Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on DATALEX PLC. We currently have 12 research reports from 2 professional analysts.
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Good trading update with accelerated scaling of the business
21 Nov 16
Today’s trading update (for the 4 month period July 1-October 31 2016) is a continuation of the established pattern of strong trends and positive developments on multiple levels. Management remains confident about DLE’s prospects and progress, in particular expressing its confidence that “we remain on course to meet our FY16 guidance of 15-20% growth in Adjusted EBITDA”. Most notably, the platform (i.e. the recurring and predictable) revenue stream — DLE’s key value driver — continues its established pattern of double-digit growth, with a 12% Y-o-Y increase, a sequential acceleration on the +11% posted in H1FY16 (January-June 2016). The encouraging positive momentum on platform revenue has now been further boosted by the very recent “go-live” of a significant customer, Swiss International Air Lines, which will drive further growth in platform revenue into 2017. We retain our BUY.
Another half of strong operational and financial performance
30 Aug 16
H1FY16 results’ adjusted EBITDA of $4.6m, in-line with our expectations. Sector-leading double digit growth delivered again on all key financial metrics (Platform transaction revenues +11%; Adj EBITDA +22%, PAT +386%; CFO +57%; Cash +11%), coupled with a simultaneous ramp up in investment in product development ($4.2m vs $2.7m) and people (viz. >doubling the FY15 y/e workforce of 190 by FY17 y/e) to scale for DLE’s growing market opportunity. The expansion of the relationship with the Lufthansa Group, whilst lacking details for now, could well be the big customer contract deal catalyst needed to push the shares to the next level on valuation, given the likely momentum boost to the medium-term profit trajectory (Adj EBITDA growth of 20-25%). The resource mobilisation for such new customer engagements, combined with other accelerated scaling investments, means that guidance on FY16 Adj EBITDA growth is lowered to 15-20% (from 20-25%), but with the payoff being greater management confidence in DLE achieving the upper end of the guided mediumterm 20-25% Adj EBITDA growth trajectory in the FY17-19 period. We raise our TP to €3.95 (from €3.70), confident that our BUY investment thesis remains firmly intact and continues to evolve.
Airlines selling digitally and direct will continue to drive premium growth
09 Jun 16
We met with Datalex in Dublin last week. With its market-leading digital commerce platform, global customer base and transaction-linked commercial model Datalex is capitalising on two major trends within the airline industry: digital transformation and direct selling. This company ticks all of our boxes in terms of attributes, while the current valuation is not onerous given a high level of revenue visibility, strong operational gearing and conservative consensus forecasts.
09 Jun 16
Datalex (DLE ID) Airlines selling digitally and direct will continue to drive premium growth | Earthport (EPO LN) New service launched with MoneyGram | eg solutions (EGS LN) H1 lower than expected but no change to full year guidance | PuriCore (PURI LN) Successful pre-IND meeting | ScS Group (SCS LN) More upgrades as trading strengthens against weak comps | Small-cap quantitative research – includes a video summary Re-run of the value screen and 10 focus stocks
FY16’s positive start continues. Well positioned to deliver FY16 guidance
24 May 16
Today’s IMS (for the 4 month period to the end of April 2016) is a continuation of the established pattern of strong trends and positive developments on multiple levels. Adjusted 20-25% EBITDA growth is reaffirmed for FY16. To reflect the broad-based momentum (both DLE’s growing market opportunity and the company’s internal executional capabilities to capture and benefit from such strong structural industry trends), we raise our Target Price to €3.70 (from €3.25), thereby maintaining our Buy.
Panmure Morning note 23-03-2016
23 Mar 16
FY2015 was another strong year demonstrating the power of DLE’s business and financial model. Double digit growth delivered on all key financial metrics (Platform transaction revenues +17%; PAT +55%; CF generation before investment/financing activities +36%; Dividend +33%; Cash +19%) whilst simultaneous continued significant investment in technology/product innovation and scaling the business for DLE’s growing market opportunity. The key single incremental positive for us is DLE increasing the horizon of its profit growth rate. DLE now expresses its confidence that it can continue its current (i.e. FY15; +23%) adjusted EBITDA growth trajectory of 20%-25% over the “medium-term” (i.e. the next five years), vs. the previous horizon/ambition articulated in FY14 as “double-digit adjusted EBITDA growth through FY17”. These results remind us of one of key attractions of the DLE investment case, namely the high level of visibility, consistency and momentum, combined with sector-leading 20%-25% EBITDA growth rates (vs. the mid-single to high-single-digit EBITDA growth profile of its peers). We see the strong multi-year share price outperformance continuing. We reiterate our Buy to reflect DLE’s continued considerable momentum on multiple levels.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
13 Feb 17
Surface Transforms* (SCE): H1 results confirm operational progress (CORP) | Premaitha Health* (NIPT): European diagnostics partnership (CORP) | Lok'nStore* (LOK): Filling existing stores, developing new ones (CORP) | Victoria* (VCP): Entry into the European flooring market (CORP) | eg solutions* (EGS): Exceptional H2 performance (CORP)
Share & share alike
14 Feb 17
The rally in the last fortnight, highlighted in the table, reflects a continued flow of positive updates and economic news. The FTSE 250, Small cap and Fledgling indices have reached record highs. We are in the lull ahead of results for those companies with a December year end, a welter of economic data regarding the UK economy, the State of the Union address in the US on 28 February and the UK Budget on Wednesday 8 March. We will learn at that stage the latest forecasts from the Office of Budget Responsibility. As highlighted previously, the reaction to corporate updates will continue to set the tone.