Staffline (STAF LN) - Outperforming peers

Staffline’s FY23 results, covered in our 19 March research, showed a robust trading performance in light of tough macro conditions. Now that most of the quoted UK recruitment peers have reported full year or interim results covering the 2023 calendar year, we are able to benchmark Staffline’s performance. The Group outperformed the average of its listed peers on CY23 revenue growth, NFI growth, underlying EBIT growth, and GP to EBIT conversion. The outperformance is greater when Staffline’s comb

LIBERUM: Staffline Group: More buybacks on the horizon

LIBERUM: CEO Video: Albert Ellis, Staffline Group plc:

LIBERUM: Staffline Group: Results in line and encouraging start to the year

Staffline (STAF LN) - Robust results

Staffline’s FY23 results present a resilient trading performance throughout tough market conditions. FY23 Adj. EBIT of £10.3m is 2.0% ahead of the £10.1m we forecast and, impressively, is broadly in line with our original £10.4m estimate set over a year ago in January 2023, testament to the Group’s resilient model and strong cost control.

LIBERUM: Staffline Group: FY 23 FD EPS slightly ahead, cash much better but outer years EPS reduced

Staffline (STAF LN) - FY23 EBIT in line and cash ahead

Staffline’s FY23 trading update shows a strong underlying performance against challenging trading conditions.

Staffline (STAF LN) - Resilient business model

Staffline’s H1 results show a good performance in challenging market conditions and the Group is on track to meet current market expectations for FY23, subject to its usual H2 weighting. Therefore, Zeus underlying EBIT forecasts are unchanged, but we factor in the newly announced £4m share buyback programme which boosts EPS estimates. We reiterate our investment case that Staffline has a uniquely diversified platform across recruitment services, longstanding blue-chip clients, a robust balance s

LIBERUM: Staffline Group: Strong cash performance and £4m buyback

Staffline (STAF LN) - AGM statement

Staffline has confirmed it remains on track to hit our FY23 estimates following a strong FY22 performance. Signs of stronger organic growth are coming through in both the UK and Ireland driven mainly by contract extensions in Recruitment GB and People Plus. We make no changes to our forecasts at this juncture and remain comfortable with our valuation per share of 62.2p illustrating compelling upside from current levels. We continue to believe that Staffline is well positioned to navigate current

LIBERUM: CEO Video: Albert Ellis, Staffline Group*

LIBERUM: Staffline Group* - Strategic progress offset by macro headwinds

Supreme (SUP LN) - Record performance, EBITDA ~doubled

Supreme’s FY24 trading update confirms a record performance in the 12 months to 31 March 2024. Organic revenue and profit growth across all four divisions has driven Group revenue +45% YOY to £225m, with FY24 adj. EBITDA almost doubling to ‘at least £38m’, driving record levels of cash generation. Supreme is actively exploring complementary M&A, supported by a debt free balance sheet. Trading on an undemanding FY25 PE of just 6.7x, with a 3.4% yield, we believe downside risks are more than price

Morning Note – 22 April 2024

Supreme+ (SUP, House Stock at 125p) - Supreme, Supreme!

Morning Note – 25 April 2024

Vianet Group: FY24 trading update, strategic contract win

Vianet has published a positive trading update for FY24 with turnover up 7.6% to £15.18m, a 3.5 percentage point increase in gross margin YoY, and adjusted EBITA ahead of market expectations. Net debt continues to fall and closed FY24 at £1.52m (£2.1m at 30 September 2023), demonstrating strong free cash flow generation, even without the benefit of the £0.9m tax receipt received in 1H24, which augers well for a final dividend. The company reported a new contract with Wilcomatic Wash Systems, the

Renewi - Solid trading and better cash generation

Renewi’s FY24 trading update was in line with management’s expectations and its improved cash generation is reassuring for investors. Attention is now likely to turn the strategic review of the UK Municipals with management stating that they remain on track to update markets by the end of June. This could lead to an exit of key liabilities and leave Renewi as an attractive circular economy investment with strong market positions and organic growth plans, which should assist in generating value,

SP Angel Spec Sits: FY Trading Update (LTHM)

Vianet - FY24 ahead, strategic forecourt customer win

Vianet’s FY24 trading update shows FY24 revenue +1% ahead of our previous forecast, adjusted EBITA +2% ahead, EFCF and net debt +£0.6m ahead, and a strategic new customer win with prominent forecourt operator Wilcomatic. A robust FY25 pipeline and outlook leads us to reiterate our FY25E forecasts at this point, with the update highlighting: strong progress renewing and winning new customers on 3-5 year contracts as they migrate from 3G to Vianet’s advanced 4G LTE solutions; the successful integr

Headlam Group - Strategy for growth in tougher market

Headlam Group has laid out an ambitious long-term revenue target of between £900m and £1bn, as it seeks to grow its share of the UK floor coverings distributor market. Despite a challenging backdrop due to the low level of residential housing transactions, management is seeking to expand each of its sales channels: Trade Counters, Larger Customers, Regional Distribution and Europe & Other. The FY23 results reflected the more challenging environment and the group trades at a discount to its long-

Norcros (NXR LN) - Sale of Johnson Tiles UK streamlines the business and improves operating margin

Norcros has announced the sale of its Johnson Tiles UK business to the current management team for a consideration of £1.0m, with a further modest earnout based on the equity value of the business, both payable in April 2028.

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

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

SP Angel Morning View: Copper prices hit $9,700/t as China smelts concentrates for zero charge Tc/Rc

Norcros - Sale of Johnson Tiles UK agreed

Norcros’s disposal of Johnson Tiles is the latest strategic activity taken by management to better allocate capital to fit with priorities. Last year it closed its UK adhesives operation. Norcros has a compelling investment case, where its new product development initiatives, market positioning and self-help initiatives allow it to take market share in both the UK and South Africa. Its rating is low at 6.0x FY24e P/E, which is attractive, especially when compared to its yield of 5.4% on its well

Hybridan Small Cap Feast - 24 April 24

24th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

LIBERUM: Ilika: CMD confirms operational progression