This Week's AIM Highlights 10th February 2023

Hybridan Small Cap Feast - 08 Feb 23

08 February 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 objec

Morning Note – 8 February 2023

Renold - Trading update – 5.8% EPS upgrade to FY23 forecast

The group has announced a positive trading update for the 10 months trading to 31 January. This highlights strong trading has continued, with CER sales growth of 17.3%. order intake running ahead of sales and the successful recovery of raw material and energy cost increases. Cost efficiencies continue as planned. The acquisition of YUK continues to trade in line. As such, management states it expects underlying operating profit for the full year to be in excess of expectations. We therefore upgr

Hybridan Small Cap Feast - 17 Jan 23

17 January 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 object

Morning Note – 17 January 2023

Hybridan Small Cap Feast 16/11/22

Dish of the day Joiners: BWP REIT joins the Wholesale Segment of the International Property Securities Exchange (IPSX). BWP REIT is a newly formed single asset company and has raised £35m by issuing 35m new ordinary shares at 100 pence per share to acquire Bridgewater Place, an office-led mixed use property in central Leeds and valued at £63m. The property is one of the tallest buildings in Yorkshire, comprising 234,000 sq. ft of office space, and is close to 90% let to EY, as well as multinatio

Morning Note – 16 November 2022

Renold - Strong H1 result – robust H2 expected on strong order book

Interims show a strong performance in challenging markets. Underlying demand remained robust, with a strong uplift in order intake and record order book. Revenues were boosted by the YUK acquisition. Price rises have recouped input cost increases with internal efficiency measures also assisting margins. Debt has risen due to the YUK acquisition, but leverage remains comfortable at 1.2x rolling EBITDA The pension deficit has fallen further. Mindful of H2 challenges, but with a strong order book t

Morning Note – 6 September 2022

Morning Note – 4 August 2022

Renold - A tasty 16% EPS-enhancing Spanish acquisition

The group has announced the acquisition of YUK, a Spanish conveyor chain business, for a total consideration of €24m, funded from existing debt facilities. The acquisition is immediately EPS-enhancing and a strong bolt-on to the group’s existing European business. It enhances the group’s position in the Iberian market, where it is underrepresented, and enables cross-selling opportunities and other meaningful synergies and cost savings. Following identified cost savings, the acquisition multiple

Renold - Strong FY22 results – 10% EPS upgrade for FY23

Full-year results to the end of March were ahead of recently upgraded expectations, showing the group to be in a much stronger position both in terms of trading and balance sheet strength. Management has coped well with rising costs, with price increases recouping steel, energy and labour cost increases, and margins also gaining from the volume drop though. Cashflow has improved through better working capital performance with net debt at £13.8m, and is structurally much more sustainable than his

Renold - YE update ahead of expectations – EPS forecast raised 13.8%

The group has posted a stronger than expected year-end trading update, with robust sales and order book growth coupled with gains from cost reductions and with margins benefitting from the implementation of price increases ahead of raw material and energy cost increases. This results in underlying trading profit materially ahead of previous expectations, with a strong working capital performance resulting in a £4.6m net debt reduction to £13.8m. We upgrade our FY22 forecasts with a 13.8% increas

Hybridan Small Cap Feast - 21 Feb 23

21 February 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 objec

LIBERUM: Luceco* - Margin momentum coming into view

LIBERUM: Yü Group* - Strong momentum and cash flow

LIBERUM: Costain Group* - Free cash more than 50% market cap

Revised forecasts

Judges Scientific FY Results – Outstanding results, Steady organic, M&A delivers in spades

Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base (offsetting Covid-induced earlier weaker order intake from China, although rebounding in December 2022), total revenue increased an impressive 24% to £113.2m (organic basis 8%), buoyed by Geotek, with adjusted PBT increasing a substantial 56.7% to £28.3m (FY2021: £18.1m), 4% ahead of our estimate of £27

LIBERUM: Judges Scientific* - FY22 ahead of expectations

Supreme plc: disposal of T-Juice intellectual property

Supreme reports that it has entered into an agreement with an associated company of La Vape Professionelle Distribution (LVP), a leading French wholesaler of e-cigarettes and e-liquids, for the disposal of the intellectual property (IP) of T-Juice, inclusive of the Red Astaire brand. Supreme will receive an upfront payment of €4.5m (£3.97m) in respect of T-Juice brand IP, with the addition of income from consultancy services. The agreement ushers in a new strategic partnership in which Supreme

Hardide Update

The AGM statement reiterated the ‘cautious optimism’ that underpinned the group’s recent annual report (covered in our 9 February update). HDD is experiencing growth across all of its key markets; aerospace, energy and industrial products. First half revenues to end March 2023 are expected to come in around 7% ahead y-o-y. That will be sufficient to deliver forecast EBITDA breakeven in FY23 despite deferral of a c. £0.3m order into H1 FY24. That outcome underlines the success of initiatives to

LIBERUM: SThree* - Resilient Q1

SHORE CAPITAL - Judges Scientific+ (JDG, House Stock at 8,920p)

SP Angel Spec Sits: (YUG) Stellar 2022 Results + New Dividend Policy

YUG announced its full year 2022 financial results, which exceeded recently revised market expectations.

LIBERUM: Kier Group - Continued margin strength

EQTEC (EQT LN) - Italia MDC project operational

Italia MDC project now operational. EQTEC has announced that its Italia MDC project is now operational. The gasification and biochar facilities were commissioned in January, with the Jenbacher engine commissioned in March and first electricity export recently achieved. EQTEC expects full handover of operations before the end of March.

Powerhouse Energy - Irish JV Agreed

Powerhouse has agreed terms for a joint venture to develop a waste to hydrogen project in the Republic of Ireland on a strong-centrally located site. This will now be the company’s entry point into the Irish market. While the country has a plastic recycling rate of 29% it is highly reliant on exporting packaging material abroad for treatment and in-country solutions represent a wider opportunity for Powerhouse in our view.