Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Ideagen. We currently have 41 research reports from 2 professional analysts.
Amino Technologies (AMO): Corp Delivering TV-as-a-service | Destiny Pharma (DEST): Corp Research collaboration – biofilms | Flowtech Fluidpower (FLO): Corp HY trading update confirms strong H1 growth | Ideagen (IDEA): Corp Low risk in delivering compliance | Independent Oil & Gas (IOG): Corp Thames pipeline integrity update | Iofina (IOF): Corp H1 2018 update
Companies: AMO FLO IDEA IOG IOF DEST
Prelims confirm EBITDA of £11.0m from revenue of £36.1m, in line with expectations unchanged at the May trading update. 11% underlying organic revenue growth is supported by acquisitions (current and prior periods), delivering +33% group revenue, +40% group EBITDA, and +33% adjusted diluted EPS. Net cash at period end of £0.8m is expected to be boosted by strong and growing free cash flow, funding both the dividend and the inevitable further acquisitions. Ideagen has a tried and tested formula for delivery of forecasts and sensible acquisitions, and we look forward to continuing positive newsflow as the relentless increase in regulatory compliance leads to the requirement for efficiencies and insight through automation, which Ideagen’s solutions deliver – and Brexit will only increase. We roll out a new target of 140p (120p) based on FY20 forecasts for further organic growth of +10% EBITDA and EPS; however, we fully expect further acquisitions to increase those forecasts in the interim.
Ideagen (IDEA): Corp Positive trading update and board changes | 4imprint (FOUR): Corp Sales and profit ahead of expectations
Companies: Ideagen 4Imprint Group
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 Urban Exposure, a newly formed company which been established to pursue two main strategies in the residential development finance market - asset management of development finance loans and direct lending into development finance loans, looking to join AIM. Offer raising £150m at £1, market cap of £165m, expected 9 May 2018 Supreme, POSTPONED a leading manufacturer and supplier of branded consumer batteries, a manufacturer and supplier of branded and licensed consumer lighting and a leading manufacturer and supplier of vaping products in the United Kingdom, is looking to join AIM. Offer TBC, expected May 2018 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: ARIX AVO ODX DUKE OPTI IDEA DDDD TRT EME FARN
Gooch & Housego (GHH): Corp Satisfactory half-year trading update | Ideagen (IDEA): Corp US acquisition
Companies: Gooch & Housego Ideagen
Gore Street Energy Storage Fund—Seeking to raise £100m for the purposes of investment in a diversified portfolio of utility scale energy storage projects. Due 12 April. Odyssean Investment Trust—Raising £100m at £1. Due 1 May. The Company will primarily invest in smaller company equities quoted on markets operated by the London Stock Exchange.
Companies: AVN RRL GHH ECHO IDEA APPS MIN PERE QFI ELA
Typically strong interims are in line with the November trading update. Revenue growth of 43% to £17.2m delivered 48% of mildly lifted full-year expectations (increased from £34.9m to £35.9m), alongside 43% of EBITDA (full-year expectations unchanged at £11.0m). Recurring revenues grew 60% to hit 63% of group revenue (1H17: 56%), including 22% SaaS revenue, which had grown 122% year-on-year. With consistently strong cash generation and momentum, increased investment in product development and international sales is accompanied by 15% dividend growth, describing management confidence for 2H18 and beyond. Target 120p (108p).
Elecosoft* (ELCO): FY meets growth expectations (CORP) | Velocity Composites* (VEL): Accelerating sales and development investment (CORP) | Flowtech Fluidpower* (FLO): Positive year-end trading update (CORP) | Ideagen* (IDEA): Interims: strong recurring revenue growth (CORP) | OptiBiotix* (OPTI): Further human taste studies for SweetBiotix (CORP) | dotDigital* (DOTD): positive trading update (CORP) | Castleton Technology* (CTP): Contract wins (CORP) | SCISYS* (SSY): SCISYS sitting comfortably (CORP)
Companies: ELCO VEL FLO IDEA OPTI DOTD CTP SSY
Belluscura— Provider of premium medical devices at value prices to address part of the global unmet need for affordable, premium quality medical devices. Raising £7.5m to £10m. Offer TBA. Due early Dec Ten Lifestyle Hldgs - Technology-enabled lifestyle and travel platform providing trusted concierge services to the world's wealthy. Net revenue increased from £20m in the year ended 31 August 2015 to £33m in the year ended 31 August 2017, a compound annual growth rate of 29%. Offer TBA, expected 27 Nov 2017. Miriad Advertising—Global video advertising company incorporated in 2015 and is engaged in the development of native invideo advertising . 2016 rev £0.7m and £7.3m operating loss. Offer TBA Keystone Law Group— full service law firm with over 250 self-employed lawyers . Due 27 Nov. Raising £10m at 160p. Mkt Cap £50m. Revenue of £25.6 million and EBITDA of £2.1 million. In FYJan17. Beeks Financial Cloud -niche cloud computing and connectivity provider for automated (algorithmic) trading in Forex and Futures financial products . Raising £7m. Mkt Cap c.£24.5m. Due 27 Nov. FYJun17 rev £4m. Profitable at operating level. 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. Expected valuation £200m to £250m. OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected mid November.
