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  • 10 Dec 19
Short term caution, medium term confidence

Zytronic’s FY19 results (to September) are in line with expectations, confirming a customary improvement in H2 activity. As highlighted previously, a decline in Gaming volumes was the key driver of a 10% decline in Group revenue during the year. There is some near term caution in the statement with trading in the first two months behind the prior year. Our FY20 PBT forecast reduces by 29% as a result. Nevertheless, the pipeline is substantially higher than last year, underpinning medium term confidence. The dividend will no doubt be a focus for investors. This was maintained at 22.8p for the full year (11.8% yield), and the future policy is under consideration by the Board. On our revised forecasts, the shares are trading on 14.5x P/E with £13m net cash.

Companies: Zytronic
  • 10 Dec 19
Short term caution, medium term confidence

Zytronic’s FY19 results (to September) are in line with expectations, confirming a customary improvement in H2 activity. As highlighted previously, a decline in Gaming volumes was the key driver of a 10% decline in Group revenue during the year. There is some near term caution in the statement with trading in the first two months behind the prior year. Our FY20 PBT forecast reduces by 29% as a result. Nevertheless, the pipeline is substantially higher than last year, underpinning medium term confidence. The dividend will no doubt be a focus for investors. This was maintained at 22.8p for the full year (11.8% yield), and the future policy is under consideration by the Board. On our revised forecasts, the shares are trading on 14.5x P/E with £13m net cash.

Companies: Zytronic
  • 10 Dec 19
Small Cap Feast

MJ Hudson Group PLC, the financial services support provider to Alternatives fund managers and asset owners, is planning an AIM IPO. Deal details TBC.

Companies: EAI FOG ERIS ZYT JNEO MIND FUM KWG ZIN OTMP

  • 10 Dec 19
Small Cap Feast

MJ Hudson Group PLC, the financial services support provider to Alternatives fund managers and asset owners, is planning an AIM IPO. Deal details TBC.

Companies: EAI FOG ERIS ZYT JNEO MIND FUM KWG ZIN OTMP

  • 14 May 19
H1 results held back by Gaming

Zytronic’s H1 results contain no surprises, less than two weeks on from the trading update. Gaming sector weakness outweighed a stronger performance from a number of other sectors and PBT reduced to £1.4m from £2.2m in H1’18. The outlook statement strikes a cautious tone and this has already been reflected in our forecasts (as revised on 2nd May). The shares trade on a marked discount to the smaller cap goods stocks (6.6x cal’19 EV/EBITDA versus peers on 9.2x). Zytronic’s dividend yield is now striking at 8%, which is affordable (net cash £12.1m) and, we believe, sustainable although dependent on the recovery in higher margin activity over coming periods.

Companies: Zytronic
  • 14 May 19
H1 results held back by Gaming

Zytronic’s H1 results contain no surprises, less than two weeks on from the trading update. Gaming sector weakness outweighed a stronger performance from a number of other sectors and PBT reduced to £1.4m from £2.2m in H1’18. The outlook statement strikes a cautious tone and this has already been reflected in our forecasts (as revised on 2nd May). The shares trade on a marked discount to the smaller cap goods stocks (6.6x cal’19 EV/EBITDA versus peers on 9.2x). Zytronic’s dividend yield is now striking at 8%, which is affordable (net cash £12.1m) and, we believe, sustainable although dependent on the recovery in higher margin activity over coming periods.

Companies: Zytronic
  • 02 May 19
Expectations reduced, driven by Gaming

Zytronic has given a subdued trading update for H1 19 and reduced guidance for the full year. Adjusted PBT is expected to be c.£1.4m for H1 19 vs. £2.2m in the comparative period. This has been driven by the Gaming sector, reflecting slower than expected conversion of opportunities to orders and an unhelpful mix effect from lower sales of large panels. The decline in Gaming outweighed stronger performances from the group’s other sectors. Management remains cautious on the level and timing of recovery in Gaming sales, notwithstanding its strong pipeline, and hence on the group’s performance in H2 19. We have reflected this caution in our forecasts, reducing adjusted PBT by 33% to £3.2m for FY19 and by 28% to £3.5m for FY20. Our new estimates put the shares on an EV/EBITDA multiple of 9.5x for calendar 2019, in line with the smaller cap goods stocks.

