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

PROGRESSIVE: Watkin Jones: Innovative JV deal reinforces project pipeline

Watkin Jones has announced the sale of a major purpose-built student accommodation (PBSA) development in East London to a newly created JV with Housing Growth Partnership (HGP), part of Lloyds Banking Group, in an innovative variant of its traditional forward-selling model. The deal, contributing towards our existing forecasts for FY24E, allows WJG to share in future value uplift on the development and, in our view, broadens the group’s options for funding future projects.

Hybridan Small Cap Feast - 21 May 24

21st 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

PROGRESSIVE: Watkin Jones: Guidance unchanged as investment rekindles

Watkin Jones has maintained its FY24E guidance following today’s results for the six months to 31 March, which showed operating profit more than doubling. The group continues to expect a heavy H2 weighting as it has focused on operational performance while the forward-funding market has remained largely on hold, pending further clarity on the direction of interest rates. Sentiment is now gradually improving, according to the group.

Hybridan Small Cap Feast - 23 April 2024

23rd 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: Bidstack Group (BIDS.L) has left the AIM market 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

PROGRESSIVE: Watkin Jones: H1 in-line amid reviving investor appetite

Watkin Jones’s guidance for FY24E is unchanged in its trading update for the first half to 31 March. We maintain our forecasts for the full year and introduce half-year estimates, in line with reiterated guidance that performance will be significantly H2 weighted. The group confirms a continuing gradual recovery in appetite among institutional investors to forward fund its build-to-rent (BTR) and student developments. We believe this should gather pace as the direction of interest rates becomes

PROGRESSIVE: Watkin Jones: FY results in-line, guidance maintained

Watkin Jones’s FY23 results, to 30 September, were closely aligned with guidance in its October trading update, with adjusted loss before tax slightly lower than our estimate and net cash higher. Booming demand continues to push up rents and the forward-funding market is ‘showing early signs of recovery’. The group is maintaining its guidance for FY24E and is seeking to diversify revenue and boost performance in its core markets.

Hybridan Small Cap Feast - 11 Oct 23

11th October 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 obje

PROGRESSIVE: Watkin Jones: FY23E outlook dips slightly; FY24E unchanged

Watkin Jones’s FY23E year-end trading update is broadly in line with our expectations, albeit with slightly higher costs than previously signalled but significantly better net cash and no change to the remedial works provision. Encouragingly, guidance for FY24E is unchanged, with progress in forward sales of student and private assets to institutional investors. Data from both student and private rental markets continues to show huge under-supply.

Hybridan Small Cap Feast: 19/07/2023

Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** 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. Expected Admission 21 July 2023. Blackpoint Biotech plc, a medical cannabinoids company established to fulfil gaps in the medical

PROGRESSIVE: Watkin Jones: Transaction risks cloud current outlook

Watkin Jones has issued new guidance for FY23E, recognising ‘a greater degree of risk’ regarding anticipated forward-funding transactions completing by the 30 September year-end, with lower profitability also expected for FY24E, while it has identified other impairments and charges. We have downgraded our estimates accordingly. Also, CEO Richard Simpson has stepped down and CIO Alex Pease has taken the role on an interim basis.

PROGRESSIVE: Watkin Jones: Investment appetite returns but rephased

Watkin Jones highlights a continued recovery in the institutional funding market in today’s interim results, which were in line with its expectations of a significant H2 weighting for FY23E. This, and attractive new land opportunities, should support its long-run target margins. However, the group has exercised caution in recognising profits on long-term contracts, leading us to cut adjusted PBT by £25m for FY23E, while leaving FY24E unchanged. Longer term, we believe the clamour for rental acco

PROGRESSIVE: Watkin Jones - Half-year update highlights investment revival

In today’s half-year trading update, residential-for-rent developer and manager Watkin Jones highlights revived activity among its institutional investors following a hiatus last year in the wake of the mini-budget. As previously guided, the group expects a strong second-half weighting as the investment pipeline rebuilds. We continue to believe that WJG uniquely addresses the growing need for new rental homes.

PROGRESSIVE: Watkin Jones: Half-year update highlights investment revival

In today’s half-year trading update, residential-for-rent developer and manager Watkin Jones highlights revived activity among its institutional investors following a hiatus last year in the wake of the mini-budget. As previously guided, the group expects a strong second-half weighting as the investment pipeline rebuilds. We continue to believe that WJG uniquely addresses the growing need for new rental homes.

