Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SNP SCHNEIDER-NEUREITHER & P. We currently have 11 research reports from 1 professional analysts.
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SNP SCHNEIDER-NEUREITHER & P
SNP SCHNEIDER-NEUREITHER & P
Harlex acquisition boosts SNP's presence in UK
04 Oct 16
SNP has acquired an initial 90% shareholding in Harlex Management, which owns 100% of Harlex Consulting, based in London, UK. Harlex specialises in SAP data migration (essentially transformation) projects. The acquisition gives SNP a physical presence in the UK, and hence a stronger position to target and deliver new business in the UK. Activity remains very brisk at SNP and in September it won a record $10m+ contract to combine the IT landscapes of two US chemical companies (we assume Dow Chemical and DuPont) that are merging. Given SNP’s strong market position in software-based transformation projects, we believe the shares are attractive on c 19x our cash-adjusted FY18e EPS.
Record win highlights the effective new strategy
27 Sep 16
SNP has won a record $10m+ contract to combine the IT landscapes of two US chemical companies (we assume Dow Chemical and DuPont) which are merging. The contract comes on the back of the landmark Hewlett-Packard carve-out contract that SNP delivered in record time in H215. The latest win is a further indication that the group’s growth strategy is paying off and underpins our forecasts. SNP has been experiencing strong demand for its products and services, particularly in the German and US markets. Earlier this year it significantly expanded its operations in Asia, and in July it raised €29m (net) via a rights issue. Headcount is expected to rise towards 700 by year end and there is no sign that the activity is slowing. Hence, we believe the shares are attractive on c 17x our cash-adjusted FY18e EPS.
Raising €29m (net) funds for growth
27 Jun 16
SNP is raising €31m (gross) in a rights issue of new ordinary shares. The new money will fund both organic growth as well as the group’s acquisition strategy. SNP has been experiencing strong demand for its products and services, particularly in the German and US markets, and earlier this year it significantly expanded its operations in Asia, via the acquisitions of Astrums and Hartung Consult. Headcount is expected to rise towards 700 by year end and there is no sign that the activity is slowing. Indeed, on 19 May the group received another major order for transformation software from a German industrial group. Hence, we continue to believe the shares are attractive on c 16x FY18e earnings.
Q1 organic growth was 30%
04 May 16
Business activity remained robust at SNP in Q1, as revenue jumped 52% to €18.5m, including 30% organic growth and an initial €2.6m contribution from the acquired Astrums and Hartung businesses, which were consolidated from the beginning of January. Q1 bookings were very healthy at €26.2m, representing 1.42x Q1 revenues, while the backlog lifted by 52% to €28.7m. Given the buoyant backdrop, we continue to believe the shares look attractive trading on c 18x our maintained FY17 earnings.
Activity in FY16 remains buoyant
07 Apr 16
Activity remains brisk at SNP, with utilisation rates very high, as the company continues to benefit from favourable structural growth drivers, the partnership with SAP, along with its elevated profile in wake of the landmark Hewlett-Packard deal of 2015. SNP has been winning new business with household names in the US including Kellogg’s. The outlook is supported by the group’s broadening global infrastructure following recent acquisitions, along with two training schemes in the US and Germany which represent an important part of the next growth phase. Given the buoyant backdrop, we continue to believe the shares look attractive trading on c 18x our edged-up FY17 earnings.
Underlying FY16 guidance edges up
03 Feb 16
Provisional FY15 revenues and profit are in line while the new FY16 guidance suggests a small upgrade. FY15 was a year of strong growth for SNP, helped by a prestigious contract to carve out the ERP systems of the demerging Hewlett-Packard. The group has benefitted from a greater number of projects while margins rose on the back of increased project complexity. Our new FY16 forecasts include the two recent acquisitions, along with a 1.6% underlying revenue increase to put our FY16 revenue at the mid-point of the new guidance. Employee numbers have doubled over the year to c 600 and as there is no sign that the activity is slowing. Hence, we continue to believe the shares are attractive on c 16x FY17e earnings.
Taking a prudent road
28 Nov 16
As flagged in September, H1 2017 profit is indeed below LY; adj. PBT of £0.5m compares with £1.5m in H1 2016 as Trakm8 invests heavily in new technology and acquisition integration. Management remains confident in another very strong H2 performance and in particular is focused on closing a couple of large high-margin software-related sales which would see the group meeting the original FY 2017 expectations of £5.9m adj. PBT. However, should these fall outside the March year-end, profits are only likely to be in line with last year’s £3.9m, albeit on a growing revenue base. Prudence dictates we assume a worst-case scenario in our forecasts so that surprise is only in the upside – if the deals close in the year, the company will meet those original revenue and profit expectations.
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
Deal beefs up media & broadcast operations
28 Nov 16
SCISYS is acquiring Germany-based ANNOVA Systems for an estimated deal value of £15.3m. ANNOVA is a leading supplier of software-based editorial solutions to the media sector. It has a track record of generating strong revenue growth and in 2015 won a landmark contract with the BBC, which underpins financial forecasts for 12 years. ANNOVA complements SCISYS’s dira! product offering for radio broadcasters, extends the group’s capabilities into television and creates cross-selling opportunities. The deal significantly boosts earnings, aided by cheap debt financing costs, and is value enhancing on our assumptions. Consequently, we believe the stock continues to look attractive on c 10x our FY17e earnings.
N+1 Singer - Morning Song 29-11-2016
29 Nov 16
Vp has reported another impressive set of interims, confirming strong growth in most markets and a positive outlook. Recent acquisitions are bedding in well and the full year outturn is set to exceed previous expectations (5%/6% EPS upgrades in FY17/FY18). The recent Capital Markets Day provided a reminder of Vp’s qualities (specialist focus, high returns, strong cash generation) and its growth potential, which in our view are not reflected in a modest <11x P/E rating. We firmly believe the shares are due a re-rating and see intrinsic value in excess of 800p.