Research Tree | Equity Research for Private Investors

Level the playing field with real-time Equity Research

Equity Research platform for private & non-institutional investors.
Our software learns which sectors, industries, and markets you're interested in to help you discover new stocks.

The Equity Research Platform

Equity research, broker reports, target prices, and valuations on UK-listed companies in real-time.

Our platform learns which sectors, industries, and markets you're intersted in to help you discover new stocks.

19 Sep 18

Cenkos: Seeing Machines Ltd - Smooth transition for fleet

This morning, Seeing Machines released its FY18 results within which there is an increase in the forecast revenues from the five automotive OEM deals to A$138m (from A$110m), demonstrating the ever-broadening scope for DMS. The board has opted for a smooth transition to a license model for the fleet business and based on this we have substantially pared back our revenue expectations for FY19. Despite this, we believe Seeing Machines remains funded through FY19 thanks to lower expected cash requirements associated with the license model. We re-instate our BUY recommendation and adjust our target price to 15p (from 19p) to reflect recent events.

Companies: Seeing Machines

18 Sep 18

Board changes accompany Interim results

Interim results are in line with the previous trading update, although the outlook statement now points to some slightly softer market conditions, particularly in Flowtech’s engineering-oriented business. The company has recently seen a delay for a customer contract in PMC, which is likely to result in the group trading marginally below expectations. Sean Fennon has also announced that he is retiring as CEO, with Bryce Brooks stepping up to the plate. We reduce our 2018 EPS forecast by 7.7% to 14.8p, with a 5.7% reduction also in 2019. Our TP also reduces by 7% from 215p to 200p.

Companies: Flowtech Fluidpower

18 Sep 18

Cenkos: CloudCall Group Plc - New CRMs to drive additional growth

The 30% revenue expansion secured in H1A has been driven by voice-only products. H2E will see a broadened launch of the unified communications platform and further growth opportunities. The recent fund raising has helped finance the development of a scalable architecture and widen the number of CRM integrations which should lead to supplemental revenue expansion thereafter. The over-sold stock price is not fairly valuing the enlarged addressable opportunity in our opinion.

Companies: Cloudcall Group

19 Sep 18

FY 2018 results – Boots to range Skinny Tan

Full-year results were in broadly line with the 19 June trading statement, with revenues rising 21% to £10.7m (£0.3m shortfall attributed to timing and despatch of June sales into July), resulting in a pre-tax profit of £0.7m and year-end cash of £1.9m. Confirmation that Boots is to range Skinny Tan online and in 1,250 (50%) of its UK stores from February/March 2019 significantly expands the retail footprint to more than 2,000 stores (2.7x), whilst Roots should benefit from a 4x expansion to more than 1,600 stores by year-end. We retain a 220p target price, which implies a calendar-adjusted 2019 P/E, EV/EBIT and EV/Sales of 24x, 14.0x and 1.8x, respectively. Strong growth expectations justify these premia.

Companies: Innovaderma

18 Sep 18

A year of transition

H1/FY2018 represents another period of significant development at Flowtech. Organic growth of c.9% and the benefit of the Balu acquisition in March for £10.2m, alongside four during H2/FY2017, has seen revenue increase by 65.1% to £56.4m, and operating profit from £4.5m to £5.7m (margin 10.1%). These acquisitions have also driven an improvement in the gross margin by 2% to 36.1%. The Board remains highly confident in the direction of travel and its commercial positioning to capture much further scale within the €12.4bn European fluid power sector. However, the shorter-term focus is firmly on investment that can deliver sustained operational improvements, procurement benefits and wider Group synergies. Our reduced forecasts incorporate increased operational costs associated with this investment and additional overhead from recent acquisitions. We also take a more cautious tone within Flowtech’s OEM-based businesses, including uncertainty on timing over a £1.5m order. Nevertheless, Flowtech continues to trade at a discount to peers on a PER of 11.5x in FY2018E, falling to 10.6x in FY2019E.

Companies: Flowtech Fluidpower

18 Sep 18

Focusrite - Second-half trading as expected with higher cash

Focusrite ends the year with revenue as forecast, continued profit growth in the second half and revenue in line with our expected slower second-half growth. Cash of £22.8m is 10% higher than we forecast and is now over half the balance sheet. US tariffs will likely apply to Focusrite’s business there and management has been considering its response, while risks associated to Brexit appear relatively minor to us. It seems the share price continues to discount a significant acquisition.

