Reassuring AGM update, still attractively valued
Strix 2020 AGM trading update: Strix last week issued a reassuring statement. ‘Strix has continued to make a solid start to 2020, given the global macroeconomic disruption caused by COVID-19…We have successfully implemented a range of efficiency measures and strategic initiatives to limit the impact on the FY forecast and continue to monitor consumer demand carefully as lockdown restrictions are eased’ CEO, Mark Bartlett
01 Jun 20
Strix has released an AGM statement indicating that trading in the early part of the year has been solid, the new financing facilities have been put in place, product development is on track with 14 new products released during the year and the factory move remains on schedule and to budget. The current trading period is an important one and the scheduled trading update 23rd July should provide more colour on the underlying performance as well as the early indications from the new products already released and the outlook for those that are scheduled to be released in H2. The resilience of the Strix business has been reaffirmed during the current situation with financial guidance having been maintained and the final dividend committed to, a 10% increase yoy.
28 May 20
Confirmation of FY19 dividend
At a time when many companies have withdrawn guidance and suspended dividend payments, Strix confirms that it will pay its final dividend for FY19. The 5.1p final, announced in the FY results (March 18th), combined with the 2.6p interim already paid takes the FY19 dividend to 7.7p. This is a 10% increase yoy and in line with the commitment management made at the time of the listing (Aug 2017). That the Board is confident enough to commit to paying the dividend, equating to c. £10.0m, during a period of elevated capex and other companies are not paying theirs, or providing guidance, highlights the resilience of the Strix business. The shares have rallied from the recent low, but the valuation remains appealing at c. 13.0x current year earnings, underpinned by the 4.3% yield.
04 May 20
The weakest link?
Given the current and rapidly evolving situation around COVID-19, near term trading can seem somewhat uncertain across most industries. So, we look to focus on the balance sheet with regards to leverage, liquidity and solvency positions across the industrial sector. We also provide information on financial headroom and covenants. Companies discussed are the following, AB Dynamics^, Bodycote^, Diploma^, DiscoverIE, Flowtech Fluidpower^, Fulcrum Utility Services^, Halma^, IMI^, Judges Scientific^, Mpac^, Oxford Instruments^, Porvair^, Renew^, Rotork^, Spectris^, Spirax-Sarco^, Strix^, Trifast^, Vitec^, Weir^ and Quartix^.
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14 Apr 20
Solid FY19 results ahead of expectations & COVID 19 resilience
Yesterday Strix announced strong results for FY19, while also demonstrating resilience and managing the impact on its business from COVID19. Strix has delivered £36.9m EBITDA, slightly ahead of our expectations. Total dividends of 7.7p have been announced, which is 10% growth year-on-year (yoy).
19 Mar 20
Price not reflective of earnings quality post a good FY19 that delivered 10% dividend growth
Pre IFRS 16 operating profit and PBT came in marginally ahead of ZC forecasts at £31.5m and £30.3m respectively. Revenue at £96.9m was in line with revised forecasts showing 3.3% growth yoy (+1.8% ccy). Headline profit includes the impact of the acquisition of Halosource in the year, excluding this underlying operating profit increased c. 8% on c. 3% revenue growth post another strong margin performance. Underlying gross profit margin was 42.3%, an 80bp yoy improvement driven by continuing efficiency gains and a good price performance, ahead of the 3.0%-5.0% annual pricing pressure. Organic PBT growth was strong at 9.9% £32.1m. In Controls, market share by value remains c.54% with Chinese share increasing on the back of growth in the healthy cooker market.
18 Mar 20
Our cup of tea
On 23rd January, Strix announced that it expected full year results (for the year ended 31st December 2019) to be in line with market expectations. We leave our P&L forecasts unchanged but update our cash flow forecasts as the company is set to report closing net debt of c.£26.3m (Shore forecast: £30.8m, Bloomberg consensus: £32m). We viewed the update positively and were encouraged to learn that the company has recentlydiscovered potential wider applications for water filtration assets acquired from Halosource in March 2019. Based on a 13.5x 2020F PER multiple (and cross-checked with a DCF), we upgrade our fair value to 220p from 200p. We maintain our BUY recommendation, highlighting the growth opportunities of the Water Category, the increase in the company’s automated production of kettle controls and the group’s consistently strong cash generation.
