Conduit Holdings Limited: 1 director

A director at Conduit Holdings Limited maiden bought 15,000 shares at 530p and the significance rating of the trade was 73/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two ...

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...

Interim results and agreed 125p cash bid

Creston has published its interim results to end September, which show flat revenues with a like-for-like 4% decline. There was, however, a step up in PBIT margin from 10.3% to 11.6%, reflecting operational efficiencies from the Unlimited initiative and other planned overhead reductions, along with some benefit from currency. The company has this morning received a cash bid of 125p per share from DBAY Advisors, which controls 28.0% of the equity, recommended by the independent directors. Our for...

Margin benefits

Creston’s AGM statement this morning confirms that trading is in line with expectations for the current year and our forecasts for both FY17 and FY18 are unchanged. Revenue in the first four months of FY17e was broadly flat over the previous year, but profits are more strongly ahead. This is partly currency-related, partly reflecting improvements to margins stemming from FY16’s operational initiatives showing through more strongly. The valuation remains at a marked discount to peers, despite the...

Outlook: Steady going

Creston’s full year results exceeded the expectations that had been set in January, with constant currency like-for-like revenues and headline PBT flat on the prior year. The group is making good progress in leveraging its Unlimited group branding, with an increasing number of clients working with several group agencies. Good cash conversion has led to a higher year-end cash position – there is no debt, enabling a progressive dividend (up 5% year-on-year) on a yield well ahead of sector and ...

Update: Strong cash performance

Creston’s brief year-end trading update indicates that FY16 revenue and earnings figures will be in line with indications given in January and our expectations. However, the cash performance is significantly better than we had anticipated at over £1m. FY17 should benefit from more focused recent attention to overhead management after the less consistent trading in H216, with no trading improvement currently factored in. The valuation remains at a significant discount to other smaller marketin...

Update: January headwinds

Continuing strong new business wins over the first nine months of Creston’s financial year have not been sufficient to offset the revenue impact of project delays and retrenchment of some client budgets in Q4. The group’s underlying positioning, with its broad spread of clients and capabilities, is sound, its cash conversion is strong and the balance sheet is only likely to show c £0.5m net debt by the March year-end. These short-term revenue setbacks will dampen the rating until more consi...

Update: Slower H1, better momentum H2

Creston’s interim results outline a busy period of acquisitions, start-ups, investments and partnerships, which are showing through in a strong new business performance, with some high-profile names added to the client roster. This is tempered by the twin impacts of currency movements and the slower start to the year – previously signalled – but of a larger quantum than expected in the health sector. Underperformance of the share price has left the valuation at a discount to peers, which s...

Outlook: One year in

Creston has achieved its objectives for the first year of its five-year plan. The agencies have been brought under unified branding; gaps in the offer filled through acquisition, partnership agreements and minority stakes; and financing renegotiated on improved terms. The balance sheet is in good shape, back in net cash post recent acquisitions. Our model shows the 11% FY15 earnings growth being followed by gains of 6% in FY16 and FY17, despite the investment being made to drive the top line. Th...

Update: A Splendid deal

Creston’s trading update confirms that consensus forecasts for FY15 have been met. It has also announced the acquisition of How Splendid, which specialises in managing the digital user experience. The cash deal (£8.7m for 51% initially, with call options for the balance over the next three years) is expected to be earnings enhancing in FY16. Splendid ticks a lot of boxes – extending the range of digital marketing services; bringing in longer-term consultancy income; adding clients and incre...

Update: Slower revenue growth in H2, profits intact

Creston’s IMS indicates a continuing strong new business performance across a broad range of verticals, encouraging us that the benefits from restructure are starting to come through. Q3 revenues have been under pressure in the UK part of its Health division, but the effect at the group earnings level is offset by careful management of overheads. Growing the consultancy revenue stream should improve the quality of earnings, while bringing together strands of the commercial offer within the Cre...

Institutional Comment: Daily comment

Update: First fruits in bud

Creston’s new strategy is showing its first fruits, with its integrated agency approach opening up new referral and pitching opportunities. H114 revenues up by 5% (like-for-like at constant currency) is a respectable result and new business wins give momentum for H2 and FY16. The newly announced partnership with Serviceplan adds the potential to access more international markets without the need for investment. £4.9m of net cash (after contingent deferred consideration) gives Creston the flex...

Update: On message

Today’s Q1 IMS confirms Creston is on course to meet FY15 expectations, with like-for-like revenues ahead 2%. At constant currency, this would have been c.3% and we have made marginal forecast adjustments on this basis. Q1 new business performance has been good, with wins from a broad spectrum of clients across a range of activities, mostly using the group’s extensive digital expertise. The increased internal co-operation is clearly starting to pay off in cross- and up-selling, which should ...

Institutional Comment: Daily comment

Outlook: Outlook Unlimited

Creston has delivered full year results slightly ahead of expectations, and with year-end cash of £7.5m (£5.7m after provisions for deferred consideration). Net new business of £8.6m was biased to H114, starting to deliver returns in H214, with online and digital revenues comprising over half group totals, a year ahead of schedule. The new board line up is now mainly in place, and a growth strategy is evolving, building on the progress already achieved in bringing together agencies and breaki...