Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ELECOSOFT PLC. We currently have 17 research reports from 3 professional analysts.
|14Nov16 12:55||RNS||Change of Registered Office|
|28Oct16 09:26||RNS||Issue of Options|
|24Oct16 05:01||RNS||Holding(s) in Company|
|17Oct16 04:52||RNS||Change of Registered Office|
|17Oct16 07:00||RNS||Acquisition of ICON|
|21Sep16 07:00||RNS||Interim Results|
|14Jun16 07:00||RNS||Board Appointment|
Frequency of research reports
Research reports on
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
SaaS model strengthened through acquisition
17 Oct 16
Elecosoft has acquired Integrated Computing & Office Networking Ltd (ICON) for a total of £2.4m in cash and shares. ICON is a leading SaaS provider of building information management and storage systems, principally to the UK retail sector and its purchase is thus consistent with Elecosoft’s strategy of investing in SaaS technology to grow its customer reach and strengthen its position as an international provider of innovative, market-leading visual software applications.
17 Oct 16
Avacta* (AVCT): Act now (CORP) | Tristel* (TSTL): A strong FY 2016 (CORP) | Bioventix* (BVXP): FY 2016 results (CORP) | Elecosoft* (ELCO): SaaS model strengthened through acquisition (CORP) | Lok’nStore* (LOK): NAV up 28% (CORP) | Omega Diagnostics* (ODX): Mid year trading update (CORP) | Mortice* (MORT): Positive trading update (CORP)
Building an international business
21 Sep 16
This is a good set of interims for the architectural and construction software supplier, showing sales and earnings growth assisted by FX moves and generating cash, which prompts an initial dividend declaration. Stripping out the sale of the Swedish architectural practice last December, on a LFL basis H1 revenue was up 10% YoY to £8.8m; although only 6% at constant currency. Encouragingly, 47% of the sales were recurring support & maintenance income. Because of that, gross margins for the software business remained high at 87% while operating expenses - although still comparatively heavy - were controlled, so operating margins improved 90bp to 8%, the gearing delivering 25% growth in adj. operating profit to £0.7m. With debt paid off in H2 2015, there was little interest charged so adj. PBT rose 32% to £0.7m and adj. EPS rose 23% to 0.7p. While assisted by the improved FX rate boosting its European (Swedish/German) earnings, this is still a good performance in line with our expected 25% earnings growth for the year and we make no changes to our FY 2016 forecast for £17.2m sales and FD adj. EPS of 1.3p. There was also notably good cash conversion as trade debtors were collected, seeing £1.4m from operations and only £0.3m capex, ending the period with net cash of £0.3m, from the net debt of £0.8m at the end of last year. Underlining management confidence, an interim dividend of 0.15p, has been declared, with the prospect of a FY dividend at 4x EPS cover; a prospective yield of 1.3% on the current price.
Taking a prudent road
28 Nov 16
As flagged in September, H1 2017 profit is indeed below LY; adj. PBT of £0.5m compares with £1.5m in H1 2016 as Trakm8 invests heavily in new technology and acquisition integration. Management remains confident in another very strong H2 performance and in particular is focused on closing a couple of large high-margin software-related sales which would see the group meeting the original FY 2017 expectations of £5.9m adj. PBT. However, should these fall outside the March year-end, profits are only likely to be in line with last year’s £3.9m, albeit on a growing revenue base. Prudence dictates we assume a worst-case scenario in our forecasts so that surprise is only in the upside – if the deals close in the year, the company will meet those original revenue and profit expectations.
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
Deal beefs up media & broadcast operations
28 Nov 16
SCISYS is acquiring Germany-based ANNOVA Systems for an estimated deal value of £15.3m. ANNOVA is a leading supplier of software-based editorial solutions to the media sector. It has a track record of generating strong revenue growth and in 2015 won a landmark contract with the BBC, which underpins financial forecasts for 12 years. ANNOVA complements SCISYS’s dira! product offering for radio broadcasters, extends the group’s capabilities into television and creates cross-selling opportunities. The deal significantly boosts earnings, aided by cheap debt financing costs, and is value enhancing on our assumptions. Consequently, we believe the stock continues to look attractive on c 10x our FY17e earnings.
N+1 Singer - Morning Song 29-11-2016
29 Nov 16
Vp has reported another impressive set of interims, confirming strong growth in most markets and a positive outlook. Recent acquisitions are bedding in well and the full year outturn is set to exceed previous expectations (5%/6% EPS upgrades in FY17/FY18). The recent Capital Markets Day provided a reminder of Vp’s qualities (specialist focus, high returns, strong cash generation) and its growth potential, which in our view are not reflected in a modest <11x P/E rating. We firmly believe the shares are due a re-rating and see intrinsic value in excess of 800p.