The Industrial Revelation

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

The Industrial Revelation

BHP could revise down estimates if "viral outbreak is not well contained" in Q1 20, HeidelbergCement sees positive demand in 2020, Kone withdraws from Thyssenkrupp bid

Rotork - Preparing for acceleration

Rotork is ensuring the pillars are in place to deliver growth. The H118 report demonstrated end-market support, with order book growth across all divisions and solid operating performance. Management now has both the framework and the personnel in place to drive the initiatives on route to market, new product development and lean manufacturing.

Rotork - Investment driving growth

Rotork delivered broadly in line with FY17 expectations. Order book growth was encouraging while FY17 adjusted operating margin moved up from H117 to close to FY16 levels. Kevin Hostetler will take over as CEO from 12 March, completing the management transition in a timely manner. Determination to bring the company back to former growth and margin prospects is evident. The route map for the next three to five years is underpinned by investment in R&D and front-end services ensuring Rotork delive

Positioning for growth

Rotork is taking decisive steps to determine its future size and shape. The company is not in a holding pattern awaiting a new CEO. Executive chairman Martin Lamb has taken the reins and end-market dynamics are driving a rethink in regards to innovation and the company’s operating footprint. In addition, there is a considerable opportunity to drive aftermarket activity, with the benefits of improved visibility and profitability that should provide. In the short term, management’s FY17 expectatio

Profit warning = buying opportunity

Further to recent guidance that timing of order placement has become increasingly difficult to forecast, the group has seen a material decline in trading in August as the impact of the lower activity in the global oil & gas sector catches up with Rotork, suggesting the “late cycle” nature of group earnings.

New forecasts; investment case review

The November 2014 trading update highlighted flat revenues in Q314 despite the initial contributions from the acquisitions of Young and XFC, as currency more than offsets their positive contribution.

Supreme (SUP LN) - Initiation of coverage

FY24 Interim results: A record H1 performance delivered revenue growth of 62.5% to £105.1m (H1 FY23: £64.6m), with growth across all divisions: Batteries +1.4%, Lighting +21.8%, Sports Nutrition & Wellness +17.5%, Vaping +32.5% (ex- ElfBar) and Branded Distribution +798.9%, which includes revenue of £26.4m from the ElfBar distribution opportunity, commenced in June. Adj. EBITDA of £15.2m is +88.0% (H1 FY23: £8.1m) benefitting from higher sales, and operational efficiencies. Adj. PBT of £12.6m is

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

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

Morning Note – 28 November 2023

Morning Note – 29 November 2023

Supreme Plc+ (SUP, House Stock at 110p) - Exceptional H1 - 'significantly' raised FY24F guidance

Epwin (EPWN LN) - Confirmation of FY23 estimates and buyback announced

Epwin has released a brief trading update confirming that it is on track to meet FY23 estimates. It has also announced its intention to start a buyback, indicating the Board’s confidence in the business going into FY24, despite the volatile operating environment. Zeus leave profit estimates unchanged across the forecast period. This is a continuation of the performance over the last few years, the business has met or beaten consensus numbers since FY20, has not raised equity and managed its bala

Strong H1 results raise full year outlook

The H1 outcome was as indicated in the recent (18 October) Trading Update. Group guidance for the full year is now raised: from revenue of £195m - 205m to £210m - £220m (ED estimate was £204.2m); (adj.) EBITDA from £28m - £30m to £32m - £35m (ED estimate was £29.0m). From incremental EBITDA of c.£4.5m, c.£1.5m arises from core operations and c.£3.5m from the Elf distribution agreement, which supplies retailers including Tesco, Morrisons, One Stop and WHSmith. A series of initiatives – branding

PROGRESSIVE: Xaar: Market malaise drags into 2024

Xaar has released a trading update for 2023 that includes cautious commentary around 2024. The group is expecting a strong end to the year in terms of profitability, albeit with depressed revenue levels. Sales pressures are expected to continue in 2024 and, combined with downward pressure on prices and cost inflation, are likely to lead to a materially reduced level of profitability. We alter our estimates for both years to reflect the update. Although the group is clearly navigating tough marke

Epwin Group+ (EPWN, House Stock at 67p) - Trading update and share buyback

Making positive progress on all fronts

UK-Listed Energy Sector: Review of the UK oil and gas landscape – why the country needs it, current policy and tax

The front of this note takes a look at the UK oil and gas sector, why domestic production is advantageous, what the main political parties think, and what could happen going forward. The latter part contains a review of the companies in our coverage – some that are UK centric, which give exposure to the note’s wider theme, and others that are focused elsewhere.

Alenby Capital - Transense Technologies - Update

In its AGM trading update today, Transense Technologies plc announced 13% yoy revenue growth in the first four months of the year to June 2024 and a threefold increase in PBT. Although showing encouraging yoy growth, revenue in the period was somewhat below management expectations, however, an improving outlook suggests an acceleration of revenue growth for the remainder of the financial year. Consequently, the Board expects to meet full year market expectations. The cash position is also robust

James Cropper + (CRPR, House Stock at 725p) - Directorate changes

Plant Health Care - Outperforming the unprecedented destocking

Plant Health Care has announced a trading update, noting that market conditions in the wider agriculture market have deteriorated but that it continues to outperform the wider market with growth in all regions except the US. In the US, aggressive inventory destocking means orders that were expected in 4Q FY23 are now projected in early FY24. Plant Heath Care therefore now anticipates revenue for FY23 to show flat to modest growth over FY22 (which compares to the crop protection sector where reve