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.
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.
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.
Making Mobiles Better
17 Jan 17
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
Panmure Morning Note 18-01-2017
18 Jan 17
Blancco technology, a leading provider of data erasure solutions and mobile device diagnostics, has announced that its underlying profits are ahead of expectations. Organic sales growth remains strong, the group continues to win larger ticket orders and the mobile diagnostics is performing ahead of plan. Consequently, we are raising our FY17 PBT forecast from £8.0m to £8.3m.
33% upgrade to January 2017 PBT
09 Jan 17
Redstone has released a trading update stating it ‘expects to report EBITDA at the upper end of market expectations’. This implies EBITDA of £1.8m which is above our current estimate of £1.5m. Accordingly, we are upgrading our PBT forecast for the year ending January 2017 by 33% to £1.2m from £0.9m. We reiterate our buy recommendation with a 2.2p price target implying 69% upside.
N+1 Singer - Small-cap quantitative research - Momentum screen refresh + 10 focus stocks
12 Jan 17
We have refreshed our momentum style screen for the first time since inception on 26 July 2016. As before, the screen selects the 25 stocks exhibiting the most extreme momentum characteristics, according to our measurement method. From these we have selected 10 to focus on. Since inception the screen has underperformed both the main small-cap and micro-cap indices against a background of generally rising momentum. We have noted a subset of the basket, where decelerating momentum at the time of measurement appears correlated with significant share price falls since selection. We shall monitor this factor with the new screen, albeit there are only two such stocks showing this pattern, namely Lamprell (not rated) and Gear4music (not rated).
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher