Claranova - Stable performance year to date

Claranova reported a revenue decline of 1% for the nine months to 31 March 2022 (9M22), reflecting a strong performance in Avanquest offset by a tougher period for PlanetArt. The slowdown in PlanetArt’s activities has pushed out the company’s target to achieve €700m in revenue from FY23 to FY24 but the EBITDA margin target of 10% for FY23 still stands. We have revised our forecasts to reflect H1 results and Q322 revenue; we cut our PlanetArt growth forecasts for Q422/FY23 and factor in a contrib

Claranova - Gradual return to growth

Claranova reported revenue growth of 3% y-o-y in Q222 and 1% y-o-y for H122, with growth in Avanquest and myDevices offsetting a decline in the PlanetArt business. Management expects to see a gradual return to growth for PlanetArt as it adapts its customer acquisition strategy and consumers revert to pre-COVID buying patterns, as well as continued positive momentum for Avanquest. We have made minor changes to our revenue forecasts and maintain our EBITDA and EPS forecasts for FY22 and FY23.

Claranova - Increasing stake in PlanetArt

Claranova has agreed to buy out a proportion of the 7.7% minority interest held in its PlanetArt subsidiary. The buy-out will be conducted in stages, with an initial purchase of 25% of the stake by March and up to a further 40% acquired over four six-monthly periods (linked to divisional EBITDA), reducing the minority interest stake to at least 2.7% for a cost of up to $38m/€33.5m. This follows the recent acquisition of the Avanquest minority interest and further simplifies the corporate structu

Claranova - Adapting to post-pandemic normal

Claranova reported Q122 revenue of €88m (-2% y-o-y), slightly better than its end-September expectation of a 5% decline. Now that the transition to subscription licensing is complete, Avanquest is seeing revenue growth accelerate. PlanetArt saw organic revenue declines in the last two quarters, but management is confident of a return to growth in Q222. We have revised our forecasts to reflect FY21 results and the Q1 revenue update.

Claranova - Post-lockdown hangover

Claranova has announced that it expects to report a 5% y-o-y decline in group revenue in Q122 due to lower than expected volumes in its PlanetArt division. After elevated activity during lockdowns, the division is seeing moderating demand, not helped by new privacy rules introduced by Apple. We have revised our forecasts to reflect lower demand in PlanetArt in FY22; we expect more clarity on both customer demand and the marketing environment when Claranova reports Q122 revenues in November.

Claranova - Simplifying the corporate structure

Claranova has raised new funds of €65m via an equity issue to two new institutional shareholders and a convertible bond and plans to use these to partially fund the buyout of the Avanquest minority shareholders. Taking full ownership of Avanquest simplifies the group’s corporate structure and gives management full control over the future of the division. As well as adjusting our forecasts to reflect these transactions, we have reduced our FY21 revenue and EBITDA forecasts to reflect Q421 perform

Claranova - PlanetArt growth accelerates

Claranova reported 31% y-o-y revenue growth for Q321, or 30% on an organic, constant currency (cc) basis. PlanetArt saw growth accelerate to 45% (42% organic, cc), helped by the successful integration of Personal Creations and subsequent launch of FreePrints Gifts in the US. Avanquest returned to growth having completed the transition to subscription licensing. We have revised our forecasts to reflect Q3 results, with a small upgrade to revenue and EBITDA in both years.

Claranova - Profitable growth in H121

Claranova made good progress in H121, with organic constant currency revenue growth of 17% y-o-y and EBITDA growth of 106% y-o-y. Recent acquisitions made by PlanetArt are progressing well and the division is seeing growing demand in its target markets. Avanquest has completed most of the shift to subscription licensing, positively affecting margins. We have revised our forecasts to reflect stronger growth and profitability for PlanetArt.

Claranova - Managing supply and demand

Claranova generated 17% constant currency organic revenue growth in H121, despite COVID-19 related supply challenges. Demand remains high in PlanetArt, which reported 23% constant currency organic growth in H121. Management expects H121 group EBITDA to nearly double y-o-y and we have upgraded our FY21 profitability forecasts to reflect this.

Claranova - Demand held up in Q121

Claranova has reported another strong quarter of revenue growth in Q121, with reported revenue up 29% y-o-y and organic, constant currency revenue up 23% y-o-y. PlanetArt was the driver of growth, with good performance from the original photo-printing business and the acquired personalised gifts business. We have increased our revenue forecasts to reflect Q1 performance but due to the high level of uncertainty caused by COVID-19, we maintain our EBITDA forecasts for FY21 and FY22.

