Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Sopheon. We currently have 75 research reports from 3 professional analysts.
Sopheon has announced results for calendar 2019 in line with January’s trading update on revenue and ahead of our expectations at the Adjusted EBITDA level, demonstrating the strong finish to the year and continuing delivery on the group’s growing market opportunity. Clearly the outlook for 2020 is entirely shrouded in short-term uncertainty. Consequently, we choose to leave revenue and profit estimates unchanged for now, but will look to revisit them in due course. For the same reasons, we are not introducing 2021 estimates at this point. The group remains very well positioned in our opinion, with strong products and a robust cash balance.
discoverIE (DSCV): Corp | Quartix (QTX): Corp | Sopheon (SPE): Corp | Xeros (XSG): Corp
Companies: DSCV QTX SPE XSG
Prelims are in line with the December trading update and unchanged forecasts for FY20. The transition towards SaaS, in-line with client requirements, has accompanied a move to focus on ARR ($15.9m at year end), supporting overall visibility ($21.2m currently) of 59%. With a qualified pipeline >50% higher than at FY18 (55/45 perpetual licences/SaaS), and a fourth quarter that delivered 49% of the year’s deals, momentum at end FY19 was very encouraging. Cash of $19.4m provides a robust balance sheet to weather the global storm, with confidence expressed in the dividend payment. We can’t ignore the opportunity Sopheon’s Accolade has in providing structure to transformation and response to disruption, including timely expertise in co-ordinating change management. We prudently forego offering FY21 forecasts until August interims, but emphasise the opportunity the group has in both normal and abnormal circumstances.
Avacta (AVCT): Corp TMAC – proof of concept for novel Affimer conjugate | LPA Group (LPA): Corp Full-year results: a year of recovery ahead | Sopheon (SPE): Corp Positive trading update
Companies: AVCT SPE LPA
Sopheon has delivered a trading update for 2019, highlighting revenues and cash both slightly ahead of our expectations, and with EBITDA “in line with market expectations”. We take a good degree of reassurance from this performance, which includes a strong uptake of the SaaS offering. We make no changes to 2020 estimates, but clearly today’s update is a positive both for sentiment and near-term business momentum.
Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m. The Group's key producing assets, the Kagem emerald mine in Zambia (believed to be the world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the Faberge brand. Due Valentines Day 2020.
Companies: ITX SPE EYE CNC ANX ONC NFC BOD FEN ECSC
Amino Technologies (AMO): Corp | Pelatro (PTRO): Corp | Sopheon (SPE): Corp
Companies: AMO SPE PTRO
Sopheon’s trading update confirms that some of its customers are delaying decisions on contracts because of uncertainty prevailing in their own markets and businesses. At the time of the interim results, Sopheon’s management expected a return to a stronger second half weighting for the full year numbers. That is still the case and the Group continues to highlight the strength of the new business pipeline and a higher proportion of SaaS (Software as a Service) opportunities. Nevertheless, the anticipated signings of a number of opportunities have now slipped into 2020. With revenue visibility currently at $28 million, we conservatively move our current year revenue estimate down 13% to $29 million with a knock-on effect on EBITDA (down 29%). We also assume that buying cycles remain extended during FY 2020E and therefore take a prudent view on our numbers for that year as well with revenue and Adj. EBITDA estimates reducing by 10% and 40% respectively.
MJ Hudson Group PLC, the financial services support provider to Alternatives fund managers and asset owners, is planning an AIM IPO. Deal details TBC.
Companies: TM17 AMO SPE EOG LWRF FARN MIN PTRO KDR PXS
Sopheon’s interim results reflect a return to a stronger second half weighting, as flagged in July’s trading update – although EBITDA is $0.5m ahead of the number in that announcement. Alongside the delays in closing some license contracts in the first half, management reiterates the strength of the new business pipeline and the supportive underlying market conditions, and notes customers apparently reverting to a year-end buying pattern. With a sharp increase in the proportion of SaaS business in the pipeline – reflective of industry procurement trends - we expect to see higher recurring revenues over time (bringing greater visibility) and enhanced lifetime customer revenue. Chairman Barry Mence comments that the future prospects for Sopheon ‘have never been brighter’ when highlighting the positive trends for the Group in the outlook statement – and we note the pipeline and the long-term value being built within the growing SaaS business.
Interims to June report performance in line with unchanged expectations. Our previous note title, “sunshine and Cloud”, remains appropriate: with targeted expansion in sales resources, the group has experienced 48% growth in the total value of pipeline deals since January, with all-time highs in volume of larger opportunities, within which SaaS business has expanded sharply. Against an unusually strong 1H comparative, we are confident of FY forecasts, tailored for 2H strength as well as increasing proportion of SaaS deals, which will also enhance multi-year visibility. Underlying commercial momentum is increasing in tandem with Sopheon’s earnings quality from growing recurring revenue (currently $15.3m ARR), as the use cases of the Accolade software product broadens and with it the sales funnel. Target 1,425p reiterated.