24 Jan 20
Another good performance despite the macro backdrop
Since listing in Aug 2017, Strix has consistently highlighted the resilience of its business through its ability to hit forecasts despite the uncertainty of trade wars, Brexit and slower consumer confidence. Today’s pre-close states it will again meet consensus profit expectations which is in the range of ZC’s estimates of £31.1m operating profit and £29.7m PBT. The controls business maintained its leading market share globally and in all regions with the market growing at a solid c. 4.5%. The Water division had a slower year growing at 6% but, as expected, performance improved in H2. Net debt of £26.3m is better than forecast due to a combination lower capex and better working capital. The shares have not participated in the Q4 rally partly because of the strong performance during the year (c. 38%). However, the valuation still looks compelling at 12.5x current year forecasts for a such a resilient business. The yield of 4.1% remains attractive with the company confirming it will increase the FY19 dividend by 10% to 7.7p
23 Jan 20
Solid FY19 update, still attractively valued
Strix FY 19 trading update: ahead of FY 19 results due on 18th March, Strix has issued a very reassuring year-end update. ‘Strix has delivered a solid performance during 2019 despite continuing global volatility driven by Brexit and USA China trade tensions…and expect to report profit after tax in line with market expectations.’
23 Jan 20
Interim results: On course to meet estimates, Controls margin strong
Revenue increased 2.5% to £43.9m (HY18: £42.9m), 1.0% on constant currency basis, with gross margin 10bps ahead yoy at 38.0%. Good cost control combined with lower finance charge leads to a 4.6% yoy increase in pre-tax profit to £11.5m (HY18: 11.0m). Today’s interim results indicate that the Controls business has a had a strong start to the year on the back of positive mix and the price increases put through on legacy product at the end of FY18. Aqua Optima is flat yoy due to timing of contracts, ZC expect a stronger H2 as material private label contracts come on stream and the majority of additional revenue from HaloSource lands in H2. Net debt at period end stood at c. £33.4m and is on course to meet ZC FY19 forecast of c. £32.0m, sub 1.0x EBITDA. Interim dividend increased 13% to 2.6p and is in line with the Board’s commitment to pay 7.7p in FY19, a 10% yoy increase. No change to ZC forecasts, albeit today’s results increase confidence in achieving FY19 forecasts. The shares trade on 11.8x FY19 earnings falling to 10.9x in FY20.
18 Sep 19
Solid H1 results, promising outlook
‘The Group has delivered a solid H1 performance and is trading in line with full year market expectations’. Accordingly, we leave our FY 19/20 forecasts unchanged. Reassuringly, Strix reconfirms at this stage its intention to pay total dividends of 7.7p per share for FY 19, +10% YoY. This should underline the income attractions of this stock to investors
18 Sep 19
Small Cap Feast
Bracken Trading — The Group undertakes its main trade of lending as well as electricity generation through the operation of two solar farms. Admission on the 09/09/2019 WORLD HIGH LIFE—The Investment Vehicle is to identify investment opportunities and acquisitions in legal Medicinal Cannabis, Hemp and CBD wellness sectors. The Company has raised £2,398,309 through three issues of Ordinary Shares to private subscribers.
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06 Sep 19
Solid trading in H1 underpins confidence in FY19 estimates
Strix confirms that it has traded in line with FY19 profit expectations in the first half of the year. Interim profit after tax will be ahead yoy and underlying cash generation strong leading to good performance in terms of net debt, considering investment in the new manufacturing site, the acquisition of HaloSource in Q1 and the increased dividend. We leave forecasts unchanged on today’s statement despite the apparent progress in terms of cash generation as Capex relating to the factory move is expected to ramp up in H2 as part of the two year £20.0m investment. Important for profitability, the underlying Controls market remains solid and continues to grow, albeit at a marginally slower rate than reported in FY18. Strix Global market share by volume is broadly stable and it has increased share in China, as predicted at the end of last year. AO has also maintained market share but in a market that has declined in H119. The shares trade on 11.4x current year earnings falling to c. 10.5x in FY20. The 4.8% yield is attractive on a conservative balance sheet with less than one times Net debt/ EBITDA.
