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.

19 Oct 20

H1 to deliver ahead of expectations…. ….but full year outlook coloured with Covid caution

IG Design Group’s H1 trading update for the six month period to 30 September has delivered both top and bottom line performance ahead of management expectations, driven by a strong recovery in Q2. Group revenues rose by 40% including the CSS acquisition. Excluding CSS, sales were just 8.3% down, having been down 11.7% on an LFL basis in Q1. Customer orders now exceed 80% of full year revenue forecasts. This robust sales performance has been accompanied by significant deleverage with period end net debt of $23.2m, compared with $106.1m last year. CSS is now fully integrated and focussed on delivering sales opportunities, with cost synergies ahead of schedule. While H1 performance suggests forecast risk is weighted to the upside, management prudently highlights caution on the FY21E outturn given the continuing Covid backdrop and associated risks, hence our unchanged forecasts at this stage.

Companies: IG Design Group plc

22 Oct 20

Reassuring emerging markets acceleration

Q3 figures beat expectations with a strong volume/mix and a significant acceleration in emerging markets. Even so, no return to FY20 guidance.

Companies: Unilever PLC

22 Oct 20

Q3 20: no sign of stockpiling headwinds…

Reckitt reported stronger than expected Q3 20 revenue growth of 13.3%, on an lfl basis, to £3.5bn, driven by strong growth in Health (+12.6%) and Hygiene (+19.5%). Factoring in FX headwinds of 6.4pp, reported growth came in at 6.9%. Management upgraded FY20 top-line growth expectations to low double-digit (vs high single-digit earlier) while keeping EBITDA guidance unchanged (350bp margin contraction vs FY 19). Following the strong Q3 performance, we will raise our estimates as well as the target price.

Companies: RBN RB/ RB 3RB RBGPF

08 Jan 20

UK Housebuilding Sector: 2020 vision: Sharpness and clarity for industry prospects

For fighter pilots, it is a minimum requirement. But having 20/20 ‘visual acuity’ (correct term) does not necessarily mean you have perfect vision (as convention assumes); instead, it indicates sharpness and clarity of vision at a distance. It is measured by a Snellen Chart, which displays letters of progressively smaller size and whereby 20/20 means that the test subject sees the same line of letters at 20 feet that a person with normal vision sees at 20 feet (or 6 metres; but 6/6 simply didn’t catch on).

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

21 Apr 20

First quarter of 2020

The covid-19 pandemic has had a devastating effect on the share price of property companies, with 31% wiped off the value of their total market capitalisation during the first quarter of 2020.

Companies: AEWU CREI CSH BOOT INL HLCL THRL SUPR RESI RGL DIGS GR1T SOHO PHP EBOX ASLI UTG AGR UAI BLND UANC CAL SHED CWD WHR EPIC WKP GRI YEW HMSO PCA CCRGF NRR

12 Aug 20

Walker Greenbank - Cautious optimism entering H2

Walker Greenbank’s FY20 results date has been reset to 30 June (and complies with updated FCA policy guidance). Its latest update provides no new financial information though orders continue to be received despite lockdown conditions. Operational steps already taken appear to be appropriate, retaining sufficient infrastructure to service prevailing sales demand levels while additional actions aimed at preserving business liquidity are referenced, consistent with those seen elsewhere in the quoted sector. Taken together, the company appears to have quickly adjusted its business model to meet current market challenges in FY21.

Companies: Walker Greenbank PLC

02 Sep 20

Accrol Group Holdings PLC (ACRL LN) - Growth platform

Accrol has announced audited Final Results for the year ended 30 April 2020, which show strong progress on a YOY basis and are ahead of our headline forecasts. An impressive recovery has now been delivered. Management has clear ambitions to build on this established platform and transform the Group into a larger household and personal hygiene products business with any expansion plans having “a clear focus on earnings enhancement and the continued improvement of shareholder value”. Despite the strong share price performance to date, we believe there is more to come from both the core business and potential EPS enhancing M&A activity.

