Morning Note – 24 September 2024

Fonix - Excellent FY24, EFCF +16% ahead, Portugal expansion

Fonix’s FY24 results show +19% gross profit growth, underlying EFCF and net cash +16% ahead of our previous forecasts, excellent operational progress including launching into Portugal in the coming months, and a confident outlook that leads us to conservatively reiterate our FY25E gross profit and adjusted EBITDA, and upgrade FY25E EFCF and net cash by +3% and +13%. Robust progress with new and existing customers has driven UK and Rest of Europe gross profit growth of +16% and +42% in FY24, and

Morning Note – 22 July 2024

Fonix Mobile - FY24 +5-6% ahead, conservative FY25 upgrades of +3%

Fonix’s FY24 trading update shows gross profit growth of +18% to £17.9m or +6% ahead of our previous forecast, adjusted EBITDA growth of +18% to £13.7m or +5% ahead, and a confident outlook leads us to conservatively upgrade our FY25E gross profit, adjusted EBITDA, and EFCF by +3%. Robust progress with new and existing customers has driven FY24 growth in both mobile payments and mobile messaging of at least +16%, and UK gross profit growth of at least +15% has been boosted by the successful expa

Hybridan Small Cap Feast - 19 April 24

19th 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: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

Hybridan Small Cap Feast - 12 Mar 24

12th March 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: Our daily digest of news from UK Small Caps If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”. Hybridan Chefs

Fonix Mobile - Robust H1 with +18% gross profit growth, forecasts reiterated

Fonix’s H1 results show gross profit growth of +18% yoy to £9.2m, adjusted EBITDA growth of +18% yoy to £7.3m, and a confident outlook that leads us to conservatively reiterate our FY24E and FY25E forecasts, after we upgraded by +3-4% at the January trading update. A record month of commercial trading in both the UK and International operations in December drove H1 TPV +15% yoy to £158m, with the growth rate partially reflecting the lower H1 23 following HM The Queen’s death in September 2022. G

Morning Note – 12 March 2024

Morning Note – 24 January 2024

Fonix Mobile - H1 gross profit & EBITDA +18%, FY24-25E upgrades of +3-4%

Fonix’s H1 trading update highlights gross profit growth of +18% yoy to £9.2m, adjusted EBITDA growth of +18% yoy to £7.3m, and a confident outlook that leads us to conservatively upgrade our FY24E and FY25E forecasts by +3-4%. A record month of commercial trading in both the UK and International operations in December drove H1 TPV +15% yoy to £158m, with the growth rate also partially reflecting the lower H1 23 following HM The Queen’s death in September 2022. Gross profit growth of +18% yoy ha

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

Superfly

Morning Note – 7 October 2024

PROGRESSIVE: Beeks Financial Cloud Group - Head in the cloud, prospects in the stars

Finals sparkle, with an ‘in-line’/beat set of results (adj. EPS 6.4p vs our 5.1p estimate). Looking ahead, FY25 estimates are covered by recurring revenue, a strong pipeline and a new FY that is off to a flying start. To wit, ACMRR already ticked by £0.5m to £28.5m to 31 August – 74% of our FY25 revenue estimate. CEO Gordon McArthur telegraphs further progress: ‘Demand for our product is stronger than ever, fuelling a regular flow of new contract wins and extensions that offer long-term, recurri

Morning Note – 8 October 2024

Nanoco - Post strategic review – updated forecasts

Nanoco announced on 3 October 2024 that it had completed its strategic review following the earlier announcement (30 August) that its major European customer had ceased its development programme with Nanoco. The company has concluded that it will continue to focus on its other major customer, which is an Asian multinational supplying the electronics industry. Nanoco will also continue to pursue IP enforcement measures against third parties that are using the company’s technology, with potential

Rosslyn Data Technologies - Capital raise – Visible profitability inflection poi

Rosslyn Data Technologies has announced a fundraising for a minimum of £2.5m via a conditional placing to raise £1.3m (gross) at 5p, the issue of £1.2m new 2024 Convertible Loan Notes (CLNs) and up to a further £0.25m via a retail offer at 5p. The funding will be used to deliver its growth strategy, enable the continued development of the technology platform and provide general working capital. Rosslyn recently announced a major new client win with one of the world’s 10 largest technology compan

1Spatial - Federal-level win in the US

1Spatial’s momentum in the US has continued, with the company securing a $1.4m deal with the United States Forest Service (USFS). This is a new Federal government-level deal for the business, building on the momentum 1Spatial has been reporting at state level, where it now has contracts or framework agreements with 21 states (up from 18 at the FY24 year-end).

New store lease signed in Cardiff

Having recently announced its first 3 new store locations, Sosandar has today announced a 4th lease has been signed in Cardiff’s St David’s centre, the city’s leading destination with annual footfall of 14 million a year. With customer reception to its first 2 stores in Chelmsford and Marlow having already been reported as ‘nothing short of fantastic’, today’s news represents another positive step for the brand and is fully aligned to its strategy of opening in in top tier, thriving locations wh

Telematics and fleet management: Microlise vs. Quartix Technologies

The UK AIM market has three quoted commercial vehicle tracking businesses: Microlise Group (SAAS), Quartix Technologies (QTX); and Trakm8 Holdings (TRAK). This note focusses on the larger two, Microlise and Quartix, initiating research coverage on each and comparing respective business models, strategy, growth opportunities and valuation. Whilst the businesses generally target different parts of the market, our conclusion is that Quartix offers better near-term value, cash returns and ROCE, whil

NET growth

Allenby Capital TMT Update - 07.10.24 - SPSY.L, CHSS.L, ELEG.L, SEEN.L

Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.

23% cloud ACV growth and inorganic acceleration

We were expecting FY25 to be somewhat of a fallow period (as profit was due to be supressed by investment) but fast forward 9 months (and three acquisitions), the outlook has transformed as we’re now looking for +21% sales growth and +15% EBITDA. Furthermore we see strong returns continuing into FY26, as per maiden estimates, showing +19% EBITDA growth. We highlight that such returns are not ‘instead of’ organic growth (which continues to be very strong, as per FY24 results) but rather ‘in addit

Morning Note – 9 October 2024

Feedback from Digital Transformation Conference

On 1st October, Dowgate Capital and FTI Consulting held their fourth annual Digital Transformation Conference

Morning Note – 30 September 2024