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

11 Apr 19

Quarterly Research Outlook

We’re just over three months in to 2019 and we’ve seen a 10% UK market rally, retracing much of the Q4 decline, such is the nature of fickle market sentiment. That said, many of the issues we wrote about three months ago that were impacting markets remain: notably Brexit, trade wars, geopolitics and global monetary policy. The 2019 rally thus far feels somewhat fragile, with competing forces of optimism on a potential trade deal which could underpin the rally, against the deterioration in underlying economic data that could ultimately undermine the recent market gains. In this context, we look at what the lead indicators and the market are telling us about the industrial cycle and the stocks most exposed to various industrial trends. The Q4 derating in short cycle industrials and autos had been vicious and while these sectors have seen a more solid footing in 2019, with earnings downgrades being priced in, it will likely take a trough in lead indicators before short cycle stocks can start to perform again and re-rate relative to the market.

Companies: ARS CYAN HYR LIT SOM ABBY AMS AMER ANX ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE DTG DEMG EMR FPO FST GTLY GENL GOR GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO INDI JHD JOG KEYS KCT KGH LAM LOK MACF MNO MANO MOD MKLW OXIG PCA PANR PARK PGM PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TRAK TRI VNET VTC ZOO ZTF

15 May 19

LIBERUM: Crest Nicholson* - Resilient trading

Crest Nicholson has announced that trading has been resilient in the six months to April 2019, with a reservation rate of 0.78 units per site per week, which is the same as achieved a year ago. The statement also shows that management has delivered on the strategy of turning land assets more quickly, which is demonstrated by a £41m reduction in net debt compared to last year as well as an acceleration in revenues from land sales, JV and commercial activity.

Companies: Crest Nicholson

09 Apr 19

UK Housebuilding Sector in 1Q 2019

Y2K is a numeronym and was the common abbreviation for the year 2000 software problem; and, for the benefit of millennial readers, the abbreviation combines the letter ‘Y’ for year and ‘K’ for the SI unit prefix kilo, meaning 1000. Hence, 2K signifies 2000.

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

17 May 19

AGM signals good trading momentum across the business

The company has today released a positive AGM update, signalling a good start to the year and further progress against strategic objectives. There is also favourable commentary around the recent Dudson transaction. In short, the general reassurance offered this morning reinforces the fact that Churchill has a different market and strategic positioning vs peer Portmeirion, which recently warned. Given it is difficult to second guess to what extent the strong start to the year reflects an element of stockpiling ahead of Brexit and the fact that c.2/3rd of profits are generated in H2, we hold off adjusting our forecasts at this stage. To reflect the Group’s growth and balance sheet attractions, the shares have re-rated by a significant 8 P/E points since the start of the year to an FY19 P/E of 21.6x falling to 19.6x for FY20. Short-term they look up with events on quality and growth considerations but on a 12m view we see upside towards 1800p (22.5x FY20 P/E). Fundamentally we see Churchill China as a highly attractive growth story in a sector with positive secular drivers. We expect the focus on hospitality tableware with an added value and international dimension to continue serving the Group well.

Companies: Churchill China

29 Apr 19

Good reasons for optimism

UPGS’s half-year results included a 47.3% rise in underlying pre-tax profits, bolstered significantly by a 21% normalised increase in sales revenue. An optimistic tone on H2 sales prompts us to raise our full year forecasts and that has positive implications for both the group’s financial strength and valuation.

Companies: Up Global Sourcing

24 Nov 16

Chill for agents, spring in housing volumes

Yesterday’s Autumn Statement appears to be: good for 'alternative' housing providers, UK-focused contractors and materials producers; potentially problematic for mainstream housebuilders; and bad news especially for lettings-dominated agents. Chancellor Philip Hammond’s key spending measures included an additional £3.7bn funding to boost new housing volumes and £1.1bn for roads. Shares in estate agents, however, have fallen in response to the threat to ban them from charging fees to tenants.

Companies: GFRD KIE FORT CWD FOXT WINK COST

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 FDL FCRM FUTR GTLY INS GLE NICL SDL SPR TRI

31 Jan 19

Quarterly Research Outlook

The market has not faced quite so many conflicting challenges for a number of years, whether related to global geopolitics, trade wars, ongoing Eurozone issues or the “will they, won’t they” saga of Brexit. In our Best Ideas, we sought to highlight stocks that present investors with interesting opportunities following recent market moves. Those stocks, we believe, warrant investor attention, in many cases for uncorrelated or stockspecific reasons, regardless of the near-to-medium term market direction. These stocks, in general, represent attractive and well-managed businesses or assets, with share price catalysts and where valuations or recent stock performance provide investors with a good entry point.

Companies: 7DIG ABBY AMS ANX ARS ATYM AVON BLVN PIER CGS CAML CALL CSRT TIDE DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KEYS KCT KGH LAM MACF MOD MKLW OXIG PCA PARK PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TWD TRAK TRI VNET VTC ZTF

26 Mar 19

LIBERUM: Crest Nicholson* - New CEO and trading on track

Crest Nicholson is the most shorted of the UK housebuilders, but we expect a reconsideration on news that trading remains resilient, with estimates unchanged, and that the Board has recruited Peter Truscott (from Galliford Try) as new CEO. He is an extremely experienced housebuilder and should prove instrumental in delivering Crest Nicholson’s aim to deliver operational efficiencies and diversify exposures by selling price and tenure and deliver.

