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

14 Jan 19

UK Housebuilding Sector in 2018

‘From the deserts of East Ham to the gardens of Cottenham’, the UK Housebuilding Sector was whacked to the tune of 27% in 2018; and not one share price (out of 18) rose on the London Stock Exchange.

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

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

21 Jan 19

LIBERUM: The 4S’s - The negative working capital model in Construction is changing

Four measures are being considered to protect the supply chains in the wake of the Carillion collapse, a year or so ago; 1) Project Bank Accounts, 2) The Prompt Payment Code; 3) Retentions Reform; and 4) Assigning non-executives for the supply chain. (Read here). This means that in most cases, Costain is an exception, working capital will become less negative, which has a negative impact on cash flows, while Construction companies grow.

Companies: AA/ BAB BBY CPI COST GFRD HSV IRV KLR KIE MER MTO MGNS PAY RPS SRP STAF

15 Jan 19

‘The Mozart’ of the property world'

Buying the best rarely comes cheap - albeit occasionally, the market offers up quality stocks at compelling prices. Enter Watkin Jones, a UK developer & manager of large, multi-occupancy accommodation - mostly student bedrooms (PBSA) and/or apartments for young professionals (BTR) – trading on a modest 13.2x FY19 PER and paying an inflation busting 3.8% yield.

Companies: Watkin Jones

27 Nov 18

Cenkos: IG Design Group Plc - Exceeding Strong Expectations

IG Design has released its FY19E interims results, which demonstrates a stellar performance ahead of expectations. Revenue grew 23% YoY to £205.2m, benefitting from both organic growth and the Impact acquisition in the US (c£33.0m contribution). Underlying profits increased 71% YoY to £19.0m with margins expanding due to product mix, increased scale and operational efficiencies. We upgrade our FY19E EPS by 4% to 27.0p. The stock trades on a blended CY19E forward EV/Adj EBITDA of 9.5x, which we assess offer investors considerable value for this high-quality compounding business. Buy.

Companies: IG Design Group

23 Oct 18

Quarterly Research Outlook

The June IPO of Knights Group Holdings, a Top-100 regional law firm, marked the fifth entrant to the burgeoning UK-listed legal sector. Following recent expansion of our coverage across all five listed legal firms, complemented by coverage of three broader support services peers with exposure to the sector, we revisit and build upon our views on this rapidly evolving sector.

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

02 Nov 16

Timing is Everything

Cairn Homes’ timing since its IPO in 2015 has been exemplary. It has deployed the c. €670.0m funds raised in building one of the largest land banks in the Greater Dublin Area at prices consistent with strong prospective margins. Having completed its capital deployment phase, it now embarks on a significant build programme. This coincides with the launch of the Irish Government’s Help to Buy scheme. Like the UK counterpart, we expect this to be of significant benefit to new home builders. As such, this launch reinforces our confidence in Cairn’s medium term prospects and prompts a 10.3% increase in our target price.

Companies: Cairn Homes

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

04 Jan 18

2017 Reviewed and 2018 Selection

Remarkably, in spite of Interserve (-71%), my 2017 Bulls on average comfortably beat both my Bears and the All-Share. My 2018 segmental Bulls are: Bovis, Breedon and Mears. My 2018 Bears are: Berkeley, SIG and Morgan Sindall.

Companies: BREE BVS MER BKG MGNS SHI

16 Jan 18

Q3 Trading Update

IG Design Group plc (“DG”) has released a Q3/18 update indicating that both gross and adj EBITDA margins are ahead of expectations – we upgrade 2018/19E adj DEPS accordingly. A continuation of the strong performance reported H1/18A, all core geographies remain on track to achieve strong YoY revenue and adj PBT growth, with DG having traded well throughout the Christmas period. The inherent growth potential of the Group’s geographically diverse market positioning (both organic and M&A-led) continues to be underscored by a strong balance sheet. DG’s commitment to a progressive dividend policy (5.5p, 2018E) provides investors with an increasingly attractive combination of growth and income. The recent softening in the share price offers an ideal entry point. BUY.

Companies: IG Design Group

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

27 Nov 18

Interim Results

Design Group have announced Interim Results for H1 FY2019E. There was strong growth in both revenues (23%) and underlying operating profit (71%), driven by organic sales growth, the contribution from the newly acquired Impact Innovations in the US and margin expansion across all geographic segments. Net debt of £100m was in line with expectations and average gearing of 1.3x adjusted EBITDA continued to be comfortably below targets. Management have indicated that this strong progress will continue into H2 so we increase our EPS forecast from 25.9p to 27p for FY2019E and retain our forecast of 31.5p for FY2020E.

