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.

09 Aug 17

French audio and localisation consolidation

The acquisition of four French companies gives Keywords Studios strong capabilities across all major European languages for localisation and voice-over recording. The transactions boost our FY18 EPS by 5%, although some investment in integrating the entities will be required. The expanded offering should also support organic growth, through helping secure more centrally procured, multi-language contacts.

Companies: Keywords Studios

12 Jul 17

AIM – End of summer term report

We update this table which we first published in early January and highlight the continued progress of the biggest AIM companies so far this year and activity in general. The latest AIM Statistics show that there are 963 companies currently, with 28 new issues year to date raising £441m. What’s more, this momentum has been maintained since June. This demonstrates that despite, the uncertainty surrounding the UK economy, generally investors continue to be active in the AIM market. In Share News & Views we comment on Cohort, ECSC*, Porvair, Quarto*, SQS* and Xafinity.

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

10 Aug 17

N+1 Singer - Hill & Smith Holdings - Positive H1

As indicated in May, trading has been positive in H1 and is in line with expectations. Most areas are trading well and, if anything, a little better than expectations. We retain forecasts but note that as the year progresses, attention will turn to FY18 and the further significant opportunities therein. We nudge our target price up to 1435p and remain at Hold, while remaining very supportive of management and the strategy and the long term potential for the group.

Companies: Hill & Smith

09 Aug 17

Positioning for growth

Rotork is taking decisive steps to determine its future size and shape. The company is not in a holding pattern awaiting a new CEO. Executive chairman Martin Lamb has taken the reins and end-market dynamics are driving a rethink in regards to innovation and the company’s operating footprint. In addition, there is a considerable opportunity to drive aftermarket activity, with the benefits of improved visibility and profitability that should provide. In the short term, management’s FY17 expectations have been maintained with stronger H2 delivery in sight; margins are expected to improve to a similar level to FY16.

Companies: Rotork

28 Jul 17

Firing on all cylinders

Strong trading nearly across the board reaffirms the strength of Keywords Studios’ model and prompts a further 8% upgrade to FY17 EPS. We believe there should be more to come, both organically and through acquisitions. Despite the premium rating, continued execution should drive further upside.

Companies: Keywords Studios

11 Aug 17

Growth normalises

Paysafe’s H117 results show that organic constant currency growth is moderating to low double-digit rates, after an exceptional period of growth in 2016. Profitability was strong during the period, helped by the strong growth and margins of the Asia Gateway business. The sale of Asia Gateway and the acquisition of MCPS will both help reduce the group’s exposure to online gambling, and MCPS will strengthen the group’s position in bricks and mortar payment processing.

Companies: Paysafe Group

07 Aug 17

New records galore

The past fortnight has seen a number of records broken in the technology sector, both in the UK and abroad. FDM* share price set a record, going past the £10 mark, after beating market expectations. Sage made its biggest ever acquisition. Samsung set a record for net profit in a quarter, making it the world’s most profitable company. Apple’s cash pile grew to a record US$262bn. Google’s record US$2.7bn fine meant it had a rare decline in profitability. GetBusy* had a strong debut on AIM, increasing 22% on its first day, adding to the track record of recent tech company listings in London.

Companies: BBSN ECSC EUSP FDM PPIX QRT SPRP SQS SNX

09 Aug 17

Summertime, and the livin’ is easy?

In the middle of the holiday season, when in theory the livin’ is easy, far from taking a breather, markets have continued to rise. All major indices are close to all-time highs. Although the Brexit picture is no clearer, share prices continue to make headway. Both M&A and new issue activity remains to the fore. In contrast, the latest snapshot of the economy shows increasing signs of a slowdown. The reporting season continues apace which will set the near term direction. In Share News & Views, we comment on recent results/news from AdEPT, Clipper Logistics, FDM*, GetBusy*, Quarto* Sprue* and Staffline.

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

31 Jul 17

N+1 Singer - Bodycote - Good momentum; PBT forecasts increased

Bodycote reported strong, broadly-based sales growth for H1 17, growth which accelerated within the period. Margin also advanced, leading to a 26% rise in adjusted PBT. Management expects this momentum to continue and increased guidance for the full year towards the top of the range. We have increased our low end PBT forecasts by 14% for 2017 and 15% for 2018 and also increased our target price from 690p to 995p. We believe prospects remain attractive for Bodycote. Industrial data series are supportive across many of its end markets; delivery of the strategy remains strong; and the group has a healthy balance sheet with net cash to support continued investment in organic and/or acquisitive growth. With the shares on a c.25% EV/EBITDA discount to the sector, we retain our Buy recommendation.

