Liberum has assembled an eclectic mix of companies with strong market positions and growth potential for its second annual Chemicals and Consumer Ingredients Growth Conference which takes place in London on the afternoon of 12 June 2014. The event is for Liberum’s institutional clients.
Mail Jenni Herbert >>, our corporate access manager, if you’re an institutional investor interesting in attending.
Here are short profiles of the companies attending and details on who will represent them.
Croda PLC, CFO + Head of Coatings/Polymers. Croda is a producer of chemicals, primarily from natural ingredients, for use in cosmetics, healthcare, cropcare and industrial markets – markets with an above average blended growth rate through the cycle of around 4-5%. The business also has a fairly defensive track record due to a wide number of products, a wide number of customers, products that usually account for a low percentage of customer product cost and stable consumer end markets. Our guest speakers are well placed to comment on the M&A strategy and the potential for cyclical recovery in the Coatings/Polymers activities.
PureCircle PLC, CFO. PureCircle is the world's #1 in high purity stevia sweeteners for food and beverages with an 80%+ share. It has grown sales 10-fold to $100m since 2007 and should approach full current capacity ($250-300m sales) in the next 2-3 yrs. Stevia is the only natural, zero calorie sweetener viable for large scale production and growth is being driven by the focus to reduce sugar contents of food & drinks. PureCircle has supply agreements with all the major F&B companies (Coca Cola, Pepsi, Nestle etc).
Symrise AG, Head of IR. Symrise is the world’s fourth largest supplier of Flavour and Fragrance (F&F) Ingredients with a global share of 11% and is also niche cosmetic and healthcare ingredient supplier. Based in Holzminden, Germany the Group has been a public company since 2006, since which it has enjoyed a stable CAGR in sales and EBITDA of around 6%. The F&F sector is a very defensive and cash generative sector. Compared to its peers Symrise is particularly strong in vanilla, onion and menthol and leads the way in terms of its share of revenues from Emerging markets.
Air Liquide, Head of IR. Air Liquide has a leading c22% share of the €65bn Global Industrial Gases sector including oxygen, nitrogen, hydrogen and specialty gases. It is Global co-leader in Medical and Electronic gases and Europe’s leading supplier of hydrogen to oil refineries and number 3 in North America to the same. Historically it has the most defensive track record of the Big 4 industrial gas companies reflecting a bigger share of Revenues from Tonnage customers (on take and pay contracts) + Healthcare than any of its principal peers.
Alent PLC, CFO+Head of IR. Alentis a global supplier of specialty chemicals to the electronics, automotive and industrial sectors. The business was demerged from Cookson PLC in December 2012. Assembly Materials (Alpha) is a global supplier of solder and other interconnect materials principally used in phone and computer printed circuit boards and Surface Chemistries (Enthone) a global supplier of electroplating materials for the semiconductor, automotive and plumbing fittings sectors. The company is one of the most cash generative in the UK Specialty Chemicals Group yet trades at a 25% PE sector discount.
Velocys PLC, CEO+CFO. Velocys, previously called Oxford Catalysts,supplies catalysts and reactors for small/medium scale gas-to-liquids (GTL) plants. According to the company, the capital and operating costs of its systems are competitive thanks to the deployment of its compact microchannel FT reactors and super-active catalysts. The USA shale oil sector is a key target as many liquid rich fields have low cost ‘byproduct’ methane. The CEO is an eloquent advocate of his business and the economics of GTL.