The half year pre-close trading update six weeks ago led to a c. 20% increase in ZC FY21 profit expectations. Today’s interim results confirm that trading has remained strong and is on course to meet consensus FY21 expectations. Revenue is 13% ahead of FY19 with both divisions recovering strongly. Margin has come under pressure due to raw material cost input pressures and is down 70bps on the 6.7% achieved in H1 ’19. With supply chains remaining under pressure, it’s unlikely that we will see any
Companies: Epwin Group PLC
Epwin continues to produce the goods. Its FY21F interims this morning show continued strong RMI (Repair/Maintenance/Improvement) demand and good progress on margins, despite the headwind of abnormally high raw material costs. We retain our forecasts (which were materially upgraded on 28 July). Longer term, we like both the potential for margin expansion and the likelihood of value accretive acquisitions. Epwin trades at some of the lowest valuation multiples in the Building Materials sector (FY2
Having previously noted 9% revenue progress for the first four months of FY21 (versus FY19), the rate improved to 13% for H121 as a whole, despite some challenges due to strong demand levels. With positive cash generation also, Epwin has had a good start to FY21 and we have increased our PBT estimates for the year by 20% to reflect this momentum.
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.
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
Epwin has entered FY21 with positive revenue momentum, having successfully navigated some extreme market conditions in the prior year. The company has built a solid base from which to grow volumes, and a positive cash generation profile provides headroom to invest organically and via acquisition as post-pandemic markets begin to normalise.
As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
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Today's AGM statement indicates trading has remained strong since Epwin last updated the market at its FY20 results (15th April). Revenue year to date has increased 56% against the same time in FY20. Against FY19, a more relevant benchmark, it is up 9%. The RMI market has remained strong and anecdotal evidence suggest the New Build and Social markets are recovering, providing confidence for H2 as comparators get more difficult. Supply issues and raw material price increases continue to be an iss
Epwin reported FY20 results this morning, which were ahead of our forecasts. Management provided a confident outlook statement and we have increased FY21F EPS by 10% to 6.7p and FY22F EPS by 12% to 9.4p. Epwin is one of the lowest-rated stocks in the building materials universe: the stock trades on a PER of 10.3x and offers a dividend yield of 4.8% (both FY22F). This is despite forecast EPS growth of 43% between FY21F and FY23F. House Stock
Today’s FY20 results are better than the guidance provided in the pre-close trading update (Dec 16th, 2020). The strong trading alluded to in that statement continued through the year end into Q1 2021. The better than expected trading leads to an upgrade to estimates in FY21, pre tax increases c. 12%, and new forecasts are introduced for FY22 and FY23.
Baths, boulders, bricks, doors, drainpipes, rocks, shower trays, taps, tiles and windows – all are in demand
In the last fortnight, we have surrendered some of the notable progress made over the last three months. That said, the optimism displayed by markets, driven by progress with vaccines and their rollout, persists. The recent direction of markets has been set by volatility in US markets, driven by specific retail market developments. Domestically, we have seen a broadly upbeat procession of results and trading updates/outlooks have, generally, been at least in line. The share price reactions have
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AFC Energy’s statements and recent integration work with ABB highlight growing interest from customers which bodes well for orders in the months ahead. The forthcoming S-series of products will expand the Group’s portfolio and should deliver much high power densities and improved economics. The deployment of fuel cell technology is increasingly recognised by Governments and industry as a key tool in reducing global greenhouse gas emissions, which we expect will drive momentum for deployment in a
Companies: AFC Energy plc
Structuring the BUY case
Companies: Somero Enterprises, Inc.
AFC Energy announced that it has entered a hydrogen fuel cell supply and
collaboration agreement with partner, Urban-Air Port Limited (“Urban-Air”), a
leading UK developer of ground infrastructure for the growing demand in
autonomous airborne drones and electric take-off and landing passenger
XPD has reported strong H1 earnings with revenue up c.27% and adjusted PBT up c.74%; results were in line with our estimates. Revenue growth was strong across all three divisions - Freight Forwarding, Warehousing & Logistics and Transport Solutions. XPD benefited from continuing strong shipment and pallet flows in the CEE region, extra UK customs work related to Brexit, a partial turnaround in UK warehousing, and more DKV-linked fuel cards activity. Profit increased in Freight Forwarding and Tra
Companies: Xpediator Plc
Velocys continues to see supportive policies develop with the recent US proposed Sustainable Aviation Fuel tax credit adding to the potential attractiveness of projects in America. The company continues to progress its reference projects at Bayou in Mississippi and has provided technology under licence to Red Rock Biofuels in Oregon. Further policy support can only be helpful in growing opportunities for the company in North America in our view.
Companies: Velocys plc
Companies: Kier Group plc
Here we go again
Powerhouse’s partner HUI’s funding of long lead time items shows a commitment to the company’s first European project in our view. As with Powerhouse’s own funding of similar items at the initial UK project, this helps to de-risk the timeline and moves the company towards establishing a wider European market.
Companies: Powerhouse Energy Group PLC
Xpediator has announced a solid set of interim results, with revenue growing strongly across all three divisions, and group Adj PBT up c74% YoY to £3.6m. Xpediator has reaffirmed its FY21E Adj PBT guidance of in excess of £8.5m, with H2 being a seasonally busier period for the company. We update our forecasts to reflect increased expected working capital requirements during the year, leaving all other projections unchanged. Trading on a T+1 EV/EBIT of 10.8x, Xpediator remains at a 32% discount t
Companies: DX (Group) Plc
Companies: Staffline Group plc
Companies: SThree plc
Despite the challenges presented by the pandemic, TP Group Plc delivered strong organic revenue growth of c14% YoY in H1/21A, with Adj EBITDA increasing to £1.7m (H1/20A: £1.4m). Improving visibility leads us to upgrade our revenue forecasts by c4% for FY21E to £66.0m (90%+ of which was covered by the order book at H1/21A). Expanding margins in the Consulting division are expected to be offset by temporary margin pressure on Engineering contracts during FY21E (our £4.2m FY21E EBITDA remains unch
Companies: TP Group Plc
Oil gained a third week as investors focused on the ongoing production shut-ins in the US Gulf of Mexico as more refineries have resumed operations nearly two weeks after Hurricane Ida tore through the region.
Futures in New York posted its longest set of weekly gains since July after ending Friday 2.3% higher. More than a million barrels a day of US offshore crude production remains shut in after Ida swept through the area nearly two weeks ago. Meanwhile, more Louisiana refineries are resumi
Companies: FO 88E DEC EME GTC TRIN UOG WEN
H1 results reveal continued strong progress, with closing ARR up c.25% LFL at £6.6m driven by new subscription agreements, importantly validating CKT’s growing investment in sales and marketing with headcount doubling in H1. Meanwhile, CKT’s pipeline is up 4x since the start of the year so we anticipate growth to be maintained (or even accelerate) in H2. In this context, CKT is tracking comfortably in line with unchanged FY22 estimates, having achieved sales of £7.9m, ~53% of our full-year forec
Companies: Checkit plc