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Few retailers can boast the enviable track record of JD Sports, the ambitious multi-channel ‘athleisure’ business with a fashion-forward offering that combines the major sportswear brands with established own-label ranges. The company’s expanding international footprint is about to be enhanced by a potentially game-changing recently announced US acquisition, which has yet to be reflected in the consensus forecasts.
Companies: JD Sports Fashion Plc
The "king of trainers" is up 8% today after seeing "material growth" in online and overseas sales.
The high street retailer's shares have jumped off the back of their interims today.
Sports retailer's revenues jumped 20% to £970m
JD’s P/E ratio appears reasonable relative to those of other UK retailers of young fashion with international ambitions. However, it is almost twice the level of rival Sports Direct’s (SPD). While there are justifications for a healthy premium, it is likely to act as a brake on the valuation, as will the low dividend yield.
Continued strong trading so far in H2 has led JD to upgrade its full year PBT guidance to c£135m, leading us to upgrade our forecasts by 3.8% from £130m (cons £125m). JD’s prospects look favourable given the ongoing trend towards athletic apparel and footwear, suggesting there may yet be further upside risk to forecasts. However, limited disclosure at a time when divisional and geographic complexity is on the increase makes this difficult to be certain of. With the stock trading on a cal’16 P/E
Singer Capital Markets
AMINO TECHNOLOGIES (AMO LN) Starting to rebuild - Buy | CVS GROUP PLC (CVSG LN) Strategically positive corporate news strengthens growth thesis | IOMART GROUP (IOM LN) Underpinned, with upside from further acquisitions | JD SPORTS FASHION PLC (JD/ LN) Continued strong trading drives 3.8% FY’16 upgrade | SIGMA CAPITAL GROUP PLC (SGM LN) Development of PRS begins ahead of schedule
Companies: AFRN CVSG IOM JD/
JD has delivered an excellent first half result, ahead of our forecast – although, it should be noted that in the absence of any performance details having been released in H1, forecast visibility was low. The beat against our estimate stemmed from the core Sports fascias. The combination of operational initiatives and positive end market trends suggests to us that forecast risk could still be to the upside there. Outdoor is still loss making and continues to carry surplus A/W14 stock, but chang
JD has delivered a strong H1 performance, led by the core Sports fascias where we estimate LFL growth to have continued at the rate seen in H2 (i.e. +12%). This is an important achievement signifying strong growth on growth, and confirms that the favourable trend in athletic footwear and apparel is continuing. We have upgraded FY’16 PBT by 13.6% as a result. It is hard to know if this 2-year run rate can be sustained over the seasonal peak, when densities are higher, but if it can then further u
Avon Rubber (AVON LN) | Hill & Smith Holdings (HILS LN) | JD Sports Fashion (JD/ LN) | UDG Healthcare (UDG LN)
Companies: AVON HILS JD/
Although Oxford Street capex will be >10% of JD’s £70m FY budget the use of funds is not excessive. With international aspirations JD needed to raise its profile in London to attract attention from brands and future partners. So whilst securing the lease came at a significant cost, the flagship is a key stepping stone for future development. On the £3m fit-out it should generate a direct return - the store could break-even in Jan’16 and over time could make £1-2m EBIT. The site visit serves as a
Goals Soccer Centres (GOAL LN) Mixed H1 trading update – we downgrade from Buy to Hold | JD Sports Fashion (JD/ LN) New flagship in Oxford Street well worth the capital investment | NCC Group (NCC LN) Finals show strong performance from core businesses | Spirent Communications (SPT LN) Weak first half but Q2 order intake stronger | Summit Therapeutics (SUMM LN) FDA grants Fast Track designation for SMT 19969
Companies: GOAL NCC SPT SUMM JD/
The FTCs decision to challenge Synergy’s merger with Steris has precipitated a sharp fall in the share price to a level we think looks compelling whether Synergy remains independent or not. If the merger completes, then a quick 20%+ return is possible. If not, then we expect Synergy to be more explicit in its growth ambitions, which in turn should lead to forecast upgrades. We therefore move the stock back onto the Buy list.
Applied Graphene Materials (AGM LN) First patent approval secured | Futura Medical (FUM LN) AGM statement shows continued progress | JD Sports Fashion (JD/ LN) Strong start to the year and confidence in meeting FY expectations | MJ Gleeson (GLE LN) FY15 results to be ahead of expectations following strategic land sale | Redcentric (RCN LN) Clean year showcases organic growth | Ten Alps (TAL LN) Extracting value and putting TAL on a growth path | The Innovation Group (TIG LN) £46m contract win wi
Companies: AGM FUM GLE RCN SDG JD/
Companies: AGM FUM RCN JD/
Research Tree provides access to ongoing research coverage, media content and regulatory news on JD Sports Fashion Plc.
