gretel
01 Aug 2017
New highs today Nice. New highs, and buying coming in at 330p and 332.25p now.
gretel
26 Jul 2017
Tipped once again..... [link] high-growth small-caps I’d buy to retire onSmall-cap investing can be a bit of a hit or miss venture, but I believe looking to smaller stocks that are less frequently covered by analysts can unearth some great companies whose shares trade at bargain prices while offering phenomenal long-term capital appreciation prospects. And I think I’ve discovered two such under-the-radar options in speciality electronics manufacturer Acal (LSE: ACL)....Exploiting its niche with aplomb Acal started out as a pure distributor of speciality electronics for customers in sectors as varied as photonics, communications, magnetics and sensors. But after years of serving as a go-between for manufacturers and customers, it realised there were gaps in the market that it could fill with its own products.And thus the company’s design and manufacturing (D&M) segment was born. This part of the business now accounts for over half of all sales and is growing at a rapid clip through organic expansion and acquisitions. In the year to March, sales from this division grew 28% year-on-year (y/y) to £175.6m and accounted for over 80% of the group’s £20m in underlying operating profit. On top of growing faster than group overage, operating margins of 11.5% last year were more than triple that of the distribution side of the business.Now, the distribution business still has a role to play in gathering market intelligence, providing a reliable sales outlet for the groups in-house products and increasing cross-selling from its myriad manufacturing companies.And for investors like myself who prefer their small-caps profitable and with a healthy balance sheet, its relatively small £30m in net debt presents a very manageable sum. With a great record of organic and acquisition-led growth, rising margins and a respectable 2.8% dividend yield, I believe Acal is a great business trading at a very reasonable valuation of 13.7 times forward earnings."
gretel
25 Jul 2017
Finncap, Peel Hunt see good upside Peel Hunt and Finncap have today retained their 360p and 339p target prices for the moment. I'd expect them to increase these assuming the next trading update in October is as good as today's.Here's Finncap's brief summary today FYI:"Strong organic progress BUYAcal has confirmed the year has started well with Q1 organic sales growth of +9%. At constant exchange rates, total sales were up +14%. While Q1 last year was relatively weak in the Custom Distribution division, this is an encouraging performance, and with order intake up 21% CER and 15% organically the outlook is also positive. Organic growth rates were similarin both the Design & Manufacturing and Custom Distribution divisions and we understand across countries and industries. Variohm, acquired in January, doubled Acal’s sensors capability and continues to perform well.Sensors are a product segment we expect to produce strong results as the digital transformation of industry continues. With the FY 2018E P/E of 13.1x attractive against our expectation of 11% average annual EPS growth over the next three years (and the P/E a 24% discount to peers) we reiterate our Buy recommendation."
oldjoe1
25 Jul 2017
