Leclanché has accepted a binding conditional offer from Eneris Group, a Polish company dedicated to environmental protection, to create two JVs: one manufacturing battery cells, the other assembling battery modules. The transaction gives the group the finance it needs for capacity expansion and to fully fund its business plan until mid-2021 without dilution to shareholders as it works through an order book of over CHF90m (excluding the St Kitts project). Our estimates remain under review until there is greater visibility regarding the St Kitts project, which management intends to build under a ‘build-own-operate’ (BOO) model.

Leclanche

• 02 Jun 20
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Eve Sleep

• 29 May 20
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The phased reopening of Walker Greenbank’s two manufacturing facilities (both in the UK) is underway with Standfast & Barracks already operational and Anstey restarting this week. The company’s business model is such that near-term activity levels can be rebuilt gradually. It may also support new business development in the UK in due course compared to overseas supply sources. No new financial information was provided ahead of the company’s scheduled FY20 results announcement on 30 June, at which point activity levels during FY21 to date should also be disclosed. Our estimates remain suspended at this time.

Walker Greenbank

• 28 May 20
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Portmeirion has provided an AGM trading update this morning effectively covering 20 weeks of H1. Online commentary is upbeat and export demand has sufficiently picked up for management to partially reopen the ceramics factory. Unsurprisingly the core retail demand in UK/USA remains subdued but we should stress Q2 (Apr-June) accounts for c25% of sales – 60% of sales and 80% of profits are made in H2. Investors should also take huge comfort around the balance sheet. Pro-active actions to minimise cash outflow means a significantly low cash burn of <£1m for the whole of Q2, whilst liquidity headroom of c£15m on our estimates is highly reassuring in the current climate. Management remain committed to reinstating the dividend once deemed prudent to do so. N+1 Singer currently has no formal forecasts in the market and will initiate coverage in due course. The stock has recovered from its 240p low in March and trades on a historic P/E of 7x and 4.5x EV/EBITDA with a >10% FCF yield and a NAV of 452p. Fundamentally the legacy brand portfolio is an attractive cash-cow with broad international appeal and significant brand equity. We feel this provides the foundation to support an exciting NPD/online/Wax Lyrical led strategy recently unveiled by the new CEO. The share price at the current depressed level presents an attractive entry point for investors looking for deep value, asset backed plays on a mid-term basis.

Portmeirion Group

• 20 May 20
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Residential for rent developer and manager Watkin Jones confirms in today’s interim results that it has started a phased return to construction and has the financial resilience, including gross cash of £72m and £71m headroom on its new RCF, to return to growth and “take advantage of economic opportunities that may arise” in the fall-out from the Covid-19 lockdown. The results show increases in revenue, profit and pipeline in a sector which could be transformed following the lockdown.

Watkin Jones

• 19 May 20
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Initial data on Leclanché’s FY19 performance shows the adverse impact of delays to the St Kitts stationary energy storage project and suspension of cell manufacturing during August which caused deliveries in the e-mobility segment to be delayed. The order book for delivery during FY20 and FY21 exceeds CHF90m, excluding the St Kitts project which management now intends to build under a ‘build-own-operate’ (BOO) model. Our estimates remain under review until there is greater visibility regarding this project.

Leclanche

• 18 May 20
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Following this week’s updated guidance from the Government, Gleeson Homes will now implement its plan to restart build and sales activity across its 67 sites. This will be carefully managed with the emphasis on the safety of staff, subcontractors and customers. Gleeson has also launched its Key Worker Priority Programme to prioritise sales to key workers, who already represent 2/3 of customers. It is too early for the company to provide forward guidance but we remain of the view that Gleeson will emerge strongly, given the strength of its proposition with a focus on highly affordable good quality homes across the Midlands and North of England.

MJ Gleeson

• 14 May 20
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MJ Gleeson has announced that it is starting to reopen its sites for building and selling homes. The opening will be phased, with all sites active by the end of June.

MJ Gleeson

• 14 May 20
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In Q1 20, organic sales decreased (-5% vs +1.9% in Q1 19) due to the COVID-19 pandemic that first impacted Asia-Pacific, then Europe and Latin America since mid-March 2020. In North America where organic sales plunged (-13%), Electrolux continued to be affected by capacity constraints and inefficiency at its new facility in Anderson. Operating income was tiny (0.5% of sales). Q2 20 should be worse with a deterioration in volume in many geographic areas and a significant operating loss.

Electrolux

• 07 May 20
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