Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Artilium. We currently have 25 research reports from 3 professional analysts.
Anexo -specialist integrated credit hire and legal services group. Offer TBA. Due 19 June. i-nexus—develops and provides strategy execution software to assist global enterprises in effective execution of their strategic plans and initiatives looking to jon AIM. Offer TBC, expected 19 June Yellow Cake will use its expertise to generate value through the ownership of physical U3O8 (Uranium) together with a range of activities and opportunities connected with owning physical U3O8. Acquiring supply contract for up to $170m. Offer TBA. Tekmar— technology provider of protection systems for subsea cable, umbilical and flexible pipes and offshore engineering services—Offshore wind farms and Oil & Gas. Revenue of £21.9m and Adjusted EBITDA of £4.9m Offer TBA Knights Group— UK regional legal and professional services businesses. FYApr18 rev £34.9 million and adjusted operating profit was £6.8 million excluding Turner Parkinson (acquiring on IPO). Offer TBA Aquis Exchange—a founder-led, pan-European Multilateral Trading Facility and exchange and regulatory technology developer and service provider is looking to join AIM. Offer TBC, expected 20 June. TransGlobe Energy Corporation—an independent international upstream oil and gas company with headquarters in Calgary, Canada is looking to join AIM. No Capital to be raised, market cap of £131m. Expected 29 June Block Energy— UK based oil exploration and production company whose main country of operation is the Republic of Georgia. Raising £5m at 4p. Mkt cap £10.3m. Due 11 June. Strongbow Exploration (TSX:SBW) intends to dual list on AIM. Holds rights to the South Crofty underground tin mine, a former producing tin mine located in the towns of Pool and Camborne, Cornwall . The project is estimated to require the Company to raise £25 million over the next 18 months to progress to a production decision. Offer TBS. Due June. Yew Grove REIT—newly formed Company will pursue its investment objective by investing in a diversified portfolio of Irish commercial property. Raising €75m at €1. Due 8 June
Companies: DDDD JOUL ZIN IHC KWG ARTA WCH TSL ATMA
Artilium (ARTA): Corp Excellent interims lift FY expectations | Destiny Pharma (DEST): Corp Resisting resistance: funded to Phase IIb inflection point | Elecosoft (ELCO): Corp FY 2017 sees notable earnings and cash flow | eServGlobal (ESG): Corp Mastercard works with HomeSend | Horizonte Minerals (HZM): Corp 2017 annual results | K3 Business Technology (KBT): Corp Clarity and cash | Orchard Funding Group (ORCH): Corp 22% progress | Quartix (QTX): Corp AGM hears of insurance pressure | SCISYS (SSY): Corp Space delivers a strong year | STM (STM): Corp A watershed year
Companies: ARTA DEST ELCO HZM KBT ORCH QTX STM SSY WJA
The Belgium-based provider of telecommunication software and solutions is making significant progress. It has delivered an excellent H1 performance, and although the group plans additional investment in H2, we lift our FY 2018 forecasts and target price in response. Last year’s acquisitions of Wbase and Digiweb have been fully integrated, with Livecom brought into Comsys, to form a cohesive international business. Further expansion is being seen in Germany. This has been augmented with an experienced and capable CFO and a key partnership with NYSE company Pareteum to accelerate growth with initial success in China.
K3 Capital* (K3C): The winner takes it all (CORP) | InnovaDerma* (IDP): H1 trading update (CORP) | Savannah Resources* (SAV): Mining Lease applications submitted for Mutamba (CORP) | Artilium* (ARTA): Getting its message across (CORP)
Companies: K3C IDP SAV ARTA
Artilium is significantly strengthening its offering and increasing the size of its business with the acquisition of a German enterprise messaging company. In contrast to a recent spate of smaller in-fill additions, this is a major purchase heralding a step-change in scale: an uplift in earnings prospects and a shift in structure, focusing the offering on either Telco or Enterprise clients. Artilium is paying €3.5m (€2m in cash and €1.5m in options) for IDM, a profitable cloud communication provider operating a proprietary platform for worldwide enterprise-level SMS distribution. This will fit nicely into the existing array of services with excellent prospects for synergies. The nil-cost options for 11.1m shares that will vest in January 2020 and the cash element is part funded by a €1.25m placing of 11.5m shares (3.3% of the current issue) at 9.58p. A further 1.1m shares have been issued to advisors in lieu of cash. We upgrade our forecasts and TP in response.
