Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on MELROSE INDUSTRIES PLC. We currently have 3 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
MELROSE INDUSTRIES PLC
MELROSE INDUSTRIES PLC
Panmure Morning Note 03-03-2017
03 Mar 17
Perhaps they have been lucky (again) but the relatively short experience of managing Nortek seems to have encouraged the Melrose management to evaluate other under-performing businesses. Yesterday, the Chairman pointed out to me that the US is a particularly good hunting ground given the excessive emphasis on top-line growth. The fact that the management has already mentioned the possibility of selling Ergotron for c.£1bn suggests that multiple acquisitions (related and un-related to Nortek) are being considered. One possible target is Modine Manufacturing, currently valued at $600m, which is a competitor to Nortek in Commercial HVAC markets but also brings exposure to refrigeration and automotive markets. Addition of refrigeration products will allow Nortek to compete more comprehensively with Lennox, Paloma and United Technologies.
Increasing target price to 355p as margin improvement two year ahead of expectations
02 Mar 17
Nortek has achieved nearly 5% margin improvement in a year (from 8.7% to 13.4%), two years ahead of our forecasts. We cannot believe that this is entirely due to Melrose management so some of their actions are yet to feed through. We were expecting Nortek to deliver more value and faster than the market was expecting but today’s results show that the management is targeting top industry margins of 17-18% by 2019, if not earlier. We now expect Nortek to reach a margin of 16.5% by 2019, which increases our TP to 355p.
Lennox sets a higher margin benchmark
08 Feb 17
Quarterly reports of competitors in HVAC markets provide no clear read across for recent trading at Nortek’s Residential & Commercial HVAC business given the contrasting fortunes. While Lennox International beat Q4/16 expectations and guided in-line for 2017, Modine Manufacturing missed expectations and cut forecasts for Q1/17. However, Lennox reported record 2016 EBIT margins of 16-17% for its HVAC businesses. This compares with 2% and 8% we are forecasting for Nortek in 2016 and 2019, respectively, based on US GAAP, equivalent to what Modine is achieving today. As we discussed in our detailed note on 6th January, entitled Nortek should deliver more and faster, these margin uplifts are deliverable by just reducing inefficiencies in Nortek. However, we expect the management to be more ambitious and target Lennox’ margins. The risk to our forecasts remains on the upside.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)
Another positive verdict
20 Mar 17
Burford’s results for 2016 produced another outstanding set of figures. Revenue grew by 60% to $163.4m with strong growth in the litigation finance business and an additional boost from a secondary sale in the Petersen case. On an underlying basis net income grew to $114m, a 75% increase despite the investment in growing capacity which increased costs. A combination of ongoing investment and gains and increases on valuation saw the fair value of the litigation assets increase 67% to $559m, underpinned by a growth in invested capital to $394m. With the results statement there was an announcement of a further sale of 9% of the Petersen case at a valuation of 20 times the cost of investment.
Small Cap Breakfast
28 Mar 17
Path Investments—Publication of prospectus from the Energy Investment Company. Raising £1.4m. Admission due on or around 30 March | Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April | Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally. Fundraise TBC. Admission expected 7 April. | K3 | Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. | Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Tufton | Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.