Motorpoint (MOTR LN) - Recovery underway

Motorpoint’s Q4 trading update highlighted improving trading conditions for the Group and consistent profitability in the quarter. Consumer demand has strengthened, vehicle supply has improved, and margins are recovering. A loss before tax is still expected for FY24, but we marginally reduce forecast losses from £8.7m to £8.2m. Our previously negative view on Motorpoint was primarily based on a structural vehicle supply shortage in its target market. Now that UK new car sales are recovering, fee

Motorpoint Group+ (MOTR, House Stock, 134p) - A materially improved Q4 FY24F

Motorpoint (MOTR LN) - Used car values drive FY24 profits lower, FY25 expectations maintained

Motorpoint’s Q3 trading update warned that rapid decreases in used car prices in the three months to December 2023 are expected to have a significant impact on profitability.

Motorpoint Group+ (MOTR, House Stock, 98p) - Short term headwinds remain - retained confidence in the future

Motorpoint (MOTR LN) - Interim results

Motorpoint’s interim results (to 30 Sep) show the impact of low used car supply, demand headwinds, and higher interest rates that lead to an adjusted loss before tax of £3.7m (H1 2023: £3.0m profit). The Group’s previously announced cost cutting measures and efficiency improvements are starting to show a positive impact, with adjusted loss before tax narrowing quarter on quarter. It is encouraging to see a stabilising net cash position also. We think Motorpoint’s recovery is in its early stages

Motorpoint Group+ (MOTR, House Stock, 77p) - Emerging light at the end of the tunnel

Motorpoint Group+ (MOTR, House Stock, 87p) - A right-sized business– forecasts retained

Motorpoint Group+ (MOTR, House Stock, 100p) - Doing the right things in a challenging market

Motorpoint (MOTR LN) - Tough FY23, new store rollouts paused

Motorpoint’s FY23 results show challenging trading conditions from limited nearly-new vehicle availability, higher interest rates, and rapidly falling electric vehicle values in its final quarter. Adjusted PBT (ex. SBP) decreased from £21.6m in FY22 to a loss of £0.2m in FY23 (Zeus: £0.0m). With further interest rate rises expected and tough macroeconomic conditions ahead, Motorpoint is pausing its rollout of new stores and focusing on cash preservation and improving profitability. As a result,

Motorpoint Group+ (MOTR, House Stock at 125p) - Riding out challenging conditions

Growth Companies - Share & share alike Sell in May?

Zeus: Automotive Retail sector analysis - April 2023

This report provides an updated view on the key themes facing the motor retail sector in 2023. On page 4 we discuss the conclusions of our July 2022 research and compare them to what happened in H2 2022. It is clear that many of the same themes (supply shortages, high inflation, sector consolidation, etc.) still apply – here we discuss how these themes have evolved.

SHORE CAPITAL - Motorpoint Group+ (MOTR) - House Stock at 131p

Motorpoint (MOTR LN) - Further downgrades to forecasts

Motorpoint released a Q3 trading update (Oct-Dec22) last week, mentioning a return to year-on-year volume growth in December but further reductions in profitability. Driven by weaker gross margin, we cut our underlying PBT forecasts from £6.7m to break even in FY23 and from £7.1m to £0.4m in FY24. The share price was broadly flat after the trading update on Friday, suggesting that this was priced in and investors expect a recovery. However, we see strong competition and headwinds to profitabilit

Topps Group (TPT LN) - Initiation: Market leader trading at cyclical lows

Topps Group is the UK’s largest specialist supplier and distributor of tiles and associated products to the UK’s domestic and commercial markets. Each of the last three years the Group has successfully achieved record revenue in a market that’s seen recent volume declines and regional peers enter administration. Following the right sizing of its business, Topps Group is now well positioned to capitalise on the economic recovery and continue taking share from competitors, supported by its global

