Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Eckoh. We currently have 58 research reports from 5 professional analysts.
Dechra Pharmaceuticals (DPH LN) Interims contain no surprises, AST/Le Vet acq now complete | Dialight (DIA LN) Are we nearly there yet? | Eckoh (ECK LN) US secure payments win and new US partnership | GlobalData (DATA LN) Results driven by strong trading | Photo-Me International (PHTM LN) Appointment of CFO | Senior (SNR LN) Solid results and outlook | Sigma Capital Group (SGM LN) REIT placing complete, 140p+/share intrinsic value
Companies: DPH DIA ECK DATA PHTM SNR SGM
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Since its interims in November, Eckoh has secured six sizeable UK contracts across the payments, insurance, healthcare and mobile telecoms sectors. This shows the group is seeing the positive impact of the restructuring it did earlier in the year to focus sales on larger strategic accounts, leveraging the entire product portfolio. We remain comfortable with our forecasts and make no changes. Eckoh offers an attractive opportunity to gain exposure to the exciting cybersecurity market with an undemanding valuation of 14.6x Mar’18 EV/EBITDA falling to 12.4x Mar’19 EV/EBITDA.
Block Energy—a NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC 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. Offer raising £30m at 165p with mkt cap of £100m . Due 9 Feb.
Companies: IQE SMS VRS IMO STX VLTY CSSG ECK
Abzena (ABZA LN) Facility upgrade supports competitive advantage | Avon Rubber (AVON LN) Good update - move to Hold after share price rise | Eckoh (ECK LN) Positive UK update – contract wins | Gresham Technologies (GHT LN) CFO Appointment | Murgitroyd Group (MUR LN) Interims in line, dividend hike a positive surprise
Companies: ABZA AVON ECK GHT MUR
Eckoh’s interim results showed strong progression year on year across all key metrics driven by continued strong momentum in its US Secure Payments business. The group won another 7 contracts in this area worth $5.1m, both metrics significantly up y-o-y. With all contracts won on the preferred opex-style pricing model, the order book and visibility is also growing. We made no changes to our forecasts and believe the opportunities remain significant given the regulatory backdrop, increasing awareness of the risk and costs associated with security breaches and the group’s strong competitive positioning. We see another year of strong progress.
Eckoh has secured 2 new, 20-year US patents for its secure payment solution CallGuard. This IP protection is strategically important in preserving and helping grow value in the business, particularly in the US where it has won over $13m of payment contracts in the last 18 months and where opportunities remain significant. These awards confirm that the group remains at the forefront of contact centre security, an area we expect to see increased spending over the coming years. We remain bullish on Eckoh’s ability to capitalise on this opportunity and the resultant value creation.
WANdisco plc (WAND.L, 862p/£325m) Capital Markets Event: Replication and restore driving demand (17.10.17) | Eckoh plc (ECK.L, 50.5p/£127.2m) Interim pre-close: Inline - US growth (18.10.17) | Audioboom plc (BOOM.L, 3.125p/£29.1m) Podcast market update: Continued market investment (20.10.17) |
Companies: WAND ECK BOOM
Eckoh issued an in-line trading update for the six months to 30 Sept 2017, reporting double digit percentage growth in both revenue and gross profit. Of particular note is the continued strong momentum of the US secure payments business, winning 7 contracts in the period with a total contract value of $5.1m (nearly double the value won in H1’17). All 7 contracts were won on the preferred “opex” pricing model and means the group has now secured the same volume of opex-based contracts in H1’18 as were won in the whole of last year. The group’s growth prospects remain exciting given positive demand drivers, a strong product set and competitive positioning.
Be Heard (BHRD LN) agenda21 appointed lead digital agency by Addison Lee | Eckoh (ECK LN) US secure payments continue strong momentum | Rathbone Brothers (RAT LN) FuM +2.5% in Q3, Investment Management net inflows remain modest
Companies: ECK BHRD RAT
Audioboom plc (BOOM.L, 2.2p/£20.5m) Podcaster subscription service | Eckoh plc (ECK.L, 47.3p/£115m) CME: US focus | Gfinity plc (GFIN.L, 19.75p/£37.3m) Further partner agreement with Microsoft | Big Sofa plc (BST.L, 25.75p/£14.6m) Prelims: Progress in 2017
Companies: BOOM ECK GFIN BST
Eckoh held a teach-in on its US business yesterday, which also gave us the opportunity to meet the US management team. The event depicted a buoyant demand background in the US and it’s clear that Eckoh’s opportunities are significant. There appears to be a positive change in demand appetite and there remains little competition in the space. The group’s patents, implementation experience and presence on the ground provide areas of differentiation and barriers to entry. All of this is feeding into what looks to be a very healthy US pipeline, no doubt helped by the recent successful deployments in some very large enterprises (Fortune 50 US insurance company, Fortune 500 US financial services) which provide strong references. Outside of the secure payments space, the group also talked about some of its significant opportunities with a browser-based agent desktop tool, Coral. We are excited about the group’s growth prospects, which combined with very high levels of recurring revenues (76% of total revenues in year to Mar’17) make the shares highly attractive.