Companies: Zytronic
  • 02 May 19
Expectations reduced, driven by Gaming

Zytronic has given a subdued trading update for H1 19 and reduced guidance for the full year. Adjusted PBT is expected to be c.£1.4m for H1 19 vs. £2.2m in the comparative period. This has been driven by the Gaming sector, reflecting slower than expected conversion of opportunities to orders and an unhelpful mix effect from lower sales of large panels. The decline in Gaming outweighed stronger performances from the group’s other sectors. Management remains cautious on the level and timing of recovery in Gaming sales, notwithstanding its strong pipeline, and hence on the group’s performance in H2 19. We have reflected this caution in our forecasts, reducing adjusted PBT by 33% to £3.2m for FY19 and by 28% to £3.5m for FY20. Our new estimates put the shares on an EV/EBITDA multiple of 9.5x for calendar 2019, in line with the smaller cap goods stocks.

Companies: Zytronic
  • 02 May 19
Small Cap Feast

SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019. Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

Companies: MCL IQE CER HAYD DAL SIS PGH ZYT CHRT JWNG

  • 02 May 19
Small Cap Feast

SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019. Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

Companies: MCL IQE CER HAYD DAL SIS PGH ZYT CHRT JWNG

  • 14 Dec 18
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Companies: SEELGENZYTPHTMSTEMDRVRBDKMKKETLMYSL
  • 14 Dec 18
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Companies: SEELGENZYTPHTMSTEMDRVRBDKMKKETLMYSL
  • 11 Dec 18
FY18 results in line with October guidance

Zytronic reported results for FY18 in line with its October guidance, with adjusted PBT down 16%. This was driven by a decline in gross margin, due to operating inefficiencies resulting from lower revenues to its Financial end market, and yield problems as new designs for the Gaming market, requiring new processes, moved into production. We have made no changes to our forecasts for adjusted PBT and EPS, which assume modest sales growth and no uplift in margin while the group works to improve yields. These put the shares on an EV/EBITDA multiple of 7.6x for calendar 2019, which represents a c.13% discount to the smaller cap goods stocks.

Companies: Zytronic
  • 11 Dec 18
FY18 results in line with October guidance

Zytronic reported results for FY18 in line with its October guidance, with adjusted PBT down 16%. This was driven by a decline in gross margin, due to operating inefficiencies resulting from lower revenues to its Financial end market, and yield problems as new designs for the Gaming market, requiring new processes, moved into production. We have made no changes to our forecasts for adjusted PBT and EPS, which assume modest sales growth and no uplift in margin while the group works to improve yields. These put the shares on an EV/EBITDA multiple of 7.6x for calendar 2019, which represents a c.13% discount to the smaller cap goods stocks.

Companies: Zytronic
  • 11 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.

Companies: DRV K3C VLX RAI POLX ZYT TSTL LWRF IXI ARIX

  • 11 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.

Companies: DRV K3C VLX RAI POLX ZYT TSTL LWRF IXI ARIX

  • 19 Oct 18
Morning Song

Dechra Pharmaceuticals (DPH LN) In line trading update & entry to Brazil | Futura Medical (FUM LN) Equity capital raise for MED2002 development | Urban Logistics REIT (SHED LN) Strong NAV performance, and total returns | Zytronic (ZYT LN) Year end update – revenue in line, lower than expected margins

Companies: DPH FUM SHED ZYT

  • 19 Oct 18
Morning Song

Dechra Pharmaceuticals (DPH LN) In line trading update & entry to Brazil | Futura Medical (FUM LN) Equity capital raise for MED2002 development | Urban Logistics REIT (SHED LN) Strong NAV performance, and total returns | Zytronic (ZYT LN) Year end update – revenue in line, lower than expected margins

