Hybridan Small Cap Feast - 21 May 24

21st May 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: ITF announced: 7th May: Time To ACT plc, an engineering business focused on technology for the energy transition sector, has announced its intention to seek Admission to t

PROGRESSIVE: Watkin Jones: Guidance unchanged as investment rekindles

Watkin Jones has maintained its FY24E guidance following today’s results for the six months to 31 March, which showed operating profit more than doubling. The group continues to expect a heavy H2 weighting as it has focused on operational performance while the forward-funding market has remained largely on hold, pending further clarity on the direction of interest rates. Sentiment is now gradually improving, according to the group.

Hybridan Small Cap Feast - 23 April 2024

23rd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: Bidstack Group (BIDS.L) has left the AIM market What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to

PROGRESSIVE: Watkin Jones: H1 in-line amid reviving investor appetite

Watkin Jones’s guidance for FY24E is unchanged in its trading update for the first half to 31 March. We maintain our forecasts for the full year and introduce half-year estimates, in line with reiterated guidance that performance will be significantly H2 weighted. The group confirms a continuing gradual recovery in appetite among institutional investors to forward fund its build-to-rent (BTR) and student developments. We believe this should gather pace as the direction of interest rates becomes

PROGRESSIVE: Watkin Jones: FY results in-line, guidance maintained

Watkin Jones’s FY23 results, to 30 September, were closely aligned with guidance in its October trading update, with adjusted loss before tax slightly lower than our estimate and net cash higher. Booming demand continues to push up rents and the forward-funding market is ‘showing early signs of recovery’. The group is maintaining its guidance for FY24E and is seeking to diversify revenue and boost performance in its core markets.

Hybridan Small Cap Feast - 11 Oct 23

11th October 2023 @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 obje

PROGRESSIVE: Watkin Jones: FY23E outlook dips slightly; FY24E unchanged

Watkin Jones’s FY23E year-end trading update is broadly in line with our expectations, albeit with slightly higher costs than previously signalled but significantly better net cash and no change to the remedial works provision. Encouragingly, guidance for FY24E is unchanged, with progress in forward sales of student and private assets to institutional investors. Data from both student and private rental markets continues to show huge under-supply.

Hybridan Small Cap Feast: 19/07/2023

Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Substrate Artificial Intelligence, an artificial intelligence company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health, intends to join the Access Segment of the AQSE Growth Market. Expected Admission 21 July 2023. Blackpoint Biotech plc, a medical cannabinoids company established to fulfil gaps in the medical

PROGRESSIVE: Watkin Jones: Transaction risks cloud current outlook

Watkin Jones has issued new guidance for FY23E, recognising ‘a greater degree of risk’ regarding anticipated forward-funding transactions completing by the 30 September year-end, with lower profitability also expected for FY24E, while it has identified other impairments and charges. We have downgraded our estimates accordingly. Also, CEO Richard Simpson has stepped down and CIO Alex Pease has taken the role on an interim basis.

PROGRESSIVE: Watkin Jones: Investment appetite returns but rephased

Watkin Jones highlights a continued recovery in the institutional funding market in today’s interim results, which were in line with its expectations of a significant H2 weighting for FY23E. This, and attractive new land opportunities, should support its long-run target margins. However, the group has exercised caution in recognising profits on long-term contracts, leading us to cut adjusted PBT by £25m for FY23E, while leaving FY24E unchanged. Longer term, we believe the clamour for rental acco

PROGRESSIVE: Watkin Jones - Half-year update highlights investment revival

In today’s half-year trading update, residential-for-rent developer and manager Watkin Jones highlights revived activity among its institutional investors following a hiatus last year in the wake of the mini-budget. As previously guided, the group expects a strong second-half weighting as the investment pipeline rebuilds. We continue to believe that WJG uniquely addresses the growing need for new rental homes.

PROGRESSIVE: Watkin Jones: Half-year update highlights investment revival

In today’s half-year trading update, residential-for-rent developer and manager Watkin Jones highlights revived activity among its institutional investors following a hiatus last year in the wake of the mini-budget. As previously guided, the group expects a strong second-half weighting as the investment pipeline rebuilds. We continue to believe that WJG uniquely addresses the growing need for new rental homes.

PROGRESSIVE: Watkin Jones: Rising rents attract investors back to market

Residential-for-rent developer and manager Watkin Jones on 25 January delivered FY22 results that were broadly in line with our expectations. Continuing strong demand for its core rental developments, as highlighted in October, was hampered by delays in investment decisions following the mini-budget. We believe recovery has begun, albeit on a slightly shallower trajectory, and current market conditions may offer the group opportunities. Surveys show continuing rental growth, attracting back inve

Hybridan Small Cap Feast - 25 Jan 23

25 January 2023 @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

PROGRESSIVE: Watkin Jones: RICS survey highlights strong rental market

Today’s RICS housing market survey, in our view, paints a much brighter picture of Watkin Jones’s rental sector than that in the sales market. Surveyors expect strong growth in rents to continue, driven by strong tenant demand and constricted supply. We believe that part of the reason for the arguably excessive reaction of the share price to last week’s trading update may be the weakness of the national housebuilders, but they operate in the currently more challenged sales market.

