Zeus Industrials Round-Up - 11 October 2024

The UK industrial sector expanded for a fifth consecutive month in September per manufacturing PMI data, although activity was slightly softer MoM as employment levels, inventories and business confidence declined per the survey, primarily due to uncertainty regarding the Autumn Budget, US elections and subdued global market conditions. Global inflation data has been encouraging and we await next week’s UK payroll data to understand the BoE’s next decision, although it is widely anticipated that

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.

Morning Note – 11 September 2024

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

Trifast - FY24 results in-line, with strong cash generation

FY24 results were in-line with expectations, outlined at the year-end update, when we slightly upgraded our forecasts. One of the standout features of the results was the £17.1m reduction in net debt to £21.0m, driven by a reduction in net working capital. Management initiatives to improve performance should have a greater effect in FY25, including from the new NDC and 10% cut in non-operating costs. We reduce our FY25E EPS by 6.3% to 5.8p. The shares remain at a considerable discount to its pee

Morning Note – 29 July 2024

Trifast (TRI LN) - FY24 results & refreshed strategy

Trifast has reported a set of resilient results for FY24 (March y/e) in a difficult operating environment driven by volatile demand and customer destocking. Despite revenue falling 4.4% (2.7% ccy) to £233.7m, adj. EBIT remained broadly flat at £11.9m as the Group streamlined non-operational headcount, drove operational efficiencies through its global ERP system and remained focused on pricing. Net debt (excl. leases) reduced significantly to £21.0m (FY23: £38.0m) due to strong working capital ma

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.

Morning Note – 25 April 2024

Trifast (TRI LN) - Trading conditions remain difficult but self-help initiatives coming through

Despite end market demand remaining difficult in several regions Trifast has announced that revenue and profitability will be marginally ahead of the guidance provided at the end of January. Self-help initiatives instigated during 2023 are starting to come through providing visibility on the majority of the £3.0m savings identified to come through in the current financial year (Mar FY25). Zeus estimates were in line with guidance of £230m revenue, £11.5m EBIT and £6.0m PBT. We leave forecasts un

Trifast - Q3 trading update: poor December lowers FY24 expectations

The Q3 update highlights December was significantly affected by lower volumes at its Asian operations and global distribution sales channel. Both had been expected to recover. Markets generally continue to give low visibility and volatile demand in a number of end markets, with recent geopolitical events also a contributory factor. As a result, FY24 is now expected to be significantly below previous expectations, with revenues of £230m and EBIT margin of c5%. We cut FY24E EPS by 38% to 3.7p and

Morning Note – 22 January 2024

Trifast (TRI LN) - Market demand weakens in December

Trifast has released a trading update indicating that demand in Asia and global distribution sales channels has been weak in December leading to a decline in volumes. Zeus revise FY24 forecasts in line with guidance provided in the statement, with revenue of £230.0m (prev. £253.3m), EBIT of £11.5m (prev. £16.0m) leading to PBT of £6.0m (prev. £11.2m). FY25 and FY26 estimates are reduced accordingly (full details of changes to Zeus forecasts can been seen on page 2). Despite the weakening in the

Rockhopper Exploration (RKH LN) - Italian arbitration insurance and Italian assets disposal

Rockhopper has announced two updates. First, it has taken out an insurance policy against its upcoming Italian arbitration annulment court decision, underpinning a cash payment of EUR31m for Rockhopper. Second, it has disposed of its remaining Italian assets portfolio, removing forward decommissioning liabilities for the company.

Pantheon Resources (PANR LN) - Comprehensive Update Note

Pantheon Resources anticipates commencing drilling operations at Megrez-1 in early November, with drilling operations expected to take approximately one month to reach total depth. We believe that Megrez-1 is by far the most exciting well ever drilled by Pantheon Resources due to our high confidence that the reservoir of the targeted Ahpun East Topsets (609 million barrels of prospective recoverable best estimate resources) will be of an exceptionally high quality – success would unlock correspo

Oil & Gas - Cavendish sector note

PetroTal Corp, BP, Petro Matad, Gulf Keystone Petroleum, Zephyr Energy, Ithaca Energy, Equinor, Angus Energy, Shell, Var Energi, OMV AG Source: FactSet, weekly change 07/10/2024-11/10/2024 Oil eased following a day of choppy trading as investors booked profits and unwound some positions ahead of Israel’s expected retaliation against Iran and the potential rollout of fresh economic stimulus in China. West Texas Intermediate settled below $76 a barrel while Brent settled near $79 a barrel. Both be

Kenmare Resources: Q3 preview – Moma operations to improve in H2

Kenmare Resources (“KMR”) will release its Q3 production update on 17th October 2024. KMR expects output to rise in H2 driven by higher forecast grades, and sales to be supported by improved weather, following the conclusion of the rainy reason. As such, we estimate heavy mineral concentrate (“HMC”) production in Q3 of 399kt (+17% QoQ), delivering final ilmenite output of 284kt (+19% QoQ). The drawdown of intermediate stockpiles in H2 should support production of zircon (H&Pe 14kt in Q3, +9% QoQ

SP Angel Morning View: Copper bounces as traders look to China for more support on Saturday

PANMURE LIBERUM: Emmerson: Unfavourable ESIA recommendation; Emmerson reviewing options

Record throughput, but grades remain a concern

Insures to secure guaranteed substantial Ombrina Mare payout

SP Angel Morning View: Gold regains ground as Russia pushes BRIC countries for de-dollarisation

Hybridan Small Cap Feast - 14 October 2024

* A corporate client of Hybridan LLP ** Potential means Intention to Float (ITF) has been announced, or it is a rumour ***Arranged by type of listing and date of announcement ****Alphabetically arranged Share prices and market capitalisations taken from the current price on the day of publication Dish of the day Admissions: None Delistings: None What’s baking in the oven? ITF announced:*** Potential** Initial Public Offerings: 30th September 2024: Applied Nutrition, the sports nutrition, health

PANMURE LIBERUM: Mining LOWdown: AMRQ: first gold at Nalunaq in Q4'24; ATYM: FY24 production target reduced

Power Metal Resources* (POW LN) – FLASH NOTE - Incubation Strategy Success Continues with Uranium JV

Jubilee Metals (JLP LN) - Audited results for FY24 (June)

Jubilee today announces its audited results for FY24 which ended in June. Revenues rose to $205.4m from $170.9m in FY2023 (Zeus estimate was $208.8m). Group EBITDA fell to $27.7m from $29.8m (Zeus $26.6m) with eps falling from 0.58c/sh to 0.21c/sh (0.3c/sh). Capex fell to $36.9m from $65.9m with gross cash at the end of the period at $19.3m from $15.9m at the end of June 2023. Chrome is now poised to take on more of a roll in operating cash flow and profits as the Thule plants are brought on str

Morning Note – 30 September 2024

Gulf Marine Services (GMS LN) - Contract awards

GMS has announced several new contract awards, including a new long-term contract to support offshore wind construction in Europe, all further growing the company’s backlog.