Morning Note – 14 November 2023

The Joy of Techs - Cavendish Technology quarterly sector note

£23.3bn in enterprise value has been returned to AIM technology shareholders over the past six years in the form of 51 public to private takeouts, including 10 in 2023 alone with the takeovers of Smoove* and Tribal announced in early October. With UK valuations appearing cheap and looking more attractive to potential acquirers, we take a moment to reflect on the trends of corporate and private equity bidders targeting AIM-listed technology companies going back to 2017, through the uncertainties

Morning Note – 21 September 2023

Fonix Mobile - Robust progress in FY23, EFCF and DPS +6% and +3% ahead

In today’s FY23 results, Fonix has announced gross profit and adjusted EBITDA in line with the +4-5% upgrades at the trading update in July, underlying EFCF +6% ahead of our previous forecast, FY23 DPS +3% ahead, and FY24 trading in line with expectations. FY23 TPV of £268.1m reflects robust double-digit yoy growth from commercial customers, and gross profit as a % of TPV has increased to 5.6% from 5.1% in FY22. New customer wins include Channel 4, Bauer Ireland, RTÉ and Wireless Radio Ireland,

Hybridan Small Cap Feast: 20/07/2023

Dish of the day Joiners: Ora Technology has joined the Access Segment of the AQSE Growth Market. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Substrate Artificial Intelligence, an artificial intelligence company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health, intends to join the Access Segment of the AQSE Growth Market. Blackpoint Biotech plc, a medical cannabinoids company esta

Morning Note – 20 July 2023

Fonix Mobile - Strong trading drives FY23 upgrades of +4-5%

In today’s trading update, Fonix has announced FY23 gross profit +5% ahead at £15.1m, adjusted EBITDA +4% ahead at £11.6m, and confirmed confidence in the group’s prospects for FY24 and beyond. FY23 TPV of £268.1m is +1% ahead of our previous forecast, the platform engaged with a record 19m customers in FY23, and customer retention has continued at 100%. Both the payments and messaging segments delivered over +16% yoy gross profit growth, and scaled gross profit as a % of TPV to 5.6% from 5.1% i

Hybridan Small Cap Feast - 13 Mar 23

13 March 2023 @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 objectiv

Morning Note – 13 March 2023

Fonix Mobile - Strong H1 23 with +12% gross profit and +18% DPS growth

Fonix has announced strong H1 23 results, with +12% gross profit growth, +12% adjusted EBITDA growth, and underlying net cash of £8.4m due to EFCF of £5.1m. Commercial customers have driven mobile payments and mobile messaging growth of +13% and +18%, and gross profit as a % of TPV has increased to 5.7% from 5.1% in H1 22 due to lower charity volumes. The 3 March ITV announcement makes Fonix the de facto SMS interactive services partner for broadcasters in the UK, and it is focused on becoming t

Hybridan Small Cap Feast - 03 Mar 23

3 March 2023 @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

Morning Note – 3 March 2023

Fonix Mobile - ITV partnership expanded to include SMS billing payments

Fonix has announced that it will extend the commercial partnership with ITV to include SMS billing payments, alongside the existing relationship for carrier billing and charity services. After developing a strong working relationship with ITV over the past five years, today’s deal will see Fonix gradually expand to support all competition interactivity for ITV’s on-air formats, including shows such as Dancing on Ice, Good Morning Britain, Lorraine, ITV Sport, Love Island, and This Morning. ITV w

Concurrent Technologies - FY23 trading update – revenue growth accelerating

Concurrent Technologies has released a FY23 trading update stating revenues in the current year are expected to be ahead of market expectations. Strong order intake has continued throughout the year and the significant investment in product development undertaken to target design-in wins has brought new customers (especially large Defence sector prime contractors), larger average single order sizes, and an increasing diversification of end markets. So far this year, Concurrent Technologies has w