Companies: Bodycote

09 Aug 17

In-line interims: accelerating growth

RTC has released an in-line set of interims with PBT at £0.6m, representing growth of 32%. The interim dividend was also up 9% to 1.2p. For the full year we will be leaving our forecasts unchanged implying PBT and DPS growth of 16% and 7.5% respectively. Net debt at June 30th , also slightly improved from £4.2m at the beginning of the year to £4.0m. These interims follow the recent announcement confirming the new contract with SSE Plc which significantly de-risks the earnings profile. We estimate 76% of gross profits (ex DCC) can be viewed as recurring and confirms our argument that RTC deserves a higher rating as it should not be viewed as just a cyclical recruitment company. RTC currently trades on a 2017 and 2018 PE rating of 9x and 7x respectively and offers a dividend yield of c5%. We reiterate our buy recommendation with a price target of 95p – 36% upside.

Companies: RTC Group

02 Aug 17

Forecast updates

We have updated our forecasts to reflect recent announcements from Utilitywise (UTW), including those related to consumption volumes in ‘nominated contracts’, implementation of IFRS 15 and the trading update. While our changes have resulted in lower projections for revenues, profits and dividends, changes to revenue recognition will result in lower levels of accrued revenue and a stronger link between profits and cash flow. Following recent falls, the rating of the shares appears undemanding for a company that we expect to generate profits and cash in FY18.

Companies: Utilitywise

19 Jun 17

Delivering against strategy

Good momentum is apparent in Severfield’s results, with healthy progress in revenue and margins in the UK and a profit contribution from the Indian JV. Our estimates now expect a sustained JV profit contribution (previously neutral) and, with unchanged UK expectations, Severfield is on track to double PBT between FY16 and FY20. All in all, we see a clear strategy that is being well executed against visible financial targets.

Companies: Severfield

03 Aug 17

Patient investors paid 7.5% to wait

Rome was not built in a day. And like most good things, Gattaca’s transition from UK engineering staffer to international recruitment specialist of hard-to-find STEM candidates (Science, Technology, Engineering and Mathematics) is taking slightly longer than anticipated. Not because of any strategic or execution misstep, but largely because of more challenging conditions, which have impacted Net Fee Income (NFI, see below) over the past 3 years.

Companies: Gattaca

11 Aug 17

H1 consensus beat and promise of a bright H2

BAE Systems reported a good looking set of H1 results, showing an improvement in revenues and EBITA margin (and the IFRS accounted operating profit margin), but also a modest increase in the order backlog versus FY16. Growth came from all divisions not only in terms of sales, but also EBITA. With increased operating cash flow in a usually-seasonally-weak half-year and higher EPS (+13.8% yoy), the group was able to increase the distributed interim dividend and has confirmed the FY guidance in an improving market environment.

Companies: BAE Systems

27 Jun 17

Machinations

We recently hosted our annual Industrial Technology dinner with 14 companies, many of which are active in the materials science arena; having focused previously on composite materials in the aerospace sector, in this edition of Machinations we focus on graphene, with its unique and potentially game-changing qualities and potential applications. Investments in this area remain fairly early stage, but could potentially reap huge rewards. Graphene is well represented in the UK small-cap market by several players.

Companies: SIXH ACL AXS AMPH ALU AEP AVG CAPD CAR FENR FLO RAD GHH HDD HAYT IOF MPE RE/ RED RNO RBN SOM SCE TRT TRI VANL ZAM

19 May 17

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

26 Jul 17

Solid State - Analyst interview, finnCap

Premium

10 May 17

Capital Network's Helaine Kang on Judges Scientific PLC

14 Jul 17

redT - Operational Update

12 Feb 16

EMR Capital - Update at 121 Mining Investment

13 Jul 17

Flowtech Fluidpower - Analyst interview, finnCap

Premium

03 May 17

Executive Interview - Dialight

11 Jul 17

Flowtech Fluidpower - Analyst interview, finnCap

Premium

29 Dec 15

2015 Highlights: Stadium Group - Innovators & Investors Forum

30 Jun 17

Hayward Tyler Group - Recommended acquisition by Avingtrans plc

14 Jun 17

Somero (SOM) Invester presentation June 2017

23 Jun 17

Flowtech Fluidpower - Analyst interview, Zeus Capital

16 Dec 16

Executive Interview - Gooch & Housego

13 Jun 17

Trifast - Final results

15 Dec 16

Executive Interview - Paragon

Latest Content

Gaussin

Financial freedom by 2019? (Gaussin)

