Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
REACT Group plc (AIM: REAT), the leading specialist cleaning, hygiene, and decontamination company, will be conducting a live investor presentation and Q&A session covering their Half Year results for the period ended 31st March 2023.
Shaun Doak (Chief Executive Officer), Andrea Pankhurst (Chief Financial Officer) and Mark Braund (Chairman) will host the online event on Thursday 29th June at 2.00pm.
Questions can be submitted before and during the presentation, and will be addressed at the end of it.
The presentation is open to all existing and potential shareholders - you can sign up to register below.
Link: https://www.equitydevelopment.co.uk/news-and-events/investor-presentation-half-year-results-29th-june-2023
UPGS hosted a capital markets presentation at the Exclusively Homewares exhibition in London’s Business Design Centre yesterday to discuss the upcoming re-brand of Salter as part of its overall brand rejuvenation programme. Having confirmed its expectations for FY2023 financial performance in a statement the previous week, prospects for a strong second half to the year remain in place.
UPGS’s belief that it will match market expectations in FY2023 is important. With an end-July year-end the company has significant visibility regarding the FY2023 H2 trading period. A £163m full year revenue figure would require double-digit growth in the second half, which would be impressive and something that the business is clearly confident of achieving.
Accelerated sales momentum in FY2023 H2, prospects of major benefits from a holistic approach to brand management and sustained commitment to serving the mass market with affordable “feel good” products for every home reinforce our view that fair value for UPGS’s shares is 250p. We base this view on 1.5x EV/sales and 12.2x EV/EBITDA.
Link to note with audio summary: https://www.equitydevelopment.co.uk/research/innovating-for-growth
New research note out from Equity Dev on the equity raise by R&Q Insurance in context of the strategic reshaping of the Group.
Read it and hear audio summary below:
https://www.equitydevelopment.co.uk/research/completing-separation-of-group-businesses
Link to new research report: https://www.equitydevelopment.co.uk/research/built-in-installations-enhance-growth-outlook
Marks Electrical’s preliminary FY2023 results confirmed the 21.5% sales growth and £7.5m EBITDA announced in the April trading update. The company generated £7.1m of free cash flow in FY2023 (vs. £5.7m a year earlier), to end the year with a £10.0m positive net cash balance. Moreover, sales gains were 30% in the first two months of the current financial year.
An upgraded built-in installations programme represents an important addition to MRK’s service offering. This activity is now managed in-house and enables the company to install appliances into fitted areas within dwellings – notably kitchens – using a specially trained team of installers including gas safe registered engineers. Built-in installations suit MRK’s focus on premium branded products.
MRK’s raised awareness levels were notable in London, where they increased from 12% to 22% between October 2022 and May 2023. Indeed, London now has the highest awareness rate for MRK in the UK, surpassing even the company’s East Midlands home region - a reinforced presence in the nation’s capital should be seen as a clear route to growth.
The key drivers of MRK’s investment case remain in place (see our initiation report: Lighting the touch paper). However, the consistency of overall approach should not mask significant ongoing changes and continuing improvements within the group as it enlarges the business overall. MRK’s delivery against service level, brand awareness, growth and cash generation objectives are not currently reflected in MRK’s share price, in our view. As a result we maintain our 150p fair value which implies FY2024 EV/sales of 1.3x and 16.2x FY2024 EV/EBITDA based on our current forecasts.
Vp plc (LSE: Vp.), the equipment rental specialist, conducted an investor presentation covering its Final Results for the year ended 31st March 2023.
Neil Stothard, Chief Executive Officer, and Anna Bielby, Chief Financial Officer discussed highlights of the period which included earnings growth despite the difficult backdrop, and an increased dividend. Management ran investors through a financial review, as well as detailed overview of markets and trading. They also answered a number of wide-ranging investor questions.
If you missed the live event, the video recording is available here and has been divided into chapters as below:
0:00:03 Introduction & Full Year highlights
0:02:35 Financial review
0:07:58 Markets & Trading review
0:21:15 ESG initiatives
0:24:03 Outlook
0:25:57 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/vp-plc-investor-presentation-fy-results-june-2023
Detailed new research report from Equity Development (with audio summary) here: https://www.equitydevelopment.co.uk/research/forecasts-exceeded-in-fy23-strong-start-to-fy24
In FY23, Tatton (once again) grew much faster than peers. AUM was up 12% y-o-y excluding acquisitions (peer group median: 0%) to £12.7bn on 31 Mar 23 (31 Mar 22: £11.3bn). Assets Under Influence (AUI) reached £13.8bn (including 8AM Global: 50% stake acquired in Aug 22). In just over two months post year-end, AUI has grown another 3% to £14.3bn.
