Q1-2022/23: Strong earnings, despite continued distortions in the energy markets

EVN reported better than expected results, despite persisting distortions on internal energy markets combined with unfavourable framework conditions, with revenues up by 30.3% to €1,174 bn. Although the group managed to benefit from high prices on energy markets and volatility, as well as valuation effects on the hedging positions, it also suffered from mild weather conditions in all markets, leading to lower energy demand, but also from a negative earnings contribution from its energy supply en

FY21/22: Unprecedented market distortions weigh on earnings

EVN reported a decline in the operational result versus the previous year amidst exceptional market conditions that weighed on earnings, and more particularly in the generation and energy business units against the backdrop of the current geopolitical situation and the resulting impact of inflation. Energy supply and networks were once again the two main sectors recording a decrease in EBITDA due to higher procurement costs and impairment losses. These disappointing results, combined with the co

H1 21/22: market distortions to drive earnings contraction

EVN saw its operating figures decline versus the previous year as the group struggled to deal with the significant energy market distortions. The networks and supply activities faced extra costs with a relative inability to pass these through to end-customers, or with a lag on a best-case scenario. The full-year net income guidance was confirmed but the overall message sent to the market was negative. With windfall taxes starting to show their teeth in Austria, cautiousness must prevail.

FY20/21: a beat this year, a miss next year ?

EVN beat expectations for FY20/21 (September-ending fiscal year), reaching a net result 50% above guidance and 20% above our estimate. Electricity prices, on average 2x higher yoy on the spot market and 3.5x on the forward market, obviously were the main driver. The dividend proposal, €0.52 per share, is 6% higher than our expectation. However, the net result guidance for FY21/22 seems very conservative, 17% and 24% lower than the consensus and our expectations, respectively. Perhaps a little

9M 20/21: good volumes, good prices, good momentum

In line with its first part of the year, EVN released a satisfying 9M 20/21 set of results. EBITDA came in 27.5% higher yoy, ahead of our expectations, driven by weather-related strong volumes in a very positive power price environment. In particular, its exposure to hydro generation and gas networks were key. Business fundamentals are improving, partially explaining the very strong momentum of the stock (+25% since March 2021), even if the equity stake in Verbund is not unrelated. Positive

Satisfying H1 20/21 driven by favourable weather

EVN released a solid set of H! figures (September-ending fiscal year), beating our expectations. The group’s EBIT was up by 10.3% yoy as it benefited from the commissioning of a new wastewater treatment plant in Kuwait, as well as favourable weather conditions in Austria which drove energy prices and volumes higher. FY20/21 guidance confirmed, but now considered to be conservative in the light of the solid start to the year. Positive view confirmed.

HY19/20 - dividend confirmed

EBITDA and EBIT increased by more than 15%, on the back of the recovery of EVN KG and the Energy business line, but also non-recurring elements. Electricity decreased by more than 25%, mainly due to thermal assets, which are on the front line in dealing with the drop in demand – renewables output was roughly stable. The group confirmed its dividend policy.

FY18/19 in line

FY18/19 results are broadly in line with estimates. Sales were pushed by the growth in renewable generation and higher demand for heat, which offset the lower revenues in the Networks segment and the gradual reduction in thermal electricity production. But, because of higher operating expenses, EBIT grew at a slower pace. Net debt was broadly flat compared to Q3. The guidance of the bottom line is satisfactory.

The upper end of the guidance is now targeted

The group published a mixed set of Q3 figures, operating figures decreased more than expected but the group was able to reduce its net debt and reassure by targeting the higher end of the full-year guidance. Also, the wind capacity expansion is promising and well on track.

Higher Austrian power prices hurt EVN’s supply business

EVN released quite a weak set of Q1 results, marked by the lower performance of retail activities following a rise in power prices in Austria, lower networks remuneration and lower capacity payments received for grid stability services. The 2018/19 outlook has been confirmed.

Warmer weather and regulatory headwinds slow the FY17/18 results

EVN reported a mixed set of FY17/18 results. Sales were down by 6.5% on lower thermal output and warmer weather. However, EBIT was up 13% as it benefited from positive comps (last year’s P&L was impacted by impairment losses in the generation business), lower D&A expenses and lower cost of materials. Net debt decreased by 20%, to €963.7m, allowing gearing to reach 23.5%. Management gave a conservative €160-180m FY18/19 bottom-line guidance.

Tougher comparatives and regulatory headwinds weigh on Q2-17/18

EVN reported a fairly weak set of H1 results, marked by a strong decrease in thermal electricity generation, lower revenue from natural gas trading and less favourable and lower tariffs in the gas network business in Austria. The group’s conservative FY17/18 targets have been maintained.