Financial freedom by 2019? TARGET CHANGE CHANGE IN TARGET PRICE€ 0.53 vs 0.61 -12.2% Note that we changed our recommendation from a Call option recommendation (held for almost two years) to a Buy in June 2017. We believe that the debt restructuring and the strong guidance (namely €18m of revenue and a positive reported net profit for FY17) are positive elements. We believe that the company could become cash break-even from 2019 onwards, which would be a very positive element and a strong catalyst for the share price. Finally, in our view, Gaussin's dependence on capital increases is approaching an end (we forecast only a €5m capital increase in 2018). Gaussin's financial freedom will be significantly rewarded by the market. In anticipation of this, we have switched to a positive recommendation. CHANGE IN EPS2017 : € 0.00 vs 0.02 -76.2% 2018 : € 0.04 vs 0.05 -22.9% Following a Q2 that was disapointing relative to Q1, we have decided to lower our EPS forecasts. We now expect the company to be break-even in 2017 on an adjusted basis. We still expect Gaussin to deliver positive adjusted net income in FY 2018. CHANGE IN NAV€ 0.67 vs 0.71 -6.68% Following the issuance of convertible bonds, we have adapted our assumptions about the future capital increase, namely the conversion of debt into shares. We now expect this to takes place at c.€0.25 per share vs €0.30 previously, explaining all the decrease in our NAV. CHANGE IN DCF€ 0.76 vs 0.83 -8.51% Following the issuance convertible bonds, we have adapted our assumptions about the future capital increase, namely the conversion of debt into shares. We now expect this to takes place at c.€0.25 per share vs €0.30 previously, explaining all the decrease in our DCF.

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16 Aug 17
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paragon

Automation to drive enhanced returns

Following a visit to paragon’s expanded Delbrück facility and the successful €50m bond issue, we have revisited and upwardly revised our medium-term growth and margin outlook for the group. With 2016 results having met forecasts despite some timing headwinds and future years underpinned by substantial contract wins across the electromobility division, we believe paragon is on the cusp of further accelerated growth. With proceeds from both the October 2016 capital increase and June 2017 bond issue being invested to support this accelerated growth, we raise our fair value to €82.1/share based on our updated DCF scenarios.

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16 Aug 17
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PEG COG IKA OMI EZH MMH UBI CIRC EPO

AIM Breakfast

LoopUp—The provider of conference calls and online meetings is seeking to join AIM. 2015 revs of £9.2m and EBITDA of £1.02m | Bacanora Lithium— To list on AIM around 28 Sep as holding company for TSX listed Bacanora Minerals at £100m market cap | Aura Energy—ASX listed uranium developer (ASX:AEE) expected to join AIM 6 September | Autins Group plc - The acoustic and thermal insulation specialist now looks to join AIM late August

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16 Aug 17
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Mears Group

Grenfell Tower disaster set to impact Mears Group profits

The tragedy meant its social housing clients would be delaying work orders.

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15 Aug 17
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MSG PEN EOG NASA THR UVEN AOR NAK EDL SRES

AIM Breakfast

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15 Aug 17
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Fraport AG Frankfurt Arprt Svcs Wrldwde

Air Berlin goes into receivership

Etihad has terminated its financial support for the ailing airline which forced management to ask for creditor protection. The German government has granted a €150m loan guarantee that will allow Air Berlin to operate until the end of November. This bridging loan will be repaid first once the carrier has sold its assets, in particular its slots not only in Germany but also at other European airports.

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15 Aug 17
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Clarkson

Clarksons Group interim numbers strong, now debt free

Smooth sailing for the shipping giant, shares trading up.

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14 Aug 17
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PHSC

Breakfast Today

Altus Strategies (ALS.L) | PHSC (PHSC.L)

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14 Aug 17
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Clarkson

1H17 interims – Now debt free

Clarkson reported underlying EPS of 57.5p, up 9% YoY despite the challenging conditions in the shipping market. The interim dividend was increased by 1p to 23.0p per share and the final tranche of the Platou loan note was paid off. These results were in line with our forecasts, which we leave unchanged. However, now that the balance sheet is debt free and with cash generation at the pace we anticipated, we expect market attention to turn toward the potential for a very material increase in distribution, subject to growth investment, even ahead of a return to more benign market conditions which Clarkson should be fully able to leverage. We reiterate our Buy recommendation and 3,000p per share Target Price.

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14 Aug 17
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MWE GFIN MIRA NWT

TMT Update 14.08.17 (MWE.L, GFIN.L, MIRA.L, NWT.L)

MTI Wireless Edge plc (MWE.L, 34.25p/£18.1m) Interims and contract win: Both divisions firing | Gfinity plc (GFIN.L, 21p/£39.6m) Australian Elite Series: Geographic expansion | Mirada plc (MIRA.L, 1.75p/£2.4m) Trading update: Improvement at Televis