Netflix is raising another US$2 billion in debt to fund additional content creation and other expenses, the company announced on Monday. The company routinely raises debt to help fuel its growing library of original TV shows and movies. The streaming giant offered US$2 billion in new debt in April after issuing another round of notes several months earlier. Netflix said it plans to use the proceeds to fund "Content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.". We’re unsurprised and anticipate the competition will also up their game to capture market share – all the better for the localisation market.
Companies: 7DIG KAPE ZOO AMO AVST CNS DFX ECSC FLX IGP NCC OSI MIRA
Cloudflare, a California-based digital content delivery and Internet security company, raised its IPO price range this morning from a prior $10 to $12 interval to $12 to $14 per share. At its new prices, Cloudflare would be valued between $3.5 billion and $4.1 billion. Cloudflare's maximum IPO fund raise is now $563.5 million. Investors’ appetite for cloud offerings appears to remain robust. Ex- Oculus founder, Palmer Luckey’s new business, Anduril Industries, is building a virtual wall on the southern border of the US. His new venture is being valued at more than $1 billion in a new fundraising round, according to sources. Anduril describes itself as a company that "Invents and builds technology to secure America and its interests.". Virtual border controls feel like a natural evolution of physical barriers for a digital era. The Tokyo Game Show, Japan’s video gaming mega-conference, opened on Thursday with enthusiasts testing how ultra-high-speed 5G mobile data networks will impact the gaming experience ahead of the technology's commercial rollout in Japan in 2020. Game makers, related network developers, and esports promoters cite expect to benefit from nextgeneration wireless networks that are expected to allow players of increasingly popular online games to utilize faster downloads and smoother connections. 5G’s influence is only beginning to rise as coverage is rolled out.
Companies: CDM FDEV KAPE KWS SUMO TM17 AVST BIDS CNS DFX ECSC FLX GFIN IGP NCC OSI SOPH
Alan Howard’s push into crypto is a badly kept secret that appears to be crystallising into reality. In our view, the crypto space has undergone a very interesting transition from rampant retail speculation to, well, rampant retail speculation underpinned by a broad base of institutional interest. Google search volumes have fallen, transaction sizes appear to be escalating and the latest wave of equipment upgrades suggest consumer interest and potential to participate is now very low. Meanwhile, increased macro risk, currency controls and privacy concerns may be fuelling increased interest. We await further signs of whether we are at a turning point or whether this is (another) flash in the pan. Apple’s woes appear to be mounting as the group undergoes a difficult transition from a lifetime of focus on aesthetically pleasing hardware with a highly refined user experience, to a services focus. On one hand, the group’s key product the iPhone (which accounted for most revenues until very recently) is rapidly entering commoditised territory. Consumers have the option of a powerful and near fully-featured £160 generic Android handset or a cutting-edge iPhone for £1,000; for many, the choice is a simple one. The supply chain woes of having massive exposure to China in the context of the US-China trade war is also likely to weigh heavily on short term strategy. On the other hand, the group’s services are consumer focused and face strong competition from the likes of Amazon, Spotify, Microsoft and Netflix. If the thesis was to build the services on a firm foundation of the Apple hardware base, the cracks in security are worrying.
Companies: KAPE ARB AVST CNS DFX ECSC FLX IGP MMX NCC OSI SOPH TECH TEK
VMware said on Thursday it bought two providers of cloud security and cloud developer services in separate deals valued at about $5 billion, as it expands offerings for corporate clients. VMware bought Pivotal Software Inc in a $2.7 billion deal. Separately, VMware said it would buy software maker Carbon Black Inc for about $2 billion in cash.
Companies: CALL KAPE AVST CNS DFX ECK ECSC FLX IGP LOOP NCC NET OSI SOPH
Tencent shares slumped as much as 3.88% on Thursday after the Chinese technology giant missed analyst expectations, despite beating forecast on earnings. Revenue rose 21% year-on-year to 88.82 billion yuan. Profit attributable to shareholders beat analyst forecasts, rising 35% year-on-year to 24.14 billion yuan. The company's gaming division returned to growth, posting revenue of 27.3 billion yuan, up 8% year-on-year, with mobile games performing particularly well.
Companies: KAPE AVST BIDS CDM CNS DFX ECSC FLX FDEV GFIN IGP KWS NCC OSI SOPH SUMO TM17
British Airways said its flights were returning to normal after passengers had to endure cancellations, delays and long queues at London airports as the airline suffered its third major computer failure in a little more than two years. More than 60 flights to and from Heathrow and Gatwick were cancelled and more than 100 were delayed, according to the departure boards at the two airports.
