Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SIMIGON LTD. We currently have 11 research reports from 1 professional analysts.
|24Nov16 02:18||RNS||Notice of AGM|
|05Oct16 07:00||RNS||Holding(s) in Company|
|27Sep16 04:24||RNS||Issue of Equity|
|19Sep16 07:00||RNS||Interim Results|
|12Sep16 03:03||RNS||Holding(s) in Company|
|23Aug16 07:00||RNS||Notice of Interim Results|
|28Jun16 07:00||RNS||Posting of Annual Report and Accounts|
Frequency of research reports
Research reports on
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*.
Well positioned to take flight again
20 Sep 16
SimiGon’s revenues have been sliding half-on-half since H2 2014 while the company has focused on delivering the massive $6.7m military training project won as a Prime Contractor in 2013. Its delivery has been slowed by the client requesting work outside the scope of the original contract, but that has been balanced with the prospect of lucrative follow-on stages. Although billings have been affected over this period, gross margins have remained high and overheads have been controlled, so SimiGon has continued to generate earnings, cash and dividends. The major project has been meeting milestones and should be completed in H2, leaving SimiGon well placed to win those lucrative subsequent phases. In the meantime, the company has also won a major 5½-year $7.9m contract in civil aviation. It is now well funded ($8.4m net cash) with major contracts to deliver and some very exciting potential contracts ahead.
The Joy of Techs
15 Aug 16
Mobile money has been an awkward area for investors and industry alike. There have been too many new arrivals offering too many new solutions, leading to a confusing plethora of payment methods for both consumers and retailers, championed by varying stakeholders: banks, credit card suppliers or mobile network operators (MNOs). In this, the mobile money industry has ignored the key element of currency – that it is universally recognised and accepted. The confusion of competing payment methods inevitably led to numerous failures. The industry has promised much: a total technological revamping of the monetary systems in place since ancient times, in a short space of time, but has delivered little to date. However, that is not to say changes aren’t happening.
The Joy of Techs
04 May 16
This quarter's topic: Feasting on Red Tape. 2016 harbours every chance of being a stultifying year, given the imminent local and London mayoral elections, the looming hurdle of Brexit, the summer doldrums, the bizarre potential outcome of the US presidential election and then the home strait to Christmas. Excuses for inactivity abound with regard to spending IT capex budgets.
Earnings outperformance on lower overheads
19 Apr 16
The global leader in simulation and training solutions provider has delivered strong earnings outperformance on the expected lower revenue. SimiGon had previously flagged that delayed delivery of its major $6.7m prime contract won in 2013 would affect recognised revenue in FY 2015, and we reduced our expectations to $6.8m. In fact, the company delivered $6.9m. Moreover, there was a dramatic reduction in overheads, across all areas but notably in R&D, which has led to a significant rise in operating margins (from 17% to 25%) and consequently to adj. PBT rising 17% to $1.7m, well ahead of our forecast $1.5m. The adj. FD EPS of 3.3c is up 13%, again ahead of our 3.0c expectations. Trade debtors rose considerably, affecting cash conversion to such an extent there was a $1.7m outflow from operations. With the $0.3m dividend payment in the year, this led to a $2.0m reduction in net cash to $7.4m at December 2015. $1.8m of the $3.7m trade receivables have been collected since the year end and – in a demonstration of confidence – management has maintained the dividend at the 0.6c declared last year. We reiterate our 45p target price.
Taking a prudent road
28 Nov 16
As flagged in September, H1 2017 profit is indeed below LY; adj. PBT of £0.5m compares with £1.5m in H1 2016 as Trakm8 invests heavily in new technology and acquisition integration. Management remains confident in another very strong H2 performance and in particular is focused on closing a couple of large high-margin software-related sales which would see the group meeting the original FY 2017 expectations of £5.9m adj. PBT. However, should these fall outside the March year-end, profits are only likely to be in line with last year’s £3.9m, albeit on a growing revenue base. Prudence dictates we assume a worst-case scenario in our forecasts so that surprise is only in the upside – if the deals close in the year, the company will meet those original revenue and profit expectations.
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
Deal beefs up media & broadcast operations
28 Nov 16
SCISYS is acquiring Germany-based ANNOVA Systems for an estimated deal value of £15.3m. ANNOVA is a leading supplier of software-based editorial solutions to the media sector. It has a track record of generating strong revenue growth and in 2015 won a landmark contract with the BBC, which underpins financial forecasts for 12 years. ANNOVA complements SCISYS’s dira! product offering for radio broadcasters, extends the group’s capabilities into television and creates cross-selling opportunities. The deal significantly boosts earnings, aided by cheap debt financing costs, and is value enhancing on our assumptions. Consequently, we believe the stock continues to look attractive on c 10x our FY17e earnings.
N+1 Singer - Eckoh - In line interims, US secure payments gathers pace
29 Nov 16
Eckoh delivered interims in-line with expectations. UK growth was 11% whilst the US, reflecting a full period for PSS now accounts for 30% of sales. US Secure Payments wins gathered pace, with much larger contracts being won on SaaS-style pricing models and the pipeline at record levels. With contracts won in the first half feeding through strongly into the second half and given the group’s high level of recurring revenues (76%), the outlook remains positive for the rest of the year and we make no changes to forecasts. Eckoh has exceptional growth opportunities, particularly in the US, and we believe it can convert this to strong shareholder value.