SHORE CAPITAL - Initial Equity Trading Comments - 19 April 2022

Ford enters electric car race, Melrose sees good aerospace growth, Spectris reports lower LFL sales in North America & China

Melrose (MRO LN, £10.8bn) | Trifast (TRI LN, £201m) | Spectris (SXS LN, £3.0bn) | Elementis (ELM LN, £994m) | TT Electronics (TTG LN, £401m) | Renishaw (RSW LN, £2.8bn) | Oxford Instruments (OXIG LN, £904m) | Gooch & Housego (GHH LN, £295m) | Scapa (SCPA LN, £358m) | Trifast# (TRI LN, £201m) | Dialight (DIA LN, £88m)

N+1 Singer - Morning Song 03-08-2016

A G Barr (BAG LN) Struggling to grow the top-line | Devro (DVO LN) Interims a curate’s egg | GlobalData (DATA LN) – contains a video link Video overview

Forecasts reduced on slow start to 2016

Spectris has reported a slow start to 2016 with LFL sales down 4% and declines in each region apart from Asia Pacific. Despite this, management reiterated existing expectations, which were clarified as adjusted operating profit of c.£182-183m, reflecting a combination of its broad spread of end markets and self-help measures to improve profitability. We have reduced our estimates by 4% pa, to adjusted operating profit of c.£181m. With the share price almost in line with our 1765p target price an

Morning Song

Actual Experience (ACT LN) Poised for execution | Halfords Group (HFD LN) Accretive M&A barely alters capital return potential | Scapa Group (SCPA LN) Strong trading and accretive acquisition | Spectris (SXS LN) Forecasts reduced on slow start to 2016

Challenging start to the year

Spectris has issued a subdued AGM trading update for the first four months of the year, with LFL sales down 4% and underlying declines in all regions apart from Asia Pacific. Given this backdrop, the group remains focused on aligning costs to sales and improving efficiency. Management has reiterated guidance for 2016 based on its self-help measures to improve profitability and the diversified nature of its business, but notes that forward visibility is limited. With trading so far weaker than th

Morning Song

Augean (AUG LN) Site purchase to support ANSS contract | Croda International (CRDA LN) Impressive FY results, 100p special dividend confirmed | Dotdigital Group (DOTD LN) Matching ambition with delivery | Genus (GNS LN) H1’s: strong PIC performance but ABS impacted by weak dairy trends | Oxford BioMedica (OXB LN) Proposed £8.1m placing provides cash resources into H2 2016 | Spectris (SXS LN) Bolt-on acquisition of CAS Clean Air Service

Bolt-on acquisition of CAS Clean Air Service

Spectris has acquired CAS Clean Air Service, a Swiss cleanroom services business, for an undisclosed amount. The business generates sales of approximately £7m, the majority of which from services. CAS will be integrated into Particle Measuring Systems (PMS) within the Materials Analysis division, but remain a distinct service brand. Management expects strong growth once CAS is able to leverage the expertise available within PMS. We do not expect the acquisition to have a material effect on our f

2015 results in line; outlook more positive

Spectris has reported 2015 adjusted operating profit of £181.1m in line with its Q3 guidance, which was for profit towards the bottom of the range at that time of £179-196m. This is in line with our forecast of £180.5m, but is materially above the bottom of the current market range, suggesting upgrades to consensus. Trading does not appear to have weakened since the Q3 trading update and the outlook appears more encouraging than when Spectris last reported, not least to the group’s own efforts t

Forecasts reduced, but move to Hold

Spectris’ Q3 update confirmed a LFL sales decline of 1% and worsening conditions through the four months to the end of October, in common with many other groups in the sector. Updated guidance is for 2015 adjusted operating profit towards the bottom of the range of c.£179-196m. We have reduced our 2015 operating profit forecast by 14% to £180.5m, with larger reductions for the following years, and our target price from 2070p to 1770p. However recent share price weakness means there is modest ups

Subdued trading in line with the sector

Spectris’s Q3 trading update has confirmed a LFL decline in sales of 1% and deteriorating conditions through the four months, in line with the subdued trading reported by many other groups in the sector. Management has updated guidance and now expects full year adjusted operating profit to be towards the bottom of the range. This appears to imply a downgrade to consensus of c.5% and we expect to reduce our forecasts accordingly. However it seems likely that this level of downgrade was already re

Morning Song

AVON RUBBER (AVON LN) Strong FY15 results and prospects remain positive | CARADOR INCOME FUND PLC (CIFU LN) October NAV | SPECTRIS (SXS LN) Subdued trading in line with the sector

Morning Song

Bodycote (BOY LN) H1 decline | Centaur Media (CAU LN) Interims – profit better than expected | Findel (FDL LN) Reassuring AGM statement | Instem (INS LN) Trading in line | Minds + Machines Group (MMX LN) Domain sales growing, cash position strong | Skyepharma (SKP LN) Supportive GSK Q2 2015 results | Spectris (SXS LN) Downgrade to expectations

Downgrade to expectations

Spectris has reported challenging trading in H1, and is guiding to FY profit at the low end of market expectations, including cost reduction measures and before FX. Taking these together we could see a downgrade to our forecasts of perhaps c.7%.

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.