18 Jul 19
Encouraging H1 19 update and FY on track
Strix H1 trading update just published: ‘The Group has delivered a solid performance for the period …and expects to report (FY) results in line with market expectations’. Accordingly, we leave our FY 19/20 forecasts unchanged. Reassuringly, Strix reconfirms at this stage its intention to pay total dividends of 7.7p per share for FY 19, +10% YoY. This should underline the income attractions of this stock to investors.
18 Jul 19
Small Cap Feast
Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m. Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year. Freyherr International Group PLC the Medicinal Cannabis holding company established in 2016, is planning to list on the NEX exchange on the 30th July
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18 Jul 19
Positive trading update, new factory progressing to schedule
We note the announcement this morning by Strix, confirming it continues to trade in line with market expectations, as previously announced at the time of the FY18 results (21st March 2019). It has also confirmed that the group has signed an agreement with the Zengcheng Government regarding a land purchase and construction of the group’s new factory is scheduled to start at the end of Q3 this year, this is in line with expectations. The impact of this new factory is already built into forecasts and its effect was discussed in a ZC note published on the same day as the FY18 results. Despite c. £25.0m of investment over the next two years, net debt will remain c. 1.0x EBITDA. Dividend growth of 10% to 7.7p in FY19 yields 4.8% with the shares trading on 10.6x earnings in FY20.
23 May 19
Growth flowing from Aqua Optima
On 21st March, Strix reported an in-line set of results for the year ended 31st December 2018. Adjusted basic EPS was exactly in line with our forecast at 14.9p and slightly ahead of consensus (14.1p). A slight revenue miss was offset by a 1.1ppt increase in the underlying operating margin to 32.9%, as the group benefitted from an increase in automated production. Additional granularity on the impact of newly acquired water filtration assets from Halosource has led us to marginally downgrade our adjusted EPS forecast from 16.0p to 15.2p in 2019 and 16.4p to 16.2p in 2020, whilst the £20m planned capex on a new factory reduces cash flow forecasts. We introduce forecasts for 2021, when we forecast a step change in free cash flow, as the new factory becomes operational and the Halosource assets become earnings enhancing. We continue to be bullish on the growth prospects of Aqua Optima, which we expect to benefit from synergies with Halosource, and expect the >25% growth rate that the subsidiary achieved in 2018 to continue for the next two years. For this reason, combined with the group’s extraordinarily high margins and strong cash generation, we maintain our BUY recommendation and 200p fair value.
27 Mar 19
FY18 results highlight good performance
As announced in the pre-close trading update at the end of January (22nd), Strix has confirmed FY18 results in line with profit expectations, cash generation was ahead of forecast leading to a lower than expected net debt position. Revenue of £93.8m was 2.5% below ZC estimate of £96.1m but on a constant currency basis would have shown 4.5% growth to £95.1m. Adj operating profit of £30.9m was in line with the £30.8 forecast as were adj. PBT of £29.2m and EPS of 13.8p. Net debt of £27.5m was a touch a below the £28.0m updated forecast, and significantly ahead of the £30.8m estimate prior to January’s trading update. We leave profit forecasts in FY19 and FY20 unchanged and introduce FY21 forecasts. Estimates assume growth in profitability of 8% and 7% in FY20 and FY21 as the investment into HaloSource and growth from Aqua Optima begin to have a meaningful impact. The major change to forecasts relates to the impact of the new factory. Despite c. £25.0m of investment over the next two years, net debt will remain c. 1.0x EBITDA. Dividend growth of 10% to 7.7p in FY19 yields 4.6% with the shares trading on c. 11x earnings in FY20.
21 Mar 19
Securing Future Expansion
Strix – the world’s largest kettle safety controls supplier – released preliminary FY2018 results in line with our own and market expectations. Expansion plans, including the new Chinese factory and growth outside kettle controls, notably Aqua Optima, appear on track. In 2019, dividends are still planned to increase by 10.0% to 7.7p per share, which reflects management confidence.
21 Mar 19
Small Cap Feast
Network International Holdings—Pleading enabler of digital commerce across the Middle East and Africa region, operating across over 50 highly underpenetrated payment markets that contain a total population of 1.5 bn. 2018 rev $298m, underlying EBITDA $152m. Due April. No new funds to be raised. Secondary sell down. Targeting 25% of at least 25%. Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m.
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21 Mar 19
Completion of HaloSource acquisition
Strix has announced that permission for it to acquire certain assets of HaloSource Corporation was granted by the targets shareholders at a general meeting held in late February. Details of the offer were first announced on the 7 th February indicating a total consideration of $1.3m (c. £1.0m), this has not changed. The assets being purchased relate to two advanced water filtration technologies, that complement Strix’s existing Aqua Optima division, and a reusable consumer product already available to consumers in the US. The deal also includes a high-quality R&D footprint in the US and Chinese production facilities. Revenue synergies will be derived from using Strix existing sales channels to further commercialise the two acquired technologies. Financially, the HaloSource assets will breakeven in FY20 and make a positive contribution to profitability in FY21. In FY19 revenue contribution is expected to be c. £2.0m with a £2.0m P&L investment reducing PBT to £29.7m (prev. £31.7m). Post changes to forecasts, the shares trade on 11.1x FY19 earnings falling to 10.3x in FY20 and yield c. 5%.
08 Mar 19
Small Cap Feast
Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Diaceutics, a data analytics and implementation services company which services the global pharmaceutical industry, is looking to join AIM late March, offer TBC.
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08 Mar 19
Proposed asset acquisition
Strix has made an offer for certain assets of HaloSource Corporation for c. $1.3m (c. £1.0m). HaloSource’s technology is focused on water filtration. Its astreaTM One reusable drinking water bottle is the only one currently certified to remove lead, a significant issue in the US, to the NSF-53 Standard. The business was listed on London’s AIM market and the shares were suspended on 20th December 2018 due to the failure to raise financing to fund it as a going concern. Whilst there can be no certainty that a deal will happen, today’s statement alludes to it being subject to conditions, it appears to be opportunistic, adding a new technology which it can exploit through its Aqua Optima brand, for very little cost.
07 Feb 19
Small Cap Feast
United Oil & Gas (UOG.L) an oil and gas exploration and development company brought to the Official List (Standard Segment) in July 2017 by way of a reverse takeover of Senterra Energy plc. No capital to be raised, expected market cap of £17m and expected 28 Feb Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m.
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07 Feb 19
Well positioned for further growth in 2019
Strix’s pre-close trading update, which confirmed market expectations for its 2018 earnings, included a number of other positives: robust free cash flow, sustained market leadership, brisk 7% core kettle safety category growth, an on track planned factory relocation and reconfirmation of ongoing vigorous IP protection. In our view, Strix remains well placed for further progress in 2019 whilst valuation remains relatively undemanding.
23 Jan 19
FY18 profitability in line with expectations, net debt ahead
Strix has confirmed that it expects to report FY18 results in line with market expectations. ZC forecast constant currency revenue of £96.1m, adj operating profit of £30.8m and PBT of £29.1m, in line with consensus expectations. The global kettle market continued to grow strongly at an estimated 7%. Strix states it has maintained its market share by volume at c.38%, indicating that it has also seen good underlying growth. Albeit, the mix of growth has shifted towards less regulated markets and the US and away from China. We view this positively in terms of margin outlook and potential to increase global market share. The only change to numbers today relates to lower net debt, ZC reduces its FY18 forecast from £30.8m to £28.0m, as stated in the trading update. This flows through into FY19 and FY20 estimates, however, forecasts currently assume no impact from the investment into the new factory. The shares trade on 9.6x FY19e earnings and yield 5.3% on the 7.7p dividend committed to by management.
22 Jan 19
Small Cap Feast
Circassia Pharma (CIR.L) - specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019. Chaarat Gold Holdings—RTO, the Company intends to acquire Kapan Mining and Processing CJSC, which owns the Shahumyan medium-sized polymetallic mine in Kapan in the Republic of Armenia. No raise, market cap of £110.1m, due early Feb
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22 Jan 19
Protecting shareholder value
Strix announced three important updates in relation to its IP and patent protection in an RNS yesterday. This announcement is important both for the quality of the company’s growth and for the valuation placed on the company’s shares. As a result, we view it positively.