Gfinity plc (GFIN.L, 19.75p/£37.7m) IKON partnership takes Elite global | MTI Wireless Edge plc (MWE.L, 25.25p/£12.8m) Mottech expansion into China via JV | Eckoh (ECK.L, 47.5p/£115.4m) FY results
Companies: GFIN MWE ECK
The group delivered FY results comfortably against expectations, with a transformational US performance. The total value of Secure Payments contracts won in the US was more than 5x the previous year, with only 21% recognised in FY’17. There are strong positive demand drivers in the US and with one of the leading propositions in the market, Eckoh will be well-placed to capitalise. The UK remains solid, with the Capita and other emerging partnerships contributing. Retention rates remain very high and with overall recurring revenues at 76% (and improving), we believe Eckoh offers exciting and visible growth opportunities.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Eckoh. We currently have 58 research reports from 5 professional analysts.
|28Feb18 09:55||RNS||Holding(s) in Company|
|27Feb18 08:15||RNS||Director/PDMR Shareholding|
|26Feb18 07:00||RNS||US Contract Win and Partnership|
|05Feb18 07:00||RNS||UK Contract Wins|
|23Jan18 11:05||RNS||Holding(s) in Company|
|19Jan18 09:51||RNS||Holding(s) in Company|
|14Dec17 08:30||RNS||Directorate Change|
IQE has released its results for the year to December ’17. While the results themselves are strong, these were largely flagged at the trading update in December, and we see the FY’18 and FY’19 outlook as more important for the share price from here. The group expects continued growth in wafer sales, driven by both the expansion of existing business and qualifications of new business streams. Given the group’s strong operational gearing, we expect this to lead to a steady expansion in group margins. The group has given explicit forward guidance for the first time, which is in-line with our FY’18 revenue and EBIT forecasts, although a higher non-cash tax charge is likely to lead to EPS downgrades. With further high growth expected in FY’18 and the potential for more strong growth in FY’19 and beyond, we retain our positive stance.
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.
Companies: Cloudcall Group
Bango has announced FY17A results ahead of our forecasts, with financial performance once again demonstrating strong growth and platform scalability. Momentum remained strong during the year, with End User Spend (EUS) confirmed as having more than doubled but opex having grown by just 13%. The positive outlook statement will give confidence in the near-term financial performance. Our FY18E adjusted earnings estimates are unchanged following the release and FY19E forecasts are introduced for the first time.
WANdisco’s co-sell agreement with Microsoft is possibly the company’s most important partnership to date, strengthening the company’s already enviable platform to capitalise on the rapid growth in cloud and hybrid cloud computing. Agreements with IBM, Alibaba, Dell/Virtustream and now Microsoft give a clear indication of the capability and uniqueness of Fusion. Near- and long-term prospects are reinforced as is the potential for WANdisco to grow into and exceed the current rating.
The 2017 performance built strongly on 2016, with Clareti y-o-y revenue growth of 48% driving 40% growth in adjusted PBT even as the group continued to invest in the business. The balance sheet is strong providing flexibility and options and the Board also recommended initiating a dividend (0.5pps), signifying confidence. We upgraded our revenue growth expectations for Clareti (expect +38% in 2018 and +27% in 2019). We believe Gresham’s continued momentum reflects a positive demand environment, a highly competitive and differentiated product set and a strong management team that will continue to drive shareholder value.
Companies: Gresham Technologies
StatPro has reported FY 2017 revenues and Adjusted EBITDA in line with expectations reflecting solid growth from Revolution and a positive EBITDA contribution from Delta. Reported revenue increased by 26% at constant currency rates (CCR), adjusted EBITDA was up 24% while adjusted EPS grew by 74%. The dividend is maintained at 2.9p. Group Annualised Recurring Revenue (ARR) increased by 35% to £53.04 million. The acquisition of UBS Delta in April 2017 was a key feature of the year and its integration into Revolution continues. The announcement flags a restructuring of the business in 2019 into three divisions to allow management focus on the specific growth opportunities in the business lines. CEO Justin Wheatley says that StatPro ended 2017 strongly and that the Group expects to see further organic revenue and profit growth in 2018. StatPro has started the current financial year in line with management expectations. We make minor adjustments to our FY 2018E estimates and introduce FY 2019E numbers.
Companies: Statpro Group
In the March 2018 edition of the Hardman Monthly Newsletter, Nigel Hawkins addresses the attractions of quoted infrastructure funds that maintain a low profile.
