Companies: Mattioli Woods plc
Mattioli Woods (“MW”) has posted solid final results showing a beat (+9% vs SCMe) at the key adj. EBITDA level. Momentum is building: revenue growth in H2 was +12% vs H1 with a positive quarterly progression. This is encouraging for FY22e, which has started strongly (+10% Q1). Recent acquisitions are being integrated and offer a material step up in scale and earnings. We leave forecasts unchanged at this early juncture, noting potential for upside if trends are sustained. Once a full contributio
Mattioli Woods has completed the small bolt-on acquisition of Richings – a £70m AuA financial planning business in Buckinghamshire. It is expected to be modestly earnings accretive in the first full year. Richings was one of the targets outlined as part of the recent £112m placing; which provided funding for the acquisitions of Maven, Ludlow and a four target bolt-on pipeline, of which Richings was one. We make no immediate changes, not expecting any material revisions (Richings generated only £
Mattioli Woods’ (“MW”) update for FY21 confirms profits in line with expectations – (SCMe Adj. EBITDA £15.9m). Revenues are guided to +7% YoY, slightly ahead of our +6% estimate and a product of improved inflows (>£480m net, now at £4.1bn AuM) and performance of discretionary portfolio managed services. A strong finish to the year, with momentum into FY22e . Client activity has continued to build with improvements in both new business and lead generation – we note, even against FY19’s pre-COVID
In May, Mattioli Woods (“MW”) announced the proposed acquisition of Maven and Ludlow, with an accompanying £110m equity placing. These acquisitions will near-double MW’s EBITDA (FY23e £39m from £22m). Maven has completed already with Ludlow expected in July. We expect £4m cross-platform revenue synergies in FY23e (vs MW stated £2m min). We forecast +10% FY23e first full year accretion (+2% FY22e part-year), growing to +18% FY23e if targets are delivered. The acquisitions of Maven and Ludlow repr
What a difference a year makes - 12 months ago, the focus, quite understandably, was on the course of the pandemic and the lifting of the Lockdown (1) measures. For investors, it was the sustainability of the rally in markets seen since March 2020. Today, while we are still thinking about the lifting of lockdown measures, we are also concerned about two “old favourites” from previous decades. Inflation and the parlous state of public finances. The BoE has said that although CPI inflation rose to
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Mattioli Woods has seen all shareholder resolutions approved at yesterday’s general meeting, confirming the conditional element of the £110m placing and clearing the way to completion for the transformational acquisitions of Maven Capital Partners and Ludlow Wealth Management. Both are expected to be accretive in the first full year of ownership. This pushes MW further towards the group’s long term strategic aspirations. We will update our formal forecasts with a more comprehensive review of the
Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in sports
Companies: KIBO MTW GWI MTR DUKE ITM GDR MSMN CMCL PTRO
Mattioli Woods (“MW”) has announced another strategic acquisition, hot on the heels of the Pole Arnold deal (13/4). Caledonia AM is an Edinburgh-based WM and the deal will strengthen the Groups’ existing WM offering in an underserved market. Caledonia AM has c.£55m AuA from c.150 clients, with FY20 revs of £0.45m and PBT of £0.18m. Consideration is £0.96m up front (£0.86m net) and £0.64m contingent. Accounting for profitability targets against the contingent; paying c.8x EV/EBITDA and expected t
Mattioli Woods (“MW”) has announced another strategic, bolt on acquisition which is expected to be 5% EPS accretive in the first full year. Leics-based financial planner Pole Arnold has a similar culture to MW and provides fee-based financial planning. It is being acquired for £4m upfront – equating to an attractive 5x EV/EBITDA – with a further £3m contingent consideration based on profitability targets. We think MW’s current 14x FY22e PER (incl. full contributions from acquisitions this year)
The Budget offered a clear picture of the state of the economy. Put simply, the economy will be 3% smaller in three years’ time than it would have been without the impact of the pandemic. However, it is forecast to return to pre-pandemic levels by mid-2022, six months earlier than previously thought. The OBR forecasts that the UK economy will grow by 4.1% in 2021, (lower than the 5.5% outlined in November 2020). It has set its GDP forecasts in 2022, 2023 and 2024 at 7.3%, 1.7% and 1.6%. Positive
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Interim results are in line with our expectations. Revenue was slightly down yoy (-3%) as COVID reduced transactional activity, however, this was offset by recovering markets in Q2 which underpinned ad valorem revenues. With cost savings taking effect, adj. EBITDA grew 7% yoy: 56% of our FY21e and a 30% margin. We make no changes to our FY21e earnings forecast as trading remains positive. Strategic vision remains ambitious, with a revised target to treble AuA/M. Given strong recurring income, wi
Mattioli Woods has made a bolt-on acquisition: Montagu – a wealth manager with £80m AuA/M based in Twickenham, SW London – for (up to) £2.34m consideration, with £0.95m contingent on performance post-completion. This is small in a group context but another example of positive incremental growth, bringing a team with close cultural fit enhancing MW’s presence in South East England. We will make any (modest) changes at the Interims next week (9/2), with Montagu expected to be earnings enhancing in
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We believe Keywords has a very strong business model, as it provides solutions throughout the development cycle. Keywords is an infrastructure play, benefitting from gaming industry tailwinds. 2021 is a step-change year. Thereafter we believe KWS EPS will continue to compound at attractive double-digit % rates.Buy
Companies: Keywords Studios plc
Tungsten West (TUN.L) has joined AIM. Tungsten West is the 100% owner and operator of the historical Hemerdon tungsten and tin mine located near Plymouth in southern Devon. Hemerdon represents the world's third largest tungsten mineral resource, with a JORC (2012) compliant Mineral Resource Estimate of approximately 325Mt at 0.12 WO3. Capital raised on Admission: £39m. Anticipated Mkt Cap: £106.2m.
