Making strong progress

Today’s H1 update highlights strong progress, this includes +19% sales growth to $24.1m (or +21% cc.). Furthermore, ARR continues to grow rapidly: +130% y/y to $12.9m, driven by DVM’s ongoing success, thanks to four new customer wins and the further scaling of existing accounts, which led to 159% NRR. EBITDA is also significantly better at “over $4.0m” (vs. $-0.2m in 1H23) yet notwithstanding, this points towards a meaningful H2 weighting when compared against full-year expectations. We do howev

A new Bango: 77% ARR growth and 137% NRR

With the majority of the Docomo integration now complete and a record Digital Vending Machine (‘DVM’) pipeline (that is converting, with a 20%+ yoy increase in Q1’24 revenues), we believe a new Bango is emerging with a highly cash generative DCB business and a fast growing, newly reported DVM revenue line that should support high incremental revenue growth. While the January 2024 trading update was disappointing, if we look at Bango’s H2’23 vs H2’22 performance, total revenues increased 46% yoy

Hybridan Small Cap Feast - 18 Jan 24

18th January 2024 @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 obje

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: SGE, HBR, CURY, CPI, CAU, CUSN, ATYM, IHC, BGO & ANIC.

FY23 Trading Update

Bango has reported an impressive 62% yoy growth in FY23 revenues to $46.1m, but this is 6% below our forecasts. Profits were a tale of two halves with -$0.2m adj EBITDA in H1’23 reversing to $5.2-6.2m in H2’23, however, a number of timing factors (detailed below) has resulted in a 56% miss vs our previous estimate with FY23 adj EBITDA expected to be c.$5-6m. Group ARR increased 76% yoy and DVM continues to win new customers, but this is likely to be lost this morning with the focus on the H2 per

Hybridan Small Cap Feast 18/09/2023

Dish of the day Joiners: No joiners today. Leavers: Egdon Resources has left AIM. What’s cooking in the IPO kitchen?** Announced ITF 12 July: Substrate Artificial Intelligence, an artificial intelligence company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health, intends to join the Access Segment of the AQSE Growth Market. Admission delayed. Announced ITF 6 July: Blackpoint Biotech plc, a medical can

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: MNDI, PHNX, GRP, DEC, HICL, PSG, TRR, & BGO.

Success in US market delivers strong H1

Bango has reported strong H1’23 results with 88% revenue growth (we estimate c.25%+ organic), ARR increasing 63% yoy, and a further $8m of annualised cost savings executed with Bango on track to deliver a transformational H2 profit performance. Bango’s Digital Vending Machine (‘DVM’) secured 2 new US wins, including 1 of the top 5 US operators (now working with 3 of the 5), providing access to 200m+ US consumers. Given these operators are currently on the bottom tier of license revenue (we estim

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: SPI, GFTU, TRN, IGG, HTWS, SONG, BGO, BRK, GHE, & THG.

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: INF, AAL, BARC, BEZ, BT., CNA, FRAS, RS1, SDR, SHEL, STJ, DRX, INCH, ITH, ITV, JUP, MAB, BGO, & DELT.

Morning Note – 30 August 2024

Alphawave Semi | 2Q24 trading update - bookings +27% YoY

Alphawave announced a third consecutive quarter of bookings over US$100m with bookings for 2Q24 of US$107m, up 27% YoY. The company also had a record quarter for design wins with 14 in total from new and existing customers, several of which were for hyperscalers and leading semiconductor companies. Wins included not just those for the company's advanced connectivity products but also for its new ARM-based compute chiplet solutions, as the company broadens out its product offering. Evidence conti

Morning Note – 19 August 2024

- Rare opportunity in e-learning technologies

Through a buy and build strategy, Learning Technologies Group (LTG) has established a distinctive international position in corporate e-learning with a broad range of software and service offerings. LTG has been growing apace and profit margins have been rising strongly. The recent acquisition of LMS provider NetDimensions is the last major piece in the technological jigsaw. Attractive growth drivers and synergies from the NetDimensions acquisition put the company in a strong position to generat

Hybridan Small Cap Feast 16/12/2021

Joiners DSW Capital plc (DSW.L) a profitable, fast growing, mid-market, challenger professional services network joins AIM. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income. Public Policy Holding Company (PPHC.L) leading bi-partisan, full-service US government affairs business joins AIM. Through its wholly-owned companies, PPHC operates a portfolio of independent firms that offer public affairs, crisis mana

