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.

16 Jan 19

Trading ahead of expectations, 5% EPS upgrade

The company has announced a positive trading update signalling a stronger than expected H2, with sales and EBITDA moderately ahead and cash more meaningfully ahead of expectations. We upgrade our 2018 EPS forecast by 4.9% and raise 2019 by 4.6%, confirming robust trading continues. The company has also announced a small bolt-on acquisition of Line Dragon for $2.0m, which looks an ideal close fit. The shares have significantly derated and the trading update confirms robust trading continues, thus providing a strong buying opportunity. The 7% dividend yield and single digit P/E in 2019 highlight strong value – this quality stock is one of our favourites.

Companies: Somero Enterprises

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

14 Jan 19

XP Power - Revising forecasts to reflect weaker semis sector

As previously flagged, a drop in demand from XP’s semiconductor customers had a negative impact on Q4 revenues and orders. Conversely, demand from all other end-markets remained strong. With FY18 revenues likely to be 2% lower than we had expected, we have revised our forecasts to reflect this and expected weaker demand from the semiconductor sector in FY19. Despite the resulting 5% cut in EPS forecasts for FY19, the stock is trading at a discount to peers, with a superior dividend yield.

Companies: XP Power

15 Jan 19

Share & share alike

It may only be a fortnight into the new year but many of the factors that unnerved the market last month have continued to impact sentiment. The outcome of trade talks between the US and China, concerns about global economic growth and some poor trading statements, especially in the retail sector, have all featured. Above all, Brexit and the progress of the Withdrawal Bill have dominated with the latest “high noon” due later. Despite this, we have seen a good rally in the junior markets year to date. In Share News & Views we comment on Bloomsbury, DeepMatter*, James Fisher and Helios*.

Companies: AOR APC BONH BMS CTG CRPR DMTR ESC EUSP FDM FA/ LSAI NKTN PCF SNX TCN W7L

14 Jan 19

HCM UPDATE -14.01.19 (RWA.L; STAF.L)

Robert Walters plc (RWA.L, 561p/£424m) Q4 trading update to 31.12.18 (10.01.19) | Staffline Group plc (STAF.L, 990p/£277m) Full year trading update to 31.12.18 (08.01.19)

Companies: Robert Walters Staffline Group

11 Jan 19

THE MONTHLY January 2019

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. 2018 was a difficult year; however, the index still outperformed its comparative London indices, falling 10.0% to 393.2, compared with -13.0% and - 18.2% for the Allshare index and the AIM index, respectively. Furthermore, several (17) companies in our index increased their capital base – 15 of our 50 constituents raised new funds, two issued shares as part consideration for acquisitions, and two had share buybacks – all factors that influence the performance of the index. Even allowing for both capital increases and share buybacks, the 12.5% fall in the index still represented a modest outperformance compared with the decline in the Allshare index. With active industry consolidation, shareholder returns remain attractive.

Companies: OPM AVO AGY APH ARBB AVCT BUR CLIG DNL DPP GTLY GDR HAYD KOOV MCL MUR NSF OXB PCA PHP REDX SCE SIXH TRX TON VAL VTA

09 Jan 19

Arden Research best ideas 2019

We present our best research ideas for 2019 in this report seeking to provide investors with some value opportunities highlighting stocks that we believe warrant investor attention, regardless of near-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: ANX ARS CALL HUR JHD JOG KCT MACF RBGP SOLG VNET

14 Jan 19

Cenkos: Restore Plc - Ninth year of double-digit EPS growth

Restore announced its trading update for the year ended 31 Dec 2018, in which trading for the year was broadly in line with expectations, with the company due to deliver its ninth successive year of double-digit earnings growth. The recent TNT acquisition is performing in line with expectations and is presenting good growth opportunities for the company. However, a fall in volumes in Datashred leads us to slightly lower our revenue and EBITDA forecasts for FY18E and FY19E. We continue to see good value in the shares at 10.2x FY19E EV/Adj EBITDA for this high-quality business. Buy.

