Morning Note – 4 April 2024

Morning Note – 3 April 2024

Morning Note – 24 January 2024

Cenkos: Lords Group Trading Plc -- H1 results, softer H2 forecast

Lords Group Trading has released results for H1/23 which show continued growth in revenue and profit. However, the company notes a slowing of activity at the end of Q2/23 and expects this to persist during the second half of the year. We are lowering our FY23E adjusted EBITDA forecast by 14.8% and for FY24E by 16.9%. We believe that the shares are undervalued notwithstanding this forecast downgrade, and we maintain a BUY recommendation. In this report we provide a brief summary of some of the dr

Cenkos: Lords Group Trading Plc -- Strong growth intact

Lords Group Trading is on track for another year of robust performance despite challenges which are impacting some of the listed peers. In addition to exhibiting impressive resilience, we believe Lords is positioned for reaccelerated growth. We examine the growth drivers and maintain our BUY rating with 116p fair value.

Cenkos: Lords Group Trading Plc - Strong FY22 results

Lords Group Trading has released FY22A results which are ahead of our previous forecasts, these forecasts having already been raised on the company's positive trading update on 25 January 2022. The growth in revenue, profit, and profit margin is particularly encouraging against what was a challenging 2022 macro environment for the industry. Lords remains on track to achieve its targets of £500m of revenue in 2024 and 7.5% EBITDA margin in the medium term. We maintain a 114p fair value and BUY ra

Cenkos: Lords Group Trading Plc -- Delivering on all fronts

Today's pre-close update highlights another period of impressive growth, with the group confirming that trading is ahead of current market expectations for FY22E. We upgrade our revenue forecast by c3% to £450m and EBITDA by 6% to £28.3m. This is a strong operational performance from the group and underlines the execution of its growth strategy set out at the time of the IPO in 2021. On updated forecasts the shares are trading on a FY23E EV/EBITDA of 5.1x with a dividend yield of 2.8%. Given the

The Week that was: Stocks in focus this week are Lords Group, Personal Group, Brickability, The Pebble Group

Enclosed is our weekly round-up of news and updates from the professional services & construction sector.

Cenkos: Lords Group Trading Plc - Delivering the goods

Today's interims reveal record H1 revenue of £214.2m (+19.7%), with the Merchanting division delivering strong sales growth of 73.4% (+14.5% on a LFL basis). EBITDA increased 27.1% to £14.2m, with continued margin improvement (+40bps YoY to 6.6%). Cash conversion was strong, with cash from operations of £12.8m, and net debt at the end of the period was £21.1m. The dividend has been increased by 6.3% to 0.67p. Overall, a solid set of results and the unchanged FY outlook should provide reassurance

Renold - Strong end to FY24: EPS up 11%. Robust FY25: EPS up 27.6%

The FY24 year-end update is very upbeat signalling trading being materially ahead of expectations, with a better-than-expected profit out turn and stronger cash generation. It continues to strengthen margins through efficiencies and investment in modern equipment. The order book remains close to record levels providing a robust view of future forecasts. In FY24E we upgrade EPS by 11% and in FY25E a significant upgrade of 27.6%. It looks capable of declaring a dividend in FY25 as well as manageme

Morning Note – 16 April 2024

Billington Holdings - Record result boosts dividend; forecasts upgraded

FY23 results show very strong growth over FY22, driven by strong Structural Steel activity, with results slightly ahead of upgraded profit expectations, while stronger than expected cash flow resulted in an unexpectedly generous dividend of 33p (offering a FY23 yield of 7.0%). The group now has net cash of £22.1m and is debt free and is therefore in a strong position for potential M&A activity. Following the recent £90m of new orders to increase the order book to record levels we conservatively

Q1 Operating Results

Another Good Year of Diversified Growth with More to Come in 2024 CCapital have released their Q1 operating results. Overall, revenue has come in slightly lower than expected at $80.2m vs TamE of $85.9m but is largely tracking in line with our FY24 annual estimate and we note the company has maintained guidance. Drilling revenue for this quarter was impacted by a fall in utilisaztion rates as well as general remobilisation geographically but we expect a strong recovery throughout the year as k

Plant Health Care - China distribution with AMVAC

Plant Health Care announced it has signed a distribution agreement with AMVAC, an American Vanguard Company, to support commercialisation of novel fertiliser products incorporating Plant Health Care's Harpinαβ in China starting in 2024. The novel product combines Harpinαβ technology with an AMVAC fertiliser and is expected to help growers improve crop quality and yield as part of an integrated and environmentally responsible crop production programme. AMVAC continues to evaluate Plant Health Car

Morning Note – 15 April 2024

Severfield - Multiple positives should excite investors

Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appear

discoverIE - Back to organic growth

discoverIE’s March year-end update confirms a strong operational performance in challenging markets. Following two years when sales increased by +48%, FY 2024 Group sales were +1% ahead of 2023 at CER (reported -3%) driven by a +2% contribution from acquisitions and organic -1%. As expected, organic growth returned in the later part of the year (Q4 +2%, +11% sequentially) and the order book has reverted to normalised levels of c.4.5 months’ sales, which – combined with a continuing strong pipeli

Warns on brine supply costs

SP Angel . Morning View . Copper prices hold higher as China processing fees fall below $0/t amid low feedstock availability

PROGRESSIVE: Severfield: Targeted acquisition strategy aids growth path

Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.

LIBERUM: Severfield: Erratum: Better EPS and cashflow, and buyback

Invinity Energy Systems - Update on Strategic Investment

Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.

PROGRESSIVE: Severfield: Step change in European and Indian outlook

Severfield’s full-year results to March will be ‘slightly above’ the Board’s expectations, according to today’s trading update, with net debt significantly better. We maintain our PBT estimates for both forecast years, which are ahead of consensus, but reduce our net debt for FY24E. Record orders were boosted by the steel specialist’s European operations, after last year’s Voortman acquisition, while the Indian JV has seen ‘another step up in profitability’. The group has also launched its first

Clean and competitive fertiliser