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The trading backdrop for SThree through the last three quarters has been
consistent; a challenging backdrop for new business, offset by resilience in
contract extensions and renewals for the contractor order book. Q3 paints a
broadly similar picture although the tone of commentary around new business
is more optimistic and we can now see a clear sequential net fee improvement
between Q2 and Q3 when we adjust for the offices restructured late last year
(Ireland, Hong Kong and Singapore).
Companies: SThree plc
Radnor Capital Partners
H1 results provide more detail, context and a more up to date take on the trading
environment following the Q2 trading update. The results lay clear the extent to
which SThree has been able to protect margins (unlike others in the peer group)
despite the significant investment in the Technology Improvement Programme,
which itself lays the ground for future margin outperformance.
The H1 trading update has confirmed the trends seen in the Q1 update. Contract extensions and renewals continue to outperform initial expectations whilst new business activity remains challenging.
Against a softening macro backdrop, the solidity of SThree’s Q1 net fee outcome; +4% YoY at constant currency (+9% post FX), speaks volumes to the resilience of SThree’s differentiated focus on both Contract (now 81% of net fees) and STEM disciplines. There are a number of moving parts beneath the headlines – Contract growth vs Permanent declines as well as a degree of regional variation – nonetheless the Q1 outcome was consistent with our full year expectations and we leave our estimates unchan
Companies: FOUR ESKN STEM TGA CMO
Final results show a performance that was significantly ahead of expectations at the start of the year. SThree also provided a great deal of detail around the technology improvement programme. This significant investment (£26m - £31m over the next two years with £4m already expensed) is a fundamental driver behind SThree’s strategic growth and margin ambitions and could see SThree move beyond a linear relationship between growth and sales headcount.
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The group has seen a very strong H1 performance, with decent momentum in Chain markets but driven by the strong increase in output in Cardiff in the TT division. Margins in particular saw a strong improvement with both divisions generating ROS of 16%. Order intake has continued to see some softer conditions, with ordering patterns normalising, although this results in a lower order book, particularly in Europe. On strong H1 results management expect FY24 to be ahead of expectations. We upgrade F
Companies: Renold plc
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Companies: FirstGroup plc
Treatt’s FY23 results show a significantly improved y-o-y operating performance, delivering revenue and profit growth alongside record cash generation. Sales in H223 were affected by the destocking of inventory from clients, although management notes early signs of this reversing. Particularly strong growth came from Treatt’s new markets segment (Coffee, China and Treattzest), up 61% y-o-y. Record cash generation resulted in net debt more than halving to £10.4m. Management is focusing on volume
Companies: Treatt plc
30th October 2023
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 obje
Companies: ARS TGIF CLBS SDG SOLI NTBR PHE SPEC INSG BCOW AEE
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.
Companies: TLOU PTAL HTG ENW ITM BLVN RKH HBR UJO GMS JOG MATD CEG GENL AXL
A possible deal for Velocys reflects a challenging funding environment for the company but gives some hope of continuity for the business. It comes as we are seeing demand starting to emerge at scale for sustainable aviation fuel and power-to-X solutions where Velocys has been a standout technology. However, project development takes time and the company needs backing that can reflect this.
Companies: Velocys plc
Longspur Clean Energy
Companies: Iofina plc
The group’s FY23 results were ahead of our upgraded expectations, benefitting from an exceptionally strong and record-high final quarter. Supply chains and lead times appear to be moving towards normality. The maiden contribution from YUK was ahead of initial expectations. The increase in EBIT margin to 9.8% shows pricing strength in an inflationary environment. With an upbeat outlook, guidance has increased, and we raise our FY24 EPS by 10% and FY25 by 11%. We maintain our TP at 58p, offering s
Renold’s AGM signalled a strong start to the year, with adj EBIT expected to be ahead of FY24 forecasts. Market uncertainties and cost pressures continue, with some end markets softening and order schedules shortening. Nonetheless, the group appears to be managing well in the circumstances. Last week, the group announced a small bolt-on acquisition of an Australian conveyor chain business. The deal is immediately earnings enhancing and offers significant identified operational synergies with Ren
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
Companies: Brickability Group PLC
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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
Companies: TClarke plc