Hybridan Small Cap Feast - 29 July 2024

29th July 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: Delistings: Nightcap (NIGHT.L) has left AIM R&Q Insurance Holdings (RQIH.L) has left AIM What’s baking in the oven? ** Our daily digest of news from UK Small Caps If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe m

Morning Note – 29 July 2024

Executing against a long-term strategy

As per a full-year update, DOTD expects to achieve +9% cc. organic growth to £79.0m in FYJun24 (split +11%/+7% H1/H2) in line with expectations (£78.7mE) and also consistent with FY23’s +10% growth. While a pleasing outcome, this doesn’t fully reflect how DOTD has broadened its value proposition to become a more strategic/end-to-end martech vendor, while also increasingly serve the larger end of the SMB market and internationally so. This progress is however captured through +15% organic ARPC gr

Super sizing it

Morning Note – 5 March 2024

dotDigital - Strong interims leave upgrade potential

DOTD’s interims are in line with expectations with a mild 3% upgrade to adj PBT and adj EPS from higher interest income. Revenue delivery echoes the January trading update, demonstrating the successful combination of organic and acquired growth, with 15% group revenue growth (vs 13% FY target) in the six months to December 2023. Organic revenue growth of 11% (at constant currency: 9% reported) was boosted by the contribution from Fresh Relevance, acquired in September, adding c£1.9m revenue (Cav

Strength in depth

H1 revs are consistent with Jan’s update: +15% y/y to £38.7m, reflecting improved organic growth (+11% y/y) as all geographies grew, while DOTD also saw a maiden contribution from Fresh Relevance (‘Fresh’). Meanwhile - new today - adj. PBT performed better still: +16% y/y to £8.9m, as ‘core DOTD’ margins grew. This combination of strong operational execution, product improvement/enhancements (achieved through Fresh & organically) and margin improvement, all provide significant optimism, both for

Hitting the right notes

Improving growth, strategic bets paying off

+11% cc. organic H1 growth represents a meaningful improvement on the comp. (c.+7%) driven by growth in all regions and also DOTD’s broader product portfolio, which now includes a CXDP, with personalisation capabilities (thanks to Fresh Relevance). This deeper/broader offering is key to continued cross-selling, while also should enable the pursuance of larger new customers. Success in these regards is reflected by a further 8% growth in ARPC in H1. At a Group level, sales grew +15% to £38.7m, po

Morning Note – 31 January 2024

In the zone

Morning Note – 7 November 2023

dotDigital - Delivering organic and acquired growth expectations

Finals to June 2023 detail performance in line with expectations, but outperforming by +6% for adj PBT and adj dil. EPS: revenue of £69.2m (£69.1mE); adj EBITDA of £22.0m (£22.3mE); adj EBIT £14.3mE (£14.3m); adj. PBT of £15.4m; (vs £14.5mE with the benefit of interest); and adj dil EPS also +6%. £52.7m cash at 30th June enabled the £25m September acquisition (incl £18.9m cash consideration) of personalisation functionality provider Fresh Relevance, in line with the acquisition strategy and acce

Off the radar…but for how long?

Judging by the share price and valuation (>5% FCF yield) you might think DOTD hasn’t refound its mojo, however actually the picture is far more positive: FY22 growth: +8% y/y (vs. a record comp.) and then +10% in FY23 (despite a tough backdrop). We think this trend further improves looking ahead following a step-change in DOTD’s product portfolio, thanks to organic and acquired investment, as this is driving upsells, traction with larger customers and also is reducing churn. Furthermore, numbers

Growth on the dot plot

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 - 21 Feb 23

21 February 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 objec

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