Q1 23 : Bolloré drops down to normal

After a stellar 2022 owing to a buoyant environment, Bolloré returned to normal with revenues down 11% yoy (organic) in the Q1 23. The Logistics division was the main detractor from Bolloré’s performance stemming from falling air and sea traffic in tandem with lower freight rates. The decline in oil prices hampered Bolloré Energy, which recorded a 16% organic decline. The slight bright spot is the communications division, up 2%.

Significant implications of the reshuffling of the Bolloré assets

In the space of two years, Bolloré has completely reshuffled its portfolio from being a logistics giant industrial conglomerate to a media company, so to speak. After the sale of its historical logistics activities in Africa to the Italian shipowner MSC, it is now the balance of the logistics activities that are going to be taken off the table. While the proceeds of the previous operation were redistributed to shareholders, these could end up financing a Vivendi takeover.

The end of Bolloré's logistics era

Having sold the logistics activities in Africa, it is now the turn of the whole Transport and Logistics division to leave the Bolloré portfolio. Bolloré announced today that it has entered into exclusive negotiations with the CMA CGM Group to sell its Transport & Logistics business for a €5bn cash-free/debt-free enterprise value. This move comes as a surprise given Bolloré’s long-standing appeal in the sector and its leadership position, but does make sense from a financial perspective.

Opening a new chapter in Bolloré's equity story

Despite not being as impressive as 2021 with the spin-off of UMG, 2022 remains a milestone year for the industrial conglomerate which saw the handover of its historic chairman and the exit from Bolloré’s African logistics business. While we had been wondering about the HoldCo’s next moves with its pockets now filled, Bolloré will propose a simplified cash tender offer for c.10% of its share capital. The outlook for 2023 looks less promising with an expected drop in oil prices, freight rates and

Closing the Bolloré Africa Logistics chapter

Much like 2021, 2022 will be a milestone for Bolloré, marked by the transfer of the group to the new generation in February and the closing of the Bolloré Africa Logistics chapter. We see this €5.7bn deal, which opens the door to the reshuffling of the HoldCo’s portfolio, as positive from both a financial and a timing point of view. Combined with the record results expected for 2022, we reiterate our favourable opinion on the stock.

Bolloré is maintaining its upward momentum but for how long?

Bolloré closed another upbeat quarter, posting impressive revenue growth of 16% lfl yoy in Q3. Again this quarter, Transport & Logistics and Oil Logistics were the main growth drivers, benefiting from higher freight rates and the sharp rise in oil prices. But as the acquisition of the Bolloré Africa Logistics division by MSC looms, oil prices might revert back, and since Vivendi did not perform so well this quarter, questions are being raised about the sustainability of Bolloré’s growth.

The big winner of market turmoil

Bolloré closed an upbeat H1 2022, posting impressive growth in revenues, EBITDA and net income. Transport & Logistics and Oil Logistics were the main drivers of these record results, both of which benefited from the current economic climate: higher freight rates and a sharp rise in oil prices. All in all, impressive results that should please investors.

Q1 22: Bolloré gets off to a good start in 2022

Bolloré closed an impressive Q1 with strong revenue growth across all divisions. The group’s Transport and Logistics activity was boosted by the increase in freight forwarding and the Oil Logistics activity was supported by the strong rise in oil prices in the context of the war in Ukraine. The electricity storage and systems business also witnessed a boost in sales with higher sales of buses, plastic films and specialized terminals.

After UMG-led FY21, all eyes are on the Africa Logistics disposal

Bolloré’s 2021 was a milestone year, marked by the successful spin-off of Vivendi’s crown jewel UMG and the surprising announcement of a potential exit of Bolloré’s historical African logistics business. The 2022 outlook will be marked by this major deal, opening the door for a complete revamp of the HoldCo’s portfolio in the hands of the new generation, which formally took over the family endeavour in February.

An eventful Q3 elevated by solid revenue growth across core businesses

Bolloré closed an upbeat Q3, posting impressive revenue growth for its Transportation & Logistics business, as well as a sales surge for Oil Logistics boosted by rising oil prices. On the Vivendi side, the de facto takeover bid of Lagardère following its agreement signed with Amber Capital points to the family’s next major move after the successful completion of the UMG spin-off, which has led to the Bolloré parent holding an 18% stake on the now independent crown jewel.

French media rumours of Bolloré exiting African activities

Bolloré could be looking to exit its long-standing logistics activities in Africa according to French media. Although the company has not commented on the matter — so it remains all speculation — we see this potential move as a clear positive. Bolloré is faced with the high capital intensity of the business while affronting competitive pressures from deeper-pocketed and expanding rivals. Supportive valuations for logistics & port operators and the upcoming departure of Vincent Bolloré suggest th

Bolloré's grasp on Vivendi set for major shake up

In a letter addressed to Vivendi, Bolloré has committed to not ask the French market authority (AMF) for an exemption of launching a takeover bid on Vivendi, triggered if the HoldCo finds itself crossing the regulatory threshold of 30% of the share capital.

