Household Goods & DIY

Household Goods & DIY equity research

Explore the most viewed and latest equity research and media content for companies within the Household Goods & DIY sector. Stocks in this sector include those who specialise in: decoration, furnishing, durable & non-durable home products, and DIY.

Household Goods & DIY equity research

17 Sep 18

LIBERUM: MJ Gleeson Group* - Confidence shown in 33% dividend rise

Management has demonstrated confidence in future demand and the sustained cash generative nature of its business by raising the dividend for 2018 by 33% as the cover has been reduced from 2.0x to 1.75x. Management is confident that demand will remain strong as its customers are mainly first time buyers who are under-served by mainstream builders and find it cheaper to buy than to rent.

Companies: MJ Gleeson

17 Sep 18

Continuing to outperform; positive dividend surprise

June ‘18 EPS increased by 14% to 55.2p. This was 3% ahead of our forecast and confirms continued strong momentum in the business. Gleeson Homes delivered record volumes of 1,225 (2017: 1,013), making a positive first stride towards its 2,000 home 2022 target which it has reiterated this morning. Gleeson Strategic Land also had another very busy year. Cash generation was strong with net cash of £41.3m at the year end (2017: £34.1m). Gleeson has announced another significant step up in the dividend to 32.0p vs. our 27.4p forecast. Given the strength of the Group’s cash position, we are upgrading our dividend forecasts by 14% and 8% in FY19 and FY20. Gleeson has a unique model, above average earnings growth, high margins and an attractive dividend yield. For these reasons, we expect the shares to continue to outperform the wider sector in H2 and Gleeson remains one of our Best Ideas for 2018.

Companies: MJ Gleeson

18 Jul 18

Quarterly Research Outlook

In Q2, UK equities regained some of their poise after the draw down in Q1, although uncertainty around Brexit continued to grab the headlines. On the back of this, investor concern about the UK economy has been understandable in recent months given a number of negative data points. However, we see reasons for optimism for UK Plc with wage growth supporting an improving outlook for the consumer and business investment holding up. That said, continuing UK political disruption clearly remains a risk going forward.

Companies: AMER EMR HMI JOG PDG ABBY AMS AVON BLVN PIER CGS CALL CSRT TIDE DTG DEMG ELM EMR FPM FPO GTLY GENL GOR GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG LAM MACF MKLW NAH OXIG PCA PKG CAKE PDG RBW REDD RSW RNO RKH ROR SUS SCPA SHG SIV TRAK TRI VTC ZTF

03 Aug 18

Walker Greenbank - Earnings pressure but asset backing

Management recently flagged licence and UK order book development below levels anticipated at the AGM and lowered FY19 PBT guidance to the £9.5–10m range. The share price is now at its lowest level for over five years and – trading below NAV – implicitly attributes no value to the brand portfolio. A dividend yield in excess of 5% could also be an attraction.

Companies: Walker Greenbank

28 Aug 18

Cenkos: IG Design Group Plc - Combining Design & Innovation

IG Design has announced the conditional acquisition of Impact Innovations Inc, in the USA funded by the first tranche of a two part £50.0m placing. A successful acquisition of Impact is expected to make IG Design the largest consumer Gift Packaging business in the world, doubling IG Design's US revenue. IG Design intends to buy 100% of Impact on a debt-free/cash-free basis for £56.5m, on a EV/EBITDA of 4.9x. We upgrade our forecasts, with our FY20E adjusted EPS increasing 15% to 31.4p. Buy.

Companies: IG Design Group

09 Apr 18

UK Housebuilding Sector

This ominous-sounding term originated from the work of famed Swedish meteorologist, Tor Bergeron (1897-1977), but it only entered popular vernacular this year – and there have been ample opportunities in 2018 to use it.

Companies: ABBY BDEV BWY BKG BVS CRN CSP CRST GLE INL MCS PSN RDW SPR TW/ TEF WJG

24 May 18

Strong performance from quality – 11 focus stocks

We have refreshed our quality style screen for the second time and report on style performance since the last refresh in October. Performance has been very strong, outperforming the small-cap index by c.1600bps (weighted basis) and c.1000bps (unweighted). There has been volatility with the market and this style has yet to be tested in a concerted down market, but in a flat or rising market quality appears to be a successful investment style in small-caps. We have highlighted 11 focus stocks in the new screen and will report back again on performance when we next refresh the screen in about 5-6 months’ time.

