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Tinexta’s interim results were strong due to a combination of underlying growth and contributions from M&A. The completion of the disposal of its lowest-growth division, Credit Information and Management (CIM), leaves Tinexta with a significantly improved financial position, and therefore well placed to take account of recent weakness in equity markets to undertake further M&A. The reiteration of underlying guidance for FY22, despite the disposal of lower-growth CIM, indicates a little more caut
Companies: Tinexta SpA
Tinexta’s proposal sale of its Credit Information & Management (CIM) division is significant from a financial and strategic perspective. With respect to the former, the remaining group should demonstrate higher aggregate pro forma revenue and profit growth and it will have significantly improved financial fire power to pursue further M&A in the higher-growth business units. Strategically, it removes a business that has low exposure to the thematic growth driver of a digitising economy, limited o
Tinexta reported a good start to the year with continued strong organic revenue growth in Q122. This was further boosted by first-time contributions from acquisitions completed through FY21 and into FY22, which were also helpful to the total margin. Management re-iterated its financial guidance for FY22 while recognising the greater macroeconomic and inflationary pressures than when the guidance was made earlier in the year. The recent share price weakness means the stock is trading at a substan
Tinexta delivered FY21 results that were in line with our expectations, while undertaking a higher-than-average level of M&A as it sought to develop further the services it provides to customers and grow its international presence. Management’s new three-year (FY22–24) business plan points to attractive growth for revenue (low double digit) and adjusted EBITDA (mid-double digit) from a combination of organic growth, further M&A and cost efficiencies. Our estimate for adjusted EBITDA in FY22 is b
Tinexta’s FY21 headline results for revenue and adjusted EBITDA were in line with our expectations. The new three-year business plan is based on continued organic growth due to leadership in its reference markets (which are mainly experiencing structural growth), further domestic and international M&A and improved operating and cost efficiencies. Management is guiding for a mid-double-digit CAGR for adjusted EBITDA to FY24. Ahead of the publication of full financial results, our provisional new
Tinexta has stated it has ‘no interest in the deal’ that was subject to press speculation on 4 January 2022, namely the claimed negotiations to combine with Prelios, a private-equity owned company. Tinexta’s recent M&A strategy has focused on investing in new industries, with an expected strong growth profile (such as the acquisitions of Cyber Security and CertEurope in France), or the formation of new ventures (with no new capital investment by Tinexta) with industry participants that managemen
Tinexta’s Q321 results indicated underlying improved momentum in FY21 when we account for the tough comparative provided by Q320 and the inherent seasonality of some of the businesses. Ahead of the financially important Q4 trading period, management is confident of meeting its FY21 guidance. Following the recent external investment in Tinexta’s Digital Trust (DT) business unit, we believe more M&A is likely in the near-term, which has historically been positive for growth prospects. Our underlyi
Tinexta has stated for some time that its subsidiary, InfoCert, has significant growth opportunities by expanding across Europe in the rapidly growing digital trust market. Bregal Milestone, a leading private equity investor in European technology, has agreed to buy a stake in InfoCert, which should provide Tinexta with access to a strong pipeline of acquisition candidates, specialism in post-merger integration, and expertise in new domestic markets where Tinexta has limited or no presence. Alon
Tinexta provides IT solutions, information and consulting services in niche markets, predominantly to corporate clients, with leading or strong market positions in most of its businesses. Structural growth drivers include the transition to a digital economy and enhanced online security; governments’ desires to stimulate innovation and growth; and the internationalisation of trade. Management’s strategy of diversifying its services and geographic expansion via M&A and subsequent organic growth ha
Tinexta provides IT solutions, information and consulting services in niche markets, predominantly to corporate clients. It has leading or strong market positions in the majority of its businesses, which have structural growth drivers. Management’s strategy of diversifying its services and geographic expansion via M&A and subsequent organic growth has generated improving financial metrics, while remaining shareholder friendly with respect to cash returns and a robust balance sheet. Our discounte
Tinexta’s new venture with a subsidiary of Intesa Sanpaolo (IS), a leading bank in Italy, will enable it to distribute its own services that help SMEs to fund, market and grow their businesses through a more significant network with existing strong relationships. We upgrade our FY22 PBT forecast by 2% and the rapid build in revenue and profitability of the new venture through FY25, post our explicit forecast period, leads to an increase in our DCF-based valuation to €36.4 per share.
Tinexta’s Q121 results highlighted strong growth in organic revenue, profitability and free cash flow generation in what is typically a small quarter from a financial perspective. The recently acquired Cyber Security businesses are performing in line with management’s expectations, which is reassuring. Our forecasts are unchanged as is our DCF-base valuation of €27, representing 14% upside from the current share price.
Tinexta’s FY20 results were broadly in line with management’s prior guidance and demonstrated margin leverage despite it being a more challenging year due to COVID-19, and a significant improvement in free cash flow generation and net debt. The acquisitions of the Cyber Security businesses have enhanced the group’s growth revenue and EBITDA growth profile, albeit diluting the group’s EBITDA margin. Our DCF-based approach suggests a valuation of €27 per share.
