Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Quixant. We currently have 48 research reports from 3 professional analysts.
ANGLE (AGL): Corp | Europa Oil & Gas (EOG): Corp | Hardide (HDD): Corp | Intercede (IGP): Corp | M.P. Evans (MPE): Corp | Quixant (QXT): Corp | Synairgen (SNG): Corp | Tremor (TRMR): Corp | Trifast (TRI): Corp
Companies: EOG HDD IGP MPE QXT SNG TRMR TRI AGL
FY 2019 results will be released next week but this update reveals they are in line with forecasts. The supply-side issues of COVID-19 are easing and have been well managed with minimal disruption; however, the global shutdown for an indefinite period brings material uncertainty to FY 2020 demand across all divisions and QXT has withdrawn guidance pending greater visibility. Prudently, the dividend will also be paused this year. Nevertheless, we are confident that QXT remains well managed, with a strong business model and a healthy pipeline of prospects. Underpinned by $17.7m net cash and a property-rich balance sheet, the long-term opportunity for QXT remains robust. In fact, COVID-19 pressure may be a catalyst for increased outsourcing across the Electronic Gaming Machine (EGM) industry.
Altitude Group (ALT): Corp Proposed disposal of ADP | Europa Oil & Gas (EOG): Corp Wressle economics highly robust | LPA Group (LPA): Corp COVID-19 update and Board appointments | Morses Club (MCL): Corp Substantial immediate upside opportunity in share price | Quixant (QXT): Corp Coronavirus delays audit sign-off for a week | Revolution Bars Group (RBG): Corp COVID-19 trading update | Synairgen (SNG): Corp COVID-19 Phase II trial to start imminently
Companies: ALT EOG QXT RBG SNG MCL LPA
Minds + Machines (MMX): Corp Strong H2 underpins forecasts and maiden dividend | Quixant (QXT): Corp Market weakness impacts H2 and cautions on FY 2020 | Tremor (TRMR): Corp Reassuring trading update after a transformational year
Companies: MMX QXT TRMR
Today’s trading update notes further softness in the gaming market last year. Guidance was cut in September on reduced demand from two large customers (notably Ainsworth) losing market share/floor space in the casinos. In the following months to the YE, Quixant experienced weaker demand for core gaming platform units across the wider client base, indicating general uncertainty amongst global machine manufacturers. FY 2019 revenues and adj. PBT will thus be below forecasts at $92.3m and $10.7m (down 20% and 40% YoY respectively) although H2 cash generation appears to have been strong, leaving $16.2m net cash at YE ($15.2m expected). Given this uncertainty we have cut our growth expectations for the year ahead to the very minimum likely case to rebuild confidence. The operational gearing increases the earnings impact. In light of the strong cash position, our dividend forecasts are unchanged. The issue of visibility has been addressed with the appointment of a new Sales Director this month and the introduction of improved systems during Q4 2019. The new sports-betting terminals should start to boost sales in 2020 and in 2021 we should see growth from a sizeable new customer in Japan. QXT remains well- funded, profitable and cash generative. Although facing short-term headwinds, it retains an excellent position to benefit from the underlying outsourcing trend in the global gaming machine industry. We ease our TP to 250p on this update.
The Interims have been brought forward in light of a warning on H2. Quixant had previously flagged that 2019 would be heavily H2-weighted and H1 is weak but in line with expectations. However, a recent review of customer intentions reveals that H2 orders will not meet expected volumes. The global gaming machine market is still healthy but key customers (notably Ainsworth) have lost significant market share to Aristocrat in Australia and N. America. We cut our FY 2019 and FY 2020 forecasts; however, no customers have been lost and the concentration is much reduced while the long-term growth potential and cash generation remains strong.
