Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
For the six months to 31 October 2023 Cohort reported revenue of £94.3m, +22%YoY, EBIT (adj.) of £6.0m, +20%YoY and (adj.) EPS of 10.36p (adj. dil., 10.33p). The closing order book further increased to £353.9m (FY23, £329.1m). With £90m of orders deliverable in H2 the Group reports that 95% of market consensus revenue outlook is covered, whilst the order book has longevity to 2033.
The net cash position was £13.3m compared to £15.6m at year-end FY23 and H1 23 net debt of £0.6m boosted by operating cashflow of £10.3m (H1 23: £7.7m). The Group raised the Interim dividend by 10% to 4.70p/share, maintaining the track record of progressive returns.
Cohort noted revenue growth in each division underpinned by UK MOD demand. Revenue in the Communications & Intelligence (C&I) division (EID, MASS and MCL) increased 32.3%YoY to £43.9m (46.3% of total). Revenue in the Sensors & Effectors (S&E) division (Chess Dynamics, ELAC Sonar and SEA) grew 14.7%YoY to £51.0m (53.7% of total).
Overall, these results confirm the all-important upward trend in orders and contract awards which in turn underpin revenue growth and visibility from operations which span the major theatres of defence operations. These interim results continue the pattern of order-led demand for Cohort’s expertise and services, linking the bigger picture issues that focus on defence to Group prospects.
Our Fair Value remains at 650p/share.
Link to report: https://www.equitydevelopment.co.uk/research/strong-h1-24-results-backed-by-a-record-order-book
Updated research note out from ED - revenues ests go up , adj profit and 175p fair value unchanged
Costs rise was impacted by new UK corporate tax rate covering whole period, plus investment in IT and recruitment/salary rises . Management confident in outlook.
Free access to the research here, plus audio summary:
https://equitydevelopment.co.uk/research/a-positive-outlook-as-insolvency-volumes-build
New report with audio summary available here: https://www.equitydevelopment.co.uk/research/a-year-is-a-short-time-in-scotch-malt-whisky
The Artisanal Spirits Company (ASC) announced on Friday that it expects both sales revenue and EBITDA to be lower than previous market expectations. Effectively the company is now on track to achieve our former FY2023 forecasts in FY2024. However, the underlying growth messages remain strong, supported by both membership growth and fresh strategic initiatives. While the FY2023 outcome is disappointing, our counter argument is that, given the long duration to maturity of the product, a year is but a brief period in Scotch malt whisky.
Despite its strength as a membership organization and substantial intrinsic value in relation to the maturing whisky mentioned above the ASC’s relative valuation is subject to a negative impact from international headwinds also being faced by its key distilled spirits and luxury brand owning peers. A 100p share price implies 3.8x EV/sales and a £70m market capitalisation.
We revise our fair value down from 150p a share to 100p, which still stands well above the current share price.
New research report & audio summary here: https://www.equitydevelopment.co.uk/research/interim-results-generate-more-cash
For the six months to 30 September ECO Animal Health reported revenue of £38.0m, +9%YoY, and (adj.) EBITDA of £0.7m (H1 22: £1.7m). Underlying currency-adjusted revenue growth was 15%YoY. Cash generated by operations of £4.8m compared to £3.0m a year earlier resulting in a period-end cash balance of £20.6m (H1 22: £12.9m). The loss per share was (1.93)p; (H1 22 1.95p). The gross margin at 40.8% contrasted with 45.3% in H1 22; we expect an H2 improvement based on sales mix and clarity of revenue outlook (the Group notes that 94% of market consensus outlook is covered by the order book and stock run rate), abetted by the traditionally strong demand in the northern winter months.
The combination of strong H1 performance in key markets (combined +19.6%YoY), continued strong cash generation and the seasonal nature of second half performance means that our full year FY24 and subsequent FY25 outlook is maintained.
On the basis of our FY24 and FY25 ECO Animal Health EBITDA outlook, and the peer group average EV/EBITDA multiple, the Group Fair Value indicated range is 137p – 146p per share.
Cohort plc (AIM:CHRT) is an independent technology group that comprises six military, electronics and intelligence development operations spread across the UK, Germany, and Portugal. Its senior management will give an Investor Presentation covering Interim results for the six months to 31st October 2023.