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Cambridge Cognition has announced strong interims which are consistent with the company's July trading update.
Companies: Cambridge Cognition Holdings Plc
Pelatro's interims show the company grew strongly during the period, beating DCe at the top and bottom line.
Companies: Pelatro Plc
LoopUp has assumed a book of conference service contracts from a US competitor for no initial outlay. This book will yield operating cash flow of c£5m on an annual basis. Together with the renegotiated banking facilities secured earlier in the year, the Group's enhanced cash flow and headroom in its facilities will position the company well for FY23E and we upgrade the stock to Buy.
Companies: LoopUp Group PLC
After reporting FY22 gross profit and adjusted EBITDA +2% ahead at the July trading update, Fonix has reported strong FY22 results, with underlying EFCF +7% ahead, net cash +8% ahead, and a proposed FY22 DPS +7% ahead at 6.5p. Through FY22, Fonix has continued to deliver against each of the five elements of its strategy, including launching into Ireland, where it has achieved a new customer win for the group. FY22 TPV growth of +11% drove gross profit growth of +17% to £13.2m, as management focu
Companies: Fonix Mobile PLC
Companies: FNX JOG PCIP
Brave Bison released its interim results for the period ending 30 June 2022 and is ahead of the strong trading update released in July. The business continues to perform well despite economic headwinds and is making strong progress in hitting the business plan objectives, which we discuss in further detail in the report. In total so far this year Brave Bison have won 12 new clients, including Paperchase, Rapyd and Viking Direct. We have released forecasts for FY23E which show a continuation of g
Companies: Brave Bison Group Plc
Companies: TruFin Plc
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What’s cooking in the IPO kitchen?**
Independent Living REIT plc, intends to float on the Premium Segment of the Main Market. The Company's investment objective is to address the shortage of high-quality supported housing, delivering capital growth and inflation-linked income returns for its investors whilst providing a fair deal for society through savings for the UK taxpayer, and improved outcomes for residents. Raising £150
Companies: W7L WAND SUN KWS KIBO LBG SDX
Ingenta, the provider of software technology and supporting services to content providers and publishers around the world, has released H1/22 interim results in line with the August trading update, with revenues slightly ahead of H1/21 at £5.3m (H1/21: £5.1m). Adjusted EBITDA was up strongly to £1.3m, up 67% versus H1/21 (H1/21: £0.7m) and we have modestly upgraded our revenue and EBITDA forecasts for FY22, to £10.6m and £1.9m respectively. Ingenta benefits from a high level of recurring revenue
Companies: Ingenta plc
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What’s cooking in the IPO kitchen?**
Streaks Gaming plc, a UK-based provider of conversational gaming products intends to join the Standard Segment of the Main Market this autumn. The flotation is expected to value Streaks at approximately £10.2m (pre-money) and will make it the first LSE-listed "pure-play" conversational gaming co
Companies: MEX RBBS BBSN JADE LTG PCIP
Update: Impressive contract momentum
Companies: Cordel Group PLC
Gresham has delivered H1 19% organic revenue growth with cash EBITDA margins rising to 8% from 6% and adj. FD EPS up 74% yoy as organic leverage and accretion from Electra kicks in. Clareti ARR has risen 18% organic with $ denominated revenues helping protect against £ weakness. H1 revenues of £23m leave a comfortable £19m to do in H2 and H1 adj. EBITDA of £4.5m is tracking at least in line with our FY22 forecast of £9.2m. Bigger picture, Gresham estimates that the marginal cash EBITDA margin on
Companies: Gresham Technologies plc
Singer Capital Markets
The strong organic cash flow of FYMar22 has continued into the first half of FY23. With the last of the earn-outs paid out in July and with a high recurring revenue profile (74%/sales) AdEPT is hiking its dividend. We now forecast 5.0p for FY23 from 3.0p, which is a yield of c. 4.5%. The increased pay-out remains consistent with the programme to deleverage the balance sheet. AdEPT still expects net debt/EBITDA to fall below 2x within 12 months and remains well within its covenants. Management ta
Companies: AdEPT Technology Group Plc
The Interims are in line with the positive 1H trading statement released in July and provide a useful update that last month’s acquisition of Comsof in Belgium is proceeding smoothly. We make no changes to the forecasts as upgraded in August with the fundraising and acquisition, and we reiterate our 165p TP set then. As previously flagged, IQG delivered an excellent performance for the half to 30 June, with strong revenue growth (notably in recurring revenue) allowing it to reach positive Adj. E
Companies: IQGeo Group PLC
This morning's results from PEN demonstrate the significant shift within the company as the software business moves strongly ahead (up 40% YoY) and hand in hand with this, visibility grows (65% recurring revenues reported today). PEN supplies software / integrated product support solutions to an extensive client list of OEM's and governments. It can boast a range of well-invested and sophisticated software products, and is selling these into a market which itself is growing rapidly as the produ
Companies: Pennant International Group plc