Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Eckoh. We currently have 72 research reports from 5 professional analysts.
Eckoh has announced a new three-year contract to provide Coral, the contact centre agent desktop product, to a US Fortune 100 telecommunications company. The contract, worth a minimum of $3.8m over three years, is an extension to an existing client relationship and suggests that Coral is their long-term desktop of choice. While Coral contract wins are difficult to predict, this win validates our view that it is strategically important to the group as it provides a gateway to some very significant contact centres. We upgrade our forecasts this morning, resulting in a 6% increase in FY’20 adj. EBITDA. The shares trade on a FCF yield of 4.8% rising to 6.1% in FY’21. We continue to be excited about the group’s growth prospects, which combined with the high level of recurring revenue makes the shares highly attractive.
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· IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas w hich have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC
Companies: KMK RAI ECK GFIN GAN OKYO PRM LWRF RQIH WGB
Eckoh’s FY’19 results confirm a strong year, with high levels of new business win activity providing a strong platform for growth in FY’20 and beyond. US Secure Payments remains the star of the show (and offers the greatest long term potential), but we are encouraged to see growth return to both divisions within the group. The outlook is positive, with strong sales pipelines in both the UK and the US and over 90% visibility over FY’20 revenue. The shares trade on a FCF yield of 4.8% rising to 6.6% in FY’21. We continue to be excited about the group’s growth prospects, which combined with the high level of recurring revenue makes the shares highly attractive.
Eckoh has released a positive trading update for the year to March’19. Trading was in line with expectations, with both the UK and US divisions delivering double digit growth in H2’19 following a strong first half for new business wins. Post the implementation of IFRS 15, we believe cash is the most important metric for the group. To that end we are highly encouraged by the strong cash generation in the period. Year end net cash of £8.3m is c.9% ahead of our £7.6m forecast, which was upgraded from £7.0m at the interim results, reflecting the contract win momentum throughout the year. With an “excellent” sales pipeline for the current year we expect continued strong performance from the group, confirming our belief that Eckoh represents one of the most exciting cybersecurity plays in the UK market.
Eckoh has issued a positive trading update highlighting continued positive momentum across the business. More than £10m in contract value has been secured since the half year (30th Sept), with a number of significant renewals also having taken place. We believe that cash remains the key metric to focus on whilst the effects of IFRS 15 are working through the P&L. The continued strong performance points to potential headroom for outperformance in our recently upgraded £7.6m net cash forecast. The FCF yield of 5.5% to Sept’19 screens well against peers in our wider software and services coverage (c.3%) offering significant upside potential to investors.
Eckoh (ECK LN) Largest ever US Secure Payments contract win | iomart Group (IOM LN) Steady as she goes | Quiz (QUIZ LN) Assessment of key partner and sector newsflow (H1 pre-close 11 Oct)
Companies: ECK IOM QUIZ
PetroTal (TAL.TO) - The exploration and production company focused on oil assets in Peru is seeking a secondary AIM quoting before the end of 2018. Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due early Oct Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due Mid October 2018. EBITDA Profitable. Offer TBA Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.
Companies: SAR DISH BZT BST STX CAS ECK ABAL STAF TSI
accesso Technology (ACSO LN) Positive first half, full year expected to be in line | Cello Health (CLL LN) Health driving performance | Eckoh (ECK LN) A good start to the year | EKF Diagnostics (EKF LN) Interims slightly ahead, outlook positive | Elektron Technology (EKT LN) H1 19 in line with recently upgraded forecasts | Ergomed (ERGO LN) H1 results: in line with June trading update | Futura Medical (FUM LN) Business update highlights increased focus on MED2002 | ReNeuron Group (RENE LN) Exclusive hPRC discussions stopped: talks renewed with other parties | Yu Group (YU LN) Continuing strong, sustainable growth and cash generation
Companies: ACSO CLL ECK EKF EKT ERGO FUM RENE YU/
Craneware (CRW LN) Trading update & contract win | Dechra Pharmaceuticals (DPH LN) In line FY trading update | Eckoh (ECK LN) Contract win through Capita partnership | Miton Group (MGR LN) Strong H1 net inflows, upgrading FY18e EPS by 11% | MySale Group (MYSL LN) Another record year & more potential from platform | Photo-Me International (PHTM LN) On track versus downgraded forecasts. Japan being turned around | Realm Therapeutics (RLM LN) Supportive preclinical data on PR022 vs. tofacitinib in Atopic Dermatitis
Companies: CRW DPH ECK MGR MYSL PHTM
Audioboom plc* (BOOM.L, 2p/£20.2m) Restoration of trading and partner updates | Mobile Tornado plc* (MBT.L, 4.85p/£16.8m) AGM: Capitalisation of debt and extension of redemption date | ECSC plc (ECSC.L, 122.5p/£11.1m) AGM update: Growth across Managed Services and Consulting | Eckoh plc (ECK.L, 38.7p/£97.7m) Finals: Continued US growth opportunity
Companies: MBT ECSC ECK BOOM
See what's trending this week...
