PEN's H1 results this morning are in line with last month's trading update with revenues at £7.4m, well up on the prior year, a significantly reduced EBITA loss, and good progress from the Integrated Product Support (IPS) software business in particular. The company provides software and analytical services in parallel with highly technical engineering simulations, mainly focused on training and asset maintenance, now in the US as well as Canada, Australia, the Middle East and the UK. PEN cont
Companies: Pennant International Group plc
Pennant's FY2020 results, published this morning, amply illustrate the impact of Covid crisis restrictions on their business – but also the strong response from the company, and the start of a major recovery programme, prompting us to return forecasts to the market. Losses in 2020 reflect disruption which impacted both clients and PEN itself, however (1) the company succeeded in generating significant upward momentum in H2, notwithstanding further lockdowns, (2) cost reductions of approaching £
The headline numbers in this morning's results are not new news, having already been flagged to the market in the company's update on August 13th. Rather, the new news is (1) cost-savings in excess of £1m, (2) post-period end contract wins which add around £2m to FY20E likely revenues, (3) breaking of some H1 logjams due to Covid, with key design reviews passed for General Dynamics and substantial invoices raised and paid. £2m net cash on the balance sheet previously flagged is confirmed, and
This morning's update from PEN reflects (1) good progress with the order book standing at £36m (up 9% vs. the year-end number cited in PEN's May 22nd business update, (2) a very creditable figure of £1m annualised cost savings, and (3) net cash at £2m, reflecting positive working capital movements and strong disciplines. In terms of net cash, this represents a £4m turnaround, which we view as an extremely positive result. This morning's news follows on from last month's conversion of the first
News of conversion of the first tranche of the contract towards which PEN received a Statement of Intent back in February is very encouraging. Of the total order, which was valued in February at up to £5m, £1.5m has been placed with the company for training aids, chosen from PEN's existing suite of generic products, to be recognised as previously anticipated in 2021.
This morning's announcement from PEN highlights significant mitigations of some of the Covid-19 risks identified in its recent Report & Accounts, notably where cash and working capital are concerned. From this perspective it is highly reassuring that major invoices to the tune of £2m in relation to PEN's contract with General Dynamics (GD), delayed by the practical issues around milestone meetings during the pandemic crisis, have now been raised, with help from virtual technology, and that writ
Results from PEN this morning for the year to December 2019 are fully in line with expectations, with £1.6m of EBITA from £20.4m of revenues, also £1.6m PBTA. Net debt at £2.2m is likewise well aligned to expectations. Successful fulfilment of the major Qatar contract is a powerful reflection of PEN's specialist technical capabilities and client-orientated model. In addition, a key challenge for 2019, the successful re-scoping of the General Dynamics contract, was also met. Before, the bulk
Today's news of agreement with one of PEN's major customers is positive. The company has announced that mutual agreement has been reached on changes which were requested by the client back in August last year in relation to the UK's armoured vehicle programme. PEN highlights approximately £5m to be recognised in the current and coming years, and a £1.5m increase in the overall contract.
PEN's announcement this morning that it has completed the ADG acquisition announced on January 21st opens up a number of positives for the company, notably (1) it complements the suite of software products which PEN already owns, creating an integrated offering, (2) it takes PEN's software business into new sectors (for example, commercial aerospace and marine), (3) it provides the company with a convincing entrée into the US for its software activities (two thirds of the target company's revenu
New £5m contract win heralded – expected to convert in 2020
News from PEN this morning that it has received a Statement of Intent for a contract to supply training aids to a long-standing client in the Middle East adds yet another piece to the 2020 jigsaw, assuming conversion. With £20m revenues forecast for the current year, and the company “optimistic” about conversion FY20E, the extra £3m anticipated for 2020 looks like taking estimated revenue cover in the current year from 70%-plus to more
Inspecs, a UK designer, manufacturer and distributor of eyewear frames to global retail chains announces its intention to IPO onto AIM raising £94m with a market cap of £138m. Admission expected 27th February. FY Dec 2018 numbers show revenue of $57m and underlying EBITDA of $11m
Companies: SO4 TRP ECHO TIME EBQ SBTX CGH PTRO PEN
Update; contract wins add support to FY2020E
Two announcements from PEN this morning partially fill in contours of FY2019E and apprise the market of contract wins respectively. In terms of the year just concluded, likely reported figures look to be marginally below our forecast. However we read this as the net effect of investment in the company as it gears up for a major anticipated contract (the so-called “down-select”) as against costs which have been taken out (£1m-plus gross, but c.£0.6m n
Two announcements from PEN this morning partially fill in contours of FY2019E and apprise the market of contract wins respectively. In terms of the year just concluded, likely reported figures look to be marginally below our forecast. However we read this as the net effect of investment in the company as it gears up for a major anticipated contract (the so-called “down-select”) as against costs which have been taken out (£1m-plus gross, but c.£0.6m net). The wins announced this morning are respe
Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m. The Group's key producing assets, the Kagem emerald mine in Zambia (believed to be the world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the Faberge brand. Due Valentines Day 2020.
