Cenkos: Personal Group Holdings Plc - Improved recipe for future growth
Personal Group's H1/19A results show robust trading so far this year, with encouraging signs in SaaS and Let's Connect. However, new sales of the group's core insurance products are beginning to soften, while SEB's launch was later than expected. FY19E adj EBITDA is thus likely to be lower than forecast, but rpt PBT, EPS and DPS are expected to be in-line.
17 Sep 19
Small Cap Feast
SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019. Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019
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02 May 19
Cenkos: Personal Group Holdings Plc - A more connected offering in FY19E
PGH's in-line FY18A results show positive revenue progress across the business, despite the group encountering several headwinds over H2/18A. In FY19E, PGH will take on a more consultancy-led offer following February's acquisition of Innecto. This pairs Innecto's more senior HR networks with PGH's market leading Hapi product, with significant cross-selling potential. This immediately earnings enhancing acquisition is expected to drive EPS and DPS growth this year, per our FY19E forecast.
26 Mar 19
Small Cap Feast
Network International Holdings—Pleading enabler of digital commerce across the Middle East and Africa region, operating across over 50 highly underpenetrated payment markets that contain a total population of 1.5 bn. 2018 rev $298m, underlying EBITDA $152m. Due April. No new funds to be raised. Secondary sell down. Targeting 25% of at least 25%. Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m.
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26 Mar 19
Cenkos: Personal Group Holdings Plc - Acquisition and new CEO
PGH has today announced the conditional acquisition of Innecto, an independent pay and reward consultancy, for a £3m cash consideration. The deal sees co-founder Deborah Rees-Frost (a PGH NED since 2015) take over the role of PGH CEO from the departing Mark Scanlon, while making a significant subscription for new shares. Strategically, the deal sees PGH broaden its employee services offer to now include reward consultancy, while crucially providing opportunities to cross-sell Hapi into Innecto's client base of high growth, more tech-focused names.
06 Feb 19
Small Cap Feast
United Oil & Gas (UOG.L) an oil and gas exploration and development company brought to the Official List (Standard Segment) in July 2017 by way of a reverse takeover of Senterra Energy plc. No capital to be raised, expected market cap of £17m and expected 28 Feb Techniplas – global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m.
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06 Feb 19
Cenkos: Personal Group Holdings Plc - FY18E in-line; weaker FY19E outlook
Personal group (PGH) has confirmed FY18E trading has closed in-line with our forecasts, implying a return to YoY EPS growth this year (+6% forecast). This is despite a number of challenges emerging over H2/18E, some of which are expected to play out more fully in FY19E. This leads to a weaker than expected outlook, which causes us to revise our FY19E forecasts down (EPS -15%), such that earnings return to levels witnessed in FY17A.
10 Jan 19
Cenkos: Personal Group Holdings Plc - A return to earnings growth
Today's results are arguably the most positive from the company in the past three years, with all three divisions trading ahead of H1/17A comps and in-line with our FY18E forecasts. The outlook is also encouraging, particularly at Let's Connect, which faces its largest ever pipeline and will benefit this year from Royal Mail's re-launch. While full year delivery will be dictated by the key Q4 period, we expect the company to meet expectations, which would imply 6% EPS growth and a 1.3% uplift in DPS.
18 Sep 18
Small Cap Breakfast
Avast, global cybersecurity provider with 435m users worldwide. In 2017, the Group's Adjusted Billings was $811 million, Adjusted Revenue was $780 million, Adjusted Cash EBITDA was $451 million. Seeking to raise $200m. Due in May | Fundamentum Supported Housing REIT. Raising £150m. Focussed on UK Social Housing assets. Due 2 May | Vivo Energy—retailer and marketer of Shell-branded fuels and lubricants in Africa, Due in May. 100% secondary sell-down of existing Shares by Selling Shareholders, No new Money. Pricing TBA | Gore Street Energy Storage Fund—Seeking to raise £100m for the purposes of investment in a diversified portfolio of utility scale energy storage projects. Due 03 May | Odyssean Investment Trust—Raising £100m at £1. Due 1 May. The Company will primarily invest in smaller company equities quoted on markets operated by the London Stock Exchange | Finablr - press reports in ‘Arabian Business’ that Money transfer firms UAE Exchange, Travelex and others under UAE billionaire Bavaguthu Raghuram Shetty’s newly formed holding company Finablr are preparing for a London IPO
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25 Apr 18
Getting on the front foot
Today’s results demonstrate a robust, in-line delivery, despite external headwinds encountered over 2017, with revenues of £45.2m (-16%) and adj EBITDA of £10.8m (-5%). The outlook for FY18E looks brighter, with continuing momentum in insurance sales, the relaunch of PG Let’s Connect at Royal Mail and a new sales strategy for SEB. Winning new business will be the focus over what should be a more stable year.
