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Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

<p>Acal&rsquo;s acquisition of Variohm adds the first specialist sensor business to Design &amp; Manufacturing and moves the company closer to its mid-term target of generating 75% of revenues from the division. The acquisition, costing up to &pound;13.85m in cash, is being funded by the recent placing of 6.42m shares at 220p per share. Management expects the deal, together with the placing, to be earnings enhancing in FY18 and we lift our normalised FY18e EPS forecast by 3.4%. The stock is trading at a c 30% discount to its peer group, representing a good entry point in our view.</p>

Acal&rsquo;s acquisition of Variohm adds the first specialist sensor business to Design &amp; Manufacturing and moves the company closer to its mid-term target of generating 75% of revenues from the division. The acquisition, costing up to &pound;13.85m in cash, is being funded by the recent placing of 6.42m shares at 220p per share. Management expects the deal, together with the placing, to be earnings enhancing in FY18 and we lift our normalised FY18e EPS forecast by 3.4%. The stock is trading at a c 30% discount to its peer group, representing a good entry point in our view.

Adding sensors to the Design &amp; Manufacturing portfolio

<p>Acal&#8217;s H117 results reflected the weaker demand that was previously flagged combined with positive FX trends. Design & Manufacturing (D&M) continues to grow as a proportion of total revenues and profits and management has raised its targets for this part of the business. The company continues to consider further acquisitions, recently increasing its debt facility to support its growth strategy. The outlook for FY17 is unchanged &#8211; based on H117 order inflow, H217 is expected to be stronger and we leave our earnings forecasts substantially unchanged.</p>

Acal&#8217;s H117 results reflected the weaker demand that was previously flagged combined with positive FX trends. Design & Manufacturing (D&M) continues to grow as a proportion of total revenues and profits and management has raised its targets for this part of the business. The company continues to consider further acquisitions, recently increasing its debt facility to support its growth strategy. The outlook for FY17 is unchanged &#8211; based on H117 order inflow, H217 is expected to be stronger and we leave our earnings forecasts substantially unchanged.

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Acal PLC (ACL LN)

Adding sensors to the Design & Manufacturing portfolio

Acal’s acquisition of Variohm adds the first specialist sensor business to Design & Manufacturing and moves the company closer to its mid-term...

Edison Investment Research

Positive outlook

Acal’s H117 results reflected the weaker demand that was previously flagged combined with positive FX trends. Design & Manufacturing (D&M)...

Edison Investment Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Adding sensors to the Design &amp; Manufacturing portfolio

Acal’s acquisition of Variohm adds the first specialist sensor business to Design & Manufacturing and moves the company closer to its mid-term...

Edison Investment Research

Positive outlook

Acal’s H117 results reflected the weaker demand that was previously flagged combined with positive FX trends. Design & Manufacturing (D&M)...

Edison Investment Research

Adding sensors to the Design & Manufacturing portfolio