Companies: Restore

14 Jan 19

Good performance in H1, in line with market expectations

Avingtrans has given a reassuring update for H1 19, confirming good trading in line with market expectations. The performance of the Hayward Tyler businesses continues to improve and the operations have a strong pipeline of prospects. Metalcraft’s 3M3 contract for Sellafield in now in production and scaling up. Meanwhile recent bolt-on acquisitions Ormandy and Tecmag are integrating well. We do not anticipate making any changes to our forecasts as a result of the update, which underpins our existing estimates. The shares trade on undemanding multiples (EV/EBITDA 7.5x FY19, 6.4x FY20, offering good potential for outperformance.

Companies: Avingtrans

17 Jan 19

Cenkos: Smart Metering Systems Plc - New customer win

Smart Metering Systems (SMS) has signed a new meter rental agreement with Octopus Energy to supply a minimum of 200,000 SMETs2 meters. Octopus has over 400,000 customers and has been growing at an average rate of 30,000 per month. Given its strength of funding and installation capacity, SMS is strongly placed to win further market share from energy suppliers yet to commence smart metering activity. These suppliers will be under intense regulatory scrutiny, with the SMETs1 end-date delays past being an acceptable excuse not to have meaningfully commenced rollout. Our base case DCF valuation analysis implies a share price of 1025p, c86% ahead of the current level.

Companies: Smart Metering Systems

11 Jan 19

Taking AIM

Altitude has initiated an accelerated bookbuild to acquire AI Mastermind (AIM), channel partner for Altitude’s white label ChannlPro solution (AIMPro), and largest promotional product distributor member group in the US. The acquisition is to be funded by a £7.0m fund raising at 68p (assumed), including £3.2m for working capital purposes. Customers of AIM members spend an estimated $1.7bn per year in a US market worth $23bn, with only c.11% of transactions online – AIMPro creates an end-to-end solution for distributors to online sales, in addition to order flow management and a CRM, with Altitude benefiting from a percentage share of gross transaction revenue (GTR), from suppliers. The acquisition will improve gross margin from AIMPro, offer the opportunity for enhanced tiered AIM member fees, and allow Altitude to drive AIM expansion directly, to the benefit of the group. Target price under review pending conclusion of the ABB (formerly 105p).

Companies: Altitude Group

14 Jan 19

Boku - Strong finish to FY18

Boku has confirmed that total processed value (TPV), monthly active users, revenues and EBITDA saw strong growth in FY18, and it expects to report metrics at least in line with Edison and consensus expectations. This provides support for our FY19/FY20 growth forecasts for the core payments business. The recently acquired Danal business provides a second path to extend Boku’s growth in the longer term, while close co-operation with Danal Korea could open up payment opportunities in Korea.

Companies: Boku

07 Jan 19

Growth every Fortnite

With eGaming, Virtual Reality (VR) and Augmented Reality (AR) coming of age, we have examined the gaming industry to see if it can continue its staggering market growth and if these categories are still too early stage?

Companies: GFIN KWS CDM FDEV GMD MSFT ATVI EA UBI TTWO

15 Jan 19

Share & share alike

Companies: AOR APC BONH BMS CTG CRPR DMTR ESC EUSP FDM FA/ LSAI NKTN PCF SNX TCN W7L

15 Jan 19

Cenkos: TP Group Plc - Trading ahead of expectations

TP Group announced a strong trading update for the year ended 31 December 2018, with revenues and cash ahead of market expectations, and adjusted operating profit in line. The company is taking the sensible decision to invest in building a solid platform to support its future growth, with investments in people, IT, equipment etc. Considering the positive outlook for the group, we see tremendous value in the shares at an Adj P/E ex cash of 13.4x for FY19E. Buy.

Companies: TP Group

22 Aug 18

Grafton Group - Interim Results 2018

10 Dec 18

Executive interview - paragon

31 Dec 18

Highlights 2018: redT energy - 5 minute masterclass: energy storage in the UK

27 Nov 18

VP

19 May 17

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

13 Nov 18

Trifast - Half year results

11 Dec 17

Capital Network's Ed stacey on Diploma PLC

08 Nov 18

Wincanton plc Interim Results for the six months ended 30 September 2018

20 Sep 18

Somero Enterprises (SOM) H1 results - September 2018

24 Oct 18

Stobart (STOB) H1 results overview, November 2018

06 Dec 18

Boku - Acquisition of Danal Inc.