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This quarter we use finnCap’s Slide Rule to provide both top-down and bottom-up analysis of the UK’s Technology and Telecoms sectors. Our findings are very reassuring: the Tech sector scores the best (across all sectors) when considering Growth and Quality – Taptica*, Frontier Developments* and dotDigital* in particular stand out on these metrics. Given these attractive characteristics and growth prospects, the Tech sector is unsurprisingly one of the most expensive – currently trading at 17.2x FY1 EV/EBIT and 23.8x FY1 P/E, versus 15.0x and 18.5x respectively for the wider market. Despite valuations appearing high, we believe there are value opportunities. For example, Proactis* features in finnCap’s QVGM+ portfolio (ranked 17/462) – the company offers attractive organic and inorganic growth, with earnings forecast to grow by 26% CAGR over the next two years, but despite this, only trades on 15x FY1 earnings and offers 8% FCF yield in FY2.
Companies: 7DIG ALT AMO ARTA BOTB BLTG CTP CITY D4T4 DTC DOTD ELCO FDEV GBG IDEA IDOX IGP IOM KBT KCOM KWS LRM MAI MMX NASA NET PHD QTX QXT RCN 932 SEE SIM SPE SRT STR TRMR TAX TEP TPOP TRAK UNG VIP ZOO CYAN ONEV SSY ABAL WJA
We re-initiate coverage with the FY 2017 results as the group delivers solid growth in both revenue and EBITDA. Underlying that financial progress, it is making good operational and technical progress in constructing a truly global and innovative cloud-based telecoms software provider. A number of acquisitions and partnerships forged over the past few years have left Artilium well positioned as an enabler to take advantage of the ongoing growth in the global MVNO market. It has a comprehensive range of products to suit all the needs of communications services providers around the world, from developing regions to developed regions. Being cloud-based, they are flexible and do not require heavy upfront investment. Artilium's ‘pay-as-you-grow’ business model tailors them even more for newly launched MVNOs, with additional platforms expected to be sold in Africa and Latin America in particular.
The comms software company is expanding from its established UK and Belgian operations with a new office in Bocholt.
Water Intelligence* (WATR): Building a market leader (BUY) | Mortice* (MORT): Contract wins (CORP) |Avacta* (AVCT): Momentum building… Two reagent licences (CORP) | Revolution Bars (RBG): Forecast downgrades (BUY) | Shanta Gold (SHG): Completion of US$10.0m equipment financing (BUY) | Artilium* (ARTA): Small customer-base acquisition (CORP)
Companies: WATR MORT AVCT RBG SHG ARTA
Eddie Stobart Logistics— Schedule 1. Admission expected 25 April but capital raising details TBC. ADES International Holding— Intends to join the Standard List in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
Companies: PAF OMIP ARTA MAYA NTQ TCN CGH RTHM HYR
D4T4 Solutions* (D4T4): Changing mix sees earnings upgrade (CORP) | Artilium* (ARTA): Web developments (CORP)
Companies: D4T4 Solutions Artilium
Enterprise-focused niche applications of tech illustrate how, while trends appear to be fluctuating away from the current poster children of fintech and the Internet of Things, in fact these developments are refining appropriate application of existing technologies.
