Sharp growth acceleration in Q2

Q2 sales up 22% Q2 sales were up 22%, with 25% from constant scope and exchange rates. Photonics was particularly strong, up 30% yoy, while Medical remained steady at +16%. Photonics boosted by spatial and defence This was partly explained by a scope effect, with the SAAB activity being acquired in May 2022. Defence and Spatial therefore strongly outperformed and was up 63% reported. This segment''s performance was also supported by product deliveries for several satellite constellation contract

Markets remain healthy

FY EBITDA came in at EUR31.3m, down 4% yoy FY EBITDA came in at EUR31.3m, down 4% yoy and 3% above consensus. The Photonics division suffered the most, with EBITDA down 12% for sales up 16.4%. This is partly explained by the lag effects of passing on price increases (longer-term contracts). Other elements of group EBITDA margin compression were due to opex investments (staff: +13%; Lumibird is scaling up its organisation), non-recurring costs related to sourcing (EUR3m) and the need to re-design

A year in 2 halves

H1 EBITDA down 22% H1 EBTIDA was EUR11.2m down 22% yoy with the EBITDA margin receding from 19% to 13.3%. The gross margin decline of 70bps was due to the photonics division with the backlog being mostly booked at firm price. The gross margin was therefore down 290bps on this division whereas medical was healthy at +110bps (easier to pass on price increases with distribution being partly direct). H1 EBIT down 55% yoy H1 EBIT was EUR3.9m down 55% yoy. In addition to a weaker gross margin, the

Promising results, robust outlook

EBITDA up 34% yoy Lumibird''s EBITDA was EUR32.4m, up 34% yoy and 5% above consensus. This performance was driven by the gross margin uplift (+EUR15.6m) notably due to product mix and the roll-out of commercial synergies within the medical division. Operating leverage was also supported by the strict control of opex with personnel expenses increasing modestly. Medical driving the EBITA margin improvement By division, the performance was particularly impressive in medical with the EBITDA mar

Robust Q3

Q3 sales up 13% Q3 sales were up 13% (+15% organic) to EUR37.2m of which Medical up 5% to EUR19.3m and Photonics up 27% to EUR18m. For Photonics, we note that Industrial and Scientific was up c50%, Defence and Spatial remained well oriented at +3.8% (with a stable contribution from the megajoule contract) while LIDAR was up a robust 22% in the quarter as production issues are abating. Guidance confirmed Lumibird is comfortable with the consensus estimates for FY sales at EUR160m. It implies

Robust margin improvement in medical

EBITA tripled in H1 Lumibird''s H1 EBITA was EUR8.6m vs EUR2.9m in H1 20. This in our view is remarkable as H1 results were achieved in a context of gross margin decrease (down 320bps), notably due to mix. In spite of this, with sales growing by 65% (of which 35% due to scope effect) and by 13% on a pro-forma basis, the EBITA margin expanded from 6.3% in 2020 to 11.4% in H1 21, with Lumibird focusing heavily on opex control. Medical margin increase impressive, Photonics healthy The EBIT margi

Very solid Q2 print, guidance on the safe side

Q2 pro-forma growth reaching 25% Q2 sales reached EUR75.5m, up 75% yoy and up 23% on a pro-forma basis. This represents a real acceleration in Q2 (+3.2% in Q1). Medical up 11% on a pro-forma basis at the end of H1 Growth in medical has been driven by pent-up demand following the re-opening of the economies and the further roll-out of commercial synergies following last year''s acquisition of Ellex. The integration is now well advanced and from 2022 onwards the focus on profitability optimisa

Set to illuminate your journey

Leader of the European laser market, Lumibird operates in segments that look set for solid growth. Rerating should continue as the group takes a further step in its transformation while MandA is afoot. European laser market leader Lumibird has expanded 8.5x in revenue in four years (2016 to 2020), becoming a European champion in the process. A multi-technology specialist with deep knowledge in solid state, diode and fibre lasers, Lumibird offers a solid product offering boasting more than 300

Surface Transforms plc (SCE LN) - Forecasts and valuation withdrawn

We note the regulatory announcement this morning from Surface Transforms and withdraw our estimates and valuation, pending conversations with management.

Surface Transforms - New guidance – forecasts under review

Surface Transforms has issued new revenue guidance for FY24, with the company now expecting revenues in the range £17.5-22m. We are withdrawing our previous forecasts for FY24 and withdrawing our price target while we review the impact of the new guidance.

Morning Note – 16 April 2024

Robust margin and cash performance

Surface Transforms (SCE LN) - Obstacles removed for higher production

Surface has issued a brief Q1 update. Production will ramp-up this year as final new equipment is installed, and manufacturing teething problems recede.

Initial Equity Trading Comments - 19 February 2024

Hybridan Small Cap Feast - 16/04/2024

16th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radical Limited for

Dowlais Group - Motoring forward

Dowlais Group’s first set of results were ahead of our expectations, with positive cash generation a highlight despite restructuring and demerger costs. Softer automotive markets will limit margin progress in FY24 towards the double-digit target. Despite this, margins of c 6.5% are still ahead of automotive peers, although the shares trade at a significant discount to our implied generic peer-based valuation.

Morning Note – 9 April 2024

Morning Note – 4 April 2024

Zeus Top Picks for 2024 - 2023 review and outlook for 2024

On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div

LIBERUM: New Energy Nuggets: Hydrogen - the future is green

Nexteq - FY23 adj EBITDA +4% ahead, FY24E upgrades of +1-10%

Nexteq’s FY23 results show adjusted EBITDA +4% ahead of the +6% upgrade at the January trading update, record FY23 EFCF of $17.4m, and a confident outlook that leads us to reiterate our FY24E revenue and upgrade FY24E gross profit, adj EBITDA, and EFCF by +1-10%. The strategic focus on higher-margin products and customers reducing elevated inventory levels led FY23 group revenue -5% yoy to $114.3m, with Quixant 6% lower at $69.3m and Densitron 2% lower at $45.1m. Effective supply-chain managemen

Hybridan Small Cap Feast - 17 April 24

17th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

Gooch & Housego (GHH LN) - A chink of light

Gooch has issued a positive update for H1. Trading has started to recover with stocking levels normalising at industrial and medical devices customers. The outlook is positive with growth returning, and management has confirmed our full year estimates (adjusted for the disposal of EM4). The order book and order flow appear healthy, and net debt is comfortable. Gooch clearly still has plenty to do to lift operating margins from a lacklustre 8.1%, but the transformation plan appears to be back on