21st September 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 ob...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
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...
​We reinstate FY17 RGF estimates, having suspended forecasts in February post the Real Good Food trading update on 1st of that month. Food manufacturing is a robust sector – as long as the producer can manage or minimise exposure to the commodity-based multiple grocery lines. A number of quoted producers have benefitted from trends, for example such as consolidation (Finsbury Foods), pork consumption (Cranswick). Real Good Food’s (RGF) underlying trends have diversity, and one main thrust ...
​Real Good Food’s focus is towards premium product segments and routes to market via specialists who bring premium pricing opportunities. This includes focus on supporting the various brands, the costs of which have always been included in our forward estimates. However, Monday’s update is negative in that the 2.9% (year to March 2015 continuing businesses) EBITA margins are now estimated to rise to only 3.2% in FY16, before (we estimate) rising in FY17E. We reduce FY16E PBT from £5.2m to...
​Real Good Food has transformed its prospects through corporate action over the past nine months. The market has yet to catch up with this. Importantly, the mix of business is biased to higher margin and growth markets. For example, Renshaw (72% Group operating profits) reported H1 10.8% operating margins up from 9.3% through a focus on sales mix. We therefore see good margin expansion for FY16E and strong prospects thereafter. Trading in the seasonally important Q3 has seen “strong sales tr...
​Current trading is encouraging, as announced with full year results on 7th August, and at the AGM convened today. Real Good Food has transformed its prospects through corporate action over the past nine months. The market has yet to catch up with this. Even more importantly, the mix of business is biased to higher margin and growth markets – added to which export markets are being more systematically addressed recently. We therefore see significant long term growth prospects after the initi...
​The £34m disposal of Napier Brown in May delivers material upside for Real Good Food financially and strategically. It has exited a cyclical and low margin business at a good price, transforming group growth prospects and risks. Opportunities to accelerate profit growth are now enhanced, with scope to deploy funds judiciously in organic and acquisition led investment.
Today sees a trading update which is distinctly mixed: Napier Brown trading is poor; elsewhere is good. Crucially the Chairman states the Group is “in discussions with several parties in relation to a potential transaction involving Napier Brown.” Here is a potential complete, positive, change in fortunes for the Group. The potential transaction is stated as “significantly strengthen”[ing] the balance sheet. Napier Brown – despite its current problems – is clearly drawing substantial...
We are confident we have found a winner from a major legislative change in the €11bn European sugar market. Independent sugar distributor, Napier Brown (wholly owned by Real Good Food Company (RGD)), is gaining market share. We anticipate a doubling of its volumes in the coming years in an environment of volatile, cyclical prices. A combination of the 2017 ending of the EU sugar quota regime (well ahead of which market shares should dramatically free up) and a tie-in with Omnicane, a qual...
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