Companies: 7DIG AMO ARTA BVC BOTB CTP CITY D4T4 DTC DOTD ELCO FDSA FDEV GBG IDEA IDOX IGP IOM KBT KCOM KWS LRM MAI MMX NASA NET PHD QTX QXT RCN 932 SEE SIM SPE TAX TEP TPOP TRAK UNG VIP ZOO ONEV SSY ABAL WJA
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
Companies: LGT UTW TRAK DOTD ARTA NET
Research Tree provides access to ongoing research coverage, media content and regulatory news on Artilium. We currently have 25 research reports from 3 professional analysts.
|01Oct18 15:50||RNS||Scheme Effective|
|01Oct18 07:30||RNS||Suspension - Artilium plc|
|28Sep18 16:00||RNS||Court sanction of Scheme of Arrangement|
|25Sep18 10:30||RNS||Rule 2.9 Announcement (Pareteum Corporation)|
|18Sep18 09:30||RNS||Rule 2.9 Announcement (Pareteum Corporation)|
|14Sep18 13:30||RNS||Result of Shareholder Meetings|
|13Sep18 16:15||RNS||Pareteum Stockholder Meeting|
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 YE trading update reveals that management has actioned its proposed switch from a perpetual licence to a SaaS business during FY 2020. We therefore adjust our forecasts as moving customers from one-off perpetual licence contracts to recurring revenue contracts takes longer to implement and revenue is recognised over a longer period. Despite COVID-19, D4t4 made good progress in Q4 since the January update (with its own raft of contract wins), and several more contracts have been secured on a multi-year ‘as-a-service’ basis, providing additional recurring revenue visibility (now 46% of total sales) over the next three years. Management does not expect any significant interruptions in customer service or its distribution channels. However, actions taken to mitigate the impact of the virus include home working; preserving cash; and securing additional liquidity from the bank if required. The final dividend and FY 2021 forecasts are under review, however the £0.5m share buyback programme continues.
Companies: D4T4 Solutions
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
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.
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
CentralNic's business is resilient in the current environment. The company has mostly repeatable revenues and sells mission-critical products, diversified across many customers and countries. Market growth is robust, benefiting from the recent surge in online activity and regulated price increases. Competitively, the company is well positioned, dominating its core markets. Financially, the company has adequate financing and has not experienced any increase in late payments. CentralNic’s resilience is reflected in a confident trading update this morning.
Companies: Centralnic Group
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.
Given today’s uncharted waters, it is nice to own resilient, profitable and cash generative stocks. Especially those like BuildTech software developer Elecosoft - sporting a robust balance sheet and generating high recurring revenues (ED 56%). Traits which should not only provide investors shelter from the worst of the COVID-19 storm, but also thrive once this CAT 5 hurricane subsides.
FY Mar 2020 results appear to be ahead of expectations with revenue of £18.8m against our £17.5m forecast (as revised last month); we adjust our expectations accordingly. COVID-19 restrictions are of course imposing delays on both existing projects and the imminent signing of the new contracts due in the Middle East. To deal with this, SRT has implemented an operating plan to reduce costs and has significantly strengthened its cash position, raising between £2.8m and £7.3m. This is being done through a £1.8m equity raise; a £1.0m issue under the existing Secured Medium Term Note Programme; and an application to its main bankers for a facility of up to £4.5m under the Coronavirus Business Interruption Loan Scheme. The funding will enable SRT to maintain the required levels of development and deployment through the current period of restrictions. We are withdrawing our FY Mar 2021 forecasts pending greater visibility.
Companies: SRT Marine Systems
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
The delayed FY 2019 results are a slight beat on YE guidance, but more importantly they reflect a change in the business model as the maturing PTRO is able to persuade customers to sign recurring revenue contracts rather than buying one-off licences; deepening its relationship with its customers as it deepens their connections to their subscribers. By changing its model, PTRO is sacrificing the growth from upfront revenue and cash, in return for much greater quality and security and in fact more revenue over the full lifespan of the contracts. In the long term, this is an excellent and necessary shift; however, it does have that near-term impact on growth and cashflow. Otherwise, PTRO is reporting ‘business as usual’ for its customers despite COVID-19. PTRO is operating home working and benefits as its USD-denominated revenue rises, travel costs are curtailed and mobile telecom usage increases across the world. We adjust FY 2020 forecasts for the results but continue to expect revenue and earnings growth.
The FY19A results show both very strong growth in recurring revenues. These recurring revenues now form a substantial majority of Group sales. This transition in the business model reduces reliance on lumpy hardware sales and helps de-risk the investment. The macro environment lends caution but Corero is in its best shape for years.
Companies: Corero Network Security
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.