UK video games sector - Trough valuations?

The video games sector is unloved. Shares in the UK video games sector have fallen sharply and have significantly underperformed other small-cap sectors. Some stocks now appear to offer deep value, with mid-single digit ex-cash PEs that are well below pre-pandemic levels. In particular, Devolver, tinyBuild, and Frontier Developments multiples have fallen well below the sector average. We see upside to Frontier Developments’ earnings estimates and Devolver’s depressed multiples.

Frontier Developments (FDEV LN) - Superior strategy

Frontier is a leading developer and publisher of simulation, management, strategy and non-linear games. These genres allow Frontier to continuously offer additional content, attract loyal fanbases and face less competition. Our analysis confirms Frontier’s games have higher player retention after twelve months (28% vs. average of 14% for peers) and engagement (162% higher average playtime), and that its chosen genres generate over 50% more revenue per game whilst facing half the competition of a

LIBERUM: Frontier Developments* - Managing portfolio mix

Hybridan Small Cap Feast 09/01/2023

Dish of the day Joiners: Hydrogen Utopia International (HUI.L) (AQSE: HUI) has dual listed on the Standard Segment of the Main Market. The Company's Ordinary Shares, which were already trading on the Access Segment of the Aquis Growth Market, has also moved to trading on the AQSE Main Market today. (09/01/23) While we were away: Streaks Gaming plc (STK.L) has joined the Standard Segment of the Main Market. STK develops casual games and a conversational gaming platform with a focus on partnering

LIBERUM: Frontier Developments* - Disappointing holiday sales period

LIBERUM: Frontier Developments* - Strategically sensible, low-risk acquisition

LIBERUM: Frontier Developments* - Launch and nurture strategy continues to deliver

LIBERUM: Frontier Developments* - Lights out and away we go

LIBERUM: Frontier Developments* - Gamescom sheds light on new Foundry titles

Frontier Developments - Board Reshuffle, Positive signs ahead

Board Reshuffle, Positive signs ahead

LIBERUM: Frontier Developments* - Looking good in qualifying

Hybridan Small Cap Feast 14/06/2022

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen? LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends to join AIM. LifeSafe has developed what the Directors believe to be market disrupting, eco-friendly fire safety protection products to both protect (via fire extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires. At the centre of the Group's product range is the FER1000 e

LIBERUM: Frontier Developments* - Positive FY22 trading update

Frontier Developments - H1'22 Interim Results: Caution Ahead!

H1'22 Interim Results: Caution Ahead!

Initial Equity Trading Comments - 15 May 2023

Morning Note – 11 May 2023

A reassuring trading update for investors

The trading update was well-received by the market, something which was evident in a notable increase of approximately 0.90% in the stock price during midday trading. The confirmed outlook provided reassurance in light of the disappointing performance in the US. However, we expect the prolonged absence of share buybacks to exert downward pressure on the share price in the near future.

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

Successful refinancing

Portmeirion+ (PMP, House Stock, 418p) - Appointment of Non-executive Director

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

Cenkos: Seeing Machines Ltd -- Strong aftermarket KPIs

We believe Seeing Machines quarterly Key Performance Indicators for Q3/23E show the company looks to be on track to meet our overall FY23E expectations. Whilst the vehicles produced with Seeing Machines DMS technology for Q4/23E needs to step up to meet our latest FY23E forecast, we believe the overall OEM division is performing strongly. Also, the Aftermarket division looks to be on track to exceed our monitored connection forecast and, with product availability continuing to increase, we exp

N Brown Group+ (BWNG, House Stock, 27.5p) - Focused on strategy, financials in-line

Gooch & Housego - Interim results, recovery and strategic review

Results show a strong pick-up in revenue reflecting growth in all markets as well as a progressive pick-up in operational capacity. The order book remains strong although the normalisation of customer ordering patterns has lessened order intake recently; the group has strong enough H2 order coverage to reiterate full year expectations. The CEO’s strategic review aims to return the group to mid-teens margins and we see significant profit and cash gains from a sharper focus on operational delivery

Morning Note – 7 June 2023

N Brown Group+ (BWNG, House Stock at 25p) - Confirmation of new Chief Financial Director appointment

Shoe Zone plc (SHOE LN) - Solid H1, full year on track

Shoe Zone has announced H1 FY23 results, delivering solid revenue growth across stores and online despite the challenging consumer backdrop, with H1 adj. PBT ahead of management expectations.

Gooch & Housego (GHH LN) - Improvement

Recovery post-COVID had been slow but H1 results show that Gooch is back-on-track with operations normalising. Now margins and returns need to improve. There are no changes to our revenue and profit estimates, but our valuation is lifted slightly to 800p from 750p with a predicted unwinding of high inventory levels in the coming quarters.

PROGRESSIVE: IG Design Group: Successful refinancing of lending facilities – with lower quantum and margins

IG Design has announced a successful and favourable outcome to the refinancing of its lending facilities. The new arrangement replaces the previous revolving credit facility (RCF) agreement from 2019, which was subsequently renegotiated in 2022. The new three-year facility is for $125m through an Asset Backed Lending (ABL) structure. This flexes in line with the group’s US receivables and provides ample headroom to finance the key working capital needs over the duration of the facility. In a wor