Spectra Systems - Banknote Conference 2024 – significant interest in SPSY polymer

Last week's global Banknote Conference 2024, taking place in Forth Worth, Texas, was a near-perfect sales opportunity for Spectra (SPSY) given (1) an exceptionally strong new product to offer in the banknote arena, (2) an expanded and highly experienced sales team post the recent Cartor acquisition and (3) patent appetite among the Central Bank client base for a new polymer substrate supplier in this market. Spectra, a leader in machine-readable high-speed banknote authentication and brand prote

Spectra Systems (SPSY LN) - Sensor contract drives double-digit upgrades

Today’s announcement from SPSY confirming a major new contract with a significant existing central banking customer (partly anticipated in our forecasts) provides further affirmation of the company’s strong technology and close relationships with globally prominent clients. While foreshadowed in earlier announcements, the sensor contract is, however, expected to be considerably more profitable in its totality than previously anticipated. SPSY is an established world leader in providing security

Nexteq - Strong cash in a challenging H1, board transition

Nexteq’s H1 24 trading update shows revenue growth of -15% yoy to $48.2m, the outlook states that FY24E revenue and adjusted PBT are expected to be 15-20% and 30-40% below previous market expectations respectively, and separately the Chair, CEO, and CFO will step down from the Board in the coming year. As highlighted at FY23 results in March, H1 revenue has been impacted by softer customer demand across both divisions due to industry de-stocking, and there has then been an incremental impact fro

VNCE: Snapping the Store: Pre-Fall Continues to Impress; Reiterate Buy, $3 PT

We are reiterating our Buy rating, projections and $3 price target for Vince after visiting stores in Long Island, Connecticut and New Jersey. We believe the company continues to roll out winning collections, with a focus on compelling hues (dark scarlet and blue waltz), new items (cargo pants, shrunken camisoles, silk hooded shirts and cardigan sweaters) and a deeper focus on key categories such as dresses. Further, we are also seeing continued newness and expansion in men's, driven by jackets

Softer consumer sentiment weighs on current trading

Burberry published a slightly better-than-expected first half performance but warned that the slowdown in luxury demand across the globe has started to weigh on its business. The group said that it is unlikely to achieve its guidance for FY23/24 if the weaker demand persists.

Surface Transforms (SCE LN) - FY guidance confirmed, weighted to H2

Surface Transforms has issued a brief pre close trading update for H1. Full year revenue guidance of £17.5m has been confirmed but, as we expected, this is significantly weighted to H2. Sales in H1 were £4.6m but excluded preproduction engineering revenue which will now be recognised in H2. The current brake disc manufacturing run-rate is significantly higher than earlier in the year and is now meeting customer expectations. We understand that factory capacity is increasing and risks from single

Allenby Capital - Spectra Systems - Update

Manufacturing contract margins for the third generation of sensors for Spectra’s longstanding central bank customer are significantly higher than originally anticipated and result in major profit upgrades for FY24 and FY25. The contract is worth an initial $37.9m with a further $1.7m expected later this year. Spectra, the leader in machine-readable high speed bank note authentication, brand protection technologies, security printing and gaming software, would also expect to secure a multi-year s

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Hybridan Small Cap Feast 07/07/23

Joiners: No joiners today. Leavers: Medica Group plc has left the Premium Segment of the Main Market. What’s cooking in the IPO kitchen?** Blackpoint Biotech plc, a medical cannabinoids company established to fulfil gaps in the medical cannabis market by creating products that provide fast onset of action and accurate dosing, intends to join intends to join the Access Segment of the AQSE Growth Market. Expected Admission 20 July 2023. Metals One Plc, a company focusing on acquiring natural resou

Encouraging start to the year

Burberry released a start to the year bang in line with the market’s expectations. The recovery in the Chinese market and the lifting of the last travel restrictions in Asia resulted in significant sales growth in Asia Pacific, partially offset by the ongoing slowdown in the Americas. The ongoing recovery in Asian travel retail and the arrival of the new Daniel Lee collection in stores at the end of the second quarter will drive growth for the rest of the year.

Quartix Technologies - FY23 adj EBITDA +10% ahead, FY24E forecasts reiterated

Quartix’s FY23 results show FY23 revenue growth of +9% to £29.9m, adjusted EBITDA +10% ahead of the January trading update at £5.4m, and a confident FY24 outlook that leads us to conservatively reiterate our FY24E forecasts. Core Fleet revenue grew +11% to £29.5m, with recurring revenue +9% to £27.8m or 93% of group revenue, and ARR increased +£2.2m at constant currency to £29.1m. By region, France and the new European territories delivered an excellent performance with FY23 revenue growth of +2