Arcontech (ARC): Corp Strong FY19 results, strong structural position | D4T4 Solutions (D4T4): Corp AGM update | Sopheon (SPE): Corp Strongest ever pipeline accompanies SaaS transition
Companies: D4T4 SPE ARC
Sopheon’s H1 2019E update states that revenues and EBITDA will be lower than H1 2018, at around $13.7m and $2.0m respectively. This is as a result of a delay in closing some licence contracts (and H1 2018 was a tough comparator). Further, although the group is enjoying a very strong pipeline (up 48% in value since January), “an increasing proportion” of this pipeline is likely to be SaaS, so H2 revenue is unlikely to be sufficient to reach consensus full year estimates. The result of a greater number of SaaS licenses should be an increase in revenue visibility over the longer term and a fillip to recurring revenue in FY 2020 and beyond; however, it impacts revenue recognition in the near term. Full year revenue is now expected to be similar to FY 2018, and we are reducing our estimate for FY 2019E by 8% with EBITDA decreasing by 22% to the figures below. We also reduce our estimates for FY 2020E by 5% and 14% respectively – hopefully this will prove conservative. We hope to see a good increase in annualised recurring revenue during H2, which will underpin estimates for 2020 and beyond.
Independent Oil & Gas (IOG): Corp Gas reception facilities acquisition and Harvey update | Netcall (NET): Corp Trading update – building cloud revenue | Quartix (QTX): Corp Fleet performance underpins H1 | Sopheon (SPE): Corp Trading update: sunshine and Cloud | Synairgen (SNG): Corp COPD Phase II clinical trial update
Companies: IOG NET QTX SPE SNG
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
Research Tree provides access to ongoing research coverage, media content and regulatory news on Sopheon. We currently have 75 research reports from 3 professional analysts.
|25Mar20 13:38||RNS||Issue of Equity|
|19Mar20 16:46||RNS||Issue of Equity|
|19Mar20 07:00||RNS||Final Results|
|28Jan20 09:05||RNS||Second Price Monitoring Extn|
|28Jan20 09:00||RNS||Price Monitoring Extension|
|28Jan20 07:00||RNS||Trading Update|
|10Jan20 13:00||RNS||Issue of Equity|
Seeing Machines Limited has announced that it has won a pre-production license deal with a major Automotive Tier 1 partner. This has been entered into under the terms of a pre-existing non-exclusive Collaboration Agreement to provide Seeing Machine's Driver Monitoring System (DMS) technology for an ongoing Automotive programme. For this Seeing Machines will receive a non-refundable pre-production license fee of US$5m before 30 June 2020, in addition to future volume based royalty payments for the above mentioned Automotive programme. Seeing Machines will retain all intellectual property rights associated with its DMS technology licensed to the counterparty under the Agreement.
Companies: Seeing Machines
The Coronavirus pandemic is a human tragedy of vast proportions – as well as the terrible human toll, COVID-19 has led to economies across the globe going into physical lockdown and financial freefall. Entire populations are adapting to the “stay at home” edict, to safeguard the vulnerable – and some of these changes will lead to long-lasting or perhaps permanent changes in the way we live or work. This note describes some of our client companies whose business models are well adapted to these changes, or who might see a change in long-term structural demand.
Companies: AMO BGO FDM GAMA KAPE LOOP TERN ZOO
The company announced several appointments that have strengthened the management team after seven acquisitions over the past two calendar years. We believe this investment in management should form a strong foundation for the company’s next phase of growth. Alex Siffrin, the company’s largest shareholder, has stepped down from the board to focus on personal priorities
Companies: Centralnic Group
In a remarkable coup for Bango, Korean technology leader NHN Corp is taking control of the Audiens Customer Data Platform (CDP) business by investing £6.5m for a 60% stake in the holding company, Bango Deep Ltd, with a view to scaling up Audiens through support and technology into a truly world-class CDP provider. NHN is further securing and deepening its relationship with Bango itself by taking 3.5m Bango ordinary shares (4.7% of the expanded Bango) for £3.2m. This is an excellent deal for Bango, sealed at a time of restricted travel and tightened commercial prospects and possible only because Bango is already partnered, and trusted by the Korean technology giant. The deal takes a non-core, near-breakeven business off the Bango P&L and sharpens management focus, while maintaining a substantive interest in what – now backed by NHN’s cash, expertise and data technology – should become a major global player in the lucrative, high-growth CDP market. On top of this, Bango strengthens its balance sheet with a cash injection and the strategic partnership between NHN and Bango itself is substantively deepened. We adjust our FY 2020 forecast for the change in Audiens accounting status and the cash injection, and highlight the value.