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In an AGM trading statement today, Surface reiterated previous guidance1 that, with good progress being made in all departments, profitability should be achieved in 2022e. Further, following communication from the Group’s largest customer, OEM 8, on production and delivery schedules, Surface has now commenced high volume series production of its carbon ceramic brake discs. We expect deliveries to OEM 8 to ramp up over the next two months. Deliveries to other significant customers are also contin
Companies: Surface Transforms plc
No Joiners Today.
Raven Property Group has left the Main Market.
What’s cooking in the IPO kitchen?
Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or req
Companies: TRB CWR CCS DMTR EMAN GTC JSE KIBO MDZ SYM
Seeing Machines has announced that it has been appointed by an existing global automotive Tier-1 customer to deliver its FOVIO Driver Monitoring System (DMS) for an existing global automotive group. This programme is to be delivered via Seeing Machines' embedded Driver Monitoring Engine software, is led out of North America and covers a broad array of vehicle models for safe level 2-3 semi-autonomous driving and meeting anticipated regulatory requirements. The appointment comes with minimum volu
Companies: Seeing Machines Limited
Moderating freight costs, rental cost savings and selective price increases have driven a 30% upgrade to our FY22E adjusted PBT forecast.
Companies: Shoe Zone PLC
No Joiners Today.
Tungsten Corp and Sensyne Health have both left AIM. Hibernia REIT has left the Main Market.
What’s cooking in the IPO kitchen?
Visum Technologies seeking admission to The AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June.
LifeSafe Holdings, a fi
Companies: SOLI REDX POS UFO GML PHC
CAP-XX has announced that it has expended its product offering to include Lithium-ion Capacitors (LICs). LICs are also called hybrid supercapacitors as they blend two different technologies; the positive electrode is like a supercapacitor, and the negative electrode is similar to a Li-ion battery. CAP-XX hybrid supercapacitors maintain key benefits of batteries, including higher operating voltage (3.8V) and increased energy density, while maintaining traditional characteristics of supercapacitor
Companies: CAP-XX Limited
Solid State is a specialist value added component supplier and design-in manufacturer of computing, power and communications products. Following the group's trading update in February, when we raised our 2-year earnings expectations by c.10%, Solid State this morning reports an exceptionally strong end for the year to 31 March 2022 as positive trends in trading continued and well-publicised semi-conductor supply chain challenges were controlled. As a result, FY 2022E group revenue is now anticip
Companies: Solid State plc
Shoe Zone’s accelerated digital strategy and defined store rationalisation programme, alongside decisive action on cost control and cash preservation, means the Group is emerging from the pandemic as a leaner, stronger and more resilient business. Robust cash generation means we expect the Group to be debt free and able to reinstate its dividend in the current year.
A brief year end update this morning confirms that Gleeson has hit its 2,000 home strategic target during FY22, as planned. This is a considerable achievement, representing a doubling of home sold over the past five years, a period which included the COVID pandemic. We make no changes to forecasts this morning, with a more detailed update due on 11th July. Against a sector that has de-rated materially, we note that Gleeson has particularly underperformed peers over the past month and its previou
Companies: MJ Gleeson PLC
Solid State’s trading update this morning notes that, following an exceptionally strong finish to FY22, it expects the group to announce a 28% increase in revenues year-on-year to a record c £85m and a 33% jump in adjusted profit before tax to c £7.2m, also a record. Consensus FY22 and FY23 adjusted PBT estimates, which were upgraded in February, have been raised by 11% and 12% respectively.
Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world's largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021. Cellular Goods a UK-based provider of premium consumer products based on biosynthetic cannabinoids announced its intention to join the main market (standard) this spring. Target valuation £20m raising c. £8m “to finalise the development and launch
Companies: SYM ABDX LOAD BPM TND BRCK PRES ENET CDGP
Shoe Zone is upgrading FY21E Adjusted PBT expectations to £8.0m, a 22.7% upgrade to our previously published forecast of £6.5m, following initial work done as part of the ongoing yearend review process. The benefit of this upgrade also flows through to FY23E where we increase our forecasts by the same quantum. Despite the recent share price rally, we continue to believe Shoe Zone trades at a deep discount to its fair value, with a return to the dividend list anticipated in the current financial
Solid State is a specialist value added component supplier and design-in manufacturer of computing, power and communications products. Interim results this morning read well, illustrating both a record six-month period, including very strong performances from both Willow Technologies and Active Silicon acquisitions, and an order book as at 30 November standing at a record £70.3m. While global supply chain challenges will continue to need to be successfully managed, the Board remains confident of