Autins has issued a trading update covering the first five months of the current financial year which is noted to have been ahead of management expectations and much improved on the comparable period in FY2019. This performance reflects important cost control and operational efficiencies as well as success winning significant new business. However, the impact of COVID-19 has now seen automotive OEM plant shutdowns and management expects significantly reduced demand for its products for the foreseeable future, resulting in a material reduction in the Group’s financial performance and outturn for FY2020. Given the uncertainties we have withdrawn forecasts.
Companies: Autins Group
Today’s AGM Statement confirms that the group is currently trading in-line with management expectations for FY2020E. Also, the Board is confident of delivering continued operational improvement, sales growth and new market development, centred on Autins’ core acoustic and thermal management expertise and, in particular, Neptune, the Group’s innovative high performance material that is opening up important new relationships and opportunities. We make no change to forecasts.
Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m. The Group's key producing assets, the Kagem emerald mine in Zambia (believed to be the world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the Faberge brand. Due Valentines Day 2020.
Companies: NQMI AUTG DPP WTG YEW CVSG NCYT MIDW THAL
SulNOx Group - The Group has developed a methodology and process capable of emulsifying hydrocarbon fuels such as diesel and heavy fuel oil . By January 2014, following preliminary laboratory testing, SulNOx was in a position to suggest that its products resulted in up to a 50% reduction of Nitrogen Oxide (NOx) and a 90% reduction in particulate matter Due 17 Dec, mkt cap £42.3m.
Companies: SRES K3C SENS MSYS PTAL RLD TSG FUL BHRD AUTG
Despite the increasingly challenging trading conditions across the year in the automotive market, Autins has delivered slightly better than expected revenue and adjusted PBT. The focus on operational performance and cost control rewarded with a strong gross margin improvement, particularly in the second half. During the year the Group saw sales of Neptune, its innovative high performance acoustic and thermal insulation material, double. Neptune is providing strong support to the Group’s efforts to develop opportunities with new OEM’s and Tier 1s, and a significant number of new customers were added in the year. The statement notes that the positive momentum in the business provides grounds for future optimism.
Costain (COST LN, £187m) awarded new highways contracts >£150m incl. project for Lancashire Country Council and Highways England | AFC Energy (AFC LN, £19m) operational update confirms hydrogen-powered off-grid EV charging system is on track for commercial launch in Dec 19 | Autins (AUTG LN, £8m) trading update expects FY19 results in line with market expectations; improved profit margins from cost savings/operational efficiencies; “cause for optimism for the year ahead” following new client wins and production ramp-up towards end of FY19
Companies: COST AFC AUTG
Autins has issued a trading update for the 12 months to end September highlighting that the Board expects FY2019E results to be in line with market expectations. In a challenging year for the automotive industry, the Group has achieved significant cost savings and operational efficiencies that have in turn helped to deliver the improved profit margins that investors were expecting. The statement notes that the Group is now well placed with sufficient capacity to take advantage of the many opportunities in its pipeline to both grow and diversify the business. Following a £3.5m (gross) placing in August 2019 there is the balance sheet strength to fund new customer wins, further geographical expansion, investment in further operational efficiencies and necessary working capital.
African Export-Import Bank a supranational financial institution whose purpose is to facilitate, promote and expand intra- and extra- African trade, of its potential intention to publish a registration document, the Bank hereby confirms its intention to proceed with an Initial Public Offering. The GDRs are expected to be admitted to the standard listing segment of the Official List of the FCA and to trading on the Main Market of the LSE.
DNEG Limited intends to apply for admission of its Shares to the premium listing segment of the Official List of the FCA and to trading on the London Stock Exchange's main market for listed securities. The Offer will be comprised of new Shares to be issued by the Company (to raise expected gross proceeds of £150m). Admission is expected to take place in November 2019.
Companies: BMK IXI CER AUTG SCHO BRD ING SOS SSTY SUH
Freyherr International Group PLC the Medicinal Cannabis holding company established in 2016, is planning to list on the NEX exchange on the 13 August
Companies: NBI AIEA TWD PXS INSE APPS GOAL AUTG USG HUM
Interim results are in line with expectations. Despite a very challenging automotive market backdrop the Group is seeing positive momentum with first half sales ahead sequentially. Management expect to deliver improving margins through a focus on cost control and operational efficiencies and to drive growth through the conversion of a strong and growing sales pipeline. In this regard, Neptune volumes are continuing to build strongly with new business worth £2.5m p.a. won in the first half.
