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Except for the organic growth, SGS’ H1 results were broadly in line with consensus expectations. Organic growth was higher than expected due to a better than expected recovery in China and solid demand across Natural Resources and Knowledge. However, currency headwinds muted the yoy growth. Profitability was flat yoy and impacted by margin weakness across the two divisions. CFO and FCF followed their customary seasonal pattern. For 2023, SGS raised its organic growth target but we see limited up
Companies: SGS SA
AlphaValue
SGS’ 2022 results were below consensus and our expectations on revenues, organic growth and profitability. Organic growth was weaker than expected in the H2 and stronger currency headwinds weighed on the yoy revenue growth. Profitability was dragged down due to Covid-related disruption in China and higher inflationary pressures in the H2. Consequently, CFO and FCF were down yoy. The group maintained its dividend at CHF80. In 2023, the group will undergo restructuring and we deem the announced ou
SGS’s first half revenues were in line with consensus but profitability was slightly below. Our estimates were marginally higher than the consensus. The main drag on profitability in this half came from the lockdowns in China. Organic growth in revenues was 5.8%. CFO and FCF were lower yoy due to higher working capital investments. The group maintained its guidance for 2022 with mid-single organic growth in revenues and margins similar to that of the prior year. A lot hinges on H2.
SGS delivered full-year results that were narrowly above consensus but better than our estimates, particularly on profitability. The group showed that it is able to generate better margins under its new structure and could improve them going forward. M&A is expected to be an important driver in adding additional capabilities. FCF generation, however, was weaker than expected. Regarding FY22, the group expects decent organic growth with improved margins and better cash conversion. The proposed di
The group’s H1 21 results were pretty much at par with expectations. Revenues and operating profit were largely in line with consensus. However, compared to AV’s expectations, operating profits were lower. FCF was also lower than expected due to higher working capital requirement in comparison to the period before. In terms of guidance for the full year, the group reiterated its qualitative stance given at its investors day. Comparatively, we believe, H2 will be stronger.
SGS’s FY20 results were not too much off expectations. 2020 was a tale of two halves where H1 was plagued by the pandemic and H2 saw business recovery to help the group post a decent result. SGS also completed various acquisitions and one disposal during this time. Going forward, the group will report through a simplified structure. The group proposed a dividend of CHF80 per share, similar to that for FY19.
SGS posted mixed H1 results with weaker than expected sales, while FCF was strong. Unsurprisingly, the company scrapped its full-year guidance due to the pandemic.
SGS’s FY19 results came in broadly in line with consensus at the top line, while it beats expectations on the net profit and FCF. The group’s cost measures seem to bear fruit, and improved profitability, combined with a higher return to shareholders with a 2.5% increase in dividend to CHF80. SGS is a must-have stock as it is a leading TIC company, with a good diversification in its business lines and a healthy balance sheet.
As part of its Capital Markets Day, SGS reaffirmed its 2020 EBITA margin to be above 17%, while for this year organic growth should be lower than expected, due to the challenging macro environment. Management also presented Asia as being a very interresting area for its long-term growth, driven by production shifts with new business in certification.
SGS’s H1 results came in marginally below expectations on organic revenue growth. Despite a +20bp IFRS16 positive effect, postponed payments in GIS impacted the margin development in H1. Thus, the second half should benefit from the collection of these payments. Management remains confident and continues to see robust divisional developments going forward. The downside in our view is related to the M&A strategy which is not aggressive enough to meet the 2020 commitments, especially on the 17% ma
At first glance, SGS delivered a solid performance in 2018, but we are not convinced. Since the start of the 2020 Plan, SGS has acquired CHF300m of revenue, which is far from the billion CHF target over 2016-20. Even though the group expects to accelerate its M&A activities, there still remains much to be done.
SGS delivered H1 results broadly in line with expectations, showing a better-than-expected organic growth (+5.6% vs +4.9% cons), but a touch light on margins (14.6% at cc vs 14.8% cons). The bottom line is mainly affected by exceptional items (c. CHF50m restructuring charge in IND and provisions for cumulative overstated revenues reported in prior periods in Brazil). Key highlights: Revenue growth of +8.5% to CHF3.31bn (+5.6% org, +0.9% acq, +2.0% FX) Increase in adjusted operating income o
Revenue and earnings growth continued in 2017. Dividend per share increased by 7.1% from CHF70 to CHF75. The operating performance is expected to improve further in the current year. M&A activities will be accelerated.