Companies: DPH FUM SHED ZYT

  • 18 Oct 18
Small Cap Feast

Kropz PLC—an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana. Looking to join AIM, offer TBC, market cap TBC. Due Late October. Azalea Energy—oil and gas production and development company based in Louisiana, United States. Net production of 13 MMcfe/D (2,200 boepd) and total 1P proved reserves of 91 Bcfe (15.1 mmboe), 2P reserves of 111 Bcfe (18.5 mmboe) raising up to $38m, expected mkt cap over $100m. Due 29 Oct Summerway Capital investing company established to acquire companies or businesses which the directors of the Company believe have the potential for strategic, operational and performance improvement so as to create shareholder value. Offer raising £6.08m at 100p, market cap £6.13m expected 19 October Admission is being sought as a result of the proposed RTO of Cambian Group plc following completion of the acquisition by CareTech a leading provider of specialist social care services, supporting adults and children with a wide range of complex needs. No raise, market cap TBC expected 19 October. Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due late Oct 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.

Companies: IPF MSMN CLP TAM RWS SHED EVG ZYT RENE

  • 18 Oct 18
Small Cap Feast

Kropz PLC—an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana. Looking to join AIM, offer TBC, market cap TBC. Due Late October. Azalea Energy—oil and gas production and development company based in Louisiana, United States. Net production of 13 MMcfe/D (2,200 boepd) and total 1P proved reserves of 91 Bcfe (15.1 mmboe), 2P reserves of 111 Bcfe (18.5 mmboe) raising up to $38m, expected mkt cap over $100m. Due 29 Oct Summerway Capital investing company established to acquire companies or businesses which the directors of the Company believe have the potential for strategic, operational and performance improvement so as to create shareholder value. Offer raising £6.08m at 100p, market cap £6.13m expected 19 October Admission is being sought as a result of the proposed RTO of Cambian Group plc following completion of the acquisition by CareTech a leading provider of specialist social care services, supporting adults and children with a wide range of complex needs. No raise, market cap TBC expected 19 October. Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due late Oct 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.

Companies: IPF MSMN CLP TAM RWS SHED EVG ZYT RENE

  • 24 May 18
Strong performance from quality – 11 focus stocks

We have refreshed our quality style screen for the second time and report on style performance since the last refresh in October. Performance has been very strong, outperforming the small-cap index by c.1600bps (weighted basis) and c.1000bps (unweighted). There has been volatility with the market and this style has yet to be tested in a concerted down market, but in a flat or rising market quality appears to be a successful investment style in small-caps. We have highlighted 11 focus stocks in the new screen and will report back again on performance when we next refresh the screen in about 5-6 months’ time.

Companies: LIO GHT AMO CHH ZYT DOTD GTLY RIV FCRM TAM PMI

  • 24 May 18
Strong performance from quality – 11 focus stocks

We have refreshed our quality style screen for the second time and report on style performance since the last refresh in October. Performance has been very strong, outperforming the small-cap index by c.1600bps (weighted basis) and c.1000bps (unweighted). There has been volatility with the market and this style has yet to be tested in a concerted down market, but in a flat or rising market quality appears to be a successful investment style in small-caps. We have highlighted 11 focus stocks in the new screen and will report back again on performance when we next refresh the screen in about 5-6 months’ time.

Companies: LIO GHT AMO CHH ZYT DOTD GTLY RIV FCRM TAM PMI

  • 18 May 18
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Companies: ZYTWMHNUMOCDOCAKEEHGPRSMWATRFLTRGVCPTEC
  • 18 May 18
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Companies: ZYTWMHNUMOCDOCAKEEHGPRSMWATRFLTRGVCPTEC
  • 15 May 18
Financial sector holds back progress elsewhere

A customer in the Financial sector has experienced a downturn in activity in H1 which has offset strong progress in the Gaming sector. After a poor H1, Financials has seen an improvement in demand and a generally stronger H2 is expected. Exciting opportunities remain in Gaming and elsewhere, and with more normal Financial sales, the outlook remains positive. We have reduced our PBT forecast in FY18 from £5.6m to £5.2m and await updates as the year progresses. Year end net cash is expected to be £14.8m. Given the expected improvement in H2, an ex cash P/E of c.13x and a dividend yield of over 5% are still strong attractions.

Companies: Zytronic
  • 15 May 18
Financial sector holds back progress elsewhere

A customer in the Financial sector has experienced a downturn in activity in H1 which has offset strong progress in the Gaming sector. After a poor H1, Financials has seen an improvement in demand and a generally stronger H2 is expected. Exciting opportunities remain in Gaming and elsewhere, and with more normal Financial sales, the outlook remains positive. We have reduced our PBT forecast in FY18 from £5.6m to £5.2m and await updates as the year progresses. Year end net cash is expected to be £14.8m. Given the expected improvement in H2, an ex cash P/E of c.13x and a dividend yield of over 5% are still strong attractions.

Companies: Zytronic
  • 15 May 18
Morning Song

Amino Technologies (AMO LN) Contract win with T-2 in Slovenia | ITE Group (ITE LN) Acquisition & Rights Issue | Lookers (LOOK LN) Continued outperformance with growing confidence in forecasts | Northgate (NTG LN) In line year end update; VOH growing, but margins still under pressure | Zytronic (ZYT LN) Financial sector holds back progress elsewhere

Companies: AMO HYVE LOOK NTG ZYT

  • 15 May 18
Morning Song

Amino Technologies (AMO LN) Contract win with T-2 in Slovenia | ITE Group (ITE LN) Acquisition & Rights Issue | Lookers (LOOK LN) Continued outperformance with growing confidence in forecasts | Northgate (NTG LN) In line year end update; VOH growing, but margins still under pressure | Zytronic (ZYT LN) Financial sector holds back progress elsewhere

Companies: AMO HYVE LOOK NTG ZYT

  • 22 Feb 18
Morning Song

Centaur Media (CAU LN) Investor Day | IQE (IQE LN) Joint Venture starting to deliver | LiDCO Group (LID LN) Appointment of French distributor | Northgate (NTG LN) Complex update – change to fleet strategy | Rathbone Brothers (RAT LN) Solid FY17 outturn, some additional cost investment flagged | Surgical Innovations Group (SUN LN) Prelims to show strong growth | Wilmington (WIL LN) Interim results & new Chairman | Zinc Media Group (ZIN LN) Update and contract awards | Zytronic (ZYT LN) AGM Update

Companies: CAU IQE LID NTG RAT SUN WIL ZIN ZYT

  • 22 Feb 18
Morning Song

Centaur Media (CAU LN) Investor Day | IQE (IQE LN) Joint Venture starting to deliver | LiDCO Group (LID LN) Appointment of French distributor | Northgate (NTG LN) Complex update – change to fleet strategy | Rathbone Brothers (RAT LN) Solid FY17 outturn, some additional cost investment flagged | Surgical Innovations Group (SUN LN) Prelims to show strong growth | Wilmington (WIL LN) Interim results & new Chairman | Zinc Media Group (ZIN LN) Update and contract awards | Zytronic (ZYT LN) AGM Update

Companies: CAU IQE LID NTG RAT SUN WIL ZIN ZYT

Research, Charts & Company Announcements

Research Tree provides access to ongoing research coverage, media content and regulatory news on Zytronic. We currently have 36 research reports from 2 professional analysts.

Open
N/A
Range Today
N/A
52 Week
180/385p
Daily Volume
N/A
# Shares
16.0m
Daily Liquidity
(0.21%)
Pension Liability
£0m
Enterprise Value
£18.2m
Market Cap
£38.5m
Latest PE (hist)
11.60
Div Yield
11.69

Latest News/RNS

(more news)
Date Source Announcement
10Dec19 16:31 RNS Dividend Timetable
10Dec19 07:00 RNS Preliminary Results
04Dec19 11:02 RNS Notification of Full Year Results
25Nov19 17:12 RNS Holding(s) in Company
19Nov19 16:41 RNS Second Price Monitoring Extn
19Nov19 16:35 RNS Price Monitoring Extension
30Jul19 09:25 RNS Director/PDMR Shareholding
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  • 14 Jan 20
Boku - Payments profits support Identity growth

Boku’s FY19 trading update confirmed that it met consensus expectations for revenue and EBITDA, albeit aided by recognition of one-off revenues of $3.2m in H2. The Payments business showed strong underlying revenue growth driving a 90% increase in adjusted EBITDA while the Identity business made progress in building out supply outside of the US. We continue to consider the Payments business as the engine for profits while we view the Identity business as a longer-term investment in growth.

Companies: Boku
  • 16 Jan 20
LIBERUM: Judges Scientific* - FY19E EPS beat

We increase our FY19E EPS by 4.7% to reflect an encouraging FY trading update from Judges. Our FY20E forecasts remain cautiously set and we think that the risks are to the upside as the year progresses.

Companies: Judges Scientific
  • 13 Jan 20
In line trading update

Augean has issued an in-line trading update highlighting strong trading in its final quarter and its expectation that it will report adjusted PBT for the year to December 2019 at least in line with market consensus of £18.4m. We make no adjustment to our forecasts at this time.

Companies: Augean
  • 08 Jan 20
UK Housebuilding Sector: 2020 vision: Sharpness and clarity for industry prospects

For fighter pilots, it is a minimum requirement. But having 20/20 ‘visual acuity’ (correct term) does not necessarily mean you have perfect vision (as convention assumes); instead, it indicates sharpness and clarity of vision at a distance. It is measured by a Snellen Chart, which displays letters of progressively smaller size and whereby 20/20 means that the test subject sees the same line of letters at 20 feet that a person with normal vision sees at 20 feet (or 6 metres; but 6/6 simply didn’t catch on).

Companies: ABBY BDEV BWY BKG BVS CRN CSP CRST GLE GLV INL MCS PSN RDW SPR TW/ WJG

  • 16 Jan 20
WHI Morning Comment: Judges Scientific (JDG) - Trading update – small upgrades to FY2019E and FY2020E

Judges Scientific, a group involved in the buy and build of scientific instrument businesses, has released a positive FY2019 update this morning. Aided by favourable exchange rates (critical for an export led business), leading to healthy demand, we uplift our FY2019E revenue estimates by 2.1% to £83.2m (from £81.2m), and against a slightly richer margin profile, uplift our adjusted PBT and EPS estimates by 5.0% to £17.3m and 215.5p respectively (from £16.4m and 204.8p). Our FY2019 estimates therefore look for a YoY increase in revenue of 6.9%, and with underlying margins improving, adjusted PBT increasing an impressive 20.8% YoY. FY2020 adjusted PBT and EPS is raised by 3% to £17.4m and 217p (from £16.8m and 210.p).

Companies: Judges Scientific
  • 14 Jan 20
Year-end trading update: weaker Q4 trading

The company has announced its year-end trading update, which highlights that Q4 trading has been softer than expected, resulting in a lower revenue and profit than forecast. Cash flow management has been in line with expectations with a significant reduction in stock and year-end net debt in line with forecast. We therefore cut our 2019 EPS forecast by 18.2% to 12.3p, followed by 16.7% to 13.9p in 2020. As a consequence, we cut our price target from 180p to 151p, in line with earnings still targeting a P/E of 10.8x for 2020. The shares will naturally respond to this disappointing update, but continue to trade at a very low valuation compared with the industry peer group.

Companies: Flowtech Fluidpower
  • 13 Jan 20
XP Power - Demand acceleration through Q419

While previously reported issues with an ERP upgrade limited the amount of product XP could ship in Q419, revenues for FY19 came in ahead of our forecast and XP closed the year with a strong order book after an acceleration in demand across all markets in December. We have revised our forecasts to reflect both factors, with normalised EPS upgrades of 4.3% in FY19 and 1.5% in FY20.