Autins has issued a trading update highlighting the impact of challenging conditions in the automotive industry. Whilst full year revenues are expected to be broadly in-line with market expectations, the Group has not yet been able to fully capture the expected benefits of its cost control measures and planned operational improvements against this backdrop. As such, management now anticipate that EBITDA will be closer to breakeven for FY2019E, which compares to our prior EBITDA expectation of £1.3m. Autins is capitalised at under 0.3x sales, leaving the shares at a large discount to published NAV of 65p/share. There is a large opportunity pipeline and Neptune sales continue to build.
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
Companies: ANR AMO TPG XPD SSY AAU CLNR PANR THR AUTG
Autins has given a reassuring AGM update, confirming trading in line with expectations. This is despite the weaker automotive market backdrop and reduced short term demand from some of its key customers, and reflects prompt action from the new CEO to reduce costs at the beginning of the year. Management sees significant growth opportunities for its differentiated, high performance insulation material, Neptune, and is focused on diversifying the group’s customer base. We do not anticipate making any changes to our forecasts at this stage. The share price has bounced from its February low, but continues to offer potential for significant recovery as the sales pipeline converts into production and confidence builds in the outlook.
Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m.
Companies: SHEP ANP CNC OGN CAMB ODX CBOX AUTG FDEV
Renalytix AI—developer of artificial intelligence ("AI") decision support and clinical management tools for improving early diagnosis, continual monitoring and drug development for kidney disease. incorporated in March 2018 as a subsidiary of EKF Diagnostics Holdings (AIM-EKF). total fundraising in the range £21 - 25 m. Mkt cap - c. £67.5- £71.0m. Due 2 Nov.
Kropz PLC—an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana. Looking to join AIM, offer TBC, market cap TBC. Due Late October.
Azalea Energy—oil and gas production and development company based in Louisiana, United States. Net production of 13 MMcfe/D (2,200 boepd) and total 1P proved reserves of 91 Bcfe (15.1 mmboe), 2P reserves of 111 Bcfe (18.5 mmboe) raising up to $38m, expected mkt cap over $100m. Due 29 Oct
Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due late Oct
Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.
Companies: PVG PHTM CAPD ANG SCHO SCLP ENET ERIS AUTG TLY
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The phased reopening of Walker Greenbank’s two manufacturing facilities (both in the UK) is underway with Standfast & Barracks already operational and Anstey restarting this week. The company’s business model is such that near-term activity levels can be rebuilt gradually. It may also support new business development in the UK in due course compared to overseas supply sources. No new financial information was provided ahead of the company’s scheduled FY20 results announcement on 30 June, at which point activity levels during FY21 to date should also be disclosed. Our estimates remain suspended at this time.
Companies: Walker Greenbank
Fast & Furious launch date shifted to Summer
Codemasters has announced that Fast & Furious Crossroads will be launched in Q2 FY21, despite a twelve-month delay in the film’s release to April next year. This leaves FY21 forecasts unchanged but adds to the strong release line-up through this year and provides holiday season and movie release windows to further monetise the game. The shares continue to trade at a c.40% discount to peers; however, further news flow around the success of games as well as business development opportunities can continue to drive a re-rating back up towards the sector average in the coming months.
Due to a change in Analyst role, Cenkos Securities plc has suspended coverage of the following stocks (see table 1). Our previous recommendation and forecasts can no longer be relied upon.
Companies: BDEV BWY BKG VTY COST CRST BBY FERG GLE KLR KIE MSLH MER MTO NXR PSN RDW RNWH SFR SHI MGNS TW/ CTO TEF TPK GFRD
Walker Greenbank is a higher-end interior furnishings business with well-established global brand names and manufacturing facilities in the UK. This morning, the group has provided a further update on the business in relation to COVID-19 following its previous announcement on 25 March. In addition, and in line with recent FCA/FRC guidance, full year results to 31 January 2020 have been rescheduled to 30 June (previously expected 23 April).