The event will take place at 4.15pm on Wednesday 13th December with Andy Thomis (Chief Executive) and Simon Walther (Finance Director) presenting from the company.
The online presentation is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
You can register at the link: https://www.equitydevelopment.co.uk/news-and-events/cohort-investor-presentation-13december2023
Driver Group plc (AIM: DRV), the leading global professional services consultancy to the construction and engineering industries will be conducting a presentation covering its Preliminary results for the 12 months ended 30 September 2023.
The online event will be hosted by Mark Wheeler, CEO and Charlotte Parsons, CFO and will take place at 12.00pm on Thursday 14th December.
Questions can be submitted during the presentation to be addressed at the end.
The presentation is open to all existing and potential shareholders - you can sign up to register here: https://www.equitydevelopment.co.uk/news-and-events/drivergroup-investor-presentation-14december2023
The management of Vp plc highlighted their continued strong returns, as well as discussing the opportunities to develop the businesses digital offering and build on the interest in products which fit clients' ESG priorities. They also covered how they are managing the challenges in the Construction division, while benefiting from growth in transport and energy in the Infrastructure division. The team then answered a range of questions asked by viewers.
Vp plc (LSE: Vp.) is an equipment rental specialist. Interim Results were for the six months ended 30 September 2023 and presented by Anna Bielby (CEO) and Judith McKenna (Group Financial Controller).
The full video has been divided into chapters, as below:
0:00:03 Introduction from CEO, Anna Bielby
0:00:56 Vp's business and Investment Case
0:03:01 Highlights of H1 period & Financial Review
0:09:17 Strategy
0:11:37 ESG
0:12:58 Digital
0:14:07 Operational Review & Vp's markets
0:17:23 Summary
0:18:18 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/vp-plc-investor-presentation-interim-results-30-november-2023
The management of Benchmark Holdings discussed revenue growth and improved profitability for the full year. They touched on the focus they've put into turning around the genetics business in Chile, alongside ameliorating the capital cost of running the CleanTreat boats and driving further take up of Ectosan. The team also provided a detailed financial update, commentary on the 2024 outlook, and answered a range of questions submitted by viewers.
Benchmark Holdings plc is an aquaculture biotechnology company and the presenters are Trond Williksen, CEO, and Septima Maguire, CFO.
The full video has been divided into chapters, as below:
0:00:42 Highlights of FY / Q4
0:08:44 Operational Update: Genetics
0:15:05 Operational Update: Advanced Nutrition
0:17:33 Operational Update: Health
0:21:31 Financial Update
0:33:00 Outlook 2024 & summary of Benchmark
0:39:39 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/benchmark-holdings-investor-presentation-fy-results-29-november-2023
The management discussed their 9% revenue growth, despite currencies headwinds for a large part of the first half, and strong visibility over second half revenue. The team talked about their expectation of H2 gross margin improvement, the new Aivlosin® claim approved in the US & Canada, and the exciting prospects for their R&D pipeline as highlighted in the recent Capital Markets Day. They also explored the topic of M&A and the opportunities for both product and regional bolt-ons. Management answered a wide range of questions asked by viewers.
ECO Animal Health Group (AIM: EAH) is a leader in the development, registration and marketing of pharmaceutical products for global animal health markets, Interim Results were for the period to 30th September 2023 and presented by David Hallas (CEO) and Chris Wilks (CFO).
The full video has been divided into chapters, as below:
0:00:00 Introduction and Strategy
0:01:30 Highlights
0:05:15 Revenues
0:10:06 Expenditures
0:12:36 Gross margin & EBITDA comments
0:19:10 ESG Summary
0:20:24 Balance sheet & cashflow
0:23:04 First approvals
0:26:05 Conclusion & Outlook
0:28:00 Questions & Answers
Link to video here: https://www.equitydevelopment.co.uk/research/eco-animal-health-investor-presentation-interim-results-29th-november-2023
ian simm (ceo) and karen ****burn (cfo) of impax am held an investor presentation covering full year results. they highlighted the growth in assets under management over the period (+4.8%) and high client retention despite challenging markets.
