Equity Development

Equity Development We help companies communicate with all investors. We help all investors better understand those businesses.

12/01/2026

Knights H126 results were as announced at its update in November and illustrate the power of its position as the leading consolidator in the premium, regional legal market. Revenues rose an impressive 30%, including a return to organic growth of 2.6%, and Adj. PBT rose 12.5%, despite absorbing increased national insurance costs and investing in AI, led by a new CTO. Operating cashflow conversion has been excellent and momentum has continued into H226, hence management is confident in achieving FY26E expectations.

Yet Knights still only trades on 6.5x cal 2026 PER and under 6x cal 2027 PER. Given the successful H126 and positive outlook we raise our Fair Value/per share from 230p to 255p, equivalent to c.8x cal 2027 PER.

Read the full note (freely accessible) here:

Knights posts 30% revenue growth, strong cashflow, and organic gains in H126; fair value raised to 255p amid continued momentum and undervalued shares.

12/01/2026

Impax AM - "Q1-26 AUM -7% as expected, forecasts unchanged" - new research freely accessible here: https://bit.ly/3Yzwzc0

As expected, AUM fell 7% over Q1'26 (1 Oct 25 - 31 Dec 25) to £24.2bn. Investment performance was marginally negative at -£0.2bn with net outflows of £1.6bn. Impax’s FY25 results commentary in late-Nov 25 had said that net outflows were likely to persist in the first part of FY26, with net flows improving over the year.

Net flows reflect current global trends in sustainable investing. LSEG Lipper ‘responsible investing’ data shows equity funds suffering outflows for most of 2025 (equities make up 88% of Impax AUM), with robust inflows for bond funds (a strategic growth focus of Impax, currently 10% of AUM).

Encouragingly, there is widespread confidence in the future of sustainable investing. Morningstar/Sustainalytics recently wrote that : 'Recent investor surveys point to a bright future for sustainable investing… 86% of asset owners expect to increase allocations to sustainable investments in the next two years.'

Being so early in the financial year, and with positive markets so far in Jan 26, our forecasts remain unchanged - as does our fundamental valuation / share of 380p, more than twice the share price. This valuation disconnect is further reflected in Impax having a lowest-in-sector PER of 9.3x ... check it all out at the research link!

As expected AUM fell 7% over Q1'26 with IPX expecting net flows to improve through the year. Our forecasts and 380p/share fair value are unchanged.

22/12/2025

ECO Animal Health Group has announced that the European Commission has adopted the decision granting EU marketing authorisation (MA) for ECOVAXXIN® MS, the poultry vaccine against Mycoplasma synoviae. This important authorisation is key to commercialisation of this, the first of several major products under development to receive approval.

As the Group notes, the MA has been issued over a month earlier than anticipated. ECOVAXXIN® MS provides active immunisation of future layer and breeder chickens from four weeks old, helping to reduce air-sac and foot-pad lesions and egg production losses caused by Mycoplasma synoviae infection. We note that similar progress for ECOVAXXIN®MS in the US is anticipated by the end of CY26, following completion of a key efficacy study. EAH has stated that it expects a peak contribution to revenue from ECOVAXXIN®MS of c.£22m. As reaffirmed at H126 results, our Fair Value is 136p/share.

New research freely accessible here:

ECO Animal Health secures early EU approval for ECOVAXXIN® MS, its first poultry vaccine, marking a key milestone and paving way for 2026 launch.

19/12/2025

Strix Group - "Debt-Free Reset: Proposed sale of Billi"

The proposed disposal of Billi, conditional on shareholder approval, is transformational for the Group. Ahead of any movement in capital allocation, net cash would amount to c£37m on the repayment of all indebtedness. The net consideration of £107m equates to 45p/share, representing a premium to the current share price. Accordingly, we estimate the retained operating business is currently trading on EV/Sales and EV/EBITDA multiples of less than 0.7x and 3x-4x, respectively.

Strix Group has received an unsolicited approach for Billi and the proposed deal values the business at a consideration of £110m, which represents a significant uplift (2.9x) on the cash-and-debt-free price paid by Strix in early 2023 (£38m). Should investors ratify the transaction the focus should return to the cash generative ability of Controls and the Group’s potential growth and yield attributes.

There is no change to current estimates and the outcome of the conditional proposal is uncertain. We retain our previous fair value / share at 89p. This represents a marked premium to the closing share price. With investor’s focus likely to be modified to favour growth and yield considerations, from debt-related risks, we anticipate a re-rating of the shares. Full details in our new research note (freely accessible) here:

Strix Group to sell Billi for £110m, delivering 3x return, eliminating £70m debt, and enabling share buybacks and strategic growth initiatives

17/12/2025

Springfield Properties has announced an initial agreement with SSEN Transmission for the delivery of almost 300 new homes in the North of Scotland. The new homes will accommodate SSEN’s workforce as they deliver major projects to upgrade the electricity network grid and help to deliver UK energy security.

This is Springfield’s first agreement of this type, opening up a new income stream and unlocking the value of the landbank. This is a significant milestone for Springfield which clearly validates the strategic repositioning of the business to capitalise on the opportunity in the North of Scotland.

An accompanying trading update confirms that H1 trading was in line with management expectations.

We increase our Fair Value estimate to 160p (c.1.1x FY27 Price/ Book), reflecting the strategic importance of the deal and the unlocking of value in Springfield’s land bank. Link to research note (freely accessible) here:

Announces initial agreement with SSEN for delivery of c.300 new home in North of Scotland & confirms H1 trading in line. Increase fair value est. to 160p

03/12/2025

"Considerable untapped potential" - new initiation report *** Victorian Plumbing Group plc ***

Victorian Plumbing’s FY25 results illustrate the strength of its market-leading, profitable and cash-flow generative business. In this initiation report we review the group’s attractive investment thesis and conclude the 40% sell-off in the past 12 months significantly undervalues the group’s potential. We initiate coverage with a 110p Fair Value equating to 1.1x EV / Revenues, c.11x EV/EBITDA and a c.5% FCF yield (cal 2026).

Victorian Plumbing has navigated major changes, completing a £21m warehouse, acquiring Victoria Plum for £22.5m, and launching into homewares. FY25 revenues rose 5% to £310m with market share up to 21.5%, while adjusted PBT grew 5% to £24.3m despite cost pressures. The MFI relaunch shows promise with strong reviews and controlled start-up costs, supported by disciplined investment and robust cash flows.

We value the bathrooms business on 9x cal 2026 EV/EBITDA (implying over £330m EV, c.1x Revenues, nearly 100p per share) with the potential for the homewares business to be worth c.£45m (3x cal 2028 EV / Revenues), adding another c.15p per share. Hence, we see scope for a significant re-rating as confidence builds in management’s strategy.

Victorian Plumbing FY25: record £310m revenue, 21.5% UK share, strong cash flow, homewares launch, and 110p fair value highlighting growth potential.

Address

Greater London
EC2M7EB

Opening Hours

Monday 8:30am - 5:30pm
Tuesday 8:30am - 5:30pm
Wednesday 8:30am - 5:30pm
Thursday 8:30am - 5:30pm
Friday 8:30am - 5:30pm

Website

Alerts

Be the first to know and let us send you an email when Equity Development posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Shortcuts

Share

Category