Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
Companies: AMYT BAG BVC BRSD CLG CML FBD GDWN INV MACF MNZS MIO NRR NSF NBI MATD PREM QFI RUA SCS STVG SUR SNX UPGS VAST VLS
The UK market showed a continued recovery in the first quarter albeit the indices are still well short of their all-time peaks, unlike many of their international peers. The FTSE 100 has risen by 1,186 points (21.4%) since the end of October and the FTSE 250 by 4,304 points (25.0%). The comparable performance since the start of the year is less spectacular- the FTSE 100 has risen by 253 points (3.9%) and the FTSE 250 has risen by 1,070 points (5.0%). The factors behind the sustained rally are fa
Companies: AMYT ARBB CEG BAG BVC BEG BONH BLVN BRSD CML CWK CRPR EYE ECHO FDM FAR FA/ GPH GSF HUW INSE JDG KAPE KP2 MACF MPAC MNZS NESF NBI OTMP OBD PREM QFI RUA SCS SEN SOS SUR TON TOU TXP TGL TCN UEM VLS WYN
In the last fortnight, we have surrendered some of the notable progress made over the last three months. That said, the optimism displayed by markets, driven by progress with vaccines and their rollout, persists. The recent direction of markets has been set by volatility in US markets, driven by specific retail market developments. Domestically, we have seen a broadly upbeat procession of results and trading updates/outlooks have, generally, been at least in line. The share price reactions have
Companies: AJIT ARW CEG BVC BAG BEG BON BWNG CLG CRPR EYE ECHO EPWN FDM FA/ GPH GNC HUW INSE KAPE KP2 MNZS NMCN NRR OBD PPC QFI ROL SAVE SCS SEN SOS SUR SNX TON TMG TGL TCN UEM VLS W7L WINK WYN
Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m.
SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2
Companies: RBD EUA AVAP MNZS MIND NASA MRL LOK EDR
Under investor pressure, Menzies has decided to hive off distribution business and sell to DX
Companies: John Menzies plcDX (Group) Plc
Amino Technologies (AMO LN) Software licencing contract win | Earthport (EPO LN) Strong momentum going into FY’17 | H&T Group (HAT LN) Interims in-line, potential earnings catalyst if gold price sustained | John Menzies (MNZS LN) Aviation recovering; currency tailwind drives upgrades | PROACTIS Holdings (PHD LN) Includes a video summary
Supplier strategy looks set to transform top line | Sinclair Pharma (SPH LN) Forecast update due to change in financial year-end: remains a Buy | Ten Alps (TAL
Companies: SPH MNZS AFRN HAT EPO PHD
As we said in March, after a turbulent 2015 both in terms of Aviation operations and management change, Menzies needs a period of stability. This week, the Chairman Iain Napier announced his retirement but today’s update is encouraging in terms of some operational stability. Risks remain in terms of rediscovering Aviation’s operational excellence and offsetting cost headwinds in Distribution, but essentially we feel that value can be created if the ship is steadied. We increase our price target
Companies: John Menzies plc
As we said yesterday with the final results, after a turbulent 2015 both in terms of Aviation operations and management change, Menzies needs a period of stability. We retain our forecasts for FY16 and FY17 and increase our target price to 457p (10x FY16 EPS) from 384p on the basis that FY16 should be a calmer period. Risks remain in terms of rediscovering Aviation’s operational excellence and offsetting cost headwinds in Distribution, but essentially we feel that value can be created if the shi
Abzena (ABZA LN) Business update highlights strong H2 progress | ATTRAQT Group (ATQT LN) Strong delivery; Investing for further growth | Euromoney Institutional Investor (ERM LN) Investor day | Hill & Smith Holdings (HILS LN) Excellent results; strong upgrades | John Menzies (MNZS LN) Forecasts retained; period of stability required | Lookers (LOOK LN) Another year of progress, forecasts well underpinned | Restaurant Group (RTN LN) Trading remains challenging – we move back to Sell | Servelec Gr
Companies: ABZA ATQT ERM HILS MNZS LOOK
After a turbulent 2015 both in terms of Aviation operations and management change, Menzies needs a period of stability. These results are a first step but the outlook remains challenging in terms of Aviation competition and National Living Wage headwinds for Distribution. It is also interesting that the Group structure is being evaluated. We await the analyst presentation but expect to remain at Hold.
