Building & Construction

Building & Construction equity research

Explore the most viewed and latest equity research and media content for companies within the Building & Construction sector. Stocks in this sector provide goods such as construction materials and offer services from contractors.

14 Jan 21

Target Price Increased – 127p

Capital Limited has released its Q4 and FY2020 trading statement this morning. Overall it shows 2020 was a strong year for the company with revenue growing 18% and most other operating metrics growing positively with it – see Fig 1. We have adjusted our forecasts accordingly and also to take into account the mining services contract for the Sukari Mine which the company won late last year. The latter is a game changer for Capital and its investment case in our view; turbo charging revenue growth, enhancing margins and diversifying cashflow all of which should lead to materially higher valuation multiples. We raise our PT to 127p.

Companies: Capital Limited

08 Jan 21

SP Angel Morning View: Copper prices continue to rise on strong demand and outlook

Alba Mineral Resources (ALBA LN) – Resumption of drilling at the Clogau mine Capital Limited (CAPD LN) / Centamin (CEY LN) – Progress on Sukari contract Empire Metals* (EEE LN) – Phase-2 drilling commenced at Eclipse Gold Project Rambler Metals and Mining* (RMM LN) – Appointment of new CFO

Companies: ALBA CAPD CEY EEE RMM

31 Jul 19

Cenkos: Building & Construction

Due to a change in Analyst role, Cenkos Securities plc has suspended coverage of the following stocks (see table 1). Our previous recommendation and forecasts can no longer be relied upon.

Companies: BDEV BWY BKG VTY COST CRST BBY FERG GLE KLR KIE MSLH MER MTO NXR PSN RDW RNWH SFR SHI MGNS TW/ CTO TEF TPK GFRD

23 Apr 18

Value screen refresh and 10 focus stocks

We have completed another refresh of our value style screen, first established as of 12 May 2015. As usual the screen selected the 25 stocks exhibiting the most extreme value characteristics from our universe, and we have chosen 10 stocks to focus on. Since the last refresh, two days before the last general election, which resulted in a hung parliament, the screen has performed a little better than the small-cap index with our focus stocks outperforming by about 500bps. The weighting to UK consumer stocks noted last time detracted from performance, which came as little surprise given our cautious stance, much discussed in our other strategy work this year. One might have expected more consumer exposure in the refreshed screen given this year’s severe underperformance, but it appears forecasts have been similarly downgraded, keeping much of the sector outside our value criteria

Companies: AUG EHG GOAL MMH RTHM SDY TEF VANL

14 Jan 19

Opportunity knocks

We are introducing our Best Ideas for 2019 and also review the performance of last year’s picks. We suggest ten solidly financed stocks with good business dynamics that ought to be considered for core portfolio holdings and six UK domestically focused stocks that our analysts believe should perform strongly in the event that uncertainties unwind. We also introduce a new style of research from N+1 Singer which presents a Company’s dynamics and metrics in a clear and concise manner and concentrates on the pivotal issues affecting that Company and an investment decision.

Companies: BCA CLIN CLG CBP DNLM EAH STU FCRM FUTR GTLY INS GLE NICL SPR TRI

02 Jul 19

Where’s the Value?

Warren Buffett once said that as an investor, it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. Fear is not in short supply right now.

Companies: TIME ALU ANCR BLV CONN CRC STU GATC HAT LEK MMH MCB MWE NXR NTBR NOG PAF PEG RFX SRC TEF TEG TPT VTU WYN XLM

02 Aug 19

Cenkos: Michelmersh Brick Holdings Plc - Terminate Coverage

Due to a change in sector focus Cenkos Securities plc has suspended coverage of Michelmersh Brick Holdings Plc. Our previous recommendation and forecasts can no longer be relied upon. Please contact Cenkos for further information.

Companies: Michelmersh Brick Holdings PLC

23 Apr 20

Cenkos: Housebuilding -- Forward into a brave new world

We know that the contracting end of the industry has continued to site operate in a very piecemeal fashion throughout this pandemic, with limited official guidance beyond acceptable safe working practises. As more and more sites become accessible the main contractors' return to work will be largely self-determined and appear to the outside world as somewhat seamless. The greatest challenge facing the contractors in my view is the inefficiency of working in this new environment and supply chain reliability.