they provided a detailed financial update, discussed targeted investment to support growth, an increased product pipeline and strengthened distribution capabilities. the team also then answered a wide range of questions from viewers.
the full video is available below, divided into chapters:
0:00:03 introduction to impax am
0:02:01 fy23 highlights and business update
0:15:06 financial update
0:28:16 outlook
0:29:00 questions & answers
link to full video here: https://www.equitydevelopment.co.uk/research/impax-asset-management-investor-presentation-full-year-results-29-november-2023
Report link here: https://www.equitydevelopment.co.uk/research/fundraising-looks-well-supported
RUA have announced, subject to shareholder approval at a General Meeting, the intention to raise equity via the combination of an institutional placing of shares, a subscription by certain directors and a retail offer. While the minimum gross proceeds are expected to be at least £4.1m, the full amount raised will be fluid until after the retail offer and shareholder approval. The final proceeds raised should be known after the outcome of the Retail Offer is announced on 8 December, and shareholder vote then comes at the General Meeting on 18 December when we will update our financials and model.
As well as having revenue-generating divisions, RUA’s Structural Heart and Vascular divisions have products in late-stage development and its recent strategy update noted that these will be developed with partners. While partnering greatly reduces RUA’s cash burn in FY 2024 and beyond, the fundraising also eliminates a potential weakness in the size of the upfront payments, royalties and milestones for those deals. This is because before a successful fundraising, potential partners could attempt to offer less, and defer more. After a successful fundraising, RUA should be able to demand better terms from its potential partners.
For now, our valuation is unchanged at £120.3m or 542p per share, but we will update our financials and valuation after the completion of the fundraising and RUA’s interim results on the same day.
Link to note:
https://www.equitydevelopment.co.uk/research/fy-23-results-consolidation-and-cash-generation
For the year to 30 September 2023, Benchmark Holdings reported revenue FY23 of £169.6m, +7.5%YoY (currency adjusted +7%YoY) which was 0.7% below our outlook, and adjusted EBITDA of £35.5m, +9%YoY, 5% above our outlook. Net operating cash of £20.0m was almost double FY22 (£10.8m) with a notable improvement in working capital management from £(12.0)m to £(1.0)m underlining efforts to control costs and improve operational efficiency. Net debt was £45.6m, with year-end cash at £36.5m.
The Group reports Genetics operations at normalised levels, early signs of a recovery in shrimp markets positive for Advanced Nutrition, and in the Health segment improved Q1 24 demand visibility with Clean Treat® at improved capacity utilisation. Most significantly, in FY23 the Group exhibited discipline in cost and cash management which establishes a sound platform for growth in FY24.
We revise down our FY24 revenue outlook by -6% and for FY25 by -7% principally due to a 24% reduction in the outlook for Health. For (adj.) EBITDA the adjustments are -4% in FY24 but +3% in FY25, indicative of continued improvements expected in operational efficiency. We maintain our fair value at 63p/share.
Hercules' deal for Future Build Recruitment is both highly complementary and earnings enhancing.
Equity Development see HERC as materially undervalued and keep a 60p/share Fair Value, as you can hear/read in the new note out today. Free access here:
https://www.equitydevelopment.co.uk/research/building-for-the-future
Resilient FY results despite tough market conditions. AUM rose 4.8% to £37.4bn with several new institutional mandates won. Adj. diluted EPS fell to 35.2p, and FY total div held at 27.6p
Read detailed (20 page) analysis of results and outlook here, free access: https://www.equitydevelopment.co.uk/research/a-tough-year-but-clear-fundamental-value
Yes it is available now at the link: https://www.equitydevelopment.co.uk/research/supreme-plc-interim-results-investor-presentation-video-28-november-2023
Note out from Equity Development here: https://www.equitydevelopment.co.uk/research/trading-update-1
RUA released a trading update ahead of its December interim results announcement. In contrast to the previous year, revenues have been weighted to the second half and while this has suppressed first half revenue growth, October’s and November’s revenues have largely caught up to align with management’s budget expectations.
RUA’s recent strategy update and its trading update have several common themes. The reliance on partnerships to fund the development of RUA’s products in RUA Structural Heart and RUA Vascular should reduce R&D and Admin expenditure and conserve cash to provide a pathway for the Group to reach profitability. The continued emphasis on tight resource control is expected to help with this objective.
