Q3 sales unsurprisingly better than Q2
Healthcare and Electronics were still very strong
Industrial merchant still strongly impacted by the pandemic
We will not materially change our estimates after this release
Companies: Air Liquide SA
The H1 20 numbers confirm the impressive resilience of the group’s businesses
Margins were improved despite some pressure on the top line
The outlook for H2 is rather reassuring
We will only fine-tune our numbers
Q2 looks set to be tougher, of course on the COVID-19 outbreak in Europe and the US
At this stage, the outlook revision is not massive (lower sales, net earnings slightly down yoy)
The shape of the recovery remains unclear though
We will marginally adjust again forecasts downwards to account for this uncertainty
FY19 in line with consensus and slightly above our estimates at the operating level
The pace of growth has slowed in Q4 though
No major impact anticipated so far from the Coronavirus crisis
We will fine-tune our numbers with little change in all odds and may revisit the valuation metrics
Q3 19 a little softer, in line with our expectations
The group reiterates its usual and rather vague outlook
No major change to our view/numbers
The group posted a rather sound top-line growth which has enabled an increase in recurring margins
The level of investment decisions remains high as is the backlog
All segments have done reasonably well, with no slowdown in Q2
Fears on the macro side are likely to cap the stock performance though
- Q1 19 revenues well in line with our numbers
- Good performance of Electronics and Asia (ramp-ups)
- We will only fine-tune our numbers
Air Liquide released its FY18 results. Revenues reached €21,011m (+3.3% and +6.1% comparable), recurring operating income €3,449m (+2.5% and +7.6% comparable) and net income €2,113m (+4.2% excluding exceptional items and +8.7% comparable). Net debt at the end of FY18 amounted to €12,535m vs €13,371m in FY17, €15,368m in FY16 (and €7,239m in FY15). As a reminder, Airgas has been consolidated since 23 May 2016. The dividend proposed will be €2.65 (unchanged). The outlook is also unchanged (for years now), calling for “profit growth in FY19 at CER”.
Sales for the third quarter amounted to €5,271m (+6.6% reported, +6% comparable). The group issued the usual outlook, calling for a net profit growth in 2018, calculated at constant exchange rate and excluding 2017 exceptionals (mainly US-tax related). This outlook was already stated in Q1 and H1 (and has not changed for years now…).
Air Liquide released its H1 18 results. Revenues reached €10,162m (-1.3% and +5.8% comparable), recurring operating income €1,617m (-2.3% and +6.2% comparable) and net income €1,040m (+12.1% and +10% recurring). Net debt at the end of H1 18 amounted to c. €14.2bn vs €13.7bn in FY17 (and €7.2bn in FY15 before the Airgas acquisition). As a reminder, Airgas has been consolidated since 23 May 2016. The group indicates it will reach the Airgas synergies a year ahead of plan. The outlook is unchanged (for years now!): profit growth in FY18 on a comparable basis and at CER (excluding the FY17 exceptionals, including in particular the US tax reform).
Sales for the first quarter amounted to €5,010m (-3.2% reported, +6% comparable). The group issued the usual outlook of net profit growth in 2018, calculated at constant exchange rates and excluding 2017 exceptionals (mainly US tax related).
Air Liquide released FY17 results. Revenues reached €20,349m (+12.2% and +2.9% comparable), recurring operating income €3,364m (+11.2% and +7.5% comparable) and net income €2,200m (+19.3% and +10% recurring). Net debt at the end of FY17 amounted to €13.7bn vs €15,368m in FY16 (and €7,239m in FY15). As a reminder, Airgas has been consolidated since 23 May 2016. The dividend proposed will be €2.65 (vs €2.60, i.e. +12.4% taking into account the free share attribution in October 2017).
Air Liquide released Q3 17 revenue numbers. Sales amounted to €4,944m (-0.3%, including Airgas, and +3.5% lfl). Gas&Services revenues were up +4% on a comparable basis. The impact of currencies in Q3 was a negative 4% (mainly the US dollar and Japanese yen).
Air Liquide released H1 17 numbers: revenues reached €10,293m (+28.4%, +1.8% adj. comparable), recurring operating income €1,656m (+6%) and net income €928m. Net debt at the end of H1 17 amounted to €15,610m. The group also confirmed that it will distribute one free share for every 10 shares held, to be allocated on 4 October 2017.
