Hybridan Small Cap Feast 10/08/2023

Dish of the day Joiners: No joiners today. Leavers: National Milk Records plc (AQSE: NMRP) has left the AQSE Growth Market. What’s cooking in the IPO kitchen?** Announced ITF 4 August: Tan Delta Systems plc, a Sheffield based Company intends to IPO on AIM. Tan Delta has developed an innovative and differentiated monitoring solution based on real time oil analysis and analytics that offers equipment operators enhanced insight into the maintenance status of their equipment and thus the ability to

Marks Electrical Group - AGM trading update: fast start to the year

The good start to the year continued into June and July, and Marks Electrical has enjoyed impressive sales growth of 30.7% over the first four months of FY24 as it continued to gain market share in the MDA and consumer electronics markets. Sales growth to date is significantly ahead of our FY24 sales forecast of +17.5% but our forecasts are H2-weighted, and the comparator will become tougher as the year progresses (last year’s AGM statement reported revenue growth of 13.7% before Marks went on t

Sales growth exceeds 30% so far in FY2024

Marks Electrical Group (MRK) released a trading update ahead of its AGM. The company enjoyed strong trading in the first four months of its FY2024 financial year as enhanced delivery options, sustained high service quality levels and more widespread brand awareness helped the company to over 30% sales revenue growth in the period, compared with nearly 14% a year earlier. With further benefits of strong cash conversion – consistent with a proposed 0.66p final FY2023 dividend – we reiterate our fa

Exceptionally strong trading update

Hybridan Small Cap Feast - 14 Jun 23

14th June 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 objecti

Built-in installations enhance growth outlook

Marks Electrical's preliminary FY2023 results confirmed the 21.5% sales growth and £7.5m EBITDA announced in the April trading update. The company generated £7.1m of free cash flow in FY2023, compared with £5.7m a year earlier, to end the year with a £10.0m positive net cash balance. Moreover, sales gains were 30% in the first two months of the current financial year. An upgraded built-in installations programme represents an important addition to MRK's service offering, and raised awareness le

Excellent FY23 performance, with an exceptional start to FY24

Sales advance by 21.5% to £97.8m in FY2023

A better than-expected 21.5% increase in sales revenue to £97.8m, higher EBITDA margins and strong cash conversion were the key features of today’s Marks Electrical Group (MRK) FY2023 trading update. In addition, a positive start to April augurs well for FY2024, a year in which we expect to see further market share gains and expansion of the product and service offering. The central investment case for the shares remains firmly in place, in our view. The company is well invested to meet demand

FY trading update ahead of expectations

Shopping Trolley - finnCap Consumer quarterly sector note

Better than expected to date: The January trading update season has been better than expected, with the ratio of upgrades to downgrades running at 26:16 out of the 101 trading updates that we have analysed. It’s a surprisingly positive start to the New Year which reflects (1) realistic expectations captured in consensus forecasts, (2) consumers’ determination to enjoy Christmas and protect important areas of personal expenditure and (3) a reduction in supply as competitors exit.

Revenue growth accelerates to 33.4% in Q3

Rapid 33.4% revenue growth, margin expansion relative to the first half, and a record level of delivery volumes were the main features of Marks Electrical’s FY2023 Q3 trading update. Furthermore, the strength of Q3 business lends significant credibility to the company’s view that it is on track to achieve its full year targets. Based on a combination of relative valuation and DCF, we reiterate our long-held fair value of 150p for the shares.

