Momentum continues, with strong H1 outturn

React has issued an H1 update. Having updated in March to confirm trading is on track, today’s update reiterates that message and confirms an expected H1 revenue outturn of £10.6m (H1’23: £9.3m, H2’23: £10.3m), representing 50% of our FY24 forecast. Adj. EBITDA is expected to have increased by 38% to £1.3m (H1’23: £0.9m, H2’23: £1.3m), representing 53% of our FY24 forecast. The pipeline for the remainder of the year remains robust which provides the Board with confidence in full year expectation

React Group H1 Trading Update

React Group has released a positive update that has confirmed that the strong 2H 2023A momentum has continued into 1H 2024E, with what was described as a ‘record trading performance'.

React Inititation of Coverage

React Group is a well-managed, growing UK services business with a high degree of recurring revenues (c87%).

Hybridan Small Cap Feast - 04 Apr 24

4th April 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objecti

Hybridan Small Cap Feast 4-April-2024

* A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: 21 March 2024: Helix Exploration is pursuing the exploration, commercial development and monetisation of a non-hydrocarbon associated helium rich gas structure in the Ingomar Dome located in central Mont

Trading on track

A brief AGM Statement from React confirms that trading is on track, with momentum continuing into FY24. Revenue for the first five months of the year was ahead of the prior year and the Board is cautiously optimistic about the outlook. We therefore keep our forecasts unchanged and remain at Buy with a 1.9p TP, noting React’s defensiveness, high recurring revenues and attractive margin.

Hybridan Small Cap Feast - 06 Feb 24

6th February 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje

Investing to support scale after a year of growth

FY23 results were well flagged in the Nov. update. They confirm revenue growth of 43% and adj. EBITDA growth of 130% to £2.2m (FY22: £1.0m), in line with guidance. Momentum has continued into FY24, with the first few months of trading delivering a record performance. React is investing to strengthen its team, processes and systems in order to support further scale, with the strategy focused on continued strong organic growth, as well as bolt-on M&A. We temper forecasts to reflect this, with our

Hybridan Small Cap Feast

12th December 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obj

Record FY23 profit outturn confirmed

React’s year end update confirms a record outcome for FY23. Adj. EBITDA is expected to be at least £2.2m, almost bang in line with our £2.4m forecast. Better working capital management led to an outperformance on net cash, which we now expect to be £0.8m exc. leases vs. £0.2m previously. Contract win momentum was strong across the Group and this should support growth into FY25. We make some minor changes to our forecasts but leave our headline profit forecasts largely unchanged. We view a Sep. ’

Hybridan Small Cap Feast - 10 Oct 23

10th October 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje

Hybridan Small Cap Feast 02/08/2023

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Announced ITF 12 July: Substrate Artificial Intelligence, an artificial intelligence company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health, intends to join the Access Segment of the AQSE Growth Market. Announced ITF 6 July: Blackpoint Biotech plc, a medical cannabinoids company established t

Marks & Spencer+ (MKS, House Stock, 274p) - These are not just results - these are M&S results - more upgrades!

Topps Group (TPT LN) - Interim results & updated strategy

Topps Group has announced its interim results to March period end highlighting a good relative performance against a tough backdrop as sales fell 5.8% yoy to £122.8m versus c. 10-15% for the wider market, according to management. Adj. PBT of £3.1m is down 30% yoy and covers 40% of Zeus’s FY24 forecast, implying Topps will need to see some improvement in the operating environment to meet current estimates, which Zeus keep unchanged. The big news comes from the updated ‘Mission 365’ strategy, whic

Finseta+ (FIN, House Stock at 42p) - Name change (formerly Cornerstone)

Topps Tiles - Looking to the future

Topps Tiles’ (TPT’s) H124 results demonstrate the effects of the general market softness of spend on repairs, maintenance and improvement, as evidenced by other companies and external data. Of more importance is TPT’s updated strategy, which includes targeting new markets and further/better leverage of existing brands, and ‘medium-term’ financial goals, the most notable being an indicated more than quadrupling of adjusted PBT from our FY24 estimates. Management points to more encouraging forward

