Initial Equity Trading Comments - 15 May 2023

Industrial property market - What the logistics is going on?

If one looks through the current interest rate cycle and trusts that inflation will be brought under control at some point within an investable timescale, then the hope is that as the cost of capital reduces real estate values will rise again. Our worst-case scenario of a 200bps move in yields and no rental growth would see valuations fall by a third. Many of the discounts that industrial and logistics property companies are trading on are currently wider than this. Couple this with the strong o

Safe as warehouses

This year we have been running a series of articles looking at private assets and what they can offer in the midst of a surge of interest in them and inflows into funds investing in them. While there are lots of new assets coming into the mass market via investment trusts, there is a well-established private asset class which, judging by discounts, has fallen out of favour in recent years: commercial property. Below we highlight why we think this sector has a lot to offer for income, inflation p

Pick your poison

Commercial property investors have experienced a wildly volatile few months and the outlook is still extremely uncertain too, thanks to the government response to the coronavirus outbreak. Many investment companies have cut or cancelled their dividends; and the pace and scope of the lockdown lifting will affect how quickly and to what extent their rental income recovers. As a result, they sit on wide discounts to NAV. On the other hand, other areas of the property market have seen limited or no

Safer harbour REITS: an update

A number of REITs have the ability to thrive in current market conditions and thereafter. Not only do they hold assets that will remain in strong demand, but they have focus and transparency. The leases and underlying rents are structured in a manner to provide long visibility, growth and security. Hardman & Co defined an investment universe of REITs that we considered provided security and “safer harbours”. We introduced this universe with our report published in March 2019: “Secure income” REI

Riding for a fall

In the financial markets, the biggest winners from the crisis so far have – without a doubt – been the technology sectors. Software, hardware, ecommerce and related sectors have outperformed in the immediate aftermath (as we discussed in a recent strategy note). They also seem likely to benefit from some of the likely long-lasting changes to society that the crisis will forge. This is the latest episode in a long period of outperformance. Looking back over the past decade, technology-related com

Tritax Big Box REIT - Overview

Tritax Big Box REIT (BBOX) invests primarily in the large-scale sites at the centre of modern distribution and logistics networks – so-called ‘big boxes’ or ‘mega boxes’. These are crucial to online-only retailers and to the distribution networks of those multichannel retailers operating nationally or internationally. The largest single tenant is Amazon, responsible for 13% of the company’s rental income, and the second largest is Ocado. Manufacturers, wholesalers and courier services are major

The gift that keeps on giving

The industrial and logistics sector has been on a tremendous run over the past five years or so. It is hard to think now, given the current dynamics in the property industry, that retail and offices were the sectors of choice for investors for many years with industrial cast aside by most.

The gift that keeps on giving

The industrial and logistics sector has been on a tremendous run over the past five years or so. It is hard to think now, given the current dynamics in the property industry, that retail and offices were the sectors of choice for investors for many years with industrial cast aside by most.

Monthly Corporate Activity

Fundraising showed signs of picking up this month, and the focus was very much on the renewables sector. First of all there was Renewables Infrastructure Group, which launched a placing programme and an initial fundraising early in the month, targeting up to £170m. It ended up raising just over £300m, having received applications for nearly three times as many shares as were originally available, in an upsized and scaled back issuance. Greencoat Renewables also announced and completed a placing

Fidante Daily Digest

TRIG – Renewables Infrastructure Group – February 2019 NAV and asset | BBOX – Tritax Big Box – Finals to 31 December 2018 | SIR – Secure Income REIT – Finals to 31 December 2018 | FSFL – Foresight Solar – Finals to 31 December 2018

Fidante Daily Digest

CAT – CATCo Reinsurance Opportunities – Portfolio update | BBOX – Tritax Big Box – Completion of acquisition

Fidante Daily Digest

BBOX – Tritax Big Box – Results of fundraising | NESF* – NextEnergy Solar – Partnership with Zestec | MXF – Medicx – Q4 2018 NAV, trading update and dividend

