Billington provides structural steel and safety solutions to the construction industry. Against the backdrop of pandemic induced disruption through 2020, and set against the record performance of 2019, Billington has reported a solid and profitable performance in FY2020. Set against a record high comparative period, Group revenue decreased 37% to £66.0m with adj. profit before tax reducing to £1.7m (FY2019: £5.9m). Adj. EPS fell commensurately to 11.3p (FY2019: 39.8p) and, as a mark of confidence, Billington reintroduced a final dividend of 4.25p, covered 2.7x (in line with historic cover). Our newly introduced FY2021E estimates (adj. PBT £2.2m) reflect the duality of a relatively robust opening order book (75% higher YoY), but set against caution with respect to margin pressure given cost inflation in the supply chain. The medium term outlook is likely to be buoyed by infrastructure investment in key markets BILN serves, albeit pricing volatility is a key risk. Billington's cash rich balance sheet positions it well to weather potential future uncertainties, whilst others likely fall by the wayside. We see fair value at 375p.

Billington Holdings Plc

• 13 Apr 21
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FY 21 EBIT slightly ahead of our estimates. Net debt much better than expected, we expect through working capital discipline and crucially management guides to no rights issue. £1.7bn of impairments and charges – mostly non-cash, unlike Serco’s review where there was a significant cash drag from the OCP. The review of contract profitability has reduced the long term margin take and profits by c. £30m p.a. We reduce FY 22 EBIT by 7% from £340m to £315m, lower than feared. Buy, TP 350p

Babcock International Group PLC

• 13 Apr 21
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Clean FY20 EPS beat our expectations by 5%, but the real story of these results is that EBITDA came in ahead of our November 2019 forecast. EBITDA rose 64% through acquisitions, but management has extended its record of improving the returns of acquired businesses. We raise our EBITDA forecasts by c.10% across the forecast period to reflect only the recent Belgian transactions. We raise our target price to 92p per share, set at 10x EV/EBITDA. With these acquisitions now in place, the group has reached critical mass with four platforms and strong enough cash flows to self-fund acquisitions and other opportunities.

SigmaRoc Plc

• 13 Apr 21
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SigmaRoc has this morning announced that it has acquired two Belgian ready-mixed concrete businesses for €13m. These will be added to Stone and the aggregates assets at Granulats du Hainaut to form a second heavy construction materials platform in Belgium. We expect this platform to grow over time as there should be significant opportunity for a nimble and efficient operator like SigmaRoc to become an important independent supplier to the market. We will update our estimates on full year results next week. We raise our target price to 86p to reflect the incremental EBITDA likely from this platform in the year ahead.

SigmaRoc Plc

• 07 Apr 21
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Technip Energies (T.EN) operates in the cyclical oil & gas industry, with a high share of (profitable) LNG projects in the backlog. We expect tight capex spending for the coming years and therefore take a cautious view on long-term margins. The exception is in low-carbon, where the oil majors are pivoting. A strong track record in delivering flagship projects positions the company well in receiving awards during the energy transition, and supports our positive recommendation on the stock.

Technip Energies NV

• 29 Mar 21
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SigmaRoc has this morning announced that its Belgian subsidiary, Carrières du Hainaut, has taken control of LafargeHolcim’s co-located quarrying business for nil consideration. This transaction improves EBITDA by €1m per annum and gives SigmaRoc a platform to grow its Belgian aggregates business. We leave our estimates unchanged, and will revisit with results on 13 April. We raise our target price from 73p to 81p to reflect the enhancement from this transaction and the likely impact of redeploying funds raised in December.

SigmaRoc Plc

• 26 Mar 21
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Buzzi published a good set of results. Despite the pandemic, it achieved flat sales and an EBITDA growth of 7% yoy. Along with strong operating cash flow generation, Buzzi also benefited from the sale of Kosmos Cement’s assets (+€103.6m impact on net income). It has a strong cash position, with net debt down from €568m to €242m, and Buzzi is forwarding the benefits to the shareholders through a higher dividend and a share buy-back programme.