Companies: Focusrite

18 Sep 18

Cenkos: Bango Plc - Interim results

This morning, Bango announced interim results for the period to 30 June 2018, showing a strong increase in End User Spend (EUS), up 138% to £220m. EUS growth remains on track to more than double for the fourth consecutive year. Audiens has added a completely new and high margin, revenue stream during the period and there remains a growing pipeline of new MNO/App Store integrations to complete as well as further Google Play upgrades, together representing well over US$4 billion in EUS. Further expansion of the Bango platform has also enabled MNO customers to sign-up for Amazon Prime Video in the US, UK and India, and Pandora customers in the US; generating new subscription-based revenues for Bango.

Companies: Bango

24 Sep 18

LIBERUM: Miton Group* - Initiation - Hard work pays off - inflection reached

Miton Group is a small fund management company with everything optimised - right people, right funds, right systems. It offers top performing, high active share funds at the right price, and as a result it is gathering assets at pace.

Companies: Miton Group

24 Sep 18

Cenkos: XLMedia Plc - Resilient H1

A confluence of regulatory changes and malicious activity negatively impacted H1A but the impact of these on XLM's markets is beginning to unwind. Meanwhile, the company is successfully diversifying its economic interests into other growth markets. The sell-off in stock price is disproportionate to the financial impact of these temporal changes.

Companies: XLMedia

18 Sep 18

All on track for ramp-up in H2’18

CloudCall’s performance in H1’18 was robust, as per the pre-release, with management confirming its H2’18 outlook and target to break-even during FY19E. Our estimates are unchanged. On strategy, the Phase II roll-out of UCS is due to go live in Q4’18, positioning the group to accelerate into FY’19E. We reiterate our Buy rating and continue to see compelling upside.

Companies: Cloudcall Group

17 Sep 18

CEO Appointment & board changes

boohoo Group has this morning announced the appointment of John Lyttle as Group CEO (effective 15th March 2019) and the re-alignment of its wider executive board as it positions itself for the next stage of growth. John is currently the COO of Primark, one of Europe’s fastest growing and most profitable retail businesses, a role he has been in for eight years. His appointment brings complementary operational experience to boohoo’s senior management team as it focuses on rolling out the infrastructure and technology needed to realise its ambitions of reaching £3bn in annual sales. Joint co-founders Mahmud Kamani and Carol Kane will remain close to the businesses, moving to Group Executive Chairman and Group Co-Founder and Executive Director respectively, with a focus on driving the longer-term strategy and creative vision for the enlarged Group. Current Non-executive Chairman Peter Williams will step down from his role next March with a replacement NED role to be announced in due course. Interim Results will be announced on 26th September, and the shares trade on 44.3x FY19 PE based on Friday’s close.

Companies: Boohoo.Com

19 Sep 18

Cenkos: RA International Group Plc - Interim results

RA International has announced interim results for the period to 30 June 2018. The strategy of pursuing larger and longer duration contracts has started to deliver, with RA successfully winning a 5-year contract with UNICEF and a further 5-year US$30m contract with the UN in Somalia in August. The bid pipeline has increased significantly since the June flotation and, in total, contracts worth US$63m have been won in 2018. Accordingly, management expects a stronger H2/18. Trading at a 2018E PER of 11.4x and EV/EBITDA of 8.9x, falling to 10.7 and 6.8x 2019E respectively, we believe RA offers significant upside potential from the current level. RA also provides a prospective yield of 0.5% with dividend payments commencing in the current year.

Companies: RA International

18 Sep 18

Cenkos: Smart Metering Systems Plc - Interim results

SMS has reported interim results for the period to June 2018 showing a significant increase of 43% in annualised recurring revenue (ARR) to £69.3m. Investment in meter assets, particularly domestic smart meters, increased in the period to a record £78.3m, up 60% (H1/17: £48.9m) and growing the portfolio of assets managed to 2.5m, up 24% since FY17 and 50% since H1/17. The core strategy of SMS remains to build its meter asset portfolio on which it earns long term, index linked ARR. ARR had reached £71.4m by 31 August 2018, 95.2% of our current FY18 forecast of £75m. The recent weakness in the share price has created an opportunity, that in our view, investors should not miss out on and we strongly recommend buying the share.

