FRP Advisory Group, UK professional services firm specialising in restructuring advisory. Raising £80m (£20m primary). Expected market cap £190m. Compound annual growth of 16.4 per cent. in revenue and 10.9 per cent. in operating profit since the beginning of FY17.o Strong average EBITDA margins of 51 per cent. over FY17 to FY19, and consistently strong cash conversion
Companies: CGNR ANIC JNEO TPG OTMP NET BPC ATQT
Companies: FDEV ATQT TEG ZNWD FRAN IMMO AEE AMS MBH SSTY
AMRYT PHARMA PLC— a biopharmaceutical company focused on developing and delivering innovative new treatments to help improve the lives of patients with rare or orphan diseases have raised $60m before expenses and will relist on the AIM Market on the 25/09/2019. VAALCO Energy, Inc. (NYSE: EGY), an independent energy com pany focused on developm ent and production assets in West Africa, today announces its formal intention to seek a Standard Listing on the Main Market of London Stock Exchange ("LSE"), to complement its existing Listing on the New York Stock Exchange. Kaspi.kz, the largest Paym ents, Marketplace and Fintech Ecosystem in Kazakhstan w ith a leading m arket share in each of its key products and services, announces today the expected publication of a registration document that has been submitted for approval to the FCA and its potential intention, subject to market conditions, to undertake an initial public offering .
Companies: YGEN SIS KWS SSTY ATQT OSI AFHP WHR HCM HAT
Audioboom plc* (BOOM.L, 277.5p/£38.9m) Interims: H1 in line; strong performance against KPIs (18.07.19) | Mirada plc* (MIRA.L, 1.30p/£11.6m) Netflix integration (17.07.19) | Blackbird plc* (BIRD.L, 7.1p/£20.1m) TownNews extends deployment (16.07.19) | Attraqt Group plc* (ATQT.L, 35p/£63m) Meeting with management: Cross-sell opportunity (18.07.19)
Companies: BOOM BIRD ATQT MIRA
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Companies: INDJWNGTPXATQTECSCPRSMSENSRENXADGRF
Following full year results we take the opportunity to introduce FY’20 numbers into the market. We expect FY’20 revenue growth to accelerate to 11% (FY’19E: 6%), with 40% of top-line growth feeding down to EBITDA as a result of improved operational gearing. Within the revenue mix, FY’20E SaaS revenue growth accelerates to 11% (FY’19E: 7%) as the impact of customer retention projects and the new data reporting suite drive reduced attrition. We do not take into account potential partnership traction targeted by management as this is too early stage with untested distribution, although success using this model presents upside risk to our numbers. FY’20E EBITDA is expected to double y/y to £1.5m. Attraqt’s valuation at 1.8x FY’19 EV/Sales looks compelling versus peers (3.8x), with traction using connector/innovation partnerships or improvement in the retail sector backdrop presenting upside risk to forecasts.
Companies: ATTRAQT Group PLC
FY’18 results report 10% like-for-like growth in revenues and EBITDA positive in-line with management expectations. The focus for 2018 has been on stabilising exit ACV by reducing attrition in the base, which has been successfully executed despite retail sector headwinds. CEO Luke McKeever has led a transition towards a data-led, consumer-centric strategy closely aligning with customer needs. We believe the strategy is working, with net revenue retention of 96% implying resilience in the customer base. Due to retail sector headwinds persisting into H1, we tweak our FY’19 revenue forecasts down by 4%. FY’19 EBITDA forecasts reduce to £0.7m from £1.3m, but we continue to expect a maiden bottom-line profit and cash-flow breakeven. On 1.8x FY’19 sales, valuation looks undemanding versus peers with similar revenue models (3.9x), and we see room for value creation at this level.
Attraqt has released a trading update suggesting that its innovative software product continues to make headway despite challenging market conditions in the retail sector in Q4. Revenue is expected to be marginally ahead of management expectations, with EBITDA slightly better than break-even. Additionally, the company has announced the resignation of NED Ed Ewing, and confirmed full year results will be released on 14th February. The positive performance update is not completely unexpected, coming after the announcement of two large contract wins towards the end of Q3, which underpinned full year numbers and left Q4 undemanding. However, this update should be taken well by the market. An EV/Sales multiple of 2.0x, falling to 1.8x, looks undemanding and further evidence of positive management execution should prove the catalyst for multiple improvement over time.
