US & German manufacturing PMI hits lowest readings since 2009, UK manufacturing PMI heads below 50, BorgWarner expects material financial impact from customer production halts
Companies: AVON CGS HAYD HEAD HILS JHD RNO SCPA TWD TRI ZTF SOM GHH
Japanese PMI falls to lowest level since 2009, GE Aviation cuts 10% of workforce, Kone downgrades 2020 outlook
Companies: CGS HAYD HEAD HILS JHD OXIG RSW RNO TWD ZTF SOM GHH
Airbus secures €15bn credit facility but partially restarts production in France & Spain, Cummins suspends production and FY20 guidance as customers shutdown
Companies: CGS HAYD HEAD HTG OXIG RSW RNO ROR TWD TRI ZTF GHH
German sentiment posts largest fall since 1991, US non-residential construction backlog rose in Jan, Daimler suspends European production for (initial) 2 weeks
Companies: CGS JHD OXIG RSW RNO SCPA TRI ZTF SOM GHH
New York Empire State Manufacturing Index falls to lowest reading since 2009, Boeing reports need for short-term funding as S&P downgrades rating to BBB
Companies: CGS HAYD HILS RNO SCPA TWD TRI ZTF SOM GHH
China's industrial production falls 13.5% y/y across Jan-Feb, UK manufacturing body expects 2.1% fall in output in 2020, Fiat Chrysler & Ferrari suspend production
Companies: CGS HAYD HEAD HTG OXIG RSW RNO SCPA TWD TRI ZTF GHH
India's industrial production rises ahead of estimates in Jan but autos production falls 18% y/y in Feb, Caterpillar dealer stats show 11% y/y fall in sales for Feb
Companies: HILS RSW RNO SCPA TRI ZTF SOM GHH
UK GDP flat in Jan missing estimates, Japan's machine tool orders fall 30% y/y in Feb, Boeing falls 18% yesterday as draws down loan
Companies: CGS HAYD HEAD HILS HTG JHD OXIG RSW RNO ROR SCPA TWD TRI ZTF SOM GHH
German industrial production rose above expectations in Jan, Taiwan's exports rise in Feb but expect March decline, US machine tool orders fall 34% in Jan
Companies: CGS HAYD HEAD HILS HTG JHD OXIG RSW RNO SCPA TWD TRI ZTF GHH
Oil price falls 30%, Chinese exports fall 17% in Jan-Feb, Japan's Q4 GDP revised down to 7% fall, Continental forecasts 2020 decline in global car production
Companies: AVON CGS HAYD HEAD HILS HTG JHD OXIG RSW RNO ROR SCPA TRI ZTF SOM GHH
US ISM manufacturing falls to 50.1 in Feb missing estimates, India's manufacturing PMI falls in Feb to 54.5, US construction spend rises ahead of expectations in Jan
Companies: HAYD HILS OXIG RSW RNO ROR SCPA ZTF GHH
US durable goods falls less than expected in Jan, Japan and South Korean industrial production beat Jan estimates, CRH sees growth in US construction markets
Companies: AVON CGS HAYD HEAD HILS JHD OXIG RSW RNO SCPA TWD TRI ZTF SOM GHH
South Korean manufacturing confidence falls, North American truck 8 orders declines m/m in Jan but is up y/y, Weir sees challenges in North American oil & gas
Companies: CGS HTG OXIG RSW RNO SCPA ZTF SOM GHH
Companies: CGS JHD OXIG RSW RNO SCPA ZTF SOM
UK & German PMI beats estimates for Feb while US misses, John Deere sees "early signs stabilization in US farm sector" as it beats Q1 FY20 rev. estimates
Companies: CGS HILS HTG JHD OXIG RNO SCPA TWD TRI ZTF SOM
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SigmaRoc has this morning announced that it has acquired two Belgian ready-mixed concrete businesses for €13m. These will be added to Stone and the aggregates assets at Granulats du Hainaut to form a second heavy construction materials platform in Belgium. We expect this platform to grow over time as there should be significant opportunity for a nimble and efficient operator like SigmaRoc to become an important independent supplier to the market. We will update our estimates on full year results next week. We raise our target price to 86p to reflect the incremental EBITDA likely from this platform in the year ahead.
Companies: SigmaRoc Plc
Spectra Systems Corporation, a leader in machine-readable high speed banknote authentication, brand protection technologies, and gaming security software, has this morning announced that it has received a notice of allowance from the United States Patent and Trademark Office for its technology relating to the disinfecting of banknotes from SARS-2 and other biohazards (BDS-1000 Banknote Disinfection System – and not to be confused with Aeris which cleans and disinfects and is targeted at central banks). Patent applications have been made in other countries also.