13 Dec 18
Small Cap Feast
PetroTal Corp is an oil and gas company whose shares are currently admitted to trading on the TSXV. The Company is focused on development of oil and gas assets in Peru and it currently has controlling interests in three onshore Peru license blocks. No new funds being raised. Due 21 Dec. Mkt cap c.£80m Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer TBC. Due 18 Dec. Mkt Cap A$64m. Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is due to start trading on AIM 14 December. Raising £2m at 290p. Mkt cap at issue price £13.6m. Manolete Partners—leading UK insolvency litigation financing business looking to join AIM raising £16.3m as a placing and £13.1 realised by the selling shareholder at 175p. Market cap £76.3m, expected 14 December Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected mid December.
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12 Dec 18
Solid interims underpin FY18
Strix has announced a solid set of interim results providing a high level of confidence in the FY18 profit before tax forecast of £29.1m. Revenue increased 1.5% to £42.9m (HY17: £42.2m) and gross profit increased 3.5% to £16.3m (HY17: £15.7m) on margins increasing 70bps to 37.9%. Adj. Operating margins increased 120bps to 27.9% and on proforma numbers profit before tax increased 10.4% yoy to £11.0m (HY17: £10.0m). The mix within the controls business has better balance. Regulated Markets continue to grow strongly at c. 3%, albeit down from the 5% in FY17, being driven by the growth market of North America. China has returned to growth reporting 6% and Less Regulated grew 8%. We leave PBT forecasts unchanged across the forecasts period but reduce the assumed tax rate from 19% to c.4% based on management guidance. This increases EPS by c. 19% in each year. On new earnings estimates the shares trade on 12.1x and yield 4.2% with the management confirming its commitment to pay 7.0p of dividend in FY18 followed by 7.7p in FY19.
19 Sep 18
Interims Confirm Growth Optimism
With positive sales growth, even faster EBITDA expansion and a sustained 38% world leading market share in kettle safety controls, Strix’s interim results leave the company well-placed to match full year expectations. Moreover, the US performance complemented a recent announcement regarding coffee in that market. Strix proposes a 2.3p interim dividend confirms both an intended 7.0p full year outcome and 7.7p in FY2019.
19 Sep 18
Small Cap Breakfast
Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months. Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Offer TBA. Due late Aug. Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa
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30 Aug 18
Good performance in H1 underpins FY18 outlook
Strix has released a trading update for the six months to the end of June confirming that trading is on course to meet FY18 expectations (ZC forecast FY18 revenue of £96.1m and profit before tax of £29.1m) leading us to leave forecasts unchanged. Global market share has been maintained at c. 38% with the US showing particularly good growth in Regulated Markets. The U9 series is starting to attain good volume with c.20% of specifications going into Less Regulated Markets. In other product segments Aqua Optima has continued the performance seen in FY17 taking UK market share up to 20%, a record level. The shares have rerated recently closing last night at c.169p. This puts the shares on 14.5x current year earnings, assuming a 19% tax rate. The balance sheet is robust with a forecast net debt to EBITDA of sub 1.0x and the shares yield 4.2%, covered almost twice by earnings.
18 Jul 18
A combination of steady top line expansion, operating margins fully supported by technological excellence and unique product experience, all support the case for Strix – the world’s largest supplier of kettle controls – consistently to deliver profit growth to shareholders. Despite strong cash conversion, a circa 38% global market share and high growth visibility, valuation looks undemanding.
18 Jul 18
Small Cap Breakfast
CentralNic-Schedule 1 from the business operating in proprietary retail platforms selling domain names and associated web presence services including hosting and email on a subscription basis, has acquired KeyDrive S.A which constitutes a RTO. Raising £24m at 52p, combined market cap of £88.7m Trackwise—established business that manufactures specialist products using printed circuit technology. Offer TBA. Due Late
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18 Jul 18
Two former AIM companies could be in the FTSE 100 index in the near future following the successful bids by Melrose Industries for GKN and GVC for Ladbrokes Coral. Melrose has been on the brink of the FTSE 100 for a while and if a constituent company of the FTSE 100 is acquired than it can be replaced by the acquirer when it is eligible. Melrose is already on the reserve list for inclusion in the FTSE 100, following the March 2018 quarterly review.
