The Joy of Techs - Cavendish Technology quarterly sector note

£23.3bn in enterprise value has been returned to AIM technology shareholders over the past six years in the form of 51 public to private takeouts, including 10 in 2023 alone with the takeovers of Smoove* and Tribal announced in early October. With UK valuations appearing cheap and looking more attractive to potential acquirers, we take a moment to reflect on the trends of corporate and private equity bidders targeting AIM-listed technology companies going back to 2017, through the uncertainties

Morning Note – 6 September 2023

Nexteq - Strong strategic progress through H1, forecasts reiterated

In today’s H1 results, Nexteq has reported H1 revenue growth of +6% yoy to $56.3m, adjusted EBITDA +52% yoy to $7.2m, and net cash of $18.5m following EFCF of +$5.2m. Within the divisions, Quixant achieved +9% yoy growth to $34.3m, as it delivered against a strong order book with gaming shipments +13% yoy to 25.9k, and began delivery of the first mass production order of the turnkey gaming cabinets. Within Densitron, Broadcast delivered +10% yoy growth to $3.4m as existing and new customers cont

Margins climbing, cash building

Morning Note – 20 July 2023

Nexteq - Robust H1, FY23 & FY24 net cash upgrades of +4-5%

In today’s H1 trading update, Nexteq has announced revenue growth of +6% yoy to $56.3m, a continued recovery in gross margin and WC that has driven net cash to $18.5m, and confidence that trading is in line with FY23 market expectations for adjusted PBT. Within the divisions, Quixant delivered a robust +9% yoy growth to $34.3m, while a strategic focus on higher-margin products led to flat Densitron revenue yoy, including continued traction for Broadcast with +10% yoy growth. The sale of higher-m

Strong H1 margins, cash ahead

Morning Note – 27 April 2023

Margin recovery continues to build

Morning Note – 21 March 2023

Quixant - Record revenue and improved margins demand a rerating

Record FY22 results are in line with forecasts upgraded with the post-YE update, although a tax credit boosted Adj. EPS and the improved outlook and healthy cash position encouraged a higher-than-expected 3.0p dividend. Underlying markets remain robust and demand is high, while component shortages are easing to improve margins; diversification and new products (QMax-3, the turnkey cabinet solution and Broadcast products) drives growth and improves visibility. We therefore raise FY23 expectations

Diversifying with a stronger base

Morning Note – 16 February 2023

Quixant - Thoughts from ICE London

Quixant once again hosted investors and analysts at the ICE gaming exhibition at ExCel London. ICE - originally the International Casino Exhibition - has evolved to become the global gaming hub for B2B industry experts, unrivalled as the leading gaming technology event for land-based and online gaming business development and networking. QXT again had a very high profile at the event as a leading outsource hardware supplier to gaming machine manufacturers. After an excellent year of upgrades for

AFC Energy (AFC LN) - First modular ammonia cracker system

AFC has unveiled a groundbreaking modular ammonia cracker system demonstrating viable and scaleable production of hydrogen in the UK using this method. The cracker system is designed to deliver 140 tonnes of fuel cell grade hydrogen each year. Hydrogen from the plant will initially be targeted for sale into AFC’s UK H-Power Generator deployments, including those with Speedy Hydrogen Solutions. Along with the recent purchase of the mobile storage and distribution assets of Octopus Hydrogen, AFC c

Spectra Systems - Today's deal powers polymer banknotes and provides a big earnings lift

This morning's announcement that SPSY is to acquire Cartor Holdings provides the company with significant new firepower as it embarks on lucrative central bank currency bids with its powerful and innovative polymer banknote technology. Cartor is a global market leader in security printing with manufacturing sites in the UK and France, supplying a range of printed security products which are highly complementary with SPSY's core portfolio, and offering significantly enhanced capabilities in rela

CAP-XX - Tax rebate received and JV signed

CAP-XX has announced the Australian Taxation Office has approved the FY23 R&D grant and associated rebate of A$2.1m. The net proceeds of A$1.0m, after repaying the principal and interest associated with the revolving line of credit drawdown, were received by CAP-XX last week.

Solid State - Strong interim results – trading in line with FY24 expectations

The group delivered a strong set of interims, boosted by a full contribution from Custom Power (CP) and its large military contract delivery. Organic growth was over 35%, with an improvement in underlying margins, albeit with the margin mix diluted by the military contract delivered. As flagged, H1 order intake saw some customer destocking, although there may be some early signs this could be abating. Even so trading remains resilient. The outlook points to trading in line with recently upgraded

Gooch & Housego - FY23 results in-line with expectations, better cash flow

FY23 results are in-line with expectations, showing growth from strong underlying demand, coupled with improved operational delivery. Growth was seen in all three divisions. Trading is in-line with the recent upgraded FY24 forecasts. Prospects are underwritten by a strong order book and boosted by the recent acquisitions of Artemis and GS Optics, albeit with some customer destocking by certain industrial customers, offset by robust demand in growth areas. Self-help measures and the new CEO’s str

Solid State - Returning to trend growth

Solid State has confirmed the strong H124 performance, boosted by a full period contribution from Custom Power combined with the benefit of delivering the NATO contract. Despite the continuing challenges we expect organic growth to resume from the lower trend level of profit excluding the NATO uplift from H224. Following the recent 5% uplift for both revenue and PBT, FY24 guidance and market consensus estimates are unchanged.

Morning Note – 5 December 2023

Solid State - nterim results illustrate a strong trading performance; on track for the full year

Solid State is a specialist value added component supplier and design-in manufacturer of computing, power and communications products. This morning, the group has released interim results to 30 September 2023, illustrating strong growth at both the revenue and PBT levels, with the Board reaffirming confidence in meeting full year expectations. H1 2024 revenue increased by 48% to £88.1m, driven in part by a £23.4m contribution from specific contracts within defence and security, with adjusted PBT

LIBERUM: Frontier Developments: Back to basics

Initial Equity Trading Comments - 1 December 2023

PROGRESSIVE: IG Design Group: Strong profit growth, key strategy initiatives and quantified aspirations

IG Design Group delivered a 27% increase in adjusted PBT to $34.8m for H1 FY24 (to 30 September) with a significant reduction in net debt to $15.1m, as signposted in last month’s trading update. The adjusted operating profit margin was some 270bps higher at 8.6% (vs 5.9% in H1 FY23), the highest achieved since H1 FY20 ahead of the CSS acquisition. Management has provided more details on the key attributes and initiatives for its new growth-focused strategy. The group is on track to return to pre

Hybridan Small Cap Feast - 05 Dec 23

5th December 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje

PROGRESSIVE: Watkin Jones: FY23E outlook dips slightly; FY24E unchanged

Watkin Jones’s FY23E year-end trading update is broadly in line with our expectations, albeit with slightly higher costs than previously signalled but significantly better net cash and no change to the remedial works provision. Encouragingly, guidance for FY24E is unchanged, with progress in forward sales of student and private assets to institutional investors. Data from both student and private rental markets continues to show huge under-supply.

LIBERUM: Superdry*: Progress in resetting the business; tough year ahead

Hybridan Small Cap Feast - 4 Dec 2023

4th December 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje