Brickability - The br icks supplier , w hich a lso ha s a hea ting a nd plumbing business a s w ell a s a roofing division, expects to join the junior market at the end of this month with a market cap of circa £150m
Companies: ESL HDT STL CLP LEK EOG SRSP CLCO RGD
Kropz, an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana, is looking to join AIM. Offer TBC, expected late Nov
Titon holdings—international manufacturer and supplier of ventilation systems and window and door hardware. No capital raise. Due 10 Dec. Mkt cap c.£22m.
Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD
Finncap—proposed acquisition of M&A adviser Cavendish Corporate Finance and AIM admission. Offer TBA
Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is investigating the possibility of AIM admission. The Company is proposing to raise up to £2.25 million before the end of December, conditional on Admission.
The Panoply parent company of a digitally native technology services group founded in 2016 with the aim of identifying and acquiring best-of-breed specialist information technology and innovation consulting businesses across Europe, is looking to join AIM. Offer TBC, expected late November 2018.
Rumours and Speculation Report on Bloomberg that Ghana will seek to raise as much as $750 million through a sale of shares in a fund that will hold the West African nation’s stakes in mining companies
Companies: CLCO EYE GOOD MRS EME GDR NCCL HCM
Adept4 (AD4 LN) Successful resolution of legal dispute | Brooks Macdonald Group (BRK LN) Finals show benefits of growth held back by cost, but EPS in line | IndigoVision Group (IND LN) Losses narrowing and guidance reiterated | Safestyle UK (SFE LN) Improving risk profile – upgrade recommendation to Hold | Sigma Capital Group (SGM LN) Completed site sold to PRS REIT, further development site acquired | The PRS REIT (PRSR LN) Site acquisitions, forward purchases add five sites comprising 380 units
Companies: CLCO BRK IND SFE SGM
Adept4 (AD4 LN) Satisfactory progress against key objectives for 2018 | Ergomed (ERGO LN) TU disappoints but medium-term outlook bright | Redde (REDD LN) In line FY update, no change to forecasts | Small-cap quantitative research Momentum screen refresh + 7 highlighted stocks | Summit Therapeutics (SUMM LN) PhaseOut DMD misses endpoint: ezutromid development terminated
Companies: CLCO ERGO REDD SUMM
Actual Experience (ACT LN) 2018 year of execution | Adept4 (AD4 LN) Asset light strategy starting to deliver | Bodycote (BOY LN) Forecasts increased following positive year end update | City of London Investment Group (CLIG LN) Q2 FuM +6%, H1 profits expected in line | Clinigen Group (CLIN LN) H1 trading update in line with expectations | Earthport (EPO LN) Board changes
Companies: ACT CLCO BOY CLIG EPO CLIN
Adept4 has released its final results to Sept’17, marking the first full year period for the group in its current guise. During the year the group has successfully brought together the three major acquisitions (Ancar-B, Weston and Adept4 Managed IT) and established an attractive, integrated platform for future growth. Group revenue for the year was £10.3m, up 7% on like-for-like basis, with recurring revenue representing 71% of the total. Gross margins remained strong and trading EBITDA improved 26% to £1.2m. Gross cash at the year end was £2.9m, despite two large payments being received just after the period end. With recurring gross profit essentially covering trading overheads, we believe Adept4 has taken significant steps on its journey to delivering predictable, cash generative growth, with more to come in FY’18 and beyond. We expect the group to continue to capitalise on its strong Microsoft relationship, offering a coherent organic growth strategy, augmented with selective earnings accretive acquisitions as appropriate.
Companies: CloudCoCo Group Plc
Block Energy—a 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
Cradle Arc—holding company of a group of companies focused on the exploration and development of precious and base metals projects in Africa. Offer raising £2.4m with market cap of £20.13m. Expected late Jan 2018
Volex VLX.L—The global provider of cable assemblies is proposing to move from the main market to AIM on 19 January. £75m market cap. FYMar18E rev £241.5m and £7.19m PBT.
OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.
Companies: EME TERN FPM TST DMTR GATC MIDW CLCO GDR
Adept4 has released its interim results for the six months to March’17, showing good progress with its IT as a Service strategy. These results mark the first reporting period with a full six month contribution from Adept4 Managed IT, Ancar-B Technologies and Weston Communications, but we are encouraged to see a number of large new customer wins and healthy growth in all key KPI’s on a l-f-l basis. With the turnaround activity now complete and a solid operating platform established, Gavin Lyons is stepping down as Executive Chairman. The process to find a suitable replacement is underway and we believe the future incumbent is inheriting a group with the foundations for growth firmly in place. We expect the group to continue on its journey to delivering predictable, cash generative growth over the coming periods, augmented with selective earnings accretive acquisitions as appropriate.
Adept4 has released its preliminary results for the year to September ’16. During the period, the group disposed of its legacy loss making businesses and acquired three profitable businesses, resulting in a significantly improved operating profile going forwards. The reported results from continuing operations include only part-year contributions from companies acquired, but we are encouraged by the £0.9m trading EBITDA reported in the period. More importantly, monthly recurring gross profit at Sept’16 was £409k, which compares favourably to monthly run-rate trading overheads of £382k. With the turnaround activity now complete, a solid operating platform established and cash balances of £4.3m, we believe the foundations have been laid for the group to deliver sustainable, cash generative growth in the coming periods.
