Small Cap Feast
FRP Advisory Group, UK professional services firm specialising in restructuring advisory. Raising £80m (£20m primary). Expected market cap £190m. Compound annual growth of 16.4 per cent. in revenue and 10.9 per cent. in operating profit since the beginning of FY17.o Strong average EBITDA margins of 51 per cent. over FY17 to FY19, and consistently strong cash conversion Inspecs, a UK designer, manufacturer and distributor of eyewear frames to global retail chains announces its intention to IPO onto AIM raising £94m with a market cap of £138m. Admission expected 27th February. FY Dec 2018 numbers show revenue of $57m and underlying EBITDA of $11m. The Proof Of Trust has announced its intention to list on the Standard Market. The Blockchain based business, owns patents to a protocol which facilitates dispute resolution based upon smart contract disputes. Transaction details TBC. DRI Healthcare—investment company focused on investments in healthcare Royalty Assets looking to raise $350m. Due 11 Mar. Ninety One –proposed demerger and public listing of Investec’s global asset management business on LSE and JSE. 30 Sep 2019 AUM £121bn. Sale of existing shares. Expected free float of >60%. Due 16 march. Cabot Square—Closed ended investment fund focussed on alternative assets and asset manager. Looking to raise £200m. Will target investment opportunities that are expected to generate an attractive risk adjusted return and that can also make a positive ESG impact by focusing on some of the biggest challenges facing societies and economies. Due 14 Feb. The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m. Due 28 February. Incanthera—Specialist oncology company focused on transforming cancer treatment by creating environments in which cancer cannot survive . Due 28 Feb. Zapp Scooters, a developer and manufacturer of electric two-wheeled vehicles announced its intention to IPO on the NEX Exchange Growth Market. The Company intends to raise up to £3.5m. Admission is expected to occur on NEX in February 2020.
CALL TSTL BOKU EQT KRS CRV JAY TWD PHC ALBA
24 Feb 20
Small Cap Feast
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 mention of bottom line and a suggestion that funds raised would provide an exit to private equity shareholders and the repayment of debt. Offer TBA.
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04 Dec 19
We remain selective; Buy Consumer Tech
We continue to take a selective stance on stocks within the small cap Technology space. The sector’s equity performance was lacklustre over 2019, rising 4% and keeping pace with the All-Share index (relative to multi-year periods of outperformance) as investors took a cautious stance on geopolitical and macro risk. We believe cautious sentiment is likely to dominate trade during the first half of 2020 and maintain our preference for consumeroriented players, consistent with our Arden Thematic Technology framework. Our top picks for 2020 are CDM, EVRH*, SUMO and VNET.
CALL CDM FDEV KWS SUMO TM17
20 Nov 19
Twilio reports weak guidance, Apple forecasts strong holiday sales, FB reports uptick in users
Shares of cloud communications company Twilio fell as much as 17% on Wednesday after the company gave lower-than expected quarterly earnings and revenue guidance. Earnings: Excluding certain items, 3 cents per share, vs. 1 cent per share as expected by analysts, according to Refinitiv. Revenue: $295.1 million, vs. $287.8 million as expected by analysts, according to Refinitiv. Twilio's revenue grew 75% in the fiscal third quarter, which ended on September 30, according to a statement.
CALL PHD KNOS ESYS
31 Oct 19
SAP founder/CEO steps down, Boeing partners with Porsche, Ford launches in-car VR
Bill McDermott stood down on Friday after a decade building up SAP as the world's leading enterprise software company, handing the task of completing its transition to cloud computing to new co-CEOs Jennifer Morgan and Christian Klein. SAP announced the management overhaul, with immediate effect, after rushing out third-quarter results that showed it gaining traction in its drive to offer a more streamlined range of services and boost profitability. The company’s stock has climbed 21% this year. It’s up 75% in the past five years, topping rival Oracle, which is up 46%, and the S&P 500′s 54% gain.
CALL EVRH TRAK CPX ECK IMMO LOOP NET SEE TCM TRCS QTX VRE
11 Oct 19
Health insurers offer Apple Watch, Samsung reports weak guidance, Oracle expands cloud business
Devoted Health, a start-up health insurer targeting seniors with its private Medicare plans, says it is the first to offer Apple Watch as a fitness benefit to its members. Apple has been talking to plans like Devoted for months, as CNBC previously reported, about subsidizing the cost of Apple Watch. For Apple, working with Medicare Advantage plans offers a big potential boost to device sales because seniors are increasingly adopting smartphone technologies and therefore might be interested in a smartwatch.
