The disposal of Peter Brotherhood (‘PB’) to Howden (owned by KPS Capital Partners) is a significant realisation for the Group at an EV of £35m. The transaction demonstrates management’s successful restructuring and investment into PB that has yielded an almost fourfold gross return on the original £9.3m investment in September 2017, which was part of the overall purchase of Hayward Tyler Group. On unchanged adjusted EPS forecasts for 2022E, the EV/EBITDA multiple is now 6.7x with the Group forec
Companies: Avingtrans plc
As part of its PIE strategy, the group has announced the disposal of Peter Brotherhood for £30.6m, a 4x gross return on its investment and a good demonstration of how the PIE strategy realises value for shareholders. Proceeds will be used to reduce debt, fund investment in newly acquired Magnetica and also enable new potential M&A opportunities. The disposal is EPS-neutral gaining cash worth 71p per share resulting in a PT of 416p (up from 345p), with further opportunities for potential EPS upsi
Avingtrans has produced a resilient interim result and continues to trade in-line with expectations. Whilst revenue was stable versus H1 FY2020, EBITDA rose by 36.6% due to further post-acquisition improvement at Booth and Energy Steel, and an improved margin mix due to cost reduction and better project margins. We have updated our forecasts for the recent merger of Sci-Mag and Tecmag with Magnetica, where the Group now has a 58.1% interest. Despite forecasting increased losses for the Medical D
Companies: AVG D4T4 PHD SDI ARB CORA
Results show an encouraging increase in profits driven by previous restructuring which has turned round trading at Booth and Energy Steel, with a better margin mix overall. This was produced from a stable sales base, which is creditable given some contract delays due to COVID. Only minor changes to forecasts factoring in the recent Magnetica deal, which enhances its compact MRI business. We raise our price target to 345p, and believe the shares look decent value.
Report on Techcrunch that IROKO, a Nigerian-based media company, could file to go public in the next 12 months on the London Stock Exchange (LSE) Alternative Investment Market. Founded by Jason Njoku and Bastian Gotter in 2011, IROKO boasts the largest online catalogue of Nollywood film content globally. According to this report, the media company will raise between $20 million and $30 million valuing the company at $80 million to $100 million. AMTE Power, a developer and manufacturer of lith
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NQ Minerals, the base and precious metals producer from its 100% owned flagship Hellyer Mine and the 100% owner of the Beaconsfield Gold Mine, both in northern Tasmania, Australia, has submitted a draft prospectus to the UK Financial Conduct Authority for approval. The Company is considering applying for admission of its ordinary shares to the Official List of the FCA by way of a Standard Listing and to trading on the Main Market of the London Stock Exchange . Details TBA
Foresight Group ,
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Avingtrans has announced that it has continued to perform well in H1 FY2021 and is trading in line with market expectations. Our cautiously framed forecasts anticipate adjusted EPS growth of 17% in FY2021E and 10% in FY2022E, including the benefit of cost reduction measures. The Group confirmed high levels of order cover for FY2021E at 85% at the end of September and orders taken since then will have provided further comfort. The shares have given ground YTD and now trade on a forward EV/sales m
Avingtrans has announced that its two medical businesses – Scientific Magnetics and Tecmag – are to merge with Magnetica Limited, an Australian medtech and engineering business specialising in next generation MRI technologies. The transaction, which is subject to Magnetica shareholder approval at a General Meeting on 29th January 2021, supports Avingtrans’ ambitions to become a leading systems integrator for small scale, cryogen free MRI in a variety of niche markets. There is a substantial mark
In-line with its trading update, Avingtrans has reported record results for FY2020 despite the impact of COVID-19 which resulted in a number of delayed orders and challenges, particularly in the Oil & Gas sector, where exposure remains relatively low. Order intake has been building across the summer however and the Group now has 85% cover for FY2021E and, consistent with this time last year, 40% cover for FY2022E. Management has made significant progress with Energy Steel and Booth Industries, b
Altitude Group (ALT): Corp | Avingtrans (AVG): Corp | InnovaDerma (IDP): Corp | Open Orphan (ORPH): Corp | Quixant (QXT): Corp
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Results were slightly better than expected, boosted by the acquisitions of Booth Industries and Energy Steel in 2019 with a solid performance despite COVID-related headwinds. Some supply chain and order delays did affect underlying revenues. Turnaround action has resulted in a strong profit improvement from the former HTG operations. Yesterday, Booth announced that it had won a landmark £36m contract to supply high integrity cross passage doors for HS2. This is a major multi-year boost and follo
The company has announced that its recently acquired subsidiary Booth Industries has won a landmark multi-year contract for the supply of high integrity protection doors for HS2 worth £36m. This contract also with other recent contracts validates the group’s acquisition of Booth. No change to forecasts in advance of tomorrow’s full year results. Clearly, today’s news will be very well received, with the shares looking undervalued.
Avingtrans (AVG): Corp | Chariot Oil & Gas (CHAR): Corp | dotDigital (DOTD): Corp | Gateley (GTLY): Corp | Iofina (IOF): Corp | Synairgen (SNG): Corp | Universe Group (UNG): Corp
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Powerhouse has moved to de-risk potential sources of delay in the key Protos waste to hydrogen project by providing a £3.8m loan to the project. When the company raised £10m in January we expected this to help expedite the project and today’s loan is a practical example of how this funding is benefiting the project.