Fidante Daily Digest

Tritax Big Box – Acquisition and fundraising | AEW UK - Q4 2018 NAV and dividend

Mispriced despite tech headwinds

Begbies Traynor Group (BEG) - House Stock at 132p - FY23F pre-close update, small beat

Hybridan Small Cap Feast - 23 Feb 23

23rd May 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 objectiv

A much improved outlook, TP increased

Pressure Technologies returns from suspension today with the announcement of FY22 results that are in-line with its March trading update. Notably, there is greater confidence expressed in the outlook as market conditions and order intake have continued to improve during this calendar year. In February 2023 Chesterfield Special Cylinders (‘CSC’) won its largest ever £18.2m naval order and in March 2023 Precision Machined Components (‘PMC’) was also awarded a record £3m contract. The FY22 results

SP Angel Spec Sits: Not Just a BRICK Company (LVCG LN)

LVCG has evolved to include four primary operating divisions that own and licence a network of live event brands to third parties for concerts, festivals, and events around the world. Based on these diversified revenue streams, we have developed baseline forecasts for LVCG for 2022E and onwards. Our revenue forecasts include assumptions for agreed events, license fees and ticket sales.

In the Flow

Industry flows - bond funds remain preferred over equities Risk appetite for equity funds remained subdued with last week seeing $4bn net outflows (negative in 8 of the last 9 weeks). Flows worsened sequentially for Asia/EM categories, but improved for US and European equities. Bond funds saw inflows for a 10th straight week (c.$8bn) with broad based inflows across US government, IG and HY funds. Listed asset managers flows - inflows into ETFs, outflows from mutual funds ETFs net inflows contin

Morning Note – 31 May 2023

DWF Group (DWF LN) - Growth accelerating, costs controlled

FY23E performance confirmed as broadly in line with forecasts. Revenue of £380m is +c.8.5% YOY, with H2 growth accelerating to +13.5% (FY23: +3.4%).

Preferred Gen AI play

Relx has a 30+ year history benefiting from AI. We think Generative AI is likely to contribute to higher levels of growth and margin expansion. Recent share price weakness offers a buying opportunity in our preferred Gen AI play in Media. Relx - our preferred Gen AI play within Media We review the implications of Gen AI on professional information vendors and argue that Relx is well positioned to benefit. We raise our TP to GBP30 and see Relx as our preferred Gen AI play in European Media. See

Cenkos: IXICO Plc -- Successful execution

IXICO has reported its interim results for the six-months to March 2023, which are in-line with the recent trading update. Revenues for the period were £3.2m and the EBITDA loss was £0.6m. Cash at period end was £5.0m, the order book stood at £13.3m and the company generated operating cash inflows of £0.2m. Importantly, this period sees the final negative impact of the large trial cessations (2021/22), such that revenues are expected to grow from this point, in both H2/23E versus H1/23A and into

In-line 2022 but improving outlook

Hybridan Research: 23 05 2023: Physiomics Plc (PYC): Strategic importance of business diversification

Physiomics today announced a trading update for the financial year ending 30 June 2023 (FY23). The Board now expects that total income for this period will be approximately £660k, 12% lower than £750k previously guided on 4 April 2023, due to unforeseen delays in data delivery to Physiomics for contracted projects. The delayed contracted projects are still expected to be completed and contribute to income for the next financial year ending 30 June 2024 (FY24). Meanwhile, the Board expects to sig

Inspired+ (INSE, House Stock, 12.25p) - Variation to Ignite contingent consideration

Hybridan Small Cap Feast - 22 Feb 23

22 February 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 objec

Auctus on Friday - 21/04/2023

AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C: Target price of A$0.100 per share: Competent person report confirms the materiality of the Welchau pospect – The Welchau prospect has been estimated to hold between 365 bcfe and 1,128 bcfe of prospective resources by Gaffney, Cline & Associates (GCA) with a mid-case at 645 bcfe including 10.1 mmbbl of condensate. While this is below the 807 bcfe mid-case estimated by ADX, the fact that the lower end of the GCA ran