CALL ECK LOOP NET
08 Oct 19
H1’19 results: Good user growth, £12m placing
CloudCall reported its H1’19 results this morning featuring robust revenue growth of 30%, driven by users and recurring revenues. The group has also announced a £12m offer (43% of mkt cap) at 100p, with net proceeds aimed at bolstering the balance sheet and leveraging growth opportunities. Pointedly management target £50m of sales by 2025. While it is difficult to find such magnitude and consistency of growth in the market at present given macro pressures, the magnitude of the placing and rate of investment required to sustain growth lead us to take pause. We place our recommendation under review pending a more substantial analysis of the group’s operating model.
30 Sep 19
Stripe valued at $35bn, Datadog pops 39% on debut, Rivian big Amazon order
Stripe Inc said on Thursday it is raising $250 million in its latest funding round, which values the payments start-up at $35 billion, a dramatic 56% surge from a previous valuation at the start of the year. The latest valuation puts Stripe in the same league as home rental giant Airbnb Inc, which is also planning go public in 2020. Stripe has received strong positive feedback from our private FinTech contacts. Meanwhile, the IPO pipeline for 2020 is already heating up.
CALL TRAK BGO BOKU ECK EQLS LOOP NET QTX SEE TECH TCM TRCS
20 Sep 19
WDAY wows, good for KNOS? Didi launches AVs; Voice activated Nike trainers
We highlight the strong Workday numbers overnight which provides cause for enthusiasm for growth equities, the SaaS software sector and most specifically within AIM, could augur well for Kainos, given their close partnership on consulting and implementation. Beyond the beat, most noteworthy comment was that management saw no impact from Brexit as yet nor the trade tensions in the US and China. With enviable growth rates of 32% in the quarter, we highlight few names in AIM such as CloudCall* offer such compelling opportunity.
CALL 7DIG TRAK ESYS FST KNOS PHD QTX SAG SEE TRCS
30 Aug 19
VMware spends $5bn on cloud security, Salesforce provides strong outlook, Amazon acquires Indian supermarket chain
VMware said on Thursday it bought two providers of cloud security and cloud developer services in separate deals valued at about $5 billion, as it expands offerings for corporate clients. VMware bought Pivotal Software Inc in a $2.7 billion deal. Separately, VMware said it would buy software maker Carbon Black Inc for about $2 billion in cash.
CALL KAPE AVST CNS DFX ECK ECSC FLX IGP LOOP NCC NET OSI SOPH
27 Aug 19
FB reports better than expected results, SoftBank to invest $40bn in 2nd fund, Salesforce partners with Alibaba
Facebook reported better-than-expected earnings and revenue on Wednesdays as advertisers continued flocking to the site. User growth at Facebook, which owns Instagram and WhatsApp, was in line with expectations. The social media giant also announced on Wednesday, a $5 billion settlement with the Federal Trade Commission following the 2018 Cambridge Analytica scandal, in which the data of 87 million Facebook users was improperly accessed.
CALL BABA FB CRM
25 Jul 19
Quarterly Research Outlook - Summer 2019
In January, we provided a list of 11 stocks for 2019 that we believed would perform strongly with attractive catalysts that could lead to material outperformance. In this Quarterly Research Outlook, we revisit these views, analysing what has happened and how the remaining six months of the year could play out.
CALL AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CSRT TIDE CYAN DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR HYR IBPO IOG INDI JHD JOG KAPE KEYS KCT KGH LAM LIT LOK MACF MANO PCA PANR PXC PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG SOM TWD TRAK TSG TRI VNET VTC ZOO ZTF
23 Jul 19
Cenkos: CloudCall Group Plc - 30% Growth
CloudCall is expected to deliver revenue growth of +30% YoY in the six months to June. The company is making good headway into large enterprise accounts although sales cycles are somewhat elongated in this market segment. This growth performance continues the strong trajectory seen last year but is slightly below our run rate projections for 2019E and we are revising our forecasts accordingly.
16 Jul 19
Small Cap Feast
Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m. Uniphar, a diversified healthcare services business with a workforce of over 2,000, is looking to join AIM. Raising EUR135m with market cap on admission of EUR309.6m, expected 17 July 2019. Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.
CALL BIRD ABC KDR EMAN BST SCE ZEG SAG FUL
16 Jul 19
H1’19 trading: Good progress, est. trim on timing
CloudCall published a trading update for H1’19, reporting strong commercial progress and reiterated management guidance on net user addition run-rate of >1,000/month for the year. A confluence of factors has led us to rebase our FY19E-FY20E nos for slight delays from: (1) a staggered rollout of the group’s recent enterprise contract win; and (2) time taken to implement SMS within MS Dynamics; alongside (3) additional headcount to smooth enterprise onboarding. However, with liquidity robust post the refinancing of the group’s revolving facility, we continue to view our thesis as intact. We reiterate our Buy rating on the shares as one of our top picks of 2019, seeing substantial upside potential to our revised 260p PT.