Companies: Powerhouse Energy Group PLC
Powerhouse has announced progress with the international roll out of its DMG waste to hydrogen technology with an agreement towards the licencing of the technology in Greece and Hungary. This follows a similar agreement in Poland and demonstrates the global appeal of Powerhouse’s solution in our view. While development of the Protos project in the UK remains important, the ability to expand internationally is part of the appeal of the Powerhouse investment case and it is good to see progress her
Eden Research has announced the signing of an exclusive commercialisation, supply and distribution agreement with leading agriculture input company, Corteva. This follows the successful completion of the previous evaluation agreement. The new agreement sets out the development, regulatory and commercial path, which could see the final seed product launched in time for the 2024 growing season. The two companies will work together to develop this product and further uses of Eden's products in the
Companies: Eden Research plc
The group has released a positive trading update with strong trading seen recently in the US along with signs of recovery in Europe and Australia. It is quite unusual for this conservative company to boost its guidance at this fairly early stage in the year, with raised guidance for FY21 leading us to increase our adjusted EPS by 15%. The shares trade on a discount to peers and offer a premium yield. We lift our price target from 435p to 520p, up 20% and offering decent upside to current levels.
Companies: Somero Enterprises, Inc.
Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in spor
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c. £241m firm placing at the top of the target range of £190m to £240m at a 17% discount. As expected the raise will be used to reduce the debt and fund investment. This is the final milestone in the group’s strategy. There is no update on trading but as we wrote last month Kier is turning a corner. We show our key placing assumptions. We estimate 6% and 60% FD EPS dilution in FY 21 and FY 22 respectively. We expect net cash at FY 21 and close to average cash neutral in FY 23. TP unchanged at 15
Companies: Kier Group plc
The group’s 10-month trading update is positive, with the group expecting to exceed FY21 expectations. Trading momentum continues, following its record H1 with strong underlying market demand in new build housing and RMI sectors. It has also seen market share gains and good export sales. The turnaround of Levolux continues, combined with the £2.4m of cost savings gained underpins margin improvement. We upgrade our forecasts for FY21, increasing EPS by 9% to 21.7p. In FY22 we also upgrade EPS by
Companies: Alumasc Group plc
DX has highlighted that trading since the interim results were reported has been stronger than expected. Higher volumes in Freight, driven by new business wins and existing customers, mean sales are now expected to be £10m higher than existing forecasts. DX’s strategy of winning market share supported by superior service levels is delivering, aided by a significant competitor moving away from the irregular dimension and weight market. We have upgraded our FY 2021 EPS by 19% and FY 2022 by 7% (ma
Companies: DX (Group) Plc
Checkit reported 23% y-o-y revenue growth for Q122. Normalising for the acquisition of Checkit US at the start of the quarter, group revenue increased 15% y-o-y. Recurring revenue made up 35% of total revenue, up from 32% in Q121 (normalised), as Checkit continues to transition customers to subscription contracts. The company is accelerating investment in sales, marketing and product to drive customer acquisition. Q122 annual recurring revenue (ARR) grew 7% q-o-q and, while early in the year, is
Companies: Checkit plc
Oil posted a gain this week as expectations for growing economic activity in nations from the US to Europe fuelled optimism around stronger summer demand. Futures in New York advanced 2.1% this week in the first back-to-back weekly increase since early March. Fuel sales in the UK rose to the highest since the pandemic again, and in the US, refineries are running at their highest rate since the pandemic began as they gear up for the summer driving season.
Crude's advance this week comes amid s
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Positive revenue momentum has continued, once again driven by the Freight division. Volume growth has come both from existing customers and new business wins. This growth is seen as sustainable, and DX is accelerating its plans to expand its depot network. Management expects adjusted PBT to significantly exceed current market expectations. We raise our EPS forecasts by 17% for the current year. Our recommendation remains BUY, and we raise our DCF-based TP to 40p from 38p.
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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AFC Energy hosted a virtual Capital Markets Event yesterday attended by over 750 participants.
The company re-emphasised its key technological advantage, namely, AFC Energy's technology can successfully run on a range of cheaper hydrogen sources including hydrogen ‘cracked' from green ammonia. Based on AFC Energy's market analysis, it stated that on an energy equivalent basis ammonia costs less than one quarter of the cost of hydrogen. Ammonia is a liquid under normal conditions, making it a d
Companies: AFC Energy plc
Empresaria has made a strong start to 2021, with positive momentum building in many parts of the Group. While there remain some ongoing challenges and risks from COVID-19, visibility over the year ahead is improving and the first half is now expected to show year on year growth. We upgrade our adj. PBT forecast by 10% to reflect the improving outlook. Whilst it is early days in terms of the recovery, it is positive to see momentum returning. On 2019 earnings (pre-COVID), the shares trade on a P/
Companies: Empresaria Group plc
Oil rose this month with a slew of positive economic data and signs of a budding fuel consumption revival in key economies offsetting a worsening coronavirus crisis elsewhere.
Futures in New York rose this week, extending its monthly gain to 7.5%. The near-certain likelihood of higher fuel consumption in the US, China and the UK has brightened the overall demand outlook, even as a resurgent pandemic in countries such as India, Brazil and Japan cloud those prospects. OPEC and its allies see wo