Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CLEARSTAR. We currently have 54 research reports from 3 professional analysts.
Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m. The Group's key producing assets, the Kagem emerald mine in Zambia (believed to be the world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the Faberge brand. Due Valentines Day 2020.
Companies: CCS TRP TEK BOOM 9537 ACT THR VRS SRB MWE
It’s been a ‘FTSE slug fest’ over the past 3 months. Firstly investors were rattled by US/China trade tensions, then uncertainty about Brexit/General Election, and more recently by conflict in Iran/Iraq and the deadly Coronavirus. The latter sending Chinese equities, travel stocks, crude oil, commodities and many other assets plummeting.
ClearStar (CLSU): Corp Entering the facilities management market | Lok'nStore (LOK): Corp Financial strength, capacity and opportunity to grow
Companies: CLEARSTAR Lok'n Store Group
Underlying demand for ClearStar’s tech-rich background & medical (MIS) screening services remains buoyant, as evidenced by its record orderbook and healthy pipeline – augmented by November’s ebullient US jobs report, where unemployment fell to a 50- year low of 3.5%
City of London Group (CIN): Corp Ready steady go | ClearStar (CLSU): Corp Trading update | Destiny Pharma (DEST): Corp Asian Pacific guidelines support XF-73 future use | Evgen Pharma (EVG): Corp Interims – cash to Q3 2021 | SDI Group (SDI): Corp Interims on track for strong FY 2020 | Tristel (TSTL): Corp AGM and trading update
Companies: 9537 SDI TSTL DEST EVG CIN
The US-based provider of Human Capital Integrity technology-based services specialising in background and medical screening has released a strong set of Interim results; adj. EBITDA positive and well set to meet our FY growth forecasts. The ongoing sales growth continues to be driven by medical screening solutions and the provision of background checks to an expanding direct client base in the context of a very healthy US labour market. The strengthened direct sales team has been impressive, but in particular the medical business is offering a widening range of services to ever more customers in ever more industry verticals, utilising an increasing number of labs across the US. On that basis, we are lifting our sales forecast for the year but expect the additional margin to be reinvested to drive further growth in a buoyant market. We reiterate our 90p target, a 42% upside.
Avingtrans (AVG): Corp FY results slightly ahead, good margin gains achieved | Chariot Oil & Gas (CHAR): Corp Lixus licence additional prospects | ClearStar (CLSU): Corp Medical and direct sales continue to drive strong growth | Europa Oil & Gas (EOG): Corp Moroccan acreage award | Iofina (IOF): Corp IO#8 iodine plant launched | Quixant (QXT): Corp Market share loss at key customers will leave H2 short | Zambeef (ZAM): Corp Disposal of a farm yields US$9.25m cash | ZOO Digital (ZOO): Corp AGM statement
Companies: AVG CHAR 9537 EOG IOF QXT ZAM ZOO
Recruiting skilled, trustworthy and committed staff is a tricky & often cumbersome process, especially in today’s tight US labour market (3.7% unemployment). Get it wrong, and capable candidates go to rivals. Equally hiring poor employees can damage an organisation’s results, brand & culture. No more so than in the regulated areas of healthcare, transport, petro-chemicals, defence, logistics, education and financial services.
If you’re concerned about Brexit, Sterling’s devaluation, currency wars and/or the slowing global economy, then look no further than Uncle’s Sam’s backyard. To us, America remains the ‘destination of choice’ for many investors, given its resilient consumer (>70% GDP), low unemployment (3.7%), solid GDP (2.1% Q2’19) and muted inflation (CPI 2.1%). The only problem is finding the right companies to buy at attractive levels. Step forward ClearStar, a tech-enabled background & medical (MIS) screening expert, based in Atlanta (Georgia), serving almost exclusively the US domestic market (c. 95% sales).
Avesoro Resources (ASO): Corp Q2 and H1 financial results | ClearStar (CLSU): Corp MIS revenues reach $1m per month
Companies: Avesoro Resources CLEARSTAR
Amino Technologies (AMO): Corp Interims: demonstrating execution | ClearStar (CLSU): Corp Strong sales growth in H1 is on track for FY | K3 Business Technology (KBT): Corp Own IP momentum
Companies: AMO 9537 KBT
ReAssure Group plc - The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market. Voyager AIR The Com pany w ill focus on the acquisition, leasing and m anagement of prim arily widebody aircraft, w ith asset management services to be provided by Amedeo Limited he IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m· Uniphar, a diversified healthcare services business w ith a workforce of over 2,000, is looking to join AIM. Raise TBC, expected mid-July 2019
Companies: CPT RENX RGO TMT ADT RDT RGM IPEL 9537 CWR
There are few principles in life that work consistently through ‘thick and thin’. One of the most important (& usually hardest to find) for investors is purchasing ‘quality growth stocks at attractive prices’. Enter ClearStar, who this morning (ahead of its AGM) said that LFL sales had climbed 14% in the first 5 months of 2019.