23 Oct 18

Flowtech Fluidpower - Trading Update

28 Mar 14

Executive Interview – Optimal Payments

18 Oct 18

Executive interview – Renewi

15 Jan 19

Knights plc interim results 2017/18 - Interview with David Beech

Latest Content

Experian

Robust Q3 FY18/19 performance

The Q3 results came in ahead of our expectations, gaining strength from the robust US performance. Also, the UK provided much-needed support to its topline, led by positive B2B growth and moderating B2C losses. LatAm and EMEA/Asia also remained positive. Moving forward, regulatory risk (dealing with data privacy laws) seems to be the only risk in the US, whereas in the UK, we maintain our cautious stance given Brexit-led uncertainty stretching further. We have revised our estimates upwards. No change in the stock recommendation.

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18 Jan 19
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Kazera Global

Morning Note – 18 January 2019

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18 Jan 19
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Eddie Stobart Logistics

Cenkos: Eddie Stobart Logistics Plc - Strong revenue growth

Revenue growth has come in well ahead of expectations at an impressive 18% underlying and 35% including acquisitions. With more new business to digest than expected, margin has not recovered as quickly as we had hoped. Our 2017/18 EBIT forecast is trimmed from £59.6m to £57m, in line with consensus. Fully diluted EPS are expected to grow by the highteens. Because of macro uncertainties, we are aiming off with our Year 2 forecast, but still forecasting high-teens growth, underwritten in large part by contracts won over the last year. Thus, despite our trim there's plenty of growth on offer.

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18 Jan 19
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Smart Metering Systems

Cenkos: Smart Metering Systems Plc - New customer win

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17 Jan 19
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FOUR JDG CASP JOG

First Light

4imprint (FOUR) – Corporate - Ahead of schedule, encouraging update, upgrades | Judges Scientific (JDG) – Corporate – Trading Update – FY2018 further upgrade to EPS +6% | Caspian Sunrise (CASP) – Corporate – Shallow and Deep Operational Update | Jersey Oil & Gas (JOG) – Corporate – Operational Update

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17 Jan 19
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Alstom

Robust Q3 orders and FY18/19 guidance confirmed

Alstom reported Q3 18/19 sales and orders Alstom booked €3.4bn of orders compared with €1.7bn last year, corresponding to an organic growth of 100%. The company reported sales of €2.0bn, up 10% organically versus €1,827m in Q3 17. The order book reached €39.7bn (5 years of sales). The company confirmed its FY18/19 guidance of sales of c.€8.0bn and an EBIT margin of c.7%.

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17 Jan 19
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Management Resource Solutions

Northland Capital Partners Limited Morning Report

MANAGEMENT RESOURCE SOLUTIONS (MRS.L)

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17 Jan 19
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ASO MRS SHG TLG

SP Angel – Morning View

Avesoro Resources (ASO LN) 169p, Mkt Cap £137.9m – Initial drilling results from the Ndablama deposit | Management Resource Solutions plc (MRS LN) 5.1p, mkt cap £8m – Interim trading update and guidance | Serabi Gold (SRB LN) 37.5p Mkt value £22.0m – Record Q4 gold production and 2019 guidance | Shanta Gold (SHG LN) 5.5p, Mkt Cap £42.9m – Strong Q4 helps to hit 80koz guidance | Talga Resources (TLG AU) A$0.36, Mkt Cap A$77.5m – LOI signed with Schunk over graphene product cooperation

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17 Jan 19
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Somero Enterprises

Trading ahead of expectations, 5% EPS upgrade

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16 Jan 19
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AGY SSY SOM PPC TRCS

Morning Note – 16 January 2019

Allergy Therapeutics (AGY): Corp Trading update – strong rebound | President Energy (PPC): Corp Building critical mass | SCISYS (SSY): Corp Another contract win in Space | Somero Enterprises (SOM): Corp Trading ahead of expectations, 5% EPS upgrade | Tracsis (TRCS): Corp Acquisition

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