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.

06 Aug 20

Cenkos: Fulcrum Utility Services Ltd -- Repositioned and focused on green growth

FY20A results are broadly in-line with forecasts set prior to Covid-19, evidencing a far stronger H2A delivery to the year. Fulcrum has now refocused on a number of growth opportunities based on long-term strategic priorities for the UK, including the move to a net zero economy. MoM momentum is building so far in FY21, such that pre-Covid trading levels are expected to be met in Q2/21. Given this, a record order book and strong balance sheet, we see a brighter future for Fulcrum ahead.

Companies: Fulcrum Utility Services Ltd

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

13 Oct 20

Q3 2020 Trading Update

Capital Limited (LSE: CAPD) this morning provided its Q3 2020 trading update. Revenues are up 8.3% on the prior quarter and broadly in line with our forecasts, driven by strong rig utilisation performance - a trend we expect to continue given the strong macro outlook and announced new contract wins. We are keeping our FY/2020 revenue forecasts unchanged at US$138.3 million.

Companies: Capital Limited

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 SDL SPR TRI

14 Sep 20

Post-lockdown bounce “exceeds expectations”

Trading since lockdown has “exceeded management expectations”, brick and concrete products group Forterra has confirmed in its HY results to June. Brick and block volumes have recovered strongly, buoyed by strong housebuilding and refurbishment, while production has commenced at all plants – giving the Group sufficient confidence to recommence financial guidance for FY 2020E. We believe recovery in demand is likely to gather pace, fuelled by Government support for housebuilding.

Companies: Forterra Plc

04 Sep 20

EXANE: Cementir - Smooth finish

A leader in white cement, CEM enjoys high entry barriers in its major profit generating markets. The group’s progress toward its green targets could narrow the valuation gap with peers.

Companies: Cementir Holding (CEM:BIT)Cementir Holding N.V. (0HY2:LON)

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

22 Sep 20

WHI Morning Comment: Billington (BILN) - H1 results – a profitable start with room for cautious optimism

Billington provides structural steel and safety solutions to the construction industry. After record results in FY 2019, Billington's interim results to June 2020 reflect the anticipated disruption of Covid-19. However, the Group remained profitable in the period (revenue £32.8m, adjusted PBT £0.6m) and the balance sheet retained its significant cash backed strength. Further, although pricing pressure is still a significant feature in the market, as the announcement of £21m of orders yesterday demonstrated, there is still plenty of business to be won in less competitive segments. Our FY 2020E estimates remain suspended, but all other things being equal, it is not beyond the bounds of possibility that Billington could deliver a similar performance in H2 as reported in H1. The present order book is supportive of such a scenario. The outturn for FY 2021E is harder to determine, but there again, Billington is exposed to a number of verticals where investment continues and where competition is less pronounced. With its strong balance sheet likely a significant comfort to clients, the medium-term prospects for Billington, in our view, continue to be strong.

Companies: Billington Holdings 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

05 Oct 20

Nuclear revival

Assystem is the French leader in engineering services for nuclear plants and is well positioned to benefit from new construction projects outside France. Nuclear engineering specialist Assystem is the French leader in nuclear engineering services with ~25% domestic market share and a global top 5 position. Founded in the sixties and involved in the French nuclear programme, its highly skilled engineers have a deep knowledge of French nuclear assets, a key competitive advantage for gaining new build or maintenance contracts. Supportive capex cycle Despite a hot political debate around nuclear in France, the French fleet will need increased maintenance at least until 2035 due to ageing equipment. In addition, a number of countries have launched or are planning new construction. Healthy pipeline Visibility on top line is solid for at least the next three years, thanks to: 1) mandatory maintenance / lifetime extension programmes in France; 2) new build projects in the UK and the Middle East. This should more than offset softness in non-nuclear activities. We forecast 5% revenue CAGR. Profitability catching up from covid We expect 2021E net profit to sharply rebound as projects have returned post covid and despite weakness in equity-accounted Expleo. We forecast 14% EBIT CAGR over 2020E-2023E Valuation range of EUR26 to EUR31 Our valuation range is based on a DCF (EUR26; WACC at 10.5%, terminal growth at 1%) and a SOP (EUR31). Risks include project phase out, cost overruns, employee turnover and competition.

Companies: Assystem SA

27 Oct 20

Q3 20 sales post view

Q3 20 sales in line with our estimates Assystem published Q320 revenues that were broadly in line with our expectations at EUR115m down 1% LFL compared to our EUR116m estimate. Back to growth in the core business Nuclear activities returned to growth (+1.6% LFL) driven by France and the UK while onsite operations in Saudi Arabia (KA Care contract) were held back by local measures to contain the pandemic (-2.8% headwind on divisional LFL growth). Non-nuclear activities also saw a quarter to quarter improvement with a -3% LFL decline vs. -20% in Q2, driven by project management in Building Infrastructure. The division was said to have returned to growth in September. Staffing (-13.2% LFL) remained under pressure, adversely impacted by travel restrictions. FY 20 guidance fine-tuned - we leave our estimates unchanged Assystem fine-tuned its FY 20 guidance. The group now expects 1) revenues of EUR470-475m vs. EUR485m previously and 2) EBIT margin of 5.2%-5.3% vs. 5.0% previously. The net effect of this new guidance on our estimates is neutral (negative at the revenue level / positive at the EBIT level). The group also indicates that its order book and pipeline of tenders open up good prospects for 2021.

