Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on TXT E-SOLUTIONS SPA. We currently have 9 research reports from 1 professional analysts.
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TXT E-SOLUTIONS SPA
TXT E-SOLUTIONS SPA
Strong cash flow supports dividend boost
13 Mar 17
FY16 results confirmed that the PACE acquisition has been successfully integrated and TXT Next continues to see good underlying growth. Despite weaker trading for TXT Retail in H116, TXT managed costs well to achieve profitability and cash generation ahead of our forecasts. The company continues to internationalise both businesses and we believe it could make further bolt-on acquisitions in the TXT Next business.
Steady growth in Q3
11 Nov 16
TXT reported a strong set of results for Q316: organic growth in both businesses was boosted by the contribution from April’s acquisition of Pace, resulting in 49% growth in EBITDA y-o-y. We have revised our forecasts to reflect a lower cost base in FY16 and slightly higher tax rates in both years; we raise FY16 EPS by 6.4% and trim FY17 EPS by 2.4%. The company is making good progress in its efforts to internationalise the business and we believe it may make further bolt-on acquisitions.
15 Aug 16
TXT’s H1 results confirm that TXT Retail has seen a recovery in licensing after a weak Q1 and TXT Next continues to experience strong organic growth. With the inclusion of the PACE acquisition from April, TXT Next is now more internationally focused and has a comprehensive solution suite to address the aerospace market. Key drivers of growth for the group are expansion into Asia Pacific in TXT Retail and growth of the aerospace business in TXT Next. Our forecasts are substantially unchanged.
Profits maintained despite licensing weakness
18 May 16
TXT reported a small year-on-year revenue decline for Q116. While TXT Next showed continued growth, TXT Perform saw delays in the signing of new licences, resulting in a decline in revenues. This was offset by reduced operating expenses. Management sees a more positive outlook in Q2 and maintains expectations for FY16. We leave our forecasts substantially unchanged.
TXT Next is next for international expansion
11 Mar 16
TXT reported strong FY15 revenue growth of 13%, with double-digit growth from both divisions, and normalised EPS ahead of our forecast. The planned acquisition of PACE adds higher-margin aerospace software capability and accelerates TXT Next’s quest to expand its addressable market outside of Italy. We have incorporated PACE into our estimates, forecasting normalised EPS growth of 16% in FY16 and 9% in FY17.
Aerospace software acquisition
03 Mar 16
TXT is expanding the scope of TXT Next’s aerospace business with the acquisition of a majority stake in aerospace software specialist PACE, for an initial cash consideration of €5.6m. The deal will enable TXT Next to offer specialist software in addition to its aerospace IT, consulting and R&D services and gives the division access to a wider international customer base. We will review our forecasts when TXT reports FY15 results on 8 March.
Recovery not reflected in the share price
25 Apr 17
Prelims for the year to January 2017 are in-line but more importantly they confirm the restructuring process is now complete, prove the commerciality of its cloud based platform and demonstrate a move towards higher margin services. PBT was £1.2m (against a loss last year), adjusted EBITDA grew 56% to £2m and cash from operations turned positive at £0.9m allowing a net cash position to be maintained. For this year, we expect PBT growth of 77% to £2.2m (previously £2.5m), implying a current PE rating of 15x. We reiterate our buy recommendation with a 2.2p price target as the turn around generated by Redstone has yet to be reflected in the share price.
N+1 Singer - Servelec Group - Calling the bottom
20 Apr 17
We are increasingly confident that Servelec’s travails are behind it and the business is returning to growth. Recent share price weakness looks unwarranted in this context and the valuation now looks compelling. Our forecasts are essentially unchanged, but we see medium term upside as the group’s markets improve. Servelec remains a key idea for 2017 and we reiterate our Buy recommendation and 325p Target Price.
Panmure Morning Note 25-04-2017
25 Apr 17
Blancco Technology, a leading provider of data erasure solutions and mobile device diagnostics, has issued a mixed Q3 trading update. On the positive side, revenue progression has been extremely strong, with a material acceleration in sales growth during the quarter: +48% CFX basis during 3Q17 vs +28% during 1H17. However, cash flow is weaker than expected and management has guided that year end net debt is expected to be £5.5m (previously we were looking for net debt of £3.6m). Due to the timing of cash flows management has identified the need for additional short term funding of £4m over the coming weeks.
19 Apr 17
Lombard Risk Management* (LRM): Beats demanding growth and profit forecasts (CORP) | Frontier Developments* (FDEV): Steaming ahead (CORP) | Tax Systems* (TAX): Right place, right time (CORP) | Acal (ACL): Stronger H2 and brighter outlook (BUY) | Fenner (FENR): Interim results signal upgrades (BUY) | Minds + Machines* (MMX): US and Europe domain sales (CORP)
N+1 Singer - Morning Song 24-04-2017
24 Apr 17
First Derivatives (FDP LN) FY slightly ahead as strong trading momentum continues | Goals Soccer Centres (GOAL LN) A potentially exciting corporate development | mporium Group (MPM LN) 2016 results: course set for exciting 2017 | Vectura Group (VEC LN) VR315 risk outweighs longer-term potential