Avingtrans (AVG): Corp FY results slightly ahead, good margin gains achieved | Chariot Oil & Gas (CHAR): Corp Lixus licence additional prospects | ClearStar (CLSU): Corp Medical and direct sales continue to drive strong growth | Europa Oil & Gas (EOG): Corp Moroccan acreage award | Iofina (IOF): Corp IO#8 iodine plant launched | Quixant (QXT): Corp Market share loss at key customers will leave H2 short | Zambeef (ZAM): Corp Disposal of a farm yields US$9.25m cash | ZOO Digital (ZOO): Corp AGM statement
Companies: AVG CHAR 9537 EOG IOF QXT ZAM ZOO
Bango (BGO): Corp A wheel of fortune | K3 Capital (K3C): Corp Continuing to build a unique business model | KRM22 (KRM): Corp Interims | NAHL (NAH): Corp Transformation on track | Quixant (QXT): Corp Market share loss at key customers will leave H2 short
Companies: K3C QXT NAH KRM BGO
dotDigital (DOTD): Corp FY trading update | DX (DX): Corp Major milestone reached and cleared | PCI Pal (PCIP): Corp Trading update highlights exceptional growth in FY 2019 | Quixant (QXT): Corp H1 in line with expectations and on track for FY
Companies: DOTD QXT PCIP DX/
A well attended and well received briefing saw the company introduce investors to its vision for Densitron’s future growth and the new management team brought in to deliver it. After several years of steady performance, Densitron is looking to drive growth with a switch in strategy from its traditional one-to-one projects over a range of end markets, towards a modular, one-to-many approach targeted at leading OEMs in much more focused global markets; the first being Broadcast (with others ahead) and its Human Machine Interface (HMI) becoming a key USP.
Kazera Global (KZG): Corp New resource estimate for NTI tantalite mine | Quixant (QXT): Corp Densitron in the spotlight
Companies: Quixant Kazera Global
LiDCO (LID): Corp FY 2019 results | Pelatro (PTRO): Corp FY 2018 was a year of profitable growth and expansion | Quartix (QTX): Corp The recovery in UK Fleet growth continues in Q1 | Quixant (QXT): Corp A record half and year despite market softening | STM (STM): Corp A strong, simple business; well-positioned and ambitious
Companies: LID QTX QXT STM PTRO
As the YE update revealed, 2018 revenue growth slowed to 5% due to the cutting of low-margin Monitor lines in H1 and some market softening in H2. However, strong growth continues in Platforms, and together with an impressive H2 recovery in Monitors, it fuelled a record half and drove the group forward in 2018. Densitron remains relatively flat. Overall group margins held up well but with slower top line progress the 2018 Adj. PBT growth was just 3%. However an unusually low tax rate saw disproportionately strong Adj. EPS growth beat expectations (2019 EPS will look flatter as it normalises). A prudent outlook implies lowered 2019 expectations and a heavy H2-weighting, however we still expect strong long-term growth in both revenue and earnings.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Quixant. We currently have 48 research reports from 3 professional analysts.
|03Apr20 12:23||RNS||Holding(s) in Company|
|31Mar20 07:00||RNS||2019 Trading and COVID-19 update|
|27Mar20 15:08||RNS||Timing of Results|
|26Mar20 16:50||RNS||Board Change|
|19Mar20 12:50||RNS||Holding(s) in Company|
|18Mar20 07:00||RNS||Notice of Results Update|
|12Feb20 17:44||RNS||Holding(s) in Company|
Seeing Machines Limited has announced that it has won a pre-production license deal with a major Automotive Tier 1 partner. This has been entered into under the terms of a pre-existing non-exclusive Collaboration Agreement to provide Seeing Machine's Driver Monitoring System (DMS) technology for an ongoing Automotive programme. For this Seeing Machines will receive a non-refundable pre-production license fee of US$5m before 30 June 2020, in addition to future volume based royalty payments for the above mentioned Automotive programme. Seeing Machines will retain all intellectual property rights associated with its DMS technology licensed to the counterparty under the Agreement.
Companies: Seeing Machines
The Coronavirus pandemic is a human tragedy of vast proportions – as well as the terrible human toll, COVID-19 has led to economies across the globe going into physical lockdown and financial freefall. Entire populations are adapting to the “stay at home” edict, to safeguard the vulnerable – and some of these changes will lead to long-lasting or perhaps permanent changes in the way we live or work. This note describes some of our client companies whose business models are well adapted to these changes, or who might see a change in long-term structural demand.
