focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
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
For the six months to 31/3/2023, Benchmark Holdings reported revenue of £98.9m, +24.8%YoY (currency-adjusted +19%YoY), and (adj.) EBITDA of £22.1m, +39.2%YoY (currency-adjusted +36%YoY), a 22.3% margin. Adjusted for the fair value of biological assets, the increase in (adj.) EBITDA was 47%YoY. Underlying the strength of H1 performance, net operating cash inflow of £9.5m was almost 5x H1 22 levels, with net debt reduced to £44.5m (FY22: £47.5m) and cash including facilities at £53.9m. As CEO Trond Williksen commented, after three years of consolidation the Group is now in a position to enter a phase of organic expansion, with the potential for bolt on acquisitions in core areas - under strict criteria.
Benchmark also reports that, having completed consultations, it plans to maintain a dual listing on Euronext Growth Olso and LSE AIM, and continue to review listing on the Oslo Børs.
At this stage we maintain our FY23 outlook. We expect revenue drivers in the core Advanced Nutrition business area to normalise and gather pace towards the year end. Revenue in Genetics continues to be driven by firm demand for salmon eggs; we note the pace of diversification in Iceland and Chile. Likewise, demand in Health should accelerate in line with sea lice seasonal demand. Our fair value for Benchmark remains 63p/share.
Link to full report: https://www.equitydevelopment.co.uk/research/h1-23-results-a-robust-base-for-expansion
Vp plc (LSE: Vp.), the equipment rental specialist, will be conducting a presentation covering its Final Results for the year ended 31st March 2023. The presentation will be hosted by Neil Stothard, Chief Executive Officer, and Anna Bielby, Chief Financial Officer.
The event will take place at 11.00am on Friday 9th June.
The online presentation is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Register here to sign up: https://www.equitydevelopment.co.uk/news-and-events/vp-plc-finalresults-investorpresentation-9june2023
Today’s Annual General Meeting trading update from The Artisanal Spirits Company (ASC) confirms that the positive underlying sales momentum enjoyed in FY2022 has continued into the current year. The group remains confident of delivering both sales growth and EBITDA in line with expectations. Moreover, sales growth is expected to be at least double digit % in the second quarter after a relatively flat Q1.
We base our 150p fair value/share, which implies a 4.9x FY2023 EV/sales ratio, on a relative valuation when compared with leading listed distilled spirits companies and luxury goods providers. ASC is simultaneously exposed to both these categories given its emphasis on ultra-premium-and-above Scotch malt whiskies.
Furthermore, the £493m updated notional retail value of the company’s maturing whisky stocks is currently over 6 times today’s market capitalisation.
Link to report: https://www.equitydevelopment.co.uk/research/agm-statement-confirms-growth-momentum
Trading update from BEG anticipates FY'23 nicely ahead of Equity Development forecasts: revs seen 11% ahead and adj. PBT +16%.
Outlook for growth is confident which underpins ED's retained 175p / share fair value.
You can read/hear new note here, free access:
https://www.equitydevelopment.co.uk/research/update-shows-fy23-well-ahead-of-forecasts
Tatton Asset Management (AIM: TAM), the investment management and IFA support services Group, will be conducting a presentation covering its Full Year results for the period to 31st March 2023.
The event will be hosted by Paul Hogarth (Chief Executive Officer), Paul Edwards (Chief Financial Officer), and Lothar Mentel (Chief Investment Officer).
The online presentation will take place at 11.30am on Thursday 15th June, and is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
You can sign up to register here: https://www.equitydevelopment.co.uk/news-and-events/tatton-am-fy-results-investor-presentation-15june2023
Link to research report with audio summary: https://www.equitydevelopment.co.uk/research/agm-statement-momentum-maintained
In a statement accompanying the AGM, Mpac Group reports that the positive momentum of Q4 22 has been maintained, with order intake and quotation activity significantly ahead year-on-year. As expected, pressure on working capital has eased - the completion of orders and shipment of equipment means that Q1 23 closed with a positive net cash position, which is expected to be maintained in H1.
This is a clear validation of the steps undertaken in the latter part of FY22 and a strong positive indicator for the current year. We note that Mpac expects trading to be second-half weighted, with the order book sufficient to meet revenue expectations. The positive momentum reported should continue.
The core message of this AGM statement is that Mpac continues to focus on its key markets, notably Healthcare and Food & Beverage, where the shortage of key components in FY22 constrained the ability to deliver, and where there is now evidence of healthy demand.