Brighton Pier Group - Sweating the assets

The popularity of Brighton Pier Group’s (BPG’s) diversified low-ticket leisure offer underpins confidence in a significant bounce back from its FY23 ‘annus horribilis’ as well as in potential benefits from new initiatives, notably a £1 admission fee to the Palace Pier (annually over four million visitors as a free attraction) during key summer trading for non-residents of Brighton. The coincidence in FY23 of harsh weather, train strikes and protracted disruption from a fire near the company’s mo

SSP Group+ (SSPG, House Stock at 209p) - Interim results demonstrate significant progress; forecasts maintained

PROGRESSIVE: Vertu Motors: Smoother roads ahead

The results for the year ended 29 February released today show a robust performance across a difficult year, but they also provide good grounds for optimism. Revenue of £4,720m was a 17.6% advance on FY23, helped by the successful acquisition of Helston in FY23. Underlying operating profit of £59.3m was a 21.5% improvement on the £48.8m achieved in FY23. The net debt (pre-leases) result of £(54.0)m, vs our estimate £(62.0)m and FY23 £(75.3)m, is impressive. Encouragingly the recommended dividend

Hardman & Co Healthcare Index: 2023 – Capital demands dent performance

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (

PROGRESSIVE: DP Poland: Management delivery

DP Poland is a UK-quoted means to gain exposure to the roll-out potential of the world-leading Domino’s Pizza brand in relatively stable and growing economies. DP Poland is the master-franchisee for Domino’s Pizza in Poland and Croatia. Although DP Poland has built a pizza company, only since the August 2022 arrival of CEO Nils Gornall, with his many years of experience as a ‘Dominoid’, has it truly started building a Domino’s Pizza company. Results have improved significantly, and DP Poland is

ME Group - Modernising and growing the estate driving growth

During 2023, ME Group commenced the deployment of its next generation photobooths, which are integrated with the group’s newly developed proprietary software, gained market leadership in the Japanese photobooth market with an acquisition, continued to roll out laundry units with existing and new location partners, commenced a share buyback programme and gained entry into the FTSE 250. 2023 was a year of significant strategic and financial progress, with sales up 15%, EPS up 31% and net cash main

LIBERUM: The Liberum Leisure Digest: NLW increase - pricing power is key

Borussia Dortmund - London calling

Borussia Dortmund’s Q324 results demonstrated some phasing but it has made good progress year-to-date. The focus of attention now is the team’s progress to the Champions League final for the first time since 2013, having beaten more-favoured (by the bookmakers) and higher-funded teams along the way. Despite being less successful than usual in the Bundesliga, the club will take part in the Champions League next season as well as the revamped FIFA Club World Cup in the summer of 2025, which are al

Topps Group (TPT LN) - Initiation: Market leader trading at cyclical lows

Topps Group is the UK’s largest specialist supplier and distributor of tiles and associated products to the UK’s domestic and commercial markets. Each of the last three years the Group has successfully achieved record revenue in a market that’s seen recent volume declines and regional peers enter administration. Following the right sizing of its business, Topps Group is now well positioned to capitalise on the economic recovery and continue taking share from competitors, supported by its global

Allenby Capital TMT Update - 13.05.24 - MIRI.L, MBT.L, PPS.L, CSFS.L, LST.L, DNM.L

Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.

Hardman & Co Insight: Streamed content takes over

The Great Correction of 2022 saw the share prices of streamers plunge after market leader Netflix reported a slowdown/fall in subscriber growth. Having formerly been seduced by hectic subscriber growth rates, investors quickly refocused, this time on fundamental metrics such as revenue, margins, profits and cashflow. Since then, streamers have continued to take a steadily greater share of viewing while linear TV continues to decline. But growth in streaming subscribers in the US and UK is now a