A strong interim period to January 2020 delivered the expected £26m revenue as reported in the February trading update, with a 31 January net cash balance also of £26m – EBITDA of £5.6m (post IFRS16), and adjusted PBT of £4.6m highlighting a strong performance. The Group has unchanged strategic ambitions – organic growth and M&A, both in evidence in Rail Technology & Services (RT&S) with 13% organic growth and the post period end acquisition of iBlocks. We withdrew forecasts last week due to the impact of COVID-19 on the 2H-weighted Traffic & Data Services business, given the exposure to cancelled large scale summer events, and uncertainty over traffic surveys; however, the potential for the Group is unchallenged when the world normalises. New contract wins, new product launches, new acquisitions and a hearty balance sheet continued to offer significant upside in 1H and post period end. Target price 900p remains based on our FY21 forecasts, which in theory should be consistent with previous forecasts and we look forward to reinstating numbers when the virus dust settles.
Yesterday’s trading update confirms that IQE’s FY19 results will be in line with the revised guidance it provided in November when the full extent of the impact of the US-China trade war became visible. We have cut our FY20 revenue estimate by 6%. In IQE’s case the impact of COVID-19 on global handset demand is likely to be softened by gaining share in both the wireless and photonics markets. However, the full effect of the pandemic on the global economy and IQE’s business remains to be seen.
Caledonia today announces that it has taken the prudent decision to defer its approval for the payment of the second quarterly dividend (7.5c/sh - $0.9m - 7% of declared Caledonia cash). The Blanket mine in Zimbabwe remains in operation (at a slightly reduced capacity to secure Covid-19 social distancing) and the mine site remains well-stocked with supplies, so despite the current difficulties getting supplies from South Africa production at the mine can continue for some time to come; 2-3 months in our opinion, if the supply chain from South Africa ceased altogether. Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning, the group has released an update in light of COVID-19. The Board reports that it has taken swift action to re-engineer processes to adhere to government guidelines, whilst maintaining client service levels. Q1 2020 trading is reported to have been ‘broadly' in line, with revenue growth of 40% from continuing operations and outstanding orders to ship to customers in the coming months. Q1 was cash neutral, which follows on from the RNS on 5 February, of a net cash position of £849k as at 31 December 2019.
Companies: Caledonia Mining Corporation Plc Com Shs Npv Touchstar
Bango has announced FY 19 results in-line with the December-19 trading statement and our forecasts. The business has grown strongly throughout the Brexit hiatus, notably FY 19 saw the key End User Spend (“EUS”) metric double once again to £1.1bn. With the global macro-economic situation continuing to be impacted by the Coronavirus, we believe market attention will focus on the outlook. The release confirms that Bango has no supply chain dependencies, its products are available without interruption. Furthermore, management has re-iterated its expectation for continuing exponential growth in EUS. We maintain FY 20E estimates following the release and will revisit as visibility on “stay at home” behaviour improves.
FIH's year end update this morning reveals an inline performance in the year to March 31st 2020, notwithstanding disruption over the past six weeks, and also updates on the respective likely effects of Covid-19 on its three business streams, with greater relative resilience seen in the Falklands business and bigger impacts already apparent on the two UK-based businesses, not surprisingly. We note that PTY, in line with requests to companies from the FCA and FRC, is formally delaying its results announcement for FY2019A (year to December), which would in the normal course of events have been published today. A new release date will be issued in due course. Re 2019, the company highlights its update from January indicating inline P&L performance in FY19A combined with good progress on cash resulting in an anticipated net positive cash situation at the year end.
Companies: FIH Group Parity Group
WANdisco recently confirmed that its Fusion product is on track for full availability with Microsoft ‘in the next few weeks’. In this audio clip CEO David Richards describes the commercial implications of this and how the business is navigating the challenges of COVID-19. WANdisco’s proprietary replication technology enables its customers to solve critical data management challenges created by the shift to cloud computing. It has established partner relationships with leading players in the cloud ecosystem including Amazon and Microsoft.
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 APP SRE 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
Software stocks that enable corporates to sell more, improve quality, cut costs, save employees time and/or reduce their ‘carbon footprints’ are ideally placed in today’s tech/ESG world. Cue Elecosoft, who said this morning that 2019 PBT would be “ahead of LY” (£3.67m) and “in line with expectations” (consensus £4.1m) - despite being impacted by forex (ED est -2%, weaker SEK vs £) and macro uncertainties (eg Brexit, General Election and subdued Eurozone). We think this is a creditable outcome. Not least because it underlines the resilience of the business - while the results are actually a touch better than our previous (bottom of the range) profit & cashflow estimates, albeit with revenues a smidgeon shy.
H120 numbers show continued 15% organic revenue growth with a slight shift in the mix to direct sales from connectors and the continued themes of strong (33%) International growth, strong growth in new Functionality and rising (+14%) ARPU. At present just about 20% of group sales come from clients using more than one communications channel, giving dotDigital a considerable omni-channel cross-sell opportunity.
Companies: Dotdigital Group