PROGRESSIVE: Watkin Jones: Rising rents attract investors back to market

Residential-for-rent developer and manager Watkin Jones on 25 January delivered FY22 results that were broadly in line with our expectations. Continuing strong demand for its core rental developments, as highlighted in October, was hampered by delays in investment decisions following the mini-budget. We believe recovery has begun, albeit on a slightly shallower trajectory, and current market conditions may offer the group opportunities. Surveys show continuing rental growth, attracting back inve

Telematics and fleet management: Microlise vs. Quartix Technologies

The UK AIM market has three quoted commercial vehicle tracking businesses: Microlise Group (SAAS), Quartix Technologies (QTX); and Trakm8 Holdings (TRAK). This note focusses on the larger two, Microlise and Quartix, initiating research coverage on each and comparing respective business models, strategy, growth opportunities and valuation. Whilst the businesses generally target different parts of the market, our conclusion is that Quartix offers better near-term value, cash returns and ROCE, whil

Morning Note – 30 September 2024

Morning Note – 3 October 2024

Spectra Systems (SPSY LN) - Momentum continuing to build

Following on from the major new contract announcement from SPSY eight weeks ago, this morning’s results show more than half the forecast FY24 profits already achieved in H1 and confirmation of ongoing momentum including new polymer opportunities. SPSY is an established world leader in providing security technology that includes software and advanced materials for use in banknotes, product authentication, security printing and gaming. The 96% YoY lift to revenues in part reflects the impact of th

Allenby Capital TMT Update - 30.09.24 - MWE.L, CHSS.L, MIRI.L, ENET.L, ELEG.L, MBT.L, PPS.L, ITIM.L

Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.

Allenby Capital - Character Group - Update

Character Group has traded encouragingly in the year ended August 2024, in spite of challenging market conditions. We upgraded our expectations for the year following a strong first half and in today’s update the Board confirmed that it expected to meet the revised market forecasts. The Group has a strong product portfolio and the balance sheet remains financially flexible with a healthy cash balance even after expending £2m on share buybacks in FY24. Full year results are expected in December a

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

Zeus Industrials Round-Up - 13 September 2024

The UK industrial sector continues to show promising signs of recovery, with manufacturing PMI reaching a 26-month high of 52.5 in August as all survey indicators but one expanded. Economic data has also been encouraging, with UK pay growth cooling to a two-year low and inflation rising only slightly in July – supporting the case for further interest rate cuts this year by the BoE.

Surface Transforms (SCE LN) - Forecasts suspended

We note Surface Transforms’ interim report and outlook statement published today. We suspend our estimates pending discussions with management.

Solid State (SOLI LN) - Accretive components acquisition

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 the acquisition of Gateway Electronic Components, a UK-based manufacturer and distributor of ferrite and magnetic components, for initial consideration of £1.4m. With the acquisition bringing Gateway’s complementary portfolio of own-brand and franchised components onto SOLI’s existing distribution platform, and the acquisitio

Making good progress, FY24e PBT unchanged

1H results show a strong rebound in profitability with adj.EBITDA increasing 11% to £7.4m (12.2% margin, up from 9.8%) and adj. PBT +64% to $4.1m. As expected, sales dropped 11% to $60.5m. Results reflect the impact of OEM inventory normalisation on the top-line and management action supporting profitability. FY24 PBT is guided to be in line with market expectations. Looking into FY25e, contracts awards YTD and a strong request for quote pipeline give confidence in our numbers. A trebling of the

Allenby Capital TMT Update - 09.09.24 - ENSI.L, CPX.L, TERN.L, CHSS.L, ELEG.L, CNC.L

Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.

Morning Note – 29 August 2024

THE MONTHLY January 2020

The Office for National Statistics (ONS) is due to publish its most up-to-date survey on share ownership in mid-January, which identifies the beneficial owners and decision- makers of the stock market. Hardman & Co has worked together with the share analysis service, Argus Vickers, to jointly produce its own survey, which anticipates the conclusions of the ONS survey but goes into much greater detail. Our work does not use a sample of 200 quoted companies as the ONS historically has, but rather

Allenby Capital TMT Update - 27.07.20 - MBO.L, MNO.L, GETB.L, SOLI.L

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)