With cash ahead of expectation in a year of transformation, PTY has reported inline results for the year to December 2019, with revenues standing at £80.4m and £0.1m adj. PBT. Net cash at £0.9m is ahead of our expectation prior to the company's pre-close update by some £1.9m, a significant beat.
Dillistone's update this morning is, on the whole, reassuring. Although the economic implications of COVID-19 will likely materially affect FY2020E results, as with many businesses seeing a significant reduction in demand for products and services, it is too early to determine the quantum. As such, we remove our FY2020 estimates that previously looked for an EBITDA contribution of £1.6m and adjusted PBT to £0.1m.
Companies: WGB DSG PTY
Walker Greenbank’s FY20 results date has been reset to 30 June (and complies with updated FCA policy guidance). Its latest update provides no new financial information though orders continue to be received despite lockdown conditions. Operational steps already taken appear to be appropriate, retaining sufficient infrastructure to service prevailing sales demand levels while additional actions aimed at preserving business liquidity are referenced, consistent with those seen elsewhere in the quoted sector. Taken together, the company appears to have quickly adjusted its business model to meet current market challenges in FY21.
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Companies: AVAP SHI GFRD
Character Group has issued a trading update stating that while its supply side operations in the Far East have now been broadly restored following temporary disruption from COVID-19 issues, the demand side of the business is being deeply impacted by the closure of stores, shops and warehousing & distribution centres. The board is now anticipating a significant drop in H2 FY2020 revenues compared to expectations. However, given the lack of visibility on both trading activity and the eventual impact of COVID-19 on the business, which is second half weighted, we are temporarily suspending forecasts until further clarity is given – probably with the interim results scheduled for end May 2020.
Companies: Character Group
There has been much comment on the fact that equity markets in the US and Europe have been shrinking for some years now, certainly in terms of the number of quoted companies, if not in total market capitalisation (MCap). This paper has been written with the assistance of the Quoted Companies Alliance (QCA) and focuses on the evidence for such in the London market and, in particular, that for smaller and midcap companies. It assesses that evidence and considers explanations. Finally, we ask why it matters, and assuming that it does, what practical steps can be taken to reverse the trend. Successful public markets have been a key part of the United Kingdom’s economic success for generations, even centuries, and we should not allow them to wither on the vine.
Companies: AVO AGY ARBB ARIX ASAI DNL GDR HAYD NSF PCA PIN PXC PHP RE/ RECI RMDL STX SCE TRX TON SHED VTA
Acquisition of Lab42
Companies: Sumo Group
History indicates that the emergence of cloud gaming and game subscription services could significantly increase investment in video game content, industry employment and the number of production companies, thereby leaving Sumo well positioned for growth.
Disappointing H1 driven by NGP. Reducing investments in this category was the company’s choice, but we believe it is a bad mid-term strategy. The dividend cut has finally shown increasing weaknesses vs. peers during the crisis.
Companies: Imperial Brands
Ubisoft’s FY19-20 revenue was hit by the bad reception of the supposed-to-be outstanding Ghost Recon Breakpoint. This led to a loss despite lower marketing costs (due to delayed games). Conversely, ‘Player Recurrent Investment’ (PRI) and Mobile gaming experienced solid progress. With 5-AAA games in the FY 20-21 pipeline, a revenue boost is expected from the hugely popular franchises that back these games.
Companies: Ubisoft Entertainment
Mulberry remains a relatively small brand, albeit a powerful one in its affordable luxury market segment. Its balance sheet remains strong. Early signs from the new CEO’s tenure are promising. However, even taken together, these elements cannot support current valuation metrics. One needs to take a very long view to justify current multiples.
Companies: Mulberry Group
A reassuring trading update confirms that SuperGroup continues to deliver attractive top-line growth. Admittedly, the superior wholesale performance means (as previously flagged by the company) that there is likely to be some gross margin erosion, but the focus on operational leverage should still ensure a modest improvement in operating margins going forward. Management’s commercial and pragmatic approach to expansion should mean continued success as the brand rolls out beyond its core markets of the UK and continental Europe.