Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on EU SUPPLY PLC. We currently have 23 research reports from 3 professional analysts.
|14Nov16 07:00||RNS||Contract Win|
|14Oct16 07:00||RNS||Contract win|
|13Sep16 07:00||RNS||Renewal of agreements|
|07Sep16 07:00||RNS||Interim results for six months ended 30 June 2016|
|01Jul16 07:00||RNS||Business Alert Sales & Contract wins|
|29Jun16 07:00||RNS||Brexit Impact on EU Supply|
|17Jun16 07:00||RNS||Director Dealing|
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EU SUPPLY PLC
EU SUPPLY PLC
Share & share alike
18 Nov 16
The table shows that most markets have surrendered some of their gains in the last month. However, it is worth noting that progress achieved so far this year, and over the last 12 months has been maintained. The majority of company results and news has been as anticipated, with some exceptions. We now have the Autumn Statement on Wednesday 23 November which is likely to set the near term tone for markets. We should also have a better idea of the state of the UK economy currently as well as the outlook for corporate UK, in general. The year-end ‘round ups’ should start again in early January.
Major milestone imminent - Approaching monthly run rate operating profitability
17 Nov 16
EU Supply, the e-procurement software provider, has nearly reached the point of monthly run rate operating profitability. Reaching operating breakeven will be a major milestone, reducing financial constraints and providing a platform for growth. The business has potential to benefit from a scalable and already functional software platform and repeat revenue model, ahead of the requirements for EU public bodies to manage essential phases of tenders electronically by October 2018, and beyond 2018 in additional user needs from an already significant user base.
Positive readacross from Millstream
10 Nov 16
We believe the announcement from Proactis that it is buying Millstream highlights the attractiveness of EU Supply. Proactis has agreed to pay a consideration of £15.5m for Millstream on a cash-free/debt-free basis. This implies an EV/sales multiple of 3.2x the £4.9m revenue Millstream reported for the year to June 2016. Given that EU Supply is growing revenues much more quickly than Millstream, and has the potential to win some significant new clients in the coming year, our 15p target price may prove conservative. Buy
Markets maintain their progress ahead of key period
25 Oct 16
Looking at the table, it shows the majority of markets have maintained the progress achieved over the last quarter and year to date but have surrendered some of the gains over the last month. The majority of company results and news has been as anticipated, with some exceptions. Exchange rate volatility hasreduced. The precise path to Brexit remains unclear. Much more pressing for UK markets is the forthcoming Autumn Statement on 23 November and just a fortnight away the US Presidential Election. Key events that as they approach will become a focus for investors and market sentiment, generally.
Contract award supports 2017 revenue growth
17 Oct 16
EU Supply, the e-procurement software provider, has announced a contract award that it expects to generate €450k in revenues, mainly for FY2017. Whilst forecasts are subject to refinement for currency changes, EU Supply continues to anticipate that it will soon reach its target of monthly run rate operating profitability. With this contract award (for non-recurring revenues) and its largely repeating existing business, the Company is building revenues for FY2017. Although currency remains an unfortunate and unpredictable factor, we take material comfort from the contract win and the steady growth in revenues.
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 - Eckoh - In line interims, US secure payments gathers pace
29 Nov 16
Eckoh delivered interims in-line with expectations. UK growth was 11% whilst the US, reflecting a full period for PSS now accounts for 30% of sales. US Secure Payments wins gathered pace, with much larger contracts being won on SaaS-style pricing models and the pipeline at record levels. With contracts won in the first half feeding through strongly into the second half and given the group’s high level of recurring revenues (76%), the outlook remains positive for the rest of the year and we make no changes to forecasts. Eckoh has exceptional growth opportunities, particularly in the US, and we believe it can convert this to strong shareholder value.