The Mission Marketing Group (TMMG.L) | Rex Bionics (RXB.L) | Frontier Developments (FDEV.L) | W Resources (WRES.L) | Netscientific (NSCI.L) | President Energy (PPC.L) | CPP Group (CPP.L) | Eagle Eye Solutions Group (EYE.L) | Dorcster (DAR.L) | Avesco (AVS.L)
Companies: TMG RXB FDEV WRES PPC EYE ESC AVS NSCI
Avesco’s trading update outlines continued strong trading over the summer at Creative Technology in the US and at the Rio Olympics and Paralympics. FY16 results (to end September) will be “comfortably” ahead of previous expectations. Positive momentum continues into FY17, when a good schedule of sporting and commercial events, along with currency benefit, will buoy what would normally have been a weaker, odd-numbered year. With a rising dividend and asset backing, the valuation multiple remains
Companies: Avesco Group
A good H116 from Creative Technology, particularly in the US, underpins our maintained profit forecast for the full year. Avesco’s FY14 restructuring is clearly delivering on the promise to smooth results between odd and even years, while the recent sale of Fountain Studios has realised cash to pay down debt and increase targeted investment in equipment. With a progressive dividend, a discount to net assets and a very modest multiple, the group is an attractive and coherent investment propositio
FY15 results were ahead of forecasts, with particularly strong performance from Creative Technology (CT) in the US and with CT Europe getting a boost from the European Games in Baku. FY16 should benefit from the UEFA European Championships and Rio Olympics. Growth of corporate revenues and the migration of Presteigne to dry hire only are helping to even out swings between odd and even years, with the ‘odd’ FY15 outperforming previous ‘even’ highs. The Fountain Studio sale will further bolster th
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Kape has announced the sensational acquisition of ExpressVPN, a well-respected rival, for a total consideration of $936m, payable in cash and shares, subject to conditions. The dramatic move doubles Kape’s subscriber base (to c. 6m), delivers significant earnings accretion and marks another tour de force moment for the Group and its shareholders (following on from PIA in 2019 and Webselenese in 2021). Completion is expected to occur in Q4 2021. ExpressVPN represents a bullseye for Kape’s acquisi
Companies: Kape Technologies Plc
As expected, the digital privacy and security specialist has delivered a strong performance in H1 FY21A immediately ahead of its blockbuster acquisition of ExpressVPN, with revenue growth of 62% to $95.5m and adjusted EBITDA growth of 75% to $28.7m (materially consistent with the trading update issued on 20 July 2021). Such impressive trading reflects a circa four-month contribution from Webselenese as well as higher organic revenues for both the privacy- and security-based software solutions. P
Companies: M&C Saatchi plc
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
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Reach’s interims were strongly ahead of SCM estimates for H1 sales and EBITDA, by 5% and 4% respectively. Digital sales (23%/revs) grew 43% y/y to £69m supported by 150% y/y growth in unique registrations to 6.7m, whilst underlying Print decline decelerated to just -5% y/y (H2’20: -18%; H1’20: 20%) as weaker comparatives were lapped. The Group has posted positive sales growth for the first time in a number of years, rising +3% y/y (like-for-like) to £302.3m, and delivering AOP of £68.9m (Margins
Companies: Reach plc
S4 Capital has reported hugely impressive H1 results that were ahead of our expectations. Gross Profit almost doubled to £236.7m, comfortably ahead of DCe and company budgets. LFL growth in the 'super strong' half was +49%, with an acceleration from +33% in Q1 to an astonishing +66% in Q2 against the CV19 trough comparative. This stellar growth rate has continued into the current quarter, with LFL growth of >50% in July and S4 Capital has raised its FY LFL guidance from 35% to 40%, the third inc
Companies: S4 Capital plc
4imprint’s H1 results showed strong progress against the pandemic-impacted H1 2020. With significant net cash, the group has remained in a strong financial position throughout the pandemic, enabling management to continue to focus on the long-term opportunity. The benefits of this approach are, once again, now being seen. Total orders are currently running at or higher than pre-pandemic levels. While there are industry-wide supply-side challenges, 4imprint’s scale, in a highly fragmented industr
Companies: 4imprint Group plc
Kape recently announced the transformational acquisition of ExpressVPN and its interim results today show that the Group has been performing well even as it was concluding that deal. The transaction will roughly treble Kape’s revenues and significantly increase EBITDA. The combination will create a powerful force in the global market for security with a focus on digital privacy, with around 6 million subscribers and a true international footprint. This note provides a summary of the proposed tra
Having successfully dealt with the challenges of COVID-19 to date, we believe The Mission Group (TMG) is primed to capitalise on a range of external growth drivers thanks to the fundamental strengths of its network of closely aligned, ambitious and entrepreneurial agencies. July’s pre-close statement points to another positive update later this month and we do not believe that this or, more importantly, the group’s strong EPS and DPS growth potential are close to being reflected in its current v
Companies: Mission Group Plc
Kape’s interims saw Group revenues rise +97% y/y to $59.0m (organic: +12%), driven by a 245% increase in Digital Privacy sales (+47% organic). Organic growth was stronger than anticipated in Digital Privacy, above N1Se estimates of 30%-40% as a function of strong end-user demand. CyberGhost (VPN) and Intego (end-point protection) subscriber bases grew +10% and +11% h/h respectively. The main takeaway is Kape’s inflection to positive FCF ($6.7m; H1’19: -$1.8m) alongside increased cash investment
MAST Energy Developments (MED) is to IPO on the Standard List on 14th April 2021 under the ticker MAST. The company has raised £5m giving a market capitalisation on listing of c. £23m. MED is currently a 100% subsidiary company of AIM quoted, Kibo Energy*. MED was established to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market. PensionBee has confirmed its intention to float on the High Growth Se
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UMG’s spin-off and the sale of an additionnal 10% stake in UMG are progressing but Vivendi’s stock has not moved for a month and is quite stuck at just under c.€30. One may remain cautious indeed that once the distribution of 60% of UMG to Vivendi’s shareholders is done, many investors that had bought Vivendi to have a stake in the future listed UMG will probably sell Vivendi’s stock and this will weigh on it.
Companies: Vivendi (VIV:EPA)Vivendi SE (VIV:PAR)
Amazon agreed on Friday evening to buy the broadcasting sports rights of the French football Ligue 1 for 2021-24.
This is not good news for Canal+ but won’t have any major impact on Vivendi’stock which has not moved for a month and is quite stuck at €29-30 while waiting for UMG’s spin-off. One may remain cautious that, once the spin-off is done, investors that had bought Vivendi to have a stake in UMG will probably sell Vivendi’s stock.