African Export-Import Bank a supranational financial institution w hose purpose is to facilitate, prom ote and expand intra- and extra- African trade, of its potential intention to publish a registration document, the Bank hereby confirms its intention to proceed with an Initial Public Offering. The GDRs are expected to be admitted to the standard listing segment of the Official List of the FCA and to trading on the Main Market of the LSE.
DNEG Limited intends to apply for adm ission of its Shares to the premium listing segment of the Official List of the FCA and to trading on the London Stock Exchange's main market for listed securities. The Offer will be comprised of new Shares to be issued by the Company (to raise expected gross proceeds of £150m). Admission is expected to take place in November 2019.
Companies: VRE TCM SEE SSY SDX BEG BSE OBD CPT
Registration document approved for Helios Towers. The Group provides essential network services, flexible infrastructure solutions and reliable power supply to mobile network operators in five African growth economies. Revenue increased 7 per cent. year-on-year to US$191m (H1 2018: US$178m), with Adjusted EBITDA up 15 per cent. year-on-year at US$99m (H1 2018: US$86m) for the six months ended 30 June 2019. Pricing rumoured at 115p to 145p implying valuation of up to $1.8bn. Expected Oct 2019.
Companies: SHED SSY SYS1 CBOX OMG OMG PPS RMS RNO CER RENX
Companies: SSY QFI SRB GFIN THR XSG LMS RENE OEX SO4
The Canadian IT services company CGI is acquiring SCISYS for 254.15p in cash. The offer price represents a 24.6% premium to Thursday’s closing price and values the entire issued and to be issued ordinary share capital of SCISYS at c £78.9m. In addition, SCISYS shareholders will receive the final dividend of 1.73p. The offer price translates to c 20x our FY19 earnings forecast, which falls to c 19x in FY20e and 18x in FY21e. Alternatively, the offer values the business at 1.2x FY20e revenues and 11x EBITDA.
In an in-line update, SCISYS says it has made a positive start to FY19, with all divisions continuing to expand. Consequently, we are maintaining our forecasts. Management expects FY19 performance to revert to the traditional pattern of a significantly stronger H2 after the more balanced profile in FY18. Noting management’s new goal to achieve revenue of £75m and operating profit of £7.0m by the end of FY22, we believe the stock is attractive on c 14x our FY20e EPS.
Amino Technologies (AMO): Corp Positive interim trading update | eServGlobal (ESG): Corp HS drawdown begins as its A2A business grows | Ideagen (IDEA): Corp Capital Markets Day | PPHE Hotel Group (PPH): Corp Into the FTSE 250 | SCISYS (SSY): Corp Positive start to 2019 highlights the value in the stock
Companies: AMO IDEA PPH SSY WJA
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.
Alumasc Group plc, the prem ium building products, system s and solutions group, has announced its intention to m ove from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019
Companies: ANR AMO TPG XPD SSY AAU DELT PANR THR AUTG
Anglo African Oil & Gas (AAOG): Corp Formal offer of new Tilapia licence | PPHE Hotel Group (PPH): Corp Strong start to the year | SCISYS (SSY): Corp Additional orders cement SCISYS position with the ESA | Solid State (SOLI): Corp Encouraging FY trading update
Companies: PPH SSY SOLI AAOG
SCISYS delivered another good year and slightly beat our FY 2018 revenue and earnings expectations. Adopting IFRS 15, headline revenue rose 10% YoY on a LFL basis but – driven by strong performances in the ESD, Annova and Space businesses – core Professional Services fees actually enjoyed 16% YoY organic growth to deliver a record year. Ignoring IFRS 15, SCISYS would have hit its mid-term sales target of £60m well ahead of plan and now looks to target revenue of £75m. Stripping out £1.3m exceptional costs of re-domiciling to protect Space against Brexit, the Annova earn-out and German restructuring, we see adj. operating margin edged forward to just under 9%, in line with the long-term aspiration of over 9%. Operational gearing translated that into 40% uplift in adj. FD EPS at the bottom line, while the usual healthy cashflow further reduced net debt and underpinned a 10% uplift in dividend. The outlook is for continued strong growth with the order book just short of £100m; notably the re-domiciliation triggered a raft of Space contracts totalling over €20m. We expect a significant element of low-margin 3rd-party revenue in Space this year, so we nudged forward the FY 2019 revenue forecast although earnings are unchanged. We have released FY 2020 forecasts and reiterate our 210p target price.
SCISYS reported strong performance in FY18, led by the UK-focused Enterprise Solutions and Defence (ESD) division, which benefited from a reinvigorated sales team. We expect the Space division to lead growth in FY19, following the recent spate of contract wins, while the enlarged Media Solutions division has strong potential for margin recovery. We have upgraded our revenue forecasts but maintained profits as the group needs to invest in its infrastructure to sustain growth. Noting management’s new goal to achieve revenue of £75m and operating profit of £7.0m by end FY22, we believe the stock is attractive on c 13x our FY20e EPS.
