Genuit Group - Termination of coverage

Edison Investment Research is terminating coverage on Mercia Asset Management (MERC), Bloc Ventures (unlisted), YOC (YOC.DE), Genuit Group (GEN), AlzeCure Pharma (ALZCUR), abrdn Latin American Income Fund (ALAI), Magforce (MF6), OPG Power Ventures (OPG) and paragon (PGN). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

Genuit Group - Outlook maintained

Revenue momentum has remained strong well into H221 and Genuit’s profit expectations for FY21 are in line with the market’s. The company’s share price has retraced to start-year levels recently (and underperformed the FTSE All-Share Index by 10% in the last month), with no change to business fundamentals in our view. While short-term challenges (such as supply chain strains) are present, we consider that overall market risk is lower now compared to the lockdown-driven uncertainties of 2020.

Genuit Group - Positive trading momentum continues ytd

FY21 has started well both in underlying terms and for recent acquisitions, especially Adey. Genuit is strategically well positioned given regulatory and environmental drivers in its markets, and the proposed management transition is being well flagged in advance. A strong expected earnings recovery from a COVID-19 affected FY20 is being reflected in support for Genuit’s share price.

Polypipe - Acquisitions feed into FY21 earnings recovery

After a positive end to FY20, Polypipe has made an active start to FY21. The £210m acquisition of ADEY (part-funded by a c £96m gross new equity raise) is a significant step and fits well with the company’s product portfolio, market positions and its sustainable water/climate management business strategy. Including acquisition effects, we expect FY21 PBT to exceed FY19 levels, as they supplement an underlying EBIT recovery following a COVID-19-affected trough year. EPS approaches FY19 levels in

Polypipe - In cautious recovery mode

Polypipe remains a strategically well-placed business with leading positions in its building materials market segments supported by long-term drivers. Actions taken – including the £120m equity raise in May – will aid the company’s ability to absorb the disruptive effects of COVID-19 while retaining operational flexibility to rebuild revenues. The companies forward guidance and our estimates are also remain withdrawn for the time being.

Polypipe - Well-placed but revenue progress moderates

Approaching the year end, slower trading in certain sub-sectors causes us to trim our FY19 earnings estimates by 5% (with more modest adjustments thereafter). This does not change our view that the company is well placed by sector to benefit from some long-term structural drivers in the building materials space.

Polypipe - Clear fit from bolt-on deal

The highly complementary £14m acquisition of Alderburgh expands Polypipe’s stormwater management portfolio offering, adding design and installation capabilities also. The earnings impact is modest but this serves as a further strengthening of Polypipe’s market position in the relatively robust infrastructure segment. Once wider UK economic uncertainties clear, we expect increased support for Polypipe’s share price.

Polypipe - Premium positioning

Polypipe’s rating is currently slightly ahead of its sector, but this overlooks the company’s positioning in long-term growth segments, in our view. The FY18 trading performance was noticeably stronger in H2, though margin progression was constrained by short-term production inefficiencies in certain areas. Management provide a clear and consistent message regarding business focus under a refreshed, growth-oriented strategy.

Morning Song

Gooch & Housego (GHH LN) PBT up 6%, EPS up 4-5% on acquisition of ITL | Polypipe Group (PLP LN) Full year guidance reiterated in today’s interims | Realm Therapeutics (RLM LN) In-line H1s overshadowed by negative Phase II AD trial result

Morning Song

Bagir Group (BAGR LN) Strategic partnership with Shandong Ruyi - update | Frontier Smart Technologies Group (FST LN) Challenging Q2’18 results in downgrades | Halfords Group (HFD LN) Groundhog day as HFD guides to another flat year | Miton Group (MGR LN) Rise of nascent funds, income growth potential | Polypipe Group (PLP LN) Expectations unchanged, despite weather impact | Restaurant Group (RTN LN) Reassuring trading update | Sanderson Group (SND LN) Solid H1 highlights reassuring consistency |

Morning Song

Fulcrum Utility Services Limited (FCRM LN) Sector leading returns and earnings growth | Goals Soccer Centres (GOAL LN) Satisfactory AGM but weather impact higher than earlier guidance | Gresham Technologies (GHT LN) Positive AGM statement confirms Clareti momentum | Hill & Smith Holdings (HILS LN) Positive strategic US acquisition | Polypipe Group (PLP LN) Strategy update highlights growth opportunities | Rathbone Brothers (RAT LN) Q1 FuM -3.3%, flows remain modest in investment management

Polypipe - Strong Residential performance

Newbuild residential was the standout sector for Polypipe in FY17 with relatively subdued performance in Commercial and Infrastructure. Overall, underlying PBT and EPS from ongoing operations rose by 7.9% and 10.1% with full year DPS up by 9.9%. Our estimates are slightly lower adjusted for a non-core business disposal but recent share price weakness is overdone in our view.

