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Atea reported Q3 results slightly below our estimates, but with a DPS at NOK 5 and a new dividend policy. Revenues declined by 2% y-y FX-adjusted and we expect headwinds on hardware to persist, offsetting solid software growth. While Atea is trading at a discount to peers but in-line with its historical figures on EV/EBIT NTM, we need to see revenue improvements as well as cost efficiencies before we find it attractive. As such, we maintain our Hold rating.
Companies: Atea ASA
Arctic Securities
Q3 results -3% below on consensus revenues but 11% ahead on EBIT Software (+16% y-y) was strong – positive read across to Crayon We will make minor estimate changes, consensus EBITDA may increase
Dustin’s Q4 results (announced today) shows slight decline in LPC ..stating stable demand in public, but delayed for large corporates The results supports our estimates for Atea
Dustin’s Q4 results (just announced) shows slight decline in LPC ..stating stable demand in public, but delayed for large corporates The results supports our estimates for Atea
Atea’s Q2 results were already pre-announced and driven by solid results in Norway, while Sweden was broadly in-line and Denmark was slightly weaker than expected. Denmark remains the largest swing factor to estimates, but its EBIT improvement was solely due to cost reductions. Software growth was stronger than expected, and is a positive read-across to software peers such as Crayon. We reiterate our Hold rating and lift our TP to NOK 109 (105).
Q2 results were already preannounced in the recent profit upgrade Sweden, Norway and Baltics ahead; but Denmark weaker than estimated Software was especially strong (+21% y-y) – positive read-across to Crayon We expect to make minor estimate changes
Atea announced a profit upgrade yesterday, following solid results from Dustin from the public sector. Though this signals underlying improvements, some of this is likely due to temporary positive effects from Covid-19. The results is also a positive read-across to Nordic IT companies including Crayon. We maintain our Hold rating until we get more colour in the Q2 report on the underlying improvement – in such a scenario Atea’s discount to peers should narrow.
Dustin just reported its results; with LCP (large corporates) up 7% y-y Dustin’s LCP segment was driven by strong sales to the public sector …offsetting soft development in the SMB segment and for large corporates Supports our est. for Atea, expecting strong public sales(60% of revenues)
Atea reports Q2 results on July 15. We expect a temporary positive effect from higher hardware sales (remote working products) and extended payment terms in Q2 and part of Q3. Still, the underlying trends in hardware is soft with potential risk on delivery issues from certain hardware vendors. As such, we maintain our Hold rating as we view several other TMT shares as more attractive, including pure-play software companies with a higher cloud exposure.
Public sector agreement in Sweden today already reflected in estimates Expect near-term improvements in revenues in software and hardware Solid software growth in the Nordics (ref Crayon’s Nordic results) Temporary stronger hardware sales (remote working products) in Q2
Atea’s Q1 results were weaker than expected, due to soft results in Denmark and Sweden in especially hardware. While this has improved into Q2, with a stronger backlog y-y, we consider this improvement as temporary. As such, we maintain our Hold rating, and consider the discount to peers – with some seeing a multiple expansion recently - as fair until further data points on underlying improvements. We view several other TMT shares as more attractive.
Q1 results below estimates due to weaker results in Denmark and Sweden Slow start of Q4 for product revenues but improved through the quarter Revenues “accelerated into Q2”, cost cuts initiated in Denmark Expect to cut our estimates, depending on details on Q2 improvements
Atea reports Q1 results on April 22. While the initial start to Q1 was soft, we model improved revenues through the quarter from increased hardware sales since COVID-19. This, and positive FX effects on reported figures, should be enough to offset weakness in project related services. While recent comments from Dustin and Atea’s CEO could indicate a solid Q1 report, the estimate risk remains large – also considering the decision to withdraw its dividend payment.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Atea ASA. We currently have 0 research reports from 2 professional analysts.