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01 Apr 18
Maiden results show good progress, strong start to FY18
Strix has announced a maiden set of FY results post listing in August 2017. Revenue of £91.3m was broadly in-line with the ZC forecast of £92.6m, reflecting 2.9% YoY growth. A positive mix effect, as regulated markets grew more strongly than expected, meant the gross profit margin increased 120bps YoY to 40.7%, this was 90bps ahead of the ZC 39.8% forecast. As a result, gross profit of £37.2m was marginally ahead of the £36.9m forecast. Net debt of £45.9m is slightly lower than the forecast that was reduced by c.£10.0m to £48.0m at the time of the FY17 trading update (22nd January). Net debt will continue to decline with net debt to adj. EBITDA at year end of 1.3x falling to just 0.8x in FY18. On fully diluted earnings, incorporating a 19% tax rate, the shares trade on 11.2x FY18 earnings and yield a prospective 5.4%. A compelling valuation for a global leader with c.38% market share.
22 Mar 18
Positive finish to the year
This morning’s trading update shows a positive finish to the year with trading in the last five months in line with expectations (first day of trading 7th Aug 2017). Zeus Capital forecasts are for £92.6m of revenue leading to EBITDA of £35.1m and pro forma PBT of c. £26.6m. Cash generation since August has been better than anticipated leading to a material improvement in forecast net debt. Ahead of further detail in the FY results (22nd March), the ZC estimate reduces from £58.5m to £48.0m in FY17. The improved position flows through into lower FY18 and FY19 net debt estimates. We leave income forecasts for the current year, FY18 and FY19 unchanged but acknowledge that the good performance in FY17 provides the business with a solid platform to meet FY18 growth estimates. The FY18 PER, using a 19% tax rate, of 11.1x falls to 9.3x factoring in the c.3% actual rate and the lower net debt generates an EV/EBITDA ratio of just 8.0x with gearing of sub 1.0x.
22 Jan 18
Small Cap Breakfast
Belluscura— Provider of premium medical devices at value prices to address part of the global unmet need for affordable, premium quality medical devices. Raising £7.5m to £10m. Offer TBA. Due early Dec Miriad Advertising—Global video advertising company incorporated in 2015 and is engaged in the development of native invideo advertising . 2016 rev £0.7m and £7.3m operating loss. Offer TBA Keystone Law Group— full service law firm with over 250 self-employed lawyers . Due 27 Nov. Raising £10m at 160p. Mkt Cap £50m. Revenue of £25.6 million and EBITDA of £2.1 million. In FYJan17. Beeks Financial Cloud -niche cloud computing and connectivity provider for automated (algorithmic) trading in Forex and Futures financial products . Raising £7m. Mkt Cap c.£24.5m. Due 27 Nov. FYJun17 rev £4m. Profitable at operating level. City Pub Group - owner and operator of an estate of 34 premium pubs across Southern England. £30m raise. Consistent track record of strong revenue and EBITDA growth, with a three year CAGR from FY14 to FY16 of 34.9% and 44.8% respectively, and an EBITDA margin of 14.7% in FY16. Due late Nov. Offer raising £46.6m at 170p with market cap £96m. Ten Lifestyle Hldgs. Technology-enabled lifestyle and travel platform providing trusted concierge services to the world's wealthy. Net revenue increased from £20m in the year ended 31 August 2015 to £33m in the year ended 31 August 2017, a compound annual growth rate of 29%. Offer TBA, expected 27 Nov 2017. OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected mid November.
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21 Nov 17
Global leader in Kettle controls
Strix is the global leader in the manufacture of kettle safety controls with a market share by value of over 50%. Its controls are used an estimated 1 billion times a day by 15% of the World’s population across more than 100 countries. Structural growth of c.10% compound in Less Regulated markets will drive volume growth but even in Regulated markets the combination of the replacement cycle and increased penetration means growth will be positive. Despite the strong performance since float (c.+37%) Strix currently trades on a FY17 EV/EBITDA multiple of 9.1x and a PER of 12.1x (assuming a conservative 19% tax rate). Factoring the actual tax rate of c. 3% the PER falls to 10.1x in FY17 and 9.2x in FY18. Management has committed to an attractive dividend, we forecast the company will pay a 2.1% dividend yield for the five months it is listed in FY17, followed by 5.1% in FY18, with 10% growth in FY19.
27 Sep 17