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.

23 Sep 20

Strix Group plc (KETL LN) - Accretive acquisition and outlook improving

Strix has announced the strategic acquisition of LAICA a family owned business in Vicenza, Italy for €19.6m in a mixture of cash and shares. It will be earnings accretive in FY21 and is scheduled to complete by the end of FY20, with just Italian government approval outstanding. ZC operating profit estimates are unchanged in FY20 but increase by c. 8% in FY21 to reflect the contribution from the deal, the impact on earnings is smaller due to the issue of shares and higher tax in Italy. Management believe significant synergies, both cost and revenue, will be derived from the deal over the next 2-5 years. The interim results had been well flagged in the comprehensive trading update in late July and today’s statement confirms that profitability remains in line with the guidance of achieving a flat performance yoy in FY20. The interim dividend of 2.6p is in line with last year and in keeping with the commitment to at least meet the 7.7p paid in FY19. Unlike most peers, Strix has maintained guidance as well as its commitment to pay a dividend and today’s acquisition unpins the continuing strategy of diversifying the business into areas offering greater growth.

Companies: Strix Group Plc

24 Sep 20

Upgrades after results and strategic deal

Strix has published reassuring interims and announced the acquisition of LAICA, conditional upon approval from the Council of Ministers in Italy. Against a backdrop of global disruption caused by COVID 19, Strix’s H1 performance is in line with expectations. Net sales down 21% YoY, with a much smaller impact on net profits on the back of strong cost management. Encouragingly, FY 20 profit expectations are now underpinned, at around £28.9m PAT. Taking into account the LAICA deal, we provisionally upgrade FY 21 PAT/EPS by 6%. The shares are already up materially YTD, but the Strix growth story remains compelling.

Companies: Strix Group Plc

22 Sep 20

WHI Morning Comment: Judges Scientific (JDG) - Interim Results – Creditable and profitable H1. No changes to FY estimates

Judges Scientific is focused on acquiring and developing companies in the scientific instrument sector. Given the backdrop of H1, and the global nature of Judges' customer base, we see this morning's results as a significant achievement when set against the backdrop of significant COVID related headwinds. Revenue decreased by 6.8% (organic -12%) to £37.4m (H1-19: £40.2m) which, after the sensible management of the cost base, yielded an adjusted pre-tax profit of £6.4m (H1-19 £8.4m), a 22% reduction, and adjusted fully diluted EPS of 82.5p (H1-19: 107.0p). However, reflecting a commitment to its progressive dividend policy, and confidence in the business, the interim DPS is increased by 10% to 16.5p. With respect to H2, COVID related business risks remain, none of which are unique to Judges. However, given the relative strength of H1 (albeit at some expense to the order book), management flag ‘cautious confidence' in achieving full year market expectations. As such, our FY 2020E adjusted PBT and EPS estimates are unchanged this morning.

Companies: Judges Scientific Plc

24 Sep 20

FY 2020 results – positive outlook drives upgrades

Byotrol’s FY 2020 full-year results are inconsequential, given the dramatic and positive impact that the COVID-19 pandemic has had to product sales since the year-end. However, year-end cash was £0.1m above forecast at £1.7m and when combined with positive cashflow since year-end, Byotrol is well-resourced to finance its ongoing operations and steady growth. With the order-book remaining strong (c.£1.1m at 31 August), despite summer lull, and demand likely to persist for some time, given the emerging second wave of coronavirus, we upgrade EBITDA to reflect lower costs and higher licensing income. If, as we suspect, the demand curve has shifted sustainably to the right, this leaves room for further upgrades. Consequently, we raise our target price to 11p, at which level the stock would trade on EV/Sales and EV/EBITDA of 4.1x and 26.9x, respectively. Future revenues and milestones from licensing deals will be largely additive.

Companies: Byotrol Plc

24 Sep 20

Cenkos: Directa Plus Plc -- Material upside

Directa Plus is a commercially proven graphene supplier with a unique production process that creates high quality materials that are already used in a wide array of products internationally across multiple verticals. We expect the company to reach EBITDA positive in FY22 with existing cash reserves, leaving material upside in our expectations from some of its recently developed products such as the Co-Mask and Gipave. We see Directa Plus as an underappreciated, undervalued and more mature and lower risk play in the UK listed graphene and speciality nanomaterials space and initiate with a Buy recommendation and 122p target price.

Companies: Directa Plus Plc

21 Sep 20

AFC Energy (AFC LN) - Initiation: Solving large problems

We initiate coverage on AFC Energy and see this as a significant long-term growth opportunity. We have only focused on the UK potential in EV Charging and Distributed Power in this note but believe the application will be far wider both in geography and application. Following a transformational 2019, we can see a clear near-term intrinsic value of 68p based on UK EV Charging and Distributed Power alone.

Companies: AFC Energy Plc

26 Mar 20

Capital Access' Hot Off The Wires - The Day Ahead

Today's news & views, plus announcements from VOD, POLY, SMDS, BLND, BYG, WEIR, DC, SNR, SHI, INTU, IHR, CNC, ARE, INCE

Companies: INTU SHI INCE

07 Sep 20

WHI Morning Comment: Spectra Systems (SPSY) - Interim results – Significant order visibility yields multi-year upgrades

Spectra Systems, a leading provider of advanced technology solutions for banknote and product authentication markets, has announced a solid set of interim results. Moreover, significant H2 visibility, notably from central banking customers, yields upgrades to our FY 2020 and FY 2021 estimates with adjusted PTP increasing 17% and 16% to $5.8m and $6.1m respectively. In terms of H1 numbers, revenues increased marginally to $6.5m (H1-19: $6.4m), and adjusted pre-tax profit came in flat at $2.3m. The balance sheet retains its robust state which, even after the $4.1m FY 2019 dividend, distributed June 2020, still holds $10.9m (H1-19: $11.1m) of net cash (excluding restricted cash of $1.3m, H1-19 $1.1m). Our Sum-of-the-Parts valuation indicates a risked fair value more than 200p.

Companies: Spectra Systems Corp.

23 Sep 20

Commercial progress tracking in line with expectations

Xeros has announced interim results for the 6 months to June 2020. This marks a period when the company has completed its transition to an asset-light, IP licensing business model through the disposal of all direct operations. A strong cash position coupled with substantially reduced costs should enable Xeros to reach profitability in H2 FY2022E. Despite COVID, commercial progress is tracking as we would expect. Hence we are not changing forecasts for the current (or future) years and our target price remains 2p/share.

Companies: Xeros Technology Group Plc

24 Sep 20

Rising to the challenge of COVID

H1’20 was a period of significant revenue growth (+200% to €2.8m), driven by the Setcar acquisition, now fully integrated. Underlying progress was constrained by COVID, but the Group rose to the challenge, exemplified by the launch of the G+ enhanced Co-Mask (orders of €400k received to date). Good commercial progress has also been made with Gipave during the period, with three installations now in place. In our view, Directa is well positioned to deliver strong growth over the medium term as awareness of the performance and value of its technology continues to build.

Companies: Directa Plus Plc

31 Jul 19

Cenkos: Building & Construction

Due to a change in Analyst role, Cenkos Securities plc has suspended coverage of the following stocks (see table 1). Our previous recommendation and forecasts can no longer be relied upon.

Companies: BDEV BWY BKG VTY COST CRST BBY FERG GLE KLR KIE MSLH MER MTO NXR PSN RDW RNWH SFR SHI MGNS TW/ CTO TEF TPK GFRD

06 Sep 19

SIG - Consensus in Detail - HY Results

SIG is a leading supplier of specialist building materials to trade customers across Europe, with strong positions in its core markets as a specialist distributor of insulation and interiors products, a merchant of roofing and exteriors products, and a provider of air handling solutions.

Companies: SIG Plc

25 Mar 20

Headlam

COVID-19 update: div. suspended, expect downturn in orders

Companies: Headlam Group Plc

16 Jul 20

Trading update

Xaar has issued an update highlighting that trading for the six months to 30 June has been in line with the Board’s expectations and that good progress is being made in implementing the new strategy. H1 revenue is noted to be £23.7m, a 7% decline relative to H1 FY2019, but sequentially in line with H2 FY2019. In the Printhead business, sales are no longer being made through distributors and OEM customers are now re-engaging with the group. New product development in printheads remains key to reversing market share losses over the last few years. Product Print Systems is marginally ahead in revenue terms in the first half, which is below plan, and Xaar 3D is noted as making good progress in testing despite lockdown restrictions. The balance sheet is strong with cash and cash equivalents of £23.9m. Financial guidance remains withdrawn, given the shorter term uncertainties, with the Board focused on a return to profitability in FY2022. The shares trade at c.0.6-0.7x EV/sales, excluding cash ring fenced in Xaar 3D of $7.25m at 19 November 2019 and the potential payment of $33m should Stratasys exercise its call option over the 55% of Xaar 3D that it currently doesn’t own.

Companies: Xaar Plc

03 Aug 20

Another positive trading update lifts forecasts

Byotrol released a further positive trading on the back of a strong Q1 FY 2021, citing product sales in excess of £3.4m in the quarter and for the business to significantly exceed full-year market forecasts. With the order book at the end of June still being c.£2m (similar to at 30 April) and continued improving supply chain management for biocidal ingredients, we have upgraded forecasts to reflect this outlook. We increase FY 2021 revenues, adjusted EBITDA and EPS by 15%, 38% and 55%, respectively. Consequently, we upgrade our target price to 10p, at which level the stock would trade on 3.7x sales. As previously indicated, we think the pandemic should result in a secular shift towards improved disinfection prevention, reducing the prospect of FY 2021 being a one-off exceptional performance. The prospect for further upgrades should current monthly revenues extend for longer than anticipated and additional IP monetisation events should not be discounted, in our view, either.

