Hybridan Small Cap Feast - 25 Mar 24

25th March 2024 @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

Hybridan Small Cap Feast - 27 Mar 23

27 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

Small Cap Feast

Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in spor

2020 guidance withdrawn

It will be unsurprising to note that we have withdrawn our 2020 estimates and price target for RTC given the lack of visibility in earnings which is consistent with other recruitment companies. In its favour, RTC does offer defensive qualities with activities in the public and regulated sectors (infrastructure and railway transportation) all providing contract workers which are vital to the country. The indications are that these activities will continue. The international activities (supplying

Not your typical recruiter

The 2019 prelims are a clear endorsement of RTC’s strategy with gross profits and dividend meeting expectations, and net debt declining from £4.5m to £2.8m. PBT came in at £1.8m, the same as last year. Due to the diversified source of earnings (65% of revenues are from recurring sources and are non-cyclical), a clear distinction between RTC and its small-cap recruitment peer group is emerging. This, we believe is starting to be recognised and while the shares have started to perform (up 27% YTD)

Benefits from non-UK, non-cyclical, activity

RTC has reported EBIT of £0.8m (2018: £0.8m) for the six months to June 2019 and delivered increased cash from operations of £1.1m (1H2018 it was an outflow of £1.3m). RTC’s sole source of financing is its invoice discounting facility, utilisation of which has reduced from £6m at June 2018 to £4m. It has also grown the interim dividend by 7.7% to 1.4p. Looking forward, its non-UK and non-cyclical activities, i.e. GSS and Ganymede continue to trade well, though to reflect the subdued trading envi

Small Cap Feast

Freyherr International Group PLC the Medicinal Cannabis holding company established in 2016, is planning to list on the NEX exchange on the 13 August.

Small Cap Feast

Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer to raise £61.6m at 200p with market cap of £185m, expected 29 April 2019. SDX Energy plc—a North Africa focuse

HCM UPDATE - 04.03.19 (RTC.L; RWA.L)

RTC Group plc (RTC.L, 62p/£9m) Full year results to 31.12.18 (25.02.19) | Robert Walters plc (RWA.L, 589p/£445m) Full year results to 31.12.18 (01.03.19)

‘Highly optimistic about its future’

The 2018 prelims not only addresses the two concerns raised at the interims of meeting full year expectations and reducing the net debt, they also highlight the success of the strategy of gaining exposure to engineering, manufacturing and infrastructure markets on long term contracts with bluechip clients in the UK and overseas. Following confirmation of organic PBT growth of 58%, the best in the sub-sector, we have increased our price target from 95p to 100p. With RTC trading on a 2019 PE ratin

HCM UPDATE -28.01.19 (CPS.L; EMR.L; HYDG.L; NAK.L; RTC.L)

CPL Resources plc (CPS.L, 525p/£144m) Half year results to 31.12.18 (24.01.19) | Empresaria Group plc (EMR.L, 66.5p/£32.6m) Full year trading update to 31.12.18 (23.01.19) | Hydrogen Group plc (HYDG, 63p/£21.3m) Full year trading update to 31.12.18 (25.01.19) | Nakama Group plc (NAK.L, 1.025p/£1.2m) Q3 trading update to 31.12.18 (21.01.19) | RTC Group plc (RTC.L, 56.5p/£8.3m) Full year trading update to 31.12.18 (25.01.19)

Estimates confirmed

RTC has released a favourable trading update for the 12 months to December 2018, confirming PBT of £1.8m, representing growth of 54% and a reduction in net debt from June 2018 levels. Trading on a 2019 PE rating of 5x and offering a dividend yield of 8% we maintain our buy recommendation and price target of 95p. At this level, the 2019E PE rating and dividend yield would still be only 8x and 4% respectively.

