Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Ideagen. We currently have 35 research reports from 2 professional analysts.
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
AIM-listed firm saw revenues and EBITDA grow 24%, with a "signficant" increase in EPS
Synairgen* (SNG): FY 2016 results and better year end cash (CORP) | Patisserie Holdings (CAKE): Good H1 results (BUY) | Sound Energy (SOU): Sidi Moktar update (HOLD) | Ideagen* (IDEA): Strong trading update (CORP)
Companies: SNG CAKE SOU IDEA
Orchard Funding Group* (ORCH): Accelerating Business Plan (CORP) | SCISYS* (SSY): SCISYS shows ‘bouncebackability’ (CORP) | Ideagen* (IDEA): SaaS contract wins (CORP)
Companies: ORCH SSY IDEA
Enterprise-focused niche applications of tech illustrate how, while trends appear to be fluctuating away from the current poster children of fintech and the Internet of Things, in fact these developments are refining appropriate application of existing technologies.
Companies: 7DIG AMO ARTA BVC BOTB CTP CITY D4T4 DTC DOTD ELCO ESG FDSA FDEV GBG IDEA IDOX IMTK IGP IOM KBT KCOM KWS LRM MAI MMX NASA NET PHD QTX QXT RCN 932 SSY SEE SIM SPE TAX TEP TPOP TRAK UNG VIP ZOO ONEV
K3 Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march.
Companies: PIL GFIN SOLI CBP CRW IDEA SIS VELA VLG PGY
The Mission Marketing Group* (TMMG): Valuation anomaly (CORP) | Ithaca Energy (IAE): FY 2016 results (HOLD) | Sopheon* (SPE): Stronger and stronger (CORP) | Shanta Gold (SHG): New mine plan for New Luika (BUY) | Ideagen* (IDEA): Acquisition and placing (CORP)
Companies: TMMG IAE SPE SHG IDEA
Research Tree provides access to ongoing research coverage, media content and regulatory news on Ideagen. We currently have 35 research reports from 2 professional analysts.
|16Mar18 07:00||RNS||Issue of Shares under Share Incentive Plan and TVR|
|06Mar18 15:58||RNS||Exercise of Options and Total Voting Rights|
|14Feb18 07:00||RNS||Issue of Equity|
|23Jan18 07:00||RNS||Interim Results|
|11Jan18 07:00||RNS||Issue of Equity|
|13Dec17 10:18||RNS||Director Dealing|
|11Dec17 14:26||RNS||Issue of Equity|
IQE has released its results for the year to December ’17. While the results themselves are strong, these were largely flagged at the trading update in December, and we see the FY’18 and FY’19 outlook as more important for the share price from here. The group expects continued growth in wafer sales, driven by both the expansion of existing business and qualifications of new business streams. Given the group’s strong operational gearing, we expect this to lead to a steady expansion in group margins. The group has given explicit forward guidance for the first time, which is in-line with our FY’18 revenue and EBIT forecasts, although a higher non-cash tax charge is likely to lead to EPS downgrades. With further high growth expected in FY’18 and the potential for more strong growth in FY’19 and beyond, we retain our positive stance.
CALL’s solid FY’17 results continue to underpin our conviction. Growth continues at pace in all regions assisted by rising internal efficiency while the outlook statement points to management confidence, good momentum on product development and support from regulatory trends. While we have cut our FY’18E numbers on accelerated investment in growth (and FY19-20E on lower R&D credits – see detail inside), we view management’s FY19E aspiration of ~break-even and cash trough as intact, with tangible upside risk from further M&A by Bullhorn and improving ARPU from new products launches in the mid-term. We reiterate our Buy rating and retain our PT of 300p.
Companies: Cloudcall Group
Bango has announced FY17A results ahead of our forecasts, with financial performance once again demonstrating strong growth and platform scalability. Momentum remained strong during the year, with End User Spend (EUS) confirmed as having more than doubled but opex having grown by just 13%. The positive outlook statement will give confidence in the near-term financial performance. Our FY18E adjusted earnings estimates are unchanged following the release and FY19E forecasts are introduced for the first time.
WANdisco’s co-sell agreement with Microsoft is possibly the company’s most important partnership to date, strengthening the company’s already enviable platform to capitalise on the rapid growth in cloud and hybrid cloud computing. Agreements with IBM, Alibaba, Dell/Virtustream and now Microsoft give a clear indication of the capability and uniqueness of Fusion. Near- and long-term prospects are reinforced as is the potential for WANdisco to grow into and exceed the current rating.
The 2017 performance built strongly on 2016, with Clareti y-o-y revenue growth of 48% driving 40% growth in adjusted PBT even as the group continued to invest in the business. The balance sheet is strong providing flexibility and options and the Board also recommended initiating a dividend (0.5pps), signifying confidence. We upgraded our revenue growth expectations for Clareti (expect +38% in 2018 and +27% in 2019). We believe Gresham’s continued momentum reflects a positive demand environment, a highly competitive and differentiated product set and a strong management team that will continue to drive shareholder value.
Companies: Gresham Technologies
StatPro has reported FY 2017 revenues and Adjusted EBITDA in line with expectations reflecting solid growth from Revolution and a positive EBITDA contribution from Delta. Reported revenue increased by 26% at constant currency rates (CCR), adjusted EBITDA was up 24% while adjusted EPS grew by 74%. The dividend is maintained at 2.9p. Group Annualised Recurring Revenue (ARR) increased by 35% to £53.04 million. The acquisition of UBS Delta in April 2017 was a key feature of the year and its integration into Revolution continues. The announcement flags a restructuring of the business in 2019 into three divisions to allow management focus on the specific growth opportunities in the business lines. CEO Justin Wheatley says that StatPro ended 2017 strongly and that the Group expects to see further organic revenue and profit growth in 2018. StatPro has started the current financial year in line with management expectations. We make minor adjustments to our FY 2018E estimates and introduce FY 2019E numbers.