Companies: Byotrol Plc

19 May 17

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

28 Sep 20

Time to strike for Newmark Security 'with clock hardware as a key business driver'

07 Jan 20

Checkit PLC Investor Evening

25 Sep 20

Directa Plus reports triple revenue growth and success of new mask launch

07 Jan 20

Volex PLC Investor Presentatiion

25 Sep 20

Strix Interim Results Presentation Sept 2020

14 Apr 16

Executive Interview - Martin Aircraft Company

25 Sep 20

Judges Scientific (JDG) H1 20 results presentation

24 Jan 20

Ultra Electronics (ULE) Capital Markets Day January 2020

24 Sep 20

Strix - Analyst presentation

08 Nov 19

Seeing Machines - 2019 Capital Market Day Highlights

23 Sep 20

AFC Energy Initiation – More revenues building quickly (Analyst Interview)

Premium

04 Feb 20

Executive interview - Test

23 Sep 20

Microsaic Systems - 4500 MiD

06 Dec 18

Executive Interview - Delignit

Latest Content

WHI First Light: Norman Broadbent (NBB) - H1 results confirm turnaround; new business streams make up lion's share; greater balance in business; scaling up to grow

This morning's results, achieved against the challenging backdrop of the pandemic, demonstrate that NBB's upward trend continues, and point towards continuing positive momentum based on the transformed business model in place following the appointment of CEO Mike Brennan. As flagged in the company's pre-close announcement, the business succeeded in generating positive EBITDA, to the tune of £11,000 – a small number but an encouraging indication in our opinion. Sales fell 15% YoY, but impressively, gross profit (NFI) declines were held at just under 6%. Cash-generative, the group succeeded in reducing net debt (after loan notes) from close to £1m to a relatively minimal amount (<£50,000). NBB moved quickly as the crisis took root to take out costs and to manage the move to remote working efficiently and speedily. Salary sacrifices were implemented early, efficiencies made, digital marketing ramped up, and the business continued to operate through the lockdown without interruption notwithstanding the challenges faced in particular by Executive Search.

Norman Broadbent Plc

28 Sep 20
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H1 behind with limited scars; H2 partial reversion to normal

Tight, reactive management and a strong balance sheet policy saved the day in locked-down times. Management is cautious but the small industrial conglomerate holds the cards for a return to dividend payments in 2021.

Groupe SFPI SA

28 Sep 20
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Cenkos: Mercantile Ports & Logistics Ltd -- Maiden Revenue

The continued build out of the port enabled commercial operations to commence and maiden revenue to be generated. The Group's access to cash at year end was strong (£27.6m) and with management acting decisively in response to COVID-19, remained robust post period end (£16.8m). This combined with winning the Tata/Daewoo contract positions the Group well to expand its contracted customer base, convert pipeline customers and increase utilisation rates.

Mercantile Ports & Logistics Ltd.

28 Sep 20
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Time to strike for Newmark Security 'with clock hardware as a key business driver'

Newmark Security Plc

28 Sep 20

Newmark Security :Clocking on

Newmark Security (AIM:NWT) specialises in products and services in the security and data sectors. The company has two operating divisions:1) People & Data Management consists of two sub-segments – Human Capital Management and Access ControlThe Human Capital Management (HCM) segment provides edg

Newmark Security Plc

28 Sep 20
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Upgrade to FY 2020 after robust H1 navigation (SFPI Group)

Upgrade to FY 2020 after robust H1 navigation EPS CHANGE CHANGE IN EPS2020 : € 0.08 vs 0.00 +2,379% 2021 : € 0.17 vs 0.16 +1.83% The H1 20 delivery was a good surprise with a contained loss at €4.4m on sales down 21%, also a positive surprise for an industrial group mostly located in France where the lockdown has been a pretty harsh one. We allowed for a modest degree of recovery in H2 with FY sales down 13%. While operating margins are being slashed (higher costs, missing volumes here, saturated tools there) turning a profit may not be out of reach. This explains the 2020 earnings rebound from zero to some €7.5m adjusted from goodwill impairments. CHANGE IN DCF€ 2.96 vs 2.65 +11.6% The DCF mechanically benefits from a reset of the 2020 expectations to positive earnings territories. The 2021 and 2022 have been only marginally raised as they already allowed for a recovery.

Groupe SFPI SA

26 Sep 20
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FY19/20: not too bad

The group’s results were very decent in the pandemic context The Plant-making business has shown its resilience Steel-making is suffering more, in line with its higher cyclicality The outlook is rather vague, but we keep a positive stance over the long run We will adjust our numbers, slightly down over FY20/21

Danieli & C. Officine Meccaniche SpA