Companies: KAPE AVST CNS DFX ECSC FLX IGP NCC OSI SOPH SWG
Capital One announced on Monday that a data breach identified earlier this month exposed personal information of its customers, including social security details and bank account numbers. The Virginia-headquartered bank said in a news release that about 140,000 Social Security numbers of its credit card customers and around 80,000 linked bank account numbers were compromised. In total, Capital One said, "This event affected approximately 100 million individuals in the United States and approximately 6 million in Canada." Qualcomm and Tencent said on Monday they will cooperate on projects that could include making the Chinese company's videogames play better on devices with Qualcomm chips, and create a 5G version of a Tencent-backed gaming phone. Microsoft yesterday announced the acquisition of BlueTalon, a start-up whose software can prevent people from accessing certain high-value data that companies keep. Over time, the acquisition could help Microsoft's campaign to get companies feeling more comfortable with the idea of keeping sensitive data in its Azure public cloud, which competes with Amazon and other companies.
Companies: KAPE AVST CNS DFX ECSC FLX IGP NCC OSI SOPH BIDS CDM GFIN FDEV KWS SUMO TM17 SWG
The Senate Banking Committee on Monday released the testimony of David Marcus, the head of Facebook's cryptocurrency projects ahead of his testimony Tuesday. In his prepared remarks, Marcus perfectly outlines the business model behind the social network’s upcoming Libra digital currency and its Calibra digital wallet. Microsoft might be the primary competitor for Slack, but the widespread adoption of Microsoft's software is not a major problem for Stewart Butterfield, co-founder and CEO of the messaging app. Last week, Microsoft said Teams had more daily active users than Slack. Cybersecurity company Symantec Corp has walked away from negotiations to sell itself to chipmaker Broadcom over price disagreements, people familiar with the matter said on Monday. Symantec's decision raises new questions over the future of the US antivirus software provider, which is looking for a new CEO and has been struggling to grow its business serving companies.
Australia's top three banks said on Thursday they have agreed to partner with IBM and shopping mall owner Scentre Group to test blockchain technology to digitize bank guarantees. The companies are exploring how to move away from paper-based bank guarantees to cut processing time and the risk of fraud, Australia and New Zealand Banking Group, Westpac Banking Corp and Commonwealth Bank of Australia said in a statement. The US government said on Wednesday it was reviewing licence requests from US companies seeking to export products to China's Huawei "Under the highest national security scrutiny" since the company is still blacklisted. In an email to Reuters, the Commerce Department said that as it reviewed applications, it was applying the "Presumption of denial" standard associated with Entity Listed companies, meaning applications are unlikely to be approved. Symantec shares surged more than 20% in extended trading on Tuesday after Bloomberg reported that Broadcom is in advanced talks to acquire the security software vendor. The deal is reported to be worth more than $16bn, implying an EV/Sales multiple of 3.40x (Bloomberg). Agreement on a deal was close but could be delayed until after the July 4 holiday, according to people briefed on the move.
Companies: KAPE AVST CNS DFX ECSC FLX IGP NCC OSI SOPH TECH AMO IQE SWG
Companies: KAPE AMO IQE AVST CNS DFX ECSC FLX IGP NCC OSI SOPH
Renalytix AI—developer of artificial intelligence ("AI") decision support and clinical management tools for improving early diagnosis, continual monitoring and drug development for kidney disease. incorporated in March 2018 as a subsidiary of EKF
Diagnostics Holdings (AIM-EKF). Total fundraising in the range £21 - 25 m. Mkt cap - c. £67.5- £71.0m. Due 2 Nov.
Finncap—proposed acquisition of M&A adviser Cavendish Corporate Finance and AIM admission. Offer TBA
Kropz PLC—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. Looking to join AIM, offer TBC, market cap TBC.
Due Late October.
Azalea Energy—oil and gas production and development company based in Louisiana, United States. Net production of 13 MMcfe/D (2,200 boepd) and total 1P proved reserves of 91 Bcfe (15.1 mmboe), 2P reserves of 111 Bcfe (18.5 mmboe) raising up to $38m, expected mkt cap over $100m. Due 29 Oct
Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22
kilometres south of Hannover in Germany. Seeking £10m raise. Due late Oct Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber
security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.
Companies: EMH CRA GYG ALBA FRR DFX EUZ SSTY APF INX
CentralNic-Schedule 1 from the business operating in proprietary retail platforms selling domain names and associated web presence services including hosting and email on a subscription basis, has acquired KeyDrive S.A which constitutes a RTO. Raising £24m at 52p, combined market cap of £88.7m
Trackwise—established business that manufactures specialist products using printed circuit technology. Offer TBA. Due Late July
Ovoca Gold (to be renamed Ovoca Bio PLC) - RTO of IVIX, a Russian com pany developing a drug candidate for the treatment of female sexual dysfunctions. No monies to be raised, market cap of £8.5m, due 30 July
Nucleus Financial—independent wrap platform provider . FYDec17 revs £40.36m and PBT of £5.1m. Offer TBA. Due late July.
Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa
Companies: SKIN SDL DUKE FIF DFX IDE CIP CNIC PHC
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
Companies: SAR SOLO DFX THR SFE AVG AEG GWI AGY
Management said a number of factors will contribute to the news the Group is likely to report a loss this year.
