Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SERVELEC GROUP PLC. We currently have 25 research reports from 2 professional analysts.
|06Dec16 07:00||RNS||Servelec H&SC appoints strategic advisor|
|07Nov16 07:00||RNS||Notification of Transactions of Directors/PDMRs|
|31Oct16 04:40||RNS||Second Price Monitoring Extn|
|31Oct16 04:35||RNS||Price Monitoring Extension|
|26Sep16 08:53||RNS||Holding(s) in Company|
|21Sep16 07:00||RNS||Servelec awarded National Grid Gas Framework|
|07Sep16 07:00||RNS||Servelec Plc: H1 results to 30 June 2016|
Frequency of research reports
Research reports on
SERVELEC GROUP PLC
SERVELEC GROUP PLC
N+1 Singer - Servelec Group - Interims reflect difficult H1. Outlook more positive
07 Sep 16
After well publicised delays in both Healthcare and Automation, Servelec’s Interims reflect a difficult H1. Trading since has progressed in line with revised expectations and, somewhat reassuringly, we make no change to our forecasts this morning. The outlook statement is more positive, giving some hope the delays are being resolved. We remain supporters of the medium term investment case and see today’s announcement as a positive step towards rehabilitation.
N+1 Singer - Morning Song 07-09-2016
07 Sep 16
Today’s update from Vectura is solid, highlighting respiratory royalty revenue ahead of previous expectations. The merger integration is well underway and expected to generate the targeted £10m of synergies by 2018e. We continue to forecast strong growth, propelled by mainly USD &EUR denominated royalty income from multiple products and flutiform® supply revenue. Key expected newsflow includes the US launch of LABA/LAMA drug Utibron® in H2 2016e and an FDA approval decision for VR315 (2nd to market generic Advair® partnered with Hikma) in May 2017. We continue to view Vectura as a core holding in the life sciences sector: Buy.
N+1 Singer - Morning Song 21-06-2016
21 Jun 16
The merger between Skyepharma and Vectura has created a global leader in the development of therapeutic respiratory products, with strong global partners and broad development capability across multiple formulation platforms, drug classes and delivery forms. In this report we outline the company’s three strongest valuation drivers, a selection of high-potential development programmes and the financial outlook for the enlarged group. We forecast continued strong growth in royalty income and supply revenue, and re-iterate our Buy with a new target price of 199p.
N+1 Singer - Technology SECTOR - Screening for Tech Ideas – a different approach
21 Jun 16
Whilst the majority of our work consists of the research we provide on individual companies and their respective investment cases, we thought it would be an interesting exercise to provide various screens of UK quoted technology companies using only their historical reported accounts. Whilst past performance is not always a good predictor of future performance, the track record of a business and ongoing momentum should be part of any investment analysis. We believe this note can provide a good starting point/short list for investors, catering to their different investment styles – whether their preference is growth, income (cash generation) or a mix of both. From this point, further investigation can be made on the respective investment cases of these companies.
Contract delays prompt material downgrades
15 Jun 16
In a disappointing update, Servelec has confirmed that it is suffering from procurement delays in both Healthcare and Automation. This means earnings will be significantly below previous expectations and down YoY. We downgrade our FY16 EPS forecasts by 26% and by 22% in FY17, assuming these delays persist. This essentially moves our forecasts 12m to the right. We estimate fair value at 258p (from 417p) and would expect the shares to be marked down this morning.
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.
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
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.
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.
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*.