Time to focus on growth ambitions

PROGRESSIVE: IG Design Group: Strong profit growth, key strategy initiatives and quantified aspirations

IG Design Group delivered a 27% increase in adjusted PBT to $34.8m for H1 FY24 (to 30 September) with a significant reduction in net debt to $15.1m, as signposted in last month’s trading update. The adjusted operating profit margin was some 270bps higher at 8.6% (vs 5.9% in H1 FY23), the highest achieved since H1 FY20 ahead of the CSS acquisition. Management has provided more details on the key attributes and initiatives for its new growth-focused strategy. The group is on track to return to pre

Strong H124 profitability and growth plan ambitions

Hybridan Small Cap Feast 25-10-2023

Dish of the day Joiners: Cykel AI has joined the Access Segment of the AQSE Growth Market today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Announced ITF 2 October: Adsure Services, the holding company for TIAA Limited, a specialist business assurance provider operating across the Housing, Healthcare, Government, Education, Charities, and other sectors in the UK, intends to join the Access Segment of the AQSE Growth Market. Admission expected on 30 October. Tekcapital announ

PROGRESSIVE: IG Design Group: H1 trading sees significant net debt reduction and profit growth despite lower sales

IG Design Group has delivered substantial growth for the H1 trading period (to 30 September) in terms of key profit measures and margins, together with strong cash flow and net debt reduction, both of which exceeded management expectations. These achievements have been attained despite lower sales compared to H1 FY23, with the adjusted operating profit margin in H1 FY24E therefore set to surpass last year’s 5.9%. As such, the overall results clearly show the ongoing benefits of the group’s strat

Improved H1 profitability - FY24 on track

PROGRESSIVE: IG Design Group: Formulating a new course for profitable growth with the ship successfully steadied

IG Design’s FY23 results delivered a welcome return to underlying profitability as headlined in its April trading update. The group’s planning now shifts from turnaround to a growth-focused strategy beyond its initial aim of recovering pre-pandemic operating margins. IG Design has strengthened its central and DG Americas teams to support this strategy, with experienced hires boasting strong commercial credentials.

Improved FY23, margin recovery plans advancing

PROGRESSIVE: IG Design Group: Successful refinancing of lending facilities – with lower quantum and margins

IG Design has announced a successful and favourable outcome to the refinancing of its lending facilities. The new arrangement replaces the previous revolving credit facility (RCF) agreement from 2019, which was subsequently renegotiated in 2022. The new three-year facility is for $125m through an Asset Backed Lending (ABL) structure. This flexes in line with the group’s US receivables and provides ample headroom to finance the key working capital needs over the duration of the facility. In a wor

Successful refinancing

PROGRESSIVE: IG Design Group: Appointment of new Group CFO

IG Design (IGD) has announced the appointment of its new Group Chief Financial Officer (CFO). The group had indicated in its April pre-close trading statement that it was well-advanced in the search for a new CFO, expecting it to be completed shortly. The incoming CFO is Rohan Cummings. He joins from Devro Limited, formally Devro plc, which was listed on the London Stock Exchange until its recent takeover by Dutch company SARIA Nederland BV. His appointment will be effective from 3 July 2023, ta

Hybridan Small Cap Feast 20/04/22

Dish of the day Joiners: Dowlais Group (DWL.L) has joined the Premium Segment of the Main Market. Dowlais joins the Main Market following the completion of the demerger of the GKN Automotive, GKN Powder Metallurgy and GKN Hydrogen businesses from Melrose Industries PLC into Dowlais. Leavers: Bion plc has left AIM. What’s cooking in the IPO kitchen?** Golden Metal Resources Plc a mineral exploration company focused on tungsten, gold, copper, silver and zinc within Nevada, USA intends to join AIM.

PROGRESSIVE: IG Design - FY23 to beat expectations for profit and cash, boding well for longer-term objectives

IG Design Group’s post-close trading update on FY23 to 31 March reveals outperformance in terms of profitability and cash against market expectations. Compared with upgraded guidance to a small adjusted profit before tax for FY23 at the time of the interims, management anticipates a figure of $9m (cf Progressive forecast of $1.9m). Year-end cash of $50m represents around a 66% increase on FY22’s closing position.

Morning Note – 16 April 2024

Robust margin and cash performance

Dowlais Group - Motoring forward

Dowlais Group’s first set of results were ahead of our expectations, with positive cash generation a highlight despite restructuring and demerger costs. Softer automotive markets will limit margin progress in FY24 towards the double-digit target. Despite this, margins of c 6.5% are still ahead of automotive peers, although the shares trade at a significant discount to our implied generic peer-based valuation.

Surface Transforms (SCE LN) - Obstacles removed for higher production

Surface has issued a brief Q1 update. Production will ramp-up this year as final new equipment is installed, and manufacturing teething problems recede.

Nexteq - FY23 adj EBITDA +4% ahead, FY24E upgrades of +1-10%

Nexteq’s FY23 results show adjusted EBITDA +4% ahead of the +6% upgrade at the January trading update, record FY23 EFCF of $17.4m, and a confident outlook that leads us to reiterate our FY24E revenue and upgrade FY24E gross profit, adj EBITDA, and EFCF by +1-10%. The strategic focus on higher-margin products and customers reducing elevated inventory levels led FY23 group revenue -5% yoy to $114.3m, with Quixant 6% lower at $69.3m and Densitron 2% lower at $45.1m. Effective supply-chain managemen

Morning Note – 4 April 2024

Morning Note – 25 March 2024

Zeus Top Picks for 2024 - 2023 review and outlook for 2024

On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div

Nexteq - FY23 net cash +36% ahead, FY24E EBITDA & EFCF reiterated

Nexteq’s FY23 trading update highlights a strong gross margin performance, adjusted PBT comfortably ahead of market expectations, and net cash +36% ahead of our previous forecast at $27.9m. The strategic focus on higher-margin products and customers reducing elevated inventory levels have led FY23 group revenue -4% yoy to $114.8m, with Quixant 6% lower at $69.4m and Densitron broadly in line at $45.4m. Effective supply chain management, strong price discipline, and increased sales of higher marg

LIBERUM: New Energy Nuggets: Hydrogen - the future is green

Revolution Beauty (REVB LN) - Reinitiating coverage: Solid foundations, targeting 3X growth

A streamlined strategy, solid foundations, and a new, enthusiastic management team creates meaningful upside risk to forecasts. The scale of the opportunity is significant, with the path to £1bn retail sales more than achievable in our view. Our valuation analysis implies a share price of 85.3p, 205% above current levels.

Initial Equity Trading Comments - 19 February 2024

The Joy of Techs - Cavendish Technology quarterly sector note

£23.3bn in enterprise value has been returned to AIM technology shareholders over the past six years in the form of 51 public to private takeouts, including 10 in 2023 alone with the takeovers of Smoove* and Tribal announced in early October. With UK valuations appearing cheap and looking more attractive to potential acquirers, we take a moment to reflect on the trends of corporate and private equity bidders targeting AIM-listed technology companies going back to 2017, through the uncertainties

Byotrol - H1 2024 interims: Forecasts reinstated

Byotrol’s interim results were in-line with the recent trading update and, as such, we reiterate our FY 2024 forecasts. Group revenues for the period were down by 9% to £2.0m, however, product sales (excluding IP related royalty income) were flat YoY. Encouragingly, professional product sales increased by 8% to £1.8m and the company delivered an improvement in underlying gross margin to 44.5% (vs FY 2023 42.6%) supported by rebalancing the portfolio towards higher margin products in animal and h

Morning Note – 7 December 2023