Revenues for the first quarter amounted to €5,176m (+38.5%, including Airgas, +1.5% lfl).
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The group’s year-end update points to stronger than expected Q4 trading, boosted by robust sales in North America that translated efficiently to upside on profitability expectations. Cash performance has once again been stellar, resulting in net cash of $35m, considerably higher than forecast, partly profit drop-through and partly from tight working capital management. We are therefore upgrading our FY 2020 EPS by 25% to 33.2ȼ. The strong cash position also results in a boost to the total dividend, giving a dividend yield of 6.7%. We raise our price target from 285p to 435p, based on a target P/E of 17.0x offering upside to the current P/E of 13.8x.
Companies: Somero Enterprises, Inc.
Inspiration Healthcare has announced it expects revenues and profits for the year ending January 2021 to be ahead of market expectations. Revenues are expected to be at least £36.5m and adjusted EBITDA at least £4.9m. We have moved our FY21E forecasts into line with these expectations, which are c3% and c11% ahead of our previous forecasts for sales and adjusted EBITDA, respectively. We note the key driver of the upgrade was performance at S.L.E., which Inspiration Healthcare acquired in July 2020. We reiterate our Buy recommendation on Inspiration Healthcare.
Companies: Inspiration Healthcare Group PLC
Last night, Qualcomm delivered a keynote speech at its Automotive Redefined event where it iterated its partnership with Seeing Machines for DMS on its ‘Snapdragon Ride' platform. In the same keynote speech Qualcomm noted that it has won 20 different OEMs (through many different tier 1 suppliers and partners, including Seeing Machines) which are going into production in 2021 with its Gen 3 Snapdragon Ride platform. We do not see this as meaning that these OEMs will automatically adopt Seeing Machines DMS in 2021 for these platforms (other PR materials imply the optimised DMS solution is not yet ready), but the implication from the Qualcomm slide (on the page 2) is that a number will. We also believe it is unlikely that these OEMs will chose an alternative DMS solution for these vehicles when they want or require it. With regulatory compliance needed for NCAP and EC by 2024, it is our view that most of these OEMs will eventually source Seeing Machines DMS for at least their EU sales using the scalable Gen 3 Snapdragon Ride platform. In a separate press release Seeing Machines and Qualcomm have also announced a deepening collaboration with Seeing Machines further optimising its technology stack for the Snapdragon Automotive Cockpit Platform architecture as the two companies market the combined framework to automotive Tier-1s and OEMs. In addition, Seeing Machines's previously announced Embedded Development Kit (EDK) for Qualcomm's Snapdragon Automotive Cockpit Development is now available to select Tier 1 and OEM customers.
We increase our target price to 12.9p from 8.6p based on increased confidence in our long-term automotive market share expectations.
Companies: Seeing Machines Limited
TP Group experienced a material improvement in trading in H2/20, with the period accounting for nearly two thirds of the group's £3.8m FY20 Adj EBITDA, mainly due to the timing of some larger contracts. The order book remains robust at c£69m (up c20% YoY); however, the pandemic continues to create uncertainty around the timing of contract deliveries, and consequently, our forecasts remain withdrawn and our rating Under Review. Notwithstanding, we believe the significant operational changes made over the past year help to accelerate the business' software and consulting services, and leave the group well positioned for future growth.
Companies: TP Group Plc
Today’s FY20 trading update indicates that the business did not miss a step in FY20. Underlying profitability was very marginally ahead yoy and net debt has peaked and, with the factory move completing later this year this, will fall increasingly quickly. Looking forward, FY21 will see significant growth, underpinned by the LAICA contribution, but importantly underlying organic growth is expected to be c.10%. Trading has started well in the new financial year providing confidence in forecasts at this early juncture. Strong organic and acquisitive growth drives an 10% increase in profitability and the dividend for FY21. With the platform to deliver significant growth in revenue and earnings over the next five years, 15.5x current year earnings is appealing. Particularly for a business with such defensive cash flows. This is evidenced by a prospective dividend yield of 3.6%. We increase FY20 profit forecasts marginally to reflect guidance in today’s statement and lower net debt.
Companies: Strix Group PLC
Although 2020 will probably go down in history as one of the most challenging years experienced during our lifetime, it will also likely be chronicled as one of the best years for the recognition and appreciation of science. As we entered 2020, the COVID-19 pandemic was in its infancy. However, it rapidly evolved through the exponential rise in infections and mortality globally. Much has been achieved during the past 12 months in the fight against COVID-19, but, as we enter 2021, there are considerable concerns about the emergence of a mutant version of the virus and the second wave that we are now facing.
