Industrial Equipment, Goods & Services

Industrial Equipment, Goods & Services equity research

Explore the latest equity research for companies who manufacture industrial equipment, goods, or related services. Sectors include Defense & Aerospace, Electrical & Electronic Equipment, Transport & Logistics, Industrial & Construction Supplies, and Waste Services.

Industrial Goods & Services

Explore the latest equity research for companies who manufacture industrial goods, or related services. Sectors include Defense & Aerospace, Electrical Equipment, Transport & Logistics, Industrial & Construction Supplies, and Waste Services.

17 Oct 17

Nudge, nudge, Nobel prize for a small cap fan!

Further evidence that the shrewder investor prefers a smaller company, the Nobel Prize in Economics was awarded to Professor Thaler, an avowed fan of the smaller brethren. Back down to earth, all markets continue to make headway, with the smaller company indices continuing to lead the way. Despite the apparent deadlock in the Brexit process, life appears to carry on. The MPC meeting on 2 November and the Budget on 22 November may offer greater insight. In Share News & Views, we comment on recent updates from Cropper*, Halstead, Norcros, Tricorn* Walker Greenbank and Wincanton.

Companies: APC BMS CRPR ECSC EUSP FDM GETB PCF PPIX SNX SPRP SQS TCN W7L

18 Oct 17

N+1 Singer - Uncovered Gems - Speed Dating Lunch - Four more gems revealed

In our fifth lunch in this popular format, we were pleased to welcome last Friday the management teams of Creightons, Fishing Republic, Lighthouse Group and Symphony Environmental – four companies we deem to be less well-known than they deserve. Each company gave a ten minute overview of its business and the investment case and we had quick-fire Q&A from a group of fund managers. Below we summarise our thoughts on each company, with more details inside, plus we include the slides presented by each management team. All four companies have very interesting potential and we are happy to arrange further contact.

Companies: FISH LGT SYM

19 Oct 17

N+1 Singer - Zytronic - Trading in line

A brief update reports that trading has been in line with expectations and we therefore retain our FY17 forecasts which show good growth over FY16. We look forward to more details with the final results in December.

Companies: Zytronic

05 Oct 17

Conviction List Q4 2017

Since its inception in 2010, the Panmure Gordon Conviction List has outperformed the market, returning 278% against a Small Companies index that would have returned 232% over the same period. Our Q4 portfolio reflects our view that the UK equity market stands to benefit from a coordinated upturn in global growth. Low nominal fixed income spreads continue to provide a valuation underpin for global equities. There are increasing signs that the world’s central bankers are making a concerted effort to wean markets off near zero interest rates. However with global debt exceeding 200% of GDP and unfavorable demographic trends, we think their chances of rapid progress are slim.

Companies: CPI CTH CINE JE MJW NOG RPC VM/ XAR

23 Oct 17

N+1 Singer - Dialight - Production issues at Sanmina

Dialight has warned that due to production challenges transferring manufacturing to its outsourcing partner Sanmina, it now expects group underlying EBIT for the year to December 2017 in the range £13.5-15.5million. This is some 21% below us and consensus. Their outsourcing manufacturing partner has had difficulties with on time delivery against orders amid non availability of components. Given the largest single volume product range (high bay) has just moved across, there is a significant loss of visibility for the short term. We expect to reduce our estimates accordingly. This should be relatively temporary, but there are clearly issues in the transfer of manufacturing to Sanmina.

Companies: Dialight

17 Oct 17

Q3 Trading Update

Today’s Q3 trading update details a continuing strong performance for the nine months ended 30 September 2017, with trading since the last market update (interim results 12th September) described as solid. Group revenue of £54.5m is up 34.4% YoY, with growth across all three operating divisions boosted by contribution from new subsidiaries. Of particular note is impressive Q3 organic growth of 12.4%, reflecting soft prior year comparatives following the June Brexit vote, as well as contribution from price increases and strong volume gains. This growth has been achieved at stable gross margins, reflecting the benefit of the Group’s multi-channel proposition. Trading for the full year remains in line with market expectations. On FY17 forecasts the Group trades on a PER of 12.1x, a discount of 40% versus its UK peer Group, offering a prospective dividend yield of 3.4%.

