Event in Progress:
Discover the latest content that has just been published on Research Tree
Webstep’s Q3 results were broadly in-line with our estimates, with revenues growth at 7% y-y and adding 4 more employees vs. Q2. We expect some of the temporary positive cost effects to also impact Q4. While Webstep is trading at a discount to peers, we consider this fair until it proves a headcount increase, and given for instance Bouvet’s Q3 revenue growth at 13% and sequential increase in employees at 56. As such, we reiterate our Hold rating.
Companies: Webstep AS
Q3 figures were broadly in-line with our estimates
Employees increased by 4 sequentially, expect flat headcount into Q4
High personnel costs though low utilization offset by Covid-19 savings
Compared; Bouvet with Covid-savings at NOK 22m of an EBIT at NOK 55m
Webstep reported Q2 revenues slightly below estimates, but EBITDA was stronger than expected. Some of the profitability improvement though was due to temporary effects and as such should not impact forward figures. We maintain our Hold rating until we see an improvement on headcounts, an important KPI on forward figures, where we only expect a slight increase in 2H/20. As such, we find other more interesting TMT shares in the near term.
Q2 revenue slightly below estimates due to churn, but EBITDA above
Temporary costs savings, government grants of NOK 4.8m in Q2
Negative Covid-impact of NOK -10m on Q2 revenue but only -1m on EBIT
Minor estimate changes expected
We maintain our Hold rating, as we do not expect a re-pricing of Webstep until it proves execution on recruitment and we get more clarity on Covid-19 effects. Despite a stabilized churn with an increase in Q2 in the number of employees (end of period), the Q1 results were softer than expected. This was driven by Norway (Oslo) and also an estimated negative COVID-19 impact of NOK ~3m.
Q1 results weaker than expected, driven by soft results in Norway
COVID-19 had a negative revenue impact of at least ~NOK 3m
The number of employees increased by 8 to 417 (Q4: 409) by quarter-end
..supporting our estimates and hence minor estimate changes expected
Webstep announced that it will suspend its NOK 1.6/share dividend
..this is changed to an authorization to resolve a dividend based on 2019
The dividend authorisation will be placed on the AGM agenda on 7 May
We cut our target to NOK 22 (28) following lower estimates and downgrade Webstep to Hold (Buy). We think Webstep needs to prove execution on recruitment and less use of subcontractors before a re-pricing. With lower growth than peers, we consider its discount as fair. Webstep announced a DPS at 1.6 (flat y-y), and though 7% yield looks attractive, it implies a pay-out ratio at 118%. This is supported by our FCF estimate but assumes improved execution in 2020.
Q4 revenues and EBITDA below estimates
The number of employees increased sequentially by 2 to 409 (Q3: 407)
DPS announced at NOK 1.6 (flat y-y) – in line with estimates
Still needs to prove execution before a re-pricing of the stock, we argue
Research Tree provides access to ongoing research coverage, media content and regulatory news on Webstep AS.
We currently have 20 research reports from 1
Weekly round-up of AIM-listed healthcare news.
Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics
Companies: ANIC RUA CREO GENI HEIQ IHC IXI IUG OPTI SBTX VAL VLG
*A corporate client of Hybridan LLP
Dish of the day
EnSilica (ENSI.L), has join AIM. EnSilica provides an end-to-end service for the design and supply of mixed signal ASICs, outsourcing certain elements such as the wafer fabrication of the manufacturing and packaging to third parties - otherwise known as a Fabless Semiconductor Model. ASICs are Integrated Circuits or semiconductor chips developed for a particular use or product rather than for general purpose usage. ASICs help
Companies: YGEN AFRN ALBA ART BLV CCS EPWN FIPP NWT KETL
Dish of the day
No Joiners Today.
No Leavers Today.
What’s cooking in the IPO kitchen?