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. | Wilmcote Holdings plc—Sch1 from the Company established with the objective of creating value for its investors through the acquisition and subsequent development of target businesses in the downstream and specialty chemicals sector. Offer raising £15m at 120p with market cap of £25m. Expected 17 August 2017 | Andes Energia PLC—Sch1 on admission the Company will change its name to Phoenix Global Resources plc will be an Argentinian independent oil & gas exploration and production company, offer TBC but market cap to be £844m and admission date 10 August 2017 | Verditek PLC—Sch1 update from holding company in the clean technology sector with subsidiaries operating within what it considers are emergent and fast growing sectors (industrial treatment of solids, air purification, water de-odourisation, zero emission, low cost energy), offer raising £2.75m at 9p with market cap of £16.9m. Admission 10 August 2017 | Strix Group PLC—Sch1 from the Company involved with the design, manufacture and supply of kettle safety controls and other components and devices involving water heating and temperature control, steam management and water filtration. Offer raising £190m at 100p with market cap of £190m admission date 8 August 2017. | Xpediator Plc—Sch 1 from the holding Company for an integrated freight management business operating in the supply chain logistics and fulfilment sector across the UK and Europe with a strong presence in Central and Eastern Europe. Offer details TBC, expected Admission early August 2017. | Altus Strategies—African focused natural resource Company. Offer raising £1.1m at 10p with market cap of £10.7m. Expected 10 August 2017 | Hipgnosis Songs Fund investment Company offering pure-play exposure to Songs and associated musical intellectual property rights. Offer raising £200m at 100p. The Company has decided to extend the closing date for the Placing, Offer for Subscription and Intermediaries Offer to 1 August 2017. The Company may bring forward this closing date at any time. Admission 15 September 2017
Companies: DKE PTSG C21 TRT IRR RLD NET DFX OXB SYME
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LoopUp recently unveiled a major extension to its ambitions – the group is aiming to become a leading global provider of telephony “inside” Microsoft’s Teams product. The opportunity is clear and growing, as enterprise customers look to use Teams for “normal” external phone calls, and LoopUp seems well placed to deliver a differentiated offering using its existing infrastructure and knowhow. In this document we provide an overview of the new platform and explain its strategic significance.
Companies: LoopUp 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
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
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
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
IMImobile delivered strong FY’20 results, with growth seen across all regions. Gross profit rose 26% y/y to £79.1m, with EBITDA +13% y/y to £21.6m. Cloud communications gross profit rose +15% y/y on an underlying basis, with Europe (+12% organic) a key driver. Post-year end, Q1 saw resilient performance in cloud communications gross profit (+30% y/y, organic: broadly flat) whilst management have noted an activity uptick from hardest hit verticals as of the end of May. We reintroduce forecasts, looking for gross profit of £103.8m by FY(Mar)’23E (+9% 3-year CAGR). EBITDA margins are forecast to expand by 230bps, driving FY’23E FCF to £15.1m (an 8% yield at current valuation). A peer-based multiple valuation approach, plotted against 3-year sales growth, values the cloud communications business alone at 375p – 470p/share.
Companies: IMImobile Plc
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
What’s new: Rightmove interims show 6.0% YoY fall in agent branches to 15,727 (June 2019: 16,768; June 2018: 17,585): 3.5% fall YTD. Over the past two years while Rightmove lost 1,858 branches, OnTheMarket gained 1,619 exclusive branches, many of which are encouraging others to leave Rightmove.
Companies: OnTheMarket Plc
Beeks Financial Cloud announced interim results for the period 31 December 2018 showing revenue up 36% to £3.5m and gross profit up 43% to £1.7m, with gross margin up to 49%. Beeks enjoys high levels of subscription based revenues, with annualised committed monthly recurring revenue up 26% to £7.5m. Institutional client revenues are around 90% of the total with around 99% of revenues of a recurring nature. We forecast FY19E revenue growth of 37% to £7.6m, slightly below our previous forecasts due to the timing of deployment of recent new, larger institutional client business. The sales pipeline is strong with the number of institutional clients increased to 210 in the period. Beeks achieved a milestone in December 2018 by signing its first Tier 1 institutional client, with more targeted in the sales pipeline.
EMIS has made good progress in a number of areas in FY19: it completed a restructuring programme, sold the Specialist & Care business, and was successfully appointed to GP frameworks in England and Scotland. The company continues to invest in developing the EMIS-X platform to support the growth of both the Health and Enterprise divisions. The group reported FY19 results slightly ahead of our forecasts, with revenue growth of 6.5% and adjusted EPS growth of 13.4%. We have taken a more conservative approach to forecasts to reflect short-term risks to new business while the NHS focuses on dealing with the coronavirus crisis.
Companies: EMIS Group Plc
When in doubt about pandemics, ask an expert. One of the best being former FDA Commissioner Dr Scott Gottlieb (non-exec director of Pfizer & Illumina), who has been calling for widespread COVID-19 workplace testing for some time. Today came news that there is now one such test available for all American businesses, freelancers, ‘gig’ workers &/or sole traders. This new tech-enabled solution is powered by CLSU’s ClearContact, ClearID and Virtual Badge (strategic partnership) applications, in conjunction with Clinical Reference Laboratory’s (CRL) expertise in blood/antibody & saliva tests.