Companies: AMO BGO FDM GAMA KAPE LOOP TERN ZOO
In a remarkable coup for Bango, Korean technology leader NHN Corp is taking control of the Audiens Customer Data Platform (CDP) business by investing £6.5m for a 60% stake in the holding company, Bango Deep Ltd, with a view to scaling up Audiens through support and technology into a truly world-class CDP provider. NHN is further securing and deepening its relationship with Bango itself by taking 3.5m Bango ordinary shares (4.7% of the expanded Bango) for £3.2m. This is an excellent deal for Bango, sealed at a time of restricted travel and tightened commercial prospects and possible only because Bango is already partnered, and trusted by the Korean technology giant. The deal takes a non-core, near-breakeven business off the Bango P&L and sharpens management focus, while maintaining a substantive interest in what – now backed by NHN’s cash, expertise and data technology – should become a major global player in the lucrative, high-growth CDP market. On top of this, Bango strengthens its balance sheet with a cash injection and the strategic partnership between NHN and Bango itself is substantively deepened. We adjust our FY 2020 forecast for the change in Audiens accounting status and the cash injection, and highlight the value.
The company announced several appointments that have strengthened the management team after seven acquisitions over the past two calendar years. We believe this investment in management should form a strong foundation for the company’s next phase of growth. Alex Siffrin, the company’s largest shareholder, has stepped down from the board to focus on personal priorities
Companies: Centralnic Group
Bango has announced the expansion of its strategic relationship with NHN Corp, the Korean big data giant. NHN is investing £6.5m to take a majority interest in the Audiens business, owned by Bango. For its investment NHN gains a 60% stake in Bango Deep, the Bango subsidiary which owns the Audiens Customer Data Platform (CDP). NHN will inject its data science technology into Audiens to grow it into a world leading CDP. In addition, NHN has also subscribed for 3.5m new ordinary shares in Bango – 4.7% of the group’s existing ordinary share capital. Bango paid approximately £4m for Audiens. NHN is paying £6.5m for 60% of that business. We revise estimates following the announcement to reflect that Audiens will no longer be fully consolidated in Bango’s accounts. We believe the deal validates Bango’s investment in Audiens and represents a significant vote of confidence in both the data monetisation business and in Bango itself, by a highly successful commerce leader.
A strong interim period to January 2020 delivered the expected £26m revenue as reported in the February trading update, with a 31 January net cash balance also of £26m – EBITDA of £5.6m (post IFRS16), and adjusted PBT of £4.6m highlighting a strong performance. The Group has unchanged strategic ambitions – organic growth and M&A, both in evidence in Rail Technology & Services (RT&S) with 13% organic growth and the post period end acquisition of iBlocks. We withdrew forecasts last week due to the impact of COVID-19 on the 2H-weighted Traffic & Data Services business, given the exposure to cancelled large scale summer events, and uncertainty over traffic surveys; however, the potential for the Group is unchallenged when the world normalises. New contract wins, new product launches, new acquisitions and a hearty balance sheet continued to offer significant upside in 1H and post period end. Target price 900p remains based on our FY21 forecasts, which in theory should be consistent with previous forecasts and we look forward to reinstating numbers when the virus dust settles.
Caledonia today announces that it has taken the prudent decision to defer its approval for the payment of the second quarterly dividend (7.5c/sh - $0.9m - 7% of declared Caledonia cash). The Blanket mine in Zimbabwe remains in operation (at a slightly reduced capacity to secure Covid-19 social distancing) and the mine site remains well-stocked with supplies, so despite the current difficulties getting supplies from South Africa production at the mine can continue for some time to come; 2-3 months in our opinion, if the supply chain from South Africa ceased altogether. Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning, the group has released an update in light of COVID-19. The Board reports that it has taken swift action to re-engineer processes to adhere to government guidelines, whilst maintaining client service levels. Q1 2020 trading is reported to have been ‘broadly' in line, with revenue growth of 40% from continuing operations and outstanding orders to ship to customers in the coming months. Q1 was cash neutral, which follows on from the RNS on 5 February, of a net cash position of £849k as at 31 December 2019.
