Hybridan Small Cap Feast 11/08/2023

Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Announced ITF 4 August: Tan Delta Systems plc, a Sheffield based Company intends to IPO on AIM. Tan Delta has developed an innovative and differentiated monitoring solution based on real time oil analysis and analytics that offers equipment operators enhanced insight into the maintenance status of their equipment and thus the ability to reduce maintenance costs, improve reliability and reduce carbon footpr

De La Rue - Termination of coverage

Edison Investment Research is terminating coverage on De La Rue (DLAR) and Walker Greenbank (WGB). Please note you should no longer rely on any previous research or estimates for these companies. All forecasts should now be considered redundant.

De La Rue - Securing the future

De La Rue remains challenged. New management has to navigate a difficult Currency market and consequent concern over its finances. The swift response in terms of a turnaround programme is a positive start, accelerating cost cutting initiatives and cash management measures, including suspension of the dividend. Restoring stability and rebuilding confidence in the investment case is likely to take some time.

De La Rue - Challenges continue

De La Rue has announced that its H120 profitability continues to be challenged and that market expectations for FY20 remain significantly too high. With no detail on the factors driving the weak performance, we are placing our forecasts under review pending H120 results on 26 November. With the arrival earlier this month of the new CEO, Clive Vacher, management is undertaking a detailed review of the business and we expect to hear at least initial thoughts on this with the H120 results. A full r

De La Rue - Withdrawal from subscale activity

De La Rue has announced it is selling its International ID Solutions business for £42m. Following the loss of the UK Passport Contract last year, the remaining activities lacked critical mass in a consolidating sector and disposal to Assa Abloy has been deemed to be the most favourable solution. The deal will be earnings dilutive as the passport contract winds down and by the end of FY20 there will be no contribution from ID Solutions from FY21. Our EPS for FY21 is reduced by 8% to 31.9p.

De La Rue - Venezuela costs dearly

Despite delivering close to our expectations for FY19, De La Rue has hit another problem which undermines prospects for FY20. The abrupt end of the overspill supply to Venezuela due to sanctions not only leaves the company £18m out of pocket, but also having to accelerate optimisation efforts to adjust to the new, lower but sustainable banknote print volumes by 2021. The result is a 22% reduction in our FY20 EPS estimates with declining revenues through FY21. Combined with the announced change o

Small Cap Feast

Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer TBC, expected late April. SDX Energy plc—a North Africa focused oil and gas company, announces its intention t

De La Rue - Tax stamp deals underpin PA&T growth

Following last week’s European contracts, the award of a sizeable five-year contract for tax stamps for the Kingdom of Saudi Arabia (KSA) further underpins management’s recent assertion that Product Authentication & Traceability (PA&T) would double its sales over the next three years. In addition, we visited the polymer banknote substrate operation near Bolton yesterday that showcased De La Rue’s strong position to deliver its increasing share in this fast-growing segment of the market. Both are

De La Rue - Keeping it real

De La Rue continues to pursue a strategy that is transitioning the company to a less capital-intensive operation with a more diverse customer base and revenue streams, incorporating more embedded technology and IP. Underlying progress is apparent although masked by the disposals and the recent loss of the UK passport contract. The strengthening of the balance sheet enables appropriate M&A to augment what we expect to be a resumption of organic sales growth from FY21. The current rating implies s

De La Rue - Increasing focus on security features

H119 results demonstrate that management is delivering to its strategy. Strong order cover across the group suggests a sharp recovery in H219, enabling management to maintain expectations that it will meet market consensus. Longer-term contract wins also support the expectations for growth of the ongoing activities, passports aside. The shares trade on an undemanding 10.4x FY20e PER, supported by a healthy yield.

