Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on HILTON FOOD GROUP PLC. We currently have 26 research reports from 1 professional analysts.
|09Mar17 12:02||RNS||Price Monitoring Extension|
|01Mar17 17:05||RNS||Director Declaration|
|23Feb17 13:01||RNS||Holding(s) in Company|
|01Feb17 12:52||RNS||Total Voting Rights|
|17Jan17 17:48||RNS||Block listing Interim Review|
|13Jan17 16:36||RNS||Holding(s) in Company|
|13Jan17 11:54||RNS||Director/PDMR Shareholding|
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HILTON FOOD GROUP PLC
HILTON FOOD GROUP PLC
FY16 pre-close +ve surprise: Raising FY16, 17, 18 PBT c.1%, 4% and 6%
12 Jan 17
Today’s slightly better-than-expected FY16 pre-close trading statement prompts us to raise our FY16 PBT estimate by c.1%, reflecting the combination of (1) growth in several of HFG’s key markets, (2) strong overall operating performance, and (3) favourable fx translational benefits (recalling that 62% of FY15 sales were ex-UK). To reflect the positive profit contribution impact of the Portuguese j/v agreement signed on January 4th, the j/v income line is boosted by €1.5m (c.£1.3m) and €2.5m (c.£2.2m) in FY17 and FY18 respectively, representing upgrades of c.4% and c.6%. Once operating at full capacity utilisation, the j/v could well add €3m (c.£2.6m) in FY19. To reflect (1) our increased FY16-FY18 forecasts, (2) current peer EV/EBITDA valuation multiples, and (3) our view that HFG now deserves to trade at a premium to the peer group in view of its impressively strong financial track record (i.e. FY06-FY16 since IPO) for organic and investment-led profitable growth, combined with an array of emerging, highly promising initiatives (see our note “Start of a new chapter of growth” published on October 4th) to expand the scale and scope of HFG’s core business, we raise our TP to 805p (previously 755p). Maintain BUY.
Significant j/v confirmed with Sonae, Portugal; HFG’s 15th country
04 Jan 17
Consistent with a highly-successful, critical strand of HFG’s stated growth strategy (i.e. entering new territories with new customers), HFG has signed a 50/50 j/v with Sonae, Portugal’s leading food retailer, to redevelop and operate Sonae’s existing sourcing/packing facilities to supply c.750 Sonae group stores with a range of packaged meats. We view today’s development, following an initial c.6 month co-operation period, as significant and encouraging on multiple levels; (1) the Portuguese facility is similar in size to HFG’s current third largest plant near Melbourne, Australia in terms of annual tonnage of c.50,000; (2) management states that it expects the redeveloped facility, post an initial €22m investment by the j/v, to be earnings enhancing in FY17 [we estimate that HFG’s share of profits could be as much as €3m in FY19 i.e. c.8% of our forecasted FY16 PBT]; (3) the Portuguese j/v is similar in structure to that of the proven j/v operational arrangement that HFG has had in Australia since 2013, thereby giving us comfort that HFG can capture its fair share of the financial rewards in a risk-managed fashion; and (4) today’s move to a formal j/v has come well within the 6-9 month period guided to when the co-operation agreement was first announced in July 2016, suggesting to us that HFG’s working relationship with Sonae has been highly successful so far. In short, we think the stockmarket will welcome HFG allocating its surplus cash to develop its core business with such a leading retail client, following on so soon from December’s announcement that HFG will invest A$115m to expand its packing capability in Australia. We maintain BUY.
New packing facility; Highly significant for underpinning future growth
06 Dec 16
HFG has announced plans to expand its packing capability in Australia, by constructing (at an expected investment cost of A$115m financed through bank facilities) a new meat processing facility in Queensland, in order to supply Woolworths, the leading grocery retailer in Australia. This is a highly significant development as the new Queensland plant, alongside HFG’s two existing dedicated retail packed meat facilities in Melbourne and Bunbury (both operated as a joint venture with Woolworths) should mean that HFG supplies the bulk of Woolworth’s c.1,000 stores with their red meat needs over time. In short, this development should underpin growth at HFG for many years to come from 2020 onwards, which, in turn, should result in a higher and more stable earnings stream over time, supporting a continued rerating of HFG’s valuation multiple, in our view. We reiterate our BUY.