21 Mar 18
Small Cap Breakfast
VR Education Holdings—a virtual reality software and technology company. Raising £6m, mkt cap c €22m. Due 12 March SimplyBiz, a Financial Services Firm, reported to be considering an IPO targeting a market capitalisation of between £140m and £155m in a listing that would raise £30m of new money | Bacanora Lithium—Readmission. No new money. Mkt cap £140m. Due 21 March. the new holding company for Bacanora Minerals Ltd | Stirling Industries—Acquisition vehicle focusing on industrials. Offer TBA. Due 5 March| GRC International Group— holding company for a group of companies providing a range of products and services to address the IT governance, risk management and compliance requirements of organisations. Offer raising £5m at 70p with market cap of £40.2m, expected 5 Mar 2018 | Core Industrial REIT—established to invest in Irish-based industrial properties, predominantly located in the Greater Dublin Area. Vendor placing and new funds to a total of €225m, Target gross proceeds €207m. Expected Mid March | Polarean - Medical drug-device combination company operating in the high resolution medical imaging market. Offer TBC. Due Early March | Block Energy—a NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC
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02 Mar 18
Same result, with a different mix
Personal group has released a trading update confirming management’s confidence in meeting adj EBITDA expectations for this year of £10.7m. The composition of the expected earnings delivery has changed however; Let’s Connect has seen customer delays leading to a material shortfall, but the resulting impact on earnings is expected to be negated in full by cost savings and outperformance elsewhere in the group.
27 Oct 17
Positioned for progress
Personal Group has produced robust interim results, delivering £19.6m of revenue (-0.8% YoY), £3.7m of adj EBITDA (-9.0%) and 3.2% growth in the quarterly dividend, in-line with forecasts. Results largely reflect performance of the company’s core insurance product, producing stable, recurring income. In H2/17E, we expect this to be combined with meaningful profit from the now refreshed PG Let’s Connect during its key Q4 trading period, leading to a strong H2/17E weighting to results.
26 Sep 17
Small Cap Lunch
GetBusy PLC—Sch1 from the holding Company of its subsidiary undertakings, which operates as a document management software business with over 110 full time employees, headquartered in Cambridge, UK and operating across the UK, USA, Australia and New Zealand. Capital to be raised via a rights issues of £3m at 28.3p with anticipated market cap of £13.7m. Work Group PLC—Sch1 from the Company that proposes to acquire the entire issued share capital of Gordon Dadds Group Limited (GDG). GDG is an acquisitive law firm and a group of other complimentary businesses, including Prolegal, an acquisition vehicle model focused on smaller law firm. Capital to be raised is £20m with anticipated market cap of £40m. Quiz—Sch 1 from the omni-channel and international own brand in the women's value fast fashion sector. Offer TBA. Expected late July. Last year Quiz posted sales of £87.4m while pre-tax profits grew by 17pc to £5.7m . Arena Events Group -provider of temporary physical structures, seating, ice rinks, furniture and interiors. Raising £60m. Mkt cap £63m. Expected on the Chef’s birthday, 25th July. Altus Strategies—African focused natural resource Company. Offer TBC. Expected Mid July. Harvey Nash Group— Provider of professional recruitment and offshore solutions moving to AIM from Main. No capital to be raised. Mkt Cap c. £57.8m. Greencoat Renewables - Schedule 1. Targeting a portfolio of operating renewable electricity generation assets, initially investing in wind generation assets in Ireland. Offer TBC. Due Mid July. I3 Energy –Schedule 1 Update. Independent oil and gas Company with assets and operations in the UK. Offer TBC, Mid July Admission. Verditek— Sch 1 update. The Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission late June. Hipgnosis Songs Fund investment Company offering pure-play exposure to Songs and associated musical intellectual property rights. Prospectus yet to be published. Impact Investment Trust—Exposure to a diversified portfolio of funds providing SMEs across developing economies with the growth capital they need to have a positive impact on the lives of the world's poorer populations. Raising up to $150m at $1.00. Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus. NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June. Kuwait Energy— has not been able to complete its initial public offering as announced in its Intention To Float of 3 May 2017. However, in light of positive feedback from potential investors, the Company remains committed to obtaining a London listing and continues to explore its options. Supermarket Income REIT– Up to £200m raise to acquire a diversified portfolio of supermarket real estate assets in the UK, providing long-term RPI-linked income. Due 21 July.
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17 Jul 17
The employee services platform
Personal Group (PGH) has announced FY16 results slightly ahead of forecasts, revenues of £53.6m (£52.4m forecast) and £11.4m of adj EBITDA (£11.0m forecast), demonstrating the businesses’ resilience despite 2016 being a year of change. The foundations have now been put in place in terms of broadening the product offering and delivery through a scalable, digital platform. FY17’s focus will be to penetrate the enlarged addressable market of c27m UK employees.
28 Mar 17
Personal Group has provided a mixed update this morning in which adj EBITDA for FY16 is expected to be in-line with our earlier expectations of £9.8m; however, delays in new customer take-on at Let's Connect (following HMR&C's updated guidance) and a later than expected launch of hapi in partnership with Sage, leads us to downgrade our FY17 adj EBITDA from £16.1m to £10.7m. While the delays are disappointing, management are still confident in the medium to long-term outlook.
10 Jan 17
AFH Financial (AFHP.L) | Spectra Systems (SPSY.L) | Corero Network Security (CNS.L) | Victoria (VCP.L) | Amerisur Resources (AMER.L) | Cyan Holdings (CYAN.L) | Kodal Minerals (KOD.L) | Arria NLG (NLG.L) | Personal Group (PGH.L) | Renew Holdings (RNWH.L)
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03 Oct 16