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Following inline H1 results, we view this morning's update on the Major Programme which has been in PEN's sights for a lengthy period as welcome in bringing greater clarity to this long-running situation. While this morning's update, though disappointing in confirming that PEN's opportunity within the overall Major Programme is less substantial than at one time seemed possible, is nonetheless positive in our view in (1) allowing the company to move its software-led strategy forward more aggressi
Companies: Pennant International Group plc
PEN's H1 results this morning are in line with last month's trading update with revenues at £7.4m, well up on the prior year, a significantly reduced EBITA loss, and good progress from the Integrated Product Support (IPS) software business in particular. The company provides software and analytical services in parallel with highly technical engineering simulations, mainly focused on training and asset maintenance, now in the US as well as Canada, Australia, the Middle East and the UK. PEN cont
Pennant's FY2020 results, published this morning, amply illustrate the impact of Covid crisis restrictions on their business – but also the strong response from the company, and the start of a major recovery programme, prompting us to return forecasts to the market. Losses in 2020 reflect disruption which impacted both clients and PEN itself, however (1) the company succeeded in generating significant upward momentum in H2, notwithstanding further lockdowns, (2) cost reductions of approaching £
The headline numbers in this morning's results are not new news, having already been flagged to the market in the company's update on August 13th. Rather, the new news is (1) cost-savings in excess of £1m, (2) post-period end contract wins which add around £2m to FY20E likely revenues, (3) breaking of some H1 logjams due to Covid, with key design reviews passed for General Dynamics and substantial invoices raised and paid. £2m net cash on the balance sheet previously flagged is confirmed, and
This morning's update from PEN reflects (1) good progress with the order book standing at £36m (up 9% vs. the year-end number cited in PEN's May 22nd business update, (2) a very creditable figure of £1m annualised cost savings, and (3) net cash at £2m, reflecting positive working capital movements and strong disciplines. In terms of net cash, this represents a £4m turnaround, which we view as an extremely positive result. This morning's news follows on from last month's conversion of the first
News of conversion of the first tranche of the contract towards which PEN received a Statement of Intent back in February is very encouraging. Of the total order, which was valued in February at up to £5m, £1.5m has been placed with the company for training aids, chosen from PEN's existing suite of generic products, to be recognised as previously anticipated in 2021.
This morning's announcement from PEN highlights significant mitigations of some of the Covid-19 risks identified in its recent Report & Accounts, notably where cash and working capital are concerned. From this perspective it is highly reassuring that major invoices to the tune of £2m in relation to PEN's contract with General Dynamics (GD), delayed by the practical issues around milestone meetings during the pandemic crisis, have now been raised, with help from virtual technology, and that writ
Results from PEN this morning for the year to December 2019 are fully in line with expectations, with £1.6m of EBITA from £20.4m of revenues, also £1.6m PBTA. Net debt at £2.2m is likewise well aligned to expectations. Successful fulfilment of the major Qatar contract is a powerful reflection of PEN's specialist technical capabilities and client-orientated model. In addition, a key challenge for 2019, the successful re-scoping of the General Dynamics contract, was also met. Before, the bulk
Today's news of agreement with one of PEN's major customers is positive. The company has announced that mutual agreement has been reached on changes which were requested by the client back in August last year in relation to the UK's armoured vehicle programme. PEN highlights approximately £5m to be recognised in the current and coming years, and a £1.5m increase in the overall contract.
PEN's announcement this morning that it has completed the ADG acquisition announced on January 21st opens up a number of positives for the company, notably (1) it complements the suite of software products which PEN already owns, creating an integrated offering, (2) it takes PEN's software business into new sectors (for example, commercial aerospace and marine), (3) it provides the company with a convincing entrée into the US for its software activities (two thirds of the target company's revenu
New £5m contract win heralded – expected to convert in 2020
News from PEN this morning that it has received a Statement of Intent for a contract to supply training aids to a long-standing client in the Middle East adds yet another piece to the 2020 jigsaw, assuming conversion. With £20m revenues forecast for the current year, and the company “optimistic” about conversion FY20E, the extra £3m anticipated for 2020 looks like taking estimated revenue cover in the current year from 70%-plus to more
Inspecs, a UK designer, manufacturer and distributor of eyewear frames to global retail chains announces its intention to IPO onto AIM raising £94m with a market cap of £138m. Admission expected 27th February. FY Dec 2018 numbers show revenue of $57m and underlying EBITDA of $11m
Companies: SO4 TRP ECHO TIME EBQ SBTX CGH PTRO PEN
Research Tree provides access to ongoing research coverage, media content and regulatory news on Pennant International Group plc.
