DP DHL reported an excellent set of figures in Q1. A recovery in air and sea freight volumes, robust demand in B2C eCommerce activities and an ongoing recovery in the B2B business led to such an outstanding quarter. All divisions recorded a jump in profits on the back of high margins. Given such a strong result, the group revised upwards its FY21 guidance, which was also above expectations. We expect 2021 to be a strong year for the group.
Companies: Deutsche Post AG
DP DHL confirmed its strong preliminary Q4 and FY20 results today. The group exceeded its own re-raised guidance targets on the back of sustained momentum from eCommerce. As a result, both DHL Express and eCommerce Solutions registered solid growth. Other divisions, too, did well, except for Supply Chain solutions, which saw some recovery in Q4. The group generated record FCF in FY20 and will propose a dividend of €1.35. Moreover, the group will also launch a €1bn share buy-back programme.
Deutsche Post DHL confirmed its positive preliminary figures in its Q3 release today. Favourable business developments in Parcel, Express and e-Commerce Solutions enabled the group to register good growth in revenues and even better growth in EBIT. Additionally, the group not only confirmed its increased guidance but raised its FCF expectations even further.
DPDHL posted its final Q2 20 results. Management confirmed the new FY20 outlook unveiled a month ago and kept its 2022 guidance unchanged.
DPDHL reported a good set of FY19 results, with figures broadly in line with expectations in all lines. Both Express and P&P were the main growth drivers. A good surprise was in the dividend proposal of €1.25, reflecting a payout ratio of 59% (dividend yield of 5.5%). 2020 guidance was reaffirmed, but does not include any impact from the COVID-19, which looks like being too optimistic; the main reason is the complexity of quantifying it at this stage.
DPDHL reported a very good set of Q3 figures, with notably a solid organic revenue of 3.7% despite the challenging environment. This performance was driven by Express and P&P which benefited from the price hike in mail activities since July. Management confirmed its full-year guidance. We confirm our positive opinion on the stock.
As part of its Capital Markets Day, DPDHL presented its new plan called Strategy 2025 with new 2022 guidance and long-term divisional targets. We consider the 2022 targets are conservative, especially regarding the EBIT guidance based “on a cautious macro scenario”. The market reacted negatively as this clearly reflects slower EBIT growth between 2020 and 2020. The transformation is underway and appears to be on track. Patience is required. Buy rating confirmed.
DP DHL reported a good set of Q2 results. All divisions contributed to organic growth which has strengthened management’s confidence. With more clarity on the mail pricing regime, the management has now tightened the EBIT guidance for the full year. The productivity measures implemented by DP DHL are on track.
DP DHL reported Q1 results in line with expectations. The strong EBIT level was boosted by the recent supply chain deal and therefore, adjusted for this, profitability would have been much lower. The Express business is the growth driver for DP DHL, but it is also the most exposed to an economic downturn and/or political tensions. DP DHL is on track to be back in the race, but it is too early to say that headwinds are behind.
DP DHL reported encouraging results roughly in line with consensus expectations. Once again, the good performance was driven by the Express activities while PeP continues to drag due to the ongoing restructuring measures but, they are on track with significant progress in all three pillars, i.e. pricing measures, direct (productivity) and indirect cost (restructuring). The outlook for 2019 is relatively cautious but, in line with our estimates. DP DHL remains a quality stock, in our view, though
Q3 key highlights:
Revenue increased +1.4% to €14.8bn, thanks to all divisions
The EBITDA margin stood at 8.2%, while the EBIT margin declined to 2.5% (-320bp)
FCF declined due to higher capex (excluding leases assets)
2018 and 2020 guidance confirmed
DPDHL has announced the establishment of a new business division called DHL eCommerce Solutions. The new division will include the DHL Parcel Europe and DHL eCommerce business units which were part of the Post-eCommerce-Parcel (PeP) division with the intention to promote even more strongly the eCommerce operations of DPDHL in an international context. PeP will be renamed Post & Parcel Germany and in the future only act in the German market. Ken Allen takes over responsibility as CEO and Board Me
Group revenues increased by 1.4% to €15.02bn; after adjustments for adverse FX effects and the Williams Lee Tag disposal, Deutsche Post reported a continued strong organic growth of +6.2%. EBIT, however, decreased by 11.2% to €747m based on the operating performance in the PeP division and the first measures to counterbalance this development. The EBIT margin fell therefore from 5.7% in the last quarter to 5.0% in Q2 2018. EBITDA, on the other hand, went up by €339m (+27.9%) to €1.55bn due to ef
Revenues declined by 0.9% to €14.75bn
EBITDA jumped 35.9% to €1.67bn and the EBITDA margin from 8.3% to 11.3% mainly attributable to IFRS 16
EBIT increased 2.3% and the EBIT margin improved from 5.9% to 6.1%
Net debt jumped from €1.9bn to €11.9bn due to the adoption of the new accounting rule IFRS 16; equity ratio declined from 38.4% to 27.7%
Management confirmed guidance for the current year
Revenues increased 5.4% to €60.4bn and EBIT improved 7.2% to €3.7bn.
