Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on WYG. We currently have 87 research reports from 6 professional analysts.
Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Alumasc Group plc, the prem ium building products, system s and solutions group, has announced its intention to m ove from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019 Argentex a UK-based forex service provider founded in 2011 by its current management team which operates as a Riskless Principal for nonspeculative and forward foreign exchange as structured financial derivatives is looking to join AIM. Offer TBC, expected 25 June
Companies: AMER CNC IGR DODS IOM FIH WYG AVG ING SPSY
WYG’s interims make reassuring reading this morning, confirming a stable performance in H1 and reiterating full year expectations. Consultancy Services has reported modest revenue growth and, importantly, an improvement in margins as a result of recent strategic initiatives. As a result Group operating profit increased slightly in H1 despite a decline in International Development (Turkey/IPA II hiatus). We see considerable scope for further margin enhancement over coming periods alongside improved cash generation, a key management priority.
WYG’s AGM update reiterates full year guidance despite highlighting some softness in International trading. The performance year to date has been broadly in line with the prior year and management remains focused on delivering a sustained improvement in operating margins and cash generation. Net debt has increased to £15.0m, but full year net debt expectations (N+1 S:£9.4m) are unchanged with a £3m receipt anticipated in short order alongside a seasonally positive H2 working capital profile. Whilst today’s update highlights some ongoing market challenges, we are encouraged by further signs of stability in WYG’s trading performance and expect management’s strategic initiatives to drive earnings recovery over the coming years.
A G Barr (BAG LN) | Directa Plus (DCTA LN) | Genus (GNS LN) | RhythmOne (RTHM LN) | Sigma Capital Group (SGM LN) | Speedy Hire (SDY LN) | Swallowfield (SWL LN) | WYG (WYG LN)
Companies: BAG DCTA GNS RTHM SGM SDY SWL WYG
We report on the performance of our momentum style screen since the last refresh three months ago and present the 25 new constituents. The screen underperformed small-cap and microcap indices modestly, though our previous focus stocks did significantly better. While momentum (as we express it) has outperformed smallcap significantly since inception of the screen in July 2016, this has arisen in shorter periods and appears to only coincide with a steadily rising small-cap index. We therefore consider this style screen to have limited predictive capability. We highlight seven stocks, which we think are interesting.
Companies: BMY EKT KEYS LGT MACF VER WYG
Edison Investment Research is terminating coverage on WYG (WYG). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.
WYG faced a number of challenges in FY18 but ended the year with an improved market backdrop, higher divisional order books and benefits from management actions starting to come through. Guidance and our profit estimates are unchanged. With greater business stability and a focus on margins and cash generation (plus receding legacy issues) investors will be able to concentrate on the earnings recovery story. This may be partly discounted following a recent share price pick up, but in the context of historic earnings levels there is more to go for.
WYG’s full year results contain few surprises. PBT was a fraction ahead of our forecast at £2.9m; net debt was better than expected at £6.3m (£8.0m forecast); and the full year dividend was maintained at 1.8p as expected (4.1% yield). H2 operating profit of £2.5m was more than double the H1 result, reflecting seasonal factors as well as the actions taken to address recent underperformance. The order book is growing in both business streams and WYG is now showing encouraging signs of stability. We make no changes to FY19 forecasts and anticipate a continued recovery in profitability through to FY20.
Abzena (ABZA LN) Forecast update | Carclo (CAR LN) Review completed, reassuring outlook | Driver Group (DRV LN) Continued earnings momentum | Fulcrum Utility Services Limited (FCRM LN) In line results; Positive outlook supported by strong order book growth | Gooch & Housego (GHH LN) Good H1 18, well set for H2 and beyond | Harwood Wealth (HW/ LN) 9 H1 acquisitions adding £310m AuI, forecasts unch | Renold (RNO LN) Cautiously optimistic | Vp (VP/ LN) A year of significant growth and strategic progress | WYG (WYG LN) Signs of stability in H218; FY19 guidance maintained
Companies: ABZA CAR DRV FCRM GHH HW/ RNO VP/ WYG
After a positive H2, results from WYG this morning are fully in line with expectations, notwithstanding earlier challenges. When we last wrote, net debt was still being finalised – in the event it is better (less) than forecast. Consultancy Services (CS) has seen a solid +7% increase in the order book, while international orders are up 27%, supported by a favourable climate in the company’s typical socio-economic and infrastructure projects, which are supported by governments and international agencies. With FY2018 results in line, we retain our FY2019E profit forecasts unchanged (raising our EPS forecast to reflect some changes in tax assumptions) and expect the business to make further progress in FY2020 (new forecasts published below). Net debt forecasts are cautiously moderated and our fair value assumptions remain unchanged.
A more settled trading period saw WYG end FY18 in line with market estimates. Management continues to work on improving organisational efficiency and structure including exiting unprofitable business. We have lowered the rate of expected progress beyond the current year – in line with guidance – pending more detailed order book and revenue run rate information with FY18 results, which are scheduled for 5 June.