Companies: LIO GHT AMO CHH ZYT DOTD GTLY RIV FCRM TAM PAM

02 Jul 18

H1 Review

Best Ideas - 2018 H1 Review

Companies: SAA VP/ GLE AMO IOM HSP CVSG EKF PGIT VRP RLM AVG SOG DNLM SFR YU/ CBP

05 Jul 18

LIBERUM: MJ Gleeson Group* - Raised TP to reflect sustained growth in Homes

Gleeson's year end trading update shows that Homes has continued to show rapid growth, with volumes up over 20% and Strategic Land has continued to enjoy buoyant demand. We leave estimates unchanged, but the pipeline of sites in Homes and Strategic Land gives us confidence in the outlook.

Companies: MJ Gleeson

22 Aug 18

H118 results

Headlam have acknowledged that soft trading conditions experienced in H118 are likely to persist over the second half. Whilst the impacts of this are to some extent offset by firming gross margins, this has prompted guidance to the lower end of current market expectations; our “bottom of the range” PBT forecast of £43.5m is unchanged. Ultimately, the flooring market is driven by replacement spend and Headlam should perform well into any rebound in consumer confidence. However, we expect sentiment will remain subdued given nervousness on consumer spending over the seasonally busy Autumn period minimising scope for a recovery in the share price short term.

Companies: Headlam Group

29 Aug 18

Two new sites boost forward visibility

The UK’s 67m population is growing at a healthy 1% pa clip, albeit there was a slight dip in the birth rate at the turn of the Millennium (see below). Leading this year to a 3% fall in the number of 18 year olds, and a 1.9% decline in British students accepting places at University (UCAS). Offset partially by a 3%-4% increase in overseas applications, leaving the total 2018/19 freshers’ intake very marginally lower (-1.1%) at c. 530k.

Companies: Watkin Jones

13 Sep 16

AIM Journal - September 2016

This year’s AIM Awards shortlist has been published and the winner of the company of the year will be a new one in 2016. Last year, vet practices consolidator CVS took home the award. The 2016 shortlist consists of spirit mixers supplier Fevertree Drinks, software and consultancy services provider First Derivatives, document storage services provider Restore, and replacement windows supplier Safestyle UK. Safestyle and Fevertree have won the best newcomer award in the past two years and that can be an indication that they have a good chance of winning other awards that they are put up for. Fevertree is also on the shortlist of the new award for AIM growth business of the year and Charles Rolls and Tim Warrillow are in the running for entrepreneur of the year. Restore is on the shortlist for the best use of AIM award. The shortlist for the best investor communication award, which is sponsored by Northland Capital Partners, includes gemstone supplier Gemfields, university generated businesses funder and developer Imperial Innovations, animal feed, food distribution and fuel supply company NWF, and infrastructure services provider WYG. Imperial Innovations is the 2015 winner of this award and NWF was the winner in 2011. India-focused power generator OPG Power Ventures and construction equipment manufacturer Somero Enterprises Inc have both returned to the shortlist for the international company of the year. They are joined by Fyffes and Burford Capital.

Companies: GVC SHRE MIDW CHH NASA TAP WJG MARL EDL

13 Apr 18

Accentuating the positives

There were a number of headwinds and tailwinds in FY18, in which good growth was delivered, but lower earnings expectations have dominated sentiment. Walker Greenbank has some strong and unique market positions and is becoming increasingly active in broadening its revenue mix into faster-growing segments. Success here and greater stability in UK demand will translate to rating expansion in our view.

Companies: Walker Greenbank

25 May 18

AGM trading update ; UK organic revenues -6.3%

Headlam have confirmed a difficult start to FY18 reflecting the softening UK retail environment and a customer specific issue; organic revenues have shrunk 6.3% in the first four months which is, therefore, still tracking meaningfully behind our estimate of a 2.0% decline in organic UK revenues in FY18. Whilst May has improved and self-help measures will benefit gross returns, we are again trimming our estimates to more conservative assumptions. The key period will, as ever, be the seasonally busy Autumn period and we expect the shares will remain subdued pending confirmation of trading trends in the latter part of the year.