The EBIT margin rose from 6.1% to 6.2%, mainly driven by the Express division.
Dividend increase of 9.5% from €1.05 to €1.15 per share.
Strong outlook for the current year with double-digit EBIT growth.
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Ince has reported resilient results for FY21 considering the COVID pandemic with revenue growth YoY driven by International offices. With the cost base and financial position now stabilised, good earnings growth from FY22 onwards should be achievable. We reinstate forecasts to reflect a robust platform for progress at the Group and set our new target price at 100p which we think appropriately reflects the Group's near-term trough earnings and medium term earnings power based on current assumptio
Companies: Ince Group plc
Simec Atlantis (SAE) have confirmed that their largest shareholder, SIMEC UK Energy Holdings Limited are no longer in receivership.
Companies: SIMEC Atlantis Energy Ltd.
Companies: Judges Scientific plc
Judges Scientific is a group focused on acquiring and developing companies in the scientific instrument sector. The first half looks to have demonstrated a significant rebound, albeit against a weak comparator of H1 2020 with management ‘confident' of hitting full year market expectations. The Group exited H1 (30 June) with a strengthened organic order book of 16.1 weeks of sales, +15% on the year end position (14.0 wks), and +49% vs H1 2020. The total order book stood at 17.6 weeks. H1 organic
Companies: Volution Group plc
Plant Health Care has released a trading update for the first half with a trajectory of demand which suggests a good second half to come, traditionally the seasonally stronger part of the year. The Board expects FY trading to be in line with management expectations so we believe our forecasts are well underpinned with considerable upgrade potential given the current market trends. Buy
Companies: Plant Health Care PLC
Companies: Safestyle UK Plc
Flat but unsurprising results from Centrica in the first half of the year, as favourable weather conditions and commodity prices were offset by the COVID-19 impact, British Gas engineer strikes and sharp trading conditions.
On the positive side, the sale process of Spirit Energy has made progress, and a CMD will be held on 16 November 2021. However, nothing new on the dividend side.
Neutral view confirmed due to so many uncertainties surrounding the stock.
Companies: Centrica plc
Mpac has announced that Mpac Lambert has signed a contract with FREYR Battery to supply casting and unit cell assembly equipment for the battery cell production line at FREYR’s Customer Qualification Plant in Mo i Rana, Norway.
Companies: Mpac Group PLC
Epwin seems to exist under the radar screen. The stock trades at some of the lowest valuation multiples in the sector (FY22F PER = 11.2x, DY = 4.4%) and, for the second time in 3 months, we have significantly upgraded our earnings forecasts due to continued strength in RMI (Repair/ Maintenance/ Improvement) demand and robust margin development. House Stock.
Companies: Epwin Group PLC
Although renewable energy has been gaining increasing traction over the past decade as the costs of renewable energy generation and perhaps more importantly, energy storage have fallen, 2020 was a seminal year for transitional energy investors driven by governments seeking to “build back better” after COVID-19. The US has committed US$2.25trn largely focused on the energy transition while the EU has committed US$0.54trn with companies around the world including China committing to net zero targe
Companies: LAM FSJ TGP PRES JMAT CRPR NEXS VLX
AfriTin* (ATM LN) –Uis mine in Namibia aiming towards doubling monthly concentrate output
Alba Mineral Resources (ALBA LN) – Identification of new gold target close to Gwynfynydd
Altus Strategies* (ALS LN) – New silver/copper licenses secured in Morocco
Cornish Lithium (PRIVATE) – DLE technology provider selected for the Pilot Plant
Greatland Gold (GGP LN) – Additional drilling results from Havieron
Piedmont Lithium (PLL US) – A presentation delivered to Gaston County officials
Companies: PLL ATM ALBA ALS GGP SRB
Plant Health Care has announced that it has signed a distribution agreement with leading distributor Agrii in the UK for exclusive access to the biostimulant Harpin αβ in all crops in the UK. In the UK Harpin αβ has been sold on a small scale for 14 years, under the brand name ProAct®. It has shown to have exceptional grower benefits particularly in the amenity (turf) market and potatoes and Plant Health Care has been working with Agrii for several years to establish the grower benefits of Harpi
Confirmation of a strong year in tough circumstances
Ince has achieved a significant result in FY21, with revenue breaching £100m, new offices having been opened in Cyprus and Abu Dhabi, the fee-earning team having expanded materially, and its proprietary practice management system having been rolled out across most of this large global group.
COVID has clearly had an impact on some aspects of its financial performance, but we believe it has been navigated well, and Ince is now positioned
Since Epwin reintroduced guidance back into the market in September 2020 demand has consistently exceeded expectations. This has continued in H1 FY21 with today’s statement indicating that profit before tax for the current will be materially ahead of current expectations. The strength of trading in the first seven months of the year lead to an 11% upgrade in revenue and a 17% increase in profitability to £12.9m (prev. £11.0m). Raw material and cost input pressures lead to more conservative incre