Totally PLC (TLY.L) | Robinson (RBN.L) | Adept4 (AD4.L) | Tekcapital (TEK.L) | Aukett Swanke (AUK.L) | Escher Group Holdings (ESCH.L) | ASOS (ASC.L) | STM Group (STM.L) | Stadium Group (SDM.L) | Karelian Diamonds (KDR.L)
Companies: TLY RBN CLCO TEK AUK ESCH ASC STM SDM KDR
ALSP* Board Changes, COMS Contract Win, CNS Contract Win, CCS University Partnership, DEMG announces results of ODM trial, ESP acquisition in Leicester, EZH Interim Results, EVG results, FEVR Trading Update, FDEV Update, INS acquisition, MMH Acquisition, MMX Launch, MXCP Placing, OPTI* Patent Filling, PINN Acquisition, PLI* Bought Deal, SAR* Clinical Trial, STOB Deal Completion, TERN Acquisition, TMT* Investments
Companies: ALSP CNS DEMG EZH ESP EVG FEVR FDEV IVO INS MMH MMX MXCP OPTI CLCO PLI SAR STOB TERN TMT SMRT
Referring back to our sales note 27 July 2015 – at that time the market cap of Pinnacle was £5.77m it is now £10.1m a gain of around 75%. There has been a bit of news since then: A Cloud Security Agreement with Baxters (the soup folks): A new sales team to drive 02 for business: And the appointment of a new Executive Chairman, Gavin Lyons. The latter announcement (RNS 7 Dec 2015) seems to have had the greatest impact on the share price. Presumably as Gavin’s previous gig, as CEO of Accumuli, was so successful. Accumuli’s shares giving a three-fold return, during his tenure from August 2012 to the takeover by NCC in April 2015.
If the proof of the pudding is in the eating, then it is fair to say that Pinnacle’s pudding is not quite out of the oven; but by the time this pudding has been served up and eaten, the share price may well be a multiple of where it is now. So rather than sit at the table, spoon in hand, it might be helpful to have a look around the kitchen and meet the new chef.
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Sopheon has this morning announced a major win for Accolade – the global snack food giant, Mondelez. The deal is good evidence that Sopheon continues to win material deals despite the pressures of COVID-19, and that its innovation management platform is genuinely market-leading. We continue to believe that the group will see a return to strength as the market slowly recovers, and see today’s announcement as a useful signal.
Companies: Sopheon Plc
Shearwater delivered adjusted EBITDA ahead of expectations. FY20A was a strong year with the Group delivering maiden profitability and an enhanced margin profile. Cybersecurity and resilience are enduring themes but we are now cautiously presenting a picture of unchanged profitability in FY21E as a measure against the impact of COVID-19.
Companies: Shearwater Group Plc
Smartspace released positive news for both Space Connect and SwipedOn on Friday, sending the stock nearly 50% higher. Space Connect has signed a distribution agreement with Softcat and the SwipedOn has posted 80% yoy growth in AAR. Encouragingly too, SMRT also flagged current net cash at £1.7m (vs. £1.9m in April) demonstrating impressive reliance despite a challenging macro backdrop. In fact, SMRT has adapted quickly and is proving a ‘Covid beneficiary‘, seeing strong inbound demand as customers look for safe news ways to conduct business. Reassured by this, we continue to believe that Space Connect and SwipedOn could be worth considerably more than the current market cap.
Companies: Smartspace Software Plc
RenalytixAI (RENX.L): KidneyIntelX to be used in study investigating kidney risk in COVID-19 Patients
Companies: Renalytix AI Plc
Pelatro has raised $2.7m in an equity Placing to fund an expansion in sales headcount and marketing activities in order to further expand the business, subject to shareholder approval. The product suite is fully developed and ready to be taken to a much broader set of customers. The beneficial impact of this expansion should be felt from the end of 2021E onwards.
Companies: Pelatro Plc
We believe Beeks has issued a reassuring update on business performance for the twelve months ending 30 June 2020. Management expects to report FY 20E trading results within the range of current market expectations. The sales pipeline continues to grow, and implementations with existing Tier-1 clients are progressing according to plan. Beeks has also announced that COVID-19 has so far had only a minimal impact on the group but signals that some clients decision-making processes have been altered. We maintain our FY 20E estimates following the release but amend FY 21E forecasts reflecting revised assumptions on timing of revenues from new Tier1 clients.
Companies: Beeks Financial Cloud Group Plc
Blackbird plc* (BIRD.L, 17.5p/£58.8m) | Shearwater plc (SWG.L, 185p/£43.9m) | The Panoply Holdings plc (TPX.L, 92.5p/£51.3m)
Companies: BIRD SWG TPX
GHT is acquiring Inforalgo for £2.3m cash and £1.3m deferred, an attractive <2x ARR. We adjust our FY20 forecasts for modest accretion. This strengthens GHT’s nascent Regulatory business, allowing it to offer end-to-end solutions and significantly extends its real-time cloud connectivity services such that it can provide a potentially transformative STP capability. Adjusting for the acquisition, for cash, valuing Clareti Services at 2x sales and Legacy at 1x, leaves Clareti valued at just 4.1x ARR.