boohoo.com (BOO LN) Profit dynamics bolstered by gross margin strength | Eckoh (ECK LN) Business looking strong for FY’19… despite IFRS 15 | Futura Medical (FUM LN) AGM: MED2002/Eroxon® Phase III recruitment on track for Sept. 2018 | Microsaic Systems (MSYS LN) Distribution agreement with Omicron Research Ltd
Companies: BOO ECK FUM MSYS
Eckoh’s full year results to March’19 are in-line, as flagged at the May trading update. US Secure Payments continues to lead the way, driving 32% underlying growth in the US division. The UK is returning to form after a weak H1’18, with strong momentum going into the current year. We are making small underlying upgrades to our FY’19 forecasts, however the picture is complicated by the non-cash impact of adopting IFRS 15. Adoption of the new standards is expected to result in a delay in revenue recognition, meaning a material reduction in P&L profitability in the near term. We continue to be excited about the group’s growth prospects, which combined with the high level of recurring revenue makes the shares fundamentally attractive.
Eckoh (ECK LN) Another year of strong progress | Victrex (VCT LN) Well on track after record H1
Companies: Eckoh Victrex
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. Offer TBA. Due mid May.
Companies: PEG TERN UVEN DCTA ECK CPC MATD ONC EUSP HDD
Research Tree provides access to ongoing research coverage, media content and regulatory news on Eckoh. We currently have 72 research reports from 5 professional analysts.
|05Jul19 16:49||RNS||EBT Share Dealings and Total Voting Rights|
|04Jul19 16:22||RNS||Director/PDMR Shareholding|
|01Jul19 07:00||RNS||Significant US Contract Win|
|26Jun19 13:34||RNS||Holding(s) in Company|
|13Jun19 07:00||RNS||Exercise of options and PDMR dealing|
|12Jun19 07:00||RNS||Final Results|
|06Jun19 16:16||RNS||Holding(s) in Company|
Arcontech has reported a strong set of FY19 results that have driven large but still conservative upgrades to our existing 2020 estimates. In this report, we also present an in-depth review of the Arcontech investment case, which we split into two parts. For Arcontech’s organic business, we expect that the company’s robust structural position can continue to deliver at least 6% revenue growth (FY19 +12%) and at least 7% EPS growth (FY19 +26%) in 2020-21. Meanwhile, we believe that Arcontech’s strong balance sheet creates a range of options for Arcontech as an acquirer or target, or could alternatively facilitate greater shareholder returns. We upgrade our price target to 200p based on 25x 2020 EPS, and Arcontech trades on 12m fwd multiples of 19x P/E, an EFCF yield of 3.8%, and a dividend yield of 1.4%.
Companies: Arcontech Group
Interims to June report performance in line with unchanged expectations. Our previous note title, “sunshine and Cloud”, remains appropriate: with targeted expansion in sales resources, the group has experienced 48% growth in the total value of pipeline deals since January, with all-time highs in volume of larger opportunities, within which SaaS business has expanded sharply. Against an unusually strong 1H comparative, we are confident of FY forecasts, tailored for 2H strength as well as increasing proportion of SaaS deals, which will also enhance multi-year visibility. Underlying commercial momentum is increasing in tandem with Sopheon’s earnings quality from growing recurring revenue (currently $15.3m ARR), as the use cases of the Accolade software product broadens and with it the sales funnel. Target 1,425p reiterated.
Wameja (formerly eServGlobal) is a direct 35.68% investment in the well-funded HomeSend (HS) JV with Mastercard, a partnership with a payment industry global leader in the $127 trillion cross-border payments market. The sale of the legacy business removes distraction and appeases risk, enabling focus on the value and opportunity in HS as payment platforms such as TransferWise and Monzo – cross-border in particular – see valuations soar. The 2Q update highlights strong growth and, with Mastercard backing, success is surely inevitable. Although patience may be required, Wameja is built for it and the longer the inevitable corporate action takes, the higher peer group multiples grow. With a fair value of 30-50p, we reiterate our 20p 12-month target price as the market gains awareness of value of the platform, in anticipation of a corporate event.
Sopheon’s interim results reflect a return to a stronger second half weighting, as flagged in July’s trading update – although EBITDA is $0.5m ahead of the number in that announcement. Alongside the delays in closing some license contracts in the first half, management reiterates the strength of the new business pipeline and the supportive underlying market conditions, and notes customers apparently reverting to a year-end buying pattern. With a sharp increase in the proportion of SaaS business in the pipeline – reflective of industry procurement trends - we expect to see higher recurring revenues over time (bringing greater visibility) and enhanced lifetime customer revenue. Chairman Barry Mence comments that the future prospects for Sopheon ‘have never been brighter’ when highlighting the positive trends for the Group in the outlook statement – and we note the pipeline and the long-term value being built within the growing SaaS business.
