Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on K3 BUSINESS TECHNOLOGY GROUP. We currently have 40 research reports from 5 professional analysts.
|17Jan17 05:15||RNS||Holding(s) in Company|
|10Jan17 07:00||RNS||Trading update|
|04Jan17 03:00||RNS||SIP Announcement|
|02Dec16 03:02||RNS||PDMR Announcement|
|30Nov16 12:02||RNS||Holding(s) in Company|
|24Nov16 11:49||RNS||Result of AGM|
|24Nov16 07:00||RNS||AGM Statement|
Frequency of research reports
Research reports on
K3 BUSINESS TECHNOLOGY GROUP
K3 BUSINESS TECHNOLOGY GROUP
Order slippage drives earnings downgrade
10 Jan 17
K3 had a tough end to H117, with lengthening sales cycles for enterprise customers causing a shortfall in new business. More positively, recent restructuring is starting to drive more cross-divisional sales and is reducing the cost base. We have revised our revenue and EPS forecasts to reflect the slower pace of order wins as well as the restructuring, reducing FY17 EPS by 34% and FY18 by 11%. Evidence of improving order flow, growth in channel sales and growth in recurring revenues will be the triggers for share price recovery, in our view.
Short term trading pressure
10 Jan 17
K3 has this morning published a trading update; there has been weakness in December trading as customers continue to adopt subscription-driven Cloud-based models. This trend, combined with a number of contract slippages, has impacted H1, and management are not confident of making up the shortfall in H2. We downgrade our 2017E estimates by 18% at the Adj EBITDA level. We await further detail, both in terms of strategic progress and around the near-term pressures, with the H1 results due towards the end of March. Clearly this news is a disappointment, but it should not divert the group from its ongoing strategic refocus, which is already beginning to bear fruit.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
Product, cloud, channel – all present and correct
13 Sep 16
Prelims to June 2016 are in line with the 14 July trading update, which had heralded performance broadly in line with expectations. The year showed development of sales of the group's own IP, the international indirect sales channel, and cloud delivery, with strength in momentum demonstrated by a very strong pipeline and performance broadly in line with expectations despite the administration of a major client. Given underlying momentum, FY17 forecasts are tweaked (-3%) and only below EBITDA to accommodate greater amortisation of R&D, as well as working capital recovery. Maiden FY18 forecasts illustrate the undaunted group trajectory. with 11% EBITDA and 9% EPS growth from 5% revenue growth. Target 465p reiterated.
Making Mobiles Better
17 Jan 17
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.
Panmure Morning Note 18-01-2017
18 Jan 17
Blancco technology, a leading provider of data erasure solutions and mobile device diagnostics, has announced that its underlying profits are ahead of expectations. Organic sales growth remains strong, the group continues to win larger ticket orders and the mobile diagnostics is performing ahead of plan. Consequently, we are raising our FY17 PBT forecast from £8.0m to £8.3m.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - NCC Group - Interims confirm underlying business sound
19 Jan 17
NCC’s interim results were largely flagged in the detailed trading update released in December. Group revenue increased 35% to £125.8 (organic growth +18%) and adj. EBITDA grew 15% to £21.3m. The group’s issues relating to contract losses/deferrals in the period were previously announced and are already included in our forecasts. The group has maintained its interim dividend at 1.5p, which we believe is an indication of the strong underlying business. Separately, NCC has announced that Paul Mitchell intends to step down as chairman in May ’17. We continue to believe that NCC remains a highly attractive asset in an area seeing strong structural growth and see the current share price weakness as an opportunity. We retain our Buy recommendation and 233p target price.
N+1 Singer - dotDigital Group - Trading update
17 Jan 17
dotDigital issued a trading update for the six months ended 31 December 2016, indicating revenue growth up 17% y-o-y to £15.0m with EBITDA in line with market expectations and on track for the full year. Cash has grown to £18.9m. Revenue was slightly light of expectations owing to a slower start in the US but Q2 already showed improvement with a strong pipeline building. Our EBITDA and EPS forecasts are unchanged but revenues trimmed by 4% for both years. There is much activity in broadening avenues of growth in terms of new connectors, partnerships and geographical footprint and we remain positive of its prospects. Interim results will be released on Feb 21.
33% upgrade to January 2017 PBT
09 Jan 17
Redstone has released a trading update stating it ‘expects to report EBITDA at the upper end of market expectations’. This implies EBITDA of £1.8m which is above our current estimate of £1.5m. Accordingly, we are upgrading our PBT forecast for the year ending January 2017 by 33% to £1.2m from £0.9m. We reiterate our buy recommendation with a 2.2p price target implying 69% upside.