Companies: OPM ABZA AVO AGY APH ARBB AVCT BNO BUR CMH CLIG COS DNL EVG GTLY GDR INL MCL MUR NSF OBT OXB PPH NIPT PHP RE/ REDX SCLP SCE SIXH TRX TON VAL
We have spoken to R1 and we are revisiting the buy case by addressing some of the questions impacting the shares. With 3 significant deals in last 12 months the market is looking for evidence of underlying performance and successful integration of these deals. As a result it is, in our view, looking at historic numbers, rather than the 2019 and 2020 forecasts. We see significant cash flow potential going forward, and the potential for a significantly enhancing buy back. We believe RhythmOne itself is increasingly vulnerable to the industry roll up, from Private Equity or another industry player, given the very low forecast cash multiples it trades on. We retain our Buy rating and 770p price target.
IQE is a leading global supplier of advanced semiconductor wafers that are used in various applications ranging from mobile communications to industrial power. The company boasts a diversified global customer base and a unique IP portfolio with over 150 patents that enables the firm to provide a unique service to its customers. Headquartered in Cardiff, Wales, IQE shares were often misunderstood or underappreciated by investors in the past. However, as the company continued to deliver healthy growth winning volume contracts for new technologies (e.g. VCSEL), the share price nearly tripled in 2017 and the company successfully placed new shares raising £95m in November. Recent reports published by funds with short positions questioning IQE’s accounting with regard to profit and cash flow contribution from its joint ventures sent the stock price down by 45% from its November high. That said, the company rejected the allegation with the statement saying that the information in the short sellers report is “either factually inaccurate or has previously been disclosed in IQE’s annual reports and financial statements”. The company also appointed KPMG as a new auditor replacing PwC as of 12th February saying “the company holds itself to the highest standards of transparency, governance and integrity”. We find the management responses were timely and expect the share price to be stabilised going forward.
Frontier Smart’s FY’17 results show a strong year of growth with excellent cash generation, as flagged in January. Group revenue grew 28% to £41.0m while adj. EBITDA grew 171% to £1.9m (N+1Se: £1.8m). Both divisions performed well, with Digital Radio boosted by the FM switch-off in Norway and Smart Audio recording its first material revenues in the year. Strong free cash flow of £4.2m resulted in net cash at the year end of £3.0m (N+1Se: £1.7m). We make no material changes to our forecasts and continue to expect the group to benefit from rapid growth in the 3rd party Smart Audio market. Our intrinsic value range of 191p – 242p offers plenty of upside, with potential for further value creation as the Smart Home market establishes itself.
Companies: Frontier Smart Technologies Group
GetBusy’s maiden results published today were robust, coming in ahead of our forecast at both the revenue and pre-tax level; despite the impact of IFRS 15. Recurring revenue increased to 86% of revenue (83% in 2016) and the number of paying users increased to 57,000 (+11% YoY). Non-UK business, which accounted for a mere 6% of group revenue in 2015, increased to 45% in 2017. We have updated our forecasts for GetBusy and upgraded our Target Price to 48p/ share, +17% higher than our prior 41p TP. We reiterate our Buy rating.
The phenomenal take-up of cloud services is turning the IT industry on its head. Here corporate networks and in-house data centres are being replaced by third-party hosted (eg Amazon, Google and Microsoft) services, streamed from almost anywhere on the planet.
Companies: Blancco Technology Group
In today’s more detailed trading update, Sopheon has confirmed its brief statement in early January that revenue and profit for FY 2017E will exceed market expectations. As well as providing an anticipated revenue figure above U$28 million, it states that both EBITDA and pretax profits will be ‘significantly ahead of current market expectations.’ Today’s update notes that volume of transactions increased with a greater number of license deals and new SaaS customers – and Q4 contained two substantial deals. Sopheon ended 2017 with net cash of U$9.5 million. The group has a higher recurring revenue base and greater revenue visibility overall. We adjust FY 2017E numbers to reflect the guidance given today, driving a 31% increase in our Adjusted EBITDA estimate to U$6.9 million. We also adjust estimates for December’s conversion of loan stock and that is the only influence on our estimates for subsequent years where we retain a conservative stance and note future investment in the Accolade platform. We will look to revisit those estimates when further detail is available at the time of the results announcement.
Momentum has continued in H2, such that the company now expects FY18E sales and EBITDA (of at least) $28.0m (prev: $26.0m) and $2.3m (prev: $2.0m), implying impressive y-o-y growth of 70% and 31% respectively. In view of this update, we upgrade our FY18 forecasts (sales: +8%, EBITDA: +16%) but make n/c to FY19E. Having said this, given our forecasts now imply just 14% sales growth in FY19, we believe there is a strong likelihood of future upgrades. ZOO remains one to watch.
Companies: Zoo Digital Group
Having shown some signs of stability, markets have fallen over the last fortnight, due, in part, to concerns over potential trade tariffs which does not augur well. As the marathon of company results runs on, the majority have been as anticipated and will provide us a better insight into the outlook for corporate UK generally. However, the problems facing some retailers are clearly apparent. We have also continued to see significant M&A activity. In Share News & Views, we comment on APC Technology*, Hunting, James Fisher and Sons, PCF Group*, Ricardo and Swallowfield.
Companies: APC BMS CRPR ECSC EUSP FDM GETB PCF SNX SPRP TCN W7L