Hybridan Small Cap Feast - 12 Sep 23

12th September 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 ob

Morning Note – 12 September 2023

Smart Metering Systems - Solid H1/23 – another forecast upgrade

Smart Metering Systems (SMS) released strong H1/23 interim for the period to 30 June 2023 with ILARR up 18.2% to £110.0m and revenue up 26.5% to £79.3m. We have upgraded FY23E and FY24E revenue and adjusted EBITDA forecasts following higher ILARR indexation, increased meter transactional activity, and higher average rental from single-fuel I&C smart meter installations. SMS’s high proportion of index-linked revenues provide a natural hedge against a higher interest rate environment whilst signif

Cenkos: Smart Metering Systems Plc -- H1/23 underpins deep discount to valuation

Smart Metering Systems (SMS) H1/23 trading update confirms FY23E underlying EBITDA and underlying PBT are expected to be in line with expectations. Automatic indexation on meter and data asset revenues provides robust protection against short-term interest rate rises, increasing ILARR and future long-term cashflow. SMS shares are trading on 14.4x FY23E EV/EBITDA, with a 4-year underlying EBITDA CAGR of 15.7% and at a significant discount to our long-term 1,497p DCF valuation. Taking just the H1/

Hybridan Small Cap Feast - 06 Jun 23

6th June 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

Cenkos: Smart Metering Systems Plc -- Strong results - FY23E & FY24E upgrades

Smart Metering Systems (SMS) has announced strong FY22 results in-line with January 2023 upgraded forecasts. The smart meter installation run-rate accelerated during FY22, with 480,000 meters installed, ahead of expectations. With the installation run-rate reaching 45,000 meters per month during H2/22, SMS is on track to install an expected 600,000 meters in FY23E. The battery storage portfolio increased to 760MW by FY22 and has grown further to 860MW as of 13 March 2023. The first 140MW of batt

Cenkos: Smart Metering Systems Plc -- FY22 trading update –another upgrade

Smart Metering Systems (SMS) has announced a FY22 trading update indicating a strong operating and financial performance during FY22, with underlying EBITDA expected to be marginally ahead of expectations and adjusted PBT materially ahead of expectations. The smart meter rollout programme continued to accelerate, with H2/22 seeing an average of 45,000 meters per month being installed. The battery storage portfolio increased to 760MW, with 140MW now live and trading significantly ahead of initial

Cenkos: Smart Metering Systems Plc -- Strong H1/22 – FY23E forecast upgrade

Smart Metering Systems (SMS) has announced strong interim results, underlining the resilience of and visibility within the business model. The smart meter rollout programme is accelerating, with over 40,000 meter per month being installed and c70% of SMS SMETS1 portfolio meters now enrolled on the DCC platform. The battery storage portfolio has grown to 760MW, with the first 50MW project trading ahead of initial expectations. SMS is especially well placed to absorb inflationary pressure, with H1

Cenkos: Tech Download for the Week -- LBG Media, DotDigital, Solid State, XL Media, Smart Metering Systems, Arqit Quantum, Brave Bison, Clean Power Hydrogen

Enclosed is our weekly download of technology news and updates from technology-focussed UK companies.

Cenkos: Smart Metering Systems Plc -- Robust trading ahead of forecasts

SMS has announced a solid trading update, with underlying EBITDA and PBT marginally ahead of forecasts, mainly driven by a “well ahead of Board expectations” performance of the Burwell grid-scale battery project and the annual meter rental RPI indexation on 1 April 2022 (4.3%). The battery pipeline has also increased to 760MW. ILARR has increased 8.4% over H1/22 to £93.1m, with the smart meter portfolio increased to 1.9m meters. The current meter installation pipeline is 2.42m including a new 0.

