Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.
RUA Life Sciences’ interim results include in-depth updates on the development of its vascular graft and aortic heart valve products. They also provide more detail on its cash-generative businesses which together are now segmented into Vascular, Structural Heart, Biomaterials and Contract Manufacture. For the latter two, a 56% increase in revenue compared to the same six-month period in 2021 left our previous FY 2023 forecasts of total revenue and cash looking a bit anaemic with the Board’s expectations of a second-half weighting for biomaterials revenues, contract manufacturing revenues, and the R&D Tax Credits still to be received.
The culmination of higher revenues and working capital control highlighted changes that needed to be made to our revenue and YE 2023 cash estimates. These are incorporated into our financials but since the bulk of our valuation remains in RUA products in development, our valuation remains unchanged at £121.0m or 545p per share. We await updates in 2023 on the timings of the vascular graft clinical study and at RUA Structural Heart.
https://www.equitydevelopment.co.uk/research/messages-from-the-interim-results
Full report here (free & accessible here): https://www.equitydevelopment.co.uk/research/fy22-results-deliver-sustainable-growth
For the year to 30 September 2022, Benchmark Holdings reported revenue of £158.3m, +27%YoY and (adj.) EBITDA of £31.2m, +60%YoY. The Group highlighted 14%YoY growth in the Advanced Nutrition business area, as shrimp market demand continues to recover, and 24%YoY growth in Genetics as the new Iceland salmon eggs facility came on stream. FY22 EBITDA (adj.) was in line with the upper end of the Trading Update of 24 October; revenue was 3% above our October estimates, EBITDA (adj.) 14% higher. EBITDA (adj.) margin improved from 15.6% in FY21 to 19.7%, maintaining progress from 13.7% in FY20.
Following FY22 performance which matched updated guidance – reiterating Benchmark’s ‘delivery’ strategy - our FY23 and FY24 outlook is essentially unchanged, with top line and EBITDA growth maintained; LBT is reduced as a result of debt restructuring undertaken in November 2022. Our outlook equates to a FY24 EV/EBITDA of 9.1x, and Fair Value is still seen at 63p/share.
Link to video: https://www.equitydevelopment.co.uk/research/supreme-plc-investor-presentation-29nov2022
Supreme (AIM:SUP), a leading manufacturer, supplier and brand owner of fast-moving consumer products, conducted an Investor Presentation covering its Interim Results for the period to 30th September.
Sandy Chadha (CEO), Suzanne Smith (CFO) and Mike Holliday (Vaping Divisional Lead) ran viewers through the details of their financial performance that included strong ongoing growth in Vaping as well as the already-trailed challenges in Lighting. The team touched on acquisitions, latest developments in Sports Nutrition & Wellness and answered a range of investor questions.
If you missed the live event, the full video presentation recording is available at the above link, divided into chapters:
0:00:03 Introduction to Supreme / key investment highlights
0:03:23 Financial highlights and analysis
0:15:58 Lighting
0:18:19 Sports Nutrition & Wellness
0:19:40 Vaping
0:28:02 Acquisitions & Investment
0:37:16 Questions & Answers
FDA approval of Ferring’s Rebyota can open a new era of microbiome drug approvals, and comparison with M3 should further motivate potential partners for Destiny
Equity Development fair value is unchanged at 345p/share as per new research note available here:
https://www.equitydevelopment.co.uk/research/validation-for-microbiomes
Full note with audio summary: https://www.equitydevelopment.co.uk/research/trading-update-/-completion-of-billi-acquisition
Ongoing lockdowns in South China have impacted two of the Group’s largest OEM customers during the busiest period of the year, delaying the shipment of products. Associated costs have increased as an additional warehouse has been retained to deal with future lockdowns. Uncertainty created by the war in Ukraine and its implications have also impacted wider demand across several key markets. Little improvement is anticipated ahead of H2 ’23. The good news is that the completed acquisition of Billi strengthens the group’s product portfolio, pushing it into new products, geographies, and commercial markets. We expect Billi to be modestly earnings accretive during FY23, with wide-ranging synergy benefits improving its impact further into FY24.
