ACL.L Share Price (ACL)

Finncap have today increased their target price to 405p (from 339p) and say Buy: Http://investing.thisismoney.co.uk/broker-views/

Http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/ACL/13445477.html Changing the name tomorrow to reflect the transformed nature of the group to own design and manufacturing in high growth sectors. Very, very confident outlook: "Nick Jefferies, Group Chief Executive, commented: "This is a strong set of results. Sales increased by 21%, of which 9% was widespread organic growth across the Group, and underlying earnings per share increased by 24%. The second half has started well and we are on track to deliver full year performance in line with our expectations, supported by a record order book of �111m. Together with an increase in new project design wins of over 30%, with an estimated lifetime sales value of over �90m, we are well positioned for continued growth. Since 2011, we have been building a Design and Manufacturing business that would transform the Group into a higher margin business. D&M now accounts for 78% of Group underlying profit contribution.... ....We have many growth opportunities ahead of us as we drive towards our stated targets, and our ambition remains to repeat the performance of the last five years by doubling revenue and underlying earnings per share through a combination of organic growth and value-enhancing acquisitions." The highlights section says it all: "Highlights � Strong growth in sales, orders, profitability and earnings o Sales up 21% (+15% CER(2)) on orders up 22% (+15% CER) o Underlying operating profit up 34% (+23% CER) o Underlying earnings per share up 24% o Interim dividend increased by 8% � Wide spread organic growth across both divisions o Group organic sales(3) up 9%; orders up 10% in both divisions o D&M(4) organic sales up 11% - now 57% of Group sales (H1 2016/17: 52%) o Custom Supply (previously known as Custom Distribution)(4) organic sales up 7% � Good progress on key strategic and performance targets o Underlying operating margin increased to 6.2% (H1 2016/17: 5.6 %) o Cross selling of �4.2m, more than doubled from last year (H1 2016/17: �1.9m) o ROCE(5) of 14.5%, up 2.8ppts on last year (H1 2016/17: 11.7%) o Operating cash flow(6) at 95% of underlying operating profit in the last 12 months � Recent acquisition, Variohm, performing well with strong sales and order growth � Group well positioned for further growth o Highest ever period end order book of �111m (+16% CER) o New project design wins increased by 30% to over �90m(7) o Acquisition opportunities developing � FTSE sector reclassification from Support Services to Electronics and Electrical Equipment effective 18 September 2017 reflecting the scale of our D&M business"

spelling out the transition to own customised, higher margin products.... Http ://www.proactiveinvestors.co.uk/companies/news/185617/acal-building-momentum-with-its-higher-margin-strategy-185617.html?utm_source=Sign-Up.to&utm_medium=email&utm_campaign=7163-371381-Proactivity+-+23%2F11%2F2017 "Acal building momentum with its higher margin strategy 11:39 23 Nov 2017 The customised electronics firm said it has generated �good levels of organic growth� in the opening six months of its year, driven by new project wins and �favourable� market conditions Broker Peel Hunt is a buyer of the stock Peel Hunt reiterated its �buy� recommendation after the October trading statement, saying the momentum that started to build back in the fourth quarter of fiscal 2017 has continued through the first half of fiscal 2018. Organic revenue growth for the first half was 9%, which was thanks to a better trading backdrop, but Peel Hunt noted the group is also seeing an improvement in the quality of the order book. Shares in Acal PLC (LON:ACL) rose sharply at the opening bell on Monday after the customised electronics specialist revealed it expects full-year earnings to be ahead of expectations after a strong first half performance. The Guildford-headquartered group said it has generated �good levels of organic growth� in the opening six months of its year, driven by new project wins and �favourable� market conditions, particularly in continental Europe. �As a result, full year earnings are now anticipated to be slightly ahead of our expectations,� read this morning�s statement. The solid start is a continuation of the momentum Acal has been building in previous quarters. First-half total revenue jumped by 21% to �190mln for the six months ended 30 September compared with the same period last year (H1 16/17: �157mln). Organic sales in the Design & Manufacturing business � which accounted for 57% of the total revenue during the period � grew by 11%, while the Custom Distribution division saw sales rise by 7%. Group orders increased by 15% in the half, taking Acal�s forward order book to another record period end high. The group margin stabilised and was in line with the final quarter of last year, the company added. �The board is confident of making good progress through the rest of the year, continuing its established strategy of seeking high-quality revenue opportunities in our target markets, along with value-enhancing acquisitions.� Earlier this year, Acal agreed to buy out UK-based components manufacturers Variohm Holdings Limited in a deal which could be worth up to �13.85mln. Acal paid �12mln upfront, with a further �1.85mln payable should the new addition achieve certain growth targets and conditions. It is all part of a strategy to

Reads well re a new thermal imaging customer: Http://www.acalbfi.com/uk/articles/articlesContentPage/Pan-European-thermal-imaging-specialist--Acal-BFi--opens-the-potential-of-FLIRs-new-Lepton-3-micro-camera/NA-000767 "Pan-European thermal imaging specialist, Acal BFi, opens the potential of FLIR�s new Lepton 3 micro-camera Pan-European thermal imaging specialist, Acal BFi, opens the potential of FLIR�s new Lepton 3 micro-cameraAcal BFi, thermal imaging specialist and European leader in advanced technology solutions, is helping enable customers to easily access and design with FLIR�s Lepton� micro-thermal camera series, including the new Lepton 3. Joining Acal BFi�s range of FLIR solutions, including Boson� and Tau� cores, the recently announced thermal micro-camera offers outstanding performance in an ultra-compact package. As the pan-European technical design specialist for FLIR�s thermal camera cores, Acal BFi is a true �one-stop shop,� providing direct support and design consultancy services to customers. Acal BFi enables customers to develop customised designs for their innovative applications and products. Designers and engineers are now able to add the features, advantages and benefits of thermal imaging to applications and products which were, until now, unreachable due to size, weight, cost or power requirements. Combined with Acal BFi�s expert support and leading technology portfolio, thermal imaging and detection is now available to more sectors than ever before.... .....�With Acal BFi�s design support, customers can efficiently integrate the latest thermal imaging technology� Alex Schneider, Business Development Director of Acal BFi�s Photonics & Imaging Business Unit commented; �We are delighted to add Lepton cores to our portfolio of FLIR thermal camera solutions, alongside the Boson and Tau cores. Acal BFi technical support engineers will help OEM designers from more sectors and industries select the right thermal core, integrate it into new, innovative solutions and efficiently bring these to market.�

Edison produced a new report last month whilst I was on hols - it hasn't been posted here before, so FYI.... The suggested 35% discount to peers implies that ACL should be trading at almost 500p, compared to the current 320p: Http://www.edisoninvestmentresearch.com/research/report/acal249962/preview/ "Acal Trading update 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." "Valuation: Discount to peers has widened On an FY18e P/E of 15.4x and FY18e EV/EBITDA of 9.3x, the stock is trading at a c 35% discount to the peer group average for both multiples, compared to a 25% discount when we last wrote in July. The share was recently reclassified from Industrial Support Services to the Electronic & Electrical Equipment sector, and is trading at a c 30% discount to the new sector P/E. The strong order book, combined with good progress in the strategy to grow the Design & Manufacturing side of the business, provides confidence in both the near-term and longer-term outlook for the company. Continued growth in the proportion of revenue generated from design and manufacturing should support operating margin expansion, and should help to reduce the valuation discount. The stock is also supported by a dividend yield close to 3%." "Valuation After this upgrade, Acal is trading at a 35% discount to its peer group on current fiscal year EV/EBITDA and P/E multiples. This has widened from the 25% discount when we last wrote in July."