News blog
AIM 50 Digest 1 December 2023
- BY: Andrew Hore |
- POSTED: 04/12/2023 |
Electrical connections and accessories supplier Volex (VLX) had a mixed first half but continued to grow. In the six months to September 2023, revenues were 11% ahead at $397.5 million. There was a one-month contribution from the new acquisition. Pre-tax profit was 2% ahead at $22 million. The interim dividend is 8% higher at 1.4p/share. Electric vehicles have been a growth area, but destocking hit the interim figures – this is a temporary downturn in a fast-growing sector. Consumer electricals was also weaker, but better performances in medical and complex industrial technology have offset this decline. Supply chains are improving.
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Airline and tour operator Jet2 (JET2) improved interim pre-tax profit from £505m to £665m. The full year expectation is £500m. A second half loss is normal and winter capacity has been increased. However, the consumer is becoming more price conscious and profit could fall next year.
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SigmaRoc (SRC) has published the readmission document following the announcement of the purchase of the European lime assets of CRH (CRH). The building materials supplier has raised £200m via a placing at 47.5p/share with a further £1.3m raised from an offer. CRH is taking a 15.4% shareholding. The total consideration for the lime assets is $1.1bn, which is in three phases with the initial acquisition of assets in Germany, Czech Republic and Poland. In 2022, revenues were around $610m and EBITDA was $137m.
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Engineering services provider Renew Holdings (RNWH) continues to demonstrate its consistent progress. In the year to September 2023, revenues were 13% ahead at £960.9m, although the operating margin declined. Underlying pre-tax profit improved from £58.3m to £62.8m, which included a £3.9m contribution from other operating income. The specialist building division made a smaller profit contribution. The dividend was raised from 17p/share to 18p/share. Net cash is £35.7m. The order book is worth £860m.
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Grocery distributor Kitwave (KITW) has acquired Oldham-based drinks wholesaler Wilds of Oldham. The business has an annual turnover of £10.2m.
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Floorcoverings manufacturer Victoria (VCP) reported interims in line with expectations but warned that the second half was likely to be tougher. There was a dip in interim EBITDA from £100.1m to £95.8m on lower revenues. North America was the one region where profitability improved. There are cost savings to come, but the weaker markets will offset some of this benefit. Singer forecasts a decline in full year pre-tax profit from £76.9m to £60.5m.
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Vets operator CVS Group (CVSG) says sales were 12% ahead in the first four months of the financial year. Like-for-like sales were 5.8% higher. Margins are being maintained. Up to £50m in capital spending is anticipated for this year. Four acquisitions have been completed in Australia and two in the UK.
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Aquaculture company Benchmark (BMK) improved full year revenues by 7.5% to £169.6m and generated net operating cash of £20m through the reduction of the working capital outflow. Genetics and health revenues grew, but that was offset by lower revenues from advanced nutrition.
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GB Group (GBG) reported slightly lower interim revenues of £132.4m, while underlying operating profit before forex gains improved from £21.8m to £23.6m. A pre-tax loss was reported after an impairment charge. There will be stronger margins in the second half.
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Information management software provider Idox (IDOX) traded in line with expectations last year with revenues rising 11% to £73m and EBITDA 9% ahead at £24.5m. Net debt is £14.7m.
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Victorian Plumbing (VIC) is showing signs of recovery with full year revenues 6% higher at £285.1m. Underlying pre-tax profit recovered by 29% to £20.3m, helped by reduced shipping costs and higher own-brand sales. The dividend was raised by 27% to 1.4p/share. Revenues and margins continue to improve.
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Managed services provider Redcentric (RCN) improved interim underlying pre-tax profit from £2.5m to £2.9m. Full year pre-tax profit is set to recover from £5.1m to £7.1m as recent acquisitions are integrated. That should be enough to cover an unchanged dividend of 3.6p/share.
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Impax Asset Management (IPX) had £37.4bn of assets under management at the end of September 2023, an annual increase of 5%. The growth came from a strong investment performance. The results were slightly better than expected with underlying operating profit falling from £67.4m to £58.1m.
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Polar Capital (POLR) had assets under management of £19.2bn at the end of September 2023, which is similar to six months before. They had fallen to £18.9bn by 10 November. Interim core operating profit fell from £25.8m to £22.5m.
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Jersey Oil & Gas (JOG) has secured a second farm out agreement for its Greater Buchan Area project in the UK North Sea with Serica Energy (SQZ). The terms of the agreement are similar to the one secured with NEO. Serica Energy will earn up to 30% for a mix of cash and capital investment - $6.8m is payable on completion. Jersey Oil & Gas is fully funded until first oil for the Buchan field redevelopment.
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Ashtead Technology (AT.) has acquired ACE Winches for £53.5m. ACE Winches provides equipment to support installation and maintenance of offshore energy infrastructure and it has a significant rental fleet. In the year to March 2023, EBITDA was £10m.
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James Halstead (JHD) says that in the first five months of the financial year output and profit are ahead of the same period last year. Cash levels are also much higher.
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Pan African Resources (PAF) says that its operations are performing in line with or better than expected. Gold production for the six months to December 2023 will be in the range 94,000-98,000 ounces. It increased production guidance for 2023-24 to 180,000-190,000 ounces.
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Next 15 Group (NFG) says revenues were 2.5% ahead in the first quarter. Trading is in line with expectations with improving margins. Net debt levels are modest.
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Cinch Holdings has increased its stake in Vertu Motors (VTU) to 6.07% and Nivag Holdings has taken a 3.31% shareholding.
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Johnson Service Group (JSG) has completed its £10m share buy back with an average purchase price of 132.1p/share.
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