Zeus Industrials Round-up - 14 August 2024

In a volatile period for stock markets, the UK industrial sector has continued its steady improved performance. Manufacturing PMI data reached a two-year high of 52.1 in July with optimism reaching the second-highest level in the survey this year. Inflation remained at 2.0% in June which, coupled with promising labour market data, led the MPC to reduce the base rate by 25bps to 5.0%. Although challenges such as supply chain disruption and economic volatility still remain, the sector’s improving

Solid State - Record FY24; medium-term targets retained

Solid State is developing from a component manufacturer into a value-added electronics partner offering engineered solutions. Management expects this to drive additional growth and margin expansion, particularly in target markets, such as healthcare and defence, underpinning management’s objective for a c 20% CAGR in shareholder returns to 2030.

Hybridan Small Cap Feast 8 July 2024

8th July 2024 @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

Solid State - Full year results in-line following exceptional year in Systems

Solid State is a specialist value added component supplier and design-in manufacturer of computing, power and communications products. This morning, the group has announced full year results for the year ended 31 March 2024, illustrating a stellar year for the group, with Revenue and PBT increasing 29% and 44% respectively on the back of an exceptional year for the Systems division. Revenue in the Systems division increased more than 80% YoY, benefiting from particularly strong demand in Defence

Morning Note – 8 July 2024

Solid State - Record FY24 result: FY25E in-line with expectations

FY24 results show a record year and performance, with profits upgraded twice in the year. The results were slightly ahead of our adj PBT expectations, with net debt lower than expected. The Systems division posted a fantastic result boosted by the delivery of the large contract just prior to the year-end, and therefore FY24 should be seen as a super normal year. The Components division experienced softer trading but remained profitable. The outlook points to FY25 being on track to meet our exist

Solid State - Capital Markets event shines light on strong prospects and diversification

Solid State is a specialist value added component supplier and design-in manufacturer of computing, power and communications products. Yesterday, the group held a Capital Markets event, providing a deeper dive into its Components and Systems divisions, reinforcing our view that this remains a high-quality business with excellent growth prospects. Following both organic investment and a number of successful acquisitions over the past few years, the group presented its recently rebranded Component

Morning Note – 23 May 2024

Hybridan Small Cap Feast - 07 May 2024

7th May 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: Change of Market: Dual Listing: Our daily digest of news from UK Small Caps If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Hyb

Morning Note – 7 May 2024

Solid State - Anticipating record adjusted PBT in FY24

Solid State’s trading update affirms the sustained strength in demand throughout H224, resulting in record FY24 revenue and adjusted PBT ahead of prior consensus of £155m and £12.5m, respectively. This is attributable to the earlier-than-expected delivery of a NATO contract. As a result, consensus FY24 revenue and adjusted PBT estimates have been raised by c 6% and c 20%, with respective FY25 estimates declining commensurately.

Solid State (SOLI) - Strong run in to year-end with Systems sales ahead of expectations

Solid State is a specialist value added component supplier and design-in manufacturer of computing, power and communications products. This morning, the group has provided a trading update for the year ended 31 March 2024, reporting the earlier than expected delivery of specific contracts within its Systems division and resulting in the group's FY 2024E revenue and PBT outturn anticipated ahead of our forecasts, with a commensurate decrease in our FY 2025E estimates. The delivery of these contr

Morning Note – 27 March 2024

Solid State - Early delivery of order boosts FY24 EPS by 18% to new record

The group’s year-end update flags trading ahead of expectations, achieved by strong growth in its Systems division, with the earlier than expected delivery of a NATO contract just prior to the year-end that pulls forward profit into FY24 making it a record year. Components continue to see a normalisation of orders and slower demand as previously flagged. Order cover is strong and further opportunities in the defence/security sector are leading to investment in Integrated Systems capabilities. Re

Solid State - Robust platform for growth trading at a 25%+ discount to peers

Solid State (SOLI) is a specialist, value-added component supplier and design-in manufacturer of computing, power and communications products. We believe that the business is well placed to continue to deliver over the next few years, driven by underlying growth across a number of its core markets, alongside a successful bolt-on acquisition strategy. Interim results in December were positive, continuing an impressive run of form over the last few years. With Custom Power, SOLI's largest acquisit

Portmeirion + (PMP, House Stock at 234p) - New CFO to be appointed

Hybridan Small Cap Feast - 22 May 24

22nd May 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: ITF announced: 7th May: Time To ACT plc, an engineering business focused on technology for the energy transition sector, has announced its intention to seek Admission to t