Re: Excellent trading update today ACL ACAL PLC.........6 month and 2 year breakout on upbeat update this morning. Ive dipped in especially after checking the financials which going forward will only get better. Looks very cheap imo.Nick Jefferies, Group Chief Executive commented:<b><i>"We have had a good first quarter with widespread sales growth. Additionally, our order book has grown further which will drive sales growth in the year ahead. We are confident of delivering further progress through the year."</i></b><img src="[link] src="[link] broker views</b>Date Broker Recommendation Price Old target price New target price Notes25 Jul 17 Peel Hunt Buy 308.00 360.00 360.00 Reiterates25 Jul 17 finnCap Buy 308.00 339.00 339.00 ReiteratesAcal plc is a European leader in design, manufacture and distribution of specialist electronic products for the industrial and healthcare sectors. It is the only such provider with an infrastructure to deliver a broad range of specialist products and bespoke solutions across Europe. Acal's strategy is to further enhance its leadership position through organic growth, complementary acquisitions and continued enhancement of its custom service capabilities. It has completed eight acquisitions in the last five years, increasing its specialist revenue more than four fold. Acal has operating companies across Europe including the UK, Germany, France, the Nordic region, Benelux, Italy, Poland and Spain as well as in Asia (China, India, Sri Lanka and South Korea), the US and South Africa. Businesses comprise Acal BFi, Hectronic, MTC, Myrra, Noratel, RSG, Stortech and Vertec.nb, ACL Financial forecasts not yet updated after trading update this morning.Acal PLCFORECASTS2018 2019Date Rec Pre-tax (£
EPS (p) DPS (p) Pre-tax (£ EPS (p) DPS (p)Numis Securities Ltd24-07-17 BUY 21.20 20.90 8.76 23.70 23.30 9.02Peel Hunt LLP21-07-17 BUY 21.06 21.67 8.90 23.02 23.02 9.30Edison20-07-17 None 20.70 20.60 8.90 22.10 21.70 9.30FinnCap19-07-17 BUY 22.90 22.90 9.00 25.30 25.20 9.602018 2019Pre-tax (£ EPS (p) DPS (p) Pre-tax (£ EPS (p) DPS (p)Consensus 20.98 21.29 8.90 23.36 23.16 9.301 Month Change 0.00 -0.01 0.00 0.00 0.00 0.003 Month Change 0.48 0.70 0.30 0.56 0.76 0.40GROWTH2017 (A) 2018 (E) 2019 (E)Norm. EPS 27.50% 25.41% 8.79%DPS 5.69% 8.94% 4.49%INVESTMENT RATIOS2017 (A) 2018 (E) 2019 (E)EBITDA £23.60m £28.63m £30.52mEBIT £16.00m £25.00m £27.30mDividend Yield 2.72% 2.97% 3.10%Dividend Cover 2.08x 2.39x 2.49xPER 17.67x 14.09x 12.95xPEG 0.64f 0.56f 1.47fNet Asset Value PS 30.52p p p
gretel
25 Jul 2017
Excellent trading update today which should propel the share price forward very nicely.The order book is really surging, 21% up on last year. Trading is "strong", momentum is "continuing" - the sentiment here is extremely positive:[link] Quarter Trading UpdateAcal plc (LSE: ACL, "Acal" or the "Group", a leading international supplier of customised electronics to industry, today issues a trading update for the first quarter of the financial year ending 31 March 2018, covering the period from 1 April 2017 to 30 June 2017.Trading in the first quarter has been strong with the momentum seen in the final quarter of last year continuing. First quarter revenue for the Group was 14% ahead of last year at constant exchange rates1 ("CER" and ahead 9% organically2 with similar organic growth rates in both the Design & Manufacturing and the Custom Distribution divisions. Order intake for the first quarter was also strong, growing by 21% CER and 15% organically, again with similar growth rates in both divisions, lifting the Group's forward order book to another record high and positioning the Group well for further growth. First quarter gross margin remained strong and in line with the final quarter of last year. As expected, it was lower than last year reflecting currency impacts on UK import costs from the fall in Sterling following the UK's European referendum. Variohm, which was acquired in January 2017, continues to perform well, and cross-selling between our two divisions delivered good growth in the first quarter. Nick Jefferies, Group Chief Executive commented: "We have had a good first quarter with widespread sales growth. Additionally, our order book has grown further which will drive sales growth in the year ahead. We are confident of delivering further progress through the year."
