Terminating coverage

Reducing leverage is top priority

Reducing leverage is top priority

Creating a global leader

Q1 trading update

WHI acquisition update

Another strong year

A strategically important year

Q3 trading update

Off to the Races

Strong H1 Drives FY21 Upgrades

Solid Q2 trading

Strategic partnership with Sports Illustrated

Diversification and scale for online success

The global online gaming market generated c £40bn of gross gaming revenues (GGR) in 2018 and newly regulating markets (the US) are expected to contribute to 7% CAGR to 2023 (according to H2 Gambling Capital (H2GC)). However, while regulated markets have provided significant opportunities for operators to date, government intervention remains a constant threat and legislation is tightening. Some mature markets (notably the UK) have been raising taxes and implementing regulatory burdens, which inc

LIBERUM: Loungers: LFLs consistent as ever, on the path to pre-Covid margins

LIBERUM: Topps Tiles: Strong year, but lowering forecasts on tough outlook

easyJet remains optimistic about the new FY, despite the Q1 challenges

easyJet’s FY23 results were broadly in line with the preliminary figures and the market’s expectations. The group is resuming a regular dividend distribution and expects to raise the pay-out next year. It continues to believe in a positive outlook for the FY, despite the Q1 net loss affected by the conflicts in the Middle East. No major changes are expected to our current estimates.

HeiQ - Reorganising, right sizing and re-focusing

HeiQ has published its FY22 and H1/23 accounts, noting difficult market conditions for its revenue generating businesses, which has impacted revenue growth in these periods. In light of the market deterioration, the company has taken steps to restructure the group to be more efficient, while implementing expense containment measures. The sudden market disruption in H1/23A saw HeiQ move into a net debt position of $2.1m. While we model the company becoming operating cash flow positive in FY24E, o

Focus on ‘sound’ long-term strategy overshadows in-line Q323

Entain reported largely in-line Q3 23 trading numbers, accompanied by an implied FY23 EBITDA downgrade. The latter was a result of unfavourable sports results as well as persistent regulatory headwinds. However, the bigger news was the update provided on the firm’s strategy and longer-term targets. While this means the near-term growth and margin trajectory will be slower than previously anticipated, the longer-term targets offer strong upside potential considering the currently-beaten-down valu

Assessing the key investment & valuation dynamics

We view XP Factory as a genuine growth stock. In this detailed note we show how it is capitalising on the secular themes driving the competitive socialising sector and generating superior site returns, organic growth and customer reviews. This is further enhanced by a strong set of interims, with an acceleration of LFL over the summer and no change to FY Dec’23 expectations. Prospects of a healthy future is backed by our base case 3-year EBITDA CAGR of 44% on steady state expansion, which rises

LIBERUM: Loungers: Going from strength to strength

LIBERUM: DP Eurasia: A very strong acceleration in the last four months

LIBERUM: The Liberum Leisure Digest: Encouraging updates, falling markets

Inchcape (INCH LN) - Solid overall performance

The main themes from the interim results continued throughout Inchcape’s third quarter, including progress on the integration of Derco, improving car supply, and strong margins.

Morning Note – 27 November 2023

Vertu Motors (VTU LN) - Expanding South West presence

Last week Vertu announced a complementary bolt-on acquisition of four sales outlets in the South West of England for an estimated cash consideration of £6.2m, further expanding its presence in the region. The Group is continuing its strategy of adding scale and strengthening brand partnerships. Today we make FY24 balance sheet and cash flow adjustments for the acquisition, reduce FY24 adjusted PBT by 1.5% due to the timing of the deal and acquisition costs, and add a small upgrade to adjusted PB

Motorpoint (MOTR LN) - Interim results

Motorpoint’s interim results (to 30 Sep) show the impact of low used car supply, demand headwinds, and higher interest rates that lead to an adjusted loss before tax of £3.7m (H1 2023: £3.0m profit). The Group’s previously announced cost cutting measures and efficiency improvements are starting to show a positive impact, with adjusted loss before tax narrowing quarter on quarter. It is encouraging to see a stabilising net cash position also. We think Motorpoint’s recovery is in its early stages

Initial Equity Trading Comments - 11 May 2023

ME Group - Price rises and increased usage driving growth

ME Group has reported a strong set of H1 results with sales up +25%, adj. PBT +68%, adj. EPS +60% and ongoing DPS +14%. The strongest performances were in photobooths in Europe, which benefited from price rises and increased volumes, and laundry in the UK, where there was a +11% increase in the number of machines. This progress was achieved despite a near flat installed base in photobooths, with the anticipated roll-out of next generation photobooths delayed due to supply delays, and a steady in