R4E has released a Trading Update which states that it has made good progress in the year to December 2019 and revenues and EBITDA will be 'significantly ahead' of market expectations. This has been driven both by the continued positive performance of the group's existing operations and the successful integration of Sold Out and Buzz 16. We raise our PBT/EPS forecasts by +27% to £1.9m/0.10p (was £1.5m/0.08p) for FY19 and +5% to £2.3m/0.11p (was £2.2m/0.11p) for 2020. We view our 2020E estimates as highly conservative given the strong momentum across R4E, with a greater level of collaboration across the group. R4E finished the period with net cash of £2.75m. We note that the strong FY19 update follows on from a very robust set of interims that were also well ahead of our forecasts. We believe R4E has very strong momentum as it continues to expand into the broader area of live entertainment and in our view the shares offer compelling value. We retain our Buy rating and target price of 2.40p.
Companies: Reach4Entertainment Enterprises
R4E delivered very robust interim results that were well ahead of our forecasts. Gross Profit leapt +40% to £12.0m while Pre IFRS16 EBITDA nearly tripled to £1.2m vs DCe £1.0m. The turnaround of the existing R4E businesses has been successfully executed by the new management team, led by Marc Boyan, that joined the group late in 2017. Encouragingly, all areas of R4E have contributed to the turnaround and the pipeline is strong across the group for H2 and into 2020. The group had an active H1 corporately, with the acquisitions of Sold Out (arts & entertainment full service agency) and 50% of Buzz 16 (sports media production) that have broadened the group's marketing and media offering. We are maintaining our forecasts on an underlying basis and believe the group has very strong momentum as it continues to expand into the broader area of live entertainment. We believe the shares offer compelling value and we retain our Buy recommendation and target price of 2.40p.
Reach4entertainment has reported strong finals with adjusted EBITDA of £1.4m ahead of DCe £1.3m and 0.061p adj EPS vs 0.025p DCe. The Group has an impressive pipeline for 2019 alongside realising the highly complementary client bases of R4E and recently acquired Sold Out. We believe there is considerable scope for the enlarged group to cross-sell services and pool resources around each other's key competencies.
United Oil & Gas (UOG.L) an oil and gas exploration and development company brought to the Official List (Standard Segment) in July 2017 by way of a reverse takeover of Senterra Energy plc. No capital to be raised, expected market cap of £17m and expected 1 March 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. Polemos, to be renamed Digitalbox plc, has agreed to acquire Digitalbox Publishing Holdings Limited for c.£10m through a share for share exchange. The acquisition constitutes a RTO. Polemos has also agreed to acquire the entire issued share capital of Mashed Productions Limited, a digital media business which owns the online satirical news website "The Daily Mash", for a maximum total consideration of up to £1.2m. Market cap on admission £12.4m, expected 28 February
Companies: AAU IHC MDZ GMR R4E APC WEB HAYD 88E BPC
R4E has announced the acquisition of Sold Out, a leading full-service advertising agency that specialises in the arts and entertainment sector. Initial consideration of £4.19m will be part-funded by a £3.0m placing of 250m shares at 1.20p, with deferred consideration for the next three years to a total cap of £10m. We view the strategic rationale of the deal as compelling, with significant scope to cross sell services across the enlarged client base of R4E, which focuses on theatrical releases, and Sold Out, that serves live music festivals, comedy and sport. Further, there is significant potential to offer a broader range of services across the enlarged group, with R4E providing a fully integrated marketing and communications offering while Sold Out has particular strength in media planning and buying. In addition, we believe Sold Out's media buying will be significantly enhanced by tapping into R4E management's expertise. The transaction is materially enhancing and our PBT/EPS forecasts more than double to £2.0m/0.109p (was £0.9m/0.054p) for 2019E and £2.7m/0.138p (£1.0m/0.064p) for 2020E, the first full year of the transaction. This puts the shares on just 9x 2020E earnings, which we view as stand out value.
reach4entertainment has today provided an encouraging trading update for the year ended 31 December 2018. The Group expects to report 'full year adjusted EBITDA significantly ahead of expectations'. We have upgraded our FY18 and FY19 adj PBT forecasts by 50% and 12.5% respectively, and remain extremely confident in management's ability to achieve further operational improvements
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.
Circassia Pharma (CIR.L) - specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb. Mkt Cap c.£185m.
Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019.
Chaarat Gold Holdings—RTO, the Company intends to acquire Kapan Mining and Processing CJSC, which owns the Shahumyan medium-sized polymetallic mine in Kapan in the Republic of Armenia. No raise, market cap of £110.1m, due early Feb
Companies: JHD RNWH MPAY ZNWD STM R4E ING TRMR RWI KDNC
reach4entertainment has today announced it is acquiring a 50% stake in Buzz 16 Productions Group ("Buzz 16"). R4e will work in partnership with Buzz 16's cofounder and sports broadcaster Gary Neville. We view this as an attractive acquisition enabling the Group to expand into sport and live entertainment. The acquisition will be satisfied through the Group's existing cash resources and management expects the acquisition 'to be earnings accretive in 2019'.
Reach4entertainment (R4E.L) today announced H1 2018 results outlining a strong win rate for 2019 and 2020 Broadway shows. As a result of the growing pipeline and greater future visibility, we upgrade our FY19E forecasts leading to 20% earnings growth on current DCSe. R4E is a cash generative business undergoing a management-led transition to improve margins and explore new growth opportunities. We remain confident in the Group’s long-term potential and reiterate our 2.0p target price and ‘Buy’ recommendation.
In a year of major transition, results for FY2017 came in ahead of our revised forecasts yet were significantly below the prior year outturn, primarily due to much weaker trading at the Group's largest business, SpotCo, against a particularly strong comparative in FY2016. SpotCo still has operational challenges ahead and this, together with expected initial losses from the start-up in Amsterdam, will negatively impact our forecasts for FY2018 which are now expected to be in line with FY2017 trading. With the attainment of a year-end net cash position for the first time in many years, the legacy of a highly leveraged balance sheet is now confined to history. This coupled with a new, ambitious and highly experienced management team suggests to us that there are significant opportunities for growth from FY2019 onwards.
reach4entertainment (r4e.L) offers investors a cash generative business undergoing a significant management-led transformation to improve margins in its existing businesses and explore new growth opportunities in similar verticals and new geographic markets. We initiate with a “BUY” recommendation and 2.0p target price.
reach4entertainment (r4e) has confirmed that the Group traded broadly in line with market expectations for the year to December 2017 and better business prospects, together with actions taken since the new management team was appointed in October 2017 all point to an improvement in Group profitability during 2018. It is clear that the Board envisions much broader horizons for r4e than its traditional theatre markets in London, Germany and New York as it seeks to exploit and expand the Group’s expertise in media and entertainment marketing. With a balance sheet strengthened by the recent £5.5m fund raise we believe that on a medium term view the current share price offers an attractive buying opportunity.
TruFin—holding company of an operating group comprising three growth-focused FinTech and banking businesses operating in three niche lending markets: supply chain finance, invoice finance and dynamic discounting. Offer TBC, expected late Feb
Polarean - The medical drug-device combination companies operating in the high resolution medical imaging market. Offer TBC. Due 22 Feb
Block Energy—a NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC
OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Offer raising £30m at 165p with mkt cap of £100m . Due 9 Feb.
Companies: NFC FEN OSI PMG R4E SNG GROW FLX BLV MLVN
Totally (TLY) - Sch 1 for £11m RTO of Vocare, a provider of integrated urgent care services to the NHS throughout the UK. £76.8 million rev in the year ended 31 March 2017. Totally to address Care Quality Commission concerns. Due 24 Oct. | Central Asia Metals (CAML) -RTO of Lynx Resources. Anticipated market capitalisation at Admission: £404.8m. Raising £113m at 230p. Acquiring the SASA zinc-lead mine in Macedonia from Solway Industries. Due 15 Dec. | Springfield Properties—Scottish housebuilder. “Our turnover exceeded £100 million for the first time this year and now we employ around 500 people. This IPO is the next step in our growth.” Expected 16 October. Offer raising £25m at 106p with marketcap of £87m. | OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. | Orogen plc, to be renamed Sosandar plc on Admission. Sosander is an online womenswear brand specifically targeted at a
generation of women who have graduated from younger online and high street brands, and are looking for affordable clothing with a premium, trend-led aesthetic. Offer to raise £5.3m with market cap of £16.1m, expected 2 November 2017 | OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected late October . | SolGold—Publication of prospectus regarding transfer from AIM. Due 6 Oct | ContourGlobal LP— contracted wholesale power generation businesses, with 69 thermal and renewable power generation assets
in Europe, Latin America and Africa. In the year ended 31 December 2016 it generated $905.2 million of combined revenue and $440.4 million of Adjusted EBITDA. Raising c.$400m. Expected November. | TI Fluid Systems—Maybe second time lucky? Pulled last October. global manufacturer of automotive fluid storage, carrying and delivery systems seeking to raise €425m to reduce financial leverage (to approximately 2.0x net debt to Adjusted EBITDA by the end of FY 2017). Possible partial sale by Bain. Revenue for FY 2016 was €3.3 billion and Adjusted EBIT was €362.1 million | M7 Multi-Let REIT—Intends to raise up to £300m at 100p. Aims to acquire and hold a portfolio of UK regional light industrial and regional office assets diversified by geography, asset type and tenants that is expected to generate stable income returns and, where appropriate, offer the potential to leverage and enhance returns through active asset management initiatives. Due 13 Nov. | Bakkavor Group - Provider of fresh prepared food intends to float in November. FY 16 Revenue: £1,763.6 million FY 16 Adjusted EBITDA: £146.4 million (13.7% CAGR FY 14-FY 16). Part vendor sale and primary raise of c. £100m. Price TBA. | Russia’s En+, owned by Russian aluminium tycoon Oleg Deripaska, has assets in metals and energy, including hydropower. reported to be seeking dual London and Moscow listing raising $1.5bn | TMF Group , which provides tax, admin and legal support services, reported to be seeking London IPO to raise c. £200m. | People’s Investment Trust—Objective of sustainable wealth creation. Also to list on the Social Stock Exchange. Targeting £125m raise on 17 Oct. No performance fees or executive bonuses in order to focus on long term rather than short term performance.
Companies: GDP YGEN NAH REDX ANGS PTD JAY R4E
A quieter 2017, but growth to resume in 2018
Interim results for FY 2017 were lower than the comparative period. In mixed trading for the first six months, the Group reported stronger EBITDA at Dewynters and a very positive breakeven position for Dewynters Germany in its first year of trading. However, SpotCo, the Group’s US subsidiary, had a quieter half year compared to the exceptionally strong results achieved in 2016 while Newmans suffered from tougher market conditions in the UK. As a consequence, and in line with the trading update issued in August, our original expectations for 2017 are unlikely to be met and we are therefore downgrading adjusted EBITDA and EPS by 33% and 63% respectively. Pleasingly, the trading outlook for 2018 is more positive, particularly for SpotCo which has won the engagement for several new shows opening in 2018, and together with the expected benefits to be derived from strategic initiatives put in place over the past twelve months, should see a return to strong growth. We remain comfortable with our fair value of 2.5p.
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Reach plc today provides a strong Q4 trading update highlighting upgraded FY’20E AOP expectations of £130m-£135m ahead of consensus (cons: £124.3m) and record growth in Digital. Digital sales growth has recovered strongly since Q2, accelerating to 25% y/y (Q3: +13%; H1: -1%) benefitting from both higher traffic through implementation of Group engagement initiatives and yield recovery as advertisers in CV19 impacted verticals return. Print circulation revenue decline moderated to 11.7% y/y in Q4 (Q3: -12.6%), a significant deceleration from the -18.2% y/y in H2 and modestly better than our H2 forecasts. Continued focus on audience engagement, the quality of audience data and insights, and further extension of locally focused digital content we see driving further gains online, with Digital sales still on track to double on a four year view. We are upgrading forecasts, increasing FY’20E sales, AOP and adj FCF by 2%, 6% and 5% respectively, with upgrades filtering into future periods. A 17% FY’21E FCF yield sits well in advance of global peers (3%-7%), with a 10% FCF yield generating an intrinsic valuation of 315p/share.
Companies: Reach plc
Cornish Metals (TSX-V: CUSN) intends to list on AIM. The Company is proposing to raise £5 million by way of private placement of new Common Shares (the "Fundraising") to advance the United Downs copper-tin project. The Company expects that Admission will become effective in February 2021. The Company's Common Shares will continue to be listed and trade on the TSX-V in Canada. Further media reports that Dr Martens, the British Boot brand is planning an IPO on the LSE. It is currently owned by PE group, Permira who is expected to sell down its stake at the IPO. March 2020 YE the group had revenues of £672m and EBITDA of £184m. Deal size TBC. VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering of shares on the Official List (Premium) of the Main Market of the London Stock Exchange. Due by Early Feb. Moonpig, the digital greeting card company, is planning an IPO with a potential valuation of £1bln, according to multiple media reports. Further details expected to be announced over the next two weeks.
