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.

01 Jul 20

THE MONTHLY July 2020

A number of REITs have the ability to thrive in current market conditions and thereafter. Not only do they hold assets that will remain in strong demand, but they have focus and transparency. The leases and underlying rents are structured in a manner to provide long visibility, growth and security. Hardman & Co defined an investment universe of REITs that we considered provided security and “safer harbours”. We introduced this universe with our report published in March 2019: “Secure income” REITs – Safe Harbour Available. Here, we take forward the investment case and story. We point to six REITs, in particular, where we believe the risk/reward is the most attractive.

Companies: AGY ARBB ARIX BUR CMH CLIG DNL HAYD NSF PCA PIN PXC PHP RE/ RECI SCE SHED VTA

08 Jul 20

When the tough get going

Successful businesses ‘never let a crisis go to waste’. Indeed since an otherwise strong Q1’20 was interrupted by COVID-19, Mpac has further streamlined operations, accelerated R&D and launched new remote equipment diagnostic/acceptance testing, virtual reality & other ‘Industry 4.0’ services.

Companies: Mpac

09 Jul 20

RBL interim revenues on track for +36% H1, uncertainty elsewhere

RBG Holdings pre-close trading update to June 30th confirms a strong H1 performance for RBL, the Group’s law firm, with revenues up 36% like-for-like to c.£11.4m YoY. Convex, the CF boutique, understandably has faced COVID headwinds, with most of its H1 pipeline deferred indefinitely, whilst Litigation Finance continues to grow its pipeline and financing commitments on a longer term view. Due to continued uncertainty from COVID we withdraw our forecasts this morning, with a view to reinstating once more clarity on H1 outturn and momentum into H2 is available.

Companies: Rosenblatt Group

06 Jul 20

Macfarlane Group*

Resilient Trading Update

Companies: Macfarlane Group

07 Jul 20

Trading update and contract wins

The year-end trading update was encouraging, with expected results showing good YoY growth, modestly below but close to our earlier expectations. Trading has been resilient, particularly in safety critical areas such as its nuclear exposure, with some weakness being seen in oil & gas, where there is limited exposure. Two new contract wins in the nuclear sector have also been announced today. FY 2021 forecasts remain under review. With strong finances, the company is well positioned to maximise M&A opportunities, through its PIE strategy.

Companies: Avingtrans

07 Jul 20

Y/E trading update reveals impressive growth

Revenue for FY 2020 is ahead of expectation and we adjust our forecast accordingly. Sales are growing at an impressive rate; >50% pa despite COVID-19 and the virus had no effect on the company’s ability to deliver projects with 23 new customers live in Q4. We note COVID concerns are causing some delay on contract decisions, and sales would have been even stronger but for that. These delays do lead to caution on FY 2021, and we ease back our forecasts on more prudent management guidance. However, with the recent £5m equity placing, PCIP has plenty of cash to continue to invest in rolling out its exciting secure payments proposition. This cloud-based solution can be deployed remotely and assists call centres in moving agents to WFH and still collect payments securely. The outlook remains very bright with continued rapid growth expected.

Companies: PCI Pal

07 Jul 20

Trading update and contract wins

The group has issued a trading update for the year ended 31 May 2020 highlighting an adjusted EBITDA of at least £11.5m which is close to the group’s original expectation, despite widespread disruption to operations in the second half. The statement notes ample liquidity headroom in excess of £10m with net debt (excluding IFRS 16 lease liabilities) reducing in H2 to £7.5m as planned. The Group’s order book and prospect pipeline remains strong overall and the update is accompanied by the announcement of two meaningful contract wins in the nuclear sector. A further significant positive development is the grant of outline planning permission for the conversion of the group’s 7 acre Hayward Tyler site in Luton into residential housing for up to 1000 dwellings. Whilst financial guidance for FY2021E remains withdrawn at this point due to on-going uncertainties around the impact of COVID-19, we see the group continuing to demonstrate good resilience, operating at close to normal levels, supported by exposure to multiple markets and a strong customer base that includes governments and their agents.

Companies: Avingtrans

09 Jul 20

WHI First Light: Caledonia Mining (CMCL) & Spectra Systems (SPSY)

Caledonia's Q2 2020 production from its 64% owned Blanket mine in Zimbabwe was 13.5koz gold. This was an increase over the same period last year of 6.2%, leaving Caledonia with a first half production of 27.7koz – well ahead of this time last year (24.7koz) and on track to meet its 2020 full year guidance of 53-56koz (WHI etc. 55.5koz). Spectra Systems Corporation is a provider of machine-readable high-speed banknote authentication, brand protection technologies and gaming security software. The company has announced that it has executed a new contract with a major world central bank to ‘enhance existing authentication sensors to detect a unique type of counterfeit notes'.

Companies: Spectra Systems Caledonia Mining Corporation Plc Com Shs Npv

08 Jul 20

Cenkos: Marlowe Plc -- Accelerating organic revenue growth

Marlowe delivered a strong performance during FY20A, with +7% organic revenue growth, and improved Adj EBITDA margins. Integration of acquisitions is progressing well, and with receipt of c£40m gross proceeds, Marlowe is well placed to accelerate the consolidation of its markets. We leave our forecasts unchanged and reaffirm our Buy rating.

