Strong trading YTD; outlook cautiously optimistic
Companies: Team17 Group PLC
Caribbean Investment Holdings. Incorporated in Belize . CIHL primarily operates financial services businesses through its subsidiaries The Belize Bank Limited and Belize Bank International Limited, both located in Belize and international corporate services through Belize Corporate Services Limited. CIHL shares are also traded on the Bermuda Stock Exchange. Lord Ashcroft holds 75%. No capital raise. Due 28 April. £36m . 2019 net profit US$ 10.7m
Companies: PANR TON PRSM TAM KMK RBGP LID MERC BARK TM17
FY19 Results: In line with January trading update
Alibaba's buys a stake in Klarna; Zoom falls despite earnings beat; Improbable's losses hit £63.7m
Companies: CDM FDEV KWS SUMO TM17
Calisen Group. Potential Intention to Float. Owner and manager of essential energy infrastructure assets . Consolidated FY Dec 18 revenue £162.1m and operating profit £25.4m. Raising up to £300m in primary plus partial vendor sale.
The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m. Due 28 February
Companies: SCE MWE PMI ABC TM17 LEK FIPP ZEG EMH GWMO
Early 2020 Trading Update
Xbox Series X to launch holiday 2020
Companies: BIDS FDEV CDM SUMO TM17 KWS GFIN
MJ Hudson Group PLC, the financial services support provider to Alternatives fund managers and asset owners, is planning an AIM IPO. Deal details TBC.
Companies: TM17 AMO SPE EOG LWRF FARN MIN PTRO KDR PXS
We continue to take a selective stance on stocks within the small cap Technology space. The sector’s equity performance was lacklustre over 2019, rising 4% and keeping pace with the All-Share index (relative to multi-year periods of outperformance) as investors took a cautious stance on geopolitical and macro risk. We believe cautious sentiment is likely to dominate trade during the first half of 2020 and maintain our preference for consumeroriented players, consistent with our Arden Thematic Technology framework. Our top picks for 2020 are CDM, EVRH*, SUMO and VNET.
Companies: CALL CDM FDEV KWS SUMO TM17
Team17 reported a positive trading update this morning, after the group continued to experience strong customer traction from both new and established games throughout the second half of the year. The positive update was a result of strong customer traction and the group now expects both adjusted EBITDA and revenue to be ahead of market expectations for the current year.
Shares of Nintendo surged on Friday after the Japanese gaming company said Thursday that its second-quarter operating profit more than doubled amid strong sales for the recently launched Switch Lite device. By Friday's market close in Japan, Nintendo's stock skyrocketed 7.46%. Between the Switch Lite's launch on Sept. 20 and the end of the quarter, Nintendo said it sold 1.95 million units of its handheld-only device. Sales figures for the Switch Lite - a stripped down and lower-priced version of Nintendo's flagship Switch console - are being closely watched by the market.
Companies: BIDS CDM FDEV GFIN KWS SUMO TM17 UNG
Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.
Companies: ABBY AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CDM CSRT TIDE CYAN JET2 DEMG ELM EMR FPO FDEV GTLY GENL GHH GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KAPE KEYS KWS KCT KGH LAM LIT LOK MACF MANO MOD OXIG PCA PANR APP SRE PHC PMO RBW RMM RBGP REDD RSW RNO ROR SUS SCPA SEN SHG SOLG SOM SUMO TM17 INCE TWD TRAK TRI VNET VTC ZOO ZTF
Apple supplier Samsung Display said on Thursday it will invest 13.1 trillion won ($11bn) on facilities and research to upgrade a production line, as it battles severe oversupply due to weak global demand for smartphones and TVs. The unit of Samsung Electronics said that by 2025 it will spend 10 trillion won on facilities and the rest on research and development to produce more advanced display screens.
