust growth seen across all brands and regions. The Agenda for Change programme is progressing at pace, demonstrating the Group’s commitment to setting a new standard for ethical supply chains in the fashion industry.
Companies: boohoo group Plc
Today's news & views, plus announcements from JET, PSN, SONG, HWDN, MSLH, PAGE, WMH, ASC, BGO, CUSN, CAY
Companies: Bango plc (BGO:LON)Persimmon Plc (PSN:LON)
Although 2020 will probably go down in history as one of the most challenging years experienced during our lifetime, it will also likely be chronicled as one of the best years for the recognition and appreciation of science. As we entered 2020, the COVID-19 pandemic was in its infancy. However, it rapidly evolved through the exponential rise in infections and mortality globally. Much has been achieved during the past 12 months in the fight against COVID-19, but, as we enter 2021, there are considerable concerns about the emergence of a mutant version of the virus and the second wave that we are now facing.
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Following forecast upgrades in December, Gleeson’s H1 update is again stronger than expected. Gleeson Homes will report volume growth of 17% in H1 to 951 completions. This represents 56% of our FY forecast. In a normal year, this probably would have prompted further forecast upgrades but we make no changes at this stage. This is a prudent position just one week into lockdown 3 but we note that (unlike in lockdown 1) building and sales can continue. The full year outturn is therefore likely to be at least in line with expectations. Gleeson Strategic Land, meanwhile, has completed its first transactions since the onset of the pandemic, which is an encouraging sign with medium and large housebuilders returning to the market. Next year’s 2,000 home target has been reiterated and we remain highly confident in growth prospects thereafter.
Companies: MJ Gleeson PLC
Cenkos Securities plc has terminated coverage of RA International Group Plc. Our previous recommendation (BUY) and forecasts can no longer be relied upon.
Please contact Cenkos for further information.
Companies: RA International Group Plc
A positive Y/E trading update from Portmeirion this morning with the full year outcome comfortably ahead of market expectations. There is a c7% revenue beat vs our forecast which flows through to us upgrading our FY20 PBT from £0.2m to £1.2m - a highly pleasing outcome in the context of our deep value/recovery/new management thesis. The outperformance was led by the UK/USA where trading proved robust in H2 despite lockdown due to strong online momentum. We keep our outer year profit forecasts unchanged at this stage given the CV19/macro backdrop, but understand current trading is positive with both factories open and the order-book healthy. Management is fully focused on executing the strategic growth plan outlined at the time of the June’20 fund raise and we expect a fuller update at the March finals. Overall, today’s update is a step in the right direction in building confidence in the growth / online plan and should be well received by investors
Companies: Portmeirion Group PLC
Accrol has delivered strong H1 results, with underlying EBITDA +69% YOY driven by stronger than expected gross margins as mix benefits continue to come through. We maintain earnings forecasts for now, albeit believe these to be well underpinned by margin improvements, synergies and growth. We believe Accrol is well positioned to emerge as a £35-40m EBITDA business over the medium term, in what we see as an exciting period for the Group.
Companies: Accrol Group Holdings plc
Recent news has been positive. Notably, the Group announced a ground-breaking £27.5m contract award with a new OEM customer in mid-September. Trading has been more resilient than we expected at the start of the Covid-19 pandemic, demonstrated by the positive full year pre-close update issued today. Revenue for the year to 31 December (£2m) is in-line with our forecast but gross cash is better, by c.£250k. Operational developments continue apace, and reflecting a healthy pipeline and expanding workforce, a dedicated HR executive has been hired. Confidence in the medium-term demand for the Group’s products has improved with recent contract wins; management now believes its Knowsley factory, when fully built-out, will be able to generate £75m of revenue each year against £50m, previously. Our estimates are unchanged pending the full May statement but with a stronger medium-term outlook, we lift our valuation to 65p from 57p.
Companies: Surface Transforms plc
Victoria has issued a trading update highlighting that the strong performance it announced in H1 has continued, with the Group achieving record revenue and operating profit for Q3 to end December. Group revenue was ahead by more than 10% in Q3, in part due the acquisition of the business and assets of Ascot in February 2020. We see the statement as reenforcing the positive messages made at the time of the interim results at the end of November that demonstrated the resilience of the Group. Performance is benefiting from strategic investment in logistics and service in 2019, operational efficiencies, consumers focusing on refurbishing their homes and maintained production and deliveries to satisfy demand. As in November, there will be a UK lockdown impact in Q4, albeit the Board believes Victoria is well placed to meet this headwind. We have no formal forecasts and will initiate In due course.
Companies: Victoria PLC
Boohoo has announced meaningful progress in its Agenda for Change Programme, to deliver long lasting change to its supply chain and business practices. Sir Brian Leveson PC has been appointed to provide independent oversight of the programme, with KPMG engaged to provide additional resource, expertise and independence, working alongside the Group’s internal responsible sourcing and compliance team, as well as with external supply chain audit specialists Bureau Veritas and Verisio. We believe the calibre of the appointments reflects the Group’s unwavering commitment to implementing in full, and with complete transparency, all recommendations of the Independent Review.
Games Workshop Group’s (GAW’s) H121 trading update highlights that it has enjoyed a stronger end to the period than expected by management: H121 PBT will be not less £90m (y-o-y growth of c 54%), £10m higher than indicated in the 7 November trading statement (see our recent update note). Therefore, GAW’s PBT in H121 is greater than that for the whole of FY20. The strong performance leads to a 40% increase in the year-to-date dividend, as the company continues to distribute truly surplus cash. We upgrade our PBT forecasts for FY21 by a further 6%. Following the relative weakness in the share price in recent weeks, and the upgrade to our forecasts, the P/E multiple of 28.9x for FY21e is back below recent highs.
Companies: Games Workshop Group PLC
MobilityOne Ltd* (MBO.L, 9.5p/£10.1m) | Maestrano plc (MNO.L, 7.0p/£5.6m) | GetBusy plc (GETB.L, 86p/£41.6m) | Solid State plc (SOLI.L, 580p/£49.5m)
Companies: MBO MNO GETB SOLI
We initiate on Portmeirion and argue that it is in a better position than the current market valuation suggests. It has delivered a resilient first half and, following a strategy reset under the new CEO, it has much more enhanced capabilities with an improving model and profit outlook. Furthermore, Portmeirion is well funded with no balance sheet concerns. The shares trade on low spot multiples of 10x FY21 P/E with and 5x EV/EBITDA with a 9% FCF yield. A SOTP analysis based on peer/corporate deal metrics shows fair value towards 650p. Patient deep value investors should take a much closer look.
Although CV19 rounded off a disappointing year, BAR was just profitable in FY20 and ended the period with £21m cash. After a challenging transition post the disposal of manufacturing, a new and experienced leadership team is now in place which has laid out clear future growth plans. Through a combination of organic growth, brand focus, productivity gains and selective acquisitions, BAR aims to grow sales to £50m over the medium term. The business model is inherently high margin and cash generative and, if these characteristics are borne out, future value could increase several fold compared to today’s £20m.
Companies: Brand Architekts Group plc
President Trump likes to project himself as a highly successful businessman, but surprisingly little is known about his true financial position. Various articles, including a 2016 in-depth analysis by The Wall Street Journal, have speculated about his income and asset base. All sorts of claims and counter-claims have been made about his wealth – by Trump himself, pitching his fortune at some $9bn, and by journalist Timothy O'Brien, suggesting that it is as “low” as $150m-$250m. It is doubtful whether we shall ever know the truth, but we can use Trump’s UK corporate filings to gain an insight into his businesses in Scotland.
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