The highlight of FY21 was continued strong growth in US Secpay, with revenues up 57% yoy to $12.8m and now representing >32% of group sales. As such Eckoh contains one of the fastest growing technology businesses in the UK, with the size of this business now very much moving the needle. Eckoh’s Cloud offering (>50% of new contracts by value) and remote SecPay offerings found particular favour in the period, with on premise business having been hindered by lockdowns. We continue to feel that Ecko
Companies: Eckoh plc
At the height of the pandemic we pointed to the resilience of Eckoh’s business model. This is fully demonstrated today with FYMar21 AOP expected just above last year’s £4.7m (in line with guidance/forecasts). Pandemic aside (if it’s possible to say that), the performance is all the more remarkable given the exceptional $4m Coral licence in the base, the wind-down of US Support and dollar headwinds. Star of the show was US SecPay, where we believe revenues grew 60% yoy to c.$13m (33%/sales). We n
MAST Energy Developments (MED) is to IPO on the Standard List on 14th April 2021 under the ticker MAST. The company has raised £5m giving a market capitalisation on listing of c. £23m. MED is currently a 100% subsidiary company of AIM quoted, Kibo Energy*. MED was established to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market. PensionBee has confirmed its intention to float on the High Growth Se
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US SecPay momentum returns decisively. After just $2.3m of new US Secure Payments contracts signed in the difficult 5 months to end Aug, ECK has since signed a further $9.3m, bringing the year’s total to $11.6m (PY $10.7m), comprised of a record number of individual contracts. In tune with the new world, cloud has been a key feature of the wins, accounting for over half of the value won and over 80% of the contracts by number. ECK highlights a $1.35m minimum contract won in March with one of the
NQ Minerals, the base and precious metals producer from its 100% owned flagship Hellyer Mine and the 100% owner of the Beaconsfield Gold Mine, both in northern Tasmania, Australia, has submitted a draft prospectus to the UK Financial Conduct Authority for approval. The Company is considering applying for admission of its ordinary shares to the Official List of the FCA by way of a Standard Listing and to trading on the Main Market of the London Stock Exchange . Details TBA
Foresight Group ,
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Eckoh’s fast growing US SecPay business and robust UK business model have minimised the impact of lockdowns with u/l H1 revs down just 3% yoy and profits flat. ECK reintroduces FY21 guidance, expecting H2 revenues comparable to H1 and FY21 AOP comparable to FY20. US SecPay is now a meaningful >30% group revs, growing 80% in H1 and with larger customers now re-engaging. We expect growth to continue in FY21 and beyond; the opportunity is multiples of current sales (FY21E $13m- +60% yoy). We simila
An H1 update to September reveals a robust performance notwithstanding a challenging macro backdrop - sales (ex. Coral) are just “slightly lower” y/y, indeed if also excluding an intentional move away from hardware-based Support, we estimate core revenue grew c.+7%. This was underpinned by continued strong growth in US SecPay: +80% y/y, now ~32%/group sales, while in the UK, we estimate sales fell by c.-11%. Here, Covid impacted transactional sales (rather than any permanent loss of business) su
Following on from Capita’s announcement earlier this week, Eckoh announces it has secured a 6-year £4m contract renewal with Capita for the provision of Congestion Charge Services to TfL. Such contracts typically consist of minimum guarantees and volume related elements. Given the far greater reach of the LEZ and ULEZ and their 24/7 operating times, we imagine volume related elements could mean the contract ends up significantly in excess of the £4m mooted today over time. The high repeat revenu
Blackbird plc* (BIRD.L, 15.0p/£50.4m) | Brave Bison Group plc* (BBSN.L, 1.375p/£8.4m) | CML Microsystems plc (CML.L, 258p/£44.2m) | Eckoh plc (ECK.L, 61.5p/£156.2m)
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We are impressed that trading in the tough April/May period has been on a par with last year. Some delayed US SecPay deals have gone live and others are still in the pipeline, temporarily on hold. Volumes in UK consumer-facing businesses are picking up. FY20 results show a business firing on all cylinders and after the initial CV19 shock, we see numerous opportunities for growth, notably in the US, but also in the UK.
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The full year results are marginally ahead of our revised upwards forecasts. There is solid momentum across the Group and we see double-digit revenue growth and expanding margins ahead. This double-digit forecast growth rate is driving the rating of the stock down to a single digit EV/EBITDA rating. Buy.