The bulk of growth in FY23 came from exceptionally strong net flows of +£1.8bn (FY22: +£1.3bn); 16% of opening AUM (FY22: 14%) compared to a peer group median of 4% (FY22: 6%). Tatton’s ability to attract and retain assets has been far above peers for some time now. It has clearly designed, and is delivering, an outstanding proposition to clients.
Tatton has exceeded our previous revenue and profitability forecasts for FY23 and we think its differentiated offering within a market sweet-spot (on-platform Model Portfolio Services growth rate: c25% p.a.) will fuel continued strong growth. We increase our FY24 forecasts: revenue from £35.0m to £35.9m; adjusted operating profit from £17.9m to £18.2m. Our fundamental valuation rises from 560p to 580p.
The interim results from Driver Group were ahead of the profits guidance provided during the pre-close update in late April. Progress on costs has been made as the rationalisation programme has kicked in.
The EuAm (Europe & the Americas) region has generated a strong performance, with revenues and profitability at record levels and there is further scope on margins and utilisation levels. The smaller regions produced an improved performance, with expectations of delivering profits for the full year. Cash generation remained positive, with net cash amounting to over 30% of the market cap and NAV.
Despite the ongoing suspended estimates, the Group is on the path to recovery from FY22. We think the discount to the forward price/book ratio of its peers is too high, particularly in view of the cash.
https://www.equitydevelopment.co.uk/research/fires-extinguished-recovery-builds
Full details in our note published this morning: https://www.equitydevelopment.co.uk/research/fy2023-trading-update-welcome-regulatory-and-rd-progress
Summary: RUA Life Sciences trading update included Group revenues and year-end cash position were modestly ahead of our estimates, with other figures mostly in-line.
The highlight of the trading update was the agreement with the FDA on the requirements for the GLP animal study and 120-patient clinical trial required to secure US approval of RUA’s vascular graft. It is clear that RUA is on a pathway to the US approval of its vascular graft which should not be a surprise. RUA Contract Manufacture and RUA Biomaterials both have US customers with approved products. The trading update also provided detail on RUA’s Structural Heart polymeric heart valve product, noting the high bar that heart valves need to reach in terms of their mechanical properties, durability and functionality. RUA’s composite heart valve appears to be meeting these milestones and the current design was proposed as one that could be supplied to other companies.
In a subsequent announcement, RUA provided the details of a reorganisation of the Group resulting in its key experimental product businesses – RUA Structural Heart Limited and RUA Vascular Limited – into stand-alone subsidiaries 100% owned by the Group. We applaud this move on a transparency basis which fits with the trading update’s reporting on the segmented sales and net profit margins of RUA’s revenue-generating businesses, RUA Biomaterials and RUA Contract Manufacture. We would caution investors not to jump to the conclusion that one or more of RUA’s segmented divisions could be divested despite the illustrative basis of our valuation being as whole-product acquisitions. Instead, as the timelines for the vascular graft and heart valve products are different, the hive down of the two businesses allows the value and risks of each to be appreciated and provides visibility on where any possible future fundraisings are invested.
We await RUA’s final FY 2023 results in mid-July to update our financials and valuation. For now, our valuation remains at £121.0m (545p per share).
We published a new note today on Vp plc who published in-line numbers & a positive outlook, despite experiencing softer conditions in some end markets. Indeed impressively, FY’23 revenues, adjusted PBTA, EPS & ROCE came in at £371.5m (+6% vs LY), £40.5m (+4%), 79p (+11%) & 14.4% respectively. This reflects solid performances in UK infrastructure (e.g. energy, rail & water) and RMI, augmented by a bounce back in International (AirPac & TR), where EBIT margins expanded to 8.1% (+4.9%) on sales up 23.9% to £38.1m.
This puts the stock (at 650p) on attractive trailing EV/EBITDA, EV/EBIT & PE multiples of 4.3x, 8.6x and 8.2x – whilst similarly paying a generous 4.2% dividend yield. We believe this is simply too cheap for a best-in-class, GDP resilient business with a proven track record.
Link to our research report here:
https://www.equitydevelopment.co.uk/research/sustainable-growth-offering-65-potential-upside
for anyone who missed this week's in depth impax webinar with ceo ian simm and cfo karen ****burn, here is the video recording.
there are 29mins of management presentation + 25mins of audience q&a, watch it here:
https://www.equitydevelopment.co.uk/research/investor-presentation-interim-results-investor-presentation-may-2023
Followers of Minoan Group's long running luxury development project in Crete can read an update research note on progress, tourism and encouraging recent Greek elections.
Free access to note here:
https://www.equitydevelopment.co.uk/research/a-clear-route-to-realise-project-value
Research note now published : in H1 12% AUM growth and £1.1bn of net inflows were impressive vs peers. Although investing internally for further growth reduces short-term profit estimates, new Fair Value seen by Equity Development at 900p/share.
