Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SURFACE TRANSFORMS PLC. We currently have 11 research reports from 3 professional analysts.
|08Dec16 07:00||RNS||Trading Update|
|29Nov16 01:14||RNS||Result of AGM|
|18Oct16 04:14||RNS||Holding(s) in Company|
|10Oct16 07:00||RNS||Preliminary Results and Trading Statement|
|03Oct16 07:00||RNS||Exercise of Options|
|05Sep16 07:00||RNS||Notice of Results|
|02Aug16 10:42||RNS||Holding(s) in Company|
Frequency of research reports
Research reports on
SURFACE TRANSFORMS PLC
SURFACE TRANSFORMS PLC
OEM opportunities remain very exciting
10 Oct 16
SCE has reported FY2015/16 results which are essentially in line with our expectations. Most importantly, the business remains well capitalised to build new manufacturing capacity, which appears to be going according to plan, while all the key OEM opportunities remain broadly on track. One opportunity is particularly promising and the prospect of higher volumes here than we previously assumed has prompted us to increase our price target to 30p (from 25p). Confirmation of this (expected Q1 2017) would likely prompt us to increase our target price again.
18 Jul 16
Topic of the quarter: Could Brexit be a positive for the UK Industrials sector? While the EU and UK are important to each other in terms of trade, the level of that importance is asymmetric: 44% of UK exports go to the EU and a further 10% go to countries with free trade agreements with the EU; only 15% of EU exports go to the UK. As a result, we feel that UK bargaining power is relatively weak and we need to accept the possibility that the UK drops out of the single market and trades under WTO terms with Europe. The extent to which this is a positive or negative for UK Industrials depends entirely on the value of Sterling versus the Euro or US Dollar. We analyse this and conclude that with a 7% (or greater) depreciation of Sterling (versus pre-Brexit levels), all the costs associated with WTO trade are more than compensated for. Big exporters become strategic winners and big foreign FX earners become financial winners. Largely domestic players are at risk. Export or die!
11 Jul 16
Fulcrum (FCRM): Market opportunity more than doubled (BUY) | Frenkel Topping* (FEN): Attractive niche financial adviser and investment manager (CORP) | Amino Technologies* (AMO): Robust interims, strong cash flow (CORP) | Surface Transforms* (SCE): Technology development agreement (CORP) | Scientific Digital Imaging* (SDI): DoH guidance update (CORP) | Sound Energy (SOU): Tendrara update
Panmure Morning Note 01-12-16
01 Dec 16
Consistent with the FY16 trading update/pre-close on September 14, today’s FY16 results are in line with our and consensus underlying PBT expectations of £12.5m (+22.5% YoY). The total FY16 dividend is up 36%, covered 3.4x, whilst net cash is £6.9m (+53%). FY16 represented another good year of execution, and FY17 has started well. The company's business mix is now more diverse across geographies (International accounted for 26% of total sales vs 21% in FY15) and we see CCT’s increasing diversity in retail distribution as both a further risk-mitigation and opportunity driver. We make no changes to our FY17 and FY18 PBT forecasts of £13.5m and £14.5m (albeit, we make some changes to the constituent parts) and introduce a FY19 PBT of £15.5m. We maintain our BUY and TP of 635p.
Civil: No Reflation here, only a Race to the Bottom
05 Dec 16
The strengthening of the US dollar since the election of Trump is adding to the headwinds in the airline industry: over-capacity and falling yields. The airline industry, which is expected to generate $8bn of free cashflow in 2016 on $600bn of capital employed, needs to spend $120bn annually to maintain current delivery rates. Deferrals and down-gauging is now spreading to narrow-bodies as more and more airlines review their capex plans. We expect acceleration of seat densification as airlines look to sweat their existing fleets. We now expect deliveries to fall by 5% over 2015-18 as opposed to our previous forecast of flat growth. Aftermarket may also suffer as seat densification helps cut number of flights. This leads to reduction in our EPS forecasts for key Civil Aerospace names: Rolls-Royce, Meggitt, GKN and Senior.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
Forward sale of two developments increases forecast visibility further
01 Dec 16
We note Watkin Jones’ announcement today confirming that the company has forward sold another two developments, in Cardiff and Belfast, to institutional investors. We leave forecasts unchanged but acknowledge that these further sales increase the visibility on earnings. We now assume c.65% of FY17 gross profit is derived from projects that have been forward sold. We continue to believe the shares are undervalued given the high levels of earnings visibility that the forward sales model generates, the low leverage risk with in excess of £30m of net cash and the structural growth in both Purpose Built Student Accommodation (PBSA) and the Private Rented Sector (PRS). On FY16 earnings, which the company confirmed are in line in its recent trading update (17th November), the shares trade on 9.6x. This falls to just 8.7x in FY17 with c.65% visibility after just two months of the financial year. We would hope that almost all of FY17 earnings will have been forward sold by the half year end mirroring the experience in FY16. The prospective yield of 5.3%, twice covered by earnings and underpinned by a strong balance sheet, remains attractive.
Small Cap Breakfast
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
Trading update; 6% earnings upgrade
01 Dec 16
Revenue growth of 5.2% in the year to date reflects sustained replacement-driven demand for flooring in the UK enhanced by a inflationary price environment from August 2016. This has created a positive trading environment for Headlam reflected in another profit upgrade today and enhancing the prospects for a sustained earnings upgrade cycle in 2017. The shares are trading on 12.6x conservative FY17 earnings and offer a potential total yield of around 8% should the special dividend be triggered which, we believe, is the balance of likelihood. Headlam remains a conviction Buy at current levels.