Microsaic Systems (MSYS LN) Agreement with Unimicro Technologies | Motor Retail Upcoming registration data likely to weigh on share prices | NCC Group (NCC LN) Disposal of Web Performance | Summit Therapeutics (SUMM LN) £15m placing to advance ezutromid development | The PRS REIT (PRSR LN) Delivering as expected, driving towards target | WYG (WYG LN) FY18 outturn in line; tackling underperformance
Companies: MSYS NCC SUMM WYG
WYG’s update this morning makes it clear that the company has achieved the re-set forecasts for year to March ’18, notwithstanding the significant (one quarter / three quarters) H2 tilt, a noteworthy achievement; while also highlighting an order book up 8% YoY. Reading the statement, we see net debt, still being nailed down as a final number, as unlikely to stray very far from expectations. The businesses which saw issues in H1-18E have experienced no further deterioration, and we find encouragement in actions which continue to be taken to improve the efficiency and sustainable profitability of the business. We expect the company to report FY results in June, when we will publish FY2020E forecasts, but in the meantime, and noting the modest improvement which the company expects in ‘19E over ‘18E, we set new forecasts for FY19E at £3.4m PBTA representing, we believe, a very achievable step up from FY18E.
Applied Graphene Materials (AGM LN) - AGM statement reiterates recent progress Applied Graphene Materials’ AGM statement reiterates the progress that was made during 2017, including the additional production orders secured, at modest volumes, and the active engagement pipeline (currently around 100). As we said at the time of the fundraise in October, relationships with industry-leading partners are deepening and, whilst timing of adoption remains difficult to predict, the market opportunity is considerable with a number of potential milestones within the next twelve months. Best Ideas 2018 - Top picks Today we publish our Best Ideas for 2018, 16 stocks that we believe have great prospects in the current year together with a discussion of what we see as the key sector and market themes for 2018. We also review our picks of 2017 which in aggregate outperformed the wider market by 9% making this our 5th year in 6 of strong outperformance. Our picks for this year are Amino Technologies, Avingtrans, CVS Group, Curtis Banks Group, Dunelm, EKF Diagnostics, Fenner, iomart, M&C Saatchi, MJ Gleeson, Premier Global Infrastructure Trust, Realm Therapeutics, Severfield, StatPro Group, Verona Pharma and Yü Group. WYG (WYG LN) - Significant cash receipts from Turkey on schedule WYG has announced that, as at the opening of business on 2nd January, it has received €13.3m of the c.€14.0m due to its Turkish subsidiary. This is very good news and in line with the indication in December that the Group expects significant cash receipts from its business in Turkey before the calendar year end. The cash receipts underpin our £7m full year net debt forecast. The Board has reiterated its confidence that a significant proportion of the balance will also be paid in due course. This announcement is positive and highlights progress under new CEO Douglas McCormick who has taken steps to return the Group to growth over the medium-term.
Companies: Applied Graphene Materials WYG
H118 results quantified the adverse effects of the slower development of revenues highlighted in earlier updates, but also provided more clarity on near-term trading visibility. Converting improved order positions to rebuild earnings and meet market expectations is necessary to underpin valuation metrics, which, in turn, will help to regain investor attention over time. In the short term, a 4.7% dividend yield offers income attraction.
Research Tree provides access to ongoing research coverage, media content and regulatory news on WYG. We currently have 87 research reports from 6 professional analysts.
|09Jul19 12:55||RNS||Completion of acquisition by Tetra Tech|
|09Jul19 07:30||RNS||Suspension - WYG Plc|
|05Jul19 11:50||RNS||Court Sanction of Scheme of Arrangement|
|27Jun19 12:10||RNS||Results of Shareholder Meetings|
|19Jun19 11:00||RNS||Holding(s) in Company|
|11Jun19 07:00||RNS||Final Results|
An official at China's central bank has said the institution is nearing the launch of its digital currency. Speaking at an event in China over the weekend, Mu Changchun, deputy director of the payments unit at the People's Bank of China, said its researchers have been hard at work since last year to complete the systems needed to support the digital yuan offering and that it is "Close to being out." The news was reported by Bloomberg on Monday.
Companies: AMO BGO BOKU IQE TECH
Tencent shares slumped as much as 3.88% on Thursday after the Chinese technology giant missed analyst expectations, despite beating forecast on earnings. Revenue rose 21% year-on-year to 88.82 billion yuan. Profit attributable to shareholders beat analyst forecasts, rising 35% year-on-year to 24.14 billion yuan. The company's gaming division returned to growth, posting revenue of 27.3 billion yuan, up 8% year-on-year, with mobile games performing particularly well.