Companies: RGL IDEA MAIS ANR MED TILS NIPT MOGP NTOG CALL
This quarter we use finnCap’s Slide Rule to provide both top-down and bottom-up analysis of the UK’s Technology and Telecoms sectors. Our findings are very reassuring: the Tech sector scores the best (across all sectors) when considering Growth and Quality – Taptica*, Frontier Developments* and dotDigital* in particular stand out on these metrics. Given these attractive characteristics and growth prospects, the Tech sector is unsurprisingly one of the most expensive – currently trading at 17.2x FY1 EV/EBIT and 23.8x FY1 P/E, versus 15.0x and 18.5x respectively for the wider market. Despite valuations appearing high, we believe there are value opportunities. For example, Proactis* features in finnCap’s QVGM+ portfolio (ranked 17/462) – the company offers attractive organic and inorganic growth, with earnings forecast to grow by 26% CAGR over the next two years, but despite this, only trades on 15x FY1 earnings and offers 8% FCF yield in FY2.
Companies: 7DIG ALT AMO ARTA BOTB BLTG CTP CITY D4T4 DTC DOTD ELCO ESG FDEV GBG IDEA IDOX IMTK IGP IOM KBT KCOM KWS LRM MAI MMX NASA NET PHD QTX QXT RCN 932 SSY SEE SIM SPE SRT STR TAP TAX TEP TPOP TRAK UNG VIP ZOO CYAN ONEV
Castleton Technology* (CTP): Strength evident in execution (CORP) | Paragon Entertainment* (PEL): Trading update (CORP) | Ideagen* (IDEA): Interim trading update (CORP) | Horizonte Minerals* (HZM): Araguaia mine plan submitted to National Mining Agency (CORP) | Nasstar* (NASA): Contract win (CORP) | Intercede* (IGP): Contract slippage (CORP)
Companies: CTP PEL IDEA HZM NASA IGP
Clean Invest Africa—Introduction due around 14 Nov. Vehicle established to identify investment opportunities and acquisitions in renewable and clean energy projects/companies or alternative technologies that are used in a socially and environmentally responsible way that will aid the development of the African continent. City Pub Group - owner and operator of an estate of 34 premium pubs across Southern England. £30m raise. Consistent track record of strong revenue and EBITDA growth, with a three year CAGR from FY14 to FY16 of 34.9% and 44.8% respectively, and an EBITDA margin of 14.7% in FY16. Due Nov. Boku - Independent direct carrier billing company. Revenues were up 21% to US$10.2 in HYJun17. Q32017, revenues grew to $6.5m, up by 44%. The Company also saw continued growth across all of its key metrics: user numbers, total payment and a positive adjusted EBITDA for the month of September 2017. Due 20 Nov. Offer TBA. Ten Lifestyle Hldgs. Technology-enabled lifestyle and travel platform providing trusted concierge services to the world's wealthy. Net revenue increased from £20m in the year ended 31 August 2015 to £33m in the year ended 31 August 2017, a compound annual growth rate of 29%. Offer and date TBA. AfriTin Mining—Demerger from Bushveld Minerals (BMN.L). Offer TBA. Due 8 Nov. The Uis Tin project (Namibia) is considered the flagship tin asset within the portfolio, as this was once the largest open cast tine mine of its kind in the world. Expected 8 November 2017 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. Expected valuation £200m to £250m. OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected mid November.
Companies: AVAP NASA WAND TYMN LION FEVR IDEA NCYT GGP
Typically impressive prelims are in line with the May trading, pleasantly ahead of prior forecasts: EBITDA of £7.9m (£7.8mE); revenue of £27.1m (£26.2mE); net cash of £4.2m (vs £1.6mE) strong even after adjusting for an abnormal creditor of £0.8m. The year delivered 10% organic growth, enhanced by benefit of four acquisitions in the period, and supported by an oversubscribed £10m placing at 75p, a premium to the then shareprice. Ideagen management’s tried and tested methodology continues to deliver, evidenced by relentless execution at or ahead of forecasts; adding new customers and retaining existing customers; stable margins and increasing cash generation; and increasing visibility through a growing recurring revenue base. Target price 108p reiterated, with unmodelled inevitable acquisitions expected to continue to add to the strong core.
