SLI Systems - Cost savings underpin PBT turnaround

SLI’s results reflect the business’s transitional status. Substantial savings were made to sales and marketing expenditure, which underpinned the company’s first year of profitability. We continue to forecast margin compression in the near term as the business begins its transition to an indirect sales model. Successful implementation of this shift remains the critical determinant of the business’s prospects.

- More routes to market

A recovery in growth remains stubbornly elusive, with falling revenues and rising losses in line with our forecasts. SLI Systems is treading water from a momentum perspective. However, operational metrics provide signs of encouragement, with ARR increasing slightly, and a substantial uptick in client retention rates. As of H218, SLI will employ a more indirect sales strategy, which could improve uptake of the solutions available. Double-digit revenue growth and 10% margins would imply 20% upside

Pathway to profitability

SLI Systems had a strong half in the six months to 31 December 2015, with annualised recurring revenue growing 23% (10% on a constant currency basis) to a record NZ$35.6m. Significantly, gross margin increased to 76.4% from 74.7% year-on-year (y-o-y), while the retention rate by value remained steady at 87%. SLI has mapped out a pathway to profitability, noting that it had been cash flow neutral in the first half and that its NZ$5.6m cash on hand was sufficient to bring the company to cash flow

New CRO, H116 revenues expected to rise 29%

SLI Systems has announced that it expects to report H116 revenues of NZ$17.3m, up 29% year-on-year, in line with our forecasts. The company also announced it has appointed Martin Onofrio as chief revenue officer (CRO), with immediate effect. Mr Onofrio brings 25 years’ sales and executive leadership experience. He was most recently chief revenue officer at Silicon Valley-based Attensity Corporation. His recruitment closely follows Silicon Valley-based CEO Chris Brennan's appointment last month.

SaaS e-commerce exposure at industrials pricing

SLI Systems is a fast-growing SaaS company operating in the hot field of e-commerce, but seemingly priced at EV/Sales multiples closer to those of mature industrials. It is currently in the investment phase and therefore pre-profit, but its revenue base is sustainable, high-margin and recurring, and should therefore generate substantial returns provided it can reach profitable scale. The company has recruited a new CEO, Silicon Valley executive Chris Brennan, who brings a consistent track record

Initial Equity Trading Comments - 15 May 2023

Morning Note – 11 May 2023

Morning Note – 5 June 2023

Hybridan Small Cap Feast - 06 Jun 23

6th June 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Morning Note – 1 June 2023

Improving visibility

Hybridan Small Cap Feast - 07 Jun 23

7th June 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Altitude Group (ALT LN) - Trading update highlights strong start to FY24

Altitude has released a trading statement this morning confirming FY23 results will be at least in line with Zeus’ recently upgraded forecasts and trading in the first few weeks of FY24 has been strong. The upgrades put through at the time of the last update (28th March) were predicated on new contract wins in the Adjacent Markets Programmes (AMPs) leading to an increase in EBITDA expectations of 11.9% in FY24 and 24.2% in FY25. The contracts underpin the strong start to the new financial year b

Cenkos: Shearwater Group Plc -- Trading Update

Shearwater Group has released a trading update following the profits downgrade which was issued on 31 March 2023. The company reiterates FY23E guidance, and we maintain our FY23E forecasts for revenue and EBITDA. Today's statement confirms the company is experiencing improved trading in the current financial year. We have reviewed our assumptions and we introduce FY24E and FY25E forecasts, reflecting a recovery in revenue generation and profits. We maintain a BUY rating and 105p fair value.

Auto Trader (AUTO LN) - Strong growth from core business

Auto Trader’s FY23 results last week showed continued strong performance from its core marketplace business despite constrained supply in new and used vehicles.

Cenkos: LoopUp Group Plc -- Upgraded FY23E forecast

LoopUp, the premium hybrid communications cloud platform provider has released unaudited preliminary results to December 2022. Revenues were £16.5m (FY21A:£19.5m), a YoY decline of 15.4% driven by the structural decline in the meetings business coupled with a decline in the third-party resale services channel. Adjusted EBITDA of £(0.9)m was behind the prior year (FY21A: £1.2m), but ahead of our £(1.1)m forecast. We update our FY23E forecasts to reflect an uplift in the Meetings business, and rel

Morning Note – 8 June 2023

Staying the course

Hybridan Small Cap Feast - 18 Apr 23

18 April 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

GENinCode - FY 2022 in line; US regulatory filing and product launches in FY 2023

GENinCode's (GENI's) portfolio of clinical genomic tests provides information to enhance standard risk assessment and diagnosis of cardiovascular disease (CVD), which is the highest cause of death globally (over 18 million deaths per annum). FY 2022 financials were in line European/UK revenues of £1.4m, EBITDA loss £5.6m reflecting the scale up of commercial plan, net cash at £9.7m ahead of our £8.4m estimate. The focus is delivering key regulatory and commercial milestones, notably 510k submiss