Companies: AVO ARBB ARIX BBGI CLIG DNL FLTA ICGT OCI PCA PIN PHP RECI STX SCE TRX SHED VTA YEW
Itaconix has confirmed a positive conclusion to FY20, with revenue, EBITDA and net cash all slightly ahead of expectations. This builds on the positive trends reported in October’s interims, driven by successful customer product launches. Itaconix enters FY21 with good momentum and strong sustainability credentials. We plan to introduce FY21 forecasts alongside full year results.
Companies: Itaconix plc
Filta's FY20 trading update confirms a much stronger performance for the group in H2 versus that in H1, boosted by an increasing number of customers opening up during the summer period. Despite Covid-19 significantly affecting the restaurant and leisure sector, a strong focus on cash management meant that Filta reduced its net debt (excluding leases) by £0.4m YoY to £0.5m. With a healthy sales pipeline, solid balance sheet cash position (£4.2m), and vaccine roll-out progress, management has more certainty in the business' outlook than at any time over the past 12 months. Notwithstanding, the speed at which trading conditions will return to normal remains unclear (eg potential impact from new strains of the virus emerging, unexpected delays in vaccine production etc). As such, we refrain from reinstating forecasts, and maintain our Hold rating.
Companies: Filta Group Holdings PLC
Directa Plus has had its contract with OMV Petrom extended and increased. The contract, initially awarded in July 2019, was for the provision of decontamination and oil recovery services using the Company's proprietary Grafysorber® technology. The initial value of the contract was €150k (of which €75k was delivered and invoiced in 2020) and this has now been increased to €410k, the balance of which is expected to be fulfilled by June 2021.
Companies: Directa Plus Plc
The Group made strategic progress in FY20A despite the onset of COVID-19. Management acted swiftly implementing a strict cost reduction programme, ensuring robust cash management. This combined with strengthening the Board and management teams, exploring new revenue streams and investing in technology to drive efficiency gains has positioned the Group to overcome short-term demand fluctuation. We are confident the Group will capitalise on the operational gearing within the business as demand levels revert to pre-pandemic levels. Corollary to this we expect financial performance to materially improve in H2/21 and beyond.
Companies: Velocity Composites Plc
Capital Limited has released its Q4 and FY2020 trading statement this morning. Overall it shows 2020 was a strong year for the company with revenue growing 18% and most other operating metrics growing positively with it – see Fig 1. We have adjusted our forecasts accordingly and also to take into account the mining services contract for the Sukari Mine which the company won late last year. The latter is a game changer for Capital and its investment case in our view; turbo charging revenue growth, enhancing margins and diversifying cashflow all of which should lead to materially higher valuation multiples. We raise our PT to 127p.
Companies: Capital Limited
Journeo is a specialist provider of information systems and technical services to the transportation sector. This morning, the group has announced that under its existing Transforming Cities Fund framework contracts, it has received further orders for its advanced public transport information systems.
Companies: Journeo plc
Journeo is a specialist provider of information systems and technical services to the transportation sector. Following on from Friday's announcement confirming a further £1.3m order under the Transforming Cities Fund framework, the group has this morning announced a 1-year extension to its existing framework agreement with First Bus, worth an estimated £1.8m, the majority of which is expected to fall into the current financial year.
Initiating with a Buy rating. We initiate our coverage of Proton Motor Power Systems (“Proton Motor”) with a BUY rating and a target price of 201p. Our valuation equates to a market capitalisation of £1.47bn, compared to a current share price of 65.5p and a market cap of £479m.
Companies: Proton Motor Power Systems Plc
Today’s trading update indicates that revenue continued to recover during the second half of FY20. For the year it declined 15%, to £95.1m, but H2 saw an improvement with it declining 8% yoy. This indicates that trading in the final quarter improved materially and is likely to have been low single digit down yoy. Net debt of £11.7m is significantly better than the £14.5m reported at the end of June and shows a continuation of the improvement seen over the previous 18 months. The Company has already stated that it will fall again in FY21. £1.6m of cost savings had initially been identified and an additional £1.0m announced at the interims. Good progress has been made on the initial target, albeit lockdown restrictions are causing a delay in some areas.
Companies: Flowtech Fluidpower plc