16 Jul 19
Hardware warnings; Buy sales visibility (CALL, KAPE, VNET)
We highlight this morning’s profit warnings from IQE (no coverage) and Nanoco (no coverage) as further support of: (1) our Year Ahead 2019 thesis to avoid hardware exposure as the most likely source of downgrades, and gain exposure to high-visibility recurring revenues and stronger balance sheets; and (2) the apparent end of the smartphone supercycle. We reiterate our Buy ratings on CloudCall* (CALL LN, PT 270p), Vianet (VNET LN, PT 142p) and Kape (KAPE LN, PT 120p) as our preferred names to exploit our key themes for 2019.
CALL VNET KAPE
21 Jun 19
Significant new CRM integration & partnership
CloudCall has announced a significant new integration this morning, with The Access Group’s CRM system called ‘Profile’. We believe this is a positive development and anticipate an upbeat response from the market in early trading. Leveraging the group’s ‘Unify’ architecture, the integration will both expand CloudCall’s potential market by the 500+ companies (with c.15,000 active users) that have deployed Profile and allow the group to benefit from marketing support from Access.
12 Jun 19
Pivotal halves on guidance; China licenses 5G networks
Today we highlight: Pivotal’s recent reporting where disappointing guidance on slowing customer adoption of its cloud product surprised the market. Meanwhile, China has granted four 5G licenses to domestic operators overnight, post a trial phase.
06 Jun 19
Enterprise contract win announced; Reiterate Buy
CloudCall announced a contract win worth £1.1m from a major US staffing firm, alongside a robust update on the group’s performance year to date. Given management’s existing guidance on anticipating enterprise-level deals during FY19E, we expect the contract to underpin our current revenue growth forecast of 38% in FY19E. CloudCall’s shares have risen 35% YTD and now trade on 2.1x FY19E EV/sales. We believe the news will be well-perceived in early trading and support the path to our target price of 270p. We reiterate our Buy rating.
04 Jun 19
Small Cap Feast
Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Alumasc Group plc, the prem ium building products, system s and solutions group, has announced its intention to m ove from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019
CALL BHRD BILN TRP KRS PRES IGAS PVR RENX SWG
04 Jun 19
Competitor results augur well for CloudCall
We reiterate our Buy rating on CloudCall as one of our key picks of 2019. Both RingCentral (RNG US) and Five9 (FIVN US) reported strong results in recent weeks, beating consensus expectations, with robust guidance. We believe major themes from reporting season so far (sustained 30% revenue growth, record orderbooks and strong client appetite) support our conviction on CloudCall. The shares have rallied 54% YTD, outperforming the AIM Technology Index and its peers, but still trades at a substantial discount to the peers’ average of 7.2x FY19E EV/sales. We see further go, underpinned by structural trends of enterprises seeking Efficiency, as per our Thematic Framework.
08 May 19
Quarterly Research Outlook
We’re just over three months in to 2019 and we’ve seen a 10% UK market rally, retracing much of the Q4 decline, such is the nature of fickle market sentiment. That said, many of the issues we wrote about three months ago that were impacting markets remain: notably Brexit, trade wars, geopolitics and global monetary policy. The 2019 rally thus far feels somewhat fragile, with competing forces of optimism on a potential trade deal which could underpin the rally, against the deterioration in underlying economic data that could ultimately undermine the recent market gains. In this context, we look at what the lead indicators and the market are telling us about the industrial cycle and the stocks most exposed to various industrial trends. The Q4 derating in short cycle industrials and autos had been vicious and while these sectors have seen a more solid footing in 2019, with earnings downgrades being priced in, it will likely take a trough in lead indicators before short cycle stocks can start to perform again and re-rate relative to the market.
CALL ARS CYAN HYR LIT SOM ABBY AMS AMER ANX ATYM AVON BLVN PIER BUR CGS CAML CSRT TIDE DTG DEMG EMR FPO FST GTLY GENL INCE GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO INDI JHD JOG KEYS KCT KGH LAM LOK MACF MNO MANO MOD MKLW OXIG PCA PANR APP PXC PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TRAK TRI VNET VTC ZOO ZTF
11 Apr 19
Cenkos: CloudCall Group Plc - US enterprise opportunity
A sharp rise in users is driving double-digit revenue growth. Enhanced functionality, growth in the installed base and new routes to market are materially enlarging CloudCall's addressable market. The company is continuing to invest in order to exploit the opportunity presented and we are Buyers of the strong growth momentum.
27 Mar 19
FY results inline; realigning model & retaining Buy
We believe CloudCall continues to present a compelling combination of US-centric channel partnerships, a low churn/high visibility business model and 32% sales CAGR while trading at a discount to global peers. FY results were inline and the outlook statement upbeat. We have refreshed our model to incorporate FY18 themes, guidance on investments to bolster the platform (increasing short term costs) and management’s accelerating channel partner strategy. Our revised PT of 270p implies substantial upside potential. We retain our Buy rating.
