Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CONNECT GROUP PLC. We currently have 23 research reports from 3 professional analysts.
|22Feb17 07:01||RNS||Director declaration|
|20Feb17 17:06||RNS||Director/PDMR Shareholding|
|10Feb17 16:31||RNS||Director/PDMR Shareholding|
|08Feb17 16:40||RNS||Director/PDMR Shareholding|
|07Feb17 17:04||RNS||Director/PDMR Shareholding|
|07Feb17 07:00||RNS||Disposal of Education & Care division|
Frequency of research reports
Research reports on
CONNECT GROUP PLC
CONNECT GROUP PLC
Steering towards growth
16 Feb 17
Connect has sold its Education and Care division for £56.5m (plus the division’s £7.9m pension deficit goes), ahead of our assumed £44m. This improves our sum of the parts-based target price to 200p from 196p but more importantly is evidence of management action to realise value. Net debt reduces substantially, leaving FY 2017E net debt/EBITDA on 1.2x, and the progressive dividend policy remains unchanged. Hence, while we factor in a 13% dilution from the sale into EPS, we are leaving our dividend forecasts unchanged. With the dividend yield at 7% (and growing) and the potential for a re-rating as the return on investment into the new growth areas comes through, we reiterate our Buy recommendation.
07 Feb 17
Europa Oil & Gas* (EOG): Wressle planning resubmission (CORP) | Premaitha Health* (NIPT): New customer wins in Southern Europe (CORP) | Amino Technologies* (AMO): Scale, breadth, and growth (CORP) | Hurricane Energy (HUR): Lancaster technical analysis (BUY) | Connect (CNCT): Disposal strengthens balance sheet and reduces risk (BUY) | Mattioli Woods (MTW): Acquisition and results (BUY) | RM Group (RM.) Prelims and acquisition (BUY)
26 Jan 17
Frenkel Topping* (FEN): Reassuring pre-close update (CORP) | Netcall* (NET): Robust trading, growth in Saas (CORP) | ClearStar* (CLSU): FY 2016 on track and bright prospects (CORP) | Connect (CNCT): Mixed trading performance continues to be managed (BUY) | Firestone Diamonds (FDI): Commissioning update (BUY)
17 Nov 16
Topic of the quarter: Following on from our last quarterly we have delved further into the potential and challenges that the Internet of Things present the sector. Having spoken to a wide variety of companies from the sector (large and small, UK and overseas) it is apparent that there is going to be a very significant increase in the amount of data either generated by or available to Support Service companies. The key to generating value from this change will be breaking down the silos in which data is currently held, attracting and investing in the right skills and talent, seeing beyond the short-term investment that is likely to be needed and engaging with clients on a higher, more strategic level. If the sector doesn’t react, then the door is wide open for the Technology sector.
6.9x P/E, 7.2% dividend yield
10 Nov 16
Connect is investing in two growth businesses: specialist parcels delivery and a click and collect service. The mature and cash generative nature of the main newspaper distribution business means that this can be done at the same time as paying an attractive and growing dividend, but also that short-term earnings growth is limited. The share price is entirely focused on the short term, with a 6.9x P/E and 7.2% dividend yield. Once the return on investment into growth areas has been fully proved (in 12-24 months), we believe disposals are possible to realise value and/or additional returns to shareholders. Our sum of the parts valuation is 196p (44% upside).
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 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.
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
Emerging from the clouds
16 Feb 17
Rolls-Royce’s underlying performance in FY16 was ahead of both its own and market expectations. Media focus on the non-cash £4.4bn headline FX loss is missing what looks to be the basis for optimism. As the civil model starts to move from investment in engines for the A350 and A330neo into the aftermarket delivery phase over the remainder of the decade, we think cash flow is likely to improve, particularly if supported by an eventual recovery in Marine.