Panmure Morning Note 03-11-2016
03 Nov 16
Today’s trading update (18th July 2016 to date) will reassure the stock market, likely further comforted by HFG’s frequent financial calendar trading updates given the current backdrop of quite heightened economic and political uncertainty. Management comments that HFG “continues to trade in line with the Board’s expectations”. This, in turn, reflects a continuation of the established overall positive trading patterns seen in the H1FY16 (January 4th to July 17th) results published on September 13th. We reiterate our BUY.
Panmure Morning Note 04-10-2016
04 Oct 16
We think, over the medium-term, investors will look back at FY2016 as the start of a new distinctive chapter of growth for HFG, predicated on the refinement of the already potent HFG investment thesis. We use the recent strong H1FY16 results as a good opportunity to reflect on the long-term implications of a number of initiatives and developments, over and beyond the well-understood and wellexecuted focus on progressively and profitably expanding the scale and scope of HFG’s core business. Our positive thesis on the stock is predicated mainly on the company’s under-appreciated long-term, value-added growth strategy, which will result in a higher and more stable earnings stream over time, supporting a continued rerating of HFG such that it should sit at the top end of the peer range, in our view. Having reflected further on H1FY16 results, and updated our relative valuation exercise, we increase our TP to 755p (715p), giving 22% upside
Panmure Morning Note 13-09-2016
13 Sep 16
H1FY16’s PBT of £16.7m (+26.7% y/y) is ahead of our and consensus expectations of £16m. Our FY16 forecasts are unchanged for now whilst we note the pleasing 12.2% interim dividend increase to 4.6p. These interims impress on three key levels; (1) HFG’s underlying trading performance remains strong despite the context of a dynamic and challenging grocery retailing backdrop, combined with macro uncertainty and attendant currency volatility; (2) the first real evidence of the important financial benefit of HFG’s significant capacity investment in the UK and expansion in Australia; and (3) the strong momentum running throughout the business. We reiterate our BUY.
Eyeing Up Opportunity
24 Mar 17
Produce Investment’s (PIL LN, BUY, T/P 210p) interim profits were well beneath inferred market expectations as delays in the recovery of ex-farm potato prices coincided with unusual costs associated with the company’s implementation of a new ERP system. Interim EBIT fell to £0.2m from £3.4m last year.
Small Cap Breakfast
23 Mar 17
K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march.
N+1 Singer - Morning Song 28-03-2017
28 Mar 17
A G Barr (BAG LN) Share buybacks the main news around FY17 finals | Churchill China (CHH LN) An excellent set of 2016 results and more upgrades | Ergomed (ERGO LN) FY results show strong Services growth; Phase III Zoptrex® data ahead | Instem (INS LN) Investment to accelerate growth trajectory | Severfield (SFR LN) Strong H2 drives upgrades; CEO temporarily steps down due to ill health | Summit Therapeutics (SUMM LN) Strengthening the data package: planned extension of PhaseOut DMD | T. Clarke (CTO LN) Strong conclusion to FY16, record order book
Hardman & Co Monthly: March 2017
01 Mar 17
Most major pharmaceutical companies have reported results for 2016 during the last few weeks, providing the opportunity to update our industry statistics. For an industry that requires a long investment cycle, decisions made many years ago have consequences on current financial performance. Being able to look at performance over 20 years highlights how strategic decisions have panned out.
Small Cap Breakfast
21 Mar 17
First Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march. Tufton Oceanic Assets- The Company intends to invest in a diversified portfolio of second hand commercial sea-going vessels where the Investment Manager believes that an attractive opportunity exists in shipping. $150m raise. Admission 3 April.