BBA Aviation (BBA LN) Amended forecasts; important year ahead | Craneware (CRW LN) In line interims. Value cycle gaining momentum? | Dialight (DIA LN)
Underlying EBIT and EPS in line but non-underlying costs continue | Eckoh (ECK LN) New 5-yr contract with Ideal Shopping Direct | Gresham Computing (GHT LN)
CTC-led strategy provides LT platform for growth | John Menzies (MNZS LN) Tough year for aviation; structure being evaluated | St Ives (SIV LN) Interims – 16% organic growth from strategic m
Companies: CRW DIA ECK GHT MNZS KCT BBA
It is positive news that there are no further changes to FY15 numbers and that Gatwick contractual issues have been resolved, but the further Board upheaval is disappointing and is likely to alert the activist investors who had been relatively quiet in recent months. We remain at Hold but continue to feel that MNZS needs a period of stable and uneventful trading to regain investor confidence.
We have updated our forecasts following yesterday’s disappointing statement. Our FY15 PBT forecast reduces by 8% to £38.5m. We have reduced our SOTP valuation and target price to 384p and remain at Hold. It will be interesting to see if yesterday’s update draws a reaction from MNZS’ activist shareholders.
FINDEL (FDL LN) Refocusing on core divisions, reducing bank debt + refinancing | HORIZON DISCOVERY GROUP PLC (HZD LN) Development agreements | MENZIES(JOHN) (MNZS LN) Forecast downgrades | VP (VP/ LN) Proving its quality once again
Companies: STU MNZS VP/
This is a disappointing update with further problems at Gatwick leading to group forecast downgrades of c.7% to 8%. We said in August that Aviation needed a sustained period without significant issues to fully restore investor confidence and clearly we are going to have to wait a bit longer for that. Distribution is performing well but will have to mitigate the cost of the National Living Wage in coming years. We place our target price and recommendation under review.
Research Tree provides access to ongoing research coverage, media content and regulatory news on John Menzies plc.
We currently have 47 research reports from 5
Last week Lookers announced a record set of H1 results for the six months to 30 June 2021. Underlying PBT was £50.3m, versus an underlying loss of £36.5m in H1 2020. This stronger trading, coupled with cost control and working capital initiatives, has led to substantial cash generation. Lookers has gone from net debt of £40.7m (excl. leases) at the FY20 year end to net cash of £33.0m at 30 June 2021. With legacy issues now behind them, good evidence of trading outperformance and a strong balance
Companies: Lookers plc
Undoubtedly, renewable energy is a growth sector, albeit one where public subsidies are pivotal. Approximately 40% of UK electricity demand is now met by renewable energy, a figure that is set to rise further as coal-fired stations are decommissioned and nuclear power capacity, despite the Hinkley Point C project, falls.
Of the privatised electricity companies, SSE, by some way, is the key renewables player: it owns more than 3.8GW of renewables generation capacity. However, there are now
Companies: AVO ARBB ARIX BBGI DNL FAS FJV FSV FLTA ICGT OCI PCA PIN RECI STX SPO SCE VTA
Pendragon has announced interim results for the six months to 30 June 2021, which are ahead of guidance and our expectations. The Group has made strong progress in terms of growth, cost efficiencies and strategic implementation to ensure further progress can be made.
Companies: Pendragon PLC
MAST Energy Developments (MED) is to IPO on the Standard List on 14th April 2021 under the ticker MAST. The company has raised £5m giving a market capitalisation on listing of c. £23m. MED is currently a 100% subsidiary company of AIM quoted, Kibo Energy*. MED was established to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market. PensionBee has confirmed its intention to float on the High Growth Se
Companies: SYM CGNR EKF KBT GGP VLS TMO ECK B90 MDZ
Amid a background of uneven and subdued economic growth, persistent low interest rates and choppy financial markets, we posit the idea that “dividend surprise” may be a significant contributor to outperformance in the short to medium term. We have screened for particularly well-supported dividends, which has produced a list of 71 stocks. We then considered the wider fundamentals to arrive at a focus list of 10 companies, where we believe dividend surprise has a good chance of coming into play.