27 Mar 19
Competitor highlights market strength
We believe the positive trading update from one of CloudCall’s key USbased competitors, Ring Central, highlights the ongoing strength of the UCaaS market. RingCentral’s Q4 results and guidance beat analyst expectations, driven by mid-sized enterprise clients and supported by a buoyant market environment. We believe this augurs well for CALL. Enterprise engagement is a key area of focus during 2019 and the beat adds to our confidence over the 30% revenue CAGR we forecast on a midterm horizon. The shares trade on 2.2x FY19E EV/sales. Our PT implies material upside and we reiterate our Buy rating.
13 Feb 19
Quarterly Research Outlook
The market has not faced quite so many conflicting challenges for a number of years, whether related to global geopolitics, trade wars, ongoing Eurozone issues or the “will they, won’t they” saga of Brexit. In our Best Ideas, we sought to highlight stocks that present investors with interesting opportunities following recent market moves. Those stocks, we believe, warrant investor attention, in many cases for uncorrelated or stockspecific reasons, regardless of the near-to-medium term market direction. These stocks, in general, represent attractive and well-managed businesses or assets, with share price catalysts and where valuations or recent stock performance provide investors with a good entry point.
CALL 7DIG ABBY AMS ANX ARS ATYM AVON BLVN PIER CGS CAML CSRT TIDE DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KEYS KCT KGH LAM MACF MOD MKLW OXIG PCA APP PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TWD TRAK TRI VNET VTC ZTF
31 Jan 19
Balance sheet bolstered: Buy
We believe CloudCall’s ABB to raise £2.4m this morning has substantially de-risked the balance sheet and clarified the investment case. CloudCall’s shares now trade on 2.2x FY19E EV/sales, at a 9% discount to the AIM Tech sector, in spite of superior sales growth (38% FY19E vs. 13%). We believe this is unwarranted in light of an improving risk-reward balance and a compelling growth story. We reiterate our Buy rating.
30 Jan 19
Cenkos: CloudCall Group Plc - Excellent partner testimonial
The Capital Markets Day highlighted the positive market dynamics and large addressable market CloudCall is successfully selling into. Customer testimonials point to considerable potential upside in both the US and Europe. New products and future CRM partnerships enlarge this still further. We remain Buyers.
21 Jan 19
Technology Year Ahead 2019
With Technology having outperformed broader equity indices – on both sides of the Atlantic - for close to a decade, a perfect storm of US-China/Brexit trade frictions, cautious consumer behaviour and semiconductor earnings peak in the context of weakening macro indicators in the UK and Europe, have brought on a robust correction. We see many of these factors as likely to overspill into 2019, establishing a cautious mood into H1.
Cloudcall Group Vianet Group
21 Jan 19
CMD: Capitalising on Momentum
CloudCall’s Capital Markets Day presentations featured a breakdown of 2019’s growth drivers, Q&A sessions with key channel partners Bullhorn and Microsoft, and a breakdown of the group’s SaaS metrics. Our key takeaways are on strength of the Bullhorn partnership, the scale of the opportunity with Microsoft and upsell potential from messaging features. We reiterate our Buy rating; CloudCall is one of our top picks for ’19.
18 Jan 19
Robust FY trading update
We believe CloudCall’s strong FY trading update reinforces a compelling combination of US-centric channel partnerships, a low churn/high visibility business model and >30% sales CAGR at a discount to global peers. CloudCall’s shares have fallen 53% off their May’18 peak and now trade on 1.7x 2019E EV/sales. Our confidence in the outlook is growing and we believe the group’s shares remain materially underpriced. We reiterate our Buy rating and look forward to the CMD on 17 January.
15 Jan 19
Small Cap Feast
Circassia Pharma (CIR.L) - specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb. 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.
CALL ITX GYM FORT SLN EDEN KAPE CLIN TPG TLOU
15 Jan 19
Arden Research best ideas 2019
We present our best research ideas for 2019 in this report seeking to provide investors with some value opportunities highlighting stocks that we believe warrant investor attention, regardless of near-term market direction. These stocks, in general, represent attractive and well-managed businesses or assets, with share price catalysts and where valuations or recent stock performance provide investors with a good entry point.
CALL ANX ARS HUR JHD JOG KCT MACF RBGP SOLG VNET
09 Jan 19
Quarterly Research Outlook
The June IPO of Knights Group Holdings, a Top-100 regional law firm, marked the fifth entrant to the burgeoning UK-listed legal sector. Following recent expansion of our coverage across all five listed legal firms, complemented by coverage of three broader support services peers with exposure to the sector, we revisit and build upon our views on this rapidly evolving sector.
CALL ARS GTLY GENL KEYS KGH MNO RBGP TWD 7DIG ABBY AMS AMER ANX ARS ATYM AVON BLVN PIER CGS CAML CSRT TIDE DTG DEMG ELM EMR FPM FPO FST GTLY GENL GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KEYS KGH LAM MACF MNO MKLW NAH OXIG PCA APP CAKE PDG RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TWD TRAK TRI VNET VTC ZTF
23 Oct 18
Cenkos: CloudCall Group Plc - Strongly undervalued
Vonage has announced that it is acquiring one of CloudCall's key competitors, NewVoiceMedia. This acquisition provides strongly favourable read-across valuation data. The CloudCall share price has now reached a level which is disconnected with anything approaching fair value. We are strong Buyers.
24 Sep 18
Cenkos: CloudCall Group Plc - New CRMs to drive additional growth
The 30% revenue expansion secured in H1A has been driven by voice-only products. H2E will see a broadened launch of the unified communications platform and further growth opportunities. The recent fund raising has helped finance the development of a scalable architecture and widen the number of CRM integrations which should lead to supplemental revenue expansion thereafter. The over-sold stock price is not fairly valuing the enlarged addressable opportunity in our opinion.
18 Sep 18
All on track for ramp-up in H2’18
CloudCall’s performance in H1’18 was robust, as per the pre-release, with management confirming its H2’18 outlook and target to break-even during FY19E. Our estimates are unchanged. On strategy, the Phase II roll-out of UCS is due to go live in Q4’18, positioning the group to accelerate into FY’19E. We reiterate our Buy rating and continue to see compelling upside.
18 Sep 18
Quarterly Research Outlook
In Q2, UK equities regained some of their poise after the draw down in Q1, although uncertainty around Brexit continued to grab the headlines. On the back of this, investor concern about the UK economy has been understandable in recent months given a number of negative data points. However, we see reasons for optimism for UK Plc with wage growth supporting an improving outlook for the consumer and business investment holding up. That said, continuing UK political disruption clearly remains a risk going forward.
CALL AMER EMR HMI JOG PDG ABBY AMS AVON BLVN PIER CGS CSRT TIDE DTG DEMG ELM EMR FPM FPO GTLY GENL INCE GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG LAM MACF MKLW NAH OXIG PCA APP CAKE PDG RBW REDD RSW RNO RKH ROR SUS SCPA SHG KCT TRAK TRI VTC ZTF
18 Jul 18
Cenkos: CloudCall Group Plc - Calling an unchanged market opportunity
The rapid +31% YoY revenue growth delivered in H1E did not include any meaningful contribution from the recently expanded sales headcount. Indeed, this growth rate would have been higher and in line with our forecast of +36% had new hires impacted in a timely manner. While we reduce our forecasts for 2018E in relation to this softness, we continue to expect an exit run rate this year strong enough to support an unchanged 2019E.
17 Jul 18
Strong H1’18; rebasing FY’18 on timing
CloudCall’s performance during H1’18 was strong but slightly weaker than our expected run-rate on slower recruitment of personnel to its growing sales team. Our FY18E estimates have been cut on the mismatch between rising costs due to continued investment in growth and the lag to achieve top-line performance, but our price target remains intact. We highlight the impact is localised to FY18E and the group’s product, sales and marketing teams are now in place to support rapid commercialisation. We continue to see substantial upside potential to our PT of 300p, particularly given the shares’ recent weakness, and reiterate our Buy rating.
17 Jul 18
ARPU upside in 2019E
Today’s launch of a full unified communications platform significantly enhances customer functionality. By integrating messaging and voice functionality into customer CRM systems, recruiters can now engage with candidates on an omni-channel basis. The premium release version of this platform has the capacity to significantly move up ARPU and therefore earnings going forward.
