Kin & Carta

Risks better priced, but not positioned to outperform just yet

Kin & Carta

H1 20 interims – first take

Kin & Carta

H1 20 interims next month – strong H2 may be required

Kin & Carta

Spire Digital acquisition – earnings uplift, strategically sound

Small Cap Feast

The FT reports that World Chess has announced plans for a novel “hybrid” IPO where it will first issue a digital token ahead of an AIM float The Pebble Group, a provider of products, services and technology to the global promotional products industry, announces its intention to seek admission of its shares to trading on the AIM market of the London Stock Exchange, which is expected to take place in early December 2019.The Group delivered revenue of £99.8m in the year ended 31 December 2018.No me

$14.6m acquisition (8x EBITDA) in West Coast adds to growth story

Kin & Carta has announced the acquisition of Spire Digital for an initial consideration of $14.8m (8x EBITDA), alongside a placing of £13.6m (9.9% of share capital, at last night’s closing price). The company expects the deal to be earnings enhancing in the first full year of ownership with the balance sheet leverage to be broadly unchanged. Although Spire’s revenues amount to ~6% of the existing KCT group, at a 13.8% adj. op. margin on net revenues (vs. KCT 13.4% in FY19), we note the mild marg

Minor forecast changes; PT upgrade to 120p; reiterate Buy

We make small changes to our estimates for FY20/21e post the FY19 prelims in Oct to account for IFRS 16, increased working capital investment and guidance around H1/H2 split. We publish FY22e forecasts and also upgrade our PT from 100p to 120p, reiterating our Buy recommendation, highlighting the 32% bounce since Aug lows of 76p.

FY19 results – first take

Kin & Carta’s FY19 results have come in line with expectations at the net revenue and PBT level. We see this as being as a positive step for the company following the downward revision to earnings in recent months, though we reiterate our view that the next material piece of newsflow will be crucial towards restoring faith amongst investors, and ultimately initiating a re-rating. On a 12m view, we remain buyers, seeing fair value at 100p.

Model updates – 5%/18% PBT cut FY19/20e; PT lowered to 100p; retain Buy

We update our model following the Aug trading update, posting a ~5%/18% downgrade to FY19/FY20e PBT and lowering our PT from 140p to 100p. Given the shift to net revenue reporting, we present our segmental growth/margin assumptions in this note, setting out our expectations going forward. We see consensus earnings for FY19/20e as now being sufficiently reset to tilt earnings risk to the upside, and retain our Buy rating favouring the LT growth opportunity at play, though we acknowledge that upco

Trading update should be in line; recent weakness presents Buying opportunity

Kin & Carta will release a pre-close trading statement next week, a significant update in our view given the absence of material newsflow since the March 19 interims. We expect this to be in line, underpinning our forecasted 3.5% y/y revenue growth for FY19e (which assumes 28% LFL y/y growth in Innovation, -5% in Strategy and -11% in Comms), at a group 11.3% op. margin. Following recent share price weakness, we see the current 8.5x P/E multiple for FY20e (10.3% FCF yield) as being unjustified.

Strategic appointment compliments transition story

Kin & Carta has announced the appointment of John Kerr as Non-Exec Chairman, effective 22 nd July 2019. Today’s statement suggests that John brings a wealth of experience having served a number of senior roles at Deloitte Consulting, and specifically leading the creation of Deloitte Digital in 2012. We see this as a sound appointment for the company as it continues to make progress in executing its strategy, with a focus on digital transformation. At 11.4x FY19e P/E (falling to 9.5x in FY20e), w

Kin and Carta - Momentum due to accelerate as FY20e fast approaches; reiterate 2019 top-pick

The shares have performed well in recent months, having rebounded by 14% from the post-interim lows of 89p mid-March, outperforming the FTSE Small Cap Index (excl. investment trusts) by 13%. In our view, we see scope for this upward momentum to continue. We highlight the YTD operational progress that has been made within the group as being fundamental towards laying the groundwork for potential earnings upgrades (both organic and acquisitive) through FY20e and beyond. At current levels (11.2x FY

Board & senior management changes; top pick 2019

Kin & Carta has announced a number of changes to its’ management team; a change in the CFO and appointment of a ‘Chief Connective Officer.’ Given the turnaround story and strategic repositioning of the company, we would envisage these changes would provide a fresh perspective for the group as it looks to capitalise on the rapid expansion of the digital transformation market. At 10.9x FY19 P/E, we remain buyers and reiterate KCT as one of our top picks for 2019, seeing 36% upside to the shares.

