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Adecco’s Q1 results were a mixed bag with revenues and gross profits ahead of consensus but the adjusted EBITA and net income below. Permanent Placement recorded another quarter of solid growth and was supported by good growth in Outsourcing and Consulting. Although some of this growth was offset by continued weakness in Career Transition. Regarding profitability, increased investments into the Adecco division affected margins. Going forward, the group expects the EBITA margin to improve sequent
Companies: Adecco Group AG
Adecco released a decent set of results with revenues in line with consensus but profitability slightly above them. The revenue growth mainly came from Permanent Placement even as Flexible placement remained flat. The counter-cyclical Career Transition remained impacted. On the profitability side, the group benefited from the favourable mix and better pricing. Also, good cost control helped EBITA margins. For FY21, the board will propose a dividend of CHF2.50. Lastly, the AKKA acquisition remain
Adecco’s Q3 results were broadly in line with consensus with profitability being slightly better than revenues. Permanent Placement recorded another strong quarter and the counter-cyclical Career Transition another weak one. Flexible Placement continued to recover but was also hindered by the automotive and electronic end-markets. Labour shortages were seen in hospitality and transport. Going forward, this is expected to continue, at least, for the short term. In terms of outlook, the group expe
This morning Adecco announced the acquisition of AKKA technologies, a key player in Engineering R&D services. AKKA will join forces with Modis to create a strong player in the emerging Smart Industry market. The former has its headquarters in Belgium and has about 20,000 employees. Adecco will pay €2.0bn (EV) for the transaction though cash and shares, and this transaction in expected to close in H1 21. Read on to find out more.
The acquisition of AKKA technologies led to a surprise Q2 announcement by Adecco. Revenues and gross profits matched expectations, whereas adjusted EBITA and net income were above both consensus and our estimates. This quarter clearly benefited from a low base of comparison but the recovery in Permanent placement was strong nonetheless. The group expects this momentum to carry forward into Q3. The acquisition is sizeable and we believe that it deserves its own comments.
Adecco’s Q1 revenues matched consensus estimates but were above those of AV’s. EBITA, however, decently beat consensus but was below our estimates. Altogether, the end of Q1 showed signs of revenue recovery and could mean well for the quarters ahead. Regarding profitability, the group continued to enforce pricing discipline and cost actions, which drove profitability upwards. Following this result, the group expects Q2 to improve sequentially while also benefiting from a lower base.
Adecco’s Q4 results showed a sequential improvement from Q2 onwards and were above our and consensus expectations. Revenues showed signs of recovery and continued demand from e-commerce, healthcare, etc., whereas margins were managed through the continued focus on pricing and cost actions. The group’s financial position remained solid, which allowed it to propose a dividend of CHF2.50 and restart its buy-back programme amounting to €600m. However, the group did not provide a clear FY21 outlook.
Adecco, at its CMD yesterday, unveiled the new Future@Work strategy, which will take the baton from the Perform, Transform and Innovate strategy ending in FY20. The group intends to capitalise on the mega-trends of increased demand for flexible working and the need for up- and re-skilling by making itself an end-to-end workforce partner, leveraging data to drive digitalisation. The group also revealed its new business unit structure and its individual strategies from FY21 onwards.
Adecco’s Q3 results were slightly above both AV’s and the consensus expectations on the back of improved business activity after a trough in the previous quarter. The ability to meet increased demand in growth areas (e-commerce, logistics), focus on pricing, a balanced business portfolio and cost management were behind this result. Additionally, Adecco’s balance sheet remains robust and the group continues to generate good cash flow. However, we remain cautious about Q4 due to the second COVID w
Like its peers, Randstaad and Manpower, Adecco reported Q2 figures ahead of expectations, albeit slightly lower. Nevertheless, the company seems to have won market share in France, Spain and Italy. Costs remained under control, providing some support to the group’s profitability and margins. We are maintaining our current estimates and may revise them upwards if the Q3 confirms the positive trend seen in June and July.
Adecco’s Q1 figures came in above consensus. The impact of COVID-19 was quite limited in the first quarter and therefore we expect Q2 will be deeply affected. While we believe a recovery is likely in H2, the positive effects of the lifting of containments should take some time to be visible.
Adecco reported a weak set of results, broadly in line with expectations, except on the EBITA margin side (20bp above). The GrowTogether plan continued to support profitability (€140m in 2019), ahead of the group’s target, which positions Adecco on track to reach its €250m cost-savings target in 2020. Management confirmed the dividend per share at CHF2.5 (4.6% dividend yield on yesterday’s share price) and announced a share buy-back programme of €600m, to be completed during 2020 and 2021.
