Zeus Industrials Round-Up - 13 September 2024

The UK industrial sector continues to show promising signs of recovery, with manufacturing PMI reaching a 26-month high of 52.5 in August as all survey indicators but one expanded. Economic data has also been encouraging, with UK pay growth cooling to a two-year low and inflation rising only slightly in July – supporting the case for further interest rate cuts this year by the BoE.

PANMURE LIBERUM: Ricardo: Strong cash generation

Zeus Industrials Round-up - 14 August 2024

In a volatile period for stock markets, the UK industrial sector has continued its steady improved performance. Manufacturing PMI data reached a two-year high of 52.1 in July with optimism reaching the second-highest level in the survey this year. Inflation remained at 2.0% in June which, coupled with promising labour market data, led the MPC to reduce the base rate by 25bps to 5.0%. Although challenges such as supply chain disruption and economic volatility still remain, the sector’s improving

Ricardo (RCDO LN) - Balanced growth, better value

We believe the investment case for Ricardo is positive and upgrade our estimates following the trading update last week. Despite a weaker first half, Ricardo confirmed that trading to the year-end was in line with market consensus. Activity was strong across all units; notably the Automotive & Industrial division recovered well in H2. Our estimates were at the lower end of consensus, and the outlook is now more positive. FY24E adjusted PBT is increased by c.9% to c.£31m. Liabilities will also be

PANMURE LIBERUM: Ricardo: Stronger H2 and headline estimates unchanged

Zeus Industrials Round-Up - 9 May 2024

Economic and industrial data has started the second quarter on slightly weaker grounds than Q1 as Manufacturing PMI in the UK, Eurozone and US all reported April indexes below March levels. Cracks seem to be appearing as recent drops in new orders and rising input costs are quickly dampening confidence. Inflation did, however, fall MoM across the board with the exception of the US, where volatile energy prices caused a modest MoM increase in the inflation rate.

LIBERUM: Ricardo: Operating model changes have been accelerated

LIBERUM: Ricardo: Operating model changes have been accelerated

LIBERUM: Ricardo: Progress on strategic ambition

LIBERUM: Ricardo: Progressing well towards the targets

Ricardo (RCDO LN) - Getting there

Ricardo has been busy, making useful tuck-in acquisitions and earlier this week announcing a c.$400m contract extension to the US Army’s Humvee fleet upgrade programme. Full year results yesterday were also positive, combined with good progress on the transformation of the divisional portfolio. Order intake was up 23% (£522m), constant currency revenue was up 14% (£445m) and operating profit up 16% (£34m). The operating margin ticked up slightly to 7.6% (vs. 7.4% in FY22a); but this was still we

LIBERUM: Ricardo: Good progress on targets

LIBERUM: Ricardo: Trading in line but mix changes and higher interest

LIBERUM: Ricardo* - Acceleration towards "One Ricardo"

LIBERUM: Ricardo* - Succesful McLaren re-bid underpins expected volume growth

PANMURE LIBERUM: Inspired Plc: Upside building for FY 25

THE MONTHLY January 2020

The Office for National Statistics (ONS) is due to publish its most up-to-date survey on share ownership in mid-January, which identifies the beneficial owners and decision- makers of the stock market. Hardman & Co has worked together with the share analysis service, Argus Vickers, to jointly produce its own survey, which anticipates the conclusions of the ONS survey but goes into much greater detail. Our work does not use a sample of 200 quoted companies as the ONS historically has, but rather

Allenby Capital: Franchise Brands - AGM trading update

Franchise Brands’ confirms in its AGM statement today that it is trading in line with consensus market expectations for FY24 of adjusted EBITDA of £35.7m to £37.2m, therefore we make no changes to our forecasts. Importantly, we are pleased to see a further reduction in adjusted net debt which has fallen from £74.7m at year-end FY23 to below £70m at the end of H1 FY24 and is now below 2x forecast FY24 EBITDA. Our forecasts see the net debt/EBITDA ratio falling to 1.8x by the end of FY24 and to c.

Morning Note – 10 September 2024

LIBERUM: SAS UK SMID Monthly: Should we expect a rally in retail stocks?

Inspired+ (INSE, House Stock at 66p) - Interim results, evolution continues

hVIVO - H124 results in-line, looking to the future with CW open

HVO has released H1 2024 results in-line with expectations, and reiterated FY2024E guidance that was last given at the trading update and Capital Markets Day (CMD) in July. H1 2024 revenues of £35.6m grew at 31% v H1 2023; EBITDA of £8.7m was up 68% v H1 2023, with the EBITDA margin of 24.5% expanding by 540bp over the year; and basic adjusted EPS was 81p, +31% v H1 2023. Gross cash at period end was £37.1m, up 18% compared to H1 2023, but broadly flat v year-end 2023. As previously noted, this

Balancing act

Over the past three years, trusts with blended approaches rather than a strong tilt to growth or value have been at or near the top of the pack across the developed equities sectors, benefitting from their flexibility in a period of extreme style gyrations.

PANMURE LIBERUM: The Panmure Liberum Leisure Digest: Lead indicators looking up

The Hardman & Co Monthly: August 2023

Feature article: UK interest rates and “risk-free” gilts at their peak? Infrastructure stocks struggle Executive summary Infrastructure/Renewable Energy Funds ► The share price performances of the nine Infrastructure Investment Companies (IICs) and of the 22 Renewable Energy Infrastructure Funds (REIFs) have been dire over the past year. Undoubtedly, the sharp rise in interest rates has presented the sector with serious challenges, especially since the yield on “risk-free” 10-year gilts has r

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Distinctive holidays, fortress balance sheet: BUY

Marlowe - Demerger of Marlowe’s Occupational Health division

Following the strategic review initiated in November 2023, Marlowe Plc has announced the demerger of its Occupational Health division to form Optima Health Plc as an independent company on the AIM market. The demerger will be implemented by way of a dividend in specie of shares in Optima Health, with one Optima Health share granted for each Marlowe share held. Following the spin-off, Marlowe will remain focused on its Testing, Inspection & Certification (TIC) operations; the origins of the group

THE MONTHLY November 2019

The trade-off in the risk/reward for gold and gold mining equities is improving, as central banks push the current iteration of the post-World War II Bretton Woods financial order towards its limits.

Hardman & Co Insight - Asset managers had a poor 2022

Asset managers had a poor 2022: the S&P Composite 1500 Asset Management Index was down 22% and, according to the Investment Company Institute (ICI), worldwide mutual funds fell by 20%, from $76tr to $60tr. When bond and equity markets fall, the results are unlikely to be pretty: with revenues trending down and multiples contracting, there is a double whammy to contend with. So how do valuations shape up now, after a bullish start to the new year? The first chart is my favourite chart of asset m