Companies: XP Power
  • 10 Sep 19
Cenkos: TP Group Plc - Order Book Growth

The combination of the strategic acquisition of Sapienza and robust organic growth has resulted in a strong set of H1/19A numbers. Revenue and the order book increased to £26.0m (+63% YoY) and £78.9m (+63% from FY18A year-end) respectively, with the latter now covering 94% of our FY19E revenue forecasts. We expect this momentum to continue and note that the Group is on track to meet our FY19E forecasts.

Companies: TP Group
  • 10 Jan 20
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 includes everyUK quoted company. The ONS samples share registers every two years; our study uses six-monthly data points. Our survey also extends to shareholders on NEX; the ONS does not.

Companies: AVO AGY ARBB BUR CMH CLIG DNL FLTA GDR MCL NSF PCA PIN PHP RECI RMDL SCE SIXH SHED VTA

  • 08 Jan 20
Excellent Q4’19 and record orderbook

The birth of a new decade spawns an abundance of investment opportunities, not least due to the seismic shift towards ‘Industry 4.0’ (see below). Indeed, despite lacklustre global manufacturing PMIs, this migration towards smart-technologies, improved product quality, lower cost and e-commerce is triggering one of the biggest upgrade cycles in the history of supply chain management, data analysis and system integration.

Companies: Mpac
  • 14 Jan 20
Weak UK economy in Q4 impacts trading

Yesterday’s UK GDP data highlighted the weakness experienced in the economy during calendar Q4. This has been reflected in the trading patterns at Flowtech with weaker than anticipated demand leading to a 10% reduction in organic revenue in Q4. For the year just ended, to Dec 2019, revenue is expected to be c. £112.4m (prev. £115.0m) leading to Profit Before Tax of £9.0m (prev. £10.8m). Importantly, the net debt estimate is better than anticipated at £16.6m (ZC estimate £17.0m) as the operational improvements in working capital reduce gearing. The revision to the FY19 outcome is rolled through into FY20 and FY21 and, as previously assumed, are based on the conservative assumption of a small amount of cost savings to come through but little revenue growth. Despite the revision to forecasts, the valuation of c. 10.0x FY20 earnings is not stretched and Flowtech yields an attractive 5.5%.

Companies: Flowtech Fluidpower
  • 16 Jan 20
LIBERUM: Kier Group - Reassuringly in-line statement

Kier has issued an unscheduled trading statement that guides to trading in line and we therefore leave our estimates unchanged. We introduce estimates for H1 2020, when we assume a 40% weighting of PBT to H1.

Companies: Kier Group
  • 16 Jan 20
Q4/2019 Trading Update

Capital Drilling (LSE: CAPD) this morning provided its Q4/2019 trading update and its unaudited FY/2019 consolidated trading update. Capital achieved full year revenues of US$114.8 million, at the mid-point of US$110-120 million guidance. Revenues for the quarter were broadly in line with our expectations. Lower ARPOR due to greater proportion of exploration contracts and single-shift operations was offset by higher utilisation rates. Using this updated revenue figure, we now estimate EBITDA of US$26.6 million for FY2019, a margin of 23%, and profit after tax of US$9.8 million.

Companies: Capital Drilling
  • 14 Jan 20
Gateley

FY20 Interim results – First look

Companies: Gateley
  • 14 Nov 19
Evolving investment case - the next phase

While the FY20 interims are in-line, this does not tell the whole story with the investment case for Volex evolving away from the recovery mode of the last few years to a growth business which now focuses on cash generative, higher margin customers in new markets. The business is substantially de-risked with the top three customers now accounting for 25% of revenues – down from 47% in FY15 and when combined with a re-iteration of our PBT growth forecast of 47% for FY20, an upgrade to our expected net cash estimate from US$17m to US$23m at March 2020, a restored dividend and with it trading on a FY20 PE rating of just 10x, we re-iterate our buy recommendation with a price target of 160p.

Companies: Volex