Synnovia (LON:SYN) has released its full-year (FY) results to March 2019. These were in line with the forecasts we issued following the April 2019 trading statement. Revenues increased 8.7% to £81.6mln, earnings before interest, tax, depreciation, and amortisation (EBITDA) were up 7.3% at £7.5mln,
FY19A results confirm another record year for revenues (£81.6m, +9%) and adj EBITDA (£7.6m, +7%), reflecting returns on prior capital investment. Synnovia has now resolved disruption from the installation of new Films capacity over Q4/19 and we see potential for margin appreciation across the group in FY20E. However, today's cautious outlook statement warns of relatively weak trading over Q1/20E following evidence of pre-Brexit stockpiling. Despite this, we still expect the current organic momentum to continue given new business wins, with a 5% uplift in EPS in FY20E.
Synnnovia PLC (LON:SYN) has released a trading update for the year to 31 March. The company continues to expect significant growth in revenue and profits, with progress remaining strong in the higher margin Industrial division. However, profitability for the group as a whole will now be below previo
Synnovia has provided a further trading update at FY19A's close, confirming the effect of previously highlighted capacity constraints in the Films division have not been fully overcome, leading to FY19A results being “marginally below” our previous expectations (revenues £83.1m, adj EBITDA £7.8m, adj EPS 10.3p p/s). While this event, along with additional costs associated with Synnovia's continuing investment programme, will now hinder meaningful EPS growth this year, we consider the former to be a temporary operational issue which is set to be resolved early into FY20E. Despite this, Synnovia is still set to deliver strong, organic YoY revenue growth (+9%) and profit/EPS improvement (albeit more modestly) this year.
Synnovia plc (formerly Plastics Capital plc) issued a trading update today indicating that although trading has been strong across the Group, capacity increases in the Films Division were delayed beyond expectations. These delays, coupled with associated increased costs and unexpected cost inflation, have impacted profitability in Films. As a result, Group profits are expected to be marginally below current market expectations but still ahead of the previous year. Trading in the higher margin Industrial Division has remained strong, especially in the bearings business. To reflect the reduced profitability within the Films Division we are reducing Group EPS forecasts by c.9% to 9.7p for the year to March 2019 and c.10% to 11.5p for FY2019/20. (Ian Jermin)
Synnovia (LON:SYN) released a trading update on 19 February, confirming that trading in the full year (FY) to 31 March is broadly in line with expectations. We continue to forecast growth in revenue and earnings; however, we are lowering our FY earnings per share (EPS) forecast from 11.9p to 10.4p
Synnovia has provided a trading update today, stating that it expects FY19E results to be “broadly in-line” with market expectations. The slight shortfall versus our previous forecasts (£83.8m in revenue, £8.3m of adj EBITDA) comes as the Films division recently suffered delays in the installation of new capacity leading to temporary constraints in the face of strong demand, while the operationally geared Industrials division has made further YoY progress since the interim results. We consider the shortfall to be a temporary in nature and see Films' need to add capacity as a positive indicator of growth prospects into FY20E and beyond.
Synnovia plc (formerly Plastics Capital plc) issued a trading update today indicating that although trading was strong across the Group, capacity and capability increases in the Films Division have been delayed. Relative to expectations, volumes and margins are down as higher margin products have been the ones constrained by capacity. Meanwhile costs were increased during the year to meet the additional volumes which have not fully come through. Although the Group expects full year results to March 2019 to be broadly in line with market expectations, we believe it prudent to pull back our EBITDA forecast by around 15% from £8.6m to £8.0m and adjusted EPS from 11.9p to 10.7p. (Ian Jermin)
Plastic's interim results continue the narrative from FY18A of strong organic growth as a result of continued investment in the business. However, this year, given a rebound in the operationally geared Industrials division (in particular in bearings) and an unwind of FX hedges, material profit growth has also been witnessed. This result provides a solid start to achieving FY19E forecasts. Given current progress, the Board has revised its long-term organic EBITDA target to £15m+ by FY23/24E.
Plastics Capital plc (shortly to be renamed Synnovia plc) reported excellent results for the half year to September 2018. Strong organic growth in the operationally geared bearings business, continued progress in the creasing matrix activities and another period of encouraging growth in films, led to revenue growth for the Group of 12.1%. Investment in all business streams utilised the cash generated in the half year as well as additional borrowings, resulting in a modest increase in net debt from £15m to £15.7m. The Group also benefitted from the depreciation of sterling post the Brexit referendum leading, in part, to an increase in adjusted EBITDA of 42.8%. Trading in H2 has started well and we believe that the group is on track to meet our full-year earnings expectations and therefore we retain our fair value of 130p.
Plastics Capital (LON:PLA) has reported first half (H1) results to September 2018 showing revenue growth of +11.4%, underlying earnings (EBITDA) growth of +42.8%, and adjusted earnings per share (EPS) growth of +67.9%. These results reinforce our confidence in our full-year (FY) March 2019 forecasts, including our EPS growth forecast of 25.3%.
Plastics has provided a positive trading update confirming FY18A's double-digit organic revenue growth has continued through H1/19E. Group profit has also improved, as the operationally geared Industrials division recovers after a disappointing FY18A. Trading to date is in-line with FY19E forecasts, a year in which we expect 21% growth in adj EPS. Despite this, the shares trade on a P/E of 9.6x and we expect this to appreciate with continued evidence of a successful FY19E delivery.
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Treatt has performed well during FY20 despite the pandemic. There was strong momentum across the tea, health & wellness, and fruit & vegetables categories, and citrus markets recovered as expected. The strong growth across the non-citrus segments is resulting in a slightly reduced dependence on citrus (now 50% of sales). The UK relocation was slowed down as a result of the first lockdown, but the building work is now complete and the move will begin in mid-2021. While management report a strong start to the new financial year, the outlook is understandably uncertain: demand is not expected to return to normal levels before the end of FY21 or into FY22, though management is confident the business is in the best possible shape to face the uncertainty. The FY20 results demonstrate this, with a good cash performance and a 9% increase in dividends implying management’s confidence in the year ahead.
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Treatt has had another successful year, and the COVID-19 pandemic so far has not materially affected trading performance. The sharp fall in citrus prices has had an impact on revenue growth, which is down 3% at constant currency for FY20. However, profit performance was strong as there was good growth in the other parts of the business, with health & wellness and fruit & vegetables posting double-digit revenue growth, and with the higher-margin parts of the business continuing to outperform. The UK relocation project continues, with construction nearing completion and a move to the new site expected in spring 2021, and the outlook for FY21 is cautiously optimistic. Our fair value increases to 670p (from 560p).
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Treatt’s FY19 results are testament to the resilience of the business: despite a 10% revenue decline in the citrus segment – caused by a sharp fall in citrus input prices – 16% growth in Treatt’s broadened portfolio of non-citrus revenues resulted in overall reported revenue up 0.5% (-2% at constant currency), in line with our estimates. The key non-citrus categories of tea, health & wellness and fruit & vegetables continue to perform exceptionally well and the company has recently entered the coffee space, which is expected to provide further growth opportunities. Management’s outlook for FY20 is positive, despite citrus pricing continuing to show weakness. Our fair value remains unchanged at 530p.
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