Auto Trader Group (AUTO LN) - Products and pricing drive profits

Auto Trader’s interim results showed strong growth in revenue (+12%) and operating profit (+10%) as the Group leveraged its pricing power with retailers and had good uptake of higher-value products. This performance supports the investment case themes of our October 2022 initiation. Auto Trader is the dominant UK car marketplace with robust revenue growth at high margins and, in our view, significant opportunities to grow further. Today we increase revenue and EBIT estimates by 1-3% across FY24-

Auto Trader (AUTO LN) - Strong growth from core business

Auto Trader’s FY23 results last week showed continued strong performance from its core marketplace business despite constrained supply in new and used vehicles.

Initial Equity Trading Comments - 12 May 2023

Zeus: Automotive Retail sector analysis - April 2023

This report provides an updated view on the key themes facing the motor retail sector in 2023. On page 4 we discuss the conclusions of our July 2022 research and compare them to what happened in H2 2022. It is clear that many of the same themes (supply shortages, high inflation, sector consolidation, etc.) still apply – here we discuss how these themes have evolved.

Auto Trader Group (AUTO LN) - Reaffirming FY23 forecasts and investment case

Auto Trader’s FY23 period comes to a close today and we have taken the opportunity to review our forecast assumptions. We are happy with estimates for revenue drivers, the contribution from Autorama, and core Group operating margin, which we believe aligns with the guidance set out in the interim results on 10 November. As such, Zeus forecasts for FY23-FY25 are unchanged at the PBT level, but we reflect higher corporation tax from 1 April 2023, reducing FY24 and FY25 EPS by c. 8%. We continue t

Auto Trader Group (AUTO LN) - Core business performing well, Autorama expectations cut

Auto Trader’s interim results on 10 November showed a strong performance for the core platform, with revenue and operating profit both up 11% vs. H1 2022. However, losses from newly acquired Autorama and acquisition-related Group central costs drove a 1.7% decline in Group EBIT to £149.1m. Higher expected FY23 Autorama losses (c. £11m, from £5-7m) and non-cash P&L charges mean we reduce FY23 EBIT forecasts by 15% to £272m, but maintain core Autotrader EBIT margins at 70%. We continue to believe

Auto Trader Group (AUTO LN) - Leading marketplace, platform and retail ecosystem

Auto Trader is by far the UK and Ireland’s leading automotive marketplace. The Group continues to deepen ties with motor retailers, providing valuable services, data and analytics to help sell more vehicles. Having recovered margins from Covid-19 and with a well-considered strategy set out, we think today is a good entry point to acquire a quality asset. The average of our valuation estimates is 632p, 18% upside to today’s price.

Audioboom Group - Q1 24 revenue growth of +11%, FY24E forecasts reiterated

Audioboom’s FY23 results and Q1 trading update show Q1 24 revenue growth of +11% yoy, $6.7m of March 2024 revenue marking the platform’s highest revenue month since May 2022, and a confident outlook that leads us to reiterate our FY24E forecasts. Following the focus on new initiatives through FY23, the platform is now in its strongest ever operational position, with a record 1.1bn monthly ad impressions created in March 2024, record global audience reach of 38.6m unique global listeners in Janua

Morning Note – 16 April 2024

Alphawave Semi: FY23 trading update, amended forward guidance

Alphawave Semi has reduced guidance for FY23 and prospectively citing lower revenues from China, changes in expected revenue recognition from long-term contracts, and continuing investment in R&D. The share price has reacted negatively, giving up most of the gains since the trading statement at the end of January. Current consensus, which is a good match for pre-existing guidance, should be reduced, most likely following release of the FY23 results and full 1Q24 trading update due on 23 April. H

Soft growth patch

Morning Note – 15 April 2024

Checkit - New product launch and contract wins

Checkit has won contracts with two customers worth at least £417k over the three-year lives of the contracts, confirming its ability to upsell to its existing customer base and supporting our forecasts. Having trialled the new technology with multiple customers, Checkit has launched its Asset Intelligence module, which uses advanced analytics and machine learning to enhance customer sustainability, reduce costs and increase revenue.

Auction Technology Group - H1/24 Trading update

ATG’s H1/24 trading statement indicates revenue for the six-month period to 31 March 2024 was $86m, a 6% increase on H1/23 (1% organic growth), helped by the addition of the EstateSales.Net (ESN) marketplace last year, which performed well in the period. Total marketplace revenue increased 2% (organic), driven by growth in value-added services (VAS) and event fees, offsetting a decline in commission revenue (mainly through lower asset prices).

Engage XR Holdings - Expanding from FY23, FY24E forecasts reiterated

ENGAGE XR’s FY23 results show revenue and net cash in line with the February trading update, EBITDA ahead at -€4.0m vs -€4.5m due to the split of cash outflow between opex and working capital, and a confident outlook that leads us to reiterate our FY24E forecasts. FY23 revenue for the core ENGAGE platform was unchanged vs FY22 at €3.3m, as H2 23 revenue was impacted by the record seven-figure contract announced in February shifting to 2024, and several enterprise customers scaling back renewals

FY23 results in line – and a flying start to FY24

ENGAGE XR has published its FY23 full year results, the headlines of which reflect the details provided in February’s post close trading update in terms of revenue, EBITDA loss and net cash. ENGAGE XR has signed a rapidly growing number of strategic and commercial partnership agreements with companies invested in promoting the VR medium and the development of corporate metaverses.

It’s not what you sell, it’s the way that you sell it

This report is intended to help UK small- and mid-cap investors gain a better understanding of software companies’ routes to market, and to highlight how one of the most important facets of the way in which they grow and deliver value is routinely ignored.  We examine sales processes for six UK-listed companies and one that has recently been taken over, and consider why they have followed their respective paths.

Hybridan Small Cap Feast - 15 April 24

15th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: Change of Market: TheWorks (WRKS.L) a multi-channel value retailers of books, arts and crafts, stationery, toys and games, offering customers a differentiated propositio

CML Microsystems+ (CML, House Stock at 395p) - Board & Senior Management Appointments

Alphawave Semi: 4Q23 trading update – FY23 guidance reiterated

Alphawave Semi has published its 4Q23 trading and business update, reiterating its guidance for FY23 with multiple new wins, a strong pipeline and good progress toward generating revenue from its Connectivity Products Group in 2024. Total new bookings of US$128.7m in 4Q23 were a record and increased by 36% YoY. Alphawave Semi continues to transition the company following the acquisitions in 2022, re-focusing the OpenFive business on leading edge technology. The transitioning process weighed on t

PROGRESSIVE: CML Microsystems: Ripples not waves – still on growth course

The trading update confirms revenues in line with our expectations. Excess inventory flow through and market softness in China have impacted CML’s core business, but Microwave Technologies Inc (MwT) is performing ahead of expectations. The net effect, along with MwT acquisition related costs, is that Reported PBT and EBITDA are to be lower than expectations, but not substantially so. The long-term investment case is founded upon the opportunity in next-generation wireless and, with £18m cash and

Morning Note – 8 April 2024