Marks Electrical - Delivering… (10 for 23 extract)

Marks Electrical is a fast-growing, technology-driven, online electrical retailer. Its key Unique Selling Point (USP) is to be competitive on headline price and then offer next day delivery for no extra charge. If a customer orders by 6pm, they will receive next day delivery. No other company matches this customer proposition. Marks also delivers when it comes to financial metrics: it scores top marks in our bespoke DTC investment screen. It also generates substantial economic profits, with retu

Hybridan Small Cap Feast - 11 Sep 23

11th September 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 ob

Cornerstone FS+ (CSFS, House Stock at 12.5p) - Disposal of another non-trading subsidiary

Hybridan Small Cap Feast - 19 Sep 23

19th September 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 ob

LIBERUM: Ten Entertainment Group: LFL +4.7% YTD, strong cost control

SP Angel Technology: Cornerstone FS (CSFS.LN) - H1 2023 Strong Performance YTD

CSFS reported its financial results for the period ended 30 June 2023 with revenue of £3.6m and Adj. EBITDA of £0.2m, and profit before tax of £0.023m, in line with the trading update provided in May 2023, but well ahead of what our full year forecasts would indicate.

Hybridan Small Cap Feast 15-09-2023

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Announced ITF 12 July: Substrate Artificial Intelligence, an artificial intelligence company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health, intends to join the Access Segment of the AQSE Growth Market. Admission delayed. Announced ITF 6 July: Blackpoint Biotech plc, a medical cannabinoids co

Pendragon (PDG LN) - High potential in Pinewood

Earlier in the week Pendragon announced a proposed deal to dispose of its UK motor retail and leasing businesses to Lithia Motors for £250m, after which it will become a standalone, listed SaaS business with its Pinewood dealership management software (DMS) product. On the day, we set out a high level view of the transaction and the growth and valuation implications. This note dives further into these topics, in particular the potential for the deal to significantly accelerate the growth in Pine

SSP Group+ (SSPG, House Stock at 244p) - FY23F pre-close preview

LIBERUM: City Pub Group: Strong trading and robust balance sheet

Despite decent sales performance, profit warning spooks investors!

Kingfisher’s H1 FY23/24 lfl sales was 40bp ahead of market expectations but the PBT was 5.4% weaker. Although UK&I sales remained in the black, the performances in France and Poland were the pain-points. The Q3 lfl performance (to date) of -2.4% yoy is also below market expectations. We expect the pressure on earnings to continue during H2. Management has lowered FY23/24 PBT guidance to £590m (vs £634m earlier). We will reduce the target price by 7-8% but maintain our positive recommendation.

B90 Holdings (B90 LN) - Initiation: All in on B90

B90 operates online gaming sites and manages sites and services that provide leads and customers to other online gaming operators. The company adapts this hybrid strategy for mature and emerging markets to optimise costs and returns. The company is led by a proven management team and is sourcing accretive acquisitions to consolidate the fragmented online gaming sector. Our DCF analysis points to a valuation of 8.8p per share, indicating c. 53% potential upside.

Pendragon (PDG LN) - Proposed disposal and transition

Pendragon has announced a proposed deal to dispose of its motor retail and leasing businesses to Lithia Motors for £250m, after which it will become a standalone, listed SaaS business with its Pinewood dealership management software (DMS) product. The aggregate equivalent value for shareholders, including the retained stake in the continuing business, was 27.4p per share on announcement, close to our 28.3p per share SOTP estimate from 17 January. Going forward, we think the disposal could focus

SSP Group+ (SSPG, House Stock at 245p) - Building momentum despite FX headwinds

Cenkos: Consumer Q1/23

Key Observations Despite a second successive decline in CPI during the quarter, inflation remained at one of the highest levels in 40 years (10.5% in December) contributing to a winter of discontent, with each day in December facing some form of industrial action. The industrial action materially impacted the consumer sector and provided an insight into the simmering frustration around the decline in real wages of the UK population. There were multiple examples of consumer corporate failures d

Cenkos: Consumer Q3/22 Review

Third Quarter Key Observations  Escalating inflation continued to cut further into consumers' discretionary income, impacting demand across the consumer sector. The systemic rise in input costs significantly impacted companies' bottom lines, testing the resilience of even the strongest in the sector, as businesses balanced the long-term need to maintain relevance to their customer base (in terms of pricing & quality) whilst also seeking to navigate immediate economic challenges. The Gf