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.

Alphawave Semi: FY23 trading update, amended forward guidance

Alphawave Semi has reduced guidance for FY23 and prospectively citing lower revenues from China, changes in expected revenue recognition from long-term contracts, and continuing investment in R&D. The share price has reacted negatively, giving up most of the gains since the trading statement at the end of January. Current consensus, which is a good match for pre-existing guidance, should be reduced, most likely following release of the FY23 results and full 1Q24 trading update due on 23 April. H

Zeus Top Picks for 2024 - 2023 review and outlook for 2024

On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div

It’s not what you sell, it’s the way that you sell it

This report is intended to help UK small- and mid-cap investors gain a better understanding of software companies’ routes to market, and to highlight how one of the most important facets of the way in which they grow and deliver value is routinely ignored.  We examine sales processes for six UK-listed companies and one that has recently been taken over, and consider why they have followed their respective paths.

Synectics + (SNX, House Stock at 185p) - Strong FY23A profit growth to continue

Maintel - Strong FY23 year-end TU continues trend of over-delivery

Maintel has reported a trading update for the year ending December 2023, indicating revenue in of at least £101m and adj EBITDA of “in excess of £9m”, compared with respective forecasts of £98m and £8.6m. Net debt of £18.1m also outperforms our expected year-end net debt of £18.6m. The group is continuing the trend established with the reintroduction of forecasts in April 2023, where growing confidence in delivery led to upgraded forecasts in both August and September, and still achieving outper

Eleco - FY23E EBITDA +3% ahead, FY24-26E EBITDA & EFCF reiterated

Eleco’s FY23 trading update highlights record recurring revenue growth of +22% to £20.7m, strong profitability that leads us to expect FY23E adjusted EBITDA +3% ahead of our previous forecast, and a confident outlook that leads us to reiterate our FY24-26E EBITDA and EFCF. Across the group, excellent execution of the SaaS transition has driven recurring revenue to 74% of group revenue from 64% in FY22, and ARR is +24% yoy to £22.6m (£19.7m at H1), including c£2m of ARR from the successful acquis

Morning Note – 4 April 2024

Auction Technology Group - H1/24 Trading update

ATG’s H1/24 trading statement indicates revenue for the six-month period to 31 March 2024 was $86m, a 6% increase on H1/23 (1% organic growth), helped by the addition of the EstateSales.Net (ESN) marketplace last year, which performed well in the period. Total marketplace revenue increased 2% (organic), driven by growth in value-added services (VAS) and event fees, offsetting a decline in commission revenue (mainly through lower asset prices).

Intelligent Ultrasound Group - GE Healthcare launches new Voluson Signature with

GE Healthcare has announced the launch of the Voluson Signature 20 and 18 ultrasound systems, with the related press release noting these systems ‘comprehensively integrate artificial intelligence’ to improve the ultrasound procedure for clinicians and the women being scanned. These ultrasound systems include SonoLyst, the AI which incorporates Intelligent Ultrasound’s ScanNav Assist and ScanNav AutoCapture AI software. The launch of additional Voluson systems including the SonoLyst suite of AI