Property & Construction Daily

The Property & Construction Daily provides a sector-specific comment from leading analyst Alastair Stewart. His daily perspective provides a round-up of market statements, news, economics and views from the property and construction sectors.

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January 31, 2023


Company news

Harworth Group (HWG, 119p, £384m mkt cap)

Land regeneration group, including in former coalfields. YE (Dec) trading update.

Guidance: “The Company anticipates that EPRA net disposal value (NDV) as at 31 December will be within the current market consensus range and towards the lower end. Demand has remained resilient throughout 2022, as evidenced by occupier take-up in the Investment Portfolio and the completion of housebuilder land sales on attractive terms. However, EPRA NDV has been impacted by market-driven outward yield movements in the valuation of the Investment Portfolio and more mature industrial & logistics major development sites, amid rising interest rates and a softening of macroeconomic conditions”. YE net debt, £48.4m (YE 21, £25.7m); LTV, 7.2%. FY results, 14 March.


Belvoir Group (BLV, 188p, £70m)

Franchised lettings-focused property agency group. YE (Dec) trading update.

Guidance: Rev 13%, £33.5m. “The housing sector performed better in 2022 than many commentators had forecast at the start of the year, with UK residential sales transactions down 15% on 2021, but around 6% ahead of pre-pandemic levels, and rents on new tenancies increasing by 10.8% during the year.  Consequently, Belvoir’s financial performance for the year, including profit before tax, is anticipated to be slightly ahead of managements’ expectations”. FY results, 27 March.


The Property Franchise Group (TPFG, 241p, £77m)

Franchised lettings and estate agent group, enlarged through 2021 acquisition of Hunters, also operating hybrid web-based EweMove platform. YE (Dec) trading update.

Guidance: Rev +13%, £27.1m. “The group achieved a strong performance in 2022 through organic growth in lettings and the full impact of the acquisition of Hunters Property in March 2021. Revenue and management service fees increased significantly against the economic backdrop and expected reduction in house sales transactions. As a result, profit is now anticipated to be ahead of market expectations”. FY results, 18 April.


Nexus Infrastructure (NEXS, 164p, £74m)

Provider of infrastructure services, utilities connections and smart energy. FY (Sep) results. Rev +27%, £173m; total adj op profit +40%, £4.0m; loss from continuing operations, £0.3m (FY 21, -£1.3m); net cash, £24.2m (£18.1m). Orders +9.8%, £316m

Outlook: “Since the year end shareholders have agreed to the sale of TriConnex and eSmart Networks for a consideration of £77.7m, realising the inherent value of these businesses and ensuring Tamdown is well capitalised for the future, enabling the business to focus on high-quality contracts and improve operating margins towards those achieved historically achieved [and] a solid platform to deliver on its growth prospects for 2023 and beyond”.


SigmaRoc (SRC, 57p, £364m)

Heavy construction materials group active in the UK, Channel Islands and Benelux. YE (Dec) trading update.

Guidance: “Trading in the final weeks of the year was strong, with the group expecting to report underlying FY 22 EBITDA and EPS slightly ahead of current market consensus expectations”. Rev expected to be greater than £525m, including organic LFL growth of 19%; u-lying EBITDA expected to be greater than £100m, with margins increasing year-on-year to approximately 19%; u-lying EPS expected to be greater than 7.7p, up over 40% on the prior year; YE leverage expected to be within the Group’s target below 2.0x.

Outlook: “Trading in the early weeks of FY 23 has been encouraging, with more favourable energy cost and availability conditions supporting better than expected demand in a number of the Group’s European industrial products segments. The group has continued to take a dynamic position on pricing through inflationary cost increases, as well as identifying opportunities to improve efficiency across its network. As such, the Board remains confident in the Group’s ability to achieve further progress in 2023”.

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