Companies: BIDS CDM FDEV GFIN KWS MIRI MPM SUMO TM17 TRMR
Arm, the British chip technology firm owned by Japan's Softbank Group, is joining with automakers General Motors Co and Toyota Motor to establish common computing systems for self-driving cars, an effort the companies hope will speed development of the technology. Arm supplies the underlying technology for the processors found in today's smart phones but does not make chips itself. Its ties to the automotive industry go back to the late 1990s, when automakers began to add computer chips to vehicles for functions like engine control and diagnostics.
Companies: ENET BIDS CML CDM FDEV GFIN IQE KWS SUMO TM17 TCM XPP
Amazon is in talks to bring the cashier-less technology that runs its Go stores to other retailers like airport shops and movie theatres, according to people familiar with the matter. The effort would help Amazon grow its retail presence, so the company can lower its reliance on online shopping, but at a faster pace and at lower cost than building its own stores
Companies: BGO BIDS BOKU CDM EQLS FDEV GFIN KWS SUMO TM17 TECH
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The group’s H1 trading update is reassuring, with a strong first half, pointing to a continuation of previously indicated trading patterns. Revenue and profit has been resilient, while cash flow has been strong, returning to normalised patterns having repaid PAYE and VAT and also its final dividend in September. H1 trading benefited from a strong order book heading into the lockdown and due to some delays in order intake over recent months has an order book around 7% less than last year. Management is cautiously optimistic, but still considers that the trading outlook remains uncertain, so guidance remains withdrawn. As such, we look to the December interims to resume forecasts, when order visibility will be clearer.
Companies: Solid State plc
IG Design Group’s H1 trading update for the six month period to 30 September has delivered both top and bottom line performance ahead of management expectations, driven by a strong recovery in Q2. Group revenues rose by 40% including the CSS acquisition. Excluding CSS, sales were just 8.3% down, having been down 11.7% on an LFL basis in Q1. Customer orders now exceed 80% of full year revenue forecasts. This robust sales performance has been accompanied by significant deleverage with period end net debt of $23.2m, compared with $106.1m last year. CSS is now fully integrated and focussed on delivering sales opportunities, with cost synergies ahead of schedule. While H1 performance suggests forecast risk is weighted to the upside, management prudently highlights caution on the FY21E outturn given the continuing Covid backdrop and associated risks, hence our unchanged forecasts at this stage.
Companies: IG Design Group plc
Zytronic’s year end update highlights the impact of the pandemic on the year to 30th September. Sales reduced to £12.7m (FY19: £20.7m) but, encouragingly, EBITDA for the year was positive. Cash at the year end was £14.0m (FY19: £13.1m), which has increased by £1.6m since 31st March. Uncertainty remains over demand levels, particularly within the Gaming and Financial sectors, but the Group is in a strong financial position with a strong balance sheet and well invested operations. We will reinstate forecasts as visibility improves. A further update will be provided alongside the Group’s preliminary results, which are expected to be published in early December.
Companies: Zytronic plc
Today’s announcement confirms the strong trading momentum seen in Q1 has continued YTD. Group sales are +45% YOY with revenue growth across all geographies and brands, and profitability improving YOY.
Companies: boohoo group Plc
Solid State’s post-close trading update states that, despite the coronavirus pandemic, it expects to announce revenues and adjusted profits for H121 that are similar to those for H120, which was a record first-half performance for the group. Although management notes some delays in order intake and a shortening of client order scheduling related to the uncertainty caused by the pandemic, it currently anticipates that FY21 performance will be similar to that for FY20.
Q3 figures beat expectations with a strong volume/mix and a significant acceleration in emerging markets. Even so, no return to FY20 guidance.
Companies: Unilever PLC
Reckitt reported stronger than expected Q3 20 revenue growth of 13.3%, on an lfl basis, to £3.5bn, driven by strong growth in Health (+12.6%) and Hygiene (+19.5%). Factoring in FX headwinds of 6.4pp, reported growth came in at 6.9%.
Management upgraded FY20 top-line growth expectations to low double-digit (vs high single-digit earlier) while keeping EBITDA guidance unchanged (350bp margin contraction vs FY 19). Following the strong Q3 performance, we will raise our estimates as well as the target price.