17 May 18
Small Cap Brunch
Codemasters Group— video game developer and publisher, specialising in high quality racing games. Offer TBA. Seeking £15m in primary. Due 1 June. Strongbow Exploration (TSX:SBW) intends to dual list on AIM. Holds rights to the South Crofty underground tin mine ("South Crofty"), a former producing tin mine located in the towns of Pool and Camborne, Cornwall . The project is estimated to require the Company to raise £25 million over the next 18 months to progress to a production decision. Offer TBS. Due June. Maestrano Group, a software company with operations in Australia (main country of operation), the UK, US and the UAE, is looking to join AIM. Offer TBC, expected late May. Yew Grove REIT—newly formed Company will pursue its investment objective by investing in a diversified portfolio of Irish commercial property. Offer TBA. Due Late May Team17 Group -video games label and creative partner for independent developers. Since 2014, delivered a revenue CAGR of 69% (31 December 2015 to 31 December 2017), with revenues of £29.6m and Adjusted EBITDA of £12.9m. Offer TBA Serinus Energy -international upstream oil and gas exploration and production company. Its principal assets are located in Romania (development phase) and Tunisia (production phase). Raising c.£10m at 15p. Due 18 May. Mkt cap £32.6m
CALL ZOL ARIX LOOP ELCO STAF PMP KAPE MED WJA
17 May 18
Solid FY’17 but cutting FY’18E EPS on higher investment
CALL’s solid FY’17 results continue to underpin our conviction. Growth continues at pace in all regions assisted by rising internal efficiency while the outlook statement points to management confidence, good momentum on product development and support from regulatory trends. While we have cut our FY’18E numbers on accelerated investment in growth (and FY19-20E on lower R&D credits – see detail inside), we view management’s FY19E aspiration of ~break-even and cash trough as intact, with tangible upside risk from further M&A by Bullhorn and improving ARPU from new products launches in the mid-term. We reiterate our Buy rating and retain our PT of 300p.
20 Mar 18
Bullish on 2019E
CloudCall sustained a 40%+ revenue growth rate last year. The opportunity for deploying the placing proceeds is happening at a rapid pace and we revise our forecasts. The payback from this investment will be felt from 2019E onwards and should support a continued 35%+ compound expansion in revenues. The rating of the stock is well below fair value in our opinion and we are Buyers.
20 Mar 18
Initiating coverage with a Buy rating & 107% upside
CloudCall is a cloud-based unified communications provider. We believe deepening channel partnerships, a new unified platform roll-out and the recent equity placement have positioned CloudCall for a substantial acceleration that is yet to be fully appreciated by investors. Our forecasts expect short-term sales growth of c.33% FY17-20E to outpace the market. We initiate coverage with a Buy rating and a PT of 300p, implying 107% upside potential, based on the peer group’s trading multiples. Our cost analysis and the board’s experience with similar, highly successful companies (dotdigital, AIM: DOTD) underpin our conviction. In our view, the shares could reach 400p under more bullish scenarios.
07 Feb 18
TMT Update 22.01.18 (CCT.L, GFIN.L, TEK.L, CALL.L) RM
The Character Group plc* (CCT.L, 437p/£92.5m) Trading update: FY18 starts on track (19.01.18) | Gfinity plc* (GFIN.L, 24p/£52.4m)ARES joins Elite Series (19.01.18) | Tekcapital plc* (TEK.L, 22.5p/£9.6m) Lucyd achieves minimum funding (22.01.18) | CloudCall plc (CALL.L, 173p/£39.1m) Trading update: FY in line with upgraded expectations (18.01.18)
CALL CCT GFIN TEK
22 Jan 18
Small Cap Breakfast
Belluscura— Provider of premium medical devices at value prices to address part of the global unmet need for affordable, premium quality medical devices. Raising £7.5m to £10m. Offer TBA. Due early Dec Ten Lifestyle Hldgs - Technology-enabled lifestyle and travel platform providing trusted concierge services to the world's wealthy. Net revenue increased from £20m in the year ended 31 August 2015 to £33m in the year ended 31 August 2017, a compound annual growth rate of 29%. Offer TBA, expected 27 Nov 2017. Miriad Advertising—Global video advertising company incorporated in 2015 and is engaged in the development of native invideo advertising . 2016 rev £0.7m and £7.3m operating loss. Offer TBA Keystone Law Group— full service law firm with over 250 self-employed lawyers . Due 27 Nov. Raising £10m at 160p. Mkt Cap £50m. Revenue of £25.6 million and EBITDA of £2.1 million. In FYJan17. Beeks Financial Cloud -niche cloud computing and connectivity provider for automated (algorithmic) trading in Forex and Futures financial products . Raising £7m. Mkt Cap c.£24.5m. Due 27 Nov. FYJun17 rev £4m. Profitable at operating level. 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. 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 mid November.
CALL RGL IDEA MAIS MED TILS YGEN MOGP NTOG ANR
23 Nov 17
Increasing the rate of expansion
The Placing provides additional capital to increase the rate of expansion. Integration with Microsoft Dynamics materially increases CloudCall’s addressable market and the Placing proceeds will increase sales activities around this and the other supported CRM vendors. The stock has performed well but equally the stock still trades at a discount to our software peer group and we continue to be Buyers.
17 Oct 17
Unified architecture ready for launch
The strong organic growth reported in H1A has capacity to be enhanced by CloudCall supporting a higher number of CRM vendors going forward. This materially enlarges the addressable market. Breakeven is on track for Q3 next year and we believe that milestone will be instrumental for a re-rating for this undervalued recurring revenue stock.