Companies: Crest Nicholson

29 Jan 19

LIBERUM: Crest Nicholson* - New strategy taking shape

Crest Nicholson’s results were broadly as expected, with PBT down 15% to £176m, mainly due to margin pressure as markets in London and the Home Counties saw limited selling price inflation and 3% build cost rises. Looking forward, the outlook remains challenging, and we do not expect Crest Nicholson to pursue completions at any cost, so we cut our estimates by 7-11% across the forecast period.

Companies: Crest Nicholson

01 Apr 19

LIBERUM: MJ Gleeson* - Potential sale of Strategic Land

MJ Gleeson has this morning announced that it has appointed Lazard to help review its options for its Strategic Land division. This division is expected to make around 29% of Group profit and we value it at £130m in our sum of the parts.

Companies: MJ Gleeson

15 Apr 19

Wrapping Up a Strong Year

By leveraging its innovation and efficiency in manufacturing and sourcing, maintaining strong customer relationships, successfully integrating acquisitions and continuing strong financial management, Design Group is expecting to deliver 9.8% organic sales growth with a 37% annual increase in sales. Margin expansion is expected to continue and impressive cash conversion has driven average gearing below 1.3x EBITDA.

Companies: IG Design Group

18 Apr 18

Telford Homes - Trading Update

05 Mar 19

Telford Homes - Long term strategic build to rent partners selected

13 Jul 16

Watkin Jones at Mello 13.7.16

05 Feb 19

Consumer Staples: Our Best Ideas We expect sector rotation into defensives: Buy ABI, Imperial, Reckitt

Premium

10 Oct 18

Telford Homes - Trading Update

29 Nov 17

Telford Homes - Interim Results 2017

29 Jun 16

IG Design Group (IGR) Preliminiary results March 2016

28 Nov 17

IG Design Group (IGR) H1 results November 2017

30 May 18

Telford Homes - Full Year Results

11 Oct 17

Telford Homes - Trading update

18 Apr 18

IG Design Group (IGR) Investor presentation April 2018

05 Jun 17

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

04 Jul 17

Executive interview - IG Design Group

05 Apr 17

Telford Homes - Trading update

31 May 17

Telford Homes - Final Results

Latest Content

Churchill China

AGM signals good trading momentum across the business

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17 May 19
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SHED ACT SCHO ABM FFI PPIX AGM OSI CHH HUNT

Small Cap Feast

Essensys plc—a provider of mission-critical SaaS platforms and on-demand cloud services to the high growth flexible workspace industry, plans to join AIM. Offer TBC, expected 29 May 2019. Induction Healthcare Group plc—a healthcare technology company focused on streamlining the delivery of care by Healthcare Professionals looking to join AIM. Expected raise of £14.58m at 115p, market cap of £34.07m. Expected 22 May 2019. SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

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17 May 19
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Crest Nicholson

LIBERUM: Crest Nicholson* - Resilient trading

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15 May 19
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Reckitt Benckiser

Weak Q1, in line with expectations

Reckitt Benckiser’s Q1 19 revenue missed the street’s estimates but was in line with our expectations. Revenue was up by 1% on a lfl basis – driven by strong growth in IFCN/baby food and HygieneHome, which was partly offset by weakness in OTC. Management reiterated its FY 19 guidance (3-4% lfl growth and operating margin – of 26.7% – similar to FY 18). Given the in line numbers, we do not expect any major change in our estimates or recommendation.

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07 May 19
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DIS RAI EMR BEG JLH DCTA KMK THR ITM RENX

Small Cap Feast

SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019. Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019

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07 May 19
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Up Global Sourcing

Good reasons for optimism

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29 Apr 19
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Electrolux

Europe and the Professional Products, best performers

Q1 19 was correct considering the persistence of a challenging environment worldwide. Organic sales grew by 1.9% thanks to all divisions except for North America which is still impacted by lower volumes of products under private label. Nevertheless, there were only two divisions that performed well and limit the erosion of the group’s operating margin (excluding restructuring costs), Europe and the Professional Products for which Electrolux planned a separation.

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26 Apr 19
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Societe B I C

Disappointing Q1 due to stationery and lighters

Bic posted disappointing Q1 19 numbers with sales and profits missing street expectations. Stationery (in India) and lighters (in the US) were the main drags with segmental organic growth and margins slipping to multi-year lows. However, shavers reported a second consecutive quarter of robust growth, driven by the US, which was a surprise. As the trading environment is likely to remain challenging and comps are getting tougher, we trim our estimates on the stock.

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26 Apr 19
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SEB

Boosted by Supor and the Professional segment

Seb had a buoyant Q1 19 with organic sales growth of +8.5% (vs +7.4% in Q1 18). Organic growth was driven by the Professional business (+24.4%) which benefited from the delivery of big deals in China and the US and Supor in China in the Consumer market (+13.4%). Other EMEA countries were dynamic thanks to a higher number of loyalty programmes and the organic trend was positive in North America thanks to good developments in cookware in the US.

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26 Apr 19
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BXP MTL SYS DNL IXI PTR BIOM STX RTC TRAF

Small Cap Feast

Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer to raise £61.6m at 200p with market cap of £185m, expected 29 April 2019. SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019.

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