Morning Note – 27 September 2023

H1’23: A strong order book and improved margins

Directa Plus has reported a robust set of interim results with an improved margin and FCF performance, despite lower yoy revenues due to contract delays. H1’23 revenues decreased 17% yoy, but DCTA reported a second successive period of lower FCF burn as the business transitions from its previous R&D focus, to a new commercial strategy focused on end markets where graphene has near-term potential. The period reported did not benefit from any of the well flagged opportunities within Grafysorber, h

Directa Plus - New contracts support the growth profile

Directa Plus has announced interim results which show a reduction in the EBITDA loss thanks to improving margins and careful management of overheads. Whilst revenue was down on the previous year, the company is delivering against its growth strategy and securing significant new contracts. The environmental division continues to be the largest growth driver for the group with three globally significant end markets being pursued: remediation of refinery sludges, treating produced water and oily st

A transformational contract win

Directa Plus has announced the largest contract win in company history, a €5.5m three-year contract with Liberty Galati through DCTA’s subsidiary Setcar. The contract alone is impressive given there is the potential to expand up to a total value of €8.0m, however, we believe there is scope for this to become a meaningful part of the Directa Plus story moving forward. Liberty Galati is part of the larger $16bn turnover Liberty Steel Group, yet this initial contract is focused solely on Liberty’s

Cenkos: Directa Plus Plc -- Largest contract to date

Directa Plus has announced that its environmental services subsidiary, Setcar SA, has secured a three-year contract following a public tender process with LIBERTY Galati, the largest integrated steel producer in Romania. This is to provide a solution for the treatment of oily mills scale produced in the manufacturing of steel using Directa Plus's patented Grafysorber® technology. This multi-year contract has a total value of €5.5m, with the potential for further expansion up to a total value of

Cenkos: Directa Plus Plc -- Two new patents granted

This morning, Directa Plus announced it has been granted two new Italian patents covering both its core production technology and the application of graphene on textile articles. These additions take Directa Plus's IP portfolio up to 22 patent families, with 84 patents granted and 38 patents pending.

Cenkos: Directa Plus Plc -- Decontamination of O&G produced water

Directa Plus has launched a new product for produced water treatment using Grafysorber through its subsidiary Setcar. The plant is designed to treat produced water in a continuous flow and aims to achieve a continuous (ca 50 cubic meters/hour) flow taking concentrations of up to 300ppm of hydrocarbons and resulting in processed water with less than 5ppm total hydrocarbon content. This new product was showcased at pilot scale at the Setcar Braila location in Romania to local authorities and key p

Hybridan Small Cap Feast - 08 Jun 23

8th June 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 objectiv

Cenkos: Directa Plus Plc -- New eco-denim textile product

Directa Plus has announced the launch of a new product, GRAPHITO, an eco-denim textile, which helps reduce denim's environmental impact by extending the lifespan of denim garments. The product is being launched in collaboration with Candiani Denim, an international textile producer based in Italy, focused on innovation and sustainability.

Hybridan Small Cap Feast - 10 May 23

10th May 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 objectiv

Cenkos: Directa Plus Plc -- Well positioned for FY23E and beyond

Directa Plus achieved record revenues in FY22A with these growing 26% year on year and finishing 5% ahead of our expectations from 2 December 2022. Looking ahead we continue to see the company as being on track to reach profitability on its current cash resources, and well positioned to capitalise on a resurgence in interest in graphene enhanced products to help meet environmental objectives.

FY22 Results: A record revenue performance

Directa Plus has reported robust results with revenues increasing 26% yoy to a record €10.9m. This is the latest strong performance as group revenues have grown at an impressive 63% CAGR over 5 years. FY22 saw a strong cost performance with adj LBITDA in-line at €3.2m despite a significantly weaker gross margin performance. Looking ahead, Directa Plus appears primed for a big FY23 and has made a strong start to the year with a c.€0.7m+ new contract with Grassi announced in May 2023. The Group’s

Cenkos: Directa Plus Plc -- New contract with Alfredo Grassi

Directa Plus has signed an exclusive agreement with customer Grassi SPA to expand the use of its Graphene Plus Thermal Planar Circuit® (PTC®) technology in the workwear and military markets. Grassi, following the allotment of a new public contract, will supply an Italian institution with PTC® technology. Directa Plus will supply Grassi tens of thousands of linear meters of graphene treated lining for an order of over €700,000, providing a boost to the Company's estimated workwear income in 2023.

