Small Cap Brunch

Xpediator Plc—Sch 1 from the holding Company for an integrated freight management business operating in the supply chain logistics and fulfilment sector across the UK and Europe with a strong presence in Central and Eastern Europe. Offer details TBC, expected Admission early August 2017. | GetBusy PLC—Sch1 from the holding Company of its subsidiary undertakings, which operates as a document management software business with over 110 full time employees, headquartered in Cambridge, UK and operati

Small Cap Breakfast

ALPHA REAL TRUST LTD | COINSILIUM GROUP LTD | EG SOLUTIONS PLC | EVGEN PHARMA PLC | FIRESTONE DIAMONDS | GEORGIAN MINING CORP | LGO ENERGY PLC | LOK'N STORE GROUP | SULA IRON & GOLD PLC | SURFACE TRANGSFORMS

AIM Breakfast

Venn Life Sciences* (VENN.L) | One View Group (ONEV.L) | Futura Medica (FUM.L) | Symphony Environmental Technologies (SYM.L) | Ten Alps (TAL.L) | CareTech Holdings (CTH.L) | Magnolia Petrolium (MAGP.L) | Versarien (VRS.L) | Stobart Group (STOB.L) | EG Solutions (EGS.L)

New business wins, pipeline remains strong

eg’s interim results were impacted by the timing of a number of deals, as described in the June update. Revenue for H1 was £1.1m lower than the prior year, and the group slipped to a £0.9m EBITDA loss. We make modest downgrades to forecasts to reflect the recent challenges, but the refreshed Board is taking steps to address operational weaknesses. The period saw a number of new contract wins, and with the order book standing at over £16m, revenue visibility remains high.

AIM Breakfast

Physiomics* (PYC.L) | Tricor (TRIC.L) | Concepta (CPT.L) | Akers Biosciences (AKRL) | Rex Bionics (RXB.L) | Empresaria Group (EMR.L) | YOLO Leisure & Tech (YOLO.L) | Nostra Terra Oil and Gas (NTOG.L) | EG Solutions (EGS.L) | Hydro Dec Group (HYR.L)

Major social network deal announced

eg solutions has today announced a deal with “a leading social networking corporation”. The deal is material in its own right, it demonstrates the broad applicability of eg’s software, and suggests that the relationship with Aspect is finally beginning to bear fruit. We make no changes to forecasts, but today’s announcement is a major step forward.

Board change points to strategic refocus

EGS confirmed this morning that it expects shortly to be able to announce Nigel Payne’s appointment as its new chairman (subject to NOMAD due diligence), and that four existing board members, including the FD and three non-execs, have resigned. The FD will remain in place and assist an orderly transition to a replacement when found.

Hitting the straps

Results to end January 2016 confirm delivery against core strategic targets. A £3.1m equity issue in January 2015 funded investment in software, and in-house sales & marketing capabilities. That enabled eg to (a) launch significant enhancements to its product lines in September and (b) grow the order book across the year, with another £0.3m added in the last two months. That was driven primarily by direct sales, but the creation of new 3rd party partner channels is progressing to plan and could

Consider all the aspects

eg has announced FY15/16 results in line with the January trading update; revenues had been impacted by a disappointing level of channel sales and, we believe, an immaterial contribution from Aspect. Nevertheless, “core” eg (direct) sales remain robust, the group is modestly profitable and the order book has grown to a phenomenal £17.4m (2.5x annual sales). We realign revenue downwards in line with consensus to reflect caution around channel partnerships, but leave FY17 profit expectations uncha

Business as usual

eg solutions (“egs”) shareholder and strategic partner Aspect Software Inc (“Aspect”) has filed for Chapter 11 bankruptcy protection in the US. The filing is a “consensual restructuring” of Aspect’s debt structure and general unsecured creditors will be paid in full. We understand this process is unrelated to business activities undertaken with egs, and egs management have stated they expect no impact on earnings from Aspect’s restructuring.

Earnings outlook intact

The above developments do not impact our earnings forecast or view of intrinsic value at c 100p/share. That’s underpinned by a growing order book, improved delivery vs sales targets and an operationally leveraged financial model which will mean higher revenues result in a step up in profit/EPS.

Behind every successful company..

eg is well-positioned to capitalise on growing demand from multiple industries globally for technologies to transform back-office efficiency. It provides industry-leading workforce optimisation (WFO) solutions already used by around 50 global brands and over 100,000 users worldwide. These address an area of high priority as increased business conducted digitally drives up transaction volumes across all channels. eg software helps users optimise back office processes, meet customer demand for pro

Northland Capital Morning Report

Alexander Mining (AXM.L) – CORP: Patent Granted | Quartix (QRT.L): Trading statement | eg Solutions (EGS.L): Pre-close

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

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.

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

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

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

iomart - FY24 trading update

The March FY24 trading update reports revenue broadly in line, and adj EBITDA in-line, with consensus. Revenue of £127m at +10% yoy (Cav: £129mE; consensus range £128.4m- £130.7mE) delivered adj EBITDA of £37.5m (Cav: £38.7mE, cons £37.4m-£38.7mE) and adj PBT of £15.0m (Cav: £16.0m, cons £14.3m-£16.0m). £25m net debt (Cav est after excluding IFRS16) was slightly better than our £26.2mE, with typically strong cash generation a feature of the model but consensus mangled by IFRS16 inclusion/exclusi