LIBERUM: M&C Saatchi: Brutal Simplicity of Operations

LIBERUM: The Liberum Leisure Digest: NLW increase - pricing power is key

S4 Capital - Extension of recovery horizon

S4 Capital had a difficult FY23, as flagged, with reduced client confidence and spend, particularly from those clients in the tech sector, and on larger transformation projects. Management is cautious in the short term, with no substantive changes likely in H124, but sees conditions likely to improve in H224 as economic pressures ease. The group’s longer-term prospects should be buoyed by its positioning across data and digital marketing and, in particular, in incorporating AI into hyper-persona

Team Internet Group - Growth and returns, acquisition bolsters outlook

Team Internet’s FY23 results exceeded our forecasts and consensus on revenue and EBITDA. Online Marketing was driven by increased consumer engagement, reflecting investment in delivering more targeted ads across a wider array of channels. The group’s latest acquisition, Shinez, strengthens Online Marketing via diversification of publishers and is earnings accretive with scope for further synergies. Online Presence returned to strong revenue growth, driven by demand for exotic domains, pricing op

LIBERUM: Agents of change: Evolving for modern demands

Nexxen - Q4 results +2-4% ahead of cons, FY24E forecasts +3-4% ahead

Nexxen has announced Q4 net revenue +2% ahead of consensus, Q4 adjusted EBITDA +4% ahead of consensus, and FY24 guidance that leads our FY24E revenue and EBITDA to be +3% and +4% ahead of consensus. Q4 net revenue of $90.5m is +2% ahead of Q4 consensus of $88.5m, with the Programmatic division’s $86.0m of net revenue delivering 95% of group net revenue. After successfully realising $65m of annualised synergies from the Amobee acquisition at Q2 23 results, strong cost control has driven Q4 adjust

LBG Media (LBG LN) - Solid core trading, new APAC operating model to drive efficiency

Pre-close trading update sees FY23E revenue growth of ~7% to £67m with Adj. EBITDA to be at least +8% to £17m. Followers are +20% to 440m, with new blue-chip client wins secured. Challenges in APAC have driven implementation of a new, lower-cost, operating model, leveraging LBG’s core UK business and a new strategic partnership with Australia’s largest online media publisher.

Morning Note – 6 March 2024

Next 15 - FY24 Full Year update

If one focused solely on the share price chart, it would appear Next 15 had experienced a near death experience in 2023 with multiple, and extensive downgrades. The reality has been somewhat different. Next 15 will exit FY24 delivering both top line growth and year on year margin progression.

LIBERUM: M&C Saatchi: Efficiency programme delivering

Team Internet Group (TIG LN) - Record results

Team Internet’s FY23 results confirmed another strong year of trading from its Online Marketing and Online Presence businesses. Both revenue and EBITDA growth remained in double digits, margins on net revenue continued to improve, and cash conversion remained strong. We continue to believe that the Group has substantial long-term growth opportunities including international expansion, new partner development, and vertical integration. In our view, Team Internet’s strong track record, cash genera

Team Internet Group (TIG LN) - Online Marketing bolt-on

Following the record FY23 results announced yesterday, Team Internet announced an accretive bolt-on acquisition for an initial consideration of $42m. The Group is continuing its strategy of making accretive bolt-on acquisitions, aiming to diversify its revenue model and expand its traffic monetisation options and capabilities. The deal is expected to complete in late May 2024, at which point we will incorporate the impact into our forecasts. We continue to believe that Team Internet’s strong tra

Initial Equity Trading Comments - 16 May 2023

Eagle Eye+ (EYE, House Stock at 570p) - All I Do Is Win. Capitalising on a dynamic market.

Tremor - $65m of cost synergies realised, Q2 net revenue +13% yoy

In a challenging environment, Tremor has announced Q2 net revenue growth of +13% yoy to $80.2m, adjusted EBITDA of $21.0m, and the successful realisation of $65m of annualised cost synergies following the Amobee acquisition in September 2022. Q2 Programmatic net revenue has increased +26% yoy or +22% qoq to $76.3m, with CTV net revenue increasing +17% yoy to $45.9m in H1. Today’s release confirms that the tech integration of Amobee is now largely complete, with the April launch of the cross-plat