Castleton Technology (CTP): Corp Prelims | Chariot Oil & Gas (CHAR): Corp Anchois development technically feasible | ClearStar (CLSU): Corp AGM told that strong H1 growth is on track for FY | Frontier Developments (FDEV): Corp Strong H2 sees upgraded forecasts | K3 Business Technology (KBT): Corp Trading update | Pelatro (PTRO): Corp Major contract win in Asia underpins forecasts
Companies: CTP CHAR 9537 FDEV KBT PTRO
Research Tree provides access to ongoing research coverage, media content and regulatory news on CLEARSTAR. We currently have 54 research reports from 3 professional analysts.
|26Apr17 07:00||RNS||Notice of AGM and Posting of Annual Report|
|20Apr17 14:28||RNS||Holding(s) in Company|
|19Apr17 07:00||RNS||PDMR Shareholding|
|12Apr17 07:00||RNS||PDMR Shareholding|
|04Apr17 07:00||RNS||PDMR Shareholding|
|31Mar17 07:00||RNS||Director/PDMR Shareholding|
|28Mar17 07:00||RNS||ClearStar agreement with IntelliCentrics|
Seeing Machines Limited has announced that it has won a pre-production license deal with a major Automotive Tier 1 partner. This has been entered into under the terms of a pre-existing non-exclusive Collaboration Agreement to provide Seeing Machine's Driver Monitoring System (DMS) technology for an ongoing Automotive programme. For this Seeing Machines will receive a non-refundable pre-production license fee of US$5m before 30 June 2020, in addition to future volume based royalty payments for the above mentioned Automotive programme. Seeing Machines will retain all intellectual property rights associated with its DMS technology licensed to the counterparty under the Agreement.
Companies: Seeing Machines
The Coronavirus pandemic is a human tragedy of vast proportions – as well as the terrible human toll, COVID-19 has led to economies across the globe going into physical lockdown and financial freefall. Entire populations are adapting to the “stay at home” edict, to safeguard the vulnerable – and some of these changes will lead to long-lasting or perhaps permanent changes in the way we live or work. This note describes some of our client companies whose business models are well adapted to these changes, or who might see a change in long-term structural demand.
Companies: AMO BGO FDM GAMA KAPE LOOP TERN ZOO
In a remarkable coup for Bango, Korean technology leader NHN Corp is taking control of the Audiens Customer Data Platform (CDP) business by investing £6.5m for a 60% stake in the holding company, Bango Deep Ltd, with a view to scaling up Audiens through support and technology into a truly world-class CDP provider. NHN is further securing and deepening its relationship with Bango itself by taking 3.5m Bango ordinary shares (4.7% of the expanded Bango) for £3.2m. This is an excellent deal for Bango, sealed at a time of restricted travel and tightened commercial prospects and possible only because Bango is already partnered, and trusted by the Korean technology giant. The deal takes a non-core, near-breakeven business off the Bango P&L and sharpens management focus, while maintaining a substantive interest in what – now backed by NHN’s cash, expertise and data technology – should become a major global player in the lucrative, high-growth CDP market. On top of this, Bango strengthens its balance sheet with a cash injection and the strategic partnership between NHN and Bango itself is substantively deepened. We adjust our FY 2020 forecast for the change in Audiens accounting status and the cash injection, and highlight the value.
The company announced several appointments that have strengthened the management team after seven acquisitions over the past two calendar years. We believe this investment in management should form a strong foundation for the company’s next phase of growth. Alex Siffrin, the company’s largest shareholder, has stepped down from the board to focus on personal priorities
Companies: Centralnic Group
Bango has announced the expansion of its strategic relationship with NHN Corp, the Korean big data giant. NHN is investing £6.5m to take a majority interest in the Audiens business, owned by Bango. For its investment NHN gains a 60% stake in Bango Deep, the Bango subsidiary which owns the Audiens Customer Data Platform (CDP). NHN will inject its data science technology into Audiens to grow it into a world leading CDP. In addition, NHN has also subscribed for 3.5m new ordinary shares in Bango – 4.7% of the group’s existing ordinary share capital. Bango paid approximately £4m for Audiens. NHN is paying £6.5m for 60% of that business. We revise estimates following the announcement to reflect that Audiens will no longer be fully consolidated in Bango’s accounts. We believe the deal validates Bango’s investment in Audiens and represents a significant vote of confidence in both the data monetisation business and in Bango itself, by a highly successful commerce leader.
A strong interim period to January 2020 delivered the expected £26m revenue as reported in the February trading update, with a 31 January net cash balance also of £26m – EBITDA of £5.6m (post IFRS16), and adjusted PBT of £4.6m highlighting a strong performance. The Group has unchanged strategic ambitions – organic growth and M&A, both in evidence in Rail Technology & Services (RT&S) with 13% organic growth and the post period end acquisition of iBlocks. We withdrew forecasts last week due to the impact of COVID-19 on the 2H-weighted Traffic & Data Services business, given the exposure to cancelled large scale summer events, and uncertainty over traffic surveys; however, the potential for the Group is unchallenged when the world normalises. New contract wins, new product launches, new acquisitions and a hearty balance sheet continued to offer significant upside in 1H and post period end. Target price 900p remains based on our FY21 forecasts, which in theory should be consistent with previous forecasts and we look forward to reinstating numbers when the virus dust settles.