Q3 figures were in line with expectations and with what Adecco announced for the quarter. The deterioration sequentially also remains in line with the recent Randstad’s release (-2.5%). Revenues continued to decline, while the GrowTogether plan delivered productivity savings, on track with commitments for this year, keeping margins at a correct level. We believe the top line should remain under pressure for the coming quarters, while the strategic plan will be beneficial for margins.
Adecco’s Q2 organic growth of -3% was slightly below the street’s expectation at -2.7%, while the EBITA excluding one-offs of €265m came in above with a stable margin of 4.5%. Germany remain the major drag, still impacted by the automotive sector. The GrowTogether plan is on track. The Q3 outlook reflects a continuation of the Q2 trend.
Better-than-expected Q1 19 results. Adecco published encouraging figures with a gross margin and EBITA margin above consensus expectations thanks to lower costs, productivity savings from GrowTogether plan and a positive temporary staffing price/mix development. The outlook for the second quarter is a bit cautious due to the timing of bank holidays and the replacement of CICE in France, but we continue to see more operational leverage on Adecco thanks to its GrowTogether plan.
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Volex has delivered final results that are ahead of expectation. Organic revenue growth of 19% reflects growing customer demand, alongside a particularly strong performance in EV which saw sales almost double. The Group has demonstrated its ability to manage both supply chain challenges and inflationary cost increases, albeit with a short time lag. Recent acquisitions have integrated well, building exposure to attractive higher growth market segments. The Group’s global footprint has resonated w
Companies: Volex plc
Singer Capital Markets
AFC has signed an agreement with another leading UK construction/infrastructure player, this time in Kier Group. We believe this further endorses our long term thesis that AFC will play an active role in encouraging the transition away from diesel-fuelled temporary power solutions. We believe its technology could help the sector make clear strides towards a net zero future, which has to commence now if they are to reach this target by 2045. The share price has been weak of late (in line with man
Companies: AFC Energy plc
Interim results from AFC contain few surprises and the group remains on track for the full year. The two main deltas versus our (unpublished) forecast were that the £2m stage payment from ABB were treated as deferred income rather than as revenue and that income from R&D tax credits was below our estimate. The first issue is an accounting issue which has no bearing on cash flow, while the second is likely a timing issue. On its own, the tax issue explains why period end cash, at £48.6m, was £1m
Weekly round-up of AIM-listed healthcare news.
Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics
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Companies: ITM Power PLC
Companies: Judges Scientific plc
SIMEC Atlantis’ full year statement and in particular its going concern statement show that financial risks remain following the decision not to proceed with the Uskmouth conversion. Yet the company has created a path through these risks with the creation of the 240MW Uskmouth battery project and further opportunities at the MeyGen tidal stream project. With MeyGen seeing the immediate benefit of an additional turbine in the water we see the current year as being a better one for the company.
Companies: SIMEC Atlantis Energy Ltd.
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Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or req
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SYM has announced an exclusive supply agreement for its d2p (designed-to-protect) antimicrobial technology with a major customer. Grupo Bimbo (NASDAQ: BIMBOA) is one of the largest bread manufacturers globally. The company has conducted extensive trials of d2p for its plastic bread packaging, with the aim of extending the life of products, improving hygiene, and reducing waste. The company has asked SYM to supply d2p for its nominated bread packaging manufacturers across the American continent f
Companies: Symphony Environmental Technologies plc
Powerhouse’s full-year results reinforce a picture of strong progress with considerable development of both the company and initial waste to hydrogen projects using the DMG technology. This is reflected financially, and cash burn is manageable with £9.8m of cash at the period end.
Companies: Powerhouse Energy Group PLC
ATOME’s trading update shows capacity expansion in Paraguay and good progress across the portfolio. The new capacity adds 50MW to take the Itaipu project to 300MW and increases our central case valuation to 183p from 173p.
Companies: Atome Energy PLC
Oil posted its first back-to-back weekly loss since early April as fears of a demand-sapping global recession and tighter US monetary policy ripped through commodity markets to spur a broad sell-off.
West Texas Intermediate fell 1.7% for the week to settle at $107.62. US Federal Reserve Chair Jerome Powell's hawkish testimony to Congress earlier in the week overshadowed a fundamentally tight market.
Prices clawed back some of the week's losses Friday as the University of Michigan's final June
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The shares now trade on 24.3x FY2022E earnings, versus a peer group trading on a blended 24.9x. Judges' shares more than regained their composure in early 2022, before events in Ukraine and continued Covid concerns (notably China) weighed on sentiment. As a result, some treading of water is likely in our view. But given the strength of the business (we believe earnings risk is towards the upside) and balance sheet, the quality of earnings and the company's continued ability to execute deals on s
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Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or request an overdraft from their
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