Companies: IG Design Group

07 Jan 19

LIBERUM: MJ Gleeson* - 16% unit growth and no sign of customer caution

MJ Gleeson's trading update is positive. Homes completed the sale of 691 units, up 16.5% on last year, driven by continued strong demand.

Companies: MJ Gleeson

08 Jan 19

Trading update

Accrol has issued a trading update this morning, confirming that external macro-economic factors have continued to adversely impact the business. Whilst the company continues to make operational progress, the continued weakening of Sterling against USD since September 2018 and increasing tissue prices have impacted profitability considerably. We update our forecasts to reflect these additional costs and note the new outlook for adj. EBITDA for 2019E falls within existing banking covenants.

Companies: Accrol Group

18 Apr 18

Telford Homes - Trading Update

18 Apr 18

IG Design Group (IGR) Investor presentation April 2018

05 Apr 17

Telford Homes - Trading update

29 Nov 17

Telford Homes - Interim Results 2017

28 Nov 18

Telford Homes - Interim Results 2018

28 Nov 17

IG Design Group (IGR) H1 results November 2017

10 Oct 18

Telford Homes - Trading Update

11 Oct 17

Telford Homes - Trading update

11 Jun 18

IG Design Group (IGR) Full year results 2018

04 Jul 17

Executive interview - IG Design Group

01 Jun 16

Telford Homes - Final Results

05 Jun 17

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

30 Nov 18

Design Group (IGR) H1 results November 2018

29 Mar 17

Telford Homes Plc - Fourth Build to Rent sale for £53.7m

30 May 18

Telford Homes - Full Year Results

Latest Content

AA/ BAB BBY CPI COST GFRD HSV IRV KLR KIE MER MTO MGNS PAY RPS SRP STAF

LIBERUM: The 4S’s - The negative working capital model in Construction is changing

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21 Jan 19
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Watkin Jones

‘The Mozart’ of the property world'

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15 Jan 19
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BCA CLIN CLG CBP DNLM EAH FDL FCRM FUTR GTLY INS GLE NICL SDL SPR TRI

Opportunity knocks

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14 Jan 19
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BWY CRST BDEV WJG PSN RDW TW/ MCS CSP TEF BKG ABBY GLE

UK Housebuilding Sector in 2018

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14 Jan 19
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SLPUBIMPACNXTALTKWSFDEVAFXCDMGMDGLESPEGFINGTLYBURATVIEAMSFTTTWO

SEB

Acquisition in the US, in professional coffee equipment

The acquisition of the US company Wilbur Curtis (sales above $90m) is a positive operation for Seb. It reinforces the group’s positions in the professional coffee machines market and increases the size in the US where Seb is small. Considering the size of the deal, the integration of Wilbur Curtis should have a moderate positive effect on EPS.

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09 Jan 19
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Accrol Group

Trading update

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08 Jan 19
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Up Global Sourcing

Sustaining strong growth momentum

UPGS’s positive trading update, released yesterday, prompts us to raise our key estimates by more than 10% for all of revenue, EBITDA and adjusted EPS. Importantly, the company distinguishes itself from the more troubled UK consumer facing businesses with 24% potential sales growth in FY2019. Despite yesterday’s significant share price increase, valuation remains attractive in our view, which leaves headroom for further gains given current momentum.

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08 Jan 19
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MJ Gleeson

LIBERUM: MJ Gleeson* - 16% unit growth and no sign of customer caution

MJ Gleeson's trading update is positive. Homes completed the sale of 691 units, up 16.5% on last year, driven by continued strong demand.

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07 Jan 19
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Churchill China

Strong H2 outcome prompts upgrades

A short and sweet but positive YE trading update from Churchill China this morning. The strong double-digit export sales momentum of H1 continued into H2 and UK performed in line with expectation of positive sales growth in H2. Net, management is guiding to a full year outcome ahead of market expectations. We upgrade our FY18 PBT by a meaningful 7% and outer years by 3%. Going into FY19 the business is geographically well diversified and investing appropriately to support further progress. An FY19 P/E of only 13.5x (11.3x ex-cash) is wholly inappropriate for a quality stock like Churchill China in our view. We argue for fair value towards 1135p and remain positive.

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