Morning Note – 31 July 2024

FADEL - Promising pipeline, currently challenging conversion

FADEL’s H1 24 trading update shows H1 revenue of $5.3m, cash of $1.9m, and an outlook for FY24 revenue, adj EBITDA, and cash of $14.8-15.8m, -$1.9m to -$2.3m, and $1.3-1.9m. Through H1, management has continued to make promising operational progress, with the March launch of LicenSee, June new contract wins, an expanding pipeline, and retention of all IPM Suite and Brand Vision customers. However, sales conversion has been slower than originally anticipated, as potential customers thoroughly eva

Morning Note – 3 June 2024

Morning Note – 30 April 2024

FADEL - Promising progress through FY23, focus on SaaS revenue

FADEL’s FY23 results show revenue growth of +10% to $14.5m, including recurring revenue growth of +31% to 79% of group revenue, net cash of $3.0m in line with the January trading update, and a promising start to FY24 with the overall sales pipeline now as large and diverse as at any point in the company’s history. As the management team is now fully focused on scaling SaaS revenue alongside selectively scaling the operations, we revise our FY24E and FY25E revenue, upgrade our FY24E net cash, and

Morning Note – 1 March 2024

Morning Note – 31 January 2024

FADEL - FY23E EBITDA ahead, FY24-25E upgrades to EBITDA and cash

FADEL’s FY23 trading update shows FY23 revenue in line with our previous forecast, adjusted EBITDA substantially ahead with at least -$2.6m vs our previous -$3.6m, and a confident outlook that leads us to upgrade our FY24E & FY25E adjusted EBITDA, EFCF, and net cash. FY23 revenue growth of +10% to $14.5m was driven by recurring revenue growth of +31% to $11.4m, with new contract wins from customers including PepsiCo, Kimberly-Clark, Sanofi and Philip Morris, successful cross-selling and upsellin

The Joy of Techs - Cavendish Technology quarterly sector note

£23.3bn in enterprise value has been returned to AIM technology shareholders over the past six years in the form of 51 public to private takeouts, including 10 in 2023 alone with the takeovers of Smoove* and Tribal announced in early October. With UK valuations appearing cheap and looking more attractive to potential acquirers, we take a moment to reflect on the trends of corporate and private equity bidders targeting AIM-listed technology companies going back to 2017, through the uncertainties

Morning Note – 27 September 2023

FADEL - Promising signs in H1, FY23-25 forecasts reiterated

H1 results show revenue of $5.4m, adjusted EBITDA of -$2.0m, net cash of $7.3m, and expectations that FY23 is trading in line with our forecasts. H1 recurring revenue grew +4% yoy to $4.3m, as blue-chip customers have continued to deploy and expand adoption through H1, including Coca-Cola and Sanofi implementing Brand Vision Rights Cloud. As at the July trading update, management expects several upcoming annual licence renewals for IPM Suite to change to be recognised upfront, which will lead to

Morning Note – 25 July 2023

Morning Note – 22 June 2023

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