gretel
19 Jul 2017
Newly tipped on Motley Fool [link] hot value stocks for growth and dividend huntersThe Motley Fool 17 Jul 2017, 12:19 Investor appetite for Acal(LSE: ACL) shows no signs of slowing down. Just today the electronics play hit new record tops north of 300p per share, taking total gains during the past three months to 29%.This comes as little surprise as sales volumes accelerate and Acal banks the benefits of sterling's slide.The business saw revenues glide 18% higher in the year to March 2017, it advised last month, to £338.2m. On an organic basis revenues rose 6%, the small-cap witnessing improving sales and order growth as the year progressed.And Acal's record order book of £109m as of March -- up 22% at real exchange rates or 13% organically -- suggests that revenues should continue to pound higher.Profits heroIt comes as little surprise that the City expects Acal's long-running growth history to continue with earnings rises of 8% in the years to March 2018 and 2019 respectively.As a consequence, Acal changes hands on a forward P/E ratio of just 14.1 times, falling comfortably within the widely-considered value territory of 15 times or under. This is striking value given Acal's improving momentum.Those seeking access to hot dividend growth dynamos need to give special attention to the Guildford firm too. Last year's 8.5p per share is anticipated to march to 9.3p in the present period, and to 9.7p during fiscal 2019.Subsequent dividend yields clock in at a very-handy 3.1% and 3.2% for this year and next. And I expect shareholder rewards to keep marching higher in line with profits."
gretel
07 Jul 2017
Peel Hunt reiterate Buy and 360p target Peel Hunt today reiterate their Buy and 360p target:[link] Also a nice mention for ACL in a Shares Mag feature on the top performing companies in its sector:[link] electronic components manufacturer Acal (ACL) released a strong set of preliminary results earlier this month for its year ending 31 March. The company has transitioned from a distributer to a manufacturer of specialised items such as those needed in CAT scanning machines.Acal has also been driving through cost savings such as removing an entire level of management."
gretel
29 Jun 2017
ACL valued at a big discount to sector Looking at some figures issued by Finncap this week, the following are relevant comparator sector P/E's for this year and next year:Trifast : 17.5 falling to 17Electrocomponents : 25.6 falling to 22.7Diploma : 25.4 falling to 22.7ACL are on a P/E of 14 falling to 12.9. ACL have a long way to rise from here to catch up.Not only that, ACL have by far the best dividend yield, at 3.1% against the other companies ranging from 1.6%-2.1%.
gretel
19 Jun 2017
Re: Finncap : Buy with a 339p target Finncap has today issued its quarterly note on the Support Services sector. ACL is one of its 7 favoured picks (amongst the others is RNWH, which I also own), with a Buy and a 339p target price:"Take advantage of the weakness of the poundBuy overseas earners. Our favoured picks are:Acal – 82% of sales are outside the UK, with the largest markets being the Nordics at 22% of sales, Germany at 18% and France at 10%. Acal designs, manufactures and distributes electronic components and assemblies. It has virtually no cross-border trading between the UK and Continental Europe."
gretel
14 Jun 2017
Peel Hunt : Buy with 360p target Peel Hunt today reiterate their Buy and 360p target price:[link]
gretel
12 Jun 2017
Finncap : Buy with a 339p target Finncap's summary in their note from last Wednesday reads as follows FYI - they say Buy with a 339p target:"Strong H2 backed by cash flow, strategy delivering BUY Acal reported FY 2017 adj. EPS up +13% (our forecast: 11%) driven by H2organic sales growth of +6% (up from a -7% decline in H1), a continued risein margins, a strong contribution from acquisitions and favourable FXtranslation. Cash flow was also strong, with pre-exceptional operating cashconversion of 151%. With the year-end order book up +22% CER (+13%organically), the outlook remains positive. We make no changes to ourPBT/EPS forecasts and reiterate our view that Acal has the marketopportunity and services to build a significantly larger business.Underlying sales accelerating. H2 organic sales grew +6% (+3% in Design &Manufacturing and +9% in the more cyclical Custom Distribution) up from a-7% decline in H1.Restructuring benefiting. £4m annual cost savings are being targeted, with£1.7m realised in FY 2017. The exceptional cost of delivering these was £6.4m(lower than the originally anticipated £8m).Margins continue to rise. Gross margins increased to 32.8% from 32.2% inthe year and EBIT margins to 5.9% from 5.7% despite the weakness of sterling,affecting purchase pricing in H2. Overall, we continue to expect progress at theGroup EBIT margin level, aided by the cost savings and improved organicgrowth.Stronger than expected cash flow. Net debt of £30m was better than ourforecast £41m. While some of this difference is beneficial timing, we haveimproved our net debt forecasts and highlight that with our forecast of 0.9x netdebt/EBITDA in FY 2018 (falling to 0.4x in FY 2020) enhancing acquisitionsremain likely as the group strengthens its market position.£20bn opportunity. The addressable market in niche electronic components isworth £20bn globally. Our view remains that Acal’s true potential value lies intaking advantage of the digital transformation of industry. With its growingexpertise in power supplies, fibre optics, wireless and sensors (amongst others)and its design to delivery services, Acal is very well placed to producesignificant long-term growth.Modest valuation against the opportunity. FY 2018E P/E of 12.4xrepresents a 30% discount to our peer group and the 3.2% dividend yield a47% premium."
