The half year pre-close trading update six weeks ago led to a c. 20% increase in ZC FY21 profit expectations. Today’s interim results confirm that trading has remained strong and is on course to meet consensus FY21 expectations. Revenue is 13% ahead of FY19 with both divisions recovering strongly. Margin has come under pressure due to raw material cost input pressures and is down 70bps on the 6.7% achieved in H1 ’19. With supply chains remaining under pressure, it’s unlikely that we will see any
Companies: Epwin Group PLC
Epwin continues to produce the goods. Its FY21F interims this morning show continued strong RMI (Repair/Maintenance/Improvement) demand and good progress on margins, despite the headwind of abnormally high raw material costs. We retain our forecasts (which were materially upgraded on 28 July). Longer term, we like both the potential for margin expansion and the likelihood of value accretive acquisitions. Epwin trades at some of the lowest valuation multiples in the Building Materials sector (FY2
Having previously noted 9% revenue progress for the first four months of FY21 (versus FY19), the rate improved to 13% for H121 as a whole, despite some challenges due to strong demand levels. With positive cash generation also, Epwin has had a good start to FY21 and we have increased our PBT estimates for the year by 20% to reflect this momentum.
Epwin seems to exist under the radar screen. The stock trades at some of the lowest valuation multiples in the sector (FY22F PER = 11.2x, DY = 4.4%) and, for the second time in 3 months, we have significantly upgraded our earnings forecasts due to continued strength in RMI (Repair/ Maintenance/ Improvement) demand and robust margin development. House Stock.
Since Epwin reintroduced guidance back into the market in September 2020 demand has consistently exceeded expectations. This has continued in H1 FY21 with today’s statement indicating that profit before tax for the current will be materially ahead of current expectations. The strength of trading in the first seven months of the year lead to an 11% upgrade in revenue and a 17% increase in profitability to £12.9m (prev. £11.0m). Raw material and cost input pressures lead to more conservative incre
Epwin has entered FY21 with positive revenue momentum, having successfully navigated some extreme market conditions in the prior year. The company has built a solid base from which to grow volumes, and a positive cash generation profile provides headroom to invest organically and via acquisition as post-pandemic markets begin to normalise.
As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
Companies: AMYT ARBB ARW BAG BEG BONH BWNG CWK DNK EML EPWN FBD FA/ GPH GSF GNC HUW IGC INSE KAPE KP2 MMAG NRR NESF OTMP ROL RUA SEN SUR TON TOU TXP TGL VLS WINK
Today's AGM statement indicates trading has remained strong since Epwin last updated the market at its FY20 results (15th April). Revenue year to date has increased 56% against the same time in FY20. Against FY19, a more relevant benchmark, it is up 9%. The RMI market has remained strong and anecdotal evidence suggest the New Build and Social markets are recovering, providing confidence for H2 as comparators get more difficult. Supply issues and raw material price increases continue to be an iss
Epwin reported FY20 results this morning, which were ahead of our forecasts. Management provided a confident outlook statement and we have increased FY21F EPS by 10% to 6.7p and FY22F EPS by 12% to 9.4p. Epwin is one of the lowest-rated stocks in the building materials universe: the stock trades on a PER of 10.3x and offers a dividend yield of 4.8% (both FY22F). This is despite forecast EPS growth of 43% between FY21F and FY23F. House Stock
Today’s FY20 results are better than the guidance provided in the pre-close trading update (Dec 16th, 2020). The strong trading alluded to in that statement continued through the year end into Q1 2021. The better than expected trading leads to an upgrade to estimates in FY21, pre tax increases c. 12%, and new forecasts are introduced for FY22 and FY23.
Baths, boulders, bricks, doors, drainpipes, rocks, shower trays, taps, tiles and windows – all are in demand
In the last fortnight, we have surrendered some of the notable progress made over the last three months. That said, the optimism displayed by markets, driven by progress with vaccines and their rollout, persists. The recent direction of markets has been set by volatility in US markets, driven by specific retail market developments. Domestically, we have seen a broadly upbeat procession of results and trading updates/outlooks have, generally, been at least in line. The share price reactions have
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The forthcoming UN Climate Change Conference (known as COP26) should result in an acceleration of governments’ actions to reduce CO2 emissions. This will result in an acceleration of customer end-user adoption rates which would be positive for AFC Energy which is developing zero-emission solutions for the EV-charging, construction, data centre and marine markets.
