M.P. Evans - Tougher year but growing cashflow outlook drives optionality

FY23 results are much in line with overall expectations, helped by a much stronger H2 production and higher purchases of independent crops helping to fill the group’s rising mill capacity. A marginally higher than expected average CPO price mill-gate price of $729/tonne drove the revenue outperformance, but the change in production mix impacted gross margins while slightly higher than anticipated interest, tax and minority charges resulted in EBIT, PBT (Adj.) and EPS (Adj.) just below our foreca

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: BARC, IHG, ANTO, BHP, PLUS, PDL, AAZ, & MPE.

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: ORIT, FOUR, ROO, WIN, DFS, MPE, & AVCT.

Morning Note – 19 January 2024

Morning Note – 11 December 2023

M.P. Evans - Acquisition complete – New forecasts published

We release new FY24 and FY25 forecasts, post the completion of the two packages of land in East Kalimantan on 27 November. Their impact is marginally earnings negative in FY24E with the acquisition benefits flowing from FY26E and we expect FCF and profits to accelerate over the next five years, at least driven by scale benefits and better management of the maturing plantations. Finally, we believe the land value will rise steadily in-line with yield improvements. We have increased our mill gate

Morning Note – 11 September 2023

M.P. Evans - Big strides on strategy, good interims, no change to forecasts

There has been some seasonality that has affected H1 crops and production performance, but production has rebounded strongly in July and August, the CPO price has declined slower than we anticipated, and fertiliser costs have fallen. Consequently, we leave our forecasts unchanged. It’s been an exceptional couple of years for profitability and FCF generation for MP Evans; this cashflow is being put to good use and is funding an ongoing programme of share buy-backs and acquisitions, with two annou

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: BAT, MRO, GNS, CURY, GRID, HLT, MPE, EMIS, & ANIC.

Morning Note – 7 September 2023

M.P. Evans - Second land acquisition: again, right strategy, great price

The acquisition of new planted land in East Kalimantan is consistent with stated strategy and is another low-risk acquisition at a great price. Shorter term, MP Evans will improve its productivity; longer term the acquisitions add critical mass to Kota Bangun and gives a platform for growth further north. The acquisition price of US$60m, is excellent, equivalent to just US$9.0k per hectare, and we expect this land value to increase as productivity improves and as scale benefits kick-in. We leave

Carr's Group - An enhanced value creation strategy

Carr’s Group has announced an updated strategy that offers the potential for value realisation and creation from a number of avenues. These include: value realisation of the Engineering Division; the ability to significantly reduce central costs; and longer-term value creation in the Agriculture Division as a focused business with recovery potential and a strategy to leverage its strong market positions for growth.

Anpario+ (ANP, House Stock at 230p) - FY24F upgrades - recovery play

Greggs - Showing us how it's done

The second full year of Greggs’ five-year growth plan to double revenue by FY26 should be marked down as very successful, especially so given the challenging external environment. Unlike many consumer-facing companies, high selling price inflation was accompanied by volume growth, leading to good market share gains. The consumer is responding well to new initiatives to grow revenue in new dayparts and digital channels. Profitability was well-managed with better recovery of input cost inflation t

Hardman & Co Healthcare Index: 2023 – Capital demands dent performance

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (

Initial Equity Trading Comments - 16 May 2023

Ocean Harvest Technology - Harvesting the power of seaweed

Ocean Harvest Technology (OHT), based in the UK, produces animal feed additives products using a composite of blended seaweed. Its patented products have been shown to enhance growth rates in livestock, increase feed efficiency and improve egg quality and quantity for laying poultry. As OHT operates in an attractive market, there is significant potential for its proprietary technology to drive volume growth as awareness of its product benefits increases, along with improving financials.

SP Angel Morning View: Risk sentiment pulls back on geopolitical tensions and concerns over Chinese property market

Hybridan Small Cap Feast - 20 Mar 24

20th March 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment object

Initial Equity Trading Comments - 20 March 2024

Premier Foods+ (PFD, House Stock, 140p) - Strong trading & share gains

Premier Foods+ (PFD, House Stock, 139p) - Pension cash contributions suspended

Greencore Group+ (GNC, House Stock, 117p) - Delivering on margin rebuild plans

Cake Box Holdings+ (CBOX, House Stock at 161p) - Robust trading - a modest upgrade

REIG JOFRE: coverage dropped

We have dropped our coverage of Reig Jofre owing to internal reorganisation. Our rating, target price and estimates are therefore no longer valid.

Morning Note – 23 January 2024