Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on IMImobile. We currently have 15 research reports from 3 professional analysts.
City law firm Rosenblatt reported in the press to be considering a London listing. The commercial firm had a reported revenue of £16m in 2017 VR Education Holdings—a virtual reality software and technology company. Raising £6m at 10p, mkt cap £19.3. Due 12 March SimplyBiz, a Financial Services Firm, reported to be considering an IPO targeting a market capitalisation of between £140m and £155m in a listing that would raise £30m of new money. Bacanora Lithium—Readmission. No new money. Mkt cap £140m. Due 21 March. the new holding company for Bacanora Minerals Ltd Core Industrial REIT—established to invest in Irish-based industrial properties, predominantly located in the Greater Dublin Area. Vendor placing and new funds to a total of €225m, Target gross proceeds €207m. Expected Mid March Polarean - Medical drug-device combination company operating in the high resolution medical imaging market. Offer TBC. Due Early March Block Energy—a NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC
Companies: PNS ANP NET HZM NTOG AGY MIRA IMO CROS TYMN
Block Energy—a NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC 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. Offer raising £30m at 165p with mkt cap of £100m . Due 9 Feb.
Companies: IQE SMS VRS IMO STX VLTY CSSG ECK
IMImobile has agreed to acquire Healthcare Communications, the leading provider of appointment management and patient experience communications to the UK healthcare market. The initial consideration is £9.0m payable in cash upon completion, with a further deferred consideration of up to £6.0m payable in cash or shares, based on achievement of gross profit growth and EBITDA targets over the next two years. The Acquisition is expected to enhance Group earnings during the year ending 31 March 2018.
Panthera Resources— The Company was established to act as a holding company for Indo Gold Limited, an unlisted Australian registered company. The Company aims to explore and develop gold assets in India and West Africa. Offer TBC, expected 20 Dec 2017 Sumo Group—one of the UK's largest independent developers of AAA-rated video games providing both turnkey and codevelopment solutions, including initial concept and pre-production . Offer TBC. Due late Dec Pelatro—provider of proprietary software solutions to enterprise-level customers for various aspects of precision marketing for use in B2C applications. Offer TBC, expected 19 December 2017 Fusion Antibodies—Belfast based contract research organisation providing services to biopharmaceutical and diagnostics companies that are involved in the development of antibodies for both therapeutic drug and diagnostic applications. Offer TBA. Due Mid Dec. Sirius Petroleum—RTO. Becoming an operating company in the Ororo Field in Nigeria. Raising £7.2m/ Mkt Cap £35.6m. Due 19 Dec. Bushveld Minerals—RTO of Bushveld Vametco and therefore 78.8% of Strategic Minerals Corporation, the intermediate holding company that owns a 75 per cent. interest in the Vametco Vanadium Mine. Range Resources— oil and gas company listed on the ASX plans to admit to AIM on 13 Dec with market cap of £17.4m. Also acquiring Range Resources Drilling Services Limited, an oil services business based in Trinidad & Tobago with extensive drilling capabilities. Eqtec—Company with access to a proprietary advanced gasification technology used in industrial size power plants to convert waste into synthetic gas to generate electricity. Raising £1.6m. Mkt Cap £8.7m. Due 21 Dec. Volex VLX.L—The global provider of cable assemblies is proposing to move from the main market to AIM on 19 January. £71m market cap. FYMar18E rev £241.5m and £7.19m PBT 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. Expected 19 Dec. 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.
Companies: TMT MTR TPOP BMK ELCO BAGR AVO IMO AFN VDTK
While the direction of forecasts was announced at the trading update, we think it is worth revisiting the margin side of our investment case, post some Q&A at the results meeting.
Post the trading update on 1st November IMImobile has released its interim results for the half year ended 30th September. We increased our revenue, and gross profit, forecasts at the time of the trading statement, and results for the full year are expected to be in line with these revised estimates. We retain our Buy rating and 260p price target as we see continued growth prospects, we also see the potential for underlying margins to increase after a period of investment.
IMImobile has today announced an acquisition and a trading update ahead of results on 21st November. IMImobile has agreed to acquire the trade and assets of the Sumotext Corporation in the USA. This strategic acquisition provides a platform to launch IMImobile’s product offering to the enterprise market in the US.
IMImobile has today released its year to March 2017 Full year results. The results are very much in line with the trading statement released on the 27th April. IMImobile has experienced strong trading across all regions and business units. We upgraded our numbers at the EBITDA level by 4.2% at the time of the trading statement. We are not changing any of our forecasts today. We are however upgrading PT on the back of medium term margin potential.
IMImobile has released a trading update ahead of its preliminary results for the year end 31 March 2017. IMImobile has experienced strong trading across all regions and business units. In response to this we marginally increase our 2017 numbers, including a 4.2% increase in EBITDA. We maintain our BUY and 220p T/P.
In our second edition of “Trend spotting” we note how in the last three weeks the defensive rotation trend has gathered pace and further evidence has emerged of the “relative fading” in the UK economy. However we now see early signs of the “risk on” trend starting to reassert itself in equity markets and we look at small cap laggards plus European exposure as ways to play this.
Companies: GNS NTG SPH TRI XAR BOY VCT GHH CHH DPH INS HILS RPS LWB EKF UDG SYNT MYSL IMO BCA JUP KMK
IMImobile have announced the acquisition of Infracast Limited for an initial consideration of £8.2m. Infracast is a leading provider of multi-channel messaging applications and will expand IMImobile’s customer base whilst providing significant cross-selling opportunities. This looks another high quality acquisition. We remain Buyers and increase our T/P to 220p.
Karelian Diamonds (KDR.L) | Europea Metals Holdings (EMH.L) | M&C Saatchi (SAA.L) | EMIS Group (EMIS.L) | F W Thorpe (TFW.L) | Regency Mines (RGM.L) | Stilo International (STL.L) | Diurnal Group (DNL.L) | IMImobile (IMO.L) | Rotala (ROL.L)
Companies: EMH SAA EMIS TFW RGM STL DNL IMO ROL KDR
Mobile phones are increasingly the key connection for the modern world. This means that the performance of mobile phones, and their networks, is going to become more critical for all the apps and businesses that rely on them. New technologies such as VR, AR, and AV will need better, more reliable connections to really move into the mainstream. In this thematic piece we attempt to identify some of the most important issues facing mobile phone networks and their users, and start to identify solutions and enablers that will solve these problems and create value by doing so.
Companies: ALM BLTG FTC IMO IPO IQE TERN IVO SAT
IMImobile has reported another strong year of financial and strategic progress across the entire Group. 2015/16 results are in-line with our forecasts. Critically, the company’s operations have started to gain traction in the Americas. Africa and the Middle East continue to benefit from Smartphone penetration and the business in India has stabilised. We remain Buyers with an increased Target Price of 210p.
Research Tree provides access to ongoing research coverage, media content and regulatory news on IMImobile. We currently have 15 research reports from 3 professional analysts.
|07Mar18 07:00||GNW||IMImobile launches RCS Business Messaging in its customer journey automation platform IMIconnnect|
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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