CyanConnode* (CYAN): Leader of the narrowband (CORP) | Ideagen* (IDEA): Consistent strength in delivery (CORP) | K3 Capital* (K3C): Director changes (CORP) | Lighthouse Group* (LGT): Trading update (CORP) | Somero Enterprises* (SOM): Strong June trading shows a pick-up in US market activity and affirms FY forecasts (CORP) | Castleton Technology* (CTP): Solid prelims (CORP) | Cello (CLL): Strengthening the offer in Health (BUY) | dotDigital* (DOTD): Yet again – positive trading update (CORP) | Allergy Therapeutics* (AGY): FY trading update drives 7% upgrade (BUY)
Companies: IDEA K3C LGT SOM CTP CLL DOTD AGY CYAN
Research Tree provides access to ongoing research coverage, media content and regulatory news on Ideagen. We currently have 41 research reports from 2 professional analysts.
|17Jul18 07:00||RNS||Unaudited Preliminary Results|
|18Jun18 15:38||RNS||Exercise of Options and Total Voting Rights|
|11Jun18 17:00||RNS||Issue of Equity and Total Voting Rights|
|22May18 15:59||RNS||Issue of Shares under Share Incentive Plan and TVR|
|15May18 15:10||RNS||Exercise of Options and Total Voting Rights|
|09May18 07:00||RNS||Exercise of Options and Total Voting Rights|
|08May18 07:00||RNS||Pre-Close Trading Update and Board Changes|
The rapid +31% YoY revenue growth delivered in H1E did not include any meaningful contribution from the recently expanded sales headcount. Indeed, this growth rate would have been higher and in line with our forecast of +36% had new hires impacted in a timely manner. While we reduce our forecasts for 2018E in relation to this softness, we continue to expect an exit run rate this year strong enough to support an unchanged 2019E.
Companies: Cloudcall Group
In January, we highlighted the progress that AIM had made in H2 2017. We now review the performance in H1 2018. The latest AIM Statistics published on Friday showed that there are currently 944 companies, with 38 new issues so far in 2018, raising £781m and secondary issues raising a further £2.4bn. However, with 51 companies cancelling their listing there was a net fall in H1 2018 of 13 companies. That said, new listings appear to have accelerated recently. In Share News & Views, we comment on Braemar*, Cohort, Cropper*, GetBusy*, IG Design, Lakehouse* Porvair and Wynnstay Group.
Companies: AOR APC BMS CRPR DMTR ECSC ESC EUSP FDM GETB PCF SNX TCN W7L
CloudCall’s performance during H1’18 was strong but slightly weaker than our expected run-rate on slower recruitment of personnel to its growing sales team. Our FY18E estimates have been cut on the mismatch between rising costs due to continued investment in growth and the lag to achieve top-line performance, but our price target remains intact. We highlight the impact is localised to FY18E and the group’s product, sales and marketing teams are now in place to support rapid commercialisation. We continue to see substantial upside potential to our PT of 300p, particularly given the shares’ recent weakness, and reiterate our Buy rating.
Companies: Cloudcall Group
Sopheon’s trading update for the first half of its current financial year says that it expects revenue, EBITDA and profit before tax for the first half of 2018 to be ‘significantly ahead of prior year performance for the corresponding period’. In addition, with positive sales experience so far in the second half, the Board says that it is trading ‘comfortably in line’ with expectations. To us, that continues to reflect Sopheon’s success in adding new clients and improving revenue visibility through growing recurring revenue streams. We note that this unequivocally positive trading update is supportive of our estimates and will look at them in light of the detail of August’s interim results announcement.
With the first half of 2018 behind us, we evaluate the performance of the tech sector versus the broader market, and peers across the pond to see how the London listed technology universe compares to its bigger and better known US counterparts. We examine if the UK listed tech sector is overvalued on a relative basis. No tech sector review can be complete without analysing the performance of the big eight mega tech companies who had a strong H1 period and currently have an aggregate market capitalisation of US$5.18tn, marginally bigger than the Japanese economy.
