Boku - Currency moves mask underlying growth

While currency headwinds reduced growth on a reported basis in H122, Boku expects to report constant currency growth of 14% for total payment volume (TPV) and 7% for Payment revenue. Local payment methods (LPMs) are seeing rapid adoption and are making up a growing proportion of volumes (up 11x y-o-y) and monthly active users (MAUs – up 8x y-o-y). On revised forecasts which reflect the stronger dollar, the stock trades at a large discount to peers. We expect this gap to close as LPMs start to ma

Hybridan Small Cap Feast 07/04/22

Joiners: Ajax Resources (AJAX.L) a special purpose acquisition company established to deliver shareholder value through the acquisition of businesses or production and development assets in the energy and natural resources sector, joins the Main Market. Raising gross proceeds of £1,342,000 at a price of £0.04p per IPO Share, of which the Board of Directors has invested an aggregated amount of £130k. Leavers: No leavers today. What’s cooking in the IPO kitchen? Financials Acquisition Corp, a spec

Boku - Simplifying mobile commerce

Boku’s FY21 results reflect continued strong momentum in the Payments business and improved performance in the since-sold Identity business. Local payment methods added to the Boku network over the last three years showed an accelerating contribution to monthly active user (MAU) numbers, increasing ninefold over 2021, and made up nearly 10% of new users in the year. We have revised our forecasts to remove revenue from Russian carriers and estimate an EPS CAGR of 13.7% over FY21 –24e.

Hybridan Small Cap Feast 25/03/22

Joiners: Beacon Rise Holdings (BRS.L) joins the Main Market. The Company was formed to undertake acquisitions of UK or EU businesses or assets with operations in the primary and secondary segment of the education technology sector. The Company does not have any specific acquisitions under consideration at present and does not expect to engage in substantive negotiations with any target business or asset until after Admission. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Asimilar

Hybridan Small Cap Feast 19/01/22

Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Spinnaker Acquisitions plc, intends to join the Main Market (Standard). The Company have conditionally agreed to acquire the entire issued share capital of HomeServe Labs Ltd, a wholly owned subsidiary of FTSE250 quoted public company HomeServe Plc, by way of a reverse takeover conditional, inter alia on relisting and successful completion of fundraising activities to be undertaken by way of a placing and di

Boku - Fully focused on payments

Boku expects to report FY21 results in line with our expectations despite currency headwinds, with revenue growth of 22% and EBITDA growth of 31% y-o-y. The company has also agreed to sell its loss-making Identity business for $32.3m in cash to focus on the opportunity in its Payments business. The disposal boosts Boku’s profitability, improves the visibility of the high-margin Payments business and provides cash that can be used to invest in its mobile first (M1ST) payments network.

Boku - Building on H121 strength

Boku reported H121 results in line with its recent trading update and management believes the company is on track to meet recently raised expectations for FY21. Building on the success of helping merchants gain mobile-centric customers through its direct carrier billing service, Boku has launched its Mobile First (M1ST) network to provide a single integration to multiple mobile payment methods. With mobile-based payments already outpacing traditional card-based payments in Asia, and growing fast

Boku - Upgrading estimates on strong H1 trading

The high level of demand for digital content and online transactions has continued in H121, driving organic revenue growth of 21% y-o-y. Management is confident it will beat consensus revenue and adjusted EBITDA forecasts for FY21 and we have raised our estimates accordingly. Boku plans to increase investment in its product suite and sales and marketing to take advantage of the opportunities to help its merchant base access consumers using a range of mobile-based payment methods.

Small Cap Feast: 27/05/21

Dish of the day Taylor Maritime Investments (TMIP.L) has joined the Main Market (Premium). The Company is an internally managed investment company with an Executive Team led by Edward Buttery. The Executive Team has to date worked closely together for the Commercial Manager, Taylor Maritime. Established in 2014 by Edward Buttery, Taylor Maritime is a privately owned ship-owning and management business with a seasoned team that includes the founders of dry bulk shipping company Pacific Basin Shi

Small Cap Feast

Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in spor

Boku - Evolving to address wider e-commerce market

Boku reported strong results for FY20, with adjusted revenue and EBITDA growth of 20% and 106% respectively. The Payments business benefited from increased consumer demand during the pandemic, while the Identity business had a more difficult year. Trading year to date has been strong for both businesses and management is confident of meeting expectations for FY21. We have made minor changes to our FY21/22 forecasts. The evolution of the platform to address the wider alternative payments market p

LIBERUM: Bango* - Momentum building into H2

Initiation of Coverage

Founded by proven entrepreneurs Subash Menon and Sudeesh Yezhuvath who retain a 29% stake, Pelatro is a fast-growing software company focused on customer engagement solutions that help enterprises increase revenue and reduce churn.

