Tinexta - Rebalancing toward higher growth

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 - Encouraging start to FY22

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 - Incorporating management’s FY22–24 guidance

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 - Guiding to mid double-digit profit growth to FY24

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 - ‘No interest’ in press-speculated deal

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 - Management confident of meeting FY21 guidance

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 - Boosting international expansion

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 - Strong growth ambitions

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 - Growth in highly innovative areas

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 - Expanding distribution of services

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 - A reassuring start to FY21

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 - Incorporating Cyber Security

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.

Tinexta - Strong recovery fuelling upgrades

Tinexta’s Q320 results demonstrate that its business units are recovering post-COVID lockdowns better than management initially expected, while developing new revenue opportunities. Management’s increased FY20 guidance appears conservative, implying a y-o-y decline in Q420 EBITDA of 7%, reflecting its typical caution and the tough comparative. The announced acquisitions for Warrant Hub are consistent with the strategy of expanding outside Italy. The dissolution of the joint venture with LuxTrust

Cenkos: Healthcare Sector - Ward Round

Weekly round-up of AIM-listed healthcare news. Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics

Capital Markets Day feedback

Cambridge Cognition held a very impressive CMD yesterday which showcased the group's Science and Technology capabilities.

Hybridan Small Cap Feast 28/06/2022

Joiners: No Joiners Today. Leavers: Raven Property Group has left the Main Market. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or req

Strong H1 underpins high teens FY22 organic growth

Gresham reports that positive trading has continued in H1 with group revenues up 19% organic to £23.1m. Clareti ARR grew an impressive 17% organic to £25.9 and continues to be the engine of growth. There was also strong trading from non-Clareti revenues which has the potential to continue in H2 depending on some material Contracting revenues renewals. As such Gresham expects FY22 results to be at least in line with expectations. We make no changes to forecasts at this time, though further positi

Contract wins and trading update

Tribal has today announced multiple contract wins (both with new and existing customers) and as well, a positive interim update for FY22, highlighting that - driven by this sales momentum and stronger than expected implementations – revenue now expected to be “marginally ahead”. EBITDA meanwhile has been temporarily held back by a customer specific factor, though this is set to recover in H2 and hence management are guiding to unchanged EBITDA expectations for the full-year. We therefore upgrade

Morning Note – 6 July 2022

Hybridan Small Cap Feast 27/06/22

Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or request an overdraft from their

Hybridan Small Cap Feast 30/06/2022

Dish of the day Joiners: Visum Technologies has joined the AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Compan

Morning Note – 28 June 2022

Morning Note – 29 June 2022

Hybridan Small Cap Feast 04/07/2022

Joiners: Re-admission of 888 Holdings to the Main Market following the reverse takeover of William Hill. Leavers: Umuthi Healthcare Solutions has left the Main Market. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide custo

Morning Note – 4 July 2022

Immotion Group (IMMO) – AGM update; YTD revenue at the core LBE estate +127% after the first 5-months

On the back of the update, we leave our 3-year forecasts unchanged – FY 2022E Revenue £9.5m, EBITDA £1.5m, Net cash £0.7m, FY 2023E Revenue £11.5m, EBITDA £2.4m, Net cash £1.3m, FY 2024E Revenue £13.5m, EBITDA £3.2m, Net Cash £2.7m. With the decision to deploy the group's resources entirely to meet the demand in the core LBE business, which provides a 12-18-month payback, the investment case for Immotion is clear; 1) The roll out of headsets at new partner sites – we are forecasting 120 per annu

SHORE CAPITAL - Glantus Holdings+ (GLAN) - House Stock at 52p

Profitable cybersec growth story, undervalued