DP DHL reported an excellent set of figures in Q1. A recovery in air and sea freight volumes, robust demand in B2C eCommerce activities and an ongoing recovery in the B2B business led to such an outstanding quarter. All divisions recorded a jump in profits on the back of high margins. Given such a strong result, the group revised upwards its FY21 guidance, which was also above expectations. We expect 2021 to be a strong year for the group.
Companies: Deutsche Post AG
DP DHL confirmed its strong preliminary Q4 and FY20 results today. The group exceeded its own re-raised guidance targets on the back of sustained momentum from eCommerce. As a result, both DHL Express and eCommerce Solutions registered solid growth. Other divisions, too, did well, except for Supply Chain solutions, which saw some recovery in Q4. The group generated record FCF in FY20 and will propose a dividend of €1.35. Moreover, the group will also launch a €1bn share buy-back programme.
Deutsche Post DHL confirmed its positive preliminary figures in its Q3 release today. Favourable business developments in Parcel, Express and e-Commerce Solutions enabled the group to register good growth in revenues and even better growth in EBIT. Additionally, the group not only confirmed its increased guidance but raised its FCF expectations even further.
DPDHL posted its final Q2 20 results. Management confirmed the new FY20 outlook unveiled a month ago and kept its 2022 guidance unchanged.
DPDHL reported a good set of FY19 results, with figures broadly in line with expectations in all lines. Both Express and P&P were the main growth drivers. A good surprise was in the dividend proposal of €1.25, reflecting a payout ratio of 59% (dividend yield of 5.5%). 2020 guidance was reaffirmed, but does not include any impact from the COVID-19, which looks like being too optimistic; the main reason is the complexity of quantifying it at this stage.
DPDHL reported a very good set of Q3 figures, with notably a solid organic revenue of 3.7% despite the challenging environment. This performance was driven by Express and P&P which benefited from the price hike in mail activities since July. Management confirmed its full-year guidance. We confirm our positive opinion on the stock.
As part of its Capital Markets Day, DPDHL presented its new plan called Strategy 2025 with new 2022 guidance and long-term divisional targets. We consider the 2022 targets are conservative, especially regarding the EBIT guidance based “on a cautious macro scenario”. The market reacted negatively as this clearly reflects slower EBIT growth between 2020 and 2020. The transformation is underway and appears to be on track. Patience is required. Buy rating confirmed.
DP DHL reported a good set of Q2 results. All divisions contributed to organic growth which has strengthened management’s confidence. With more clarity on the mail pricing regime, the management has now tightened the EBIT guidance for the full year. The productivity measures implemented by DP DHL are on track.
DP DHL reported Q1 results in line with expectations. The strong EBIT level was boosted by the recent supply chain deal and therefore, adjusted for this, profitability would have been much lower. The Express business is the growth driver for DP DHL, but it is also the most exposed to an economic downturn and/or political tensions. DP DHL is on track to be back in the race, but it is too early to say that headwinds are behind.
DP DHL reported encouraging results roughly in line with consensus expectations. Once again, the good performance was driven by the Express activities while PeP continues to drag due to the ongoing restructuring measures but, they are on track with significant progress in all three pillars, i.e. pricing measures, direct (productivity) and indirect cost (restructuring). The outlook for 2019 is relatively cautious but, in line with our estimates. DP DHL remains a quality stock, in our view, though
Q3 key highlights:
Revenue increased +1.4% to €14.8bn, thanks to all divisions
The EBITDA margin stood at 8.2%, while the EBIT margin declined to 2.5% (-320bp)
FCF declined due to higher capex (excluding leases assets)
2018 and 2020 guidance confirmed
DPDHL has announced the establishment of a new business division called DHL eCommerce Solutions. The new division will include the DHL Parcel Europe and DHL eCommerce business units which were part of the Post-eCommerce-Parcel (PeP) division with the intention to promote even more strongly the eCommerce operations of DPDHL in an international context. PeP will be renamed Post & Parcel Germany and in the future only act in the German market. Ken Allen takes over responsibility as CEO and Board Me
Group revenues increased by 1.4% to €15.02bn; after adjustments for adverse FX effects and the Williams Lee Tag disposal, Deutsche Post reported a continued strong organic growth of +6.2%. EBIT, however, decreased by 11.2% to €747m based on the operating performance in the PeP division and the first measures to counterbalance this development. The EBIT margin fell therefore from 5.7% in the last quarter to 5.0% in Q2 2018. EBITDA, on the other hand, went up by €339m (+27.9%) to €1.55bn due to ef
Revenues declined by 0.9% to €14.75bn
EBITDA jumped 35.9% to €1.67bn and the EBITDA margin from 8.3% to 11.3% mainly attributable to IFRS 16
EBIT increased 2.3% and the EBIT margin improved from 5.9% to 6.1%
Net debt jumped from €1.9bn to €11.9bn due to the adoption of the new accounting rule IFRS 16; equity ratio declined from 38.4% to 27.7%
Management confirmed guidance for the current year
Revenues increased 5.4% to €60.4bn and EBIT improved 7.2% to €3.7bn.
The EBIT margin rose from 6.1% to 6.2%, mainly driven by the Express division.
Dividend increase of 9.5% from €1.05 to €1.15 per share.
Strong outlook for the current year with double-digit EBIT growth.