Companies: Flowtech Fluidpower

26 Sep 17

Support Group

Since our first quarterly at the end of 2015, 12 of the 59 companies we included in our valuation tables have been bid for. Given those tables were simply designed to show the range of companies present within the sector, not a hit-list of undervalued opportunities, the fact that 20% of them have been taken over is worth looking at in more detail. At a time when warnings and share price collapses from the likes of Interserve, Carillion, MITIE, DX and Capita and Serco have dominated newsflow, it should be remembered that the sector is broad and highly varied both in terms of business model and performance. If the troubles of a minority of the sector drag down wider valuations then the evidence is that there is an army of potential bidders (reinforced by the weakness of sterling) ready to take advantage.

Companies: FOUR ACL BOOT CLL CMS CNCT FCRM LOK PPH RNWH SVCA STAF UTW WATR VANL WYG

11 Oct 17

Trading update and Board changes

Trading since 1H’17 remains in line. Board changes sees Mark Dickinson take over as CEO.

Companies: Inspired Energy

18 Oct 17

Sustained uptick in orders drives upgrades

Acal’s H118 trading update confirms that strong demand continued into Q218. Both divisions saw a positive trading environment in H1 resulting in group organic revenue growth of 9% y-o-y and group reported revenue growth of 21%. We have raised our revenue forecasts for FY18 and FY19 to reflect stronger trading, which results in upgrades to our normalised EPS forecasts of 3.8% in FY18 and 3.7% in FY19. In our view, the sustained improvement in demand is not reflected in the share price.

Companies: Acal

28 Apr 16

Small caps win dividend race

Dividend income typically comprises a substantial proportion of the total long-term return from equities. This will especially be the case at a time of low interest rates and low inflation/growth. A segmental analysis for 2013- 2016 shows that the further you go down the market-cap scale the more robust dividend growth, especially in the coming year. While there is the potential for short-term performance from “renting” some of the high yielders in the FTSE 100, overall there is better value to be had from a portfolio of good-quality smaller growth companies, some of which are also capable of delivering special dividends.

Companies: BOTB BMS FDM HAT MCGN PMP QRT SCS STAF SNX TRI

23 Oct 17

Markets in H1 challenging. Stronger H2 expected

Interims reflect continued challenging markets. Revenues fell 5% to £66.6m (£70.2m) and underlying PBT amounted to £2.1m (£2.7m). Shipbroking delivered a resilient performance, Technical has reduced losses and Logistics reported a lower profit. The group anticipates a stronger H2 performance, benefitting from seasonal factors in Shipbroking, a recovery in Technical and the initial contribution from Braemar NAVES, its new Financial division. We have maintained our FY2018E PBT of £8.4m, EPS of 22.6p and dividend of 15p

Companies: Braemar Shipping Services

02 Oct 17

The Monthly October 2017

In the October edition of the Hardman Monthly newsletter, Chief Executive, Keith Hiscock analyses the much misunderstood – but highly important – issue of stock liquidity. In particular, he focuses on the lower echelons of the Main Market and of AIM.

