Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ESKER SA. We currently have 8 research reports from 1 professional analysts.
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Q416 in line, positive outlook for FY17
19 Jan 17
Esker has reported Q416 and FY16 revenues in line with our forecasts. Strong growth in new contracts combined with c 80% recurring revenues support continued growth and the company expects to generate double-digit organic revenue growth in FY17. We leave our forecasts unchanged pending full-year results in March. We note that Esker had net cash of €15.9m at the end of FY16, providing ample funds for investment to drive growth.
German EDI acquisition
31 Oct 16
Esker has signed an agreement to acquire e-integration, a German electronic data interchange (EDI) business, for an undisclosed amount. This complements last year’s acquisition of CalvaEDI and strengthens Esker’s presence in German-speaking countries. With a similar business model to Esker, e-integration will add recurring revenues and a strong German customer base.
Strong H1 supports FY16 outlook
23 Sep 16
Esker's H116 results confirmed that the company is on track to meet its revenue growth target for FY16 and profitability has increased on a year-on-year and sequential basis. SaaS-based revenues continue to grow and make up an increasing proportion of revenues. We leave our forecasts substantially unchanged.
H116 trading supports FY16 outlook
20 Jul 16
Esker’s Q2 revenue update confirms that the company is on track to hit its revenue growth target for FY16. Q216 y-o-y revenue growth of 14% and H116 organic growth of 15% underpin our forecast for FY16 revenue growth of 15% and consequently we maintain our forecasts. The company’s strong balance sheet supports its organic growth and acquisition plans.
04 May 16
After a strong performance in FY15, Esker is on track to generate doubledigit revenue and margin growth in FY16 and FY17. We upgrade our FY16 forecasts to reflect stronger revenue growth combined with increased investment in the business, and we introduce FY17 forecasts for 10% revenue and 16% earnings growth. Investment in product development, either internally or via acquisition, should support sustained growth.
Strong underlying growth drives upgrades
27 Jan 16
Esker’s FY15 revenue update confirmed that strong growth continued into Q415, with full year revenue growth of 27% and organic constant currency growth of 13%. The company expects strong growth to continue in FY16 – we have upgraded our forecasts to reflect this, with EPS upgrades of 10% in FY15e and 13% in FY16e.
N+1 Singer - NCC Group - Further issues in Assurance
22 Feb 17
NCC released a trading update yesterday afternoon highlighting further issues in its Assurance division. Sales growth has been lower than expected in all regions, resulting in a significant reduction in full year expectations. We have reduced our EPS forecasts by 25% in FY’17 and 22%/25% in FY’18/’19 respectively. Escrow continues to perform in line with expectations. In response to these issues the Board has announced a strategic review into all of the Assurance businesses. The results of the strategic review are expected to be announced at the FY results in July. With an extended period of uncertainty on the horizon we believe it will be hard for investors to gain confidence in NCC in the short term. That said we see fundamental value in the stock. Escrow is unaffected by this warning and remains an extremely high quality business, which we value at £353m in our SOTP. At the current share price this leaves Assurance valued at c.5x cal’17 EBITDA. While this appears to be an attractive multiple for a rare cybersecurity asset, we would like further clarity on the underlying nature of the current issues, hence our Hold recommendation. Our 138p target price assumes a 12x EBITDA multiple for Assurance but we apply a 20% discount to the group to account for the current uncertainty.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - PROACTIS Holdings - H1 in line
20 Feb 17
A positive interim trading update confirms that H1 results are in line with expectations, with revenues up 36% to c£11.8m on the back of strong organic growth (13%) and an in-line contribution from acquisitions. We make no changes to our forecasts, recommendation and target price pending the release of interim results on 26 April.