Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CONNECT GROUP PLC. We currently have 18 research reports from 3 professional analysts.
|30Dec16 10:42||RNS||Total Voting Rights|
|21Dec16 12:26||RNS||Payment of Deferred Consideration|
|30Nov16 09:00||RNS||Total Voting Rights|
|28Nov16 12:14||RNS||Annual Financial Report|
|31Oct16 04:15||RNS||Total Voting Rights|
|18Oct16 07:00||RNS||Preliminary Results for the y/e 31 August 2016|
|30Sep16 12:25||RNS||Total Voting Rights|
Frequency of research reports
Research reports on
CONNECT GROUP PLC
CONNECT GROUP PLC
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).
02 Jun 16
Highlights this quarter: Topic of the quarter: A significant proportion of the Support Services industry is characterised by regular, scheduled visits driven by fear that something might be about to go wrong. Maintenance schedules by Facilities Managers or visits by Home Carers for example. An entire cost base dedicated to continuously rotating skills around a client base (preventative) sits alongside another cost base focused on fixing a problem when the safety net fails (reactive). But what if you could tell that a part is about to fail or a particular service is about to be needed (predictive)? The Internet of Things holds enormous potential for the Support Services sector. Those fleets of white vans that currently monotonously tour clients will only be seen when they are on-route to a specific need, laden with precisely the right part. Economic indicators: The outlook remains weak. While services PMIs remain better than manufacturing, service sector growth in the UK weakened in April. Labour markets remain strong but uncertainty in the UK, driven in part by the potential Brexit, has resulted in a switch from permanent hiring to temporary, despite the National Living Wage driving the sharpest rise in temporary pay since mid-2007. Sector newsflow: People skills are in demand this quarter with takeover bids for Penna and Sweett Group (following on from ISG and Xchanging last quarter). Serco continues on its recovery path with contract renegotiations yielding benefits, and Babcock has extended its track record of delivery with another good set of results and solid outlook. MITIE highlighted lower UK growth rates with further government spending cuts, increasing labour costs and uncertainty relating to the EU referendum. HSS has seen some signs of softness in the UK and Lakehouse revised down its expectations again. Sector valuation: The sector has underperformed the All Share by -0.8% in 2016 with smaller companies reversing some of the significant outperformance from 2015. Logistics (driven by Menzies and the mail providers) and Equipment Rental (as Aggreko and HSS started to reverse significant declines in 2015) are the best relative performers to date. Other outperformers are Consultants (we highlight Utilitywise in this note), Distributors (Acal is also set to benefit from IoT) and Self Storage (where we continue to highlight Lok'nStore as the best way to play structural growth here, supported by relative valuation).
19 Apr 16
Utilitywise*: Strong interim results (CORP) | Trifast^: Positive year-end trading update (BUY) | M.P. Evans: Appealing blend of value, growth, stability (BUY) | Telecom Plus: Full-year trading update (BUY) | Independent Oil & Gas*: Blythe acquisition (CORP) | Connect: Leveraging the strengths of the group (BUY)
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.
N+1 Singer - Small-cap quantitative research - Momentum screen refresh + 10 focus stocks
12 Jan 17
We have refreshed our momentum style screen for the first time since inception on 26 July 2016. As before, the screen selects the 25 stocks exhibiting the most extreme momentum characteristics, according to our measurement method. From these we have selected 10 to focus on. Since inception the screen has underperformed both the main small-cap and micro-cap indices against a background of generally rising momentum. We have noted a subset of the basket, where decelerating momentum at the time of measurement appears correlated with significant share price falls since selection. We shall monitor this factor with the new screen, albeit there are only two such stocks showing this pattern, namely Lamprell (not rated) and Gear4music (not rated).
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
N+1 Singer - Morning Song 12-01-2017
12 Jan 17
As anticipated, the second half has again been stronger than H1 and results will be broadly in line with expectations. In line with this, the order book has continued to grow and is at record levels. This confirms that significant progress has been made in the Group’s shift towards its Technology Products division which, as targeted, contributed c.60% of group revenue in FY16. The small acquisition of Cable Power also gives a complementary boost to the product range. It is also worth noting the significant reduction in net debt, £1.0m ahead of our forecast. We remain supportive of the Group’s strategy and continue to see a bright future as this transition towards a design led technology solutions business continues. We look forward to more detail in March at the final results.
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.