We currently have 58 research reports from 4
Companies: Bango plc
JOHN MENZIES+ (MNZS, BUY at 315p) – Note Publication: Evolutionary trends…
MARKS & SPENCER+ (MKS, HOUSE STOCK at 253p) Q3 TS – FY22 guidance firmed up, c5% underlying upgrade
NORTHBRIDGE INDUSTRIAL SERVICES+ (NBI, House Stock at 174p) - Further progress in Tasman disposal
BUNZL^ (BNZL, BUY at 2723p) – Note published: Solid strategic outlook
TESCO^ (TSCO, BUY at 292p) Q3 & Christmas TS – a beat to expectations and so further FY22 upgrades (c5%)
HILTON FOOD G
Companies: IDEA BRK ASC PFG MAB HFG TSCO BNZL NBI MKS MNZS
We believe the narrative for the UK equity market remains very good. Some inflation appears embedded in markets and economic growth seems robust. We saw investors show caution into the end of 2021 and so have cash to deploy in our view. This has been corroborated by investor feedback we’ve had already this year. The UK equity market is materially cheaper than global equities on a relative basis so asset allocators have to be looking at UK equities while UK 2022 GDP growth is likely the best of t
Companies: AFM ANX AXL CYAN GLAN MODE OBI MATD SEN SOM WSG
Monthly Gaming Wrap-up: December Round-Up
Companies: Keywords Studios plc (KWS:LON)Team17 Group PLC (TM17:LON)
Genflow Biosciences, a UK-based biotechnology company focused on longevity and the development of therapies to counteract the effects of aging and diseases associated with advanced age intends to float on the Main Market (Standard). The Company will become the first longevity biotechnology firm to list in Europe. Genflow has raised £3.7m in an oversubscribed placing, conditional upon admission becoming effective. The flotation will value Genflow at approximately £23.4m.
SuperSeed Capital Limited
Companies: RQIH ABDP ACRL HAYD IQG
As expected, the industry-wide supply chain challenges and inflationary pressure have weighed on Asos’ activity. However, the group has maintained its FY 22 guidance despite ongoing market headwinds. Also, Asos has announced its intention to move to the main market of LSE.
The confirmation of FY guidance and move to the main market of LSE shows the management’s strong confidence and enhances the strategic visibility after the departure of the CEO and change of chair.
Companies: ASOS plc
Highlights of FY21 are 28% organic revenue growth at Clareti, group EBITDA 8% ahead of our forecasts and net cash nearly £4m ahead of our expectations on “very strong” cash collections and lower than expected acquisition costs. Our unchanged FY22 forecasts are well underpinned by 88% contracted revenues. We forecast ARR will grow a further 17% organic in FY22, which is one of the fastest growth rates in our universe. We introduce a Buy recommendation and 220p price target.
Companies: Gresham Technologies plc
No Joiners Today.
Ridgecrest (Formerly Nakama Group) has left AIM.
What’s cooking in the IPO kitchen?
Carbon Air, a nano-technology company which leverages the adsorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company's proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems,
Companies: SYS1 AML AML CWR ESNT GML JDG RENX RRR AIR
Amazon has responded exceptionally well to the unprecedented customer demand they have experienced since the beginning of the pandemic. The company has also experienced great growth in their advertising offerings as vendors and sellers have embraced their ability to establish brands and target customers just as they are thinking about making a purchase. Amazon's Q3 revenue of $110.8 billion represented a two-year compounded annual growth rate of 25% compared to a pre-pandemic growth rate in the
Companies: AMAZON COM (AMZN:NYSE)Amazon.com, Inc. (AMZN:NAS)
What’s cooking in the IPO kitchen?
Genflow Biosciences, a UK-based biotechnology company focused on longevity and the development of therapies to counteract the effects of aging and diseases associated with advanced age intends to float on the Main Market (Standard). The Company will become the first longevity biotechnology firm to list in Europe. Genflow has raised £3.7m in an oversubscribed placing, conditional upon admission becoming effective. The flotation will value Genflow at approximatel
Companies: ZOO AFN ASC CPP FIF PIP
While we were away
Mac Alpha Limited (MACA.L) joined the Main Market. (24/12/21)
Atome Energy PLC (ATOM.L) joined AIM. (30/12/21)
What’s cooking in the IPO kitchen?
Graft Polymer a business focused on the development of polymer modification and drug delivery systems is to join the Main Market (Standard). Graft Polymer has developed a proprietary set of polymer modification technologies, which can improve existing products and processing methodologies by enhancing per
Companies: VLX VRCI LBE RENX SOM TAST DDDD CMH IQG SRC
Where next for markets in 2022? In our view, if COVID is not on the way out, we are just going to have to live with it now and it will have less and less impact on economic forecasts going forward. Instead, the bigger issues for investors to deal with in 2022 are cost inflation and staff shortages for business (which are already hitting earnings momentum), energy cost inflation and higher taxes hitting the consumer wallet, and markets that start from very elevated valuation multiples compared wi
Companies: GML HAT IOG LOK MTC QTX SOM SCE SNG TRCS TRMR
Following a +24% upgrade to FY21 EBITDA at its 16 December trading update, Audioboom has announced an even stronger end to FY21, and we upgrade our FY21 revenue by +2% to $60.2m, adjusted EBITDA by +19% to $3.0m, adjusted EPS by +22% to $0.16, and net cash by +40% to $3.0m. The upgrades have been driven by Audioboom capitalising on strong advertiser demand for its premium podcast content, strong growth in podcast audiences, and the highly successful launch of its SHOWCASE platform in Q4. For its
Companies: Audioboom Group PLC
Interims confirm unchanged forecasts after a busy end of 2021 that concluded with a flurry of acquisitions, a capital markets day, and a £104m placing. Six acquisitions in the current financial year (to April) complement 13% annualised organic ARR growth, lifting proforma ARR (including post period end acquisitions) to £86.3m (1H21: £54.8m; FY21: £64.1m). Adj EBITDA of £13.2m maintained an EBITDA margin of 34.1% vs 34.5% in 1H21, compounding the benefit of headline revenue growth of 33% to £38.
Companies: Ideagen PLC
Companies: Mirriad Advertising plc