Companies: Accrol Group Holdings plc

08 Sep 20

Cenkos: RA International Group Plc -- Interim results update

RA has announced interim results well ahead of H1/19, with H1/20 revenue up 53.5% and underlying operating profit up 118.8% versus the same period last year, despite the impact of COVID-19 causing delays to various (particularly Construction related) projects and highlighting RA's ability to consistently deliver under very challenging conditions. RA has now established firm contract award momentum with US$86m of cumulative new business awarded since FY19. Including the recently announced agreement (20 August 2020) with Danakali JV, Colluli Mining, where RA has been appointed preferred supplier, would add a further US$20m once finalised and bring the total to a value representing 153.4% of FY19A revenue. Despite the inevitable COVID-19 interruption during FY20, RA has demonstrated its ability to continue to expand its business substantially, further diversifying revenue by both geography and customer base. We expect to see further contract wins coming through during H2/20 and with all major delayed projects now recommenced and building towards normalised operational activity, the outlook into FY21 is strong.

Companies: RA International Group Plc

28 Sep 20

New team lays out its stall for growth + value creation

Although CV19 rounded off a disappointing year, BAR was just profitable in FY20 and ended the period with £21m cash. After a challenging transition post the disposal of manufacturing, a new and experienced leadership team is now in place which has laid out clear future growth plans. Through a combination of organic growth, brand focus, productivity gains and selective acquisitions, BAR aims to grow sales to £50m over the medium term. The business model is inherently high margin and cash generative and, if these characteristics are borne out, future value could increase several fold compared to today’s £20m.

Companies: Brand Architekts Group plc

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

01 Apr 20

A seismic shift in the way we live and work

The Coronavirus pandemic is a human tragedy of vast proportions – as well as the terrible human toll, COVID-19 has led to economies across the globe going into physical lockdown and financial freefall. Entire populations are adapting to the “stay at home” edict, to safeguard the vulnerable – and some of these changes will lead to long-lasting or perhaps permanent changes in the way we live or work. This note describes some of our client companies whose business models are well adapted to these changes, or who might see a change in long-term structural demand.

Companies: AMO BGO FDM GAMA KAPE LOOP TERN ZOO

07 Apr 20

The Promised Land

Red Dwarf, the very British sci-fi comedy franchise, ran for 11 seasons – most recently in 2017; and The Promised Land is a feature-length TV movie – out this year. Yes, the programme is an acquired taste. Strangely, too, many episodes are impacted by a virus or three (physiological, not main-frame).

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

28 Jul 20

A strong FY20 despite Covid-19…. ……and increasingly optimistic on the future

IG Design Group has delivered another year of strong revenue growth (+10%), together with the transformational acquisition of the US company CSS. Adjusted profit before tax and diluted EPS were slightly down year-onyear but would have been ahead and in line with market expectations, adding back the adverse impact of Covid-19. A final dividend of 5.75p sees the full year figure up 3%. While the group has made a commendably strong start against its Covid-19 adjusted forecasts, the full year outturn for FY21E (and our view of a bounce back in FY22E) will nonetheless be adversely impacted by the ongoing changes brought about by Covid-19.

Companies: IG Design Group plc

11 Aug 20

WHI First Light: Walker Greenbank (WGB) - H1 update points to a continued improvement in trading

Walker Greenbank is a higher-end interior furnishings business with well-established global brand names and manufacturing facilities in the UK. The Group has this morning released an H1 update, which less than two weeks on from the AGM statement, again illustrates the continued improvement in trading across the group.

Companies: Walker Greenbank PLC

14 Sep 20

Rebuilding momentum, strong start to FY21

Gleeson’s FY20 outturn was in line with expectations (forecasts reintroduced in July), reflecting the impact of the COVID lockdown on the fourth quarter. FY21 began with a record order book and demand remains strong, reflecting the quality and affordability of Gleeson’s homes. The 2,000 home target has been reiterated for FY22 and, for Strategic Land, there are signs that housebuilders are returning to the market. Gleeson has a unique offering and, in our view, is well positioned to meet its medium term targets and to deliver substantial growth thereafter.

