China Caixin PMI rises in Oct; South Korean exports miss estimates; Parker Hannifin revises down guidance

CRH (CRH LN, £22bn) completes disposal of European Distribution business for EV of €1.64bn, payable in cash | Chemring (CHG LN, £563m) receives contract award for further 75 units under its US DoD’s “Aerosol & Vapor Chemical Agent Detector” Program to be delivered in FY20; expects adj. op profit to be “slightly ahead of expectations” | Carclo (CAR LN, £8m) FY19 prelims (31/03) reports revenues down ~1% y/y and u/l op. profit down ~88% reflecting deterioration in LED Tech Division; sales process

Small Cap Breakfast

Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Offer TBA. Due late Aug. Vitesse Media (VIS) — To be renamed Bonhill Group. RTO of the trade and assets of InvestmentNews, a Business Information and Data & Insight brand supporting the US financial adviser and wealth manager community Due 17 Aug. Raising £18.6m at 80p. Mkt cap £26.7m. Kropz PLC-Intention to float by the emergin

Chemring - Ducks aligning

Chemring’s H118 report demonstrates improved operational performance and financial security. While FX headwinds persist, the operating margin improvements at Countermeasures and Sensors are visible, as is improved cash generation. End markets are evolving from the perceived threat to increasing budgets, which underpins Chemring’s market position. The FY18 outlook remains unchanged, underpinned by the H2 order book.

Chemring - Flight path adjusted

Chemring is making strong progress on many fronts as market dynamics begin to play in its favour. It has re-established its financial footing and is positioned to drive growth organically and with selective M&A. FY18 is likely to be one of consolidation due to the profile of the 40mm ammunition contracts, but earnings growth anticipated in Countermeasures and Sensors offsets a fall in Energetics. The operational excellence programme targets a 300bp improvement on existing product lines by 2022.

Biting the bullet

Chemring has announced another profit warning, but unlike previously, management appears to be finally setting about rebasing the company for the future. While FY16 expectations look relatively intact, with 75% order book cover for revenues, a standby rights issue should see debt reduce to manageable levels, enabling management to stop looking over its shoulder and focus on the path ahead. Such repositioning should come as a welcome relief to investors.

SP Angel Morning View: Copper prices hit $9,700/t as China smelts concentrates for zero charge Tc/Rc

LIBERUM: CEO Video: Matt Wragg, Gattaca plc:

Jersey Electricity - Decarbonisation fuelling growth

Jersey Electricity (JEL) is intensifying its focus on energy security and electrification across Jersey by creating opportunities to accelerate growth. It successfully navigated the volatile wholesale power price environment in 2020–23, shielding its customer base from the worst inflationary pressures. However, from 2025, as older, more favourable hedges expire, this protection will diminish. Therefore, we have marginally reduced our earnings forecasts to account for the increased exposure to wh

Q1 Operating Results

Another Good Year of Diversified Growth with More to Come in 2024 CCapital have released their Q1 operating results. Overall, revenue has come in slightly lower than expected at $80.2m vs TamE of $85.9m but is largely tracking in line with our FY24 annual estimate and we note the company has maintained guidance. Drilling revenue for this quarter was impacted by a fall in utilisaztion rates as well as general remobilisation geographically but we expect a strong recovery throughout the year as k

Quadrise+ (QED, House Stock at 1.4p) - Drilling to commence in Utah project

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

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

Strix (KETL LN) - FY23 results, forecasts rebased

Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth

PROGRESSIVE: Severfield: Targeted acquisition strategy aids growth path

Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.

Judges Scientific+ (JDG, House Stock at 8,900p) - HY; strong order book, FY23F unchanged

Invinity Energy Systems - Progress on Three Fronts

Invinity is making major progress commercially, technically and financially. A full manufacturing agreement has been signed with Taiwanese partner Everdura. This brings additional manufacturing capacity to serve the existing re-seller agreement without the need for new capital. Validation testing on the next-generation Mistral flow battery has verified performance targets, paving the way for commercial launch later in the year. Finally, discussions on one or more strategic partnerships are progr

Invinity Energy Systems - Update on Strategic Investment

Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.

Morning Note – 4 April 2024