Hybridan Small Cap Feast 21/06/2022

Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Visum Technologies seeking admission to The AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June. LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends

Cenkos: Smart Metering Systems Plc -- Accelerating CaRe asset strategy

SMS has announced two strategically important investments this morning, in line with the strategy presented during the CMD in June 2021 (DOWNLOAD). The first investment is to acquire an initial 25% holding in Clenergy EV, a software business with a Charge Point Operator platform and the second to acquire 100% of n3rgy Data, a data software business providing direct access to smart meter consumption data from the DCC. Total consideration for these investments is an initial £3.4m. Clenergy enables

Cenkos: Smart Metering Systems Plc - Continued strong momentum

SMS released an AGM update this morning confirming that it is currently trading in line with the Board's expectations, with solid growth in index linked annualised recurring revenues (ILARR) to £91.4m, continued strengthening in the meter installation run-rate (with further improvement expected throughout the year), strong performance of the first 50MW of batteries and further expansion of the grid-scale battery pipeline to 710MW. The balance sheet remains strong with £63.3m cash and £420m undra

Supreme (SUP LN) - Record performance, EBITDA ~doubled

Supreme’s FY24 trading update confirms a record performance in the 12 months to 31 March 2024. Organic revenue and profit growth across all four divisions has driven Group revenue +45% YOY to £225m, with FY24 adj. EBITDA almost doubling to ‘at least £38m’, driving record levels of cash generation. Supreme is actively exploring complementary M&A, supported by a debt free balance sheet. Trading on an undemanding FY25 PE of just 6.7x, with a 3.4% yield, we believe downside risks are more than price

Morning Note – 22 April 2024

Supreme+ (SUP, House Stock at 125p) - Supreme, Supreme!

Morning Note – 25 April 2024

Vianet Group: FY24 trading update, strategic contract win

Vianet has published a positive trading update for FY24 with turnover up 7.6% to £15.18m, a 3.5 percentage point increase in gross margin YoY, and adjusted EBITA ahead of market expectations. Net debt continues to fall and closed FY24 at £1.52m (£2.1m at 30 September 2023), demonstrating strong free cash flow generation, even without the benefit of the £0.9m tax receipt received in 1H24, which augers well for a final dividend. The company reported a new contract with Wilcomatic Wash Systems, the

SP Angel Spec Sits: FY Trading Update (LTHM)

Vianet - FY24 ahead, strategic forecourt customer win

Vianet’s FY24 trading update shows FY24 revenue +1% ahead of our previous forecast, adjusted EBITA +2% ahead, EFCF and net debt +£0.6m ahead, and a strategic new customer win with prominent forecourt operator Wilcomatic. A robust FY25 pipeline and outlook leads us to reiterate our FY25E forecasts at this point, with the update highlighting: strong progress renewing and winning new customers on 3-5 year contracts as they migrate from 3G to Vianet’s advanced 4G LTE solutions; the successful integr

Headlam Group - Strategy for growth in tougher market

Headlam Group has laid out an ambitious long-term revenue target of between £900m and £1bn, as it seeks to grow its share of the UK floor coverings distributor market. Despite a challenging backdrop due to the low level of residential housing transactions, management is seeking to expand each of its sales channels: Trade Counters, Larger Customers, Regional Distribution and Europe & Other. The FY23 results reflected the more challenging environment and the group trades at a discount to its long-

Norcros (NXR LN) - Sale of Johnson Tiles UK streamlines the business and improves operating margin

Norcros has announced the sale of its Johnson Tiles UK business to the current management team for a consideration of £1.0m, with a further modest earnout based on the equity value of the business, both payable in April 2028.

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Renewi - Solid trading and better cash generation

Renewi’s FY24 trading update was in line with management’s expectations and its improved cash generation is reassuring for investors. Attention is now likely to turn the strategic review of the UK Municipals with management stating that they remain on track to update markets by the end of June. This could lead to an exit of key liabilities and leave Renewi as an attractive circular economy investment with strong market positions and organic growth plans, which should assist in generating value,

SP Angel Morning View: Copper prices hit $9,700/t as China smelts concentrates for zero charge Tc/Rc

Hybridan Small Cap Feast - 24 April 24

24th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

LIBERUM: Ilika: CMD confirms operational progression

LIBERUM: Gattaca: Resilient contract performance, perm tough