Focus Home delivered better than expected Q2 FY 22 thanks to new game release. Group reiterates its FY 22 sales guidance but notes profitability this year will be under pressure given underperformance of Hoods: Outlaws and legends and Warhammer Age of Sigmar. In the meantime, Focus announces a new bolt-on acquisition and renewed partnership with Saber which adds five new game in the pipeline. These actions are supportive for the mid to long term growth.
Q2 FY 22 up +12% at EUR 44m (well abov
Companies: Focus Home Interactive (ALFOC:EPA)Focus Home Interactive SA (ALFOC:PAR)
Following a soft Q1 FY 22 and delays to new games, Focus Home reduced its FY 22 sales guidance and now aims for FY 23 sales below consensus estimates. While painful, in our view this is the right decision if the games are not polished enough. Mid-term prospects remain solid given higher budget games, new partnerships and internal projects. New bank financing (EUR140m) and the recent capital increase (c.EUR70m) give ample room for transformative MandA.
Q1 FY 22 weaker than expected due to soft
FY 21 results came in line with our estimates with EBIT up +29% YoY. Despite mixed reviews, performance of recently released games appear decent. Line up for the rest of the year is solid enough to at least reach the mid-point of guidance. FY 23 could see a net acceleration of sales given major projects (Plague Tale: Requiem + 2 big projects to be revealed by end of 2021). After recent capital increase, Focus Home has what it takes to invest in transformative deal.
FY 21 EBIT up +29% driven by
As expected, Q4 21 sales were solid (+23% YoY) thanks to sustained momentum for the back catalog. Looking at FY22, lower back catalog should be offset by stronger contribution from new games (solid pipeline). Focus announced a second acquisition with a majority stake in Streum On (partner studio since 2013). We leave our estimates (company definition) mostly unchanged while waiting to have more visibility on ''Streum On'' deal impact on FY 22 margin.
Q4 21 sales in the high end of company gui
Focus Home interactive is a French video game publisher that produces and releases video games (AA games mostly) on multiple platforms across the globe. Following a change in majority shareholder, a new management was nominated and is looking to expand the group''s presence across the value chain by increasingly internalizing the development of game and IP ownership.
A leading publisher of AA games
Unlike large listed players (Activision-Blizzard, Ubisoft), which largely vertically integrate
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Friday's market sell off saw some violent downward moves in many stocks with little initial differentiation between sectors or the key drivers of businesses, creating significant share price drops in a number of higher quality or uncorrelated names. We take a look at some stocks we believe have either seen an unwarranted sell-off, have seen weakness go under the radar or where there is now a more attractive opportunity.
Companies: ANX IBPO CYAN SOM EQT AFM
Companies: Cerillion Plc
Gresham has won an extension and expansion deal with a long-standing Tier 1 investment bank customer as it continues to standardise on the Clareti platform. Including this and other deals, current ARR rises to £23.3m, a 5% organic uplift from end June. Clareti/Electra are trading in line, though Gresham flags potential for further new business in FY21 and an “encouraging pipeline” for FY22. Non-Clareti revenues are performing ahead of expectations leading us to upgrade FY21 revenues and adj. EBI
Companies: Gresham Technologies plc
Adjusted EBITDA growth of +19% YoY in H1A reflects both higher margins and higher quality revenues. The Group now has 50%+ visibility over H2E revenues. This year will be second half weighted too but returning momentum post COVID-19 means the business is now in a much stronger position. Fair value lies in excess of twice the current price. Buy.
Companies: Shearwater Group plc
GB Group (GBG) has announced a conditional agreement to acquire Acuant, a leading player in the US identity verification market. At an enterprise value of £547m, it marks GBG’s largest acquisition to date. The deal strengthens GBG’s position in the US, broadens its product offering and accelerates its technology roadmap. We have revised our forecasts to reflect the placing and the acquisition and our normalised EPS forecasts decline 3% in FY22, are flat in FY23 and increase 3% in FY24.
Companies: GB Group PLC
tinyBuild announced the acquisition of Versus Evil, a publisher based in the US, and Red Cerberus, its development services subsidiary in Brazil. We estimate tinyBuild is paying only 5.4x 2022 EBITDA, based on upfront payment only and estimates that do not lead to earnout payments. We raise our 2022 EPS estimate by 10% (see overleaf). The acquisition provides tinyBuild with access to talent and IP in Latin America as well as in-house Quality Assurance, testing and localisation capabilities.
Companies: tinyBuild Inc.
Intercede has reported interims confirming performance in line with unchanged expectations. 9% revenue growth at constant currency (2% reported), as reported at the October trading update, remains on track with our 10% constant currency (5% reported) forecasts. EBITDA of £0.4m, compared with £0.6m EBITDA in 1H21, reflects the impact of pay rises, with the benefit of reduced interest charges post the CLN conversion doubling adjusted PBT from £0.1m to £0.2m. The five Cs (colleagues, customers, ch
Companies: Intercede Group plc
Arcontech has announced that its trading performance is below current market expectations due to one customer reducing its market data spend with the company, and notification from another customer that it will not be renewing its contract from the start of H2 22. The two changes are unrelated and do not involve customers with Arcontech’s core MVCS server-side solution. They instead reflect one customer greatly scaling back its market data team and market data requirements, and a second choosing
Companies: Arcontech Group PLC
Finals to June 2021 are in line with the July TU, detailing the very strong performance which had led to upgraded expectations (+5% EBITDA, +7% adj PBT & adj dil EPS), and which are politely exceeded, with EBITDA ahead a further 3% and adj dil EPS +5%. Reinforcement of the strong balance sheet led to £32m y/e cash (no debt) after £8.8m free cash flow. The three strategic pillars each contributed, delivering increased ARPC +16%, from larger numbers of customers, 22% international revenue growth,
Companies: dotDigital Group plc
MCB acquisition announced: Snap reaction
Companies: Glantus Holdings PLC
Intuit continued with its exceptional run and had a robust fourth quarter capping off an exceptional year. Their full-year revenue increased by a staggering 25%, including the addition of Credit Karma with the fourth quarter alone contributing $2.6 billion to the top-line. The biggest drivers of the top-line growth are the Consumer Group segment which grew by 16% and the Self-Employed Group which grew by around 14%. These have wonderfully complemented the company’s core QuickBooks Online offerin
Companies: INTUIT (INTU:NYSE)Intuit Inc. (INTU:NAS)
Autodesk delivered yet another outstanding second-quarter results with a subscription revenue growth of 21%. Its AutoCAD and AutoCAD LT revenues increased by an impressive 12% whereas its AEC revenue increased by 21%, and manufacturing revenue increased by 12%. However, there was a selloff in the stock after its earnings given the management’s decision to tweak its billing strategy for its large enterprise clients. Earlier, companies would pay Autodesk upfront for three-year subscriptions and ge
Companies: AUTODESK (ADSK:NYSE)Autodesk, Inc. (ADSK:NAS)
Arrow Exploration Corp. (AIM:AXL; TSXV:AXL), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, has joined AIM, alongside a fundraise of approximately £8.8m.
No Leavers Today
What’s cooking in the IPO kitchen?
ATOM headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas com
Companies: SPA ECR KP2 SAR SYM