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Seeing Machines has announced that it has been appointed by CAE Australia to integrate its precision eye-tracking technology, for an Australian defence industry customer. The engagement is valued at A$1m over five years and comes at the end of a successful direct engagement between Seeing Machines and an Australian defence industry innovation programme delivered over the past two years. This programme exceeded all stakeholder expectations and has opened several additional opportunities across th
Companies: Seeing Machines Limited
XPD increased profit by 40% last year and strong trading has continued through to the end of May. In 2020a growth was largely driven by the Freight Forwarding division. Now management reports that all three divisions – Freight Forwarding, Warehousing & Logistics and Transport Solutions - are growing. As with many logistics businesses, trading at XPD is seasonal with most profit made in H2, hence we have not lifted our estimates at this stage, but with this AGM statement today, risks are clearly
Companies: Xpediator Plc
Despite the challenges presented by Covid-19, TP Group was able to report organic revenue growth of 9% YoY in FY20A, and total revenue up 20% YoY. Aided by strategic acquisitions, non-core business disposals, and investments made within the group, the company should be well placed to benefit as trading conditions normalise. With visibility improving, we release new forecasts for FY21E and FY22E (Adj EBITDA of £4.2m and £5.1m respectively). Given the improving outlook, and a record order book (£6
Companies: TP Group Plc
Tern plc* (TERN.L, 23.75p/£78.5m) | CAP-XX Ltd* (CPX.L, 8.15p/£36.0m) | MTI Wireless Edge Ltd* (MWE.L, 64.5p/£57.1m) | Newmark Security plc* (NWT.L, 1.2p/£5.6m) | Blackbird plc* (BIRD.L, 32.0p/£107.9m)
Companies: TERN CPX MWE NWT BIRD
Staffline’s raise has generated £44m of net proceeds. The debt re-fi simplifies the bank lending and provides ample head-room. The circular points to FY results in line. Staffline has also reported a strong start to the year, with potential upside from Restart. FY 21 FD EPS increased by 57% and FY 22 reduced by 8% to reflect the mechanics of the re-fi and no tax. We expect the conversion rate to continue increasing. The B/S looks sound with expected FY 22 covenant net debt / EBITDA of 3.0x. We h
Companies: Staffline Group plc
We increased our forecasts on 3 June as SThree pre-announced the strength of Q2. Today’s full release shows Q2 NFI +22% y-o-y and H1 NFI +3% on H1 19. The contractor order book is up 33% and productivity +36%. We make no changes to forecasts today, but now expect H1 21 PBT of £27.4m, up 14% on H1 19. Our H2 estimates are cautiously set, reflecting more normalised contractor working hours and selective headcount investment. We see the risks to be on the upside. Maintain Buy.
Companies: SThree plc
Today's news & views, plus announcements from ICP, BATS, OXIG, PAG, NCC, OTMP, XPD, PPC
Companies: BATS OTMP XPD
As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
Companies: AMYT ARBB ARW BAG BEG BONH BWNG CWK DNK EML EPWN FBD FA/ GPH GSF GNC HUW IGC INSE KAPE KP2 MMAG NRR NESF OTMP ROL RUA SEN SUR TON TOU TXP TGL VLS WINK
The appointment of an engineering consultancy on the Polish project demonstrates progress. Powerhouse has said that it hopes to complete the project by Q1 2022, in line with development progress in the UK. We see Powerhouse as having considerable international opportunities for the deployment of its DMG technology.
Companies: Powerhouse Energy Group PLC
Last week Metalcraft (part of AVG’s PRSE division) and Sellafield mutually agreed to exercise the option to enter into the second phase of the contract to provide a total of 1,100 high integrity 3M3 stainless steel storage boxes for Sellafield. This is a significant milestone, following commencement in 2015 of prototyping and refinement, and the establishment of dedicated, state of the art 3M3 box production and supply. We think It clear that Metalcraft has now established the leading position i
Companies: Avingtrans plc
Despite an unparalleled disruption caused by Covid-19, Getech grew its subscription-based revenues and the order book remained strong. Despite a drop in revenue driven by Getech's customers reducing short-term project service work and related data sales, gross margins were protected by Getech's cost saving measures. Furthermore, the Services division swung back into operating profit. Following the Company's £6.25m equity raise, Getech is well positioned to grow and diversify its activities acros
Companies: GETECH Group plc
The robustness of the operating model and management's action to support customers and manage the cost base led to Vianet generating positive operating cash flow in FY21A. There is a strong pathway to recovery but the full extent is somewhat caveated on a full reopening profile that is yet to be confirmed. We are forecasting the Group to be free cash flow positive this year and see upside in the price as new order momentum returns.
Companies: Vianet Group plc
Epwin has entered FY21 with positive revenue momentum, having successfully navigated some extreme market conditions in the prior year. The company has built a solid base from which to grow volumes, and a positive cash generation profile provides headroom to invest organically and via acquisition as post-pandemic markets begin to normalise.
Companies: Epwin Group PLC
AVO’s goal is to deliver an affordable and novel PT system, called LIGHT, based on state-of-the-art technology developed originally at the world-renowned CERN. Over the past two years, important technical milestones have significantly derisked the project. Now, AVO is working on the verification and validation phase, prior to LIGHT being used on the first patients to support CE marking. In its recent technical update, the company highlighted progress made over the past three months towards a ful
Companies: AVO ARBB ARIX BBGI CLIG DNL FLTA ICGT OCI PCA PIN RECI STX SPO SCE TRX VTA
Power reliability and drilling tools specialist Northbridge has confirmed in today’s AGM update that it is “firmly on track to meet management expectations” for FY21F and indicated momentum is likely to continue beyond that, driven by growth in datacentres and renewables and a 50% enlargement of its UK factory. It has also announced a £10m refinancing, including the redemption of its convertible loan notes. Lower interest costs nudge up our FY21F adjusted PBT from £2.0m to £2.1m. Northbridge als
Companies: Northbridge Industrial Services plc