9th Sep 2021. 8.58am

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Regency View:


Somero jumps 15% on Interim Results

US-focused concrete leveller, Somero (SOM) is our Biden stimulus play, and it hasn’t disappointed…

The shares surged more than 15% yesterday following a strong set of interim numbers which saw revenues surge 82% to $64.4m – led by a ‘very strong and highly active US market’.

First Half adjusted earnings hit a record $24.6m and cashflow from operations was a very healthy $16m.

Somero also declared a $0.09 per share interim dividend representing a 125% increase compared to H1 2020.

Jack Cooney, CEO of Somero, said:

“H1 2021 was an amazingly active six-month period during which the Company’s revenue, profitability and cash flow reached historic levels.  The rapid acceleration of US non-residential construction activity in H1 2021 drove unprecedented demand for our products and the Company delivered for our customers by successfully navigating supply chain challenges and quickly adding and training operations personnel.”

“We are entering the second half of 2021 with positive momentum in our largest market, the US, with opportunities for further growth in our international markets and from new products, and with a strong financial position to invest in driving and supporting long-term growth. This momentum means we have the confidence to upgrade guidance for 2021, are positioned to deliver a record setting year of revenues, profits and cash flow for our shareholders this year, but most importantly, we remain committed to making sound strategic investments to deliver healthy profits and cash flows to our shareholders in the years to follow” he added.

SOM Daily Candle Chart

SOM Daily Candle Chart

Bango’s H1 earnings surge 83%

Bango (BGO) released another stellar set of numbers this week…

The mobile payments platform saw Frist Half revenue jump 49% to £7.13m versus £4.77m during the same period last year and End User Spend (EUS) grew by 74% to £1.3bn.

Adjusted earnings surged 83% to £2.01m, up from £1.09m the year prior and cash at 30 June 2021 was £7.14m a more than five-fold increase on last year.

CEO Paul Larbey commented:

“Our virtuous circle strategy, where purchase behaviour targeting drives more payments, will accelerate our growth. The pipeline for the payments and data monetization businesses has never been stronger underpinning our long-term ambition to be the technology behind every payment choice.”

We picked up a second tranche of Bango earlier this year, and although the shares have continued to chop sideways, we’re more than happy to continue to hold them based on this week’s results.

BGO Daily Candle Chart

BGO Daily Candle Chart

Midwich profits rebound in H1

Midwich’s (MIDW) interim results were always going to show a big improvement on last year’s pandemic-hit first half, but the update was nevertheless pleasing…

Total Group revenue increased 29.2% to £390.1m, while organic revenue grew 25.6%.

Gross margin improved 0.6 percentage points to 15.1% due to a recovery in rebates and mix, and trading momentum has continued despite ongoing disruption to the corporate, live events and entertainment markets.

Managing Director, Stephen Fenby commented:

“Trading since the end of H1 has been in line with Board expectations.  Order books have continued to strengthen and, barring significant lockdowns in key territories, the Board expects trading to be comfortably ahead of its previous expectations.”

On the price chart, Midwich have carved out a strong recovery uptrend, and prices have now erased all of their post-pandemic losses.

MIDW Daily Candle Chart

MIDW Daily Candle Chart

Pan-African reports a significant jump in forecast EPS

Higher gold prices and sales have helped push Pan-African Resources (PAF) Full-Year earnings per share (EPS) estimates higher.

The South African gold miner said EPS will be between 3.76 and 4.10 US cents, compared with 2.30 US cents for the year-earlier period, representing an increase of between 63% and 78% respectively.

Revenue grew 34.8% to US$368.9mln as gold sales climbed 12.4% to 201,777 ounces and the average gold price received rose to US$1,821 an ounce from US$1,574.

Pan African has already reported production figures for the year to end June 2021 which we covered in a previous update – gold output increased 12.3% to 201,608 ounces, boosted by underground operations at its Barberton and Evander mines.

Despite the strong numbers, Pan African’s share price has continued to under-perform as the US dollar strength remains a key headwind for gold prices.

PAF Daily Candle Chart

PAF Daily Candle Chart

Spectra Systems Half Year Revenue Rose 23%

Spectra Systems (SPSY) announced their Interim Results for the six months ended 30 June 2021 this week…

The banknote authentication specialist said revenues and earnings were ‘up substantially’ and in line with expectations.

Revenue jumped 23% to just over $8m for the period while adjusted earnings increased 44% to $3.5m – giving the US-based tech company a net cash position of $12.8m.

Commenting on the results, Nabil Lawandy, Chief Executive Officer, said:

“The Company’s first half revenues and earnings are up substantially from the six months ended June 30, 2020 and in line with the Board’s expectations for H1”…

“The Company is on track to achieve record earnings and meet market expectations for the full year.”

Spectra has been a slow burner, but the market’s response to the interim results has been very bullish with prices gapping higher.

With some short-term momentum in place, we expect the shares to retest their 2020 high in the coming months.

SPSY Daily Candle Chart

SPSY Daily Candle Chart

Inspecs key acquisition bedding in nicely

Inspecs (SPEC) reported their first set of results following the key acquisition of Eschenbach at the end of last year…

The Bath-based designer, manufacturer and distributor of eyewear frames and lens posted H1 revenues $125.7m (H1 2020: $16.7m) on stable margins of 44.9% (H1 2020: 44.5%).

Underlying adjusted earnings increased to $17.7m (H1 2020: $0.7m) while headline losses after tax of narrowed to $3.2m (H1 2020: $7.5m).

CEO, Robin Totterman said:

“Our factories have managed to carry on producing in what has been an extraordinarily difficult time and all our factory workers in Vietnam have been vaccinated to enable them to carry on production”…

“Our plant in China has continued to operate despite Covid-19 difficulties throughout the period. Our teams across the globe continue to drive new innovation, explore opportunities and expand into new markets through integration, organic growth and acquisitions.”

“We have strong order books and notwithstanding the potential future disruption from Covid-19 our full year expections remain unchanged. We look forward to providing a further update with our Q3 trading update at the end of October.”

On the price chart, the shares have maintained their impressive uptrend and recent price action has take the shares back towards their trend highs.

SPEC Daily Candle Chart

SPEC Daily Candle Chart

MPAC post strong H1 results with increasing profitability

Robotics and automation specialist MPAC Group (MPAC) revealed a 69% increase in order intake last week as the company released a strong set of Half-Year results.

MPAC’s order book increased 12% to £62.0m (June 2020: £45.4m) as order intake surged 69% during the period.

Group revenue jumped 20% to £44.2m (2020: £36.8m), with a 25% growth in Original Equipment revenue and continued progression in service revenues.

Underlying profit before tax nearly doubled to £4.7m (2020: £2.5m) and driving underlying earnings per share (EPS) to 18.3p (2020: 11.0p).

CEO, Tony Steels commented:

“I am really pleased with the performance of the business in the first half of 2021.  The strong momentum from H2 2020 has carried into 2021 with Original Equipment order intake up significantly.  We made good progress with the implementation of our strategic objectives which provided the platform for the business to leverage the growth markets in which we operate… 

The Q3 2020 acquisition of Switchback is continuing to perform well and, with the move to a purpose built Mpac showcase facility, we can demonstrate to our US customers the full suite of Mpac brands, solutions, and services in this critical market.  We remain well placed, serving markets with strong underlying demand and are pleased to be upgrading expectations for the full year results given the strength of current trading and our outlook for the second half.  The Group’s long-term prospects also remain positive”.

MPAC Daily Candle Chart

MPAC Daily Candle Chart


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