Companies: APC ECSC EUSP FDM GETB LSAI SNX
In Q2, UK equities regained some of their poise after the draw down in Q1, although uncertainty around Brexit continued to grab the headlines. On the back of this, investor concern about the UK economy has been understandable in recent months given a number of negative data points. However, we see reasons for optimism for UK Plc with wage growth supporting an improving outlook for the consumer and business investment holding up. That said, continuing UK political disruption clearly remains a risk going forward.
Companies: AMER EMR HMI JOG PDG ABBY AMS AVON BLVN PIER CGS CALL CSRT TIDE DTG DEMG ELM EMR FPM FPO GTLY GENL GOR GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG LAM MACF MKLW NAH OXIG PCA PKG CAKE PDG RBW REDD RSW RNO RKH ROR SUS SCPA SHG SIV TRAK TRI VTC ZTF
CentralNic is acquiring KeyDrive S.A. (an existing strategic partner since 2017) for an initial enterprise value of $44.5m or c.£33.6m, with an additional earnout of up to $10.5m or c.£7.9m implying a maximum Enterprise Value of $55.0m or c.£41.5m. Founded in 1998, KeyDrive has established itself as one of the leading European companies for the distribution and management of domain names, administering over 6.0m domains via its internally developed software platform for over 1,700 retailers and 40,000 direct customers across 160 countries. The largest division of KeyDrive is its reseller platform RRPproxy, which is one of the top two providers globally with a range of blue chip customers.
Companies: Centralnic Group
Best Ideas - 2018 H1 Review
Companies: SAA VP/ GLE AMO IOM HSP CVSG EKF PGIT VRP RLM AVG SOG DNLM SFR YU/ CBP
Prelims to June are in line with expectations, with sales and adj. net income up 8% and 24% respectively. Cash conversion was also typically robust at 181% (FCF/adj. PAT), resulting in year-end net cash of £2.6m. We leave FY18 forecasts essentially unchanged – suggesting top-line growth of 9% and, in combination with continuing margin expansion, EPS +13%. Maiden FY19 forecasts reflect a continuation of this theme and form the basis of our valuation methodology and as such, we increase our target to 85p – equivalent to an undemanding 8% FY19E FCF yield.
Companies: Arcontech Group
We have refreshed our quality style screen for the second time and report on style performance since the last refresh in October. Performance has been very strong, outperforming the small-cap index by c.1600bps (weighted basis) and c.1000bps (unweighted). There has been volatility with the market and this style has yet to be tested in a concerted down market, but in a flat or rising market quality appears to be a successful investment style in small-caps. We have highlighted 11 focus stocks in the new screen and will report back again on performance when we next refresh the screen in about 5-6 months’ time.
Companies: LIO GHT AMO CHH ZYT DOTD GTLY RIV FCRM TAM PAM
ZOO Digital released robust FY2018 results today delivering $28.6m of revenue in FY2018, 2% ahead of our forecast, and representing a 73% Y/Y increase. FY2018 saw the Group solidify its reputation as a significant player in the localisation market with the launch of innovative technologies such as ZOOdubs. The outlook for the market and the group remains buoyant with the board confident the Group is ‘just entering an exciting period’. We reflect that in our newly published FY2020E forecasts.
Companies: Zoo Digital Group
Seeing Machines, the advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, has signed a five-year contract with US based John Christner Trucking to install Guardian across its fleet of 850 trucks. John Christner Trucking is a family owned business based in Sapulpa, Oklahoma and one of the leading refrigeration carriers across North America. This contract follows several other recent notable North American fleet contracts including Megabus (Coach USA), Royal Foods and Bison Transport Inc.
Companies: Seeing Machines
M&A is a bit like ‘panning for gold’. Most prospectors lose money, but the successful ones do the homework, know where to look and crucially understand their markets inside out. Similarly, we think Elecosoft - following its ‘transformational’ £2.4m acquisition of BIM (Building Information Modelling) SaaS provider, ICON back in October 2016 - has done it again.
In H118, EMIS traded in line with management’s expectations and generated year-on-year revenue growth. All divisions saw solid performance and management expects to meet FY18 expectations. The company continues to work on developing longer-term growth plans; these will be key to reinvigorating revenue and earnings growth, which in our view will be the trigger to closing the valuation discount versus peers.
Companies: Emis Group
Trakm8’s solid FY18A results (YE March 2018) support our conviction on the stock. With its transformation complete, the group now looks to increase its focus on international markets and make investments to boost efficiency and capacity. The company remains on track to meet FY19E expectations, albeit with delivery weighted to H2, as the phase-out of CEM occurs earlier in the year while significant new business in the Insurance sector is only due to impact from H2.