Results in line; balanced exposure will help FY18

When we initiated on Polypipe in January, we stressed the importance of the Group’s balanced exposure to the UK construction market. This is emphasised in the FY17 results and the outlook for FY18 with residential new build still looking strong and RMI and some areas of commercial less positive. We remain of the view that PLP can generate consistent growth ahead of the market, driven by plastic piping substitution for legacy materials and legislation (water management; energy efficiency etc). We

Market leader with clear growth drivers

Polypipe is a manufacturer of high margin plastic piping and ventilation systems with a balanced exposure across a growing UK construction market. Consistent growth ahead of the market is driven by plastic piping substitution for legacy materials and legislation (water management; energy efficiency etc). A new Chief Executive also promises a fresh perspective on the Group’s strategy and approach to M&A. We view PLP as a solid long term holding with good growth prospects and initiate with a targe

Polypipe - Sector variation, solid performance

Polypipe is benefiting from its leading position as a supplier into the new housebuilders who are expecting further growth. Other sectors are seeing different conditions but activity levels – including price increases – appear to be holding up reasonably well here also. Our estimates are unchanged and we retain the view that a sector premium rating is warranted.

LIBERUM: hVIVO plc* - Update exceeds expectations

Climbing

QuotedData’s Real Estate Monthly Roundup – January 2023

Performance - 2022 ended with another difficult month for property companies as the sector continues to get to grips with the impact of higher interest rates. There were several funds that performed well during December, however, with secondary shopping centre landlord Capital & Regional top of the pile. For a second month on the trot Home REIT saw its share price tank after it came under attack from a short seller in November. Valuation moves - It was a mixed bag for valuations, with six-month

This Week's AIM Highlights 20th January 2023

SHORE CAPITAL - Begbies Traynor Group+ (BEG) - House Stock, 144p - NED appointment & insolvency volumes

FY22 update – Performance in-line & board changes

RBGP has published its FY22 pre-close trading update this morning. Unaudited FY22 revenue, adj. EBITDA and adj. operating profit are expected to be in-line with our estimates. Professional Services, saw good performances across both, the legal services and sell-side corporate finance offering. Whilst there is no resolution on decreasing exposure to LionFish, the Group is encouraged by accelerating developments. RBGP also announced a number of changes to the board, with Nicola Foulston, CEO, havi

Morning Note – 6 February 2023

Hybridan Small Cap Feast - 25 Jan 23

25 January 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment object

Hybridan Small Cap Feast - 17 Jan 23

17 January 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment object

Hybridan Small Cap Feast - 23 Jan 23

23 January 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment object

Major contract award

The Group has announced that Chesterfield Special Cylinders (‘CSC’) has been awarded an £18.2m contract which we believe to be for the supply of air pressure vessels for the Royal Navy’s third and fourth boats in the Dreadnought-class nuclear submarine programme. Management had expected BAE Systems to place an order for the third boat at the start of this calendar quarter and today’s announcement underpins current market expectations with delivery anticipated over the next 3 years and reinforces

hVIVO - Trading update – a strong H2 that market was waiting to see

hVIVO issued a positive trading update for FY 2022, citing revenues (including other income) of £50.6m, which was above its previous guidance of £50m and FC’s revenue forecast of £49.1m, EBITDA margins not less than 17% and period-end cash of £28.4m (FC £22.8m est). Whilst this performance was positively affected by the recognition of postponement and cancellations fees amounting to c.£1m, underlying EBITDA was c.£7.6m (9% above FC £7.0m est) implying margins were c.15%, towards the top end of i

SHORE CAPITAL - Inspired - FY Trading In-Line, Optimisation Leads

Hybridan Small Cap Feast - 20 Jan 23

20 January 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment object

Hybridan Small Cap Feast - 30 Jan 23

30 January 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment object