Judges Scientific+ (JDG, House Stock at 11,600p) - FY23A - solid organic order book

Christie Group + (CTG, House Stock at 85p) - Reassuring FY23F trading update

Sainsbury (J)+ (SBRY, House Stock, 276p) - Strategy Update Day - Positioning for a higher next level

Wynnstay Group+ (WYN, House Stock, 325p) - FY23A a perfect storm - FY24F recovery

Higher expectations for the full year

Next has raised its expectations for FY23/24 on the back of additional full price sales during the first half. The group believes the better trading performance to have been mainly driven by the exceptionally warm weather in May and June, and salary increases in an inflationary environment. However, the group expects those positive effects to diminish over time owing to ongoing inflation, and the guidance for H2 23/24 remains unchanged.

Year-end trading ahead of expectation

Thanks to the better-than-expected trading performance during the Christmas period, Next reported an encouraging trading update for Q4 22/23. The group remain cautious for the year ahead. Next expects full-price sales to decrease 1.5% and profit before tax to be £795m, implying a contraction of 7.6% versus the FY22/23.

Better Q2, unchanged outlook

The warmer weather and return to social events has boosted the demand for summer clothing. Next has slightly raised its FY22 guidance for both top-line growth and profitability on the back of better-than-expected full-prices sales in Q2 22. The group still expects an inflation impact on consumer spending to worsen in the second half.

FY22 guidance downgrade

Next published good FY21/22 figures, exactly in line with the updated guidance (6 January) and consensus. However, the group cut its guidance for FY22/23 (February 2022-January 2023) due to the suspension of activity in Ukraine and Russia and the inflationary environment. We believe the limited guidance downgrade is a wake-up call to the non-food retail sector; the uncertain consequences of the Russian-Ukraine conflict will not be limited to the losses from the temporary suspension of their ac

Better qtd trading, softer outlook

Next raised its FY21/22 guidance on the back of the better-than-expected quarter to date trading performance. However, the uncertain post-pandemic trading environment (essentially good inflation, price hikes of NEXT’s products and the recovery in leisure activities…) has led the group to maintain a very cautious outlook for FY22/23.

Softer year-end growth

Next has experienced a satisfying Q3 21, as full-price sales came in slightly ahead of the group’s expectations and our estimates. However, the group expects that the inflation in essential goods and the ongoing industry-wide supply-chain challenges will drag down the pace of growth in Q4 21.

Strong recovery in demand for adult clothing

Next’s share jumped 9% on the back of the impressive Q2 21 performance. The encouraging improvement in retail sales as a result of gradually eased social restrictions in the UK alongside the continued strong momentum in online sales have led the group to finish the quarter with 18.6% sales growth vs. the same period in 2019 (vs. guidance of 3% previously). The better-than-expected trading performance has enabled the group to raise again its FY21 guidance and to declare a special dividend.

Online-first retailer

The British clothing retailer has just published its FY20 results (ended in January). Although both total revenue and pre-tax profit were slightly below consensus expectations, the accelerated shift in online business has led the group to upgrade (again) its outlook for FY2021. The group expects pre-tax profit to reach £700m for FY21, beating consensus and our expectations.

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

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

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

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.

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

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.

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

Vertu Motors (VTU LN) - Market dynamics drive downgrade

An ongoing correction in used car prices has driven lower gross profit per unit for Vertu in recent months and this is expected to continue in the near term. There has been particular weakness in premium vehicle values. Additionally, higher stocking charges on increased new vehicle supply, has led to lower overall profitability. As a result, we have reduced forecast FY24 adjusted PBT by £8.0m (17%) to £39.3m and FY25 by £3.2m (6.2%) to £48.6m. This downgrade to expectations is indicative of mark

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