Companies: Assystem SA

30 Oct 20

Q3 20: disproportionate growth in EBIT

LafargeHolcim saw resilient demand in Q3 (down by only 2.6% lfl) and the company delivered well on its Covid-19 action plan, resulting in a disproportionate increase in EBIT with a margin improvement of 250 bps. Management upgraded its guidance, with FCF now expected to be >CHF2.75bn and debt leverage <1.8x.

Companies: LafargeHolcim Ltd.

07 Dec 17

Capital Network's Ed Stacey on Morgan Sindall Group PLC

11 Mar 20

Breedon Group - Full-Year Results 2019 Interview

07 Mar 18

Breedon Group - Full-Year Results 2017 Interview

25 Jul 19

Breedon Group PLC - Interim Results 2019 Interview

20 Mar 18

Capital Drilling - PDAC 2018 interview with Tony Woolfe

06 Mar 19

Breedon Group - Full-Year Results 2018 Interview

05 Apr 20

eEnergy Group: Trading Update April 2020

06 Dec 18

SigmaRoc (SRC) Presentation at MELLO London November 2018

05 Sep 18

Breedon Group - Half year results 2018 interview

12 Jul 16

finnCap - Initiation of coverage, Fulcrum

Premium

10 Oct 19

'New phase' for Capital Drilling with first comprehensive mining services contract

25 May 16

Renew Holdings - Analyst interview, WH Ireland

17 Jun 19

T Clarke (CTO) Presentation at Mello May 2019

25 May 16

Renew Holdings - 2016 Interim Results

27 Mar 19

Capital Drilling - Video Update

Latest Content

Q3 20: Last year’s boon this year’s bummer

ACS registered a drop of 5.5% in sales over 9m but its EBITDA and net income were materially lower, by 17.1% and 37.9% respectively. Ex Abertis the net income was down by only 12.3%. As for the deal with Vinci, ACS plans to use the proceeds to strengthen its core greenfield infrastructure construction business in its core markets.

Actividades de Construccion y Servicios SA

30 Oct 20
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Q3 20: disproportionate growth in EBIT

LafargeHolcim Ltd.

30 Oct 20
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Revenues back in line with pre-COVID figures

EBITDA holds up well despite COVID/challenges All eyes on refinancing in the next 12 months Agora Bytom footfall still lagging last year’s figures Arctic Securities mandated as arranger for a contemplated bond refi

BOR BORNOK BOR

30 Oct 20
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Strongest quarter ever for NORBIT Oceans

Q3/20 EBITDA of NOK 28m vs. Factset consensus of NOK 13m ITS sales down 65% Y/Y hurt by high auto manufacturer inventories Oceans sales up 64% Y/Y driven by strong demand for product portfolio Board announced DPS of NOK 0.30 to be distributed in November 2020

Norbit ASA (4NK:FRA)Norbit ASA (NORBIT:OSL)

28 Oct 20
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Q3 20 sales post view

Assystem SA

27 Oct 20
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9M 20: Vinci enjoyed a pleasant summer

Vinci had a good summer, with Q3 contracting activities and autoroute traffic almost back to last year’s level. Management continues to believe that there will be a significant reduction in the full-year results but has not downgraded its guidance, which was last updated in July, except for airports where it now assumes a traffic reduction of 70%. Post the trading update, we have made minor tweaks to our model which had no impact on our recommendation.

VINCI SA

21 Oct 20
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OEM partnership with Venture Lighting

eEnergy has agreed an exclusive OEM partnership with Venture Lighting Europe. Venture Lighting will supply eLight (eEnergy’s Light as a Service business) with eLight branded LED technology on exclusive terms. This should speed up installation times, reduce costs and ensure consistent project delivery. eEnergy is the market leader in Energy Efficiency as a Service to the education sector in the UK and Ireland. We recently initiated coverage, highlighting the Group’s strong revenue momentum and ambitious growth plans. This new agreement enhances its offering, further differentiating eLight from the competition

eEnergy Group PLC

19 Oct 20
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Contracts review identifies losses

Construction and engineering services company nmcn has issued a trading update following an extensive review of major contracts. The Board now expects to report a loss before tax of £13.5 - 15.0m for FY 2020E, due to costs already incurred, with limited impact on cash. We have accordingly amended our estimate for the current year but have maintained our FY 2021E estimates, albeit with a cut in our forecast dividend. While a setback, we continue to believe nmcn is well placed to benefit from strong positions in key UK infrastructure priorities including water, roads and telecoms.

nmcn plc

15 Oct 20
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Q3 2020 Trading Update

Capital Limited

13 Oct 20
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ACS's jewels really well priced

Vinci has made a non-binding offer to acquire the Industrial division of ACS for €5.2bn, of which €2.8bn will be paid in cash and the rest in either shares or cash. ACS has accepted the offer and it is now subject to further due diligence and an approval from the authorities. We had valued this division at €4bn, which means Vinci is buying it at a premium of more than 30% to our valuation.

Actividades de Construccion y Servicios SA