Companies: Statpro Group
In the March 2018 edition of the Hardman Monthly Newsletter, Nigel Hawkins addresses the attractions of quoted infrastructure funds that maintain a low profile.
Companies: OPM ABZA AVO AGY APH ARBB AVCT BNO BUR CMH CLIG COS DNL EVG GTLY GDR INL MCL MUR NSF OBT OXB PPH NIPT PHP RE/ REDX SCLP SCE SIXH TRX TON VAL
We have spoken to R1 and we are revisiting the buy case by addressing some of the questions impacting the shares. With 3 significant deals in last 12 months the market is looking for evidence of underlying performance and successful integration of these deals. As a result it is, in our view, looking at historic numbers, rather than the 2019 and 2020 forecasts. We see significant cash flow potential going forward, and the potential for a significantly enhancing buy back. We believe RhythmOne itself is increasingly vulnerable to the industry roll up, from Private Equity or another industry player, given the very low forecast cash multiples it trades on. We retain our Buy rating and 770p price target.
IQE is a leading global supplier of advanced semiconductor wafers that are used in various applications ranging from mobile communications to industrial power. The company boasts a diversified global customer base and a unique IP portfolio with over 150 patents that enables the firm to provide a unique service to its customers. Headquartered in Cardiff, Wales, IQE shares were often misunderstood or underappreciated by investors in the past. However, as the company continued to deliver healthy growth winning volume contracts for new technologies (e.g. VCSEL), the share price nearly tripled in 2017 and the company successfully placed new shares raising £95m in November. Recent reports published by funds with short positions questioning IQE’s accounting with regard to profit and cash flow contribution from its joint ventures sent the stock price down by 45% from its November high. That said, the company rejected the allegation with the statement saying that the information in the short sellers report is “either factually inaccurate or has previously been disclosed in IQE’s annual reports and financial statements”. The company also appointed KPMG as a new auditor replacing PwC as of 12th February saying “the company holds itself to the highest standards of transparency, governance and integrity”. We find the management responses were timely and expect the share price to be stabilised going forward.
Frontier Smart’s FY’17 results show a strong year of growth with excellent cash generation, as flagged in January. Group revenue grew 28% to £41.0m while adj. EBITDA grew 171% to £1.9m (N+1Se: £1.8m). Both divisions performed well, with Digital Radio boosted by the FM switch-off in Norway and Smart Audio recording its first material revenues in the year. Strong free cash flow of £4.2m resulted in net cash at the year end of £3.0m (N+1Se: £1.7m). We make no material changes to our forecasts and continue to expect the group to benefit from rapid growth in the 3rd party Smart Audio market. Our intrinsic value range of 191p – 242p offers plenty of upside, with potential for further value creation as the Smart Home market establishes itself.
Companies: Frontier Smart Technologies Group
GetBusy’s maiden results published today were robust, coming in ahead of our forecast at both the revenue and pre-tax level; despite the impact of IFRS 15. Recurring revenue increased to 86% of revenue (83% in 2016) and the number of paying users increased to 57,000 (+11% YoY). Non-UK business, which accounted for a mere 6% of group revenue in 2015, increased to 45% in 2017. We have updated our forecasts for GetBusy and upgraded our Target Price to 48p/ share, +17% higher than our prior 41p TP. We reiterate our Buy rating.
The phenomenal take-up of cloud services is turning the IT industry on its head. Here corporate networks and in-house data centres are being replaced by third-party hosted (eg Amazon, Google and Microsoft) services, streamed from almost anywhere on the planet.
Companies: Blancco Technology Group
In today’s more detailed trading update, Sopheon has confirmed its brief statement in early January that revenue and profit for FY 2017E will exceed market expectations. As well as providing an anticipated revenue figure above U$28 million, it states that both EBITDA and pretax profits will be ‘significantly ahead of current market expectations.’ Today’s update notes that volume of transactions increased with a greater number of license deals and new SaaS customers – and Q4 contained two substantial deals. Sopheon ended 2017 with net cash of U$9.5 million. The group has a higher recurring revenue base and greater revenue visibility overall. We adjust FY 2017E numbers to reflect the guidance given today, driving a 31% increase in our Adjusted EBITDA estimate to U$6.9 million. We also adjust estimates for December’s conversion of loan stock and that is the only influence on our estimates for subsequent years where we retain a conservative stance and note future investment in the Accolade platform. We will look to revisit those estimates when further detail is available at the time of the results announcement.
Momentum has continued in H2, such that the company now expects FY18E sales and EBITDA (of at least) $28.0m (prev: $26.0m) and $2.3m (prev: $2.0m), implying impressive y-o-y growth of 70% and 31% respectively. In view of this update, we upgrade our FY18 forecasts (sales: +8%, EBITDA: +16%) but make n/c to FY19E. Having said this, given our forecasts now imply just 14% sales growth in FY19, we believe there is a strong likelihood of future upgrades. ZOO remains one to watch.
Companies: Zoo Digital Group
Having shown some signs of stability, markets have fallen over the last fortnight, due, in part, to concerns over potential trade tariffs which does not augur well. As the marathon of company results runs on, the majority have been as anticipated and will provide us a better insight into the outlook for corporate UK generally. However, the problems facing some retailers are clearly apparent. We have also continued to see significant M&A activity. In Share News & Views, we comment on APC Technology*, Hunting, James Fisher and Sons, PCF Group*, Ricardo and Swallowfield.
Companies: APC BMS CRPR ECSC EUSP FDM GETB PCF SNX SPRP TCN W7L