Our fair value for Mpac remains 485p/share, indicative of a FY24 EV/EBITDA multiple of 7.9x.
impax asset management plc (aim: ipx), leaders at investing in companies helping the transition to a more sustainable global economy, is pleased to announce that their ceo & founder, ian simm and cfo, karen ****burn will conduct a live presentation at 3.00pm on wednesday 31st may.
they will review their results for the six-month period ended 31 march 2023 and answer questions from the online audience. 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 at no charge. you can register your attendance here:
https://www.equitydevelopment.co.uk/news-and-events/impax-am-interim-presentation-31may2023
Benchmark Holdings plc, the aquaculture biotechnology company, will be conducting an investor presentation following publication of their Q2 and Interim results for the period to 31st March 2023.
The online presentation will be hosted by Trond Williksen, CEO, and Septima Maguire, CFO.
This event will take place at 12.00pm on Tuesday 23rd May.
The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Sign up to register here: https://www.equitydevelopment.co.uk/news-and-events/benchmark-2qresults-presentation-23may2023
Looks another nice fitting bolt-on. BEG has built quality and scale organically and via value-accretive deals: buying Banks Long & Co ticks the box
Equity Dev holds its forecasts until FY trading update, expected later this month, and retains its 175p/share fair value. Read in new note here, free access:
https://www.equitydevelopment.co.uk/research/acquisition-extends-property-division-footprint
Along with good news re microbiome segment, DEST have announced positive early results from its joint collaboration with SporeGen® on the prophylactic product SPOR-COV® (to prevent respiratory infections. There is more to DEST than just M3 and XF-73.
Read/hear new research note on this out from Equity Dev here:
https://www.equitydevelopment.co.uk/research/another-string-to-the-bow
Mattioli Woods (MW) has acquired 50.1% of White Mortgages Limited (White) with an option to purchase the remaining 49.9% within 24 months. White is based in Lincoln and specialises in providing independent mortgage advice as well as protection insurance advice. In the year to 31 Mar 23 it generated revenues of £0.68m and PBT of £0.35m. White looks like a good fit: MW’s existing advice proposition is extended by adding a new in-house mortgages capability, and the White business is well-positioned to benefit from being fed more business from MW’s large adviser-base.
It looks like a low-risk deal for MW which has paid £0.425m on a cash-free debt-free basis for its first-tranche 50.1% stake of White (a pre-tax PER of just 2.4X). The second tranche of the deal for the remaining 49.9%, if exercised, will be for a consideration of up to £2.625m, dependent on the attainment of specified targets being met. We would expect the deal to be earnings enhancing and therefore, if the second tranche is exercised with a performance-linked payment in place, we would foresee the full deal PER as being less than 8.7x, an attractive proposition for MW shareholders.
We remind readers that acquisitive growth is a core part of MW’s strategy. It has a long track record of success with 34 acquisitions (excluding White) since its admission to AIM in 2005.
Link here: https://www.equitydevelopment.co.uk/research/acquisition-engine-spinning-smoothly
Yes. The methodology is consistent so if the share price has appreciated beyond a fair value without any of the criteria involved in calculating a fair value having changed - the fair value will not be raised.
By definition, if our publicly stated role ( www.equitydevelopment.co.uk ) has for over 20 years to help sound and under appreciated companies become better understood by investors of all types (particularly private investors denied access to broker research) - then we are looking for businesses that our sector specialist analysts believe to be inappropriately rated .
Full new research note with audio summary from Equity Development available here:
https://www.equitydevelopment.co.uk/research/welcome-news-of-progress
The pre-close trading update from Driver Group was encouraging, with static revenues (signifying rising productivity), improving profitability and margins, and the move into the black for the first time in two years within the Middle East region. Cash levels continued to improve, highlighting the collection of doubtful debts and higher profitability. We expect the solid foundations put in place by the management team over the last 12-18 months will provide a strong base from which to grow meaningfully over the medium term.
Although our estimates remain suspended pending further visibility, we note the NAV (FY22 end: £16.4m or 30.3p / share) and net cash account for 35.1% of the market cap. DRV’s wider consultancy peer group, trades on an average prospective P/B ratio of 4.4x, suggesting that a re-rating of DRV shares looks overdue now that an inflection point has been passed. Our fair value/share remains 49p.