Companies: KAPE AVST BIDS CDM CNS DFX ECSC FLX FDEV GFIN IGP KWS NCC OSI SOPH SUMO TM17
Avation is a lessor of commercial passenger aircraft to a number of airlines, including VietJet, airBaltic, easyjet, Air France and Virgin Australia. The business was founded in 2006 by Jeff Chatfield, its current Executive Chairman, and is quoted on the full list. From a standing start, Avation has grown its fleet to 48 commercial passenger aircraft and has a proven capacity to buy and sell aircraft assets profitably. Its fleet is well diversified both by aircraft type and customer base. Our forecasts presently only reflect the addition of ATR 72-600s on order, leaving scope for our estimates to be raised as further aircraft are added to the fleet. Ahead of full year results next month, we see scope for another year of strong progress in FY 2020E for this US$ business and see fair value at 346p, some 20% above the current share price.
In January, we provided a list of 11 stocks for 2019 that we believed would perform strongly with attractive catalysts that could lead to material outperformance. In this Quarterly Research Outlook, we revisit these views, analysing what has happened and how the remaining six months of the year could play out.
Companies: AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE CYAN DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR HYR IBPO IOG INDI JHD JOG KAPE KEYS KCT KGH LAM LIT LOK MACF MANO PCA PANR PXC PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG SOM TWD TRAK TSG TRI VNET VTC ZOO ZTF
Volution’s trading update for the full year ended July 2019 shows sales up 16% and management anticipates that full year earnings will be in line with expectations. UK public residential RMI has returned to growth (+5.3% organic) as it has benefited from the improved sales processes and the enhanced product offering.
Companies: Volution Group
Vianet has released a business update this morning confirming trading for the first four months of FY20E has been as anticipated and the Group remains on course to meet market expectations. The Group has also successfully concluded negotiations on three long term contracts in its Smart Machines division; set to generate c.£10m of revenues over the next three to five years and underpinning forecasts. The shares have drifted back from recent highs of 147.5p to trade at just 118p (2.0 EV/Sales, 11.2x FY20E P/E) offering a compelling entry point yielding 4.8%. PT 185p. Buy.
Companies: Vianet Group
Warren Buffett once said that as an investor, it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. Fear is not in short supply right now.
Companies: OPM ALU ANCR BLV CONN CRC FDL GATC HAT LEK MMH MCB MWE NXR NTBR NOG PAF PEG RFX SRC TEF TEG TPT VTU WYN XLM
British Airways said its flights were returning to normal after passengers had to endure cancellations, delays and long queues at London airports as the airline suffered its third major computer failure in a little more than two years. More than 60 flights to and from Heathrow and Gatwick were cancelled and more than 100 were delayed, according to the departure boards at the two airports.
Companies: KAPE AVST CNS DFX ECSC FLX IGP NCC OSI SWG SOPH
The introduction of IFRS 2 in 2004 generated considerable debate about the best approach for handling ‘share-based payments’ (SBP). While it is clearly a cost to shareholders, which should be included in the statutory reporting lines through the P&L account, the question arose as to whetherit should be part of our underlying EBIT calculation.
Companies: AVO AJB AGY ARBB CLIG DNL DPP FLTA GTLY GDR KOOV MCL MUR NSF OXB PCA PHP RE/ REDX RMDL STX SCE TRX TON SHED VAL VTA W7L
In line results and 5% growth at the PBT level masks a strong performance in Broking with 37% YoY divisional profit growth coming despite unhelpful shipping market conditions. There was some help from a weak comparative and a currency tailwind, but the underlying performance was encouraging.
Epwin’s H119 update reiterated existing guidance. Markets remain soft but business improvement activities, including new facility and product development investment, are ongoing and should be reflected in earnings improvement. The company remains conservatively funded and in a good position to continue to develop. An excellent dividend yield and modest rating at an earnings low represent good entry points for investors.
Companies: Epwin Group
Interim results in line with expectations with 10% revenue growth, driven by the MPS acquisition. We make no changes to our earnings estimates and continue to expect FY19 FD EPS of 28.4p.
Companies: Mears Group
The Norcros management team is delivering against expectations and maintaining a stable outlook even though certain underlying markets have their challenges. In contrast to its market positions, the company’s rating is anything but premium as the building materials and, perhaps, buy and build strategies appear to be out of favour with investors. The track record is very good – as is the prospective dividend yield – and greater recognition of this is warranted in our view.
In its largest acquisition to date, Avon Rubber is buying the ballistic protection assets of 3M, a market leader in the US. The purchase price of an initial $91m could increase by a further $25m depending on the outcome of tenders for legacy products. Subject to approvals, the deal should complete by fiscal Q220 and be immediately earnings enhancing, creating value in FY21, its first full year of ownership. Avon has also indicated that trading remains in line with management expectations, so our forecasts remain unchanged at present. We will update our forecasts for the acquisition when it completes in FY20.
Companies: Avon Rubber