Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on FIRST DERIVATIVES PLC. We currently have 28 research reports from 4 professional analysts.
|07Dec16 01:26||RNS||Holding(s) in Company|
|01Dec16 04:52||RNS||Issue of Equity from exercise of Share Options|
|30Nov16 12:21||RNS||Total Voting Rights|
|08Nov16 07:00||RNS||Entry into Retail Analytics market|
|03Nov16 04:21||RNS||Director/PDMR Shareholding|
|03Nov16 04:20||RNS||Director/PDMR Shareholding|
|03Nov16 04:19||RNS||Director/PDMR Shareholding|
Frequency of research reports
Research reports on
FIRST DERIVATIVES PLC
FIRST DERIVATIVES PLC
N+1 Singer - Morning Song 08-11-2016
08 Nov 16
Trifast reported another strong performance in H1 17, with adjusted PBT growth of 20%. The group’s focus on growing its share of business with multinational OEMs helped drive good organic sales growth of 4.5%, ahead of most industrial peers. This was boosted to c.15% sales growth by a six month contribution from last year’s acquisition and an FX tailwind, which also delivered a 30bp increase in adjusted operating margin to 11.4%. We have increased our adjusted PBT forecasts by 5% for FY17 and by 7% for FY18 and raised our target price from 170p to 190p. The group has also announced that Malcolm Diamond will move from Executive to Non-Executive Chairman from April 2017. This follows his long and successful track record with Trifast and reflects his confidence in the management team and prospects for the group. We share this confidence and reiterate our Buy recommendation.
N+1 Singer - First Derivatives - Moving into retail analytics
08 Nov 16
First Derivatives has formally announced its entry into the retail analytics market with news that it will be using its Kx technology as a platform to develop retail analytics solutions under a team of recently-recruited leading retail technology specialists. This move potentially opens up a significant new addressable market while providing further evidence of the attractions of Kx technology in any vertical market where there are data challenges to the provision of real-time analytics. We make no changes to our forecasts, recommendation or target price.
N+1 Singer - Morning Song 02-11-2016
02 Nov 16
NCC Group shares have fallen sharply (-43%) after the disappointing trading update in October. We are downgrading our FY’17 expectations by 13% but believe the business remains a fundamentally attractive asset. We see the problems highlighted last month as a short term utilisation issue, and expect the group to return to organic growth in FY’18, albeit from a lower base. Our conservative SOTP valuation results in a target price of 266p, offering significant upside from the current price (194p). Cyber security remains a highly attractive area of structural growth and there are limited ways to play the theme in the UK market. We see this share price weakness as a rare opportunity to gain access to the space and expect investor confidence in NCC to return in the coming months.
N+1 Singer - First Derivatives - Digital marketing showing the way for new verticals
02 Nov 16
First Derivatives delivered full year results yesterday that were comfortably ahead of our expectations, with new wins in Capital Markets and an impressive contribution from digital marketing (MarTech) driving stronger than expected growth in software (+60%) and consulting (+21%) revenues. The contribution from MarTech (+42% to £14.1m) shows the revenue potential of new vertical market opportunities and how quickly these opportunities can scale. Management confirmed that it expects to deliver positive news on the commercialisation of other verticals in the next six months. While healthy increases to our revenue estimates have not translated into similar earnings enhancement due to additional investment and higher interest and tax charges, we anticipate ongoing upgrades. We continue to view FD as one of the highest quality growth stories in the sector.
N+1 Singer - Morning Song 01-11-2016
01 Nov 16
T Clarke has uncovered financial irregularities within the accounting function of its DG Robson Mechanical Services subsidiary. From initial investigations it appears that funds in excess of £2.8m have been misappropriated by an employee over a number of years. There is believed to be no impact on the wider T Clarke Group and, if anything, historic results may have been understated by the value of the misappropriated funds. The business operations of DGR were in the process of being transferred to T Clarke’s main London M&E business, where additional control measures are already in place. This process will now be accelerated. Whilst discoveries of this nature are always disappointing, this appears to be an isolated incident, swift action has been taken and it is confirmed that the Group remains on track to meet market expectations for the year. Next scheduled news is the trading update on 17th November.
A data-driven H1 raises expectations
05 Dec 16
The first reporting period under the new D4t4 Solutions brand saw the group (previously IS Solutions) deliver good growth, leaving it well on track to meet PBT forecasts in FY 2017, and we now increase FY 2018 forecasts. The business continues to flourish from its focus on data management and analytics, enabling its international blue-chip client base to gather and gain advantage from the mass of customer data available, utilising the leading-edge Celebrus solution. Industry analysts predict 12% CAGR for the BI & Analytics market through to 2020, and D4t4 is riding this wave of demand.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
N+1 Singer - Morning Song 05-12-2016
05 Dec 16
RTHM is acquiring a profitable Canadian listed mobile specialist for equivalent of US$42.5m consideration in shares (88.235m). This helps adds to two growth vectors RTHM is targeting; (i) adds unique exclusive audience (10m unique) and (ii) Exclusive demand Yahoo and Facebook. The business has 15 premium and owned and operated apps which provide users with rewards for activity. The business is expected to deliver c$9m of EBITDA in FY18 including $2m of cost synergies. This equates to just 4.7x EV/EBITDA. This marks what we see the first step in RTHM activity to scale the business and deliver on margin potential (see our initiation notes). Our initial estimates for EPS revisions are very significant - for FY18 are 2.3 cents (currently 0.6) and for FY19 4.3 (currently 2.5). There is a call at 830 for investors and we will revise post this.
Taking a prudent road
28 Nov 16
As flagged in September, H1 2017 profit is indeed below LY; adj. PBT of £0.5m compares with £1.5m in H1 2016 as Trakm8 invests heavily in new technology and acquisition integration. Management remains confident in another very strong H2 performance and in particular is focused on closing a couple of large high-margin software-related sales which would see the group meeting the original FY 2017 expectations of £5.9m adj. PBT. However, should these fall outside the March year-end, profits are only likely to be in line with last year’s £3.9m, albeit on a growing revenue base. Prudence dictates we assume a worst-case scenario in our forecasts so that surprise is only in the upside – if the deals close in the year, the company will meet those original revenue and profit expectations.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.