Companies: OPM ABZA AVO AGY APH ARBB AVCT BUR CMH CLIG COS DNL EVG GTLY MCL MUR NSF OBT ODX OXB NIPT PHP PURP RE/ RGD SCLP SPH SCE TRX VAL

23 Oct 17

Good organic sales growth

Q3 17 was in line with expectations, including satisfactory organic sales growth (+5% vs +3% in Q2 17, +4% in Q1 17). Q3 17 figures Sales reached SEK22,651m (+2%). Organic growth was satisfactory at +5% (vs +7% in Q3 16 including the strong activity related to the refugees in Europe). Organic sales growth was driven by Security services North America (+6% vs +6% in Q3 16) and Ibero-America (+13% vs +14% in Q3 16). The performance was weaker in Security services Europe (+2% vs +5% in Q3 16). The operating income before amortisation was flat at SEK1,230m, reflecting a higher contribution from Security services North America (+4% to SEK574m) and Security services Ibero-America (+4% to SEK122m) and a lower contribution from Security services Europe (-4% to SEK609m). The group’s operating margin declined slightly to 5.4% of sales (-0.1pt). Group net profit was SEK780m (+7%) after lower amortisation of acquisition-related intangible assets (-11% to SEK-59m) and acquisition-related costs (SEK-7m vs SEK-26m in Q3 16). In addition, the financial net expenses decreased by 15% to SEK-86m and the income tax rate was lower at 27.8% (-2.2pts) corresponding to the level for the FY2017. 9 months figures Based on sales of SEK68,173m (+6%, +4% organically), the operating income before amortisation was up to SEK3,413m (+3%) corresponding to a margin rate of 5% of sales (-0.1pt). Group net profit was SEK2,093m (+8%) after lower amortisation of acquisition-related intangible assets (-9% to SEK-183m) and acquisition-related costs (SEK-20m vs SEK-66m in 9 months 2016), rather stable financial expenses (SEK-282m) and a lower income tax rate (-1.3pts to 28.7%). FCF was down 9% to SEK783m after an increase in income tax paid. The investments in shares amounted to SEK285m (vs SEK3,461m in 9 months 2016 due to the acquisition of the Diebold electronic security activities). On 30 September 2017, net debt was SEK13,606m, representing 96% of shareholders’ equity.

Companies: Securitas

24 Oct 17

N+1 Singer - Dialight - Outsourced manufacture hits the ramp

We have consistently backed the quality of Dialight’s products and the turn-round strategy set out by management. While the product re-engineering along platform/modular lines appears to have gone well, the final stage of outsourcing to a manufacturing partner is proving more difficult, resulting in a loss of visibility of the growth and margin trajectory. Our forward estimates have been reduced by c.40% at the PBT and EPS levels resulting in the shares trading on a 2018 EV/EBITDA of 9.5x, a marginal discount to our estimate for the subsector. Given the loss of visibility it’s difficult to see the shares regain a premium rating until there is evidence of production getting back on track. As a result our TP falls from 1100p to 710p and given the very limited upside we reluctantly downgrade to hold.

Companies: Dialight

16 Oct 17

HCM Update 16.10.17 (HAS.L, NBB.L, PAGE.L, PRP.L, RWA.L) RM

Hays plc (HAS.L, 190p/£2.8bn) Q1 Trading Update (12.10.17) | Norman Broadbent plc (NBB.L, 11p/£4.6m) Appointment of CFO and COO (05.10.17) | PageGroup plc (PAGE.L, 477p/£1.6bn) Q3 Trading Update (11.10.17) | Prime People plc (PRP.L, 97.5p/£11.9m) Acquisition (11.10.17) | Robert Walters plc (RWA.L, 589p/£443m) Q3 Trading Update (10.10.17) | Report on Jobs September 2017 (06/10/17)

Companies: HAS NBB PAGE PRP RWA

19 May 17

Leading UK fund manager, Gervais Williams, discusses investing, his outlook and two companies he's excited about

23 Oct 17

CAP-XX (CPX) ShareSoc growth seminar October 2017

17 Oct 17

Flowtech - 2017 Q3 Trading update

20 Oct 17

Judges Scientific (JDG) H1 update at Mello October 2017

12 Sep 17

Flowtech Fluidpower - Half year results

19 Oct 17

Stobart Group (STOB) Interim results October 2017

21 Sep 17

Executive interview - Learning Technologies Group

26 Sep 17

Image Scan Holdings (IGE) presents at Mello September 2017

04 Oct 17

redT - The Olde House

20 Sep 17

Keywords Studios (KWS) H1 results presentation September 2017

03 May 17

Executive Interview - Dialight

02 Aug 17

Cohort plc - Contract Announcement

31 Aug 17

Grafton Group - Interim Results 2017

01 Aug 17

NWF (NWF) Full year results YE 31 May 2017

10 May 17

Capital Network's Helaine Kang on Judges Scientific PLC

Latest Content

Dialight Brooks Macdonald Group

N+1 Singer - Morning Song 24-10-2017

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24 Oct 17
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Dialight

N+1 Singer - Dialight - Outsourced manufacture hits the ramp

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24 Oct 17
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OPTI SHOE ALT GBG VCP

Morning Note

OptiBiotix* (OPTI): LP-LDL supply agreement (CORP) | Victoria* (VCP): Acquisition of Serra (CORP) | Shoe Zone (SHOE): Trading update (BUY) | Altitude Group* (ALT): Further enterprise partnership (CORP) | GB Group (GBG): H1 in line boosted by licence fee (BUY)

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24 Oct 17
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DIA ERGO FDP

N+1 Singer - Morning Song 23-10-2017

Dialight (DIA LN) Production issues at Sanmina | Ergomed (ERGO LN) Positive top line PeproStat™ Phase II data | First Derivatives (FDP LN) Kx selected to power AI solution for healthcare sector

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23 Oct 17
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SSY SOLI PDL AGL ODX RGD FDI TRAK

Morning Note

SCISYS* (SSY): Good heavens (CORP) | Solid State* (SOLI): Half-year update signals shift in business mix (CORP) | Petra Diamonds (PDL): Q1 trading update (BUY) | ANGLE* (AGL): New application for Parsortix harvesting cells from bone marrow (CORP) | Omega Diagnostics* (ODX): Half-year trading update (CORP) | Real Good Food* (RGD): Significant reduction in guidance (CORP) | Firestone Diamonds (FDI): Q1 trading update (U/R) | Trakm8* (TRAK): H1 is on Trak (CORP)

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23 Oct 17
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Dialight

N+1 Singer - Dialight - Production issues at Sanmina

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23 Oct 17
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Prime People

HCM Update 23.10.17 (PRP.L) RM

Prime People plc (PRP.L, 89p/£10.9m) H1 Trading Update (18.10.17)

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23 Oct 17
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Braemar Shipping Services

Markets in H1 challenging. Stronger H2 expected

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23 Oct 17
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SRB PHE TRAK ODX CNR SCHO SSY MIO VLTY

Small Cap Breakfast

Novacyt S.A.—Sch1 from the international diagnostics group, generating revenues from the sale of clinical products used in oncology, microbiology, haematology and serology testing. Offer to raise £8.8m at 59.38p with a value of £22.4m. Expected 01 Nov. Footasylum Ltd—UK-based fashion retailer focusing on the branded footwear and apparel markets announced its intention to seek admission to AIM. Expected value between £130m and £150m. Due Nov 2017. Totally (TLY) - Sch 1 for £11m RTO of Vocare, a provider of integrated urgent care services to the NHS throughout the UK. £76.8 million rev in the y/e 31 Mar 2017. Totally to address Care Quality Commission concerns. Due 24 Oct. Mkt Cap £28.7m. Central Asia Metals (CAML) -RTO of Lynx Resources. Anticipated market capitalisation at Admission: £404.8m. Raising £113m at 230p. Acquiring the SASA zinc-lead mine in Macedonia from Solway Industries. Due 15 Dec. OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. Orogen plc, to be renamed Sosandar plc on Admission. Sosander is an online womenswear brand specifically targeted at a generation of women who have graduated from younger online and high street brands, and are looking for affordable clothing with a premium, trend-led aesthetic. Offer to raise £5.3m with market cap of £16.1m, expected 2 November 2017 OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected late October .