Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on AO WORLD PLC. We currently have 7 research reports from 2 professional analysts.
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AO WORLD PLC
AO WORLD PLC
Panmure Morning Note 12-01-2017
12 Jan 17
AO World has provided a trading update for the three months to 31st December 2016 which is below our, and the market’s, expectations. We remain bearish on this stock and we will eagerly await management’s commentary on the amendments to IFRS 15 this morning which could affect the way the company accounts for the revenues generated from product protection plans.
UK ahead of expectations but Europe continues to disappoint
22 Nov 16
Whilst AO has reported UK revenue and earnings growth ahead of our estimates, the European business continues to fall short of our expectations. A substantial increase in service sales has massively benefitted revenue and margin and our analysis shows that falling bond yields have led to a greater contribution from product protection plans. Europe shows no signs of profitability and management have stated that the company will not reach breakeven in the territory until 2020. We reiterate our sell recommendation.
Consensus eps falling…falling…falling…rising 2.0
29 Apr 16
In January we screened for companies with estimates that had been declining consistently since a year previously, but which had risen in the immediately preceding three months (see our note dated 22 January 2016). We have reviewed the performance of those companies and, given the overall strength of this selection, we have re-run the screen. In the c.3 months since selection, the unweighted average rise was c.34% against a c.11% rise in the main All-Share index. From the same universe as before (some 900 companies) we find 38 companies selected by the screen. We note a number of stocks in the list where we have a supportive stance including: Devro (DVO LN, Buy), James Fisher (FSJ LN, Corporate), Mattioli Woods (MTW LN, Buy) and Spirent Communications (SPT LN, Buy).
Panmure Research - AO World PLC Flash 12-01-16
12 Jan 16
We continue to question the profitability of AO World's business model this morning, despite the marked acceleration in own website sales growth continuing through 3Q2016. We believe that the house broker's recent notes stave off a potential profit warning later in the year, that the downgrade cycle is yet to end and that the net cash position is becoming alarmingly tight. Our valuation analysis shows the stock to be worth 99p (from 114p), a significant discount to prevailing market price.
Panmure Research - AO World PLC Flash 21-07-15
21 Jul 15
We explained on the 7th July in a note titled ‘Missing Estimates' that it should become apparent after today's trading update that the company will struggle to meet full-year market expectations. Although management stated this morning that they ‘expect the business model to deliver as expected for the full year', we have an increased level of conviction in our argument following the Q1 IMS.
Panmure Morning Note 07-07-15
07 Jul 15
It should become apparent on the 21st July when AO World (‘AO') reports its Q1 interim management statement that the company will struggle to meet full‐year market expectations. With website traffic deteriorating on both sites, three consecutive quarters of tough comparatives ahead and a 4Q2015 exit rate of just 13.2%, downgrades to consensus sales and earnings estimates through FY2018 are most probable. We have downgraded our sales and earnings estimates for both territories ahead of the next trading update and have reduced our price target to 114p from 130p.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Acceptance of all-cash offer by Kindred Group
23 Feb 17
32Red has agreed an all cash takeover by Kindred, at 196p per share. Together with an approved 4p dividend, this represents a 32.4% premium to last month’s average. This equates to 10.6x EV/EBITDA and 14.3x P/E for 2017, a small premium to the larger peer group. Given 32Red’s brand strength, regulated bias and growth momentum, this appears justified.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The imminent disposal of HotelInvest opens a new page for AccorHotels
23 Feb 17
Strong pace of FY16 results, strong prospects underpinned by a new strategy Accor released its FY16 results, marked by a challenging French market which as expected was heavily impacted by the terrorist attacks last year. But international geographies performed strongly and the overdue disposal of the property arm was further detailed (under the so-called Booster project) with a closing due in H1 17. This is paving the way for a new strategy for the group consisting of boosting the weight of private rental activities and community services (including concierge services via the recently-acquired John Paul), both to be at the heart of the company’s growth. Tough French market, but clear improvements in Q4 FY16 sales grew by 2.2% (+0.9% reported) in line with the market’s expectations with robust performances across most geographies, with improved figures in Q4 (sales lfl +3.1%, RevPAR +1.3%). In France (-2.8% lfl in sales but -1.2% in Q4), trading conditions remained challenging in Paris (RevPAR -13.2% in FY16) as a result of the terrorist activity, contrasting with the Provinces which held tight (+4.2% in RevPAR). At the group level, the UK (+2.3% in FY16 RevPAR, o/w +3.8% in Q4) and Germany (+4% in FY16 RevPAR, +3.1% in Q4) along with a strong Asia Pacific (+5.5% in sales LFL) and the Americas (+4.7% LFL) helped to compensate for the poor French market. Strong international markets, record EBIT level Group EBIT reached a record €696m level (+4.6% reported, +3.8% lfl, the EBIT margin at 12.4%, +50bp yoy) fuelled by a robust Q4 (improved performances in France), organic activity (+€25m), the contribution of FRHI (over 6 months in H2, €48m) and hotel development (€7m), all of which compensated for the negative contribution of new businesses (including Fastbooking, Onefinestay and John Paul) and FX impacts (€18m). The Asia-Pacific region (+32% in EBIT lfl) benefited from the sustained development completed since 2014 while the UK and Germany played as strong supports for the NCEE region (55% of Group EBIT, +9% lfl). Brazil continued to weigh on the Americas’ performances (-18% in EBIT lfl) while France (-13% in EBIT lfl) felt the pain of the terrorist attacks in Paris and Nice. The group’s net profit rose by 8.6% at €265m while net debt reached €1.6bn (vs €194m of net cash position in FY15), largely due to acquisitions, including FRHI (for €2.6bn, partly financed by €768m of cash).