Hybridan Small Cap Feast - 12 Sep 23

12th September 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 ob

Morning Note – 12 September 2023

Smart Metering Systems - Solid H1/23 – another forecast upgrade

Smart Metering Systems (SMS) released strong H1/23 interim for the period to 30 June 2023 with ILARR up 18.2% to £110.0m and revenue up 26.5% to £79.3m. We have upgraded FY23E and FY24E revenue and adjusted EBITDA forecasts following higher ILARR indexation, increased meter transactional activity, and higher average rental from single-fuel I&C smart meter installations. SMS’s high proportion of index-linked revenues provide a natural hedge against a higher interest rate environment whilst signif

Cenkos: Smart Metering Systems Plc -- H1/23 underpins deep discount to valuation

Smart Metering Systems (SMS) H1/23 trading update confirms FY23E underlying EBITDA and underlying PBT are expected to be in line with expectations. Automatic indexation on meter and data asset revenues provides robust protection against short-term interest rate rises, increasing ILARR and future long-term cashflow. SMS shares are trading on 14.4x FY23E EV/EBITDA, with a 4-year underlying EBITDA CAGR of 15.7% and at a significant discount to our long-term 1,497p DCF valuation. Taking just the H1/

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

Cenkos: Smart Metering Systems Plc -- Strong results - FY23E & FY24E upgrades

Smart Metering Systems (SMS) has announced strong FY22 results in-line with January 2023 upgraded forecasts. The smart meter installation run-rate accelerated during FY22, with 480,000 meters installed, ahead of expectations. With the installation run-rate reaching 45,000 meters per month during H2/22, SMS is on track to install an expected 600,000 meters in FY23E. The battery storage portfolio increased to 760MW by FY22 and has grown further to 860MW as of 13 March 2023. The first 140MW of batt

Cenkos: Smart Metering Systems Plc -- FY22 trading update –another upgrade

Smart Metering Systems (SMS) has announced a FY22 trading update indicating a strong operating and financial performance during FY22, with underlying EBITDA expected to be marginally ahead of expectations and adjusted PBT materially ahead of expectations. The smart meter rollout programme continued to accelerate, with H2/22 seeing an average of 45,000 meters per month being installed. The battery storage portfolio increased to 760MW, with 140MW now live and trading significantly ahead of initial

Cenkos: Smart Metering Systems Plc -- Strong H1/22 – FY23E forecast upgrade

Smart Metering Systems (SMS) has announced strong interim results, underlining the resilience of and visibility within the business model. The smart meter rollout programme is accelerating, with over 40,000 meter per month being installed and c70% of SMS SMETS1 portfolio meters now enrolled on the DCC platform. The battery storage portfolio has grown to 760MW, with the first 50MW project trading ahead of initial expectations. SMS is especially well placed to absorb inflationary pressure, with H1

Cenkos: Tech Download for the Week -- LBG Media, DotDigital, Solid State, XL Media, Smart Metering Systems, Arqit Quantum, Brave Bison, Clean Power Hydrogen

Enclosed is our weekly download of technology news and updates from technology-focussed UK companies.

Cenkos: Smart Metering Systems Plc -- Robust trading ahead of forecasts

SMS has announced a solid trading update, with underlying EBITDA and PBT marginally ahead of forecasts, mainly driven by a “well ahead of Board expectations” performance of the Burwell grid-scale battery project and the annual meter rental RPI indexation on 1 April 2022 (4.3%). The battery pipeline has also increased to 760MW. ILARR has increased 8.4% over H1/22 to £93.1m, with the smart meter portfolio increased to 1.9m meters. The current meter installation pipeline is 2.42m including a new 0.

Hybridan Small Cap Feast 21/06/2022

Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Visum Technologies seeking admission to 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). Due 30 June. LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends

Cenkos: Smart Metering Systems Plc -- Accelerating CaRe asset strategy

SMS has announced two strategically important investments this morning, in line with the strategy presented during the CMD in June 2021 (DOWNLOAD). The first investment is to acquire an initial 25% holding in Clenergy EV, a software business with a Charge Point Operator platform and the second to acquire 100% of n3rgy Data, a data software business providing direct access to smart meter consumption data from the DCC. Total consideration for these investments is an initial £3.4m. Clenergy enables

Cenkos: Smart Metering Systems Plc - Continued strong momentum

SMS released an AGM update this morning confirming that it is currently trading in line with the Board's expectations, with solid growth in index linked annualised recurring revenues (ILARR) to £91.4m, continued strengthening in the meter installation run-rate (with further improvement expected throughout the year), strong performance of the first 50MW of batteries and further expansion of the grid-scale battery pipeline to 710MW. The balance sheet remains strong with £63.3m cash and £420m undra