Hybridan Small Cap Feast - 28 Apr 23

28th April 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 object

Alphawave Semi: Initiation - accelerating to the speed of light

Alphawave Semi supplies cutting edge connectivity solutions for the world's most demanding applications in digital infrastructure. Over the last two years the business has been transformed and it now licences its Intellectual Property (IP), supplies custom silicon and, from 2024, should supply optical connectivity silicon. The company generated revenue of US$185m in 2022 and is targeting growth to cUS$500m by 2025 with a consensus forecast of 102% pa growth in pre-tax profit over the period. Whi

Alphawave Semi | CMD - Reasons to be cheerful

Alphawave's shares have recovered almost half of the losses experienced when forward guidance to 2025 was reduced in April. Following what was a difficult set of FY23 results, the company's recent Capital Market's Day (CMD) set out a powerful case for a continuation of the recovery in the share price, amplifying the group's potential to ride the magic carpet of hyperscaler driven demand for its connectivity Intellectual Property (IP) and its products. Not only were estimates for total addressabl

Alphawave Semi | First chiplet leveraging Arm Neoverse launched

At its recent Capital Market's Day (CMD - see our note from 5th June), Alphawave announced itself as the first company to deliver chiplets leveraging Arm's Neoverse computing technology offering scalable, interchangeable and customisable solutions to its customers. Alphawave has now formally launched this advanced chiplet built on Arm Neoverse Compute Subsystems which is targeted at artificial intelligence/machine learning, high-performance compute, data centre, and 5G/6G networking infrastructu

Touchstar - Full year results: Recurring revenue strategy delivers further profit growth

Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning's full year results reflect the outcome of a multi-year strategy coming to fruition for the group, with recurring revenue growth of 8.7% delivering overall revenue growth of 7.1% and in turn a 60% increase in PBT to £0.7m. Over the past few years, Touchstar has focused on enhancing the returns from their product offering through a shift towards recurring software licen

Devolver Digital (DEVO LN) - Placement at premium and strategic interests

Devolver has attracted strategic interest and raised $10m at a 10% share price premium. We believe this transaction, combined with peers’ strong trading updates and positive market data, could indicate the early stages of sector recovery and undervaluation. Devolver’s shares trade at only 11x ex-cash PE and 9x EV/ Adjusted EBIT for 2026

NCC Group (NCC LN) - Expect further outperformance

FY24 Adjusted EBITDA was slightly ahead of consensus estimates, while revenue and net cash were in line. We leave our above consensus FY25 and FY26 estimates unchanged and see room for outperformance. We believe Cyber Security market growth and the trend towards managed services remains strong, while the Technical Assurance Services (TAS) unit’s drag on group growth should reduce significantly in FY25. We continue to see multiple opportunities for improvement remaining in the company’s turnaroun

PROGRESSIVE: Beeks Financial Cloud Group: Contract extension at JSE – ‘Please, sir, I want some more’

Beeks inks a multi-year contract extension at the Johannesburg Stock Exchange. The contract was first signed in September 2023, with the first extension in March 2024; the momentum reflects stronger-than-expected customer demand from JSE clients – this is a profit centre for JSE. The service is available at the JSE's Teraco data centre, addressing additional regulatory requirements for dual location disaster recovery (customer upselling). The value was not disclosed; guidance is that the contrac

GetBusy - Strong progress through FY23, FY24E forecasts reiterated

GetBusy’s FY23 results show organic revenue growth of +10% to £21.1m, FY23 adjusted EBITDA +£0.1m ahead of our +£0.3m upgrade at the January trading update, and a promising outlook that leads us to reiterate our FY24E forecasts. At constant currency, ARR grew +10% yoy to £20.5m, recurring revenue grew +12% to £20.3m, and net revenue retention of 100.0% per month reflects upselling and price increases, with gross monthly churn of 0.8% per month vs 0.9% in FY22. Within SmartVault, the July 2023 la

Pebble Beach Systems - 1H24: orders growth gives confidence

In line with the July trading update, Pebble’s June 1H24 results report progress in recurring revenue (+21% to £3.1m), order intake (+12% to £4.9m) and continued debt management, all of which position the company well to achieve a H2-weighted year against reiterated FY24E forecasts. Revenue of £5.3m (-4%, 1H23: £5.5m), of which a growing proportion is higher-margin recurring maintenance revenue (SLAs), which grew +21% to £3.1m and delivered margin improvements of 78% GM and 27% adj EBITDA. In tu