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 – 24 August 2023

Sopheon - Interims deserve Acclaim

Sopheon has delivered interims in line with unchanged FY expectations. 1H23 saw five (1H22: six) new Accolade customers, at an average deal size of $0.8m, almost twice the level in 1H22. Acclaim Projects & Acclaim Ideas (developed from ROI Blueprints and Solverboard, acquired in 2021 & 2022) were launched in September 2022 and have achieved c$0.5m ARR, showing good momentum from a standing start. ARR of $25.9m has grown 18% vs 1H22, and 7% since FY22, including $15.2m SaaS ARR, which grew 63% vs

PROGRESSIVE: Sopheon: Transition to growth

The H1 23 results, published today, show impressive progress on both the operational and product fronts. SaaS ARR is up 63% on H1 22. Accolade continues to win new clients while Acclaim Projects and Acclaim Ideas are gaining revenue traction, and the recently launched online sales channels for Acclaim Ideas and Acclaim Products are already achieving ‘benchmark run rates’ for signup activity. The outlook statement is confident. In our view, the pieces appear to be falling into place for significa

Morning Note – 10 July 2023

PROGRESSIVE: Sopheon: Improving access to key growth markets

Sopheon has today announced the acquisition of the business and assets of Prodex, a specialist innovation software reseller and consulting business based in Brisbane, Australia. This deal brings Sopheon’s established reseller in the region into the fold, with the goal of improving access, service and traction in the Australia, New Zealand and South-East Asian markets. This relatively small acquisition (consideration up to AUD $2.2m) has been made on what appears to be attractive terms for both p

Morning Note – 8 June 2023

PROGRESSIVE: Sopheon: AGM statement – FY23 starting well and to plan

Sopheon’s AGM statement, issued today, revisits the successes of FY22 but also updates on the encouraging progress made so far in FY23. The statement is positive and confident in tone. Since the start of the year, Sopheon has secured five new SaaS client wins with Accolade, alongside a number of order extensions. ARR is up by an impressive 18% on this time last year. Revenue visibility of $31m and an active pipeline of both new and existing customers underpins management’s confidence in full-yea

Hybridan Small Cap Feast - 23 Mar 23

23 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 – 23 March 2023

PROGRESSIVE: Sopheon - A year of strategic and product progress

Today’s FY22 results reflect a year of significant progress, with revenue and EBITDA coming in above the market expectations prior to the January update. Sopheon completed two acquisitions and launched three products, broadening its family of InnovationOps solutions and expanding the addressable market to $3bn. FY22 also saw Sopheon’s largest single deal to date: the $11m US Navy contract. Revenue of $36.8m was 7% ahead of $34.4m in FY21, or $38.1m on a constant currency basis, representing 10%

Sopheon - Results: Introducing InnovationOps

FY results to December 2022 are in line with the January trading update indicating exciting prospects. The significant strategic shift to SaaS for all new customers will lead to greater visibility and quality of earnings, and forecasts are unchanged save for changes to US tax assumptions in FY24. $24.3m of ARR at FY22 (+17% vs FY21 ) represents 64% of FY23 revenue expectations; total visibility of FY23 revenue stands at $28.4m, equivalent to 75% of FY expectations (this time last year was $25.1m

Hybridan Small Cap Feast - 30 Jan 23

30 January 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 object

Morning Note – 30 January 2023

New balance

Hybridan Small Cap Feast - 30 Oct 23

30th October 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 obje

Hybridan Small Cap Feast - 01/12/23

1st December 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 obje

Hybridan Research: 01/12/2023: DXS International Plc: Innovate UK grant to advance precision medicine AI solution

DXS International yesterday announced its success in securing £409,000 of grant funding jointly with Health Innovation East from Innovate UK – the UK’s national innovation agency - for further Research and Development (R&D) of its Artificial Intelligence (AI) medicines optimisation prescribing solution, ExpertCare. The Innovate UK grant will enable DXS to accelerate its efforts in advancing ExpertCare, a product promising to revolutionise medicine optimisation. The funds channelled into intensi

Allenby Capital TMT Update - 13.11.23 - MWE.L, CLCO.L, TERN.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.

Growth on the dot plot

Ingenta - Firm interims –forecast upgrades

Ingenta, the provider of software technology and supporting services to content providers and publishers around the world, has released interim results for the period to 30 June 2023. Revenues were up 9% £5.7m (H1/22: £5.3m), 80% of revenues recurring in nature. Adjusted EBITDA of £1.6m was up 26% versus H1/22 (£1.3m). New contracts worth c£2m were won during H1/23, with further new business secured post period end and we have modestly upgraded revenue and adjusted EBITDA forecasts for FY23E and

dotDigital - Delivering organic and acquired growth expectations

Finals to June 2023 detail performance in line with expectations, but outperforming by +6% for adj PBT and adj dil. EPS: revenue of £69.2m (£69.1mE); adj EBITDA of £22.0m (£22.3mE); adj EBIT £14.3mE (£14.3m); adj. PBT of £15.4m; (vs £14.5mE with the benefit of interest); and adj dil EPS also +6%. £52.7m cash at 30th June enabled the £25m September acquisition (incl £18.9m cash consideration) of personalisation functionality provider Fresh Relevance, in line with the acquisition strategy and acce