Accrol has announced profits will come in line with
expectations for FY’21. There are some moving parts with revenues disrupted by
lockdown 3.0 but a significant increase to gross margins has mitigated this
one-off impact. The discounter segment is recovering as restrictions ease and
Accrol’s share within the market is now 16%, compared to 13% in FY20. Debt has
fallen again, the group has committed to a return to dividends and the
integration of the two M&A deals is ahead of expectations.
Companies: Accrol Group Holdings plc
Accrol has announced a trading update today. While pre-flagged input cost inflation and lower LFL YOY volumes (due to the unwinding of panic buying in the early stages of the pandemic) present near term headwinds, better than anticipated acquisition synergies and improved operating efficiencies are offsetting this, with the Group continuing to win market share.
Wickes to demerge from Travis Perkins and list on the Main Market. Expected 28 April. Advance Energy to complete an RTO on AIM indirectly acquiring up to 50% of Carnarvon Petroleum Timor which holds a 100 per cent. working interest and is the contractor under the Buffalo PSC, offshore Timor-Leste. Carnarvon Petroleum Timor is a subsidiary of ASX listed company, Carnarvon Petroleum Limited. The net proceeds of the Placing of approximately £20.01m (approximately US$27.51mm) will be used to fund
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In line with Accrol’s strategy to diversify from tissues into personal hygiene and household products categories, Accrol has acquired Flint, North Wales based wet wipes and facial tissue manufacturer John Dale Limited for £3.9m in cash, valuing the business at a 6.5x EV/EBITDA multiple. With significant available slack capacity in the acquired business, Accrol can exploit opportunities to cross sell the products to the Group’s customers, and build scale without the need for substantial capex. Th
Accrol has announced the acquisition of wet wipes manufacture John Dale, providing an established and scalable platform on which to enter this high growth and complementary segment of the tissue market.
A very solid 1H’21 saw gross margins expand 410bps and EBITDA margin expanded to 8.6% (from 4.9%), while working capital improvements aided cash flow generation as the company secured better terms with both creditors and debtors. The Group is fully on track to deliver earnings for FY’21E at least in line with market expectations. FY’21E net debt is expected to be below current market expectations, even after the reinstatement of the dividend with FY’21 results. The group are 7-weeks into the LTC
Accrol has delivered strong H1 results, with underlying EBITDA +69% YOY driven by stronger than expected gross margins as mix benefits continue to come through. We maintain earnings forecasts for now, albeit believe these to be well underpinned by margin improvements, synergies and growth. We believe Accrol is well positioned to emerge as a £35-40m EBITDA business over the medium term, in what we see as an exciting period for the Group.
Looking Ahead At The Next Week
The LTC acquisition is an excellent strategic fit for Accrol, bringing with it complementary new customers, the advantages of scale, synergies in distribution costs, spare capacity to target major new business, and with the deal structured at attractive financial terms generates over 10% EPS accretion for the company. If recent contract wins deliver what we hope, then this accretion on our bull-case rises to c.20% in FY’22. This deal demonstrates the ambition of the Accrol Group to grow into a m
We believe Accrol’s acquisition of LTC represents a transformational transaction which the potential to consolidate the Group’s leading position in the private label tissue market to c.30% share. On completion of the deal, the Group’s combined customer base will be stronger and broader with a step change in capacity to further accelerate its already impressive growth which continues to outpace the market. We estimate the acquisition to be 14.2% EPS enhancing in FY22E the first full year of owner
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boohoo Group has announced solid Q1 FY22 trading with Group revenue +32% YOY ahead of ZC forecasts (+25%) and consensus expectations (+28%), driven by strong momentum in key markets of the UK (+50% YOY) and USA (+43% YOY) despite tough PY comps (Q1 FY21 +45% YOY).
