finnCap Research Company Notes - 30 April 2018

Apr 30, 2018 / Research Notes

Daily notes from the finnCap Research team

Sector: Financial and Insurance

HML Holdings (HMLH): Trading update    

Key data                              

  • Share price (p): 30.5
  • Target price (p): 48.0
  • Market cap (£m): 13.8
  • Enterprise value (£m): 16.0                         

The group has released a trading update confirming that trading for the 12-month period to March 2018 has been in line with market expectations. We reiterate our full-year forecast and retain our 48p target price.

Contact: Mark Paddon | 020 7220 0541 | mpaddon@finncap.com

Sector: Industrials

Iofina (IOF): FY 2017 results – Turning the corner           

Key data                              

  • Share price (p): 18.1
  • Target price (p): 35.0
  • Market cap (£m): 23.0
  • Enterprise value (£m): 36.3         

Solid FY 2017 results, in line with expectations and confirming the continued improvement in costs and leverage to the ongoing recovery in iodine prices. Iodine production +6% y/y despite fewer facilities operational. The new IO#7 plant, which started up in February, is ramping up nicely and should drive higher iodine volumes in H2 2018 and lower unit costs further. An additional plant, IO#8, is also expected to be developed this year, in line with our expectations. Company on track to execute on renewed growth ambitions, which alongside lower costs and higher iodine prices drives improved profitability and higher cash flow.

 Contact: Jonathan Wright | 020 7220 0543| jwright@finncap.com