11 Sep 17
TMT UPDATE - 17.07.17 (FBT.L, CALL.L, CCT.L, AMO.L, FLX.L)
Forbidden Technologies plc (FBT.L, 5.75p/£10.4m) North American pilot opens multiple potential opportunities (12.07.17) | CloudCall plc (CALL.L, 120p/£24m) H1 trading update: accelerating growth and positive KPIs (12.07.17) | Amino Technologies plc (AMO.L, 193p/£138m) Interims: Enable provides interim upgrade and new sales route (11.07.17) | Falanx plc (FLX.L, 7p/£8.8m) Prelims: Increased push into cyber security (10.07.17) |
CALL BIRD CCT AMO FLX
17 Jul 17
Accelerating growth in H1
Growth has accelerated in H1 and CloudCall is on track to at least meet our current forecasts. Bullhorn is the growth driver and CloudCall is being pulled through with its successful penetration into the UK and overseas territories. The US market is the real prize. We can see sharp upside for the valuation of the profitable, recurring revenue business model that is now in sight.
12 Jul 17
Small Cap Brunch
Arena Events Group -provider of temporary physical structures, seating, ice rinks, furniture and interiors. Raising £60m. Mkt cap £63m. Expected on the Chef’s birthday. 25th July.| Altus Strategies—African focused natural resource Company. Offer TBC. Expected Mid July. | Harvey Nash Group— Provider of professional recruitment and offshore solutions moving to AIM from Main. No capital to be raised. Mkt Cap c. £57.8m. | AnimalCare—RTO of Ecuphar NV, a European animal health company. £30m raise. Ecuphar FY16 rev £68.4m, underlying EBITDA £8.9m. Due 13 July. | Angling Direct -Schedule 1 from the specialist fishing tackle retailer in the UK . Raising £9m of which £7.4m new money. Mkt cap c. £27.4m. Due 13 July | NEXUS Infrastructure—£35m vendor sale. Mkt cap £70.5m. Provider of essential infrastructure services to the UK housebuilding and commercial sectors. Expected 11 July. FYSep16 rev £135.7m. | Greencoat Renewables - Schedule 1. Targeting a portfolio of operating renewable electricity generation assets, initially investing in wind generation assets in Ireland. Offer TBC. Due Mid July. | QUIZ— Omni-channel fast fashion womenswear Company intention to float. Due July 2017. Offer TBA | I3 Energy –Schedule 1 Update. Independent oil and gas company with assets and operations in the UK. Offer TBC, Mid July admission. | Verditek— Sch 1 update. The Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission late June | Rockpool Acquisitions—Northern Ireland based Company seeking strong NI acquisition with an international outlook. Raising £1.5m at 10p. Due 5 July. | Hipgnosis Songs Fund investment company offering pure-play exposure to Songs and associated musical intellectual property rights. Prospectus yet to be published. | Impact Investment Trust—Exposure to a diversified portfolio of funds providing SMEs across developing economies with thegrowth capital they need to have a positive impact on the lives of the world's poorer populations. Raising up to $150m at $1.00 Residential Secure Income - social housing REIT raising up to £300m Admission due c.12 July. | Curzon Energy—Report on Proactive Investors of intended LSE float this year with acquisition of coal bed methane assets in Oregon. Looking to raise £3m plus. | NLB Group—financial and banking institution based in Slovenia, with a network of 356 branches. Seeking Ljubliana Stock Exchange listing with GDRs on the LSE. Expected mid June. | Kuwait Energy— has not been able to complete its initial public offering as announced in its Intention To Float of 3 May 2017. However, in light of positive feedback from potential investors, the Company remains committed to obtaining a London listing and continues to explore its options. | Supermarket Income REIT– Up to £200m raise to acquire a diversified portfolio of supermarket real estate assets in the UK, providing long-term RPI-linked income. Due 21 July.
CALL VLG NFC BIRD ESL ORCP MANX MXCT PMI
12 Jul 17
TMT Update 03.04.17 (CALL.L, KBT.L, ELCO.L) RM
CloudCall (CALL.L, 97.5p/£19.9m) Prelims and meeting with management: KPI momentum (28.03.17) | K3 Business Technology plc (KBT.L, 252p/£80.1m) Interims: Difficult H1 (21.03.17) | Elecosoft plc (ELCO.L, 40.5p/£30.3m) Prelims: ICON adds customers and cross/upsell opportunities (27.03.17) |
CALL KBT ELCO
03 Apr 17
KPIs sharply higher
CloudCall’s KPIs are moving sharply in the right direction. End user growth and US revenues in particular have shown strong traction. The delivery issues that hampered it in previous periods have subsided and CloudCall’s knowledge and control of the business is appreciably better. This greatly enhances the predictability in the business model in our opinion and provides confidence in forecasts.