Caledonia today announces that it has taken the prudent decision to defer its approval for the payment of the second quarterly dividend (7.5c/sh - $0.9m - 7% of declared Caledonia cash). The Blanket mine in Zimbabwe remains in operation (at a slightly reduced capacity to secure Covid-19 social distancing) and the mine site remains well-stocked with supplies, so despite the current difficulties getting supplies from South Africa production at the mine can continue for some time to come; 2-3 months in our opinion, if the supply chain from South Africa ceased altogether. Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning, the group has released an update in light of COVID-19. The Board reports that it has taken swift action to re-engineer processes to adhere to government guidelines, whilst maintaining client service levels. Q1 2020 trading is reported to have been ‘broadly' in line, with revenue growth of 40% from continuing operations and outstanding orders to ship to customers in the coming months. Q1 was cash neutral, which follows on from the RNS on 5 February, of a net cash position of £849k as at 31 December 2019.
Companies: Caledonia Mining Corporation Plc Com Shs Npv Touchstar
Yesterday’s trading update confirms that IQE’s FY19 results will be in line with the revised guidance it provided in November when the full extent of the impact of the US-China trade war became visible. We have cut our FY20 revenue estimate by 6%. In IQE’s case the impact of COVID-19 on global handset demand is likely to be softened by gaining share in both the wireless and photonics markets. However, the full effect of the pandemic on the global economy and IQE’s business remains to be seen.
FIH's year end update this morning reveals an inline performance in the year to March 31st 2020, notwithstanding disruption over the past six weeks, and also updates on the respective likely effects of Covid-19 on its three business streams, with greater relative resilience seen in the Falklands business and bigger impacts already apparent on the two UK-based businesses, not surprisingly. We note that PTY, in line with requests to companies from the FCA and FRC, is formally delaying its results announcement for FY2019A (year to December), which would in the normal course of events have been published today. A new release date will be issued in due course. Re 2019, the company highlights its update from January indicating inline P&L performance in FY19A combined with good progress on cash resulting in an anticipated net positive cash situation at the year end.
Companies: FIH Group Parity Group
WANdisco recently confirmed that its Fusion product is on track for full availability with Microsoft ‘in the next few weeks’. In this audio clip CEO David Richards describes the commercial implications of this and how the business is navigating the challenges of COVID-19. WANdisco’s proprietary replication technology enables its customers to solve critical data management challenges created by the shift to cloud computing. It has established partner relationships with leading players in the cloud ecosystem including Amazon and Microsoft.
Software stocks that enable corporates to sell more, improve quality, cut costs, save employees time and/or reduce their ‘carbon footprints’ are ideally placed in today’s tech/ESG world. Cue Elecosoft, who said this morning that 2019 PBT would be “ahead of LY” (£3.67m) and “in line with expectations” (consensus £4.1m) - despite being impacted by forex (ED est -2%, weaker SEK vs £) and macro uncertainties (eg Brexit, General Election and subdued Eurozone). We think this is a creditable outcome. Not least because it underlines the resilience of the business - while the results are actually a touch better than our previous (bottom of the range) profit & cashflow estimates, albeit with revenues a smidgeon shy.
H120 numbers show continued 15% organic revenue growth with a slight shift in the mix to direct sales from connectors and the continued themes of strong (33%) International growth, strong growth in new Functionality and rising (+14%) ARPU. At present just about 20% of group sales come from clients using more than one communications channel, giving dotDigital a considerable omni-channel cross-sell opportunity.
Companies: Dotdigital Group
Cerillion is a fast-growing supplier of software solutions (OSS/BSS) to the telecoms industry. Over the past two years it has outgrown the sector, whilst increasing EBITDA margins and cash flow. The company is now at an inflection point where it is signing more high value contracts due to its growing reputation, product suite and support capabilities. In the short-to-medium term we view coronavirus-related spikes in data traffic as a positive driver, as network operators are forced to maintain or expand investment plans. Longer term, we see the business as an attractive M&A target while also benefiting from structural changes in the telecoms industry that increasingly favour smaller and more flexible suppliers. We initiate with a Buy recommendation and 225p target price.
Bango has announced FY 19 results in-line with the December-19 trading statement and our forecasts. The business has grown strongly throughout the Brexit hiatus, notably FY 19 saw the key End User Spend (“EUS”) metric double once again to £1.1bn. With the global macro-economic situation continuing to be impacted by the Coronavirus, we believe market attention will focus on the outlook. The release confirms that Bango has no supply chain dependencies, its products are available without interruption. Furthermore, management has re-iterated its expectation for continuing exponential growth in EUS. We maintain FY 20E estimates following the release and will revisit as visibility on “stay at home” behaviour improves.