Pinewood Technologies (PINE LN) - Driving growth in automotive software

Pinewood’s transition to a pure-play automotive SaaS business is now largely complete. Today we introduce summary forecasts out to FY26 and reiterate the investment case. We see significant opportunity for Pinewood to grow its user base in the UK and internationally whilst generating high EBITDA margins and cash conversion. With a 24.5p special dividend embedded in the current price (payable Q1/Q2), the effective price today is 12.3p. Based on the Group’s FY27 target of £27m EBITDA, we estimate

LIBERUM: The Liberum Leisure Digest: NLW increase - pricing power is key

Hybridan Small Cap Feast - 17 April 24

17th April 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: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

HeiQ - Acquisition, placing and trading update

HeiQ has announced the acquisition of a site in Portugal where the company intends to build a HeiQ AeoniQ production facility with a 3,000 tonne per year capacity. To support the acquisition, the company intends to raise c£2.44m via an equity placing, supported by the issue of a c£1.7m (€1.97m) convertible loan note (largely to management) that will convert upon completion of the raise. We see this as an important step in the development programme for HeiQ AeoniQ. Additionally, HeiQ has provided

Borussia Dortmund - Helping itself

Borussia Dortmund’s progress to the semi-final of the Champions League brings a further upgrade to profit guidance for FY24. In addition to helping the financial results of the current year, the relative success of German teams against those of other nations in European competitions this season may ensure the club qualifies for the Champions League next season despite currently being outside the top four of the Bundesliga.

Zeus Top Picks for 2024 - 2023 review and outlook for 2024

On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div

PROGRESSIVE: Vertu Motors: Traction control

Vertu is the fourth largest automotive retailer in the UK, with 188 sales outlets and a track record of cross-cycle growth, principally through businesses it has acquired, funded by equity, debt and most importantly cash generation. Vertu operates across the entire vehicle lifecycle, including new and used vehicle sales, and vehicle servicing, repair and parts. Service and repair is a 40+% gross margin repeating business. With economic headwinds, the transition to electric vehicles, recent overs

Brighton Pier Group - Interim Results

Bright Pier Group’s (BPG) H1 results reflect the highly challenging operating environment, with revenue -9% YoY to £16.2m and Adj EBITDA of £1.4m (H1/22A £3.0m). This decline was driven by weaker consumer demand (falling disposable incomes and low consumer confidence), train strikes and poor weather. Trading in H2 has remained relatively subdued, and as such, we lower our FY23E Adj EBITDA forecasts to £4.2m (from £5.5m). Whilst disappointing, we note that the group remains cash generative and co

AKA: Initiating Coverage of a.k.a. Brands with Buy and $14 PT: Upside Ahead

We are initiating coverage of a.k.a. Brands Holding Corp. ("a.k.a. Brands" or the "company"), a leading owner of primarily online apparel-based brands focused on Generation Z and Millennial consumers, with a Buy rating and $14.00 price target, or 10.9X our 2025 EBITDA projection of $20.2 million. The company's brands include: 1) Princess Polly, focusing on 15 to 25 year-old women; 2) Petal & Pup, which offers feminine styles for 25 to 34 year-old women; 3) Culture Kings, a street wear destinatio

Domino's Pizza - Growing the base

Domino’s Pizza Group’s (DOM’s) new CEO has set an ambitious long-term growth target, including an acceleration in its net store opening programme. With better alignment between the company and its franchisees, management believes DOM should be capable of generating improved profit growth, versus that achieved in recent years, and potential higher returns.

Initial Equity Trading Comments - 1 December 2023

Marks & Spencer+ (MKS, House Stock at 255p) - 7Y FS HSBC UK tie-up– another brick in the wall

HY results - strong growth continues

Pendragon (PDG LN) - Trading strength offsetting cost pressures

Pendragon’s H1 pre-close trading update shows a strong trading performance, with sales and gross profit growth more than offsetting underlying cost inflation and interest rate rises.