Hybridan Small Cap Feast 21-07-2022

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen? Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group export

SP Angel Spec Sits: H122 Results Show Growing NAV (TEK LN)

TEK reported H122 financial results with an increase in net assets to US$77m +13% sequentailly. This translates to a a value of US$0.51/shr. The changes in NAV for the period are the increase in tangible value of Lucyd plc by US$9.7m and Salarius by US$1.6m, and a decrease in Belluscura by US$3.8m since 30 Nov 2021. As at 31 May 2022, TEK had cash of US$1.15m, which included a fundraise of US$2.5m (some of which was received post 31 May 2022). Funds are being used for working capital, and to sup

Morning Note – 2 August 2022

WH Ireland: Sector News and Views – Corporate - dollar earner picks in a changing landscape

A year on from the end of lockdown on July 19 2021, celebrations at the UK's economic bounce-back in H2-21 have long lost their fizz. Two intertwined themes have remained salient / gathered pace over the past six months since our mid-year sector review: exchange rates and inflation. As we write today, press speculation is focussing on the possibility of a 0.5% rise in UK interest rates in August, billed as the biggest move in 27 years. Looking further afield, economists are looking to the F

Interim results update

National World reported interim results that were well ahead of our estimates and despite the challenging macroeconomic environment we maintain our FY22 estimates.

Zeus: Technology Quarterly review - August 2022

This quarter’s key observations • Subsector performance: Marketplaces was by far the best performing subsector from an aggregate share price perspective (up 19.9%) vs. an average –5.2% for the other five subsectors. UK Digital Media was the worst performing subsector with a -12.4% aggregate share price move. • Valuation trends: UK Managed Services saw the largest EV/ EBITDA derating (-2.1x) and is now on the lowest EV/Sales multiple (1.5x FY1) and second lowest average EV/EBITDA (11.3x FY1

Cenkos: Shearwater Group Plc -- More beats

The prescient demand for cyber security protection is shown in these results, with double-digit organic revenue and EBITDA growth. Major contracts wins are reinforcing revenue visibility and the re-platforming of the Software division bodes well for new sales once completed.

Cenkos: Journeo Plc -- No roadblocks in sight

Journeo has released a positive trading update following their half-year ending 30 June 2022. The release documents a healthy period of trading and points towards FY22E being another record year for revenue. A new follow-on contract at Heathrow Airport, worth £0.9m, has been announced. The current trading is in-line with our expectations and we leave forecasts unchanged. Journeo remains materially undervalued given its top-line revenue growth and its progress on the SaaS business model. It curre

Hybridan Small Cap Feast 29/07/22

29 July 2022 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objective

Good visibility for 2022

Q3 21/22 was strong with an acceleration in organic recurring revenue growth (+10% vs +8% in H1 21/22) thanks to demand for cloud software in small/medium-sized companies. Growth was the fastest in North America. Sage Business Cloud revenue surged by +20%. At present there is no impact from the uncertain economic environment on the activities. Sage is confident that it can achieve the high-end of the recurring revenue growth range in FY21/22 (+8-9%) and confirmed guidance of an improvement in th

A roaring H1 with strong progress on revenue and cost synergies

LSEG realised a strong quarter with continued growth in Data & Analytics (recurring revenue) while benefiting from the volatile market environment in Capital Markets and Post-Trade. Thanks to its good progress on its revenue and cost synergies targets, opex landed particularly low vs consensus, leading to a good improvement in adjusted EBITDA margin, now in line with the 2023 target. Management looks set to achieve all its long-term targets and estimates that momentum seen in H1 should continue

H1 update – in line for FY

H1 revenues increased by a strong 39% to £27.6m, within which recurring software revenues increased by over 60% as management continues to focus on higher margin activities. Whilst wage inflation held back H1 profit growth as previously discussed, price increases will support H2. Market conditions in pharma R&D are robust, with demand for Instem’s solutions remaining high. Visibility for H2 has increased, meaning trading for the full year is reported to be in line with expectations. We make no c

WH Ireland: Pennant International (PEN) - H1 update – software strength, gross margin recovery, legacy contract to complete

Today's update from PEN provides further evidence for the significant positive shifts we see in the business. Notably, we are highly encouraged by software progress: (1) software sales up 40% YoY, (2) a good spread across one-off and ongoing (long-term) revenues and (3) significant exposure to PEN's long-term US target market as well as Australasia. PEN is responsible for software / integrated product support solutions supplied to a prestigious client-base of OEM's and governments, and the gr