Companies: Spectra Systems Corporation
AFC announced another exciting strategic partnership this time with Altaaqa operating one of the world’s largest rental fleets of mobile diesel modules with 2GW of capacity. We believe the growth potential from this could be material, and further underlines the exciting future ahead. We re-iterate our positive stance and remain comfortable with our 191p target valuation.
Companies: AFC Energy plc
The UK market showed a continued recovery in the first quarter albeit the indices are still well short of their all-time peaks, unlike many of their international peers. The FTSE 100 has risen by 1,186 points (21.4%) since the end of October and the FTSE 250 by 4,304 points (25.0%). The comparable performance since the start of the year is less spectacular- the FTSE 100 has risen by 253 points (3.9%) and the FTSE 250 has risen by 1,070 points (5.0%). The factors behind the sustained rally are familiar. The belief that the roll-out of the vaccine and some relaxation of lockdown limitations will lead to a significant economic recovery, compared to the collapse seen in the first half of 2020, due to lockdowns. Indeed, the recent economic picture is becoming more optimistic than previous expectations. According to the ONS, the economy grew a little more than initially estimated in Q4 last year. This means GDP for 2020 as a whole contracted by 9.8%, revised up marginally but still the worst contraction on record. Markets, in general, have focused upon the potential scope and extent of the recovery. The sectors and stocks that have outperformed have been seen as ‘recovery’ plays with a rotation from stocks seen as ‘lockdown’ winners into those set to benefit from the ‘unlocking of society’ and/or exposed to the consumer. We expect 2021 will continue to be a “stock-picker’s” market. The sharp increase in the household savings ratio in Q4 highlights the scope for a recovery driven by expenditure. As further lockdown limitations are lifted, evidence of this growth will help to underpin the more optimistic outlook for Q2 and beyond.
Companies: AMYT ARBB BPC BAG BVC BEG BONH BLVN BRSD CML CWK CRPR EYE ECHO FDM FAR FA/ GPH GSF HUW INSE JDG KAPE KP2 MACF MPAC MNZS NESF NBI OTMP OBD PREM QFI RUA SCS SEN SOS SUR TON TOU TXP TGL TCN UEM VLS WYN
Wickes to demerge from Travis Perkins and list on the Main Market. Expected 28 April. Advance Energy to complete an RTO on AIM indirectly acquiring up to 50% of Carnarvon Petroleum Timor which holds a 100 per cent. working interest and is the contractor under the Buffalo PSC, offshore Timor-Leste. Carnarvon Petroleum Timor is a subsidiary of ASX listed company, Carnarvon Petroleum Limited. The net proceeds of the Placing of approximately £20.01m (approximately US$27.51mm) will be used to fund the Acquisition. Due 19 April. NFT Investments plc is an investment company that specialises in non-fungible tokens (NFT). Has applied for admission to the Access segment of the AQSE Growth Market. No funds being raised. Due 16 April. Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 2021. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.” MAST Energy Developments (MED) is to IPO on the Standard List on 14th April 2021 under the ticker MAST. The company has raised £5m giving a market capitalisation on listing of c. £23m. MED is currently a 100% subsidiary company of AIM quoted, Kibo Energy*. MED was established to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market. PensionBee has confirmed its intention to float on the High Growth Segment of the Main Market of LSE. The online pension provider had approximately 130,000 Active Customers and £1.5bn of assets under administration, in each case as at 28 February 2021. The Offer will comprise new Shares raising gross proceeds of approximately £55m and existing Shares to be sold by certain existing small minority shareholders of up to £5m. None of the founders, directors or members of senior management of PensionBee are selling any existing Shares. Expected in April. Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc. With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m Expected April 2021. Proposed move to AIM from the main market (standard) by Emmerson (EML.L) to provide Emmerson with access to a market and environment which is more suited, in the Board's view, to the Company's current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development work. NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company's target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021. Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021. Fix Price announces its intention to float on the Main Market of the London Stock Exchange. Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company. Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA. Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT's investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance.
Companies: ARG ADT UKOG PHAR UNG CYAN FA/ SNX VRE SHED
While SIMEC Atlantis faces policy driven uncertainty it continues to make progress and there are signs for optimism in our view. In particular the progression of CCUS options at Uskmouth make the project attractive from a national policy point of view, potentially delivering a negative emissions solution while providing flexible generation and spinning reserve.
Companies: SIMEC Atlantis Energy Ltd.
Kevin Freeguard, Gattaca
Companies: Gattaca plc
CyanConnode has announced an excellent year end trading update with revenue for the year exceeding market expectations, at an all-time high and more than double the 15 month previous period. With material growth pencilled in for FY22 and substantial market opportunities beyond, we believe the Group has turned the corner and see strong share price performance over the next 6-12 months and likely earnings upgrades. Reiterate buy.