Claranova - On track for strong earnings growth

Claranova reported strong organic revenue growth in FY20 while the EBITDA margin reflected the immediate strategic priorities of PlanetArt and Avanquest. The recent acquisition of CafePress is part of PlanetArt’s evolution to become a provider of personalised e-commerce and we have revised our forecasts to incorporate the deal. We note the group’s strong cash position which provides funding for future internal and external investment.

Claranova - PlanetArt acquires CafePress

Claranova has bolstered its position in the personalised product market with the acquisition of CafePress for an undisclosed amount. The acquisition brings new product categories, a marketplace platform and licences from properties such as Marvel and Hasbro. We see scope for both cost and revenue synergies once integrated into the PlanetArt division; we will update our forecasts with FY20 results on 30 September.

Claranova - Strong finish to the year

COVID-19 lockdowns were a positive driver of demand for FreePrints photo printing services and also boosted demand for Avanquest’s proprietary software products. With FY20 revenues (€409m unaudited) coming in 7% ahead of our expectations, we have revised our FY20 forecasts resulting in a 47% upgrade to EBITDA and a 120% upgrade to our normalised EPS forecast. Our FY21 forecasts remain essentially unchanged. The company will report FY20 results on 30 September

Claranova - Lockdown drives FreePrints user growth

Claranova reported 8% organic revenue growth for Q320, despite COVID-19 starting to affect the business from March. Demand has increased in the Printing business since lockdown and in May the Gifting facility in the US started production again. We have increased our FY20 revenue forecast by 3.5% to reflect these factors and increased our EBITDA forecast from €11m to €13m. Our FY21 forecasts are substantially unchanged.

Claranova - Factoring in potential COVID-19 risks

Claranova reported H120 revenue growth of 68%, of which 19% was organic. Higher than expected marketing spend combined with the first- time consolidation of the lower margin Personal Creations business reduced the growth in adjusted EBITDA to 3%. While Claranova has seen a limited impact on demand from COVID-19 disruption as most business is initiated online, we have taken a cautious stance for H220 due to the potential disruption in supply and production. We note that the company had a net cash

Cenkos: Healthcare Sector - Ward Round

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

LIBERUM: Bango* - Agreement signed with global player

Guidance cut on a continuing higher return rate

Asos has cut its FY22 guidance as shoppers return more clothes amid inflationary pressure. The group also continues to work actively against the ongoing global supply chain challenges. The FY22 top-line is expected to grow between 4%-7% vs .10%-15% previously Adj. PBT will be in a range of £20m-£60m vs. £110m-£140m.

Hybridan Small Cap Feast 28/06/2022

Joiners: No Joiners Today. Leavers: Raven Property Group has left the Main Market. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or req

Capital Markets Day feedback

Cambridge Cognition held a very impressive CMD yesterday which showcased the group's Science and Technology capabilities.

Hybridan Small Cap Feast 22/06/2022

Dish of the day Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Visum Technologies seeking admission to The AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June. LifeSafe Holdings, a fire safety technology business with innovative fire safety p

Contract Cancellation

Actual Experience has been notified by a Channel Partner that one of its customers, a leading energy supplier, will terminate its contract as of 18th August 2022. The contract was valued at £1m over 3 years, with £0.2m recognised in FY Sep21. ACT says that its continuing viability “will depend on securing more sales, the timing of which cannot be forecast with any certainty”. It continues to access the impact on the company and will make a further announcement when appropriate.

Hybridan Small Cap Feast 21/06/2022

Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Visum Technologies seeking admission to The AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June. LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends

Contract wins and trading update

Tribal has today announced multiple contract wins (both with new and existing customers) and as well, a positive interim update for FY22, highlighting that - driven by this sales momentum and stronger than expected implementations – revenue now expected to be “marginally ahead”. EBITDA meanwhile has been temporarily held back by a customer specific factor, though this is set to recover in H2 and hence management are guiding to unchanged EBITDA expectations for the full-year. We therefore upgrade

SHORE CAPITAL - OnTheMarket Plc (OTMP) - House Stock at 87p - Time to shine

Upgrading estimates following material contract win

Morning Note – 23 June 2022

Hybridan Small Cap Feast 27/06/22

Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or request an overdraft from their

Morning Note – 28 June 2022

Cenkos: Ingenta Plc -- Solid results, with increasing profitability

Ingenta, the provider of software technology and supporting services to content providers and publishers around the world, released FY21 results today with revenue and adjusted EBITDA at £10.1m and £1.5m respectively, in line with our forecasts. Ingenta enjoys a stable, high level of recurring revenue, with FY21 recurring revenues 88% of total (FY20: 86%). Profit margins have also improved, with gross margin of 46.5% (FY20: 43%) and operating margin of 7.9% (FY20: 4.9%). Cash generation was also