Companies: Shearwater Group plc
What’s new: AGM update reminds shareholders OTM is focused on building a “differentiated, technology-enabled property business providing services to agents, housebuilders, advertisers and consumers that offers best in class products and platforms across the broader property marketplace.”
Early indications of success include:
5 month growth in advertisers of 4.5% driven by 4.9% rise in agency branches
137 leads per advertiser in June 2021, which is 5.4% above average per month for the si
Companies: OnTheMarket Plc
More new contracts announced
Companies: 7Digital Group PLC
Today’s AGM statement indicates strong progress on agreements with distributors, mining the back catalogue, developing interest in planned releases and attracting talent. The update increases our confidence in tinyBuild’s ability to at least meet expectations.
Companies: tinyBuild Inc.
Companies: GetBusy Plc
FDM has delivered a strong H1, with revenues modestly below last year (which included a full quarter pre-COVID) and profitability buoyed by careful cost control and a recovering demand profile across most geographies. The group continues to invest for long-term growth in a number of areas, but despite this, and even with ongoing COVID uncertainty in multiple locations, the tone is confident, and management appear comfortable with delivering at least our (and consensus) estimates for the year. H
Companies: FDM Group (Holdings) plc
Q3 21 was a satisfactory quarter with organic recurring revenue up 6.1%. Cloud native revenue grew significantly (+37% vs +30% in H1 21) thanks to Sage Intacct, Sage Accounting in the UK, Sage People, AutoEntry and the migration from cloud connected software to cloud native solutions. Consequently, organic recurring revenue growth accelerated in 9m21 (+5%) vs H1 21 (+4.4%). By geography, North America was the best performer. 2021 guidance was revised upwards at the top line.
Companies: Sage Group plc
Earnings in FY21E are expected to be more than 6% ahead of the forecasts we set last summer. For any company trading through a pandemic year, this is a decent beat in our opinion. With the stock trading at the bottom of its two-year trading range, we can say with some surety that an earnings surprise was definitely not in the price. Buy.
Netflix reported a mixed result as it managed to surpass its rather modest guidance of 1 million net subscriber additions by adding 1.54 million subscribers. The company’s revenues surpassed Wall Street expectations but there were concerns associated with the company losing nearly 430,0000 subscribers in its core North American market. Competitive pressures and the limited Originals content being rolled out in the first half of the year was responsible for this loss of subscribers. However, the
Companies: NETFLIX (NFLX:NYSE)Netflix, Inc. (NFLX:NAS)
In today’s AGM trading update, management confirmed that it had seen a good start to FY22. All divisions are benefiting from the consumer shift to transacting online. Cryptocurrency trading has boosted Identity volumes in the quarter, while Location continues to see good demand and recent licence extensions point to a recovery in the Fraud business. The strong trading in Q122 provides management with confidence for the year ahead; we maintain our forecasts.
Companies: GB Group PLC
PayPal had a mixed quarter and reported a 19% top-line growth which was below expectations but managed to deliver an earnings beat. The company saw 4.7 billion transactions during the quarter, up 27% as compared to the previous year and its payment transactions per active account were 43.5 million, an improvement of 11% versus the prior year quarter. The company’s total payment volume (TPV) rose by a staggering 40% to $310.99 billion with Venmo alone accounting for $58 billion, a 58% jump as com
Companies: PAYPAL HOLDINGS (PYPL:NYSE)PayPal Holdings Inc (PYPL:NAS)
Hays plc (HAS.L, 159p/£2,320m) Q3 trading update to 31/03/19 (16.04.19) | Parity Group plc (PTY.L, 7.4p/£7.6m) Full year results to 31/12/18 (16.04.19) | Robert Walters plc (RWA.L, 580p/£440m) Q1 trading update to 31/03/19 (15.04.19)
Companies: HAS PTY RWA
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
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What a difference a year makes - 12 months ago, the focus, quite understandably, was on the course of the pandemic and the lifting of the Lockdown (1) measures. For investors, it was the sustainability of the rally in markets seen since March 2020. Today, while we are still thinking about the lifting of lockdown measures, we are also concerned about two “old favourites” from previous decades. Inflation and the parlous state of public finances. The BoE has said that although CPI inflation rose to
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Companies: Bango plc