Companies: RBN RB/ RB 3RB RBGPF
Transense Technologies (Transense) is a developer and manufacturer of sensor technology and equipment. The recent transfer of the assets and licensing of iTrack IP is game changing as far as the future is concerned and leaves Transense with two existing sensor divisions, plus a royalty income stream which we conservatively forecast to grow from a current run rate of c.£0.6m pa to £2.3m in FY2023 and strong cash generation. Q1 2021 results indicate a near breakeven position and having reached an important inflexion point in its development we consider Transense to be an extremely attractive investment opportunity at the current share price.
Companies: Transense Technologies PLC
CAP-XX Ltd* (CPX.L, 4.5p/£19.9m) | Gfinity plc* (GFIN.L, 3.8p/£28.9m) | MTI Wireless Edge Ltd* (MWE.L, 44p/£38.7m) | Newmark Security plc* (NWT.L, 1.175p/£5.5m)
Companies: CPX GFIN MWE NWT
Trackwise Designs has signed a three-year product manufacture and supply agreement with a UK electric vehicle OEM. The agreement is potentially worth up to £38m in total, subject to pricing revisions, and will generate up to £5.0m in revenues in FY21. This will be the first full series production of flexible circuits incorporating Trackwise’s Improved Harness Technology (IHT). The agreement represents a step change in sales as total revenues for H120 were £2.4m, of which IHT was only £0.3m.
Companies: Trackwise Designs Plc
Trackwise Designs has developed a proprietary, proven technology, IHT, for manufacturing extremely long, flexible circuits that can replace conventional wiring harnesses. This disruptive technology is applicable to many industries including electric vehicles (EVs), medical devices and aerospace. Trackwise has already manufactured prototypes for customers in each of these sectors and received its first series production order from an EV manufacturer this September. Since IHT is an adaptation of the proven technology Trackwise uses for making advanced printed circuits, IHT has the transformative potential of a new technology but with much less risk.
For fighter pilots, it is a minimum requirement. But having 20/20 ‘visual acuity’ (correct term) does not necessarily mean you have perfect vision (as convention assumes); instead, it indicates sharpness and clarity of vision at a distance. It is measured by a Snellen Chart, which displays letters of progressively smaller size and whereby 20/20 means that the test subject sees the same line of letters at 20 feet that a person with normal vision sees at 20 feet (or 6 metres; but 6/6 simply didn’t catch on).
Companies: ABBY BDEV BWY BKG VTY CRN CSP CRST GLE GLV INL MCS PSN RDW SPR TW/ WJG
Red Dwarf, the very British sci-fi comedy franchise, ran for 11 seasons – most recently in 2017; and The Promised Land is a feature-length TV movie – out this year. Yes, the programme is an acquired taste. Strangely, too, many episodes are impacted by a virus or three (physiological, not main-frame).
Companies: WJG BKG CSP CRST MCS INL BDEV RDW GLE SPR TW/ PSN VTY GLV CRN ABBY BWY
The covid-19 pandemic has had a devastating effect on the share price of property companies, with 31% wiped off the value of their total market capitalisation during the first quarter of 2020.
Companies: AEWU CREI CSH BOOT INL HLCL THRL SUPR RESI RGL DIGS GR1T SOHO PHP EBOX ASLI UTG AGR UAI BLND UANC CAL SHED CWD WHR EPIC WKP GRI YEW HMSO PCA CCRGF NRR
Zytronic’s interims, as expected, confirm a reduction in revenue and profitability consistent with the lower level of order intake towards the end of CY19. Encouragingly, sales and order intake improved considerably in February and March. This momentum has been frustrated by the impact of COVID-19, causing supply and logistical issues as well as an inevitable drop in demand. The Board acknowledges the challenge of providing anything beyond very short term guidance. We have therefore withdrawn our forecasts at this stage and will review the situation as visibility improves. We believe Zytronic is well positioned to emerge strongly as and when demand normalises.