Wincanton (WIN LN) - Recovery and transformation

Wincanton has emerged strongly from the volume contraction and cost pressures of the past 18 months. Disposal of lower margin transport operations and a favourable outcome of the recent pension valuation have helped too. The PE valuation and yield are compelling, and Wincanton should now generate healthy free cash for investment in growth. Today’s Q3 update is brief but positive. The Group continues to trade in line with market expectations and is on track to report a full year adjusted PBT exce

Wincanton (WIN LN) - Solid H1 trading, outlook reaffirmed

Wincanton has announced solid H1 earnings, in line with Zeus estimates. Revenue and profit declined year-on-year, but this was driven by previously announced events and actions, including the strategic wind down of low margin basic transport services.

Wincanton (WIN LN) - Transformational pension agreement

Wincanton has announced a very positive outcome of the 2023 Triennial Valuation, agreed with the Trustees. The Group and the Trustees have decided that no further contributions are now payable into the Pension Scheme because of the 2023 valuation. Previously, contributions for the year ending 31 March 2024 would have been £23.6m, and £25m each year from April 2024 to March 2027, increasing in line with the Retail Prices Index. The free cash and balance sheet position of the Group is transformed,

Wincanton (WIN LN) - Strategic progress, FY guidance held

Q1 trading is in line with market expectations. Management has also reaffirmed confidence in the full year consensus estimate for £50.4m of adjusted PBT (Zeus: £49.6m). More importantly, WIN’s new strategy to offer more end-to-end logistics solutions for customers, thereby lifting margins, is showing early positive results. There is some turbulence in our revenue estimates as the old basic transport activity drops out. Given that margins here were painfully thin, our profit and cash numbers are

Wincanton (WIN LN) - Ready for recovery

Trading this year will be challenging but we believe investors know this and the bad news is built in. Meanwhile, WIN has continued to pivot towards more pure play logistics outsourcing, with a focus on growing sectors offering higher margin activity

LIBERUM: Wincanton - FY results in line, exit from closed book transport

LIBERUM: UK Small & Mid Cap Dispatches

LIBERUM: Morning Comment

LIBERUM: Wincanton - Fireside chat feedback

Wincanton (WIN LN) - Down but not out

WIN is a canary in the coal mine for the UK economy. The profit warning yesterday pointed to a broad-based slowing in demand – from construction to general merchandise – and persistent high input cost inflation. At the micro level, WIN has lost a high margin contract with HMRC – not helpful at the best of times. Our estimates are adjusted with fresh guidance from management. Revenue for FY24e (y/end March 2024) is cut by nearly 8% to c.£1.4bn, and adjusted PBT is reduced by c.23% to £49.5m, our

LIBERUM: Wincanton - Contract loss and closed book headwinds

LIBERUM: UK Small & Mid Cap Dispatches

LIBERUM: Morning Comment

LIBERUM: Wincanton - Pensions cash flow opportunities

Supreme (SUP LN) - Record performance, EBITDA ~doubled

Supreme’s FY24 trading update confirms a record performance in the 12 months to 31 March 2024. Organic revenue and profit growth across all four divisions has driven Group revenue +45% YOY to £225m, with FY24 adj. EBITDA almost doubling to ‘at least £38m’, driving record levels of cash generation. Supreme is actively exploring complementary M&A, supported by a debt free balance sheet. Trading on an undemanding FY25 PE of just 6.7x, with a 3.4% yield, we believe downside risks are more than price

Morning Note – 22 April 2024

Morning Note – 25 April 2024

Supreme+ (SUP, House Stock at 125p) - Supreme, Supreme!

Vianet Group: FY24 trading update, strategic contract win

Vianet has published a positive trading update for FY24 with turnover up 7.6% to £15.18m, a 3.5 percentage point increase in gross margin YoY, and adjusted EBITA ahead of market expectations. Net debt continues to fall and closed FY24 at £1.52m (£2.1m at 30 September 2023), demonstrating strong free cash flow generation, even without the benefit of the £0.9m tax receipt received in 1H24, which augers well for a final dividend. The company reported a new contract with Wilcomatic Wash Systems, the

Renewi - Solid trading and better cash generation

Renewi’s FY24 trading update was in line with management’s expectations and its improved cash generation is reassuring for investors. Attention is now likely to turn the strategic review of the UK Municipals with management stating that they remain on track to update markets by the end of June. This could lead to an exit of key liabilities and leave Renewi as an attractive circular economy investment with strong market positions and organic growth plans, which should assist in generating value,

Vianet - FY24 ahead, strategic forecourt customer win

Vianet’s FY24 trading update shows FY24 revenue +1% ahead of our previous forecast, adjusted EBITA +2% ahead, EFCF and net debt +£0.6m ahead, and a strategic new customer win with prominent forecourt operator Wilcomatic. A robust FY25 pipeline and outlook leads us to reiterate our FY25E forecasts at this point, with the update highlighting: strong progress renewing and winning new customers on 3-5 year contracts as they migrate from 3G to Vianet’s advanced 4G LTE solutions; the successful integr

SP Angel Spec Sits: FY Trading Update (LTHM)

Headlam Group - Strategy for growth in tougher market

Headlam Group has laid out an ambitious long-term revenue target of between £900m and £1bn, as it seeks to grow its share of the UK floor coverings distributor market. Despite a challenging backdrop due to the low level of residential housing transactions, management is seeking to expand each of its sales channels: Trade Counters, Larger Customers, Regional Distribution and Europe & Other. The FY23 results reflected the more challenging environment and the group trades at a discount to its long-

Norcros (NXR LN) - Sale of Johnson Tiles UK streamlines the business and improves operating margin

Norcros has announced the sale of its Johnson Tiles UK business to the current management team for a consideration of £1.0m, with a further modest earnout based on the equity value of the business, both payable in April 2028.

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

SP Angel Morning View: Copper prices hit $9,700/t as China smelts concentrates for zero charge Tc/Rc

Norcros - Sale of Johnson Tiles UK agreed

Norcros’s disposal of Johnson Tiles is the latest strategic activity taken by management to better allocate capital to fit with priorities. Last year it closed its UK adhesives operation. Norcros has a compelling investment case, where its new product development initiatives, market positioning and self-help initiatives allow it to take market share in both the UK and South Africa. Its rating is low at 6.0x FY24e P/E, which is attractive, especially when compared to its yield of 5.4% on its well

Hybridan Small Cap Feast - 24 April 24

24th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

LIBERUM: Ilika: CMD confirms operational progression