Journeo - The Merry Journey Continues

Journeo has released a positive trading update following strong business activity in October and November. The company references strong trading in its core Fleet and Passenger Systems divisions, as well as the newly acquired Infotec and MultiQ divisions. We expect that the investment made in the Infotec factory to facilitate higher production speed has contributed to clearing the prior backlog and the ability to win new orders. We believe the positive trading momentum will continue into FY24E a

Altitude Group (ALT LN) - Continued rapid growth

Altitude’s interim results show continued strong trading and operational progress, with a positive outlook for the remainder of the year. FY24 revenue and adjusted EBITDA is expected to be in line with market expectations. The Group’s pipeline for university campus stores (Gear Shops) remains healthy and growing, with further contract announcements expected between March and June next year. Our average valuation estimate is now 57.8p per share (previously 57.6p), but material Gear Shop contract

Celebrus Technologies - Encouraging interims, and name change

Celebrus (formerly D4t4) 1H24 interims to September are in line with the October trading update and unchanged forecasts. The typical 1H/2H revenue split eased a touch to 40/60 from 38/62, taking 1H EBITDA to breakeven (after £-1.2m in 1H23) and en route to £5.7m for the full year (FY23: £3.7m, including £4.9m in 2H23). The delivery of the larger of the two lower margin orders, together worth c£6m and postponed from 2H23, has boosted 1H24, with cash to follow in 2H24. Net cash (no debt) of £14.7m

Crimson Tide - FY23 update: FY23E adj EBITDA +136%, FY24E reiterated

Crimson Tide has reported an encouraging FY23 trading update highlighting operating efficiencies in FY23, and a strong pipeline of new business with increasing visibility to support profitable recurring revenue growth. As a result of more efficient operations, the company delivered reduced spend in FY23, reinvesting part of the savings in growth marketing activities, including partner acquisition in the US and UK. We upgrade our FY23E adj EBITDA to £0.4m (was £0.2m) to include the savings, upgra

Morning Note – 28 November 2023

Morning Note – 29 November 2023

New balance

Morning Note – 27 November 2023

GENinCode - Transition to De Novo

Following discussions with the FDA, GENinCode has agreed to transition the FDA approval pathway for CARDIO inCode-Score (CIC-Score) to a De Novo submission from the previous 510(k) application. This transition will create a new regulatory class for polygenic risk score medical device tests and, assuming approval, could see CIC-Score established as the ‘predicate’ device against which future polygenic risk score tests are assessed, potentially creating a barrier to future competition given the cl

Morning Note – 30 November 2023

Synectics+ (SNX, House Stock at 103p) - UK contract win

Auction Technology Group - FY23 prelim results – revenue resilience

ATG’s prelim results for the year to September 2023 were broadly in line with our forecasts, with a modest outperformance on profitability, thanks to a higher gross margin and adjusted EBITDA and EBIT margins slightly ahead of our expectations. Revenue showed continued organic growth and a strong contribution from EstateSales.Net. Revenue growth in Value Added Services (VAS) was 27%, with good adoption of digital marketing solutions and increased penetration of atgPay across LiveAuctioneers and

Tracsis - Delivering growth now and investing in the future

Tracsis’s FY23 results demonstrate that it is reaping the benefits of organic and acquired growth as the March 2022 acquisition of Railcomm adds US growth to existing UK and Ireland strength and growth. 19% group revenue growth (10% organic) was delivered from 26.5% growth in Rail Technology & Services (RT&S), including 8% organic; and 14% growth in Data, Analytics, Consulting & Surveys (DACE), all organic. £82m revenue (vs £81.5mE) yielded EBITDA of £16m as expected, with £15.3m cash, no debt,

Free shares in a new company

At last week’s investor briefing, GHT lifted the lid on Floe – a new product which materially extends Gresham’s value proposition beyond Clareti (regulatory and operational FS software) to front-end banking software as well, specifically corporate banking account management – a large (but poorly served) market. This attitude is seemingly shared by ANZ - which has been key to Floe’s development and will be first to commercialise the software. And - subject to a successful rollout – its deal