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.
Frequency of research reports
Research reports on
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.
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.
A data-driven H1 raises expectations
05 Dec 16
The first reporting period under the new D4t4 Solutions brand saw the group (previously IS Solutions) deliver good growth, leaving it well on track to meet PBT forecasts in FY 2017, and we now increase FY 2018 forecasts. The business continues to flourish from its focus on data management and analytics, enabling its international blue-chip client base to gather and gain advantage from the mass of customer data available, utilising the leading-edge Celebrus solution. Industry analysts predict 12% CAGR for the BI & Analytics market through to 2020, and D4t4 is riding this wave of demand.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
N+1 Singer - Morning Song 05-12-2016
05 Dec 16
RTHM is acquiring a profitable Canadian listed mobile specialist for equivalent of US$42.5m consideration in shares (88.235m). This helps adds to two growth vectors RTHM is targeting; (i) adds unique exclusive audience (10m unique) and (ii) Exclusive demand Yahoo and Facebook. The business has 15 premium and owned and operated apps which provide users with rewards for activity. The business is expected to deliver c$9m of EBITDA in FY18 including $2m of cost synergies. This equates to just 4.7x EV/EBITDA. This marks what we see the first step in RTHM activity to scale the business and deliver on margin potential (see our initiation notes). Our initial estimates for EPS revisions are very significant - for FY18 are 2.3 cents (currently 0.6) and for FY19 4.3 (currently 2.5). There is a call at 830 for investors and we will revise post this.
Taking a prudent road
28 Nov 16
As flagged in September, H1 2017 profit is indeed below LY; adj. PBT of £0.5m compares with £1.5m in H1 2016 as Trakm8 invests heavily in new technology and acquisition integration. Management remains confident in another very strong H2 performance and in particular is focused on closing a couple of large high-margin software-related sales which would see the group meeting the original FY 2017 expectations of £5.9m adj. PBT. However, should these fall outside the March year-end, profits are only likely to be in line with last year’s £3.9m, albeit on a growing revenue base. Prudence dictates we assume a worst-case scenario in our forecasts so that surprise is only in the upside – if the deals close in the year, the company will meet those original revenue and profit expectations.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.