4imprint Group - Further progress in Q323

4imprint’s Q323 trading update indicated further good growth, albeit moderating against comparatives getting tougher as the year progresses. Full year revenue guidance is maintained at ‘slightly above’ $1.3bn, with continuing high returns on marketing spend prompting a $5m uplift in PBT guidance to ‘not less than $130m’. 4imprint’s underlying markets reflect US corporate economic health, with any downside mitigated by the prospect of carrying on building market share as less well-funded firms st

4imprint - Growing profits, forecast upgrades; cash very strong at $US95m

This morning's FY23E 10-month update from FOUR highlights revenues in line with expectation as we approach the last portion of the year, but margins warming again, resulting in PBT upgrades of c.5%, to just above c.$US130m. FOUR uses intelligent data to drive highly effective marketing of merchandise to medium sized North American companies. Against tough FY22A comparators, we view these new upgrades as particularly creditable. Cash is strong – a reminder that this remains a highly cash-generati

Morning Note – 7 November 2023

LIBERUM: 4imprint Group: Margins drive upgrades

4imprint - Higher margin drives FY 2023E upgrade

4imprint has confirmed that FY 2023E revenue is still expected to be slightly above $1.3bn (up +15% on 2022) but that PBT is expected to be not less than $130m, up from previous guidance of $125m. We have upgraded FY 2023E EPS by +4%, having raised our FY 2023E operating margin forecast from 9.4% to 9.7%. Management has highlighted some evidence in recent weeks of softening demand patterns typical of a more cautious macro environment, and a reminder that weaker market conditions have previously

LIBERUM: 4imprint Group: Confidence in delivery

4imprint (FOUR) - Excellent sales, profit and cash generation, model continues to drive strongly

Highly encouraging results from FOUR this morning add significant colour to last week's update from the company, with operating profit, PBT and EPS all ahead by 45% or more YoY on revenues up 23%. Net cash at $US74.5m reflects strong underlying trading as well as a working capital unwind from the '22 year end as supply chain conditions eased – a conversion rate of 152%. While still holding a mere c.5% of its $20bn-plus addressable market, FOUR remains a significant player in the US promotiona

4imprint Group - Record H123 customer demand

4imprint’s interim results reflect the narrative at last week’s trading update, being strong underlying demand, an uptick in gross margin as the supply chain bottlenecks ease and strong returns on each dollar of marketing spend. Having upgraded following the update, we have now ‘tidied up’ our modelling for FY23 and FY24. With the buy-in of the legacy defined benefit pension and the accelerated recovery contributions, plus payment of the special dividend, we expect 4imprint to end FY23 with net

Morning Note – 9 August 2023

4imprint - Uncomplicated, unchanged, highly effective growth strategy

4imprint has reported a strong set of H1 results with sales up +23% and PBT up +50% supported by customer demand at record levels and an improvement in gross and operating margins. The Group’s growth strategy is uncomplicated, unchanged and highly effective – increasing market share (c.4.3% at the end of 2022) in the large, fragmented North American promotional products market (worth c.$26bn). 4imprint’s marketing, customer support and supply chain management skills are at the heart of its long-

4imprint Group

4imprint – Continuing to dazzle; encouraging update sparks 10%-plus upgrades

Ahead of H1 results due on August 9th, yesterday morning's intra-day update from FOUR provides yet further evidence of how strongly the business is performing, highlighting strong trading and pre-results upgrades. YTD order intake is said to be up 18% YoY, suggesting FY orders could exceed 2m. Revenues at “slightly ahead” of $US1.3bn and PBT of $US125m-plus for the full year are ahead YoY by c.15% and >20.5% respectively. Next week's results will reveal more detail; however we expect that th

4imprint Group - Strong order intake and upgrades

Ahead of 4imprint’s interim results, scheduled for 9 August, the company has issued a half-year trading update indicating performance running well ahead of market expectations for the full year. This is in terms of volumes, gross margin, profitability and cash. The May AGM statement had also been very positive, but there was greater uncertainty at that time whether the buoyant conditions would persist and we held our forecasts. We have now lifted our revenue and earnings estimates for FY23 and F

4imprint - Continuing to dazzle; encouraging update sparks 10%-plus upgrades

Ahead of H1 results due on August 9th, this morning's update from FOUR provides yet further evidence of how strongly the business is performing, highlighting strong trading and pre-results upgrades. YTD order intake is said to be up 18% YoY, suggesting FY orders could exceed 2m. Revenues at “slightly ahead” of $US1.3bn and PBT of $US125m-plus for the full year are ahead YoY by c.15% and >20.5%, respectively. Next week's results will reveal more detail; however, we expect that the excellent progr

4imprint Group

Allenby Capital: Mirriad Advertising plc: Update

Mirriad Advertising plc (MIRI.L) is a leader in virtual product placement (VPP) and in-content advertising technology and services, dynamically inserting brands and products into video content. It provides new revenue opportunities for content producers/media companies and is proven with consumers to be significantly more effective and less intrusive than traditional formats. After several years of heavy investment, Mirriad is moving from market building to a growth phase. This should accelerate

Team Internet Group - Diversity delivering resilience

Team Internet’s results for the nine months to 30 September 2023 (9M23) showed good, continued progress, with revenue, adjusted EBITDA and adjusted EPS growing 16%, 11% and 28% y-o-y. Online Presence continued its return to form, with 20% growth over the period. While the weak advertising market and a strong comparative period was reflected in a moderation in growth in Online Marketing (15%), this still implies outperformance of the overall market. Management expects full year results to be at l

Team Internet Group - Name change shows clear strategic focus

Team Internet, formerly CentralNic Group, is a diversified UK software company operating through two businesses, Online Presence (internet domain purchasing) and Online Marketing (monetising online traffic). The group marked its name change at a recent capital markets day, where it discussed its evolution from a domain specialist into a broader online platform enabler, facilitating connections between consumers and businesses. Since starting Online Marketing in 2019, the division has become the

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

Team Internet Group (TIG LN) - 9M2023 results

Team Internet delivered 16% revenue growth, well ahead of peers. Online Presence grew faster than Online Marketing as the popularity of alternative domains continued to grow and whilst the digital advertising market remained weak.

Headwinds persist, yet green-shoots emerge

Headline trading to 23rd April was in-line with expectations and highlights continuation of existing trends, with weak industry-wide digital advertising spend partially offset by resilient performance in Print. Group revenues fell 6% y/y, with Digital down -15%. In Digital, alongside the weaker advertising spend backdrop, a shift by Facebook towards short-form video/ reels and away from digital news has impacted traffic referrals to Reach we continue to see some muted structural risk to traffic

Brave Bison - Underlying Performance Reassuringly In-line

Brave Bison has released its interim results for the period ending June 2023. The update shows the SocialChain integration has been materially completed, with synergies mostly realised and new client wins taking place as a combined business. Gross revenue increased 15% YoY to £16.9m and net revenue increased 23% to £10m, both driven primarily by the new contribution from SocialChain. Adj EBITDA increased by 20% to £1.9m and Adj PBT increased 16% to £1.5m, both in-line with expectations. We have

Team Internet Group - More diverse, international, integrated

Team Internet (previously CentralNic) marked its 10-year anniversary of being listed with a name change and a capital markets day. Both reinforced the company’s transformation into a diversified digital marketing platform group. The group consists of a network of people, technologies and tier one partners focused on creating successful connections between consumers and companies online. We believe that this strategy and platform provide a resilient foundation for Team Internet to continue to gen

PROGRESSIVE: STV Group: Weak economy, strategy on track

News that economic pressures are impacting on STV’s trading is perhaps not surprising; we reduce estimates in line with updated guidance. The update underlines the value of STV’s ongoing diversification across Digital and Studios, with continued strategic progress in these areas. The group financial position remains sound, valuation remains modest even on lower estimates, and we continue to expect a return to good overall growth, driven by Digital and Studios, once the UK economy stabilises.

Eagle Eye+ (EYE, House Stock at 495p) - The smooth flight continues - FY24F on track

Morning Note – 17 August 2023

Cenkos: Jaywing Plc -- Full year results

This morning, Jaywing reported full-year results. The macro backdrop continues to place pressure on clients budgets and consequently, revenue declined (5.4)% YoY but marginally ahead of our revised forecast (+0.3%). Despite the YoY reduction in revenue, Adj EBITDA rose by 9.2% and 3.7% ahead of our forecast, underpinned by cost management and efficiency improvements. In our view the current rating (3.3x FY24E PE and 4.5x FY24E EV/Adj EBITDA) does not reflect the progress made in rationalising Ja

Tremor - Q3 EBITDA +4% ahead, new $20m buyback planned

Tremor has announced Q3 net revenue growth of +18% yoy to $76.6m, Q3 adjusted EBITDA +4% ahead of consensus, and plans to buy back an additional $20m of shares. Q3 net revenue is in line with Q3 consensus of $76.5m, with the Programmatic division driving the group with net revenue growth of +23% yoy to $74.2m. After successfully realising $65m of annualised synergies from the Amobee acquisition at Q2 23 results, strong cost control has delivered Q3 adjusted EBITDA of $21.3m, which is +4% ahead o

FY'22: Controlling the controllable

Reachs prelims are consistent with the January update, with revenues of £601m (-2% y/y) and AOP of £106m (-27% y/y). Positive underlying progress was offset by programmatic headwinds in 2022; a trend reflected across global ad leaders where growth decelerated by 15-40pps y/y. This, coupled with anomalous energy/Print material costs and wage inflation put pressure on the content industry as a whole. In this context, a stable top-line and profit margins of 18% (FY21: 24%; FY18: 20%) look resilient

PROGRESSIVE: Kape: Charging forward into 2023

Kape’s trading update for the year ended 31 December 2022, issued today, shows that it has been a year of considerable progress and achievement at both operational and financial levels. Pro forma Adjusted EBITDA is expected to be ahead of guidance, with revenue at the top end of guidance. ExpressVPN integration has also exceeded expectations. With a restructured balance sheet and considerable financial firepower, Kape looks set to continue its growth charge forward into FY23 and beyond.