The company reported half year results (no quarterly reporting available). In the first half year, revenues increased 5% to CHF3.05bn (estimate +3.1%). EBIT improved 4.1% (estimate 5.9%) to CHF394m and the EBIT margin declined marginally from 13.6% to 13.5%. EBITDA also increased by 4.4% to CHF570m and the EBITDA margin declined from 13.6% to 13.5%. Net income improved 7% to CHF276m. Management confirmed guidance for the current year.
SGS reported final 2016 results. Revenues increased 4.8% to CHF5.99bn and 6% on a constant currency basis. Acquisitions contributed around 3.5% to revenue growth and 2.5% was organic growth. The operating performance of the company, however, was not really exciting. EBITDA increased 0.7% to CHF1.15bn and real EBIT declined marginally by 0.7% to CHF816m. The EBITDA margin dropped from 20% to 19.2% and the EBIT margin from 14.4% to 13.6%. The adjusted operating margin also declined from 16.1% to 1
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IP Group’s NAV declined by 13% in total return (TR) terms in FY23, affected by continued soft valuations across venture capital (VC) markets, as well as funding delays at some of its holdings. That said, management indicated that many of IP Group’s portfolio companies continued to make strong progress. Its maturing portfolio offers a number of potential NAV triggers and is now available at a wide 59% discount to NAV. We note that, as at end-2023, only 14% of IP Group’s portfolio was valued based
Companies: IP Group plc
Edison
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
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Hardman & Co
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Canaccord Genuity
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Liberum
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Braemar’s FY24 trading update was in line with expectations, with revenues of c £150m and underlying operating profit of c £18m. Underlying operations continue to expand and diversify and the company remains well-positioned to drive its future growth strategy. The trading outlook is promising and Braemar should be able to leverage its strong balance sheet in pursuit of strategic growth. We have maintained our underlying estimates for FY24 and FY25, but edge down the valuation based on the lower
Companies: Braemar PLC
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Hybridan
Trinity Delta view: The proprietary pre|CISION platform is key to Avacta’s investment case, hence updated data that continue to support key hypotheses for AVA6000 are reassuring. Future efficacy data from studies planned to start in H224 will be key, and could also help to more broadly validate pre|CISION. The recent £31.1m fundraise (March 2024 Lighthouse), which provides a cash runway of c 24 months ie into early 2026, will be used to advance the therapeutics pipeline, in particular AVA6000, a
Companies: Avacta Group PLC
Trinity Delta
hVIVO has delivered FY 2023A results in-line with the 30 January 2024 TU, with total customer revenues of £56m, growth of 16% versus 2022A. Other income related to tax credits added another £2.6m. 2024 revenue guidance of £62m has been reiterated, representing 11% growth over 2023A, and ahead of the £60m that we had previously forecast. The company has good visibility with the 2024 figure, with 90% already being covered by the existing orderbook (stands at £80m at the end of 2023), as well as in
Companies: hVIVO plc
Cavendish
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Capital Access Group
As pre-announced, Avacta has presented the results of the 3-weekly P1 Arm 1 study of its AVA6000 lead clinical asset, based on the pre|CISION™ drug development platform at the American Association for Cancer Research's annual general meeting. The update does not cover progress on the ongoing 2-weekly dosing study which is underway, and Avacta confirmed current guidance on timing including being on track to begin the dose expansion study in 2H24. There are compelling updates on the progress repor
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Deltic Energy plc (DELT.L) has announced some positive news concerning its 50% interest in the Selene joint-venture with Shell UK Ltd. The announcement concerns a farm-out to Dana Petroleum Ltd of a 25% interest in Licence P2437 which contains the Selene prospect. The farm-out calls for Deltic retaining a highly meaningful 25% interest in one of the most interesting prospects in terms of risk profile and scale in the Southern North Sea (SNS) Basin while largely eliminating exposure to the cost o
Allenby Capital
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