Tencent shares slumped as much as 3.88% on Thursday after the Chinese technology giant missed analyst expectations, despite beating forecast on earnings. Revenue rose 21% year-on-year to 88.82 billion yuan. Profit attributable to shareholders beat analyst forecasts, rising 35% year-on-year to 24.14 billion yuan. The company's gaming division returned to growth, posting revenue of 27.3 billion yuan, up 8% year-on-year, with mobile games performing particularly well.
Companies: KAPE AVST BIDS CDM CNS DFX ECSC FLX FDEV GFIN IGP KWS NCC OSI SOPH SUMO TM17
Converting new business opportunities into revenue is proving more challenging than we had anticipated and we are revising our forecasts following today's trading update. The deferral of business means the outlook for 2020E remains positive. We move our recommendation to Hold until we see momentum returning.
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.
Companies: AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CALL 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
An official at China's central bank has said the institution is nearing the launch of its digital currency. Speaking at an event in China over the weekend, Mu Changchun, deputy director of the payments unit at the People's Bank of China, said its researchers have been hard at work since last year to complete the systems needed to support the digital yuan offering and that it is "Close to being out." The news was reported by Bloomberg on Monday.
Companies: AMO BGO BOKU IQE TECH
A stronger than expected H2 means FY Mar 2019 earnings beat forecasts already upgraded with the post-YE trading update in April. We expect robust demand for data solutions to continue and we reiterate FY 2020 growth expectations. Note that IFRS15 adoption brought £1.7m revenue and £1.0m profit from FY 2018 (restated) into FY 2019, enhancing the growth rate. The 57% EPS growth was further skewed by a very low tax-rate in FY 2019. Thus revenue and earnings appear to fluctuate sharply. Underlying that, however, D4T4 is steadily growing revenue and maintaining margins, while simultaneously improving quality and reliability of earnings through term licences, PaaS and recurring revenue while also investing in US expansion. Overall, this is another year of excellent performance and we raise our TP to 310p in line with the sector.
Companies: D4T4 Solutions
This morning, Bango announced final results for the year to December 2018. During the period End User Spend (EUS) continued the trend of recent years and has more than doubled to £558.2m and revenue up 60% to £6.6m (FY18: £4.2m). Adjusted LBITDA improved to -£0.9m (FY18: -£1.6m), with positive EBITDA achieved during Q4/18. Following the Audiens acquisition in early 2018 and investment in further development, December 2018 saw launch of Bango Marketplace. This is a new business segment, adding a potentially significant and high margin revenue stream, monetising the extensive and growing amount of transactional data from the Bango Platform. There remains a growing pipeline of new MNO/App Store integrations and further Google Play upgrades, representing a significant pipeline of over US$4 billion in EUS.
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 Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with 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· IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas which have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC Uniphar, a diversified healthcare services business with a workforce of over 2,000, is looking to join AIM. Raise TBC, expected mid-July 2019
Companies: SRT CHH VELA CREO ASH MIRA ECO AQX ARCM DRV
British Airways said its flights were returning to normal after passengers had to endure cancellations, delays and long queues at London airports as the airline suffered its third major computer failure in a little more than two years. More than 60 flights to and from Heathrow and Gatwick were cancelled and more than 100 were delayed, according to the departure boards at the two airports.
Companies: KAPE AVST CNS DFX ECSC FLX IGP NCC OSI SWG SOPH
Essensys is a leading provider of real-time IT provisioning and ERP software to the flexible workspace market. Its SaaS platforms allow flexible workspace operators to establish and run an efficient, scalable business, enabling the vast majority of IT tasks to be completed by non-technical staff. Founded in 2006, the group has benefitted from the dramatic increase in demand for flexible workspaces, a structural growth trend that shows no signs of slowing down. Its recurring revenue model features attractive unit economics, impressive SaaS metrics and excellent pipeline visibility, significantly underpinning our prudent forecasts. We expect 24% 3yr CAGR in recurring revenue to FY’21, supported by strong trading in FY’19, confirmed in today’s year end trading update. With an experienced management team in place, a highly favourable market backdrop and near-term forecasts well underpinned, we believe the group is set to continue its impressive growth trajectory throughout our forecast period and beyond.
CBS and Viacom have agreed to merge, ending years of on-and-off talks. The merger highlights a long effort to unite CBS and Viacom as the media companies seek to compete with giants like Disney and Netflix. Viacom CEO Bob Bakish will run the combined company, which will be named ViacomCBS.
Companies: EVRH ZOO AMO IMMO MIRA VRE
Osirium Technologies has signed up its first customer for the recently launched Opus privileged process automation solution and two new customers for its PxM platform. Osirium has broadened its product range with Opus and the recent launch of its privileged endpoint management (PEM) solution, opening up access to a wider addressable market and providing support for our bookings forecasts.
Companies: Osirium Technologies