Companies: BREE BRCK CTO

20 Aug 20

Strong H1 results with more yet to come

Capital Limited (LSE: CAPD) this morning released its 2020 H1 financial results. They also held a presentation to discuss them and the outlook for the business. Overall, H1/20 was a very robust performance in the face of a challenging environment with EBITDA increasing 21.3% YoY to $15.4m (vs Tamesis $14.5m) and EPS +168% to 10.0cps driven partly by a massive increase in net gains from equity investment. As a result, the Board has decided to increase the dividend to 0.9cps. The company has clearly weathered the Covid-19 storm with aplomb, and is now set to benefit from the effect of the huge rise in the gold price, to which its business is more than 90% exposed. We increase our TP to 102p.

Companies: Capital Limited

21 Aug 20

H1 20: robust result; proposed interim dividend at last year’s level

CRH has reported H1 results better than consensus expectations. Sales were down by only 3% lfl. On the EBITDA side, Americas Materials’ EBITDA was up by 20% and Building Products’ EBITDA was up by 11% due to solid pricing, good cost control and lower energy costs. Europe Materials’ EBITDA was 28% below primarily due to severe lockdowns in western Europe. Management has not communicated guidance for FY20.

Companies: CRH Plc

17 Sep 20

Cenkos:Breedon Group Plc - Confidence, Resilience, Quality

Who would have thought when reporting pre-tax losses of £10m after the first half to end June that Breedon would emerge so strongly from lockdown to trade through July-August (and into September) with LFL revenues ahead of comparative 2019 and expected H2 EBIT broadly in line with the equivalent 2019, resulting in a reinstatement of guidance ahead of current FY20 consensus. That is a mark of confidence as much in the group's operating capabilities as market recovery itself – a feature of Breedon's management quality over a consistent period of time. Investors will be impressed by the short-term recovery but also encouraged that the longer-term outlook remains positive with an emphasis to infrastructure markets in GB and Ireland plus, of course, its unrivalled ability to utilise its asset base very efficiently and to add to that platform with accretive acquisitions. The shares hit a COVID ‘low' of 63p but were trading as high as 100p in February. We would see that upper level as the more likely direction of travel for the shares with 90p justified by a forward 2022E rating of 7.5x EV/EBITDA, c14x PE, commencement of dividends and significant deleveraging through high net cash flow generation.

Companies: Breedon Group PLC

23 Sep 20

Trading back to pre-COVID levels; CFO appointment announced

Today’s AGM Statement highlights further progress during H1. As anticipated at the final results on 6th August, trading has now returned to pre-COVID levels, with a particularly strong recovery in housing market activity. As at 31st August, the order book has increased by 5% to £69.4m from £66.2m at 31st, with contracts secured across the Group’s end markets. The Company has invested in its sales team and back office functions in order to support the recovery, though management continues to monitor costs given the near term uncertainty presented by COVID-19. In the absence of more restrictive lockdown measures, we would expect activity to continue to improve in the near term and the medium term prospects of the Group remain encouraging, supported by the UK’s net-zero target, which will require substantial investment in the UK’s utility networks. Fulcrum has also announced the appointment of Jennifer Cutler as CFO from 19th October, whose most recent role was Direct of Finance at Harworth Group Plc. The shares have justifiably outperformed since the full year results and today’s statement is supportive of this increase. Forecast guidance continues to be withdrawn given near term COVID uncertainties, but we anticipate reintroducing forecasts at the interim results.

Companies: Fulcrum Utility Services Ltd

12 Nov 20

New Contract Demonstrates Continued Momentum

Capital (LSE: CAPD), a leading mining services company focused on the African markets, announced this morning the award of a new contract and subsequent mobilisation of an initial four drill rigs to Firefinch Limited's Morila Gold Mine in Mali. The rigs are part of Capital's existing West African fleet and will undertake an extensive delineation program under a two-year preferred contractor agreement between Firefinch and Capital. The first rig is now on site, with the balance scheduled to arrive during the current quarter.

Companies: Capital Limited

24 Nov 20

Contracts Win with Barrick Showcases Capital Ltd Growth Potential

Less than a fortnight after a major new contract announcement in West Africa, Capital has announced the expansion of its operations at Barrick Gold’s Bulyanhulu Gold Mine in Tanzania. The contracts include a five-year laboratory services contract for MSALABS, together with a two-year underground grade control drilling contract. Capital commenced operations at Bulyanhulu in February 2020, undertaking a deep hole delineation drilling program. The successful execution of this resulted in an expansion of services, with two underground rigs added to operations from May. The new contract will expand the underground fleet to four, utilising two rigs from the existing fleet and including the acquisition of a further two rigs.

Companies: Capital Limited

24 Nov 20

9m 20: financial strength boosted by weak M&A game

Overall, a good operating performance with 9m lfl EBITDA 2% ahead of 9m 19. Management expects EBITDA to be above $4.4bn, and other items to be largely in line with last year, with the P&L mainly impacted by $0.8bn of non-cash impairment. In view of these results, we expect a slight increase in our target price. We intend to keep our Add recommendation.