ATTRAQT Group (ATQT LN) Multi-year contract win | Avon Rubber (AVON LN) FY18 trading update in line | First Derivatives (FDP LN) New market surveillance win highlights Kx power and traction | Photo-Me International (PHTM LN) Disposal of biotech stake increases cash by £6m
Companies: ATQT AVON FDP PHTM
ATTRAQT’s interims show solid performance in the period, in line with expectations. Group l-f-l revenue growth of 11% (adjusting for a full contribution from Fredhopper in H1’17) was achieved despite the impact of high customer attrition, a result of the previously reported issues in FY’17. The group has implemented a number of positive initiatives in the period to improve customer on-boarding and retention, and new CEO, Luke McKeever, has the experience necessary to invigorate the sales and marketing machine. With the effect of these initiatives likely to be felt in future periods, we believe the momentum in the business will begin to build from here. Continued execution will be key, but we see significant potential for value creation.
ATTRAQT Group (ATQT LN) Interims show encouraging progress | Bodycote (BOY LN) Strong H1 growth, modest upgrade to guidance | Brooks Macdonald Group (BRK LN) FuM +6.5%: Better markets in Q4, net inflows sustained at 9% annualised | Findel (FDL LN) Strong start to the year with both divisions performing | Frontier Smart Technologies Group (FST LN) Trading in line with revised expectations | Howden Joinery Group (HWDN LN) Solid H1 results given circumstances + on track to meet FY forecasts | Renishaw (RSW LN) Strong growth in FY18, confident outlook | Sigma Capital Group (SGM LN) Landmark 2000th PRS home let in Greater Manchester
Companies: ATQT BOY BRK STU FST HWDN RSW SGM
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Sumo is trading strongly, with several drivers that could lead the company to outperform 2021 earnings expectations, in our view. Even based on conservative earnings expectations, we believe shares offer attractive value to growth.
Companies: Sumo Group Plc
IQE has announced it expects FY20 revenues to be c £178m. This is ahead of our estimates, which we revised upwards in November, reflecting outperformance in both the wireless and photonics segments. We have updated our FY20 forecasts. Given IQE’s leveraged business model, this results in a 64% uplift in EPS. Noting the uncertainty about the effect of a pandemic-related recession on the rate of smartphone sales growth, we leave our FY21 estimates unchanged for the time being.
Companies: IQE plc
ZOO’s trading update in advance of its March year-end suggests that visibility continues to improve, and major new client projects have continued to deliver. A combination of a material back-catalogue focus across the industry, a growing acceptance of cloud-based dubbing, and a very modest return to new content production have combined to produce a robust outcome for FY21E, and we upgrade estimates. Just as importantly, the outlook for FY22 and beyond continues to improve, giving management confidence to invest in expanding ZOO’s dubbing service into new markets.
Companies: ZOO Digital Group plc
Synairgen (SNG.L): Completion of recruitment for at home trial | Sensyne Health (SENS.L): Research agreement with The Royal Wolverhampton NHS Trust
Companies: Synairgen plc (SNG:LON)Sensyne Health Plc (SENS:LON)
As a nation, we love knocking ourselves. However in truth, we’re actually a pretty pioneering bunch. For instance, the experts at Oxford University & AstraZeneca have developed one of the world’s 3 most important vaccines in double quick time. Plus, many other British firms are creating similar breakthrough Covid inventions, such as Kromek.
Companies: Kromek Group Plc
Sopheon’s trading update for the end of 2020 shows that the historical weighting to Q4 for revenues again produced a strong end to the year, ahead of Q4 2019. Revenue is expected to total around $30.0m with Adjusted EBITDA of c. $5.6m. We reintroduce estimates for FY 2020E which reflect those numbers. The proportion of recurring revenue increased again during FY 2020E. That mix shift within strong sales bookings growth of 23% during the year means that much of the associated revenue will be recognised future years. With ongoing sales traction, we continue to see Sopheon as well-positioned with highly appropriate solutions which meet the needs of businesses to innovate and digitalise at a faster pace. Sopheon is proving itself highly capable of selling despite the Covid-19 challenges, and we believe the group’s products will become more relevant and more in demand precisely because of the race to digitalisation that Covid has so clearly accelerated.
Companies: Sopheon plc
MySale has delivered a striking turnaround in profitability with H1 FY21 EBITDA of A$2.5m up an impressive A$6.1m YOY. We believe this marked turnaround validates its AZN First strategy and signals the Group now has a robust and cash generative operating platform on which it can scale.