Hybridan Small Cap Feast - 23 Mar 23

23 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Morning Note – 27 March 2023

Audioboom Group - Robust FY22 results, maiden 8p dividend planned for FY23

In today’s FY22 results, Audioboom has reported adjusted EBITDA and net cash in line with the January trading update, highlighted an encouraging start to FY23, and announced plans to pay a maiden FY23 dividend. FY22 revenue growth of +24% yoy to $74.9m has been driven by +16% growth from core premium sales, +70% growth from Showcase, and +37% yoy growth from Sonic, and enabled Audioboom to outperform the wider podcast industry for the sixth consecutive year. A tight control on cost drove adjuste

Hybridan Small Cap Feast - 21 Mar 23

21 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Bioventix - Interims – a strong start to the year underpins FY forecast

Bioventix delivered a strong set of interims, with revenues up 25% to £5.9m, adjusted EBITDA +24% to £4.7m and adjusted pre-tax profit up 26% to £4.6m. Due to a weaker GBP, translation of overseas revenues boosted revenues by c.9% (c.£0.4m), implying a still strong 16% CER growth rate. In line with its policy of maintaining c.£5m cash on the balance sheet, an interim dividend of 62p was declared (+19%), with net cash at period end of £5.15m. Revenue growth was well balanced, with troponin revenu

Hybridan Small Cap Feast - 24 Mar 23

24 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Cenkos: Braemar Plc -- Record revenue and profitability

In a trading update for the year to 28 February 2023, Braemar highlighted record revenue and profitability for the period. Braemar expects to report revenue not less than £150m, up at least 48.1% on FY22A, and underlying operating profit of not less than £20m, c100% ahead of FY22A, with all parts of the business performing well and further helped by a positive dollar FX tailwind. Braemar has increased its investment in the business during H2/23 and with trading in the current year staring well,

Hybridan Small Cap Feast - 16 Mar 23

16 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Fintel plc (FNTL LN) - Growth driven by FinTech

Fintel’s 2022 results provides details behind its January pre-close, which revealed: • 8% core revenue growth to £56.4m (FY21: £52.2m) • 7% core SaaS & Subscription revenue growth to £36.8m (FY21: £34.3m) • 4% total revenue growth to £66.5m (FY21: £63.9m), including surveying & panel management • Adjusted EBITDA growing.6% to £19.4m, in line with Board expectations (FY21: 6%), while adjusted core EBITDA grew 9% to £18.6m (Zeus forecast: £18.0m) • 118% (FY21: 116%) operating cash conversion,

Strong CY22 results - EPS a 4% beat - correction

SP Angel Morning View:Copper prices tick higher on improving fundamentals as Trafigura expects $12,000/t

FY22 update – Performance in-line & board changes

RBGP has published its FY22 pre-close trading update this morning. Unaudited FY22 revenue, adj. EBITDA and adj. operating profit are expected to be in-line with our estimates. Professional Services, saw good performances across both, the legal services and sell-side corporate finance offering. Whilst there is no resolution on decreasing exposure to LionFish, the Group is encouraged by accelerating developments. RBGP also announced a number of changes to the board, with Nicola Foulston, CEO, havi

Hybridan Small Cap Feast - 27 Mar 23

27 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

LIBERUM: Inspired Plc* - Initiation - A technology-enabled services provider

Hybridan Small Cap Feast - 28 Mar 23

28 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv