PSI Software - In transition, execution key to upside

PSI Software (PSI) develops and integrates process control software solutions for energy grid operators, manufacturing and logistics. PSI operates two segments: Energy Management (EM, 48% of H123 revenues), which provides intelligent software and solutions for energy grid operators, energy trading and public transport; and Production Management (PM, 52% of H123 revenues), which offers software products and solutions for production planning, production control and logistics across the metals prod

PSI Software - Energetic results across the grid

PSI Software (PSI) develops and integrates process control software solutions for energy grid operators, manufacturing and logistics. Business in the first nine months of 2021 (9M21) rebounded from the COVID-19-affected prior-year period, with sales and new orders increasing, while multiple key initiatives and acquisitions should support results throughout Q421 and beyond. Successfully executing its transition to a software product provider, reversing the decline in its international business an

Two steps forward one step back

PSI’s underwhelming financial performance and lower revenue guidance for FY16 reflect difficult trading conditions as well as retaining price discipline and moving away from lower-quality business lines. The transformation of the PSI’s model should advance in FY17 with the migration of key Production Management modules to its new software platform. We still see significant upside potential if PSI can execute its plan and expand margins well into double digits, although this may be at the expense

Near- and longer-term prospects solidifying

PSI has delivered a solid recovery in order intake and margins in 2015 to date and management expects double-digit growth in orders and revenues into early 2016. While we are mindful of the economic risks and exposure to the cyclical investment cycle in Electrical Energy, our confidence that PSI can sustain its growth and margin expansion trend is improving.

ThyssenKrupp strategic partnership

We believe that PSI’s partnership with ThyssenKrupp provides one of the first visible commercial benefits of PSI’s initiative to consolidate its software platform. It does not prompt a change to our estimates but should provide long-term support to the company’s production management division, to complement the positive dynamics in energy management.

On track despite Asian uncertainty

PSI’s H1 update is generally encouraging with order intake up 17% y-o-y driven by strength in the German energy and automotive industries and mostly solid trading across Europe. Weakness in China and Asia offset this somewhat and reduce visibility, but we believe our estimates are adequately supported. Delivery on this year’s estimates should improve confidence in the longer-margin expansion strategy, which is key to unlocking significant upside potential.

Morning Note – 25 July 2024

musicMagpie - Strategically positioning for profitability

musicMagpie’s (MMAG’s) H124 results reflected several strategic decisions taken by the management team to improve profitability and cash generation. The decision to make the US a sourcing-only geography to benefit margins had a notable impact on revenues, with US revenues declining by more than half. Despite the double-digit decline in group revenue, the adjusted EBITDA margin remained relatively stable at 4.4% (H123: 4.5%), reflecting the focus on profitability. The outlook remains challenging,

Hybridan Small Cap Feast - 25 July 24

* 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, or it is a rumour Dish of the day Admissions: None Delistings: None What’s baking in the oven? ** Potential**** Initial Public Offerings: ITF announced: 8th July 2024: Rome Resources: The Canada-based early-stage resource exploration Company has announced its intention to IPO on AIM in order to continue to make

National World Trading Update

National World has reported a Trading Update for the 21wks to 25th May in which revenues advanced +18% driven by acquisitions; we maintain our FY24 estimates.