Pelatro (PTRO): Corp Thai-ing down another contract with SingTel | SCISYS (SSY): Corp SCISYS reveals a record year and order book | Sopheon (SPE): Corp Asia-Pac contract win
Companies: SSY SPE PTRO
SCISYS has released a confident trading update and we are maintaining our forecasts. Cash flow was healthy, with net debt of £3.1m slightly better than the £3.7m we expected. The order book (c £100m at end-FY18) has been bolstered by c £23m of contract wins since mid-December, of which c £8m were after the period end. The move to redomicile to an EU country before the final Brexit deal is already paying off, as c £18m of this business was only winnable if the group parent company was based in an EU country, due to Brexit. With Space and ESD showing solid organic growth, and the full benefits from the M&B/Annova merger yet to flow, we believe the stock is attractive on c 14x our FY19e EPS.
Destiny Pharma (DEST): Corp UK-China AMR £1.6m grant award | Elecosoft (ELCO): Corp FY 2018 results comfortably in line | Europa Oil & Gas (EOG): Corp And the fight goes on | Mporium Group (MPM): Corp Strategic collaboration | SCISYS (SSY): Corp FY 2018 meets guidance with strong order book at YE
Companies: ELCO EOG SSY DEST MPM
Allergy Therapeutics (AGY): Corp Trading update – strong rebound | President Energy (PPC): Corp Building critical mass | SCISYS (SSY): Corp Another contract win in Space | Somero Enterprises (SOM): Corp Trading ahead of expectations, 5% EPS upgrade | Tracsis (TRCS): Corp Acquisition
Companies: AGY SOM PPC TRCS SSY
Anglo African Oil & Gas (AAOG): Corp Funding secured to complete TLP-103C | InnovaDerma (IDP): Corp Trading update – Boots purchase order expected shortly | Proactis (PHD): Corp Board changes; trading in line | Quartix (QTX): Corp FY 2018 results in line with forecasts | SCISYS (SSY): Corp Contract wins underpin wisdom of Brexit protection
Companies: IDP PHD QTX SSY AAOG
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Following on from Capita’s announcement earlier this week, Eckoh announces it has secured a 6-year £4m contract renewal with Capita for the provision of Congestion Charge Services to TfL. Such contracts typically consist of minimum guarantees and volume related elements. Given the far greater reach of the LEZ and ULEZ and their 24/7 operating times, we imagine volume related elements could mean the contract ends up significantly in excess of the £4m mooted today over time. The high repeat revenue element of Eckoh’s UK business has helped it weather lockdown headwinds, with revenues and profit in April/May at comparable levels to the prior year. Today’s announcement is further validation of both repeatability and the ability to upsell in its highly cash generative UK business.
Companies: Eckoh Plc
Amino has reported reassuring interims in line with the June trading update, confirming 10% revenue growth to $38.0m, including 24% organic growth in software and services, now 26% of group revenue. The July 2019 acquisition of 24i Media accelerated delivery of the January 2019 strategic shift towards software, delivering improved earnings quality from diversification as gross margins from integrated devices hold steady. With 24i moving to a positive contribution of $0.2m (1H19: $-0.2m), the group is positioned well to benefit as visibility of orders and sales pipeline supports FY20 (November y/e) expectations. Management is understandably cautious around the impact of potential COVID delays to customers and the supply chain, but the group remains well supported by a strong balance sheet with net cash of $2.1m, including gross cash of $4.3m and headroom of $13m of undrawn banking facilities. Forecasts are unchanged save for adjustment to FCF expectations to accommodate changes in credit terms, still leaving FY20 net cash of $8m. With the long-term prospects for Amino shining brightly as demand for both platform and content provider solutions is accelerated by COVID, we reiterate our 215p target.
Companies: Amino Technologies Plc
We believe Amino’s H1 20A results demonstrate the resilience of the business and the benefits of the ongoing move towards a software-led business model. 24i continues to perform strongly, supported by stable profits (EBITDA) in the Amino segment. Both recorded a number of new contract wins during the period. The group also reported a significant improvement in revenue quality and the business remains underpinned by a solid financial position. We leave underlying forecasts unchanged following the announcement, however with the global COVID-19 pandemic ongoing, uncertainty on the H2 20E outlook clearly remains.
SDL delivered a better than forecast H1, outperforming sales and AOP estimates. Revenues moderated by just 1% to £180.7m, with AOP up 1% to £16.3m. Increased demand from strongly performing verticals (Online Retail, Technology) has offset declining volumes from CV19 impacted sectors (Leisure, Travel, Automotive). KPIs continue to move in the right direction, with ARCV rising 7% y/y, and Linguistic Productive Utilisation stable at 67%. The Group delivered 60 new technology customer wins in H1, and we remain excited by the new SLATE solution launch, enabling the Group to target the $10bn ‘ad-hoc’ market with a market-leading, highly-automated solution. Sales, AOP and Adj FCF were ahead of N1Se estimates by 1%, 9% and 15% respectively supported by strong cost control and cash management. We upgrade our FY’20E AOP forecasts by 23%, with FY’20E adj FCF rising 41% to £24.7m. Adj FCF (pre IFRS16) of £31.5m represents an 8% FCF yield at current valuation.