Companies: PEN DCTA SCLP TRAC NTOG ADME NAH ALL KGH MRL
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Friday's market sell off saw some violent downward moves in many stocks with little initial differentiation between sectors or the key drivers of businesses, creating significant share price drops in a number of higher quality or uncorrelated names. We take a look at some stocks we believe have either seen an unwarranted sell-off, have seen weakness go under the radar or where there is now a more attractive opportunity.
Companies: ANX IBPO CYAN SOM EQT AFM
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Trinistar Liverpool S.a r.L announces its potential listing of a newly formed single asset company which will own the Capital Building in Liverpool on the IPSX. Upon admission the Company would become a real estate investment trust (REIT). The Capital Building occupies close to a 3.5 acre freehold site in the centre of Liverpool’s business district; the building comprises c425,000 square feet of predominantly of
Companies: ADBE ADBE SYM ARC AVCT CMCL CLIN DCTA FRAN OSI
Companies: Gaming Realms PLC
Gresham has won an extension and expansion deal with a long-standing Tier 1 investment bank customer as it continues to standardise on the Clareti platform. Including this and other deals, current ARR rises to £23.3m, a 5% organic uplift from end June. Clareti/Electra are trading in line, though Gresham flags potential for further new business in FY21 and an “encouraging pipeline” for FY22. Non-Clareti revenues are performing ahead of expectations leading us to upgrade FY21 revenues and adj. EBI
Companies: Gresham Technologies plc
An in line H1 coupled with continued UK recovery since period end, improving activity levels in SecPay, increasing global opportunity and cost savings going forward give Eckoh “significant confidence” in achieving guided flat revenues and profits growth in FYMar22. Guidance for double digit revenues and profits remains for FY23 (no changes to our forecasts). While H1 continued to suffer from CV19-related drag it is encouraging that the UK business was back at pre-pandemic levels by September. In
Companies: Eckoh plc
TPXimpact has released a very strong set of interims that were well ahead of our forecasts, and which firmly underpin our FY estimates. Revenues leapt +77% to £37.5m (DCe £33.9m) with organic growth of +21% fortified by acquisitions. Gross margin was down -4pts to 31% though this reflected a change in business mix and a temporary increase in use of contractors rather than wage inflation and the group expects to rebuild gross margin going forwards aided by the centralised recruitment benefits fro
Companies: TPXimpact Holdings PLC
Adjusted EBITDA growth of +19% YoY in H1A reflects both higher margins and higher quality revenues. The Group now has 50%+ visibility over H2E revenues. This year will be second half weighted too but returning momentum post COVID-19 means the business is now in a much stronger position. Fair value lies in excess of twice the current price. Buy.
Companies: Shearwater Group plc
This has been a notable half for D4t4; its markets continue to recover from the pandemic, leading to a fine trading performance marked by a raft of new contract wins; management has been refreshed, with an experienced and dynamic new team taking the helm; the geographic expansion into the US and APAC continues; a stream of software updates will maintain Celebrus market leadership; a small consultancy acquisition hints at a more direct market approach in future; and the launch of the exciting fra
Companies: D4t4 Solutions plc
Arcontech has announced that its trading performance is below current market expectations due to one customer reducing its market data spend with the company, and notification from another customer that it will not be renewing its contract from the start of H2 22. The two changes are unrelated and do not involve customers with Arcontech’s core MVCS server-side solution. They instead reflect one customer greatly scaling back its market data team and market data requirements, and a second choosing
Companies: Arcontech Group PLC
First Property announced interim results that underline the opportunity to grow rental income and capital values over the next 12 months. With cash to invest on behalf of both the Group and its fund management clients, there is scope for earnings growth. With capital values generally rising after the lockdown induced lows, we expect NAV expansion
Companies: First Property Group plc
Intuit continued with its exceptional run and had a robust fourth quarter capping off an exceptional year. Their full-year revenue increased by a staggering 25%, including the addition of Credit Karma with the fourth quarter alone contributing $2.6 billion to the top-line. The biggest drivers of the top-line growth are the Consumer Group segment which grew by 16% and the Self-Employed Group which grew by around 14%. These have wonderfully complemented the company’s core QuickBooks Online offerin
Companies: INTUIT (INTU:NYSE)Intuit Inc. (INTU:NAS)
Companies: Ideagen PLC
GB Group (GBG) reported a strong performance in H122, with organic constant currency revenue growth of 12.6% y-o-y and an adjusted operating margin of 25.5%. The Acuant acquisition completed on 29 November and the group’s immediate focus is on combining the two companies and pushing forward with growth plans. Our forecasts are substantially unchanged.
Companies: GB Group PLC
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Companies: Mode Global Holdings Plc