Companies: Headlam Group

18 Apr 18

FY18 Trading Update

IG Design Group plc (“DG”) has released a trading update indicating that 2018E is in line with expectations - thereby implying impressive YoY revenue and adjusted operating profit growth of +5% and +24% respectively. There has been a corresponding improvement in reported gross margin (21.2% 2018E) as operational efficiencies and the synergistic benefits of recent M&A activity continue to substantiate. Following upgrades to adjusted EPS at the time of the Q3/18 trading update (2018E +7.5%, 2019E +4%), our headline 2018/9E forecasts remain unchanged.

Companies: IG Design Group

31 May 17

Telford Homes - Final Results

18 Apr 18

Telford Homes - Trading Update

18 Apr 18

IG Design Group (IGR) Investor presentation April 2018

28 Nov 17

IG Design Group (IGR) H1 results November 2017

29 Nov 17

Telford Homes - Interim Results 2017

11 Oct 17

Telford Homes - Trading update

02 Feb 17

Telford Homes Plc - Acquisition of Cambridge Heath Road for £30.2m

05 Jun 17

Telford Homes - Significant build to rent development in partnership with Greystar

11 Jun 18

IG Design Group (IGR) Full year results 2018

30 Nov 16

Telford Homes - Interim results 2016

30 May 18

Telford Homes - Full Year Results

12 Oct 16

Telford Homes - Trading Update

20 Dec 17

Telford Homes - Acquisition of prominent site in Walthamstow

07 Oct 16

finnCap - Victoria, Initiation of coverage

Premium

27 Jun 17

IG Design Group (IGR) Preliminary results for the year ended 31 March 2017

Latest Content

MJ Gleeson

LIBERUM: MJ Gleeson Group* - Confidence shown in 33% dividend rise

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17 Sep 18
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ACT AVG BOO CLIG HZD GLE RLM RST

Morning Song

Actual Experience (ACT LN) Capital Markets Day highlights year of significant progress | Avingtrans (AVG LN) Further contract wins in US nuclear and solar markets | boohoo.com (BOO LN) Planning for next phase of growth – strengthening of leadership team | City of London Investment Group (CLIG LN) Finals: No surprises after detailed trading update | Horizon Discovery Group (HZD LN) H1’s: EBITDA loss from increased investment expected to reverse in H2 | MJ Gleeson (GLE LN) Continuing to outperform; positive dividend surprise | Realm Therapeutics (RLM LN) Corporate update: strategic review and formal sale process | Restore (RST LN) H1 results in line; acquisition integration underway

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17 Sep 18
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MJ Gleeson

Continuing to outperform; positive dividend surprise

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17 Sep 18
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SCPA NCYT WRES VSN STX SUN SOU CFX HUR SML

Small Cap Breakfast

Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due 28 Sep. EBITDA Profitable. Offer TBA Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months. Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m. Offer TBA. Due Mid September Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa

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13 Sep 18
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Churchill China

Continuing to dish out premium growth

Churchill has reported an excellent set of interims, delivering 22% PBT growth vs a stiff 31% comp. Key tenets of this growth were geographical diversity and continued sales momentum of value-added products. Looking forward, the business is trading well, investing appropriately, strengthening the international platform and, in our view, European growth should continue to prosper under either Brexit scenario. We further nudge up our 3 year EPS forecasts by 1-4% and argue for fair value towards 1250p.

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30 Aug 18
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CHH IFP XAR

Morning Song

Churchill China (CHH LN) Continuing to dish out premium growth | IFG Group (IFP LN) Operational progress, but still no clarity on HMRC investigation | Xaar (XAR LN) Trading below expectations; reviewing partnering options for printheads

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30 Aug 18
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HELMA Eigenheimbau

Helma Eigenheimbau - High-margin projects starting to pay off

Helma’s decision to maximise margins at the expense of top-line growth amid the present market constraints seems to be bearing fruit, as illustrated by the solid earnings momentum in H118. Residential demand in Germany remains buoyant against the backdrop of a structural housing shortage. In the longer term, Helma’s robust land bank (representing a revenue potential of c €1.2bn according to management) should allow the company to benefit from these fundamentals. Helma’s shares trade at a P/E ratio for FY19e of 8.7x, which is a 17% discount to peer average.