Companies: SDL Plc
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
Gamesys Group’s interim results reporting pro forma adjusted EBITDA growth of 17% exceeded consensus expectations, demonstrating the strength of its strategy of growing the player base responsibly, while aiming for a high player retention rate. The improving financial position has resulted in the introduction of a new dividend (company commentary implies 36p/share for FY20) earlier than anticipated by us and consensus. We have increased our FY20 EBITDA forecast by 7.8%.
Companies: Gamesys Group Plc
This morning's update from PEN reflects (1) good progress with the order book standing at £36m (up 9% vs. the year-end number cited in PEN's May 22nd business update, (2) a very creditable figure of £1m annualised cost savings, and (3) net cash at £2m, reflecting positive working capital movements and strong disciplines. In terms of net cash, this represents a £4m turnaround, which we view as an extremely positive result. This morning's news follows on from last month's conversion of the first tranche of the contract towards which PEN received a Statement of Intent back in February. Encouragingly, despite the difficult general situation, the company expects to make a profit in the second half, and sees a good flow of opportunities across both the training simulation / emulation equipment and the pure software sides of its business.
Companies: Pennant International Group Plc
With today’s sale of Enterprise software for £5m cash, SmartSpace completes its transition to a fast growing SaaS business focused on meeting room and visitor management for the SME market. The new focused business has modest burn and is amply funded for many years to come (pro forma net cash c. £5.7m). SMRT also updates today that strong (c. 80% yoy) SwipedOn growth has continued in July and that the first SoftCat reseller Space Connect deals are coming through. We detail below our long standing belief that the constituent businesses could be worth well in excess of the current market capitalisation of £17m. We see a long runway ahead for SMRT which presents an opportunity for a stock that is still largely off the market’s radar.
Companies: Smartspace Software Plc
In June we wrote that ACT was approaching a “turning point” and we believe today’s announcement marks that turning point. Having pivoted to offering an “audit” product sold via Professional Services early in the year, and having been name-checked in BCG and Verizon’s White Paper addressing the need for a robust remote working ecosystem, today’s contract means that Verizon can begin actually selling. We anticipate sales cycles reduced from >24 months to just 1-2 months and suspect the substantial Verizon sales force and customer base means that this contract is capable of generating several million $ revenues p.a. for ACT in due course.
Companies: Actual Experience Plc
The group is another winner of the pandemic. The industry’s faster transformation from offline to online has helped the group to gain 2.7m additional customers in the last three quarters (vs. +1.9m in FY2019), thus, the strong customer acquisition has resulted in an impressive 17% top-line growth for the 10-months to 30 June (+10% yoy in Q3 20).
However, the increased costs related to the pandemic have weighed on the group’s margin, and we believe this will continue in the near term.
Companies: ASOS 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
Following PTY's announcement on July 20th of a £30m revenue outcome to H1-20E, coupled with a modest profit and net cash on the balance sheet, we view this week's REACH announcement of a new win for a strategic partnership that the company has entered with CyberGym as encouraging. The group has succeeded in placing its partnership venture in the vanguard of defence training by winning a place on the Norther Ireland Co-operation Overseas (NI.CO) Cyber Security Training Services Framework (NI.CO CSTSF). This is part of the overall NI.CO (Northern Ireland Co-operation Overseas) framework which is valued at £2bn-plus.
Companies: Parity Group Plc
Interims reveal a robust trading period, with sales holding up better than expected, meanwhile costs have been carefully managed. As a consequence, we lift FY20E sales by +3% and adj. FCF (ex. s/w settlement fee: £8.1m) from £2.1m to £4.4m. We leave FY21E numbers essentially unchanged. Headline numbers reveal -4% sales decline (-6% organic), meanwhile AOP grew +5% to £6.6m. As expected, Covid principally impacted Education Services (sales: -17%) but by less than expected. Also, revenue ‘lost‘ should be recovered as schools reopen. SIS sales were steady (+1%), as TRB benefitted from high recurring sales and its established customers. TRB also added to this base, with two new wins – demonstrating SITS continues to sell. The first Tribal Edge module is off to a good start – all 12 Australian HE customers separately took ‘TCSI‘. The second module (‘Admissions’) is due in H2 - we see the backdrop as favourable, anticipating high demand for international students – a challenge this product can help satisfy. More broadly, Covid could be an accelerant for Tribal Edge – as it allows universities to modernise and reduce costs as they are forced to adapt to potentially lower student numbers and tuition fees.
Companies: Tribal Group Plc
Companies: Totally Plc
Gaming Realms is a creator and licensor of innovative games for mobile, with operations in the UK, U.S. and Canada. Through its unique IP and brands, Gaming Realms brings together media, entertainment and gaming assets in new game formats.
Companies: Gaming Realms Plc