Companies: boohoo group Plc
FY21 underlying loss before tax of £59.2m was better than our forecast £79.9m, driven by higher revenue (stores) and a better gross margin. Year-end net cash (pre-reported) of £66.7m was well ahead of our forecast of £7.1m this time last year. We leave our profit forecasts unchanged, but the shape alters with lower sales and a higher gross margin as TED’s full price stance begins to kick-in supported by the new product offer. Management has delivered impressively on the Year 1 targets set out in
Companies: Ted Baker PLC
Tern plc* (TERN.L, 23.75p/£78.5m) | CAP-XX Ltd* (CPX.L, 8.15p/£36.0m) | MTI Wireless Edge Ltd* (MWE.L, 64.5p/£57.1m) | Newmark Security plc* (NWT.L, 1.2p/£5.6m) | Blackbird plc* (BIRD.L, 32.0p/£107.9m)
Companies: TERN CPX MWE NWT BIRD
IG Design Group delivered another year of profit growth, at both adjusted and reported levels, despite the vicissitudes of the coronavirus pandemic. Net cash at the period end rose by 46% to $76.5m, with the Group’s unerring focus on cash management translating into average leverage of 0.0x (from 0.9x in FY20). The total dividend for the year was maintained at 8.75p, reflecting this robust cash generation. The Group has unveiled both its new Growth Plan and its Design Group Sustainability Framew
Companies: IG Design Group plc
Frontier have delivered record revenues for FY21 that were slightly ahead of our expectations, thanks to a strong performance across all four franchises and despite the challenges that faced the recent Odyssey launch. We now know that the FY22 upcoming licensed IP game will be Jurassic World Evolution 2, a sequel to Frontier’s biggest-selling game to date that will launch later this year. Simultaneously the Board are providing prudent revenue guidance which assumes that the first F1 management t
Companies: Frontier Developments Plc
Strong trading YTD; outlook cautiously optimistic
Companies: Team17 Group PLC
The UK market showed a continued recovery in the first quarter albeit the indices are still well short of their all-time peaks, unlike many of their international peers. The FTSE 100 has risen by 1,186 points (21.4%) since the end of October and the FTSE 250 by 4,304 points (25.0%). The comparable performance since the start of the year is less spectacular- the FTSE 100 has risen by 253 points (3.9%) and the FTSE 250 has risen by 1,070 points (5.0%). The factors behind the sustained rally are fa
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AVO’s goal is to deliver an affordable and novel PT system, called LIGHT, based on state-of-the-art technology developed originally at the world-renowned CERN. Over the past two years, important technical milestones have significantly derisked the project. Now, AVO is working on the verification and validation phase, prior to LIGHT being used on the first patients to support CE marking. In its recent technical update, the company highlighted progress made over the past three months towards a ful
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Catena Group (CTNA.L) to complete reverse takeover and be renamed Insig AI and is acquiring the remaining shares of Insight Capital Partners. Insight, which is based in the UK, is a data science and machine learning solutions company that provides bespoke web-based applications, advanced analytical tools and modern technology infrastructure to make machine learning accessible to investment professionals. Insight has developed five products specifically aimed at accelerating an asset manager's d
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CAP-XX, the leading designer and manufacturer of supercapacitors and energy management systems, has announce an unaudited pre-close trading update for the year to 30 June 2021 which is in line with the expectations from our 10 May 2021 Initiation note.
Revenue for the year ending 30 June 2021 of A$4.1m to A$4.2m is up 15% YoY and in line with our forecast of A$4.1m. Unadjusted EBITDA loss of approximately A$2.1m to A$2.2m also in line with our forecast of A$2.1m. Importantly the company notes i
Companies: CAP-XX Limited
We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector (henceforth UK gaming). Our stock-picking bias is towards companies with strong growth, profitability and cash conversion, consistent with our Arden Technology Thematic Framework. Considering company-level fundamentals we believe exposure to varying growth themes will produce dispersion, creating opportunities to identify relative winne
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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
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A number of REITs have the ability to thrive in current market conditions and thereafter. Not only do they hold assets that will remain in strong demand, but they have focus and transparency. The leases and underlying rents are structured in a manner to provide long visibility, growth and security. Hardman & Co defined an investment universe of REITs that we considered provided security and “safer harbours”. We introduced this universe with our report published in March 2019: “Secure income” REI
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Frasers is evolving into a diversified ‘house of brands’, as its elevation strategy drives an increasingly premium offer across fashion, sports and lifestyle. We forecast a +10.6% 3-year EBITDA CAGR supported by a growing addressable market, overlapping customer demographics and operating efficiencies as recent M&A is integrated. Our £5.50 TP sits prudently vs. the £10 target, within the next four years, in the group’s new employee bonus scheme. Strong FCF and the freehold property estate both p
Companies: Frasers Group PLC
Victoria has announced that following continued strong operating performance and favourable market conditions, it intends to offer €350m in aggregate principal amount of Senior Secured Notes due 2026. The net proceeds will be used for general corporate purposes, in particular acquisitions, and partial refinancing of existing 2024 Senior Secured Notes that will improve the maturity profile of the Group’s debt. Further detail is also provided in relation to trading in Q3 which was noted to be a re
Companies: Victoria PLC