Zeus Building Products and Construction Round-Up - 7 August 2024

Collectively, the Building Products and Construction sectors had a strong performance over July, no doubt supported by positive statements made from the newly appointed Labour government, continued expansion in Construction PMI and the highly anticipated 25bp interest rate cut.

Zeus Building Products and Construction Round-Up - 2 July 2024

As we close off the first half of 2024, economic data has provided mixed signals with signs of improvements, albeit from a low base. GDP grew 0.7% in Q1 (QoQ), however, a timelier monthly estimate for April indicated no growth due to a rise in Services being offset by a fall in Production and Construction. This slightly contradicts what Construction PMI is reporting however, which saw activity rise at fastest pace in 2 years, with the index at 54.7 (April: 53.0). Residential projects grew only m

Likewise Group - AGM update reflects continued growth momentum

Likewise is a fast-growing distributor of residential and commercial floor coverings in the UK. This morning, the group has provided an AGM update for the period to 18 June 2024, reporting an increase in gross sales revenue of 8.5% YoY, with a particularly strong performance from the group's Likewise Branded businesses. In the context of a challenging wider market backdrop for domestic flooring, this growth in revenue illustrates LIKE's success in taking market share from the more established p

Likewise (LIKE LN) - AGM trading statement

Likewise has issued a brief trading statement ahead of its AGM tomorrow that yet again highlights positive sales momentum despite challenging market conditions, suggesting the Group is continuing to take market share. Zeus forecasts are unchanged today, but the statement increases confidence in our full year estimates. The Group continues to invest, including significantly expanding the sales function, to create a larger, more profitable business in the medium-term. We believe Likewise shares ar

Zeus Building Products and Construction Round-Up - 5 June 2024

The positive momentum in macro data seen at the start of the year is beginning to wane as the economy increasingly looks for a catalyst to elicit any sustained improvement. Banks are continuing to lend more cautiously following the pre-emptive cuts in mortgage rates seen at the start of the year. January saw the typical 2-year fixed mortgage rate fall to just over 4.7%, however, recent weeks have seen this rise back to 5% as investors expect only one rate cut for 2024. This is starting to feed t

Hybridan Small Cap Feast - 20 May 24

20th 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: 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 trading on the Aquis Stock Exchange

Likewise - Full year results reflect continued growth trajectory; on track for FY24

Likewise is a fast-growing distributor of residential and commercial floor coverings in the UK. This morning, the group has reported full year results for the year ended 31 December 2023, which illustrate a year of further progress on its path towards building a distribution business of significant scale. Revenue increased 12.9% YoY to £139.5m, a strong outturn considering the current industry backdrop, and reflecting market share gains for the group. With the impact of higher utilisation of the

Likewise (LIKE LN) - FY23 results: taking share

Likewise has reported another year of progress materially outperforming the market, against a tough backdrop, as management continue to invest in the business and execute on its strategy. Revenue for the year was up 12.9% to £139.5m and adjusted operating profit increased c. 6% to £3.5m, both in line with Zeus forecasts. We believe current profitability understates the performance of the business as it continues to invest in capacity and logistics. Likewise has also seen continued strength into

Zeus Building Products and Construction Round-Up - 3 May 2024

Market sentiment turned more cautious in the month of April, particularly regarding interest rates, with economic data producing mixed results. Despite housing transactions and net mortgage approvals continuing an upward trend, with the latter at an 18-month high and +20.1% YoY and +1.4% MoM to 61.3k (seasonally adjusted), Nationwide’s House Price Index dropped 0.4% MoM (seasonally adjusted) in April, below the +0.2% expected. This comes as mortgage lenders nudge rates up to factor in the potent

Real Estate, Building Products & Merchants - Quarterly Valuation Summary and Performance – March 2024

Housing data is increasingly positive, albeit off a very low base: Last quarter we commented on the stability in house prices that appeared to be coming through in the early part of Q4.