Companies: CRH Plc

07 Dec 17

Capital Network's Ed Stacey on Morgan Sindall Group PLC

19 Mar 20

Capital Drilling confident of continued activity from producing mining sites

07 Mar 18

Breedon Group - Full-Year Results 2017 Interview

11 Mar 20

Breedon Group - Full-Year Results 2019 Interview

18 Dec 20

Fox Marble Holdings' continues to pave Kosovo with Marble, 'winning significant contracts'

17 Jun 19

T Clarke (CTO) Presentation at Mello May 2019

27 Mar 19

Capital Drilling - Video Update

20 Mar 18

Capital Drilling - PDAC 2018 interview with Tony Woolfe

23 Mar 15

Executive Interview - Severfield

17 Jan 17

SigmaRoc - An overview

26 Jun 18

Capital Drilling - Introduction to Julian Blake

14 Dec 16

Renew Holdings - Preliminary Results 2016

08 Mar 17

Breedon Group Plc - Full year results 2016 interview

12 Jul 16

finnCap - Initiation of coverage, Fulcrum

Premium

05 Apr 20

eEnergy Group: Trading Update April 2020

Latest Content

Target Price Increased – 127p

Capital Limited

14 Jan 21
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SP Angel Morning View: Copper prices continue to rise on strong demand and outlook

ALBA CAPD CEY EEE RMM

08 Jan 21
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LafargeHolcim embracing the light-side

As anticipated by the market, LafargeHolcim has signed an agreement to acquire Firestone Building Products, a light-side materials player in commercial roofing and building envelope solutions based in the US, with FY20 estimated net sales of $1.8bn and EBITDA of $270m. This transaction is valued at $3.4bn (~12.5x EV/EBITDA), which, in our opinion, is not very expensive. The company sees high growth opportunities in this business through bolt-ons in the US and footprint expansion in LatAm and Europe mainly.

LafargeHolcim Ltd.

07 Jan 21
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Terry Dugdale appointed CEO

Fulcrum has announced that Daren Harris, CEO, is stepping down from the Board with immediate effect due to personal reasons. Terry Dugdale, who was appointed to the Board as COO in March 2019, will become CEO with immediate effect. Whilst Daren’s departure is unexpected, we have met Terry Dugdale on several occasions and rate him highly. Investor feedback has also been positive. Terry has been pivotal to driving operational efficiencies through the Group, improving utilisation and navigating the impact of COVID-19.

Fulcrum Utility Services Ltd

06 Jan 21
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Looking Ahead - w/c Jan 4th 2021

Looking Ahead At The Next Week

GBPBDEVMRWMKSNXTCAMBGRGCOSTEDLKDNCPHPGLVORM

04 Jan 21
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Fox Marble Holdings' continues to pave Kosovo with Marble, 'winning significant contracts'

Fox Marble Holdings Plc

18 Dec 20

Acquisition of Beond Group

eEnergy has announced the acquisition of Beond Group, an energy consultant and procurement business with a focus on renewable energy. Beond is a well-established, profitable business with a strong track record of growth. The acquisition consideration (£8.2m net of surplus cash acquired) comprises a mix of cash and shares, the cash element being funded by a £3.2m ABB, announced last Friday. We consider the acquisition a positive and important strategic step for eEnergy Group and expect it to be significantly earnings enhancing (EPS +19% in FY22, +10% in FY23).

eEnergy Group PLC

14 Dec 20
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Title For Report

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Borgestad ASA

11 Dec 20
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Severfield - Robust position, encouraging outlook

COVID-19 market disruption has dented FY21 profitability, but we still expect Severfield to end the year by maintaining dividend levels and with a good net cash position. Consequently, with an optimistic view of pipeline opportunities, it remains well positioned to secure business in core market sectors and deliver a steady earnings recovery by FY23.

Severfield Plc

08 Dec 20
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Cenkos: Fulcrum Utility Services Ltd -- Exploiting long-term growth opportunities

H1/21A results reflect a period where COVID-19 impacted Q1/21 trading, masking over early signs of progress from the company's new strategic plan. Given activity rebounded during Q2/21 to pre-COVID levels, we expect a stronger H2/21E delivery and a profitable FY21E on flattish revenues. In FY22E, we expect to see material signs of progress in trading from strategic growth initiatives (housebuilding/EV/smart metering etc). Given these long-term drivers, we believe Fulcrum should be viewed as an attractive growth, rather than prior earnings quality, investment case.

Fulcrum Utility Services Ltd