We have reduced our financial estimates across the board for FY22 and FY23, although we continue to feel that the shares remain modestly priced relative to both our cash flow expectations and its peers. The yield remains the highest of its listed peers, at 8.2% for FY22.
We have adjusted estimates to reflect the inclusion of Billi and the softer than anticipated trading within Kettle Controls, with revenues declining 5% in FY22 and adj. EPS -16.6%. Nevertheless, we anticipate that revenues and adj. EBITDA should increase by 19.9% and 9.7% on a three-year CAGR to FY24. We have also adjusted our dividend expectation, although at the current share price level this still implies a sector leading yield of 8.2% in the current year.
The share price currently stands at an all-time low. We have updated our DCF and various peer group comparison valuation models, which give a fair value of 188p/share. Our fair value represents a significant premium to the existing share price.
in H1 LendInvest continued to grow and gain market share, despite a worsening macro-economic environment. Its financial results were solid and Equity Development retains a 180p/share fair value, as per new note here:
https://www.equitydevelopment.co.uk/research/solid-h1-amidst-weakening-macro-environment
Link: https://www.equitydevelopment.co.uk/research/benchmark-holdings-investor-presentation-fyresults-30nov2022
Benchmark Holdings plc, the aquaculture biotechnology company, conducted an investor presentation following publication of their Full Year results for the year ended 30 September 2022.
Trond Williksen, CEO, and Septima Maguire, CFO ran investors through operational highlights for each key division (Genetics, Advanced Nutrition, Health) and provided a detailed financial review. Management discussed their forthcoming Oslo listing, touched on the possible impact of the Norway salmon tax proposal, and answered a range of investor questions.
If you missed the live event, the full video is now available on the above link, divided into chapters:
0:00:03 Introduction & FY22 highlights
0:05:13 Euronext Growth Oslo listing / placing & retail offer
0:06:20 Operational highlights by division
0:16:15 Financial Review
0:30:32 Strategy & Outlook
Video recording now available: https://www.equitydevelopment.co.uk/research/impax-am-investor-presentation-fy-results-30nov2022
We hosted an investor presentation with Impax Asset Management plc (AIM: IPX), leaders at investing in companies helping the transition to a more sustainable global economy, following publication of their impressive results for the 12 months to 30 September 2022.
Ian Simm (CEO) and Charlie Ridge (CFO) took investors through highlights of the period which included net inflows of £2.9bn. They provided a detailed financial update and discussed opportunities in the current environment. Management also touched on the outlook and answered a range of investor questions.
If you missed the live event, the video recording of the presentation is available at the above link, divided into chapters:
0:00:03 Introduction
0:03:25 Highlights and Business Update
0:18:33 Financial Update
0:28:23 Outlook
0:30:33 Questions & Answers
FY22 results were highly impressive despite market challenges, and Equity Development's fundamental value rises to £10/share – as you can read (free access) in a detailed new research note via link below, with audio summary:
https://www.equitydevelopment.co.uk/research/revenue-profit-cash-dividends-up-materially
RUA Life Sciences (AIM:RUA), the holding company of a group of medical device businesses focused on the exploitation of the world's leading long-term implantable biostable polymer (Elast-Eon), will be conducting an Investor Presentation covering their interim results for the period ended 30th September 2022.
The event will take place at 11.00am on Monday 12th December with Bill Brown (Chairman) and Caroline Stretton (CEO) 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.
Sign up to register: https://www.equitydevelopment.co.uk/news-and-events/rua-life-sciences-investorpresentation-12dec2022
ECO Animal Health Group plc (AIM: EAH), a leader in the development, registration and marketing of pharmaceutical products for global animal health markets, conducted a live presentation for investors covering the company's Interim Results.
David Hallas, CEO, and Christopher Wilks, CFO ran through investors through the highlights of the period which included growth in all markets excluding China. The team discussed the well documented revenue decline in China but also the recovery in pork prices since April, as well as ongoing progress with the R&D pipeline. Management also answered a range of investor questions.