Psych Capital PLC, intends to list on the AQSE Growth Market. Psych operates the Psych Platform (a business-to-business networking platform), that is developing the Blossom Database pursuant to a third party licensing arrangement. The Company also has an investment of 426,000 common shares in Awakn, a Canadian NEO Exchange listed psychedelics research and clinical group, with operations in th
Companies: YCA 7DIG BOOM DMTR EYE KIBO NFC RST SPSY
Companies: ARB D4T4 ORPH SPE
Kromek has announced that it has received an order from a US federal entity for the D3S-ID wearable nuclear radiation detector, which provides an early warning system for potential radiation threats. The order is worth $0.65m and is to be delivered in the coming months. This is the second order for the D3S-ID from this customer, following the award of a $1.6m two-year contract in September 2021, and provides further endorsement of Kromek’s capabilities within a market over which Kromek has visib
Companies: Kromek Group Plc
Having updated in April that FY22 revenues and operating profits were expected to be in line with consensus, Eckoh today updates that operating profits grew strongly in the period and will now be ahead of consensus. Revenues are expected to be in line. We suspect this means operating profits will be slightly above £5.0m compared to our forecasts of £4.9m. This de-risks our FY23 forecasts, where we are looking for AOP of £7.7m. We are forecasting FY23 AOP of £5.9m from the existing business, up f
Companies: Eckoh plc
TPXimpact has announced that it has spun out OpenDialog alongside a £4m raise by Dowgate Capital; TPXimpact will retain a 17% holding in OpenDialog at a post-new money valuation of £12.7m.
Companies: TPXimpact Holdings PLC
Despite lingering lockdown headwinds, FYJan22 saw continued strong growth for Smartspace’s two SaaS businesses, SwipedOn (visitor, employee and desk management) and Space Connect (meeting room and desk management), driving combined ARR up 64% organic to £4.9m. SwipedOn ARR grew 57% yoy (>85% of total ARR) with Space Connect ARR up almost threefold. Encouraging trading through to end April (ARR rose to £5.5m) underpins Smartspace’s continued expectations for “further strong growth in FY23”. Key d
Companies: Smartspace Software Plc
Dish of the day
Lekoil, the oil and gas exploration and production Company with a focus on Nigeria and West Africa has joined the Access Segment of the AQSE Growth Market. The Company was previously listed on AIM (LEK.L), however, Ordinary Shares have been suspended from trading on AIM since October 2021.
No Leavers Today.
What’s cooking in the IPO kitchen?
Psych Capital PLC, intends to list on the AQSE Growth Market. Psych operates the Psych Platform (a business-to-business ne
Companies: CZA AXL AEE CORA D4T4 EKF ORPH PWM PPH SYM
Companies: Cerillion Plc
1Spatial continues its US expansion with the announcement of a contract win to support replacing the Transportation System Network (TSN) for the California Department of Transportation (Caltrans). The contract is worth c $1.4m over four years, including US$0.7m in software licence revenue, and was won in partnership with Rizing, a global SAP partner. The US market is a key growth engine for 1Spatial and the Caltrans win shows its strategic plan continues to bear fruit. This contract follows othe
Companies: 1Spatial Plc
Companies: FDM Group (Holdings) plc
Immotion is a leading Virtual Reality (VR) experience provider. Following on from the 24 seat Pittsburgh Zoo contract in April, the group's announcement this morning that it has signed another and even larger major zoo contract provides further confirmation of the strength of demand for its new Gorilla Trek offering. Under the agreement with Milwaukee County Zoo, Immotion will install a 40 seat VR Theatre experience, which attracts around 1.3m visitors per annum. The attraction will be located a
Companies: Immotion Group Plc
H1 revenues declined modestly to £0.8m due to the already flagged expiration of a legacy contract. Investment in direct sales and marketing led to an increased operating loss of £2.8m (PY £2.2m) as Actual Experience transitions from start-up to scale-up. Admin expenses are expected to fall in H2 as product investment is now largely complete and marketing expenditure is reduced. Management sees market conditions (hybrid working) as favourable and its new Digital Workplace Management System (DWMS)
Companies: Actual Experience plc