Strong cash performance

IndigoVision announced solid FY’19 results highlighting a 6th consecutive half year of topline growth, improved profitability, and materially stronger than forecast cash generation ($3.6m; N1S: $1.8m). Strong cost control and tight cash-flow management have led to a much higher year end net cash figure than forecast ($2.2m; N1S: $0.4m), and we push up FY’20E net cash forecasts to £3.9m (was $1.1m) although P/L forecasts remain broadly unchanged. The Group also announced its updated ‘IndigoVision

In line y/e trading update

IndigoVision has reported a y/e trading update, confirming strong EBITDA growth, in line with forecasts, meanwhile sales also grew by 9% - to $50m (vs. $52mE). Cash performance was in line - y/e net cash $2m vs. $2.5mE (ex Agora acquisition), implying FCF of c.$1m. FY19’s performance therefore positions IND strongly for FY20, where we expect a combination of both external tailwinds and internal reorganisation to provide continuing benefits. We therefore reiterate existing forecasts. IndigoVision

Small Cap Feast

Calisen Group. Potential Intention to Float. Owner and manager of essential energy infrastructure assets . Consolidated FY Dec 18 revenue £162.1m and operating profit £25.4m. Raising up to £300m in primary plus partial vendor sale. The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. R

Bolt-on acquisition announced

IndigoVision have announced the completion of the c.€3.0m acquisition of Agorasys SA (‘Agora’), a strategic IP bolton which is expected to add further strength to the Group’s Video Management Software (‘VMS’) tech stack. €2.5m of cash consideration (inc. €2.3m to clear debt) and 34,422 of share consideration is payable upon completion, with the remaining balance deferred dependent on certain performance contingencies. The Agora product delivers integration of multiple systems across disparate lo

Focused on profitability

IndigoVision’s improved performance looks set to be sustained through FY’19E and into FY’20E. The digitisation of the surveillance industry has led to accelerated end–market growth, with the group well placed to meet demand supported by a strong brand and restructured sales team. Investment into global distribution channels, a new CRM and an upgraded ERP platform are expected to drive both better visibility of revenues and sustain recent improved working capital management. We introduce FY’20E n

Interim results confirm H1 profitability

H1’19 results confirm the positive top-line momentum highlighted in the recent trading update. A fourth consecutive period of top-line growth saw revenues reach $24.1m (+8% y/y), with the seasonally weaker H1 profitable for the first time since 2014. A diversified supply chain has enabled partial tariff-free access to the key US market, supporting 15% top-line growth in North America. Net cash rose $0.8m to $2.8m supported by the return to profitability, with liquidity further improved by a new

4th consecutive half of top-line growth

In a positive H1 trading update IndigoVision unveiled a fourth half year period of sequential top-line growth. As a result of revenues rising to $24.1m (+8% y/y) and cost rationalisation undertaken in the prior year, management expect to deliver positive half-year operating profits for the first time since 2014. The balance of net cash held by the group rose to $2.7m by the end of the H1 period (Dec-18: $2.0m). Current trading looks in-line with expectations, following similar seasonal H2 weight

Small Cap Feast

ReAssure Group plc - The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market. Reinsurance giant Swiss Re has suspended plans for a £3.3bn London stock market flotation of its subsidiary ReAssure, blaming "heightened caution" among investors. Voyager AIR The Company will focus on the acquisition, leasing an

Positive start to FY19

Trading in the first four months of the year was in line with expectations. As in previous years, sales are expected to be H2 weighted and, whilst visibility of order timing is limited, management indicates that the current pipeline is supportive of the target to return the Company to profitability in FY19. We are encouraged by this positive start to the year and therefore leave our forecasts unchanged. We expect a significant improvement in financial performance this year, forecasting PBT of £2

Small Cap Feast

Essensys plc—a provider of mission-critical SaaS platforms and on-demand cloud services to the high growth flexible workspace industry, plans to join AIM. Offer TBC, expected 29 May 2019. Induction Healthcare Group plc—a healthcare technology company focused on streamlining the delivery of care by Healthcare Professionals looking to join AIM. Expected raise of £14.58m at 115p, market cap of £34.07m. Expected 22 May 2019. SDX Energy plc—a North Africa focused oil and gas company, announces its in

Small Cap Feast

Network International Holdings—Pleading enabler of digital commerce across the Middle East and Africa region, operating across over 50 highly underpenetrated payment markets that contain a total population of 1.5 bn. 2018 rev $298m, underlying EBITDA $152m. Due April. No new funds to be raised. Secondary sell down. Targeting 25% of at least 25%. Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to

Small Cap Feast

Circassia Pharma (CIR.L) - specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019.

Losses reduced in FY18 with momentum building

Today’s update confirms solid year on year progress, with sales expected to increase by 9% to $45.9m in FY18 (N+1SE: $48.0m) and the positive gross margin trend continuing throughout the year. However, whilst the Group expects to report a significant reduction in its operating loss in the year, the revenue shortfall means it is now expected to be loss making in FY18 vs. our break even forecast. A strong cash outperformance is a key positive in the statement, with net cash at the period end stand

Losses narrowing and guidance reiterated

FY18 is expected to be a year of stabilisation and management has reiterated guidance of a break even position in the current year. Significant Board, leadership and strategic changes were made in H2’17, and in H1’18 the Company launched a number of new products and services. The benefits of these actions are starting to come through, with losses narrowing in H1’18 vs. H2’17 and revenue continuing to grow. We therefore retain our revenue and profit forecasts for FY18. We introduce a new FY19 for

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

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

Crimson Tide - FY23 reports +15% revenue; investment phase complete

Crimson Tide has reported FY23 results to December in line with expectations, with additional operating leverage benefitting updated FY24 and maiden FY25 and FY26 forecasts. FY23 delivered +15% revenue growth to £6.2m at 86% GM, of which over 90% is recurring, and maintained £5.8m ARR even after unexpected customer churn in the year as we previously noted. Crucially, the Group achieved milestone adj EBITDA profitability of £0.4m at 7% EBITDA margin, and edges closer to adj PBT profitability expe

Morning Note – 16 April 2024

Devolver Digital (DEVO LN) - Rebuild year

Devolver Digital encouragingly delivered 2023 results slightly ahead of expectations and provided a steady medium-term outlook that leads us to reiterate our 2024 Adjusted EBITDA estimates. Longer term, the company is now planning to further develop its two major planned titles, Human Fall Flat 2 and System Era's next major new release. We now expect those major titles to be released in 2026 rather than 2025, meaning we lower our 2025 Adjusted EBITDA forecast to $10.6m from $17.6m but introduce

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.

Soft growth patch

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).

Morning Note – 17 April 2024

Touchstar - Full year results: Recurring revenue strategy delivers further profit growth

Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning's full year results reflect the outcome of a multi-year strategy coming to fruition for the group, with recurring revenue growth of 8.7% delivering overall revenue growth of 7.1% and in turn a 60% increase in PBT to £0.7m. Over the past few years, Touchstar has focused on enhancing the returns from their product offering through a shift towards recurring software licen

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.

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

LIBERUM: Cirata plc: Cirata from the flames

Initial Equity Trading Comments - 19 February 2024