Companies: Smart Metering Systems

18 Sep 18

Cenkos: Redde Plc - Forecast upgrade

Redde's strategy of continuous operating improvement, enabled by integrated technology and a strong customer service ethos, remains a sustainable competitive advantage. Low debt adds to competitive flexibility. We have raised our EPS forecasts by 10%+. Offering a 6.4% prospective dividend yield (with 8% DPS growth pa), we reiterate our Buy.

Companies: Redde

19 Sep 18

LIBERUM: Science in Sport* - Initiation - Moving forward

SiS operates in a structurally growing market in which it is rapidly taking share through its distinct market position and product range. The approach towards quality, cutting-edge science and banned substance testing is unique and is the only brand with dual accreditation at site and product level.

Companies: Science In Sport

24 Sep 18

Safe and attractive investment, despite nil capital gains

As expected, Corporación Financiera Alba reported a sharp decline in its net profit (€68.2m in H1 18, vs. €426.4m in H1 17). This drop is mainly explained by capital gains on the ACS sale made in H1 17 (Alba has sold the remaining 7.52% of its ownership interest in ACS for €743.4m, with €352.7m in capital gains). Alba’s NAV stood at €4,243.8m on 30 June 2018, i.e. €72.87 per share, a 4.8% increase over H1 18 and a 31.7% discount to NAV. Alba trades as usual at a considerable discount to NAV. Over H1 18, Alba invested €544.2m in various equity stakes and carried out various sales of assets for €103.9m, reducing its net cash position to €357.3m on 30 June 2018. Like every year, in June 2018, Alba distributed a €28.1m gross supplementary dividend to its shareholders charged to profits of 2017, i.e. €0.50 per share.

Companies: Corporacion Financiera Alba

24 Sep 18

Kape Technologies - Strong H1 performance

With Kape’s transition to a consumer cybersecurity business essentially complete, investors can focus on the trends in its core business. The interim results highlighted big improvements in both margins and visibility. A doubling of subscribers helped drive a 178% y-o-y rise in underlying EBITDA. We leave our estimates unchanged but with Intego adding $3m in subscription revenue in H2, the mix and margins should improve further. Stripping out $52m of cash, Kape trades at 19x FY19e EPS.

Companies: Kape Technologies

24 Sep 18

La Doria - Building for the future

La Doria’s results again demonstrate the strength of the business and the underlying strategy. Despite a continued challenging macroeconomic backdrop and a tough trading environment, sales were up 2.5% during the period, and 3.7% at constant currency, entirely driven by volume growth. As ever, the important factor at this stage in the year is the outcome of the seasonal campaigns. With regard to tomatoes, the 2018 campaign was critical due to adverse weather conditions, which caused volumes to fall and affected quality, hence production costs will be up. The fruit campaign was characterised by higher costs for peaches and nectarines, whereas apricot, apple and pear prices are expected to remain stable. We leave our estimates unchanged at this stage.

Companies: La Doria

24 Sep 18

Cenkos: Trinity Exploration & Production Plc - Initiation & H1/18 Interim Results

Trinity released its H1/18 update this morning, following a transformative six months in which the Company recommenced drilling and grew production. The first six months of 2018 saw a YoY 16% increase in oil production yielding an impressive 58% uplift in adj. EBITDA (operating profit before taxes, adjusted for DD&A) to US$9.3 million (US$18.6/bbl) and sustained a robust operating break-even of US$28.5/bbl. The post period fundraise of US$20m has left the Company debt free and able to accelerate its onshore drilling programme to deliver double-digit annual production growth. This increased production is set against a largely fixed cost base, which combined with the higher oil price, ought to deliver significant growth in profitability. Trinity has a resource base, the production potential and profitability far in excess of the majority of its AIM oil and gas peers. We believe the share price is trading at an unjustified discount to underlying asset value and initiate coverage with a target price of 38p and a BUY recommendation.

Companies: Trinity Exploration & Production

24 Sep 18

Boku - Agreement with Rakuten

24 Sep 18

Cenkos: Duke Royalty Ltd - Increasingly diversified portfolio

Today's results reflect royalties from only 3 partners, who in combination produce c£3m of annualised royalty income prior to any resets. Post year-end, the company has completed a further 2 royalty investments, one of whom utilised the £42m net proceeds raised in August. Duke has identified a further 3+ new names to add to the portfolio in FY19E. This added diversification will reduce overall risk across the portfolio and generate royalty income of c£9.0m pa. In turn, DPS should rise to 3.6p p/s by FY20E, providing a market leading yield of 8% on current pricing.