Companies: Marlowe

06 Jul 20

Allenby Capital TMT Update - 06.07.20 - ECSC.L, TWD.L, TRT.L

ECSC Group plc* (ECSC.L, 71.5p/£7.2m) | Trackwise Designs plc (TWD.L, 90.5p/£20.0m) | Transense Technologies plc (TRT.L, 59.5p/£9.7m)

Companies: ECSC Group Trackwise Designs

29 Jun 20

Trackwise Designs

Updating forecasts following 2019 results

Companies: Trackwise Designs

12 May 20

WHI Morning Comment: WEY Education (WEY)

Strong H1 results, prospects good, investing in the future WEY's H1 results this morning reflect both the positive effect of proactive actions taken by the company last year and strong demand from the market at large. Sales up 43% YoY and PBTA of £0.3m (2019: £0.1m) reflect increases across both sides of WEY's business and are accompanied by margin uplift (62% gross margin as against 56% last year). The company is a well-established leading supplier of online education, having built a 15-year track record of excellence in its sphere. Covering the half year ending on February 29th, the period of the results precedes the lockdown; however this morning's statement lays out the heightened demand for WEY's product which is an inevitable result of the new focus on remote working and online learning. WEY is plainly extremely well-placed to grow in the current environment, and it has made significant investments in educational quality and in marketing – in both cases including senior and wellrespected hires. The Covid-19 crisis has generated a new appreciation of online education from parents, pupils and educational authorities, who increasingly see this as a real, practical and highly effective substitute for traditional education, adding to the already strong demand across WEY's brands. Our 30p-plus fair value assessment rests on the inherent opportunities and is also supported by the strong balance sheet (£6.6m of net cash, +£1.6m in the period).

Companies: Wey Education

01 Jun 20

The Monthly June 2020

Much has been written about the effects of the virus on the world and on the stock market. Here is one analyst’s take on some of the likely impacts on the way we should look at companies. This article was originally produced as a blog, “10 Changes Post Virus”, which was published a few weeks ago.

Companies: AGY ARBB ARIX DNL GDR NSF PCA PIN PHNX PHP RE/ RECI STX SCE SIXH TRX SHED VTA

29 Jun 20

Significant capital injection supports next growth phase

Successful K3 Capital placing to raise £30.45m (gross) at 150p to fund the £9.3m acquisition of Randd UK Ltd, an R&D tax credit specialist with an LTM EBITDA of c.£2.0m, with a margin of c.50% and revenues typically contracted for 5 tax years with many recurring thereafter, followed by future potential deals in SME exposed markets. K3 has established itself as an innovative company that is able to effectively gather, generate and mine large quantities of data in order to scale up M&A services to SMEs. Transferring these lead generation capabilities to adjacent SME markets can allow rapid growth from proven models, at scale.

Companies: K3 Capital Group

23 Jun 20

FY results in line

FY results were in line with forecasts, showing strong sales growth and commercial traction for IHT, with RF held back by ongoing market challenges. Recently acquired SCL is integrating well without any surprises. Trading has been resilient through lockdown, though there may be some short-term impact on the timing of revenues and order intake. Forecasts increase on gross margin and tax credit gains, resulting in an EPS upgrade of 27% to 4.4p in 2020 and 22% to 7.2p in 2021.

Companies: Trackwise Designs

19 May 17

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

10 Jul 20

Inspired Energy raises up to £35mln in placing and open offer to fully acquire Ignite Energy

07 Jan 20

Volex PLC Investor Presentatiion

10 Jul 20

Inspired Energy raises up to £35mln in placing and open offer and fully acquires Ignite Energy

07 Jan 20

Checkit PLC Investor Evening

29 Jun 20

Norman Broadbent to emerge from pandemic 'stronger than ever' as it marks return to profit

23 Jan 20

Executive interview - Sureserve

25 Jun 20

Morning Report: FTSE 100 posts early losses sparked by rising US coronavirus infections

14 Apr 16

Executive Interview - Martin Aircraft Company

24 Jun 20

discoverIE Group reveals record order book and says it's well positioned for return to strong growth

18 Jun 20

Boku - Acquisition of Fortumo

11 Jun 20

Boku - Trading update

04 Feb 20

Executive interview - Test

09 Jun 20

Avation PLC: Proactive Investor Presentation

24 Jan 20

Ultra Electronics (ULE) Capital Markets Day January 2020

Latest Content

Inspired Energy raises up to £35mln in placing and open offer to fully acquire Ignite Energy

Inspired Energy

10 Jul 20

Inspired Energy raises up to £35mln in placing and open offer and fully acquires Ignite Energy

Inspired Energy

10 Jul 20

Figures largely in line

EBITDA adj for leases and one-offs of USD 86.0m vs ARCe of USD 81.8m Credit metrics boosted by Aker JV, but risk is the same No material news on uncontracted vessels Credit neutral report

OCEAN YIELD

09 Jul 20
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Building a more robust balance sheet

Adj. EBITDA 6% ahead of ARCe, but 5% below Cons. Adj. EPS of USD 0.11 (ARCe: USD 0.11, Cons.: USD 0.09) DPS of USD 0.05 - in line with expectations (dividend yield of 8.4%) We expect the share to trade in line with the market following the report

OCEAN YIELD

09 Jul 20
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mic - Reverse takeover potential

mic is considering a reverse acquisition to shift from a holding company to an operational company. The FY19 results showed an improvement in gross profit, lower net loss and a virtually debt-free position. In April 2020, mic raised €0.9m and, together with potential new capital of €6.5m (already authorised by the shareholders at the AGM), this offers a decent war chest for potential takeover candidates. The book value of the current two holdings was c €2m in FY19 and combined with the current net cash position of €0.9m this implies a value per share of €1.17.

Micro-X