Companies: MJ Gleeson PLC

18 Apr 18

Telford Homes - Trading Update

08 Sep 20

Accrol Group Holdings ‘a very strong strategic position’ (Analyst Interview)

Premium

28 Nov 17

IG Design Group (IGR) H1 results November 2017

03 Sep 20

Creightons (CRL) FY20 results presentation

22 Jan 20

Full year results interview with CEO Richard Simpson

13 Jul 20

InnovaDerma reports strong cash and 'resilient performance' during pandemic

20 Nov 19

InnovaDerma PLC launches limited edition chocolate range of Skinny Tan products

11 Jun 20

Morning Report: FTSE 100 under pressure as Centrica says it's to cut 5,000 jobs

27 Jun 17

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

09 Jun 20

Morning Report: FTSE 100 slides despite surge in US markets

22 Mar 19

Henry Boot - 2018 Final Results

23 Apr 20

Morning Report: FTSE 100 opens down as Unilever's first quarter disappoints

16 Oct 20

Galliford Try Holdings' present strategy to Proactive Investors

25 Mar 20

Morning Report: FTSE 100 opens higher again on reports of US$2trn US stimulus bill

02 Sep 20

Market report: FTSE bounces back along with UK housing market

Latest Content

Reassuring emerging markets acceleration

Q3 figures beat expectations with a strong volume/mix and a significant acceleration in emerging markets. Even so, no return to FY20 guidance.

Unilever PLC

22 Oct 20
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Q3 20: no sign of stockpiling headwinds…

RBN RB/ RB 3RB RBGPF

22 Oct 20
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A record Q3 20 and a reorganisation implemented

Husqvarna had a record Q3 20 with organic sales growth of 22% driven by the Husqvarna (+27%) and Gardena (+26%) divisions. The group benefited from the stay-at-home trend related to the COVID-19 pandemic and the good weather in various geographies. The positive impact was significant on the operating margin (10.4% of sales, +5.5pts) so that the rolling 12m operating margin (10.3% of sales, +1pt yoy) exceeded the medium-term target. The group implemented a reorganisation to increase efficiency.

HUSQB HUSQB HRZ HUSQF

20 Oct 20
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H1 to deliver ahead of expectations…. ….but full year outlook coloured with Covid caution

IG Design Group plc

19 Oct 20
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Galliford Try Holdings' present strategy to Proactive Investors

Galliford Try

16 Oct 20

FY guidance re-instated

Henkel now seems to have some better visibility, which has allowed it to re-instate a FY 2020 guidance. Organic sales growth is above current street expectations, while the EBIT margin is more or less at the mid-point to the provided bandwidth. The new guidance indicates some moderate improvement qoq. We expect the guidance will be challenged as the normal flu season approaches the Northern Hemisphere and new COVID-19 cases are rising fast.

Henkel AG & Co. KGaA

09 Oct 20
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Allenby Capital TMT Update - 05.10.20 - MIRA.L, OSI.L, CNS.L, TERN.L

Mirada plc* (MIRA.L, 72.5p/£6.5m) | Osirium Technologies plc (OSI.L 19p/£3.7m) | Corero Network Security plc (CNS.L, 11.0p/£54.7m) | Tern plc* (TERN.L, 7.7p/£23.2m)

MIRA OSI CNS TERN

05 Oct 20
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Morning Note – 30 September 2020

Altitude Group (ALT): Corp | Avingtrans (AVG): Corp | InnovaDerma (IDP): Corp | Open Orphan (ORPH): Corp | Quixant (QXT): Corp

ALT AVG IDP QXT ORPH

30 Sep 20
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InnovaDerma - FY 2020 finals – growth drivers beyond COVID

Full-year results were in line with the 10 July trading update at the revenue line and reflected the impact of COVID lockdowns to brick-and-mortar channel sales as well as the pressure on margins to remain competitive as new entrants entered the online market. Revenues rose 3% to £13.3m, with a pre-tax loss of £0.4m, adjusted LPS of 2.0p and year-end cash of £1.24m. With FY 2021 to benefit from a full year contribution from Nuthing and new line extensions to be launched across the skincare portfolio, the outlook post-COVID remains positive. We’ll leave our forecasts and target price under review until we have greater visibility over any recovery in retail channel sales and online promotional costs, but there is scope for optimism, evidenced by the 3% growth in the business, which compares with a strong H1 FY 2020 (+33%).

InnovaDerma PLC

30 Sep 20
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Sticking to a cautious H2 scenario

Quadient released mixed H1 results, with sales being dragged by the weak performance of the mail legacy business, in spite of the resilience shown by the Parcel Locker and Business Process Automation divisions. While profitability also suffered, cash generation was surprisingly sturdy, led by diligent cost cutting and favourable working capital movements. Given the increased visibility, the announced FY20 guidance stands only slightly above our current conservative estimates, leaving room for Quadient to over-deliver in H2.

Quadient SA