Companies: Caledonia Mining Corporation Plc Com Shs Npv Touchstar
Yesterday’s trading update confirms that IQE’s FY19 results will be in line with the revised guidance it provided in November when the full extent of the impact of the US-China trade war became visible. We have cut our FY20 revenue estimate by 6%. In IQE’s case the impact of COVID-19 on global handset demand is likely to be softened by gaining share in both the wireless and photonics markets. However, the full effect of the pandemic on the global economy and IQE’s business remains to be seen.
Bango has announced FY 19 results in-line with the December-19 trading statement and our forecasts. The business has grown strongly throughout the Brexit hiatus, notably FY 19 saw the key End User Spend (“EUS”) metric double once again to £1.1bn. With the global macro-economic situation continuing to be impacted by the Coronavirus, we believe market attention will focus on the outlook. The release confirms that Bango has no supply chain dependencies, its products are available without interruption. Furthermore, management has re-iterated its expectation for continuing exponential growth in EUS. We maintain FY 20E estimates following the release and will revisit as visibility on “stay at home” behaviour improves.
FIH's year end update this morning reveals an inline performance in the year to March 31st 2020, notwithstanding disruption over the past six weeks, and also updates on the respective likely effects of Covid-19 on its three business streams, with greater relative resilience seen in the Falklands business and bigger impacts already apparent on the two UK-based businesses, not surprisingly. We note that PTY, in line with requests to companies from the FCA and FRC, is formally delaying its results announcement for FY2019A (year to December), which would in the normal course of events have been published today. A new release date will be issued in due course. Re 2019, the company highlights its update from January indicating inline P&L performance in FY19A combined with good progress on cash resulting in an anticipated net positive cash situation at the year end.
Companies: FIH Group Parity Group
WANdisco recently confirmed that its Fusion product is on track for full availability with Microsoft ‘in the next few weeks’. In this audio clip CEO David Richards describes the commercial implications of this and how the business is navigating the challenges of COVID-19. WANdisco’s proprietary replication technology enables its customers to solve critical data management challenges created by the shift to cloud computing. It has established partner relationships with leading players in the cloud ecosystem including Amazon and Microsoft.
Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.
Companies: ABBY AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CDM CSRT TIDE CYAN DTG DEMG ELM EMR FPO FDEV GTLY GENL GHH GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KAPE KEYS KWS KCT KGH LAM LIT LOK MACF MANO MOD OXIG PCA PANR APP SRE PHC PMO RBW RMM RBGP REDD RSW RNO ROR SUS SCPA SEN SHG SOLG SOM SUMO TM17 INCE TWD TRAK TRI VNET VTC ZOO ZTF
Software stocks that enable corporates to sell more, improve quality, cut costs, save employees time and/or reduce their ‘carbon footprints’ are ideally placed in today’s tech/ESG world. Cue Elecosoft, who said this morning that 2019 PBT would be “ahead of LY” (£3.67m) and “in line with expectations” (consensus £4.1m) - despite being impacted by forex (ED est -2%, weaker SEK vs £) and macro uncertainties (eg Brexit, General Election and subdued Eurozone). We think this is a creditable outcome. Not least because it underlines the resilience of the business - while the results are actually a touch better than our previous (bottom of the range) profit & cashflow estimates, albeit with revenues a smidgeon shy.
H120 numbers show continued 15% organic revenue growth with a slight shift in the mix to direct sales from connectors and the continued themes of strong (33%) International growth, strong growth in new Functionality and rising (+14%) ARPU. At present just about 20% of group sales come from clients using more than one communications channel, giving dotDigital a considerable omni-channel cross-sell opportunity.
Companies: Dotdigital Group