Small Cap Feast

Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Alumasc Group plc, the prem ium building products, system s and solutions group, has announced its intention to m ove from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019 Argentex a UK-based forex servic

Reassuring interims, CS margins improving

WYG’s interims make reassuring reading this morning, confirming a stable performance in H1 and reiterating full year expectations. Consultancy Services has reported modest revenue growth and, importantly, an improvement in margins as a result of recent strategic initiatives. As a result Group operating profit increased slightly in H1 despite a decline in International Development (Turkey/IPA II hiatus). We see considerable scope for further margin enhancement over coming periods alongside improv

Morning Song

A G Barr (BAG LN) | Directa Plus (DCTA LN) | Genus (GNS LN) | RhythmOne (RTHM LN) | Sigma Capital Group (SGM LN) | Speedy Hire (SDY LN) | Swallowfield (SWL LN) | WYG (WYG LN)

Strategic actions offsetting market challenges

WYG’s AGM update reiterates full year guidance despite highlighting some softness in International trading. The performance year to date has been broadly in line with the prior year and management remains focused on delivering a sustained improvement in operating margins and cash generation. Net debt has increased to £15.0m, but full year net debt expectations (N+1 S:£9.4m) are unchanged with a £3m receipt anticipated in short order alongside a seasonally positive H2 working capital profile. Whi

Momentum screen refresh + 7 highlighted stocks

We report on the performance of our momentum style screen since the last refresh three months ago and present the 25 new constituents. The screen underperformed small-cap and microcap indices modestly, though our previous focus stocks did significantly better. While momentum (as we express it) has outperformed smallcap significantly since inception of the screen in July 2016, this has arisen in shorter periods and appears to only coincide with a steadily rising small-cap index. We therefore cons

WYG - Termination of coverage

Edison Investment Research is terminating coverage on WYG (WYG). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

WYG - Focusing on earnings recovery and cash

WYG faced a number of challenges in FY18 but ended the year with an improved market backdrop, higher divisional order books and benefits from management actions starting to come through. Guidance and our profit estimates are unchanged. With greater business stability and a focus on margins and cash generation (plus receding legacy issues) investors will be able to concentrate on the earnings recovery story. This may be partly discounted following a recent share price pick up, but in the context

Morning Song

Abzena (ABZA LN) Forecast update | Carclo (CAR LN) Review completed, reassuring outlook | Driver Group (DRV LN) Continued earnings momentum | Fulcrum Utility Services Limited (FCRM LN) In line results; Positive outlook supported by strong order book growth | Gooch & Housego (GHH LN) Good H1 18, well set for H2 and beyond | Harwood Wealth (HW/ LN) 9 H1 acquisitions adding £310m AuI, forecasts unch | Renold (RNO LN) Cautiously optimistic | Vp (VP/ LN) A year of significant growth and strategic pro

Signs of stability in H218; FY19 guidance maintained

WYG’s full year results contain few surprises. PBT was a fraction ahead of our forecast at £2.9m; net debt was better than expected at £6.3m (£8.0m forecast); and the full year dividend was maintained at 1.8p as expected (4.1% yield). H2 operating profit of £2.5m was more than double the H1 result, reflecting seasonal factors as well as the actions taken to address recent underperformance. The order book is growing in both business streams and WYG is now showing encouraging signs of stability. W

WYG - Steady end to FY18, slower growth expected

A more settled trading period saw WYG end FY18 in line with market estimates. Management continues to work on improving organisational efficiency and structure including exiting unprofitable business. We have lowered the rate of expected progress beyond the current year – in line with guidance – pending more detailed order book and revenue run rate information with FY18 results, which are scheduled for 5 June.

Morning Song

Microsaic Systems (MSYS LN) Agreement with Unimicro Technologies | Motor Retail Upcoming registration data likely to weigh on share prices | NCC Group (NCC LN) Disposal of Web Performance | Summit Therapeutics (SUMM LN) £15m placing to advance ezutromid development | The PRS REIT (PRSR LN) Delivering as expected, driving towards target | WYG (WYG LN) FY18 outturn in line; tackling underperformance

N+1 Singer - Morning Song 03-01-2018

Applied Graphene Materials (AGM LN) - AGM statement reiterates recent progress Applied Graphene Materials’ AGM statement reiterates the progress that was made during 2017, including the additional production orders secured, at modest volumes, and the active engagement pipeline (currently around 100). As we said at the time of the fundraise in October, relationships with industry-leading partners are deepening and, whilst timing of adoption remains difficult to predict, the market opportunity is

WYG - Looking forward

H118 results quantified the adverse effects of the slower development of revenues highlighted in earlier updates, but also provided more clarity on near-term trading visibility. Converting improved order positions to rebuild earnings and meet market expectations is necessary to underpin valuation metrics, which, in turn, will help to regain investor attention over time. In the short term, a 4.7% dividend yield offers income attraction.

N+1 Singer - WYG - Tackling H1challenges, targeting a return to growth

As trailed in trading updates in August and, more recently, in November, it has been a challenging period for WYG. We make no changes to our headline numbers today following recent downgrades, and take reassurance from the strength of the order book, which continues to move on to new highs. Legacy issues are still being addressed (a new £2.45m provision taken in H1 relating to discontinued businesses) but the underlying business is robust. Self-help measures should gradually restore margins, sug

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

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

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

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