Companies: MySale Group plc
Interims to October are in line with the comfortable interim trading update and unchanged forecasts. Post period end, the group continued to benefit from evident momentum through the oversubscribed £49m placing, followed by the acquisition of Huddle. ARR increased 13% to £54.8m, including 7% organic growth; 60% of all new logo wins derived from outside the UK; and each territory and each segment (Assurance, Compliance, Collaboration) delivered growth. A £50m debt facility continues to fuel the M&A machine, and adds to the organic opportunities from the TAM of $3bn in Integrated Risk Management, where Ideagen has remained in Gartner’s Magic Quadrant since 2016. Despite 1H21 (1 May to 31 October) still suffering COVID influences (client decision-making and sales cycles), with temporary effects on organic growth, Ideagen powers on. As the driving force in establishment of the group, David Hornsby’s retirement represents the end of a chapter – but no change in executive capabilities and the strategic rationale for growth that Ideagen does so well. Target price 347p (280p).
Companies: Ideagen PLC
The Panoply has reported a very positive trading update for the Q3 to December and indicates that full year results for the year to March will be significantly ahead of expectations. The group won £15m of new contracts in Q3, including the significant assignment from the Planning Inspectorate announced at the November interims. This further demonstrates the successful development of the group, notably its expansion into healthcare and establishment of FutureGov and Foundry4 as full-service brands. In November we raised our FY21 Revenue and PBT forecasts by +5%/+10% to £44.5m/£4.9m and we further raise by +8% to £48.0m/£5.3m this morning. We choose to leave our FY22 estimates unchanged at this stage, but clearly the group has very strong momentum and we see clear scope to raise our forecasts as we progress through the year. We continue to view The Panoply as ideally placed to benefit from the structural tailwinds in digital transformation and, underpinned by our increased forecasts, raise our target price to 235p (was 220p).
Companies: Panoply Holdings Plc
GB Group (GBG) has sold its marketing services business to HH Global Group for an undisclosed amount. This was not an area of focus for GBG and has been in managed decline for several years. Just before Christmas, GBG boosted its Fraud business with the acquisition of fraud investigation automation software from HooYu for £4m in equity. We have revised our forecasts to reflect the disposal and acquisition, leading to small upgrades to our EPS forecasts. Both deals emphasise the company’s strategy to focus on Identity, Location and Fraud.
Companies: GB Group PLC
FY20E order intake growth of 61% means Corero's revenue for last year of $16.8m will exceed our prior forecast. The trading update confirms c73% annual growth in revenues and further expansion of the annualised recurring revenue base. This performance highlights the increasing prioritisation of protecting networks against cyber and DDoS attacks. Buy.
Companies: Corero Network Security plc
EMIS saw trading gradually improve through H220 to finish the year slightly ahead of expectations. The company continued to support customers in dealing with the pandemic, with the recently acquired Pinnacle Systems’ software now being used in the nationwide vaccination programme. Progress was also made in product development with the launch of the first EMIS-X analytics product. We maintain our forecasts.
Companies: EMIS Group plc
Strong Q4 performance from Audioboom plc, the leading global podcast company, as it continues to outpace the global podcasting market. Audioboom bounced back from the Q2 CV-19 lull in Q3 and growth accelerated in the final quarter. Q4 revenue of c. $8.5m was a record, up 25% on the same period last year and the previous record, and FY20 revenue of c. $26.8m (+20%) was comfortably ahead of forecast (ACLe: $25.5m). There were also record KPI performances (brand count, eCPM and available ad inventory). Coupled with continued cost control, adj. EBITDA loss fell to c. $0.2m in Q4 and c. $1.8m for FY20 (FY19: $2.9m, ACLe: $1.9m). The company has good access to capital ($6.6m at year end) and management expects to achieve a maiden positive adj. EBITDA for FY21. We introduce FY21 forecasts and set a fair value of 420p/share, equivalent to an FY20 EV/Revenue of 3.3x and 2.5x FY21. Although a premium to the current price, this still represents a significant discount to recent industry transaction multiples.
Companies: Audioboom Group PLC
Sage Group released a good set of Q1 20/21 figures with organic recurring revenue growth of 4.7% in line with the full-year guidance (+3-5%). This performance was spread out across various cloud native software and essentially driven by the gain of new customers. Lastly, no deterioration in the churn rate is reassuring considering the continuing tough market conditions. All in all, Sage Group confirmed FY2020/21 guidance.
Companies: Sage Group plc
ZOO’s H1 FY21 included a tumultuous few months as COVID-19 effectively shut off work on new media content production which impacted subtitling projects, but studios rapidly adopted Cloud-based dubbing and the group’s digital packaging business enjoyed a dramatic rebound in fortunes. We note the positive commentary in today’s RNS and upgrade our FY21E and FY22E estimates to reflect the recent performance and, in particular, the exceptionally strong H2 trading that the group is enjoying.