Hybridan Small Cap Feast - 20 Mar 23

20 March 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 objectiv

Cenkos: Directa Plus Plc -- Air Filtration Patent Granted

Directa Plus has announced that it has been granted an Italian patent for its G+® graphene technology for air-filtering applications. The patent, filed with a priority date of 29 December 2020, covers the use of G+® graphene technology for air filtering applications, such as automotive and heating, ventilation and air conditioning (HVAC) applications. G+® graphene has great potential in the air filtration market due to its antibacterial and antiviral qualities that maintain filter cleanliness, p

TClarke - £1.1bn order book and delivery protection measures

TClarke has confirmed it is on track to deliver its three-year growth-plan target of £500m of revenues in 2023E (up from £426m in 2022). It detailed a 99% increase in the order book to £1.1bn alongside a further £1bn in opportunities. Reflecting the current challenges in the construction sector, management has made a number of strategic decisions to preserve the business’s strong market and financial position. These include changing some supply-chain partners mid-contract to protect project comp

LIBERUM: Luceco: LED lighting the way ahead

discoverIE Group - Strong growth in margins & design wins in H124

discoverIE’s trading update confirmed organic revenue growth and operating margin expansion in H124. The company expects to deliver FY24 underlying earnings in line with its recently upgraded expectations; we maintain our operating profit and EPS forecasts. As expected, the order book continues to normalise but still provides good visibility for H224, and strong design win activity provides support for growth in the medium term.

Hybridan Small Cap Feast - 01/12/23

1st December 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

Brickability Group - A diversified and resilient model

Today’s interims are in line with the recent trading update (11th October) and as such we make no changes to forecasts. Revenue of £324.8m represents a LFL decline of 14%, with EBITDA of £25.6m (H123: £25.5m). This is a strong performance, against what is a challenging market backdrop and underlines the benefits of its diversified operating model and focused strategy. We therefore continue to be surprised at the weakness of the share price, especially in the context of a broader peer group. Putt

Morning Note – 28 November 2023

LIBERUM: Restocking Indicator still says BUY: Equities lift too

PROGRESSIVE: Oxford Metrics: Technology, strategy and EPS enhancing

Oxford Metrics (OM) today announced the acquisition of Industrial Vision Systems Ltd (IVS) for £8.1m, funded from cash and 1m new shares. IVS operates in industrial applications of smart sensing, with machine learning technology for quality control in the manufacturing environment. The deal is immediately earnings enhancing and we are raising our forecasts for FY24. This is an exciting first M&A application of the funds from the Yotta disposal. The deal appears technologically and strategically

PROGRESSIVE: SDI Group: Acquisition of Peak Sensors

SDI Group has announced the acquisition of Peak Sensors, a UK manufacturer of temperature sensors, for an estimated £2.4m (£2.3m less cash). The initial cash consideration is £1.58m, with a further c.£0.82m payment due shortly after completion. The deal will be funded from SDI’s revolving credit facility. As at 30 September, SDI had c.£1.78m cash, £15.1m bank debt and £9.9m undrawn bank facility excluding the accordion, providing considerable financial flexibility for the group. The acquisition

IO#9 within target production range

Morning Note – 1 November 2023

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

H1 23: RR may have finally found a bottom

After years of slippage, Rolls Royce may have finally found the bottom. H1 23 was marked by a 28% organic increase in revenues, a 531bp increase in operating margin and a sharp increase in cash generation, thanks to a higher activity level and the initial benefits of the multi-year transformation plan. Following these strong results, the company has upgraded its FY23 outlook.

PROGRESSIVE: SDI Group: Strong FY23

SDI has announced FY23 results in line with the guidance given in its May trading update. Strong organic growth and outperforming acquisitions delivered revenue growth of 36% to £67.6m (FY22: £49.7m), with adjusted PBT at £11.8m (FY22: £11.8m). Despite increased global economic uncertainty, SDI’s niche businesses, operating in diverse end markets, delivered organic growth of 6.4% (constant currency). This excludes the ‘one-off’ Atik Cameras PCR contract, which was c.£8.5m in FY23 and c.£10.9m in

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