Small Cap Feast

Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Circassia Pharma (CIR.L) - specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual li

HCM UPDATE - 06.08.18 (GATC.L; RTC.L)

Gattaca plc (GATC.L, 136p/£43.7m) Full year trading update | RTC Group plc (RTC.L, 55p/£8m) Half year results

Upbeat interims confirm full year forecast

Adjusted PBT at the interim was £0.83m representing growth of 27% with management remaining confident of ‘continuing the performance in the second half’. Trading on a 2018 PE of 6x and offering a dividend yield of 7%, having increased the interim dividend by 8%, we maintain a buy recommendation and price target of 95p (72% upside). At this level, the 2018 PE rating and dividend yield is still only 9.5x and 4% respectively.

Renold - Strong end to FY24: EPS up 11%. Robust FY25: EPS up 27.6%

The FY24 year-end update is very upbeat signalling trading being materially ahead of expectations, with a better-than-expected profit out turn and stronger cash generation. It continues to strengthen margins through efficiencies and investment in modern equipment. The order book remains close to record levels providing a robust view of future forecasts. In FY24E we upgrade EPS by 11% and in FY25E a significant upgrade of 27.6%. It looks capable of declaring a dividend in FY25 as well as manageme

Morning Note – 16 April 2024

Billington Holdings - Record result boosts dividend; forecasts upgraded

FY23 results show very strong growth over FY22, driven by strong Structural Steel activity, with results slightly ahead of upgraded profit expectations, while stronger than expected cash flow resulted in an unexpectedly generous dividend of 33p (offering a FY23 yield of 7.0%). The group now has net cash of £22.1m and is debt free and is therefore in a strong position for potential M&A activity. Following the recent £90m of new orders to increase the order book to record levels we conservatively

Q1 Operating Results

Another Good Year of Diversified Growth with More to Come in 2024 CCapital have released their Q1 operating results. Overall, revenue has come in slightly lower than expected at $80.2m vs TamE of $85.9m but is largely tracking in line with our FY24 annual estimate and we note the company has maintained guidance. Drilling revenue for this quarter was impacted by a fall in utilisaztion rates as well as general remobilisation geographically but we expect a strong recovery throughout the year as k

Plant Health Care - China distribution with AMVAC

Plant Health Care announced it has signed a distribution agreement with AMVAC, an American Vanguard Company, to support commercialisation of novel fertiliser products incorporating Plant Health Care's Harpinαβ in China starting in 2024. The novel product combines Harpinαβ technology with an AMVAC fertiliser and is expected to help growers improve crop quality and yield as part of an integrated and environmentally responsible crop production programme. AMVAC continues to evaluate Plant Health Car

Morning Note – 15 April 2024

discoverIE - Back to organic growth

discoverIE’s March year-end update confirms a strong operational performance in challenging markets. Following two years when sales increased by +48%, FY 2024 Group sales were +1% ahead of 2023 at CER (reported -3%) driven by a +2% contribution from acquisitions and organic -1%. As expected, organic growth returned in the later part of the year (Q4 +2%, +11% sequentially) and the order book has reverted to normalised levels of c.4.5 months’ sales, which – combined with a continuing strong pipeli

Severfield - Multiple positives should excite investors

Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appear

Warns on brine supply costs

SP Angel . Morning View . Copper prices hold higher as China processing fees fall below $0/t amid low feedstock availability

PROGRESSIVE: Severfield: Targeted acquisition strategy aids growth path

Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.

LIBERUM: Severfield: Erratum: Better EPS and cashflow, and buyback

Invinity Energy Systems - Update on Strategic Investment

Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.

PROGRESSIVE: Severfield: Step change in European and Indian outlook

Severfield’s full-year results to March will be ‘slightly above’ the Board’s expectations, according to today’s trading update, with net debt significantly better. We maintain our PBT estimates for both forecast years, which are ahead of consensus, but reduce our net debt for FY24E. Record orders were boosted by the steel specialist’s European operations, after last year’s Voortman acquisition, while the Indian JV has seen ‘another step up in profitability’. The group has also launched its first

Clean and competitive fertiliser