Companies: Gresham Technologies Plc
Pelatro PLC (LON:PTRO) is a software provider focussed on the telecom sector, offering telecom operators solutions for increasing revenue per subscriber, retaining subscribers, and monetising data.The customer base includes major global telecom operators, with the biggest geographies being Southeas
What’s new: OnTheMarket Chairman, Christopher Bell, is expected to make the following observations at the AGM later today:
OnTheMarket had £9.4m net cash at end June 2020 (end May 2020: £8.8m).
Agents listing with OnTheMarket are seeing strong levels of activity … following the release of pent-up consumer demand as the market reopened, buoyed further by the Chancellor’s stamp duty holiday.
OnTheMarket delivered 1.8m leads in June. This is an average of 134 leads per advertiser (compare: average of 94 leads per advertiser last year; 126 leads per advertiser for January).
1,619 agent branches list exclusively with OnTheMarket (up 42% yoy).
At 30 June 2020, OnTheMarket’s total advertisers* had reached almost 14,000.
* advertisers include new home developments, as well as estate and lettings agent branches
Companies: OnTheMarket Plc
The FY 2020 results are broadly in line with the YE trading update, showing resilience and effective management through a challenging period. Even with the distraction of settling a warranty claim, the sale of the antenna business, management change, and finally a pandemic, the ongoing business still grew revenue and profits YoY. The sale allows FTC to focus on core markets: public safety; aerospace & defence; and telecoms backhaul. The proceeds funded significant investment in staff, production capability, and product development while still leaving £2m cash in the bank at YE. Operations continued through lockdown, with all customer requirements delivered on time. Delayed deliveries are recommencing, with staff steadily returning from furlough. Contract wins have been impressive through the year, and despite orders slowing in the Q4 lockdown, the YE orderbook matches the opening orderbook and was since boosted by a £4.9m follow-on order to its lead defence customer. Management rightly remains cautious on the immediate outlook with the economic impact of COVID (and Brexit in January) as yet unknown, so our forecasts remain Under Review. However, in the longer term, the underlying fundamentals look very healthy, with exciting opportunities to build value in the targeted markets.
Companies: Filtronic Plc
Immotion is a leading UK-based ‘out of home' Virtual Reality (VR) experience provider. This morning, the group has announced that its 36 seat Ocean Explorer VR theatre located in the Shark Reef Aquarium at Mandalay Bay opened on 1 August and with an improvement in terms for Immotion. Under this new agreement, the element of the standard Shark Reef entry price being allocated to the VR experience has been set at $9 per head, of which Immotion receives 50%, and compares to the previously reported minimum allocation of $5/$2.50 per head. Encouragingly, the Shark Reef Aquarium re-opened to the public on 1 July and has a reported c.1,000 visitors per day (implying the equivalent of over £110k contribution to Immotion per month based on the current rate), which compares to the 500,000+ annually prior to COVID-19 (the equivalent of £150k+ per month to Immotion).
Companies: Immotion Group Plc
Gross Value Flows across both HomeSend bank and MTO network in Q2 saw a remarkable rise; virtually double Q1, leading to the urgent requirement for a €15m facility from Mastercard last month. HS continues to focus on its banking business, but the nearly equal growth between bank and MTO business in Q2 is due to several recently added MTOs and an increase in demand for person-to-person transfers during the COVID-19 pandemic. With more small-scale personal transfers, there was little change in Average Transaction Value and the Payments terminating to a bank account as a percentage of Gross Value Flows in Q2. Hopefully, early-stage implementations have been unaffected by lockdown. HS will review its business plan this quarter to ensure that it is structured for anticipated acceleration in customer and volume growth ahead.
Companies: Wameja Ltd.
LoopUp has delivered a trading update for H1, highlighting some exceptionally strong activity during the COVID-19 lockdown period, which appears to be at least partly translating into longer-term outperformance. We materially upgrade our forecasts for 2020 and 2021, and look forward to additional detail at the late-July Operational Update webinar.
Companies: LoopUp Group plc
Finals for the year to March demonstrate rude health and opportunities despite lockdown – and after nearly four years, the absence of the spectre of the FCA investigation has been dealt with. The organisational efficiency which CEO (and former CFO) Peter Brotherton has delivered over those four years has not just allowed included cost savings, but also an upgraded and rationalised network and infrastructure, a single ERP (from October), and opportunities for private and public sector revenue growth. The group is now primed to play an active part in the consolidation of the mid-market managed services sector, as predator or prey, with a healthy balance sheet (net debt/EBITDA 0.1x at FY21) and an FY22 debt facility. Results are as expected: FY21 EBITDA is tweaked up 2%, and FY22 is introduced with upgrade potential. We lift our target price once again, to 170p (160p), 10x March FY22 EBITDA and still delivering a 6.0% FCF yield.
Companies: Redcentric Plc