Companies: CyanConnode Holdings plc
Invinity Energy Systems (IES), has a long-term sourcing agreement for vanadium with Bushveld Minerals (BMN.L) who in turn have right of first refusal to supply vanadium and vanadium electrolyte for Vanadium Flow Batteries (VFB’s) sold by IES. BMN via its subsidiary, invests in VFB manufacturers and its first investment was US$5 million in IES to aid the merger of Avalon Battery and redT energy. On April 1st 2021, BMN announced that it had been reducing its shareholding in IES and that proceeds from share sales would be used to fund initiatives in 2021, including Vanadium Electrolyte Rental Limited ("VERL"), the partnership established with IES to rent vanadium electrolyte but also to enable Bushveld to invest in Enerox GmbH, an Austria-based VFB company. BMN has reduced its position from 7% in 2020 to below 3% which, in conjunction with an increase in sector volatility, has been responsible for the 30% decline in the IES share price YTD.
Companies: Invinity Energy Systems PLC
In the past few weeks, all the listed multi-national pharmaceutical companies have reported results for 2020, which has given us the opportunity to update our industry statistics and drug database. This report provides the first, snapshot publication of global and US rankings of the top 20 drug companies for 2020. Comparisons are made with historical data to show how different company strategies have evolved. In addition, summary analysis has been provided for the sales evolution of therapeutic biopharmaceutical drugs, which saw sales rise 5.6% to $245bn, representing 26% of the market, driven by antibody-derived drugs.
Companies: AVO ARIX BBGI CLIG DNL FLTA ICGT OCI PCA PIN PXC RECI STX SCE TRX VTA YEW
The Budget offered a clear picture of the state of the economy. Put simply, the economy will be 3% smaller in three years’ time than it would have been without the impact of the pandemic. However, it is forecast to return to pre-pandemic levels by mid-2022, six months earlier than previously thought. The OBR forecasts that the UK economy will grow by 4.1% in 2021, (lower than the 5.5% outlined in November 2020). It has set its GDP forecasts in 2022, 2023 and 2024 at 7.3%, 1.7% and 1.6%. Positively, we have a continuation of substantial support for various parts of the economy – totalling £350bn. The market may focus on two elements. Under the so-called “super-deduction scheme, businesses which invest in the next two years will be able to claim 130% of the cost against their tax bill. This is significant but also significant is the proposed increase in corporation tax on profits from 19% to 25% in 2023. This has material consequences. Looking that far ahead is not straightforward. The increased tax charge will inevitably impact ratings. This may not be a consideration currently but may become one as more FY2023 estimates are introduced. Closer to home, we have continued to see most results/updates in line with expectations. An increasing number of companies have restored dividends. M&A across a broad range of sectors also looks set to continue.
Companies: AMYT ARBB BPC BVC BEG BRSD BWNG CBOX CTG CLG CML CWK EYE ECHO EML ESC FBD FA/ GSF HTWS INSE JDG MACF MTW NESF NAVF NSF NBI OTMP PCF PPC QFI SAVE SEN SNX TGL UTL VLS WYN
West Texas Intermediate (WTI) and Brent crude oil futures posted solid increases Thursday. WTI for May delivery gained $2.29 to settle at $61.45 per barrel. The benchmark traded within a range from $58.86 to $61.75. The June Brent futures price closed at $64.86 per barrel, reflecting a gain of $2.12. Oil futures received a boost from the OPEC+ group of major producers' decision to ease output from May to July. The May reformulated gasoline (RBOB) contract price added less than a penny to end the day at $2.02 per gallon. Henry Hub natural gas futures also rose Thursday, with the May contract settling at $2.64 – a three-cent increase from the previous day. Rigzone.
Companies: FO 88E DGOC EME GTC TRIN UOG
This morning Avon released its post-close trading statement for H121, which shows strong top-line growth and order intake. Trading continued to show progress, in line with management expectations for Q221, continuing the Q121 performance noted at the AGM. Management expects to meet FY21 consensus expectations, with growing momentum during H221 as new contract volumes build. We trim our above-consensus FY21 EPS estimate by 4% and maintain FY22, which are reported in US$ from the current year. Avon’s shares trade at a healthy premium to UK defence peers, warranted by top-line growth, high returns and strong cash flows.
Companies: Avon Rubber p.l.c.
Last Thursday's intra-day announcement from AFC Energy that it has signed an MoU with the owner and operator of one of the world's largest diesel generator rental fleets is another milestone on the road to a hydrogen powered future fuelled by AFC Energy's technology.
Following the latest trading update, we have increased our earnings estimates again. Trading momentum is expected to continue beyond the year end and we now expect dividends to normalise more quickly. Although there are still some market issues to contend with (most obviously easing COVID-19 restrictions and a tight freight industry), recent updates suggest the company is meeting the challenges well.
Companies: Norcros plc
