Zeus Capital Equity Research & Stock Reports
- Professional research and all the latest forecasts, valuation opinions and multiples from Zeus Capital's expert analysts.
- Real-time updates from analysts following company announcements and other events.
- Near-live share prices, user-friendly dashboard, charting and company content.
Another record performance in FY16 underpins estimates
23 Mar 17
January’s pre-close trading statement had already stated that the FY16 revenue outcome was a record £163.1m (FY15: £148.9m) and indicated that profitability was in line with consensus expectations of £20.4m. The actual outcome of £20.5m is c. 2% ahead of ZC estimate of £20.2m. Organic FY16 revenue and profit growth of c. 10% and c.14% respectively is impressive in the context of an RMI market that was broadly flat during the year. This reflects Safestyle’s competitive advantage allowing it to take market share. We remain concerned with current headwinds across the wider building products sector, including input cost inflation, the UK consumer and the general economic outlook, but believe Safestyle is better placed to deal with these than most and will continue to drive organic growth in FY17. Cash adjusted, the shares trade on just 12.7x FY17 earnings with the potential for further special dividends in the coming years post completion of the recent capex program relating to the new production facility.
Better value elsewhere
20 Mar 17
Motorpoint is the UK’s largest independent vehicle retailer, operating out of 11 sites throughout the UK. The company has a good track record of growth and roll out potential. Despite this, we believe the franchised dealers have a more diversified business model and Motorpoint’s performance will prove more cyclical. Given the asset backing and greater diversity of the listed, we see better opportunities elsewhere in the sector.
UK government announces £23m fund t0 accelerate hydrogen infrastructure roll-out.
20 Mar 17
Today’s RNS from ITM highlights continued governmental support for the roll out of hydrogen refueling infrastructure in the UK. A new £23m fund was announced by the Office for Low Emission Vehicles (‘OLEV’) on March 18th, from which hydrogen fuel providers will be able to bid for funding in partnership with organisations that produce hydrogen vehicles, to help build high-tech infrastructure, including fuel stations. The funding will boost the creation of hydrogen fueling infrastructure and uptake of hydrogen-powered vehicles. ITM’s state-of-the-art electrolysis platform lies at the centre of existing and future UK hydrogen fueling infrastructure roll-out, and with Toyota, Honda and Hyundai all now having introduced production hydrogen fuel cell electric vehicles (‘FCEVs’) into the UK, ITM is excellently positioned for continued infrastructure build out and market growth.
Licensing revenue timing and recognition prompts top line forecast reduction
17 Mar 17
Ilika continues to make progress on the commercialisation of its Stereax™ solid-state battery platform, as well as the continued delivery of its materials discovery, development and optimisation expertise to blue-chip OEMs, with recent contract awards that include renewals and extensions from Seagate and Toyota. In our interim update on January 9th, we flagged how timing uncertainty in first upfront licensing payments from high prospect solid-state battery commercialisation OEMs may affect c.50% of our FY forecasts. In today’s trading update Ilika has been cautious, and predicts first licensing payments will not land before year end. We reduce FY17 and FY18 revenue forecasts by 56% and 40% to £1.1m and £2.9m respectively, which feed through to a reduction in FY18 closing cash balance of 51% from £6.9m to £3.4m. We reiterate this scenario was well flagged, and remain highly positive on the prospect of Ilika commercialising its world-class, solid-state battery platform in its high-growth, target mass markets.
PQ-Birch EU Phase III clinical trial start
16 Mar 17
Allergy Therapeutics (AGY) is a UK-based, specialty pharmaceutical company focused on the development, manufacture and sale of vaccines and other products for the treatment and prevention of allergies. This morning AGY announced that it has initiated B301, the phase III clinical trial of its Pollinex Quattro® – Birch vaccine (PQ-Birch), with the recruitment of the first patient into the study. A total of 550 patients are expected to be recruited and treated across more than 50 sites in northern Europe including Germany, Austria, Sweden and Poland. Assuming a positive outcome for B301, we believe that in 2018 the company will be able to submit an application for marketing authorisation under the TAV to the German biologics medicines regulator, the Paul Ehrlich Institute. Germany is the biggest single European market for allergy vaccines and such a submission could see a marketing authorisation granted in 2019. Our riskadjusted fair value estimate remains at 69p per share.
Final results 4% ahead at PBT level
15 Mar 17
Marshall Motor Holdings (MMH) has delivered solid results, which are 4% ahead of our forecasts at the adjusted PBT level. This marks a transformational year for the group following the acquisitions of SGS and Ridgeway, which appear to be bedding in well. We are maintaining our FY forecasts for the year ahead, albeit the order book for March appears to be building well. The shares have recovered from their post Brexit slump, but the long term valuation remains attractive to us based on near term multiples based on cautious forecasts and in the context of £106.5m of freehold/long term leases underpinning the current market value of the shares.
Zeus Capital Research and Daily Commentaries
Research Tree offers Zeus Capital research, providing ongoing coverage of 59 shares. We offer 440 reports from Zeus Capital on Research Tree.
Research reports provided by Zeus Capital
Companies covered by Zeus Capital
Sectors covered by Zeus Capital