Hybridan Small Cap Feast - 06 Mar 24

6th March 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

Likewise - Positive start to year; continuing to grow market share

Likewise is a fast-growing distributor of residential and commercial floor coverings in the UK. This morning, the group has provided an update on trading for the first two months of its financial year, pointing to sales having increased by 11.5% to £22.8m, remaining on course to meet our FY 2024E expectations at this early stage in the year. Average daily sales increased by 6.5%, this reflecting two extra working days in the period, and with our full year expectations premised on revenue growth

Likewise (LIKE LN) - Sales ahead of prior year despite weak markets

Likewise has provided a trading update confirming a strong start to FY24 with revenue growth of 11.5% in the first two months, despite weak end markets. The fact that sales in January and February are well ahead of the prior year comparator give early signs of confidence for the full year, with the caveat that the early part of the year is not generally a strong seasonal sales period. Zeus forecasts are unchanged, which may prove to be conservative given the performance year to date and the curr

Renewi - Trading supports unchanged full-year guidance

Renewi has made a solid start to the year with no change to guidance. It is clearly well placed in the growing circular economy and exiting the UK Municipal business provides a simpler investment proposition. We believe the key for the shares will be progress towards management’s medium-term financial targets, in particular at least 5% organic growth and operating margins of 8–10% (FY24: 6.2%).

PROGRESSIVE: SDI Group: Resilient FY24 and strategy refresh

SDI’s FY24 results, released this morning, confirm that while markets have experienced headwinds from inflationary pressures, and customer destocking issues linger, overall performance has been resilient. We note improving cash generation, with £3.8m of free cash flow in H2. Net debt was flat at £13.2m (FY23: £13.3m) after acquisition spend of £3.4m. Despite the unwinding of inflated Covid demand, SDI has made strategic and operational progress, with a strong team in place to support the next ph

PANMURE LIBERUM: Costain Group: Strong momentum

Water Intelligence Credit Expansion for Growth Plan

Water Intelligence has announced a refinancing and expansion of its credit facilities with its existing lender M&T Bank which provides additional non-dilutive funding to execute its strategic growth plan.

Drax Group - Ofgem Investigation Closed

Poor reporting relating to the newly acquired Pinnacle Renewable Energy during FY 22 has resulted in a £25m redress payment for Drax by Ofgem but the regulator has found no evidence that ROCs were issued incorrectly. More importantly, Drax is now compliant with the reporting requirements and will additionally add an external audit process on biomass profiling. We see this as drawing a line under historic issues and should give comfort that the company now has the process in place to comply with

LIBERUM: Eneraqua Technologies* - Initiation - Saving money... and the planet

PANMURE LIBERUM: Yü Group: Growth in revenue, meter points and smart meters

Hybridan Small Cap Feast 16/12/2021

Joiners DSW Capital plc (DSW.L) a profitable, fast growing, mid-market, challenger professional services network joins AIM. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income. Public Policy Holding Company (PPHC.L) leading bi-partisan, full-service US government affairs business joins AIM. Through its wholly-owned companies, PPHC operates a portfolio of independent firms that offer public affairs, crisis mana

Hybridan Small Cap Feast - 21 Feb 23

21 February 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 objec

Hybridan Small Cap Feast - 14 Jul 23

14th July 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

Judges Scientific (JDG LN) - Magsputter deal & Geotek contract

Judges Scientific is a group focused on acquiring and developing companies in the scientific instrument sector. Following Judges’ H1 business update back in July, it’s pleasing to see that Judges’ ability to execute outstanding and earnings enhancing deals is unhindered (Magsputter acquisition on 15/8). Further, an announcement today confirms Geotek has signed the anticipated coring contract that will be recognised in FY2025, providing a significant underpinning to the coming year. Back on the

New direct awards secured

Morning Note – 27 June 2024

Somero Enterprises - Interims: looking for a stronger H2, guidance unchanged

With FY24 guidance reiterated, we maintain our existing forecasts. Interims show the weaker trading experienced, as recently flagged at its pre-close update. Poor weather conditions in N. America and Australia have impacted performance, with other known issues such as concrete availability and elevated interest rates also affecting customer demand for new equipment. Management cost action should help mitigate the effect of revenue weakness. Somero remains a high-quality business with attractive

Secular Growth Trends

Morgan Sindall (LON:MGNS) operates in construction and regeneration, with activities in partnership housing, UK infrastructure, office fit out, and general construction. Morgan Sindall (LON:MGNS) operates through six divisions:  Construction & Infrastructure, Fit Out, Property Services, Partnership Housing, Urban Regeneration, and Investments.