Finding the Next Takeout in Canadian Small-Caps - Part Three

What you need to know: • Since our last note in May, there have been 10 additional takeouts in Canadian small-caps, most of which coming in a significant premiums. • The new acquisitions largely fit within the framework outlined in previous reports. • Our potential takeouts portfolio is up 43% since inception (November 2023) and 17% since our last note, compared to the TSX up 18% and 3% respectively. We review the biggest winners and losers in the portfolio and present a list of new ideas on ou

Morning Note – 24 July 2024

Games Workshop Group - Another record year in FY24

Games Workshop Group (GAW) enjoyed a signature record year in FY24 with the launch of the 10th edition of its largest intellectual property (IP), Warhammer 40K, and strong growth in licensing income. Looking to FY25, management has an ambitious plan for growth. However, it also highlights the challenge of generating year-on-year growth given: 1) 40K is larger than Age of Sigmar (AoS), the fourth edition of which has been launched, and 2) the tough comparative for licensing income, which has a hi

Hybridan Small Cap Feast 12 June 2024

12th June 2024 @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 objecti

Q3 23: EV wavers

VW’s Q3 23 results hardly breaking news following the group’s preliminary results and profit warning. The management did however confirm what we had heard in the statements from the peers i.e. that demand for BEV is going through a weak phase. Also, the Brand Group Core’s margin profile remained disappointing, while VW confirmed that the implementation of the €10bn cost-cutting plan is running behind schedule. Lastly, VW could reduce its sails for some time in China leaving its BEV offensive for

Q3-23: Sluggish BEV transition and a weakening VW performance sink Porsche SE

Consistent with the results of its main shareholding, Volkswagen, Porsche SE posted a meagre set of Q3-23 results marked by a 20% yoy decline in net profit to €3.8bn (vs. €4.8bn). The below-expectation Q3 results from Volkswagen have led Porsche SE to forecast a FY-23 net profit in the lower range of its €4.5-€6.5bn guidance. While the improvement in the group’s liquidity position has boosted net debt expectations, the outlook remains unfavourable for the HoldCo, as the BEV transition is set to

Gooch & Housego (GHH LN) - Plenty of opportunity but execution must improve

Gooch has issued a profit warning, cutting FY24E guidance at PBT by £1.5m or c.16% against Zeus’ estimate. Revenue recognition for certain customer projects has been delayed due to supplier and customer issues outside of the Group’s control. Many other things seem to be going well. The order book is higher, acquisition integration has continued apace, progress to reduce costs via outsourcing is being made, and net debt is lower. We cut our FY24E estimates in line with new guidance. Despite manag

PROGRESSIVE: Watkin Jones - Uncertain rates outlook delays transactions

Watkin Jones has issued a trading update, which, while highlighting strong medium-term opportunities in build-to-rent and student accommodation, concedes that market activity through the summer has been slower than anticipated, impacting transaction closures, largely due to uncertainty over the pace of interest rate cuts. The group has, therefore, reduced guidance for FY24E, but with significantly stronger than expected cashflow. However, the growing shortage of rental and student properties, in

Allenby Capital - Character Group - Update

The Character Group (Character) has released a year-end trading update affirming the exceptionally difficult market conditions to date but that as a result of a strong product portfolio, the second half has, as expected, resulted in a bounce-back leading to a significant improvement in profitability compared to H1. The Board’s view is that underlying profitability is expected to be in line with current market expectations. While not immune to the broader market difficulties, Character has the be

Allenby Capital - Character Group - Trading update

At its AGM scheduled for 11.00am today, the Group will state that the business continues to trade satisfactorily and financial results are expected to be in line with current market expectations. Although trading conditions in the current financial year to August 2024 remain challenging, the Group has a strong product offering which has been well received by the trade. Adverse trading conditions will at some stage revert to normality which we believe will allow strong historic growth to resume.

Portmeirion+ (PMP, House Stock at 210p) - H1 trading update - on track for FY24F

Morning Note – 10 May 2024

Gooch & Housego - Slight H2 24 sales delay results in EPS down 15.6%

The group signals a levelling out of the earlier destocking effects and a maintained outlook for FY25, with an increase in H2 output seen. However, some H2 supplier and customer delays results in some revenue slipping into FY25 with a cut to FY24E adj PBT of £1.5m, and a 15.6% EPS reduction. Good progress is being delivered to its strategic plan to raise margins to mid-teens levels and the integration of Artemis and GS Optics is going well. The reduction to FY24 expectations is a frustrating gli