Future Metals NL (ASX:FME, FME.L) (formerly named Red Emperor Resources NL) had joined AIM
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Softline, the global solutions and services provider in digital transformation and cybersecurity, with its headquarters in London, has issued GDRs to the Standard Listing Segment of the Official List, and on the Moscow Exchange. The Group had a turnover of US$1.8bn for the year ended 31 March 2021, employs c.6,000 people globally, and operates in more than 50 countries across emerging markets. Primary proceeds from the Offer are expected to be around US$400m. At the $7.5 offer price. Mkt
Companies: ULS CRU TM17 TEK ACSO RST ABC
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Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz. Offer TBA. Due early Nov.
Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties providing investors with exposure
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Sareum Holdings PLC have published Final Year Results. We have published research on this which is attached and a snapshot of the research is below.
The specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of autoimmune diseases and cancer, announced its results for the year ended 30 June 2021. It has been a period of significant progress for its selective TYK2/JAK1 Inhibitors, which have reported further strong pre-clinical results, attra
Companies: Sareum Holdings plc
Arrow Exploration Corp. (AIM:AXL; TSXV:AXL), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, has joined AIM, alongside a fundraise of approximately £8.8m.
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ATOM headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas com
Companies: SPA ECR KP2 SAR SYM
Today’s trading update from Driver Group is optimistic, highlighting a material improvement in activity levels during Q4 and a positive start to Q1 ’22. The rise in demand for the highermargin expert services, combined with a decline in the impact of the pandemic on decision making, a restructuring of the Middle East / APAC regions, and new offices, have resulted in renewed positive momentum. We have introduced estimates for FY21 and FY22, with the latter reflecting these strong growth drivers.
Companies: Driver Group Plc
Water Intelligence has released a very strong Q3 update and at the 9m stage has now already achieved our FY21 Normalised PBT forecast. Group revenues advanced +43% for the 9m, led by US Corporate-Owned Locations (+79%) and International Corporate-Owned Locations (+47%), supported by Franchise Royalty Income and Franchise-Related Sales, which both grew +4%. Normalised PBT for 9m was $6.5m, equal to our FY21 estimate. The group was very active in Q3, with a Midwest Home Builder contract win develo
Companies: Water Intelligence plc
Franchise Brands has released a positive trading update for the three months to 30 September 2021, the Group’s third quarter. Highlights include excellent growth from the Metro Rod franchisees who have increased system sales by 32% year-on-year (yoy) in the quarter and the recruitment of 52 new franchisees in the B2C division to date. Work on optimising the new integrated technology platform continues, improving the Metro Rod and Metro Plumb customer experience and enhancing the efficiency and p
Companies: Franchise Brands plc
Franchise Brands has released a very encouraging Q3 update which states that it has delivered record Q3 results that firmly underpin FY expectations. This robust performance was driven by Metro Rod, where systems sales grew +32%. As expected, Willow Pumps has seen a more muted recovery in its supply & installation operations due to its reliance on the housebuilding sector. Recruitment in the B2C sector has returned to pre-CV19 levels. Digital transformation at Metro Rod and Metro Plumb continues
RELX shares reached a new all-time high this morning following the publication of the group’s 9-month trading update. Investors welcomed the – long-awaited – bounce back in Exhibitions as well as the improved FY21e guidance.
Companies: RELX PLC
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ 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
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Driver Group’s year end update confirms it expects to report adj. PBT in line with expectations and net cash a touch below at £6.5m (SCM previous forecast: £7.3m). It has seen a material improvement in activity levels during Q4, giving management confidence in the current year outlook. Our FY22 forecasts are therefore unchanged, continuing to show a material improvement in earnings. We see the current valuation (11.1x Sep. ’22 P/E and 5.7x EV/EBITDA) as undemanding against an improving outlook a
Positive momentum returning
Companies: Johnson Service Group PLC
CAP-XX Ltd* (CPX.L, 5.8p/£29.5m) Finals: Sales order book up more than 160% (29.09.21) | MTI Wireless Edge Ltd* (MWE.L, 70p/£62.0m) Contract win: MTI Summit secures multi-year customer agreement (30.09.21) | Mirada plc* (MIRA.L, 65p/£5.8m) Finals: Considerable pipeline of sales opportunities (29.09.21)
Companies: CPX MWE MIRA MBT