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  • 04 Feb 20
Significant pick-up in January orders after slow start to year

Today’s AGM statement repeats the key themes from the time of the prelims in December, namely a slow start to the year with a more encouraging outlook for H2. Encouragingly, after another two months of relatively slow trading, order intake in January has seen a significant improvement compared to the prior year. This is likely to benefit H2 rather than the balance of H1. The prelims also highlighted a positive trend in enquiries for new projects, an encouraging indicator for medium term prospects. We make no changes to our revenue or profit forecasts at this stage, whilst noting the likelihood of a significant second half weighting. There is, as yet, no further update on the future dividend policy. As a reminder, this is being reviewed as the Board seeks to establish the appropriate level, balancing lower earnings against the significant net cash position. For now, we reduce the current year dividend by half to 11.4p, yielding close to 6%, pending the conclusion of the Board’s review.

Companies: Zytronic
  • 04 Feb 20
Small Cap Feast

Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m. The Group's key producing assets, the Kagem emerald mine in Zambia (believed to be the world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the Faberge brand. Due Valentines Day 2020. The Proof Of Trust has announced its intention to list on the Standard Market. The Blockchain based business, owns patents to a protocol which facilitates dispute resolution based upon smart contract disputes. Transaction details TBC.Ninety One –proposed demerger and public listing of Investec’s global asset management business on LSE and JSE. 30 Sep 2019 AUM £121bn. Sale of existing shares. Expected free float of >60%. Due 16 march. Cabot Square—Closed ended investment fund focussed on alternative assets and asset manager. Looking to raise £200m. Will target investment opportunities that are expected to generate an attractive risk adjusted return and that can also make a positive ESG impact by focusing on some of the biggest challenges facing societies and economies. Due 14 Feb. Calisen Group. Potential Intention to Float. Owner and manager of essential energy infrastructure assets through its subsidiaries Calvin Capital and Lowri Beck . Consolidated FY Dec 18 revenue £162.1m and operating profit £25.4m. Raising up to £300m in primary plus partial vendor sale. Expected Admission February 2020. The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m. Due 28 February. Investment firm Nippon Active Value fund is seeking to raise up to £200m at an issue price of 100p per share via an IPO. The company aims to invest in a portfolio of quoted Japanese stocks with market capitalisations of up to $1bn. First day of dealings expected early February.Zapp Scooters, a developer and manufacturer of electric two-wheeled vehicles announced its intention to IPO on the NEX Exchange Growth Market. The Company intends to raise up to £3.5m. Admission is expected to occur on NEX in February 2020.

Companies: SECG MTW UPR ZYT HZD JAY TRX GLIF BEM K3C

  • 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

  • 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
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
Most popular equity research this week | 10 - 14 Dec

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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
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

  • 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

  • 18 May 18
Most popular equity research this week | 14 - 18 May

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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

Research, Charts & Company Announcements

Research Tree provides access to ongoing research coverage, media content and regulatory news on Zytronic. We currently have 38 research reports from 2 professional analysts.

Open
N/A
Range Today
N/A
52 Week
82.5/358p
Daily Volume
N/A
# Shares
16.0m
Daily Liquidity
(0.21%)
Pension Liability
£0m
Enterprise Value
£18.2m
Market Cap
£15.2m
Latest PE (hist)
11.60
Div Yield
11.69

Latest News/RNS

(more news)
Date Source Announcement
17Mar20 14:05 RNS Second Price Monitoring Extn
17Mar20 14:01 RNS Price Monitoring Extension
17Mar20 11:05 RNS Second Price Monitoring Extn
17Mar20 11:00 RNS Price Monitoring Extension
04Feb20 15:45 RNS Result of Annual General Meeting
04Feb20 07:00 RNS AGM Trading Update
10Dec19 16:31 RNS Dividend Timetable
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  • 01 Apr 20
Cenkos: RA International Group Plc -- Covid-19 delays but robustly positioned

RA's core business activity is the provision of remote site and mission critical life support services in many challenging locations around the world, often in very difficult circumstances. RA remains well placed to continue to operate successfully during this Covid-19 uncertainty though in recent days it has become clear that some customer projects will be delayed. With the timing of delivery of some contracts in 2020 uncertain we are temporarily withdrawing our 2020 forecast. With its rapid deployment capability, RA has coped well with contract delays before. Recent FY19 guidance has indicated revenue ahead of expectations, demonstrating a significant delivery of revenue during H2/19 vs H1/19. We remain Buyers given RA's demonstrably strong balance sheet, NGO, governmental and global corporation client base. Given its operating capabilities with long-term supply chain planning, we anticipate RA should quickly return to normal operating levels once the Covid-19 spread and resultant restrictions subside.

Companies: RA International
  • 01 Apr 20
Net cash position supports near term outlook

Today’s year end update highlights that FY20 trading was broadly in line with expectations. The Group has experienced a reduction in demand over the last week as a result of the implementation of more stringent lock down measures. In response, management has postponed all non-essential work, furloughed staff, and deferred 20% of the pay of employees who have not been furloughed, including management. These actions have materially reduced the monthly overhead. The update also confirms receipt of £16.8m of proceeds for the asset disposal, leaving the Group with a cash balance of £5.6m (pre-IFRS16) and no debt. We believe the Group is very well positioned to navigate the impact of COVID-19 and well placed to benefit from a more positive medium term outlook as the market backdrop improves.