Q1 21: Transportation & Logistics shines, will 2021 be its breakout year?

Bolloré closed a strong first quarter for its Transportation and Logistics division, partly offset by the weakness from Oil Logistics, while Vivendi was led once again by top performer UMG (soon to be spun-off). The transport and logistics activity outperformance was driven by the strong trading environment stemming from global inventory rebuilding efforts as cyclical sectors emerge from a post-pandemic slumber, a trend that should extend through H1 21.

UMG spin-off adds a new dimension to the investment thesis

Vivendi has finally revealed its future plans for UMG, with Bolloré now finding itself as one of the major beneficiaries from the upcoming spin-off of what is, by far, Vivendi’s most valuable asset. This surprising development, which has been most likely orchestrated by Bolloré (up to a certain extent), could result in a complete rethink of the HoldCo’s investment strategy for years to come.

Invinity Energy Systems - New Sale Could Build Familiarity

A sale of four VS3 Invinity flow batteries shows continued positive momentum for the company. This deal goes further as we see it building familiarity for the company’s storage technology with key members of the workforce in the North American electricity industry.

LIBERUM: Yü Group* - Yet more upgrades

Initial Equity Trading Comments - 15 May 2023

Invinity Energy Systems - Further US Sale

A further sale in the USA shows that Invinity is seeing growing momentum in the country. With the Inflation Reduction Act now creating storage specific tax credits for the coming decade while the Bipartisan Infrastructure Law offers significant incremental support for long duration energy storage, we see this market as a key opportunity for the company.

LIBERUM: Eneraqua Technologies* - Initiation - Saving money... and the planet

RSL budget pressures impact margin expectations

FY23 results confirm strong growth, delivering adj. PBT of £10.1m (SCMe: £9.8m, FY22: £5.6m). Investors are likely to focus on the outlook however, where we materially reduce our earnings forecasts. Registered social landlord clients are reacting to significant budget pressures, with high levels of cost inflation exceeding government rent caps. In response, clients have rephased project schedules, prioritising lower cost per unit, typically lower margin, projects as they right-size capital budge

ITM Power (ITM LN) - Trading update

ITM has released a trading update, refining guidance for the full year to April 2023, and reporting progress on the company’s ongoing project to refocus its business on manufacturing delivery and scale up

Morning Note – 11 May 2023

Hybridan Research: Sector Review: Critical minerals for UK - mining and battery recycling: 09-05-2023

Virgin mining: Energy security and decarbonisation are driving the race in the sourcing of critical minerals from the natural world. This has contributed to the revival of exploration activities in the US, Europe and to a lesser degree the UK. For example, the global identified lithium resources increased from 40m tonnes in 2015 (the Paris Agreement year) to 97m tonnes in 2023, at a CAGR of 12%, according to the U.S. Geological Survey data. For example, there was no identified lithium resources

LIBERUM: Wincanton - FY results in line, exit from closed book transport

Hybridan Small Cap Feast - 23 Feb 23

23rd May 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 objectiv

LIBERUM: ATOME Energy * - Significant expansion of Villeta, BH joins the register

Webinar: “The Impact of US IRA on Clean Energy Companies”

The US Inflation Reduction Act will have sweeping impacts on the energy industry and its participants. We’ve invited four companies from the Active Net Zero Universe to share how they see the industry evolving, helping investors identify the major risks and opportunities. Companies presenting are EQTEC (EQT LN), Foresight Group (FSG LN), Invinity Energy Systems (IES LN) and Velocys (VLS LN). The Active Net Zero Universe uses the same selection methodology as the Solactive Active Net Zero Global

Powerhouse Energy - Northern Ireland Site Identified

Powerhouse has today announced an agreement with Noage Energy to establish a project in Northern Ireland using Powerhouse technology to convert waste to energy. Noage have identified a potential site and work is due to commence to negotiate access and to obtain the necessary permits for construction and operations. This follows the joint venture with Hydrogen Utopia International to develop a waste to hydrogen project in the Republic of Ireland announced earlier this year and displays a growing

In the Flow

Industry flows - bond funds remain preferred over equities Risk appetite for equity funds remained subdued with last week seeing $4bn net outflows (negative in 8 of the last 9 weeks). Flows worsened sequentially for Asia/EM categories, but improved for US and European equities. Bond funds saw inflows for a 10th straight week (c.$8bn) with broad based inflows across US government, IG and HY funds. Listed asset managers flows - inflows into ETFs, outflows from mutual funds ETFs net inflows contin