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 13 research reports from 1 professional analysts.
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SNP SCHNEIDER-NEUREITHER & P
SNP SCHNEIDER-NEUREITHER & P
Scaling up for global growth
03 Apr 17
SNP Schneider-Neureither & Partner's (SNP) results indicated that the business environment remains healthy. The group has a strong balance sheet with net cash, boosted by the €30m capital increase last year, and has raised additional €40m in loan notes to build a war chest to make additional acquisitions. We have edged up revenue forecasts, but eased profits, to reflect the increased costs as it positions for the next phase of its growth. Given SNP’s strong market position in software-based transformation projects and assuming a sustained high level of activity, we believe the shares remain attractive on c 21x our cash-adjusted FY19 EPS.
Well positioned for further strong growth
01 Feb 17
FY16 was a hectic year for SNP Schneider-Neureither & Partner (SNP), with three acquisitions successfully integrated, a €30m capital increase and a mammoth contract win announced in Q3 to combine the IT landscapes of two US chemical companies (we assume Dow Chemical and DuPont) that are merging. Preliminary figures show FY16 revenues growing by c 42% to c €80m (we forecast €77m) and adjusted operating profit rose by c 66% to c €7m, for a c 8.8% operating margin. We are reviewing our forecasts and would expect to edge FY17 revenues higher towards the middle of the guidance, with the operating margin maintained at c 12%. Given SNP’s strong market position in software-based transformation projects, and the sustained high level of activity, we believe the shares remain attractive on c 22x our existing cash-adjusted FY18e EPS forecast.
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.
Recovery not reflected in the share price
25 Apr 17
Prelims for the year to January 2017 are in-line but more importantly they confirm the restructuring process is now complete, prove the commerciality of its cloud based platform and demonstrate a move towards higher margin services. PBT was £1.2m (against a loss last year), adjusted EBITDA grew 56% to £2m and cash from operations turned positive at £0.9m allowing a net cash position to be maintained. For this year, we expect PBT growth of 77% to £2.2m (previously £2.5m), implying a current PE rating of 15x. We reiterate our buy recommendation with a 2.2p price target as the turn around generated by Redstone has yet to be reflected in the share price.
Panmure Morning Note 25-04-2017
25 Apr 17
Blancco Technology, a leading provider of data erasure solutions and mobile device diagnostics, has issued a mixed Q3 trading update. On the positive side, revenue progression has been extremely strong, with a material acceleration in sales growth during the quarter: +48% CFX basis during 3Q17 vs +28% during 1H17. However, cash flow is weaker than expected and management has guided that year end net debt is expected to be £5.5m (previously we were looking for net debt of £3.6m). Due to the timing of cash flows management has identified the need for additional short term funding of £4m over the coming weeks.
N+1 Singer - Servelec Group - Calling the bottom
20 Apr 17
We are increasingly confident that Servelec’s travails are behind it and the business is returning to growth. Recent share price weakness looks unwarranted in this context and the valuation now looks compelling. Our forecasts are essentially unchanged, but we see medium term upside as the group’s markets improve. Servelec remains a key idea for 2017 and we reiterate our Buy recommendation and 325p Target Price.
N+1 Singer - Small-cap quantitative research - Growth style screen revamp and 10 focus stocks
06 Apr 17
We have reviewed the performance of our consistent growth screen since the previous refresh on 27 September 2016 and revamped the selection parameters to focus more on forecast sales and EPS growth going forward. In the period under review the consistent growth style screen outperformed the small-cap benchmark by c. 6% and underperformed the microcap index by a similar amount. Interestingly, although growth doesn’t always seem to be defensive as might be expected, however it appears right to buy growth on dips caused by or coincident with wider market volatility. In the new forecast growth screen we take a close look at 10 focus stocks. We will monitor performance and refresh it in three to four months time.
Pickup in H2 organic growth as expected
20 Apr 17
Headline revenue growth of 19% reflects a full half contribution of ID Scan and a pickup in organic growth to 12% across the year driven by the excellent performance from the higher margin international services. The mix effects of this growth resulted in EBIT of £17m, 4% ahead of our forecasts, and a 1.1pp improvement in the operating margin.