Companies: Fulcrum Utility Services
  • 30 Mar 20
Cenkos: OPG Power Ventures Plc -- COVID-19 Update

The Indian Government and Reserve Bank of India has announced several relief packages to combat the adverse impacts of COVID-19 and the lockdown implemented last week. The lockdown encompasses all non-essential industries and has resulted in OPG's industrial customer shutting down operations and reducing their short-term demand levels. As a result of the current market uncertainty, we are withdrawing our forecasts from the market and move our recommendation to Under Review until macroeconomic conditions stabilise. We believe OPG's strong portfolio of customers from diverse industries will enable it to quickly revert to normal operating levels once the situation improves.

Companies: OPG Power Ventures
  • 01 Apr 20
Cenkos: Marlowe Plc -- Positive trading update

Marlowe has confirmed that trading for FY20E was in-line with market expectations. Whilst COVID-19 has meant that the company has been unable to enter certain sites, Marlowe expects this to largely be recovered once normal site access resumes, given the regulatory-driven nature of activities undertaken. The disposal of non-core assets is offset by EBITDA from recent bolt-ons. We reiterate our Buy recommendation.

Companies: Marlowe
  • 02 Apr 20
Business update

Flowtech has released an update post its Q1 detailing the impact from COVID-19 and the actions the Board has taken. Trading over the first three months of FY20 was in line with guidance provided in the February update. However, the impact of COVID-19 in the final few weeks indicate that trading in the early part of Q2 will be impacted. Currently revenue is 30% below expectations with the potential for a further deterioration. The statement indicates that the business is relatively resilient and that a sustained 35% fall in revenue would leave the business breakeven, on the assumption that Government support in the UK, Netherlands and the Republic of Ireland is utilised. Balance sheet liquidity is c. £9.4m on £25.0m facilities recently extended to June 2021. In addition, and in line with what many companies have announced, the final dividend for FY19, ZC estimate 4.3p, will be suspended to conserve cash. We leave forecasts in FY20 and FY21 unchanged for the time being, until there is greater clarity on trading.

Companies: Flowtech Fluidpower
  • 26 Mar 20
Somero Enterprises

Trading below its 5-year PE low, compelling entry point

Companies: Somero Enterprises
  • 03 Apr 20
XP Power - Healthcare customers boost Q1 book-to-bill

XP Power’s Q1 trading update confirmed that revenues increased 4% y o y/q o q and the Chinese facility has returned to normal staffing levels. Strong demand, mainly from healthcare customers, saw a 25% q o q increase in orders and a Q1 book-to-bill of 1.49x. Despite strong Q1 demand, the level of uncertainty surrounding both supply and demand for the rest of the year has caused XP to cancel its previously proposed Q419 dividend in order to preserve cash. We maintain our revenue forecasts, but factor in higher costs in FY20 and remove our Q419 and Q120 dividend estimates.

Companies: XP Power
  • 30 Mar 20
LIBERUM: Kier Group - COVID statement highlights essential services

Sites at Kier were paused for a day, but 80% have re-opened. The government is the key customer and is supportive.

Companies: Kier Group
  • 02 Apr 20
Norcros - FY20 outturn affected by COVID-19

The developing coronavirus pandemic has affected year-end trading for Norcros, with an indicated c £4m impact on EBIT. Operational shutdowns mirroring those of its customers have been undertaken and, as elsewhere, actions to preserve cash are being taken. The company has up to c £110m headroom under existing banking facilities representing a strong year end liquidity position. Forward guidance and our estimates for FY21 onwards have been withdrawn pending greater clarity on the scale and duration of the lockdown conditions being widely enacted currently.

Companies: Norcros
  • 03 Apr 20
Anexo Group*

Positive trading update

Companies: Anexo
  • 30 Mar 20
Macfarlane Group*

COVID-19 Update

Companies: Macfarlane Group
  • 01 Apr 20
THE MONTHLY April 2020


Companies: AVO AGY ARBB ARIX BUR CMH CLIG DNL GDR HAYD PCA PIN PHP RE/ RECI RMDL STX SHED VTA

  • 03 Apr 20
Cash remains king

Anexo’s trading update confirms that FY 2019E adjusted PBT will be in line with market expectations but that forward guidance is withdrawn given the current uncertainty over COVID-19 – although trading so far in FY-2020 looks relatively unaffected. Accordingly, we make no changes to our FY 2019E numbers and withdraw those for future years until the outlook is clearer. The timing of the FY 2019E results announcement will be confirmed in due course. Like others, Anexo is taking measures to preserve cash. Crucially, it continues to operate as an essential business under the current government restrictions. Staff are following the appropriate guidelines while providing a service to many key workers. Obviously, there is uncertainty over the long term impact of COVID-19 and therefore the focus on collections remains vital. In our view, the group remains in a strong position to drive cash out of its backlog of cases without necessarily committing further new working capital.

Companies: Anexo
  • 31 Mar 20
Cash rich, asset light

Xpediator has issued a COVID-19 related trading update. The key messages are reassuring: the business has a strong balance sheet and is asset light, trading is in line with internal budgets and the group has begun to see activity returning from its Chinese customers following an understandably difficult January and February. Some businesses are performing ahead of expectations, but where the reverse is true, early action is being taken on costs.

Companies: Xpediator
  • 01 Apr 20
Cenkos: Fulcrum Utility Services Ltd -- Progressing until coronavirus hit

There are signs of Fulcrum's recovery through H2/20E in today's update, but the UK's shutdown in response to Covid-19 has now put progression temporarily on hold. With the majority of projects currently delayed, trading over FY21E is likely to be adversely affected. The group's recent asset sale to ESP was opportunely timed, securing balance sheet strength to ride out the disruption. Given the current uncertainty and removal of FY21E guidance, we place our recommendation Under Review.

Companies: Fulcrum Utility Services