Companies: Duke Royalty

24 Sep 18

Cenkos: OPG Power Ventures Plc - Resetting & Refocusing on Maximum Value

OPG has announced its Mar-18A results with LFL revenue increasing 3% YoY to £140.1m, and profitability affected by the well-covered high coal prices. Following the sale of 5% in OPG Gujarat (now BVP), and subsequently selling its control (46% remaining), the company has deconsolidated the BVP business. OPG's financials are restated for the deconsolidation, providing heightened transparency into the profitable Chennai operations. It was initially expected that the initiated Resolution Plan would conclude in August 2018, however, the process continues. No further funding from OPG is intended to flow to BVP. We release new forecasts for FY19E and FY20E. We assess OPG's FY19E P/B of c0.4x (post-deconsolidation) as too deep a discount to the Global Electric Utilities Index's P/B of c1.3x (FactSet) and India Electric Utilities Index's P/B of c1.1x. As such, we upgrade our recommendation to Buy based on the valuation of continuing operations.

Companies: OPG Power Ventures

24 Sep 18

Cenkos: CloudCall Group Plc - Strongly undervalued

Vonage has announced that it is acquiring one of CloudCall's key competitors, NewVoiceMedia. This acquisition provides strongly favourable read-across valuation data. The CloudCall share price has now reached a level which is disconnected with anything approaching fair value. We are strong Buyers.

Companies: Cloudcall Group

24 Sep 18

Cenkos: XLMedia Plc - Resilient H1

Companies: XLMedia

24 Sep 18

Consecutive disappointing releases hit the upside hope

Due to the tougher competitive environment and the prolonged hot weather period which should continue to impact winter trading, TCG has cut its FY18 operating profit expectations to around £280m, which is 13% lower than the current consensus expectations.

Companies: Thomas Cook Group

24 Sep 18

Cenkos: Landore Resources Ltd - BAM update

Drilling at Junior Lake has successfully identified a second significant gold mineralised zone in the “gap”, 400m along strike to the west of the existing BAM Gold Deposit. The new mineralised zone extends for 500m length from 1500E to 1000E and has been drilled to a vertical depth of approximately 220m. The zone remains open to the west and at depth. The recently completed drilling successfully intersected widespread gold mineralisation of similar widths and grade to the existing BAM Gold Deposit with multiple instances of visible gold. Intersections included drill hole 0418-664 reporting 31.24 metres at 1.30g/t and drill hole 0418-665 reporting 1 metre at 28.80g/t.

Companies: Landore Resources

24 Sep 18

Nasstar - Interims – investing for growth

Interims are in line with unchanged FY18 forecasts, as confirmed at the July trading update: EBITDA of £3.0m, revenue of £12.5m, representing 50% and 54% of FY expectations respectively, with investment in a large contract implementation team delivering a growing base from which to accelerate client on-boarding. Forecasts are restated as illustrated at prelims (May) and reiterated in July, translating into post IFRS9, 15, and 16 equivalence, as expected. 6% (all organic) revenue growth delivered continuing growth in the recurring revenue to £1.914m per month (+6%), recurring revenue representing 91% (1H17: 92%) of total reported revenue. The Nasstar 10-19 initiative has delivered marked margin improvement alongside a deeper leadership team, technological consolidation, automation, focused client account management and improved ARPU and client retention. With the successful delivery of the 1,000-seat, fully managed hybrid cloud solution, and two other complex projects ongoing, Nasstar retains visibility and consistent growth in high quality earnings. Target 15p reiterated.

Companies: Nasstar

24 Sep 18

Accsys Technologies - Accoya volume rising, more capacity on stream

AGM comments point to operational progress at Arnhem and an on-track construction schedule for the new Tricoya facility at Hull. Accsys has set out a clear development plan for the group; while we are not placing undue weight on a short trading period, we are encouraged to see that growing revenues and production volumes have been achieved in the year to date.

Companies: Accsys Technologies

24 Sep 18

Morning Note – 24 September 2018

Companies: CYAN MMX NASA PPC

24 Sep 18

LIBERUM: NewRiver* - Growing the pub portfolio

NewRiver's capital markets day set out its ambition to further expand its pub portfolio, towards over 30% of its assets. The visit also demonstrated the operational capability of its management team to manage its estate and its property expertise which can be drawn on to maximise alternative use.

Companies: Newriver Reit