Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on IMImobile. We currently have 31 research reports from 4 professional analysts.
Microsoft unveiled the new Surface Duo, which runs on Android, at its annual hardware event on Wednesday. The folding phone features two side-by-side 5.6-inch displays that are connected by a 360-degree hinge. Microsoft said it partnered with Google to “bring the best of Android” to the device, while incorporating elements of Windows 10X, a new operating system meant for hybrid devices. It can also run two different apps at the same time. Specifically, the Surface Neo will rely on a new "Expression" of its Windows 10 operating system called Windows 10X.
Companies: KAPE EYE IMO
Facebook on Monday announced the acquisition of CTRL-labs, a New York start-up that specializes in allowing humans to control computers using their brains. The start-up will join Facebook Reality Labs, a division of the social media company that is working to develop augmented-reality smart glasses. The vision for CTLR-labs' technology is that it will use a wristband that allows people to control their devices. A very interesting move for a company that’s battling to keep real estate on consumers’ mobiles let alone in their brains.
Companies: EVRH EVRH DOTD EYE IMO IMMO KBT VRE
Wirecard has signed a memorandum of understanding with SoftBank's Brightstar and anticipates "Significant transaction volume" out of the deal, the German fintech announced on Monday. Under the agreement, digital financial services via a Brightstar platform are expected to be handled by Wirecard as the preferred payment service provider, Wirecard said. In our view, Wirecard’s MoU with Brightstar demonstrates SoftBank’s plan to promote interaction between its expansive portfolio network is beginning in earnest. We believe the resources of the combined US$100bn worth of investments is formidable, and if SoftBank can drive cooperation, there is scope of substantial value creation – which may help to justify some of the stand-out premiums implied at its investment rounds. ZAO, a new Chinese app that lets users swap their faces with celebrities, sports stars or anyone else in a video clip - racked up millions of downloads on the weekend but swiftly drew fire over privacy issues. The app's surge in popularity and sudden backlash from some users highlights how artificial intelligence technologies bring about new concerns surrounding identity verification. Digital privacy, data protection - and now images and biometric data – is being captured and commercialised at a pace that legislation in most economies is struggling to keep pace with in our view. We believe data, analytics and privacy will become a key theme of decade as consumers, governments and MNCs become increasingly aware of assets that were not considered valuable or sensitive just a few years ago. This is a structural theme we will be watching very closely as a potential edge (or liability) to business models on a medium-term horizon.
Companies: KAPE BGO BOKU EYE EQLS IMO TECH WDI
Walt Disney announced on Tuesday that it would offer a $13-per-month bundle of its three streaming services starting in November, a move to attract audiences who have embraced digital services such as Netflix. Disney's bundle includes family-friendly digital offering Disney+, sports service ESPN+, and Hulu, which will cater to adults, for a $5-per-month discount. Speculation in reputable trade publication The Information, mirrored in Reuters and 9to5Mac indicated the next iteration of Apple’s mobile operating system, iOS13, will move to limit apps’ access to data while running in the background. The press notes that this will have repercussions to Messenger and WhatsApp, both owned by Facebook Inc, given both depend on the specific features of iOS that allow internet calls – which may force them to redesign their apps. Snap on Tuesday said it will raise $1 billion in short-term debt and plans to invest in more media content, augmented reality features and may also buy other companies. The parent company of the popular disappearing messaging app Snapchat has revived its user growth and stock price after a rough 2018.
Companies: KAPE ZOO AMO EYE EVRH IMO MIRA VRE
IMImobile have announced the acquisition of 3Cinteractive (‘3C’), a leading US-based messaging platform company for $53.2m (£42.8m) to be funded through a combination of new debt, an equity fundraise and consideration shares. The strategic rationale is compelling, accelerating IMImobile’s presence in the high-growth US market, consolidating a leading position in Rich Content Services (‘RCS’), and offering a number of cross-sell/ upsell opportunities and cost synergies. Based on our conservative assumptions the acquisition and placing will enhance earnings forecasts by 1% in FY’20E, rising to 11% in FY’21E. IMImobile’s EV/FY’20E proforma gross profit multiple of 2.7x looks compelling, and we see risks in forecasts to the upside.
Interswitch, a Nigeria-based payments firm, has hired advisers to resurrect plans for a stock-market listing in London and Lagos later this year, which may value the financial technology company at $1.3 billion to $1.5 billion. Voyager AIR The Company will focus on the acquisition, leasing and management of primarily widebody aircraft, with asset management services to be provided by Amedeo Limited the IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m.Roxi Music UK music streaming service plans London IPO as it goes up against Spotify. They have appointed investment bank Arden Partners for an initial public offering (IPO) on the London Stock Exchange later this year.
Companies: SPE VLX VRS ARK CORA IMO DGOC HZD SNG EMR
IMImobile is a leading end-to-end Communications Platform as a Service (CPaaS) provider targeted at Enterprises globally. The group focuses on the automation and improvement of end-user engagement, improving customer experience (CX) and reducing costs. The group is well positioned to benefit from structural growth trends in CPaaS, offering a differentiated and intuitive interactions management platform, and we initiate coverage forecasting 10% gross profit and 9% EPS growth for FY’20E. FY’19 results confirmed strong organic gross profit growth in core markets (16% y/y), and with well flagged headwinds now clearing, we see high potential for group underlying growth acceleration. An intrinsic value of 420p/share offers strong upside potential for investors.
Essensys plc—a provider of mission-critical SaaS platforms and on-demand cloud services to the high growth flexible workspace industry, plans to join AIM. £28m raised. Half primary, half shareholder sell down expected 29 May 2019. Mkt cap £72.6m. Issue price 151p. Induction Healthcare Group plc—a healthcare technology company focused on streamlining the delivery of care by Healthcare Professionals looking to join AIM. Expected raise of £14.58m at 115p, market cap of £34.07m. Expected 22 May 2019. SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019
Companies: VTC EPWN APC MAB1 IMO RENX DODS BOKU AMYT
IMImobile has issued a full year trading update indicating that revenue will be ahead of expectations (6%), with EBITDA marginally ahead (2%). Revenue is expected to be up 28% to c£142m, with adjusted EBITDA increasing over 30% to over £17.8m. This is a strong financial performance that reflects the considerable sales momentum within the business, as well as strategic progress with partners and new geographies. Looking ahead, the year has started well and management is confident of continued organic growth across all parts of the business. A FY 2020 consensus EV/EBITDA multiple of c10x looks highly attractive given powerful market dynamics, a strong consumer engagement offering, double-digit organic growth and increasing profitability.
Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer TBC
Companies: MTR IMO NWF PPS RFX GHS SQZ WATR CNC
Network International Holdings—Potential Intention to Float— leading enabler of digital commerce across the Middle East and Africa region, operating across over 50 highly underpenetrated payment markets that contain a total population of 1.5 bn. 2018 rev $298m, underlying EBITDA $152m. Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Diaceutics, a data analytics and implementation services company which services the global pharmaceutical industry, due to join AIM 21 March. Mkt Cap c. £53m Raising £17m at 76p.
Companies: CGNR PYC GWI RAI MPM SBIZ AMER JAY IMO 7DIG
IMImobile interim results were in line. Revenues were up 26% to £67.2m (2017: £53.1m), this is 15% organic growth. Gross profit was up 18% to £29.2m (2017: £24.7m), 3% organic or 10% organic excluding impact of MTN. Adjusted EBITDA up 35% to £7.7m (2017: £5.7m). Adjusted cash generated from operating activities of £6.1m representing operating cash conversion of 80% (2017: 100%). Net debt at 30 September 2018 was £9.3m (31 March 2018: net cash £4.3m). IMO expect full year results to be in line with management expectations. We retain our Buy rating and PT343p.
Summerway Capital investing company established to acquire companies or businesses which the directors of the Company believe have the potential for strategic, operational and performance improvement so as to create shareholder value. Offer TBC, market cap TBC expected 19 October Admission is being sought as a result of the proposed RTO of Cambian Group plc following completion of the acquisition by CareTech a leading provider of specialist social care services, supporting adults and children with a wide range of complex needs. No raise, market cap TBC expected 19 October. PetroTal (TAL.TO) - The exploration and production company focused on oil assets in Peru is seeking a secondary AIM quotation before the end of 2018. Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due early Oct Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due Mid October 2018. EBITDA Profitable. Offer TBA Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.
Companies: IMO CGNR CMCL CRC SSTY FOX ERIS VERS LIO NXR
Research Tree provides access to ongoing research coverage, media content and regulatory news on IMImobile. We currently have 31 research reports from 4 professional analysts.
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|20Sep19 12:10||RNS||PDMR Dealings|
|17Sep19 11:50||RNS||Blocklisting Application|
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Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.
Companies: ABBY AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CDM CSRT TIDE CYAN DTG DEMG ELM EMR FPO FDEV GTLY GENL GHH GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KAPE KEYS KWS KCT KGH LAM LIT LOK MACF MANO MOD OXIG PCA PANR PARK ESRE PHC PMO RBW RMM RBGP REDD RSW RNO ROR SUS SCPA SEN SHG SOLG SOM SUMO TM17 INCE TWD TRAK TRI VNET VTC ZOO ZTF
dotdigital’s final results contain no surprises, having been largely flagged at the trading update in July. The group continues to deliver high quality growth, with good progress being made across each of its strategic pillars. Group organic revenue growth from continuing operations of 15% was driven by growth in all geographic regions, with new product functionality continuing to drive increased revenue from existing customers. Further strong execution is expected and we are making no major changes to our forecasts. With net cash balances forecast to rise quickly from here, we believe the group has strong opportunities for both organic and acquisitive growth, offering multiple avenues for future value creation.
Companies: Dotdigital Group
Oxford Metrics has issued a short trading update for the year to September 2019. Revenue is expected to be in line with expectations and net cash at the year end is 10% ahead of our forecast. Due to the mix of revenue across both divisions adjusted PBT is expected to be broadly in line with expectations, although given the strong cash generation in the year we suspect this is a timing issue. We continue to believe Oxford Metrics provides investors with a unique mix of market leading IP, growth and cash generation, while being exposed to some of the most exciting structural trends in the technology space (Augmented/Virtual Reality, Autonomous Vehicles, and Gaming etc.).
Companies: Oxford Metrics
Eckoh’s Capital Markets Day yesterday highlighted the progress which has been made on the Customer Engagement side of the business. With all products now successfully integrated into the Eckoh Experience Portal, the group is uniquely placed to enable digital transformations within their customers. We were shown several live case studies where the group has been able to deliver both an improved experience for end users and significant cost savings for clients by implementing a connected cross-channel customer experience. Last month’s AGM Statement and Trading Statement confirmed strong underlying momentum in both divisions and we see plenty of scope for growth within Customer Engagement, which will augment the large untapped opportunity in US Secure Payments.
Bango recently announced that its resale routes reach over 2bn subscribers. In this note we discuss an area which we believe could represent a material future growth opportunity – bundling and resale. The group’s initial focus is on OTT service providers, where we expect the addition of new OTT service providers and new resellers to the Bango Platform to drive growth. With a number of resale routes already announced, the group is already gaining commercial traction. Partnerships with global internet leaders such as Amazon, Pandora and Spotify further validate the service.
Final results to June indicate performance in line with expectations, with EBITDA of £14.7m (£15.0mE) delivered from revenue of £42.5m (£42.5mE) leading to adj. dil. EPS of 3.9p (3.4pE, outperformance due to a lower tax charge) and free cash flow of £6.2m (£6.3mE). In a post-GDPR, pre-Brexit world, DOTD has simply got on with the job, driving increased ARPU of £966 (FY18: £845) from more customers taking more products in more territories, with a greater number of channels and partners. This has led to 15% organic growth from continuing operations with 86% recurring revenue (90% contracted) – with the strong visibility supported by a hearty balance sheet including £19.3m net cash, giving DOTD strategic opportunities to add to its existing operational strength. There are few companies we can point to which consistently deliver 15% organic growth, PBT margins over 25%, and reliable cash conversion (>80% op cash/EBITDA). Target 135p reiterated.
Companies: Dotdigital Group
We recently met with the divisional management of one of Instem’s businesses – Informatics. Despite its relatively small scale, the unit has an interesting platform, is experiencing significant growth, and some of its services offer both material cost savings and process improvements to major players in the pharma market. It therefore offers Instem a greater degree of value than might be apparent simply by looking at its current scale – today’s RNS highlights informatics order intake up c60% YoY to £0.84m during the first nine months of 2019. This note summarises the mediumterm potential of the unit, both in its own right, and to Instem as a whole.
IndigoVision’s improved performance looks set to be sustained through FY’19E and into FY’20E. The digitisation of the surveillance industry has led to accelerated end–market growth, with the group well placed to meet demand supported by a strong brand and restructured sales team. Investment into global distribution channels, a new CRM and an upgraded ERP platform are expected to drive both better visibility of revenues and sustain recent improved working capital management. We introduce FY’20E numbers forecasting 33% EPS growth, the current valuation of 8.4x FY’19E P/E looks undemanding, with the share price a 4% discount to FY’19E NAV.
Companies: Indigovision Group
Although Nanoco’s major US client will not progress to volume production in the foreseeable future, commissioning work continues on the new production capacity, which is scheduled to complete by December. Once that is completed, the facility will be able to produce high-quality infra-red nanomaterials for use in a number of electronics applications. It could therefore be used to service future demand from the US customer or potential new customers in the electronics or display industries with which Nanoco is in the early stages of discussion. The current market capitalisation appears to assign little value to these assets at a time when there appears to be renewed market interest in quantum dots.
Companies: Nanoco Group
SDL held a well attended Analyst and Investor day yesterday at its Maidenhead HQ. The Group showcased its Helix, Insight and Tridum DX platforms, as well as offering a demonstration of the new Language Cloud portal which opens up the prospect of a fully automated machine translation portal in the future. We continue to see SDL as well placed within the premium content space (market growth estimated: 10% -15% pa), while also delivering growth within the user-generated content market (estimated growth: 15% – 25% pa). We make no changes to forecasts at this time. SDL trade on an FY’20E EV/EBITDA multiple of 9.9x, an attractive multiple given healthy growth, strong technology platforms and expected benefits from DLS integration.
EMIS has been selected for the GP IT Futures framework, securing it the opportunity to continue to sell its core clinical GP software in England. Despite the change from per practice to per patient charging, management expects to receive broadly similar payments. In our view, the risk of increased competition in the core systems market should be weighed against the potential to generate incremental sales of catalogue solutions.
Companies: Emis Group
essensys has released a strong set of maiden full year results, beating expectations set at the time of the IPO. The group continues to benefit from the structural growth being seen in the flexible workspace market, with both its Connect and Operate platforms delivering strong performance. Today’s results highlight the recurring revenue and pipeline visibility inherent within the model, with run rate recurring revenue ending the year up 27% at £17.3m. We are prudently making no major changes to our forecasts today, despite the committed pipeline significantly underpinning our growth assumptions. With an experienced management team in place and a highly favourable market backdrop we believe the group is set to continue its impressive growth trajectory throughout our forecast period and beyond.
CentralNic Group has a solid set of interim results for the first six months of FY2019E, it was a busy period with the group completing 3 acquisitions immediately post the period end, issuing a €50m listed bond instrument and making solid progress in delivering on its stated accelerated strategy. Revenue for the first six months is up 225% yoy, with c.6% organic growth, in line with long term trends for the group. These results are the first time the group have reported in US Dollars. The group’s main functional currency is USD and we believe this is a sensible decision and should remove some currency related risk from the forecasts. CentralNic has made significant progress in delivering on its stated strategy of supplementing organic growth with quality acquisitions, focusing on recurring revenue businesses, in attractive regions. On our new USD based forecasts, the group trades on a 2019E EV/EBITDA of 8.7x (falling to 7.0x in 2020E) and a P/E of 11.0x.
Companies: Centralnic Group
Brady has received a recommended all-cash offer at 10p per share (a 50.8% premium to the closing price), valuing the issued share capital at £8.3m, from Hanover Active Equity Fund II, a private equity (PE) investor focused on SMEs in the UK and Nordic markets. The cash offer has been declared final, will be declared unconditional as to acceptances based on 50% of the share capital and may only be increased if there is a counter-offer. Before the bid, Brady had been looking to secure additional funding for a turnaround strategy, and although negotiations have advanced, the company has not yet secured unconditional funding.
IQE has acquired the third-party shareholdings in its CSDC joint venture in Singapore for a nominal fee. This gives it control of the operation, which is currently loss making, enabling it to restructure the business and focus it on emerging sales opportunities in Asia for molecular beam epitaxy (MBE)-based products. Short term, the deal has a negative impact on earnings. We reduce our FY19 and FY20 EPS estimates by 8% and 5%, respectively.