Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SWEETT GROUP PLC. We currently have 13 research reports from 2 professional analysts.
|24Aug16 01:35||RNS||Holding(s) in Company|
|19Aug16 04:13||RNS||RICS Hearing|
|10Aug16 12:09||RNS||Director/PDMR Shareholding|
|09Aug16 02:08||RNS||Director/PDMR Shareholding|
|09Aug16 10:51||RNS||Issue of Equity|
|09Aug16 07:49||RNS||Notice of cancellation of trading of shares|
|03Aug16 11:21||RNS||Form 8 (DD) - Sweett Group plc|
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SWEETT GROUP PLC
SWEETT GROUP PLC
Trading update for FY2016
26 Apr 16
In its core operations Sweett Group expects to report for year-end March 2016 adj. PBT (before three “one-offs” totalling £0.8m) of c.£3.0m on revenue of £54.9m (vs £51.5m in FY2015). For FY2016 the aggregate exceptional charge is c. £5.1m. Net debt of £2.6m at end March 2016 was lower than the company expected but a number of significant cash outflows are due shortly and banking facilities need renewing. Our coverage should resume when final results are reported.
Legacy issues not quite put to bed
08 Mar 16
Sweett has been notified of a claim relating to the sale of its APAC and India businesses. The businesses were sold last October for £9.3m before transaction and separation costs of c.£1.3m. The purchaser now claims an adjustment in their favour of £1.8m relating to adjustments to the net asset value of the business at 31st October. Sweett believes a lesser adjustment of £540k is appropriate, principally relating to FX movements. The dispute will be referred for expert determination and the company will provide further updates as appropriate. It is clearly disappointing to see legacy issues come to the fore again, following the resolution to the SFO case. We move to HOLD from BUY awaiting further clarification of the financial implications of the dispute.
SFO fine draws a line under legacy issues
22 Feb 16
Sweett Group announced the conclusion to the SFO investigation on Friday. The sentence confirmed that the Group is to pay a total of £2.3m in relation to the admission of bribery over two Middle East contracts entered into in 2013. The result was as good as could have been hoped for. The company has avoided what could have been a potentially crippling fine. The charges will be paid over the course of the next three years, leaving Sweett well within its covenants. Clearly the fine is a black mark against the Group but it related to a period under previous management in a region that Sweett is now exiting. The long awaited decision draws a line under these legacy issues and should allow the Group to move forward unencumbered with a strong core business remaining (UK, Europe and North America).
Strategic disposal of APAC and India businesses
21 Oct 15
In our note titled “Conviction Ideas – Q4” we said that the strategic divestment from the APAC and India businesses could provide a catalyst for the shares in Q4. Today, Sweett has confirmed the sale of both businesses for an initial consideration of £9.3m in cash (before transaction costs and separation costs of £1.3m), in line with our expectations. This is a positive update and should provide a catalyst for the shares. The net proceeds of the sale will be used to reduce the Group’s net debt which post-completion of the sale, the Group expects to be c.£4.0m (FY’15 year end: £9.7m). We expect net debt to continue to trend downwards. The SFO investigation continues to hang over the shares, but today’s update provides a solid underpinning to the Group’s medium term strategy.
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
Focused on the long term
08 Dec 16
These are rare events but it is nice to see a management use its public listing advantageously to trade short-term dilution in EPS for the optionality of asymmetric upside in the long term. With over £10m already in the balance sheet, ABD has successfully raised £5.4m gross in a placing and expects to raise another £1m from an offer. We were not surprised to learn that the placing was over 3.5x oversubscribed. How many listed UK companies are positioned to take advantage of the digital revolution in the automotive industry? The additional investment in new people, facilities, products & services should be dilutive to FY2017-18 EPS but this is small price to pay to establish the leading supplier of integrated test, measurement and simulation solutions to the autonomous vehicle industry. Our forecasts assume that growth will accelerate from FY2019. We raise our target price to 575p based on 15x FY2019 EPS, equivalent to Ricardo, the only other UK stock which has embraced the optionalities offered by the technological changes in the automotive industry.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)