Companies: ADN BOY BRW ELM HSD JUP SFE SCS VCT REDD
SCS Group’s full year trading update for the 53 weeks to 31st July shows that the strong demand that has been a hallmark of post lockdown periods over the past 15 months has continued, with LFL orders through the Group’s weeks 47 to 53 up by 23.7% on pre-Covid levels. Lower costs underpin a 16% upgrade to FY21 CPTP expectations, whilst the strong order book drives a 17% upgrade to our FY22 CPTP forecast. We look for EPS of 32.2p and 30.8p for FY21 and FY22 respectively. Year end net cash of £87.
Companies: ScS Group plc
Strong performance in H1 means full year EBITDA is expected to be no less than £4.0m (£5.7m post-IFRS16), driving an 8% EPS upgrade while still leaving risk to the upside. Gross margin has strengthened further and forecasts assume some reinvestment to drive future growth, including in key operational areas and its EU project, which is said to be progressing well. With room for multiple expansion (vs 0.5x EV/sales) the investment case remains compelling.
Companies: Angling Direct Plc
The AGM update reveals a bounce back to positive YoY growth in the UK, but a slower growth trajectory in Europe, given post-Brexit challenges. These are being addressed and new DCs in Eire/Spain are on track to launch shortly. G4M is on track to meet FY estimates despite well documented supply chain challenges. Momentum is expected to rebuild from Q4 onwards and today’s acquisition in the audio-visual space further bolsters growth prospects beyond FY22.
Companies: Gear4music (Holdings) PLC
The company reported an encouraging first half, driven by the strong performance of Protective Films and Healthcare Solutions, though all divisions contributed positively to the group’s profitability in H1. With cash generation from operations having reached €131m over the past 18 months, Chargeurs disposes of a sizeable war chest with its acquisition strategy now back on the offensive. On the organic growth front, strong order books for its core activities stand as encouraging signs of an upbea
Companies: Chargeurs (CRI:EPA)Chargeurs SA (CRI:PAR)
We have performed a second refresh of our consistent growth screen, first established with our research note of 17 December last year. As previously, the screen produces a basket of 25 stocks that exhibit not only good growth in EPS and sales, but also a consistency of growth in both measures each year. This basket, or style, has underperformed the small-cap benchmark by 9.1% since inception last December, and by 4.8% since the last refresh on 13 April. We highlight stocks leaving and joining t
Companies: TRI IOM DOTD CAMB SFE TPFG TRCS INSE TAST MAB1 RWA
FY20 results – All Focus on Resuming Operations
Companies: Jet2 PLC
Dart Group has released an AGM statement this morning indicating satisfaction with load factors and financial performance achieved year-to-date in the context of the challenging operating environment. In addition, the Group has applied to change its name to Jet2 Plc in recognition of the recent sale of the Fowler Welch distribution business and the sole focus on leisure travel. We keep our forecasts withdrawn at this time.
The final results revealed adjusted PBT up 99% year-on-year, which was 10% better than forecast despite four upgrades during the financial year. This strong performance reflects the financial benefits that have accrued following the shift in the business model to online only, as well as management’s strategic decision to significantly increase marketing spend. A second special dividend for the 2020 financial year has also been announced, reflecting the strong cash flow characteristics of the bus
Companies: Best of the Best plc
Unprecedented times over the past 12 months have seen ScS Group deliver an exceptional set of H1 2021 results, dominated by the surge in orders post Lockdown 1.0. Group revenue grew 14.4%, with an incremental gross margin, tight cost control and UK government support (£6.6m) underpinning EBITDA* of £19.5m (£3.8m in H1 2020). We believe the average net cash through the period was c£97m (c£60m excluding customer balances). H2 2021 visibility remains low, with post Lockdown 3.0 demand uncertain, th
Alphawave IP Group is considering an IPO on the standard listing segment of the London Stock Exchange. Alphawave IP is a leading semiconductor IP company focusing on the hardest-to-solve connectivity challenges created by the exponential growth of data. Funds and accounts managed by BlackRock, and Janus Henderson, have each entered into cornerstone agreements with the Company to subscribe for, subject to certain conditions, in aggregate, c. USD 510m of Offer Shares at an offer price representing
Companies: ADME BXPHAR BHC FIPP FIH OKYO SOLG REDX IXI BRSD