Buzzi Unicem (BZU:BIT)Buzzi Unicem S.p.A. (BZU:MIL)

• 26 Mar 21
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Two aspects of the well flagged 2020 Prelims are notable and inter-linked to the over-riding principle of shareholder value creation. First is the decision to pay an unchanged (4.4p) dividend for 2020 thus meaning TClarke has sustained dividends right through the pandemic, and second, management is now formally targeting revenues of £500m by FY23, more than double the level reported for 2020 and almost 50% higher than 2019's record level. The planned growth is organic and comes with a management committed to sustaining c3% operating margins. Yes, £500m is a challenging number but not unachievable against the 13% higher year end order book (at £456m), a broader but more focussed platform from which TClarke is now operating and the value of bids submitted or in the pipeline especially in such areas as data centres, healthcare and smart buildings M&E. Arithmetically it does not take a genius to calculate that, medium-term, TClarke could be targeting EPS of c24-25p (30% above last cycle peak) but our 17% lift in estimated ‘Fair Value' share price to 133p (from 114p) comes only from rolling forecasts out to 2022 and re-instating higher levels of dividend. Against this and the cheapness of the rating (2022E PE c5x, yield 4.6x, FCF yield 14% and net cash), we have no hesitation in re-iterating a Buy recommendation.

TClarke plc

• 24 Mar 21
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PensionBee, the online pensions provider, with a mission to make pensions simple, so that everyone can look forward to a happy retirement, considering an IPO on the High Growth Segment of the Main Market of the London Stock Exchange. PensionBee is a leading online pensions provider in the UK, with approximately 130,000 Active Customers and £1.5 billion of assets under administration , in each case as at 28 February 2020. Cornerstone FS to join AIM, an SME focused, cloud-based provider of international payment, currency risk management and electronic account services focused on removing the complexity of international payments for customers. Raising £2.2m. Mkt Cap £12.3m. Due 6 April. Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc. With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m Expected April 2021. Parsley Box, the direct to consumer provider of ready meals to the 60+ demographic, recently announced its AIM IPO plans. Parsley Box provides ready meals, which are not required to be stored in a fridge or freezer, have a shelf life of up to six months and are cooked in minutes. The company reported revenue of £24.4m for the financial year ended 31 December 2020 (unaudited). Deal details TBC and admission is expected to occur late March/ early April 2021. ActiveOps, a UK-based leader in Management Process Automation (MPA), providing a SaaS platform to large enterprises with complex and often global back-offices is planning to join AIM. Details TBA. Due late March. Proposed move to AIM from the main market (standard) by Emmerson (EML.L) to provide Emmerson with access to a market and environment which is more suited, in the Board's view, to the Company's current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development work. NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company's target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021. Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021. Fix Price announces its intention to float on the Main Market of the London Stock Exchange. Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company. Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA. Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT's investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance. Deliveroo has applied for admission of the Company's Shares to the standard listing segment of the Official List of the FCA and to trading on the main market of the London Stock Exchange. Deliveroo works with over 115,000 best loved restaurants, takeaways and grocery stores globally and provide work to over 100,000 riders across 800 locations in 12 markets, serving 6m customers globally. The price range for the Offer has been set at £3.90 to £4.60 per Share, implying an estimated market capitalization at Admission of between £7.6 billion and £8.8 billion. Raising c. £1bn. Due 7 April

ADME AQX BLCC ANR HSP BPC TON FOX FDBK ALNOV

• 24 Mar 21
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‘Defence in a competitive age’ was published last night and is positive on balance. There is a firm commitment to the Navy, Babcock’s largest market. The Type 31s and FSSS are re-affirmed and more ships in 10 years time suggesting a growing maintenance and re-fit opportunity. We understand that two Type 23s will be retired, but some of this was already anticipated in the order book. The commitment to submarine warfare is encouraging given Babcock’s monopoly of sub-marine maintenance. Babcock seems unlikely to benefit from the investment in Army equipment and DSG revenues are likely to fall after 2025. A smaller army is unlikely to have much impact on Babcock. Fewer fast jets may indirectly reduce training needs. BUY, TP 350p.

Babcock International Group PLC

• 23 Mar 21
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