gretel
09 Jun 2017
Tipped in today's IC Nice £25,000 buy at 286.53p this morning has sent the price up.And ACL have been tipped in today's IC:"The management team at Acal (ACL) have their eyes on acquisitions. Since 2009 the supplier of customised electronics has bought 13 businesses, 10 of which have been in the design and manufacturing division, which contributed three-quarters of group revenue growth during the period. Reported profits were held in check by £6.9m in exceptional items, including a £4.8m restructuring charge for Acal BFi, but underlying pre-tax profit was up 19 per cent to £17.2m.Those acquisitions have not only broadened Acal's commercial offering, but have resulted in a significant increase in cross-selling revenues, a process augmented by the group's latest acquisition Variohm Group, a maker of braking sensors. Meanwhile, the group’s efficiency plan, which saw a layer of management stripped out and some manufacturing moved to cheaper countries like Poland and Sri Lanka, is expected to save £4m annually at a one-off cost of £6.4m.Analysts at Peel Hunt expect pre-tax profits of £20.7m in the year to March 2018 giving an EPS of 21.3, compared to £17.1m and 18.7p in FY2016.IC VIEW:It appears that Acal can afford to continue ahead with its acquisition plans - net debt fell from £38.1m to £30m over the year, giving a gearing ratio of 1.2 times net debt to cash profits, below the company’s 1.5-2 times target range, and operational cash flow was up 66 per cent. Shares are trading around the mid-range of their five year historical valuation at 12 times earnings. Buy."
gretel
06 Jun 2017
Results ahead of expectations Excellent results - 19.2p EPS is ahead of consensus expectations, as is the 8.5p dividend:[link] - order books are up strongly - acquisitions performing well, with more acquisitions likely - good cash flows - efficiency programme to benefit this year - D&M now up to 52% of sales - this Q1 looking greatThe outlook says it all: ""As expected, the second half of the year saw accelerating levels of organic growth in sales and orders, and excellent cash flow. This strong momentum has continued into the new financial year which we entered with an order book 22% higher at CER than the prior year, and which is driving further good growth in this first quarter as the order book converts into sales. Our efficiency plan has been implemented, delivering £4m in sustainable annual savings and at a better than anticipated cost of implementation. Variohm Group, acquired in January 2017, is performing very well. Cross-selling activities are underway with a number of exciting opportunities identified and our first design win has been achieved, ahead of plan. This is the seventh consecutive year in which the dividend has increased - an increase of 67% in total, reflecting the transformation of the Group over this period. In the last four years alone, revenues have almost doubled and underlying operating profits quadrupled. We plan to continue this strong rate of progress through further organic growth and high quality acquisitions over the next five years."
gretel
02 Jun 2017
Another recent tip Almost at new 9-month highs, and rising into next week's results.Plus another recent tip for ACL here - it offers "high growth prospects as well as a rising income return":[link]
gretel
12 May 2017
Tipped in the IC The IC recently tipped ACL as a Buy, and the company have helpfully copied the tip onto their web site.They note historic 18.7p EPS rising to 21.3p EPS this year:[link]