Our valuation is unchanged at £120.3m or 542p per share.
Just a reminder that we are hosting an Investor Presentation and Q&A at 2pm today with Supreme's CEO and CFO - you can sign up here to register: https://www.equitydevelopment.co.uk/news-and-events/supreme-investor-presentation-28november2023
Link here: https://www.equitydevelopment.co.uk/research/strong-h1-results-raise-full-year-outlook
The H1 outcome was as indicated in the recent (18 October) Trading Update. Group guidance for the full year is now raised: from revenue of £195m - 205m to £210m - £220m (ED estimate was £204.2m); (adj.) EBITDA from £28m - £30m to £32m - £35m (ED estimate was £29.0m). From incremental EBITDA of c.£4.5m, c.£1.5m arises from core operations and c.£3.5m from the Elf distribution agreement, which supplies retailers including Tesco, Morrisons, One Stop and WHSmith.
A series of initiatives – branding and pod vape developments in particular – mean that the Group can demonstrate a realistic strategy for the potential changes in the vaping market. Supreme also reports completion of its supply and distribution centre (the ‘Ark’), noting its capacity to support both organic growth and potential M&A opportunities, with £35.3m of borrowing facilities available.
Following the Group’s increased FY24 guidance (revenue raised 7%, and (adj.) EBITDA by 14% -17%), we have raised our outlook to revenue of £221.2m, +8%, and (adj.) EBITDA of £33.5m, +16%. We expect a FY24 total dividend of c.£5.1m, with £1.7m paid at the Interim. Our Fair Value is raised to 225p/share.
New research report here: https://www.equitydevelopment.co.uk/research/strong-h1-results-raise-full-year-outlook
The H1 outcome was as indicated in the recent (18 October) Trading Update. Group guidance for the full year is now raised: from revenue of £195m - 205m to £210m - £220m (ED estimate was £204.2m); (adj.) EBITDA from £28m - £30m to £32m - £35m (ED estimate was £29.0m). From incremental EBITDA of c.£4.5m, c.£1.5m arises from core operations and c.£3.5m from the Elf distribution agreement, which supplies retailers including Tesco, Morrisons, One Stop and WHSmith.
A series of initiatives – branding and pod vape developments in particular – mean that the Group can demonstrate a realistic strategy for the potential changes in the vaping market. Supreme also reports completion of its supply and distribution centre (the ‘Ark’), noting its capacity to support both organic growth and potential M&A opportunities, with £35.3m of borrowing facilities available.
Following the Group’s increased FY24 guidance (revenue raised 7%, and (adj.) EBITDA by 14% -17%), we have raised our outlook to revenue of £221.2m, +8%, and (adj.) EBITDA of £33.5m, +16%. We expect a FY24 total dividend of c.£5.1m, with £1.7m paid at the Interim. Our Fair Value is raised to 225p/share.
Link here: https://www.equitydevelopment.co.uk/research/delivering-growth-in-uncertain-markets
Vp’s interims confirm another solid performance and continued growth despite the challenging backdrop. Revenue increased by 2.4% to £190.9m and adjusted PBT by 1.9% to £21.9m. This is >50% of our full year forecast (trimmed by c.4% to bring us in line with consensus).
Infrastructure demand has driven a positive H1 performance for Vp’s Groundforce, Torrent and TPA businesses. Vp’s experience is consistent with the latest construction industry data, which showsinfrastructure demand offsetting weakness in general construction and housebuilding. Vp is well positioned to benefit when these softer markets return to growth.
The period was notable for the change in leadership with Anna Bielby succeeding Neil Stothard as Group Chief Executive. Keith Winstanley has been appointed Group CFO and joins the Group in January 2024. We expect the refreshed management team to build on the Group’s strong foundations, with Digital innovation and ESG commitment at the forefront of Group strategy.
Following recent share price moves, Vp still trades at a marked discount to its immediate peers and its historic average rating. Over the long term, Vp has traded on a P/E rating of c.12x and the valuation at today’s share price represents a 30% discount to this level. We maintain our Fair Value estimate of £10.90 per share.