Companies: ZPHR PANR PRSM SENS CYAN G4M ITX CRCL FEN ZIN
AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately £7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC. Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world's largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021. Cellular Goods a UK-based provider of premium consumer products based on biosynthetic cannabinoids announced its intention to join the main market (standard) this Spring. Target valuation £20m raising c. £8m “to finalise the development and launch of a range of the Company's premium-quality consumer products based on biosynthetic cannabinoids, which is fully compliant under UK law.” NextEnergy Renewables to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally. Targeting a £300m raise. NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company's target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021. Auction Technology Group is considering an IPO on the Main Market. The Group operates six world-leading online Marketplaces and proprietary global auction platform technology for curated online auctions. In FY20 the Group delivered pro forma revenue of £52.3m, supported by notable underlying year-on-year growth from both Standalone ATG Group and Standalone Proxibid Group (12.4 per cent. and 40.4 per cent., respectively). For the same period, the Group delivered a strong profitability performance of £22.3m pro forma Adjusted EBITDA representing a pro forma Adjusted EBITDA margin of 42.6 per cent. Expected March 2021. Digital 9 Infrastructure launch an initial public offering on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be published in March 2021. Team PLC announced their plans for an AIM IPO. Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 . The Company is seeking to raise no less than £5 million. The Placing will be priced on a pre-money valuation for the Company of £7m. Targeting March Admission. Virgin Wines UK Plc recently set out their plans for an AIM IPO. Virgin Wines is a direct-to-consumer online wine retailer that sells products to retail customers in the UK through two subscription schemes and a pay-as-you-go offering. The Group also sells a range of beers and spirits and operates a B2B sales channel for corporates. Deal details TBC but media reports suggest a £100m valuation. Targeting 2nd March Admission Fix Price announces its intention to float on the Main Market of the London Stock Exchange. Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company. Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA. Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT's investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance. According to media reports, Deliveroo, are expecting to release their IPO plans on 8th March. The company raised more than $180m in January with a valuation of more than $7bn.
Companies: OTMP MNO FNX NSCI CNIC CHAR RBD CLP DXSP CUSN
Upon Admission to AIM, Nightcap will acquire The London Cocktail Club Limited (the "London Cocktail Club"), which is an award winning independent operator of ten individually themed cocktail bars in nine London locations and one location in Bristol. Offer TBC. HSS Hire Group, HSS.L transfer from Main to Aim. Mkt Cap c. £70m. Recently raised £52.6m. Leading supplier of tool and equipment for hire in the United Kingdom and Ireland and has provided equipment hire services in the United Kingdom for more than 60 years, primarily focusing on the B2B market. VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering of shares on the Official List (Premium) of the Main Market of the London Stock Exchange.
Companies: PMI RMM SUN BOIL ITM TRMR MLVN 88E IME ANP
I wake up in my DFS (DFS) bed with a Gin and Fevertree (FEVR) hangover, place a trade on my phone through CMC Markets (CMCX), have a quick go on my Hornby (HRN) train set, eat half a box of Hotel Chocolat (HOTC), all before heading out in my brand spanking new Joules (JOUL) wellies to my local Metro Bank (MTRO) branch. All of these well-known consumer brands share a common theme in that they are all listed or quoted on the London Stock Exchange. It’s been a year so far reminiscent of 2014 when we saw a flurry of large brands rush for the IPO door such as Pets at Home (PETS), Saga (SAGA), AA (AA) and Poundland (PLND). Most looking for a private equity exit. The IPO adventure of these companies tends to be fairly boiler plate: the valuation is a battleground between the exiting private equity house and incoming institutional investors, the book is many times covered and the scale backs are eye watering. But what makes these companies more alluring to investors than a company nobody has ever heard of which in fact may be profitable, dividend paying and ultimately, on a lower valuation?
Companies: CMCX CSP VMUK WJG ACRL ASCL
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.
Companies: De La Rue plc
Reach’s trading update highlights revenue growth tracking comfortably ahead of market expectations going into December. Digital sales, underpinned by strengthening customer engagement, has accelerated substantially to +16.2% y/y in the 5-months to 22 November (H1’20: -1.0%), and is strongly ahead of N1S H2 forecasts (+2.7% y/y). Print sales were in-line, with increased cross-promotion across Reach’s portfolio leading to stabilisation in HY y/y trends (H2 to date: -19.7%; H1: -20.1%). Management also report a ‘significant’ reduction in costs in-line with the Group’s transformation strategy, which combined with a higher Digital weighting, has pushed up AOP margins ‘materially’ on a sequential basis. As a function of this strong update, we upgrade FY’20E sales, AOP and adj FCF forecasts by 1%, 7% and 8% respectively. FY’21E FCF yield of 22% (pre-pension contributions) is materially ahead of global peers (4%-7%); a yield of 10% generates an intrinsic value of 310p/share.
Tremor has announced that December trading materially exceeded its prior estimates, as its platform’s momentum has continued to accelerate since its last update on 30 November. Tremor now expects FY20 revenue and EBITDA to be in the range of $404-408m for revenue (from $390-400m), and $58-60m for EBITDA (from $50-52m). This leads us to upgrade our FY20 and FY21 revenue forecasts by +2-3% to $406m and $479m, and upgrade our FY20 and FY21 EBITDA by +16% and +10% to $59m and $68m. As Tremor’s platform benefits from strong operational gearing, this drives upgrades to EPS of +28% in FY20 and +16% in FY21. Our net cash then increases by $11m in FY20 to $96m, and despite including $10m of buyback in FY21, our FY21 net cash increases by $12m to $117m as we partially unwind conservative working capital assumptions. This is the fourth upgrade to our Tremor forecasts since COVID-19 impacted the advertising market and Tremor in Q2 20, and Tremor subsequently adopted a prudent approach to its FY20 guidance. We continue to mirror this conservatism in our FY21 EBITDA of $68m, which compares with H2 20 EBITDA of $57m, and our FY21 EBITDA includes additional investment as Tremor looks to gain share within a market growing at over 20% pa. From p9 we also highlight that Tremor is demonstrating the same trends as its US ad tech peers Magnite, PubMatic, and The Trade Desk, with each forecasted to see +15-35% organic revenue growth and +10-60% organic EBITDA growth in FY21, as they focus on expanding in connected TV. However, Tremor is trading at a major discount to its US peers on all metrics, such as FY21 EV/EBITDA of 9x vs 41x, 29x and 104x, and at a discount to the finnCap Tech 40 on 17x with +9% EBITDA growth. As Tremor continues to deliver and exceed expectations, we do not expect that its current valuation will be sustainable due to market or external interest, and we upgrade our target price to 800p based on 20x FY21 EBITDA.
Companies: Tremor International Ltd.
CentralNic has made a small acquisition of SafeBrands, an online brand protection software provider and corporate ISP based in Paris, for a cash consideration of up to €3.6m (0.9x FY19 revenue). €3m is payable upfront and €0.6m will be paid subject to meeting FY20 performance objectives. SafeBrands operated at close to break-even in FY19. Separately, CentralNic has also reorganised its Corporate division, rebranding it as the Enterprise division. Based on our estimates, the company trades on an FY21e P/E multiple of 15.8x and 9.8x FY21e EV/adjusted EBITDA. We expect earnings-accretive M&A to bring multiples down further as CentralNic consolidates a globally fragmented market of sub-scale, cash-generative businesses.
Companies: CentralNic Group Plc
Tremor’s listed peer Magnite has announced that it intends to acquire SpotX for $1.17bn in cash and shares, or c10x SpotX FY20 net revenue of $116m. After Tremor upgraded its FY20 net revenue to $180m in its January trading update, 10x net revenue would imply a Tremor valuation of $1.8bn or 1,000p per share. The SpotX transaction enables Magnite to grow its scale within connected TV and digital video advertising, and will provide Magnite with $67m of FY20 net CTV revenue, or almost triple Magnite-SpotX’s Q4 20 net CTV revenue to $42m compared to $15.3m for Magnite standalone. In comparison, we expect Tremor to report over $15m of net CTV revenue in Q4 20 and $35m for FY20 as Tremor’s momentum in CTV has continued to accelerate. However, before the Magnite-SpotX transaction, Magnite’s market cap was over $4.8bn compared with Tremor’s market cap of $1.0bn. As Tremor continues to deliver and exceed expectations, we do not expect that its current valuation will be sustainable due to market or external interest, and today’s transaction highlights that M&A is taking place around the growth in CTV and digital video that Tremor is capitalising upon. On 12-month forward forecasts, Tremor is currently trading on 13x EV/EBITDA with conservative EBITDA growth of +15%, which compares to US peers Magnite, The Trade Desk, and PubMatic on 61x, 114x, and 53x 12-month forward EV/EBITDA with EBITDA growth of +10-60%.