Companies: AFC Energy plc
Companies: SigmaRoc Plc
Longspur Research and Radnor Capital Partners have launched the Active Net Zero Clean Energy Index to allow investors to measure the performance of companies actively enabling climate solutions.The key emphasis is on the word “active”. This pan-European index eliminates greenwashing by penalising fossil fuel activities and focuses on actual achievement and positive contribution, rather than promises for the future. Our proprietary selection methodology is systematic, rules based and quantifiable
Companies: DRX ITM PHE SAE SIT STRLNG VLS
We see the UK Government’s Net Zero Strategy as being overall helpful but not especially definitive. Amongst our coverage group, Drax Group (DRX LN) and Velocys (VLS LN) benefit from the Humberside CCS cluster prioritisation and Velocys from SAF support. The amount of renewables is likely to boost the need for flexibility solutions where Drax, Gore Street (GSF LN) and SIMEC Atlantis (SAE LN) can benefit. Hydrogen companies ITM (ITM LN) and Powerhouse Energy (PHE LN) are likely to find support. T
Companies: ADN DRX GSF ITM NESF PHE SAE SIT STRLNG TLG VLS
Oil posted the longest stretch of weekly advances since 2015 as OPEC+ producers only modestly supply the market and as US crude supplies shrink.
Crude futures rose 1.5% Friday in New York, up for a ninth straight week. President Joe Biden said Thursday night that Americans should expect high gasoline prices to continue into next year because of supply being withheld by OPEC and other foreign oil producers. Stockpiles at the biggest US storage hub are draining to levels last seen when crude pr
Companies: FO 88E DEC EME GTC TRIN UOG WEN
Brent crude topped $85 a barrel in London for the first time since 2018, the latest milestone in a global energy crisis that has seen prices soar.
West Texas Intermediate for November settlement rose 97 cents to settle at $82.28 a barrel in New York.
Brent for December delivery added 86 cents to settle at $84.86 a barrel.
The global benchmark rose above the key level in intraday trading but did not settle above it on Friday. US crude futures posted an eighth straight weekly
The group continues to experience strong underlying market conditions, with some supply chain shortages and transport constraints causing price rises. These issues are not expected to improve in the short term, but the group is confident of progress and results are anticipated to be in line with expectations. No change to forecasts. We retain our price target of 315p, which still offers good upside despite the strong outperformance by the shares over the year. The shares remain attractive on a s
Companies: Alumasc Group plc
Tungsten West (TUN.L) has joined AIM. Tungsten West is the 100% owner and operator of the historical Hemerdon tungsten and tin mine located near Plymouth in southern Devon. Hemerdon represents the world's third largest tungsten mineral resource, with a JORC (2012) compliant Mineral Resource Estimate of approximately 325Mt at 0.12 WO3. Capital raised on Admission: £39m. Anticipated Mkt Cap: £106.2m.
Future Metals NL (ASX:FME, FME.L) (formerly named Red Emperor Resources NL) had joined AIM
Companies: SOLI RBD ALU ATQT BBI CWR DRV ORCP WATR
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Arrow Exploration Corp. (AIM: AXL ; TSXV: AXL) , the oil and gas exploration and production company, has conditionally raised approximately £8.8m and is due to complete its dual listing on AIM on 25 Oct. Market cap c£13.1m.
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz.
Companies: ZYT CIC DMTR GILD LMS MMAG PYC SMRT SBI
LTHM announced the acquisition of the entire share capital of Sarcon (No 155) Ltd (“Sarcon”) and its subsidiary companies for ~£4.0m +/- a net asset adjustment.
Companies: James Latham Plc
Companies: DeepMatter Group Plc
eEnergy has increased its ownership of eEnergy Insights Ltd (EIL) from 37.5% to 51%. EIL is the entity holding the Group’s MY ZeERO smart metering and analytics platform, which we consider an important differentiator for the Group. EIL has completed the development of its next generation of intelligent smart meters, which are now ready for commercial launch. eEnergy has placed an order for a number of these meters, which are expected to be rolled out in the coming months. Management is said to b
Companies: eEnergy Group PLC
Arrow Exploration Corp. (AIM:AXL; TSXV:AXL), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, has joined AIM, alongside a fundraise of approximately £8.8m.
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ATOM headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas com
Companies: SPA ECR KP2 SAR SYM
SIMEC Atlantis Energy have raised £2.6m at a share price of 2.5p in a fresh equity raise, representing 16% of the enlarged share capital.
Companies: SIMEC Atlantis Energy Ltd.