If you missed the live event, the full video has been divided into chapters for ease of viewing:
0:00:12 Introduction & Highlights
0:03:20 Financial Highlights and revenue analysis
0:13:52 Research & Development / Admin expenses
0:15:50 EBITDA bridge / balance sheet / cashflow
0:20:34 China: pork pricing
0:21:58 ESG update / R&D update
0:25:04 Operational improvements / Outlook & Conclusion
0:29:07 Questions & Answers
Link to video - https://www.equitydevelopment.co.uk/research/investor-presentation-interimresults-28nov2022
Solid H1 results from Vp as H1 sales rose +5.9% to £186.5m. It trades on modest CY EV/EBITDA and EV/EBIT multiples of 4.5x and 9.0x respectively and Equity Development retains its headline FY23 numbers and fair value of £11.30/share
Read new research note here, free access:
https://www.equitydevelopment.co.uk/research/the-strong-get-stronger
NB management webinar this Thursday
Link to full note & audio summary (free and accessible): https://www.equitydevelopment.co.uk/research/h123-results-buoyed-by-strong-performance-from-vaping
For the six months to 30 September, Supreme reported revenue growth of 6%YoY to £64.6m, EBITDA (adj.) of £8.1m, -19%YoY and PBT (adj.) of £5.8m, -31%YoY. Revenue was underpinned by 47%YoY growth in the Vaping division, with, notably, 31%YoY organic growth. Interim revenue was 5% ahead of our outlook and EBITDA (adj.) 4% below. The Group notes that trading in the Lighting division, which had negatively impacted the FY23 outlook, is now recovering; Supreme notes that improved overall revenue momentum indicates that full year Group performance should be ahead of prior market expectations.
Interim operating cashflow was £4.9m (H1 22, £4.2m), with (adj.) net debt of £14.6m and cash of £5.4m (FY22, £3.9m). Reflecting a policy of 25% net profit pay-out, the Board has proposed an Interim dividend of 0.8p/share (payable: 13.01.2023). We have raised our FY23 revenue outlook by 7% from £129.5m to £138.3m, based principally on strong organic growth in Vaping, and raised our FY23 EBITDA (adj.) outlook from by 6% to £18.5m. For FY24, we have raised our revenue forecast by 6% from £142.2m to £150.5m. However, given continued uncertainties for the impact of inflation on consumer demand, input costs and pricing, we have maintained our FY24 EBITDA outlook at £22.2m. Our estimates indicate a FY24 EV/EBITDA of 5.6x.
Our Fair Value remains 190p/share.
Polar Capital Holdings plc (AIM: POLR), the specialist active asset management group, conducted a presentation covering its Interim Results for the six months ended 30 September 2022.
Gavin Rochussen (Chief Executive Officer) and Samir Ayub (Finance Director) ran investors through the key highlights of the period, a detailed financial review, and provided an update on fund performance as well as AuM & Fund Flows. The management team also answered investor questions.
If you missed the live event, you can watch the full presentation replay, which has been divided into chapters for ease of viewing:
0:00:03 Overview & Highlights
0:01:14 Market Perspective
0:03:05 Fund Performance & Capacity
0:07:53 AuM & Fund Flows
0:12:21 Financial Review
0:23:07 Strategy & Outlook
0:29:00 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/polar-capital-24nov2022-interims-presentation
Benchmark Holdings plc, the aquaculture biotechnology company, will be conducting an investor webinar following publication of their Full Year results for the year ended 30 September 2022.
The online presentation will be hosted by Trond Williksen, CEO, and Septima Maguire, CFO.
This event will take place at 12.00pm on Wednesday 30th November.
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-fyresults-presentation-30nov2022
Tatton Asset Management (AIM: TAM), the investment management and IFA support services Group, conducted a presentation covering its Interim Results for the six months to 30th September.
Paul Hogarth (Chief Executive Officer), Paul Edwards (Chief Financial Officer) and Lothar Mentel (Chief Investment Officer) took investors through the key highlights and financial performance of the period, which included best-in-class growth and record net inflows. The team provided detail on Strategy as well as an Investment and Fund update, and answered investor questions.