Lower energy costs and network tariffs support a good 2017/18 start

• Revenues fell as mild weather negatively impacted volumes sold and distributed. • Margin improvement through lower energy costs in its major divisions. • Outlook confirmed, with net income inbetween the 2015/16 and 2016/17 result.

An exceptionally good year

• Results supported by positive weather conditions which increased distributed and sold volumes • Positive effect from increased volatility in Austria–Germany and the need to use thermal assets for network stability in addition to the one-off effect from the settlement with NEK • Exceptional dividend to be paid following the strong results

Full-year guidance and dividend raised

The group has raised its full-year outlook and dividend payment prior to its full-year 2016/2017 publication in December. EVN expects net income to be €250m (up 25% from the previous level) driven mainly by positive balance sheet effects (hedging and provisions) and higher distribution and energy sales volumes. As a result, the group will propose a dividend of €0.44/share and a one-time bonus dividend of €0.03/share.

Somero Enterprises - FY22 results in line, a fairly flat year ahead

FY results were in line with the January trading update, with modest revenue growth and higher overheads resulting in a slight profit decline. Australia and Europe delivered record revenues, while US sales were marginally off last year’s record. The Houghton expansion was delivered on budget and is now operational, increasing capacity and capabilities for future growth. We reduce FY23 EPS by 4.8% with TP lowered from 760p to 705p. The shares remain at a significant discount to peers on a P/E of

Morning Note – 8 March 2023

FY22 Financials

Capital Limited (LSE: CAPD) released its full year results (YE Dec 2022) this morning. The company had already released the operational figures for the year including revenue so focus is on EBITDA and below as well guidance. Having said that it is impressive that this is the third consecutive year Capital has delivered material growth in revenue, with full year sales increasing 28%, following 68% YoY growth in 2021 and 18% YoY growth in 2020. Moreover the company is guiding to $320-340m for FY23

Hybridan Small Cap Feast - 21 Feb 23

21 February 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objec

Revised forecasts

LIBERUM: Costain Group* - Free cash more than 50% market cap

LIBERUM: Yü Group* - Strong momentum and cash flow

LIBERUM: Wincanton - Contract loss and closed book headwinds

Probability of strategic change increases - revising PT to 12p (from 20p) on a break-up basis

Supreme plc: disposal of T-Juice intellectual property

Supreme reports that it has entered into an agreement with an associated company of La Vape Professionelle Distribution (LVP), a leading French wholesaler of e-cigarettes and e-liquids, for the disposal of the intellectual property (IP) of T-Juice, inclusive of the Red Astaire brand. Supreme will receive an upfront payment of €4.5m (£3.97m) in respect of T-Juice brand IP, with the addition of income from consultancy services. The agreement ushers in a new strategic partnership in which Supreme

Cenkos: Smart Metering Systems Plc -- Strong results - FY23E & FY24E upgrades

Smart Metering Systems (SMS) has announced strong FY22 results in-line with January 2023 upgraded forecasts. The smart meter installation run-rate accelerated during FY22, with 480,000 meters installed, ahead of expectations. With the installation run-rate reaching 45,000 meters per month during H2/22, SMS is on track to install an expected 600,000 meters in FY23E. The battery storage portfolio increased to 760MW by FY22 and has grown further to 860MW as of 13 March 2023. The first 140MW of batt

ITM Power - Test Capacity To Remove Blocks

The increase in power capacity at Bessemer Park is a positive sign that action is being taken to address the causes of the historic production delays that ITM has faced. Improved testing from one to two 2MW stacks and the scope for this to increase further combined with increased power availability throughout Bessemer Park ought to help ITM in reducing their order backlog and scaling up production over the coming year.

LIBERUM: Kier Group - Strong H1 performance but some headwinds expected in H2

Hybridan Small Cap Feast 08/03/22

What’s cooking in the IPO kitchen?** Fadel Partners, a developer of cloud based brand compliance and rights and royalty management software, working with some of the world's leading licensors and licensees across media, entertainment, publishing, consumer brands and hi-tech/gaming companies intends to join the AIM market. FADEL has two solutions, being IPM Suite and Brand Vision. Expected Admission date is late March 2023. Onward Opportunities Limited intends to join the AIM market. The Company'

ITM Power (ITM LN) - Bessemer Park power supply upgrade

Immediate higher power supply to increase module testing capacity. ITM has announced an agreement to significantly increase the power supply into its Bessemer Park manufacturing facility in the UK. Existing power supplies are now 7.5MVA, reflecting a recent increase from 5.0MVA. This will now allow testing of two 2MW modules at the same time.