TClarke - £1.1bn order book and delivery protection measures

TClarke has confirmed it is on track to deliver its three-year growth-plan target of £500m of revenues in 2023E (up from £426m in 2022). It detailed a 99% increase in the order book to £1.1bn alongside a further £1bn in opportunities. Reflecting the current challenges in the construction sector, management has made a number of strategic decisions to preserve the business’s strong market and financial position. These include changing some supply-chain partners mid-contract to protect project comp

LIBERUM: Luceco: LED lighting the way ahead

discoverIE Group - Strong growth in margins & design wins in H124

discoverIE’s trading update confirmed organic revenue growth and operating margin expansion in H124. The company expects to deliver FY24 underlying earnings in line with its recently upgraded expectations; we maintain our operating profit and EPS forecasts. As expected, the order book continues to normalise but still provides good visibility for H224, and strong design win activity provides support for growth in the medium term.

Hybridan Small Cap Feast - 01/12/23

1st December 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 obje

Brickability Group - A diversified and resilient model

Today’s interims are in line with the recent trading update (11th October) and as such we make no changes to forecasts. Revenue of £324.8m represents a LFL decline of 14%, with EBITDA of £25.6m (H123: £25.5m). This is a strong performance, against what is a challenging market backdrop and underlines the benefits of its diversified operating model and focused strategy. We therefore continue to be surprised at the weakness of the share price, especially in the context of a broader peer group. Putt

Morning Note – 28 November 2023

LIBERUM: Restocking Indicator still says BUY: Equities lift too

Strong H1 results raise full year outlook

The H1 outcome was as indicated in the recent (18 October) Trading Update. Group guidance for the full year is now raised: from revenue of £195m - 205m to £210m - £220m (ED estimate was £204.2m); (adj.) EBITDA from £28m - £30m to £32m - £35m (ED estimate was £29.0m). From incremental EBITDA of c.£4.5m, c.£1.5m arises from core operations and c.£3.5m from the Elf distribution agreement, which supplies retailers including Tesco, Morrisons, One Stop and WHSmith. A series of initiatives – branding

PROGRESSIVE: Oxford Metrics: Technology, strategy and EPS enhancing

Oxford Metrics (OM) today announced the acquisition of Industrial Vision Systems Ltd (IVS) for £8.1m, funded from cash and 1m new shares. IVS operates in industrial applications of smart sensing, with machine learning technology for quality control in the manufacturing environment. The deal is immediately earnings enhancing and we are raising our forecasts for FY24. This is an exciting first M&A application of the funds from the Yotta disposal. The deal appears technologically and strategically

PROGRESSIVE: SDI Group: Acquisition of Peak Sensors

SDI Group has announced the acquisition of Peak Sensors, a UK manufacturer of temperature sensors, for an estimated £2.4m (£2.3m less cash). The initial cash consideration is £1.58m, with a further c.£0.82m payment due shortly after completion. The deal will be funded from SDI’s revolving credit facility. As at 30 September, SDI had c.£1.78m cash, £15.1m bank debt and £9.9m undrawn bank facility excluding the accordion, providing considerable financial flexibility for the group. The acquisition

IO#9 within target production range

Somero Enterprises - Interim results – Board confident of achieving FY23 forecas

Interims reflect a very strong comparative in H1 2022, with an overall decline driven by lower volumes in North America (-24%), partly offset by significant growth booked in Europe (+46%) and Australia (+33%). Some impediments including limited concrete availability, as previously flagged, tighter lending standards, effect of higher interest rates, and permitting delays held back conversion of some projects into sales. Management indicates no change to underlying market conditions, with a steady

Morning Note – 1 November 2023

H1 23: RR may have finally found a bottom

After years of slippage, Rolls Royce may have finally found the bottom. H1 23 was marked by a 28% organic increase in revenues, a 531bp increase in operating margin and a sharp increase in cash generation, thanks to a higher activity level and the initial benefits of the multi-year transformation plan. Following these strong results, the company has upgraded its FY23 outlook.

PROGRESSIVE: SDI Group: Strong FY23

SDI has announced FY23 results in line with the guidance given in its May trading update. Strong organic growth and outperforming acquisitions delivered revenue growth of 36% to £67.6m (FY22: £49.7m), with adjusted PBT at £11.8m (FY22: £11.8m). Despite increased global economic uncertainty, SDI’s niche businesses, operating in diverse end markets, delivered organic growth of 6.4% (constant currency). This excludes the ‘one-off’ Atik Cameras PCR contract, which was c.£8.5m in FY23 and c.£10.9m in