Made Tech has won a material expansion (worth up to £19.5m/2yrs) with a long-standing customer, The Department for Levelling Up, Housing and Communities (“DLUHC”). Coming off the back of a soft H1 bookings performance, we expect this win to materially boost investor sentiment and reassure how notwithstanding a tough backdrop (given an impending general election) MTEC continues to outcompete legacy providers and in-so-doing, grow its share of wallet with large/strategic customers. Landing near FY
Companies: Made Tech Group PLC
Singer Capital Markets
Eleco’s FY23 results show robust organic recurring revenue growth of +17% with recurring revenue +22% to £20.7m, adj EBITDA +2% ahead of the January update, and a confident outlook with Q1 ARR already at £24.5m vs £22.6m at FY23. At this point, the excellent start to FY24 leads us to reiterate our FY24-26E revenue, adj EBITDA, EFCF, and DPS, and we include the April 2024 acquisition of Vertical Digital in our FY24-26E net cash, as we explain below. As Eleco builds upon the successful acquisition
Companies: Eleco Plc
Cavendish
Companies: Cerillion Plc
Liberum
Cerillion has announced a very solid update, as H1 sales and EBITDA are both up 10% y/y to £22.5m and £10.9m respectively, notwithstanding the exceptionally strong base period (sales and EBITDA +27% and +38% resp.). Results therefore point to continued strong customer demand, reflecting how Cerillion’s out-of-the-box product continues to resonate and gain adoption, particularly in a ‘budget conscious’ environment, by offering faster time to market, greater configurability and at a lower cost. Me
As reported in March, underlying EBITDA profitability improved to record levels despite FX headwinds. Further platform and proposition developments were completed, key steps on its digital roadmap, and it has already won 7 contracts YTD. Alongside planned growth in private membership, this will at least offset the loss of one contract. Forecasts are left unchanged today and, as member engagement throttles back up, FX headwinds ease, and proof points of digital efficiency emerge, markets should b
Companies: Ten Lifestyle Group PLC
itim is a disruptive SaaS-based platform that enables store-based retailers to implement a proven Omni-channel solution. This morning, the group has announced an additional professional services contract with its long-standing client, The Entertainer. Following a year-long trial, The Entertainer is opening in over 800 Tesco stores across the UK & Ireland, alongside a supplier agreement for Tesco stores across Central Europe. Under the contract, The Entertainer will extend its use of itim's Unify
Companies: Itim Group PLC
WHIreland
GE Healthcare has announced the launch of the Voluson Signature 20 and 18 ultrasound systems, with the related press release noting these systems ‘comprehensively integrate artificial intelligence’ to improve the ultrasound procedure for clinicians and the women being scanned. These ultrasound systems include SonoLyst, the AI which incorporates Intelligent Ultrasound’s ScanNav Assist and ScanNav AutoCapture AI software. The launch of additional Voluson systems including the SonoLyst suite of AI
Companies: Intelligent Ultrasound Group Plc
22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi
Companies: ARV CTL AFRN FEN HUW TENG BBSN EAAS VAL
Hybridan
Alphawave Semi has reduced guidance for FY23 and prospectively citing lower revenues from China, changes in expected revenue recognition from long-term contracts, and continuing investment in R&D. The share price has reacted negatively, giving up most of the gains since the trading statement at the end of January. Current consensus, which is a good match for pre-existing guidance, should be reduced, most likely following release of the FY23 results and full 1Q24 trading update due on 23 April. H
Companies: Alphawave IP Group PLC
Capital Access Group
Devolver Digital encouragingly delivered 2023 results slightly ahead of expectations and provided a steady medium-term outlook that leads us to reiterate our 2024 Adjusted EBITDA estimates. Longer term, the company is now planning to further develop its two major planned titles, Human Fall Flat 2 and System Era's next major new release. We now expect those major titles to be released in 2026 rather than 2025, meaning we lower our 2025 Adjusted EBITDA forecast to $10.6m from $17.6m but introduce
Companies: Devolver Digital, Inc.
Zeus Capital
Companies: FOG PEB KBT EMR TIME GETB JNEO
This report is intended to help UK small- and mid-cap investors gain a better understanding of software companies’ routes to market, and to highlight how one of the most important facets of the way in which they grow and deliver value is routinely ignored. We examine sales processes for six UK-listed companies and one that has recently been taken over, and consider why they have followed their respective paths.
Companies: Idox plc
Progressive Equity Research
Banquet Buffet*** Abingdon Health 9.25p £11.3m (ABDX.L) The lateral flow contract development and manufacturing organisation announces its unaudited interim results for the six months ended 31 December 2023. Revenue increased 117% to £2.4m (H1 2023: £1.1m). The Adjusted EBITDA loss decreased 47% to £1.2m (H1 2023: £2.2m). Furthermore, reduction in operating loss of 50% to £1.2m (H1 2023: £2.4m). The Board therefore expects that H2 2024 revenue will be significantly improved compared with H1 2024
Companies: CPX SLP FA/ FIPP ECR ETP ORCA
Companies: IGP RUA BOOM
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