Read their full new note, hear summary below:
https://www.equitydevelopment.co.uk/research/poised-to-thrive-in-sustainable-investing-2.0
CEO reports 'a solid H1 despite challenging macroeconomic conditions'
6 months to end of March saw: AUM +12% to £40.1bn, net flows of + £1.1bn, interim div 4.7p, EPS down to 17.2p after internal investment.
CEO and CFO present at a webinar TODAY at 3pm, all investors are welcome - to join simply register here:
https://www.equitydevelopment.co.uk/news-and-events/impax-am-interim-presentation-31may2023
The backdrop to new anti-infectives continues to be supportive and the interim CEO has much relevant experience.
New research note out from ED after AGM with fair value still seen at 279p/share. You can read it in full/hear summary below:
https://www.equitydevelopment.co.uk/research/agm-update-and-ceo-transition
Another win for group as subsidiary SEA gets a £7m contract for anti-sub warfare from a SE Asian Navy.
As CEO says 'this further underpins our order book.' It also underpins ED's 650p/share fair value set out in last week's detailed note, with free access here:
https://www.equitydevelopment.co.uk/research/fy-23-trading-update-ahead-and-unified
Driver Group plc (AIM: DRV), the leading global professional services consultancy to the construction and engineering industries, providing multi-disciplinary consultancy services including expert witness, claims and dispute resolution services, will be conducting a live investor presentation covering their Interim results for the period ended 31st March 2023.
Mark Wheeler (CEO) and Charlotte Parsons (CFO) will host the online event on Thursday 15th June at 10.00am.
Questions can be submitted before and during the presentation, and will be addressed at the end of it.
The presentation is open to all existing and potential shareholders and you can sign up here: https://www.equitydevelopment.co.uk/news-and-events/driver-group-results-presentation-15june2023
With the equity issue completed, updated research published by ED that covers recent OEM contract wins, a review of the significant opportunity in the huge CT market, and comparison with Redlen takeover.
Pending more detail of the OEM deals, Fair Value still seen at 26p / share.
Full note here, free access: https://www.equitydevelopment.co.uk/research/funding-the-opportunity-in-medical-imaging
Marks Electrical Group plc, the fast-growing online electrical retailer, will be conducting an investor webinar following publication of their FY results.
The online presentation will be hosted by Mark Smithson (founder & Chief Executive Officer), and Josh Egan (Chief Financial Officer).
This event will take place on Thursday 15th June at 2.30pm.
The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Link to register: https://www.equitydevelopment.co.uk/news-and-events/marks-electrical-fyinvestorpresentation-15june2023
In a Trading Update for the year to 30 April 2023, Cohort plc expects performance to be slightly ahead of market expectations based on higher revenue. We note FY23 net funds reported at c.£15.0m - well ahead of ED estimated, at £4.6m - strong order intake of c.£218m (FY22: £186.7m), and a closing order book of £325m - at the Interim £304.2m. This underpins £145m, i.e. 83%, of our FY 24 estimated revenue, compared with 69% in FY23 (E). Overall, the update confirms the strength of momentum into the medium term with delivery projected to 2032.
At the Interim we raised our FY23 revenue outlook by 3% to £165m (+20%YoY) and maintained our (adj.) EBITDA outlook of £22.0m (+13.1%YoY). At this stage, our outlook remains unchanged, with the opportunity to review with full FY 23 results, and which indicates a FY23 EV/EBITDA of 8.9x; and for FY24 (E) 8.2x.
Our Fair Value remains at 650p/share.
Link to note: https://www.equitydevelopment.co.uk/research/fy-23-trading-update-ahead-and-unified
Benchmark Holdings plc, the aquaculture biotechnology company, conducted an investor presentation following publication of their Q2 & Interim results for the period to 31st March 2023.
Trond Williksen, CEO, and Septima Maguire, CFO ran investors through highlights of the period, which included strong performance across the three business divisions - Genetics, Advanced Nutrition and Health. They provided a detailed financial review and updated viewers on plans maintain a dual listing on Euronext Growth Oslo and AIM for the foreseeable future. Management also answered a range of investors questions.
The video has been divided into chapters as below:
0:00:00 Introduction
0:00:46 Q2 FY23 highlights
0:05:32 Operational Update in Genetics
0:13:57 Operational Update in Advanced Nutrition
0:17:20 Operational Update in Health
0:21:36 Financial Update
0:27:50 Outlook
0:37:33 Questions & Answers
Link to full video: https://www.equitydevelopment.co.uk/research/benchmark-holdings-investor-presentation-q2-results-may2023