The video has been divided into chapters for ease of viewing:
0:00:03 Introduction
0:01:24 Key highlights
0:05:20 Financial performance
0:12:10 Strategic update
0:26:09 Investment and Fund update
0:35:02 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/tatton-am-investor-presentation-nov2022
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, Ian Simm and CFO, Charlie Ridge will conduct a live presentation reviewing their results for the 12 month period ended 30 September 2022.
The event will take place on Wednesday 30th November at 3.00pm.
The online presentation is open to all existing and potential shareholders and is free. Questions can be submitted before and during the presentation, and will be addressed at the end.
Sign up to register here: https://www.equitydevelopment.co.uk/news-and-events/impax-am-fyresults-presentation-30nov2022
In our 18 October note, we stated how impressed we were with Tatton’s strong net inflows during H1-23 (to 30 Sep 22), an extremely testing economic period. These totalled +£907m (H1-22: £652m), an annualised rate of 16% of opening AUM, just offsetting a negative investment performance of -£905m (-8.0% of opening AUM compared to the MSCI PIMFA Private Investor Balanced Index fall of -9.6%), leaving AUM at £11.3bn (£12.3 bn including c£1.0bn of ‘assets under influence’ from the acquisition of 50% of 8AM Global, growing to £12.9bn in the post-results period).
With more peers releasing trading updates since that note, Tatton’s performance now looks even more impressive than first thought. It was the ONLY company in our peer group that grew AUM, with all comparable peers recording AUM declines (between 5% and 11%).
We highlight the significant growth potential beyond their three-year plan: Tatton is in a growing market with significant tailwinds; it has a market-leading proposition and is gaining market share; it has a huge opportunity to grow AUM even without winning new clients (by increasing average AUM per client); and it can accelerate growth through strategic partnerships and acquisitions.
Our core value is 500p per share, 14% above the current share price. This increases from 460p on better-than-expected interims and a fall in the 10-year Gilt rate, the risk-free rate in our DCF valuation.
Note and audio summary (free & accessible) here: https://www.equitydevelopment.co.uk/research/best-in-class-growth-in-very-difficult-markets
ECO Animal Health Group plc (AIM: EAH), a leader in the development, registration and marketing of pharmaceutical products for global animal health markets, is pleased to confirm that David Hallas, CEO, and Christopher Wilks, CFO, will be conducting a live presentation covering the company's Interim Results.
The online presentation will take place on Monday 28th November at 10.00am.
This event is open to all existing and potential shareholders and registration is free. Questions can be submitted during the presentation and will be addressed at the end of it.
Sign up to register here: https://www.equitydevelopment.co.uk/news-and-events/ecoanimalhealth-resultspresentation-28nov2022
Link to full report and audio summary: https://www.equitydevelopment.co.uk/research/core-profit-margin-still-over-30-in-brutal-markets
AUM fell 15% in H1-23, from £22.1bn on 1 Apr 22 to £18.8bn on 30 Sep 22. Unsurprisingly, given the widespread sell-off in equities, investment performance accounted for -£2.1bn of the fall, with net outflows of -£0.8bn, and the closure of the Phaeacian funds in the US -£0.5bn.
Despite gloomy markets, there are multiple positive signals and signs of management confidence:
- Positive net inflows were recorded in multiple funds, including Global Insurance, Biotechnology, Healthcare Blue Chip, Smart Energy, European ex-UK Income, Emerging Market Stars, Forager and Global Absolute Return, and net outflows from open-ended Technology funds have slowed.
- Polar has reported a strong pipeline of investor interest in multiple strategies, and that the short list of new potential investment teams is larger than for many years.
- The board has declared an interim dividend of 14.0p per share, unchanged from H1-22 (if the total full-year dividend is maintained at 46p, that would be a yield of 9.7% at today’s share price).
- Directors’ have made over £2.2m of share purchases, in cash, during 2022.
We maintain confidence in the strength of Polar’s strategic positioning, and that it is well positioned to return to growth, despite significant short-term uncertainty. Our fundamental valuation is 600p per share, 27% above the current share price, and we flag that Polar’s PER of 9.3, is undemanding and below a peer group median of 10.0.