29 Mar 17
Strong H2 and outlook confirmed
The 50% growth rate announced for 2016 will eclipse most reported growth rates in the software sector, in our view. CloudCall has seen continued strength from H1A into H2E and the trading update strikes a positive note on revenue visibility generally. The stock will soon be in sight of cash breakeven and we believe that will be the trigger for a rerating.
10 Jan 17
Audioboom (BOOM.L) | Cloudcall (CALL.L) | Porta Communications (PTCM.L) | S y m p h o n y E n v i r o n m e n t a l Technologies (SYM.L) | Blue Prism Group (PRSM.L) | B e n c h m a r k Holdings (BMK.L) | Bexi mco P harm a (BXP.L) | S t e r l i n g E n e r g y ( S E Y . L ) | AFC Energy (20.75.L) | PHSC (PHSC.L)
CALL PTCM SYM PRSM BMK BXP SEY AFC BOOM
05 Aug 16
Hybridan - Small Cap Wrap
TTR Agreement, 7DIG Contract, ALSP Director Change*, CLIN Agreement, CRX Launch, DEMG New Accounts, DSG Partnership, GLID Share Sale, HZD Agreements, LID Agreement, MDZ Placing*, SAR Board Changes*, SEE Term Sheet, SNTY Contract Win, TAL Trading Update, VRS MoU
CALL TTR 7DIG ALSP CLIN CRX DEMG DSG GLIF HZD LID MDZ SAR SEE ZIN VRS
23 May 16
Loan facility agreed with Barclays
Synety has announced that it has secured a two year loan facility with Barclays. The £900k facility will provide an additional capital buffer for the group’s growth plan and we see this as a strong endorsement of Synety’s business model and performance to date. The recent year end trading update showed strong progress in all key KPI’s with group revenue more than doubling to £3.3m. The recently implemented sales and marketing strategy is showing strong initial results and this facility gives the group further breathing space, on top of the c.£1.6m net cash on the balance sheet as at December 2015. We continue to believe that, with sustained good execution, the group’s leading CloudCall product is well placed to gain significant market share in the attractive cloud telecoms market.
17 Feb 16
Revised strategy delivering
Synety has released a trading update for the year to December 2015 showing strong progress in all key KPI’s. Group revenue more than doubled to £3.33m, slightly ahead of our £3.2m forecast, with net cash at the year-end also coming in ahead of expectations at £1.6m (N+1Se: £1.3m). Synety announced its revised strategy in April 2015, focusing on larger customers, cash generation and improved sales processes, and we are encouraged by the group’s performance since then. We continue to believe that, with sustained good execution, the group’s leading CloudCall product is well placed to gain significant market share in the attractive cloud telecoms market.
20 Jan 16
Synety has announced a number of changes to its Board as well as an increase in senior sales presence in the US. Peter Simmonds will become Non-Executive Chairman (from NED) with Simon Cleaver appointed as CEO (currently Executive Chairman). Current CEO Mark Seemann will remain on the Board as President and Co-Founder. The group has also announced that Andrew Jones, Group Sales Director, will be moving to Boston on secondment to take charge of the US subsidiary. Synety embarked on its revised strategy in April and we believe that these changes are a continuation of the positive strides the company has been taking over the past six months. In particular we believe that the addition of Andrew Jones to the US operation leaves the group better placed to capitalise on the significant opportunities which exist in the region.
01 Dec 15
Revised strategy prioritises sustainable growth
Synety has released interim results for the six months to June 2015 showing 37% h-o-h revenue growth and a reduction in opex costs. The group had net cash of £3.0m at the half year end which we believe will be sufficient to reach break-even on the current trajectory. A revised strategy focusing on larger customers, cash generation and improved sales processes has been implemented and is starting to see results. We reinstate forecasts to reflect the change in strategic emphasis and anticipate an impressive 3 year revenue CAGR of 81%, with break-even reached in H2’16.
15 Sep 15
CLOUDCALL GROUP PLC (CALL LN) | IQE PLC (IQE LN) Solid H1 paves the way for another good year | MIDATECH PHARMA PLC (MTPH LN) A golden opportunity | RENEURON GROUP (RENE LN) Funded to H1 2019 | RESTORE PLC (RST LN) First step in restoring confidence | WILMINGTON PLC (WIL LN) Full year slightly ahead and good outlook for FY16
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15 Sep 15
UK Tech Sector: Sleeping giant or hibernating bear?
Investors can be forgiven for getting excited about the global tech sector with the recent news from the NYSE that another company has gone flying out the tech IPO gates; this time it was internet domain behemoth, GoDaddy. The company raised $460 million as part of the IPO and with the shares rallying more than 30% on their first day, reached a valuation of around $6 billion. Considering the company lost $143 million last year it shows us the US tech boom is far from over.
CALL GLS EYE YGEN BRY WAND WTG SMRT WJA
21 Apr 15