SysGroup (SYS LN) - Resilient product portfolio

SysGroup has released H1 results to 30 September 2022. The company delivered single digit organic growth in line with management expectations. Its services are proving to be resilient, as SMEs seek to invest in technology to increase competitiveness and improve margins. Operationally, the company’s investments in sales, application software and cloud platform have increased scale, efficiency and sales opportunities. Its recent acquisitions have added strong teams, complementary services, cross s

Zeus Technology Quarterly review - November 2022

This quarter’s key observations • Subsector performance: UK Software was the only saving grace in the technology sector during the three months to 10 November, with an aggregate share price movement of +8.1% vs. an average of -12.0% for the other five subsectors. This was largely driven by strong performances from Microfocus International (+70%, following an announced $6bn takeover by Canadian software provider OpenText) and WANdisco (+52%, after strong interim results in September and a po

SysGroup (SYS LN) - Strong execution in a tough macroeconomic environment

SysGroup has released a strong trading update, demonstrating the robustness of its business model in the face of a challenging macroeconomic environment. In addition, its recent acquisitions are performing well, its pipeline continues to grow and its investments in sales and marketing are progressing well. Despite the Company’s continued strong performance, shares trade at only 3.3x FY23 EV/EBITDA and 5.6x PE. We see significant share price upside, with our average valuation estimate 185% ahead

Zeus: Technology Quarterly review - August 2022

This quarter’s key observations • Subsector performance: Marketplaces was by far the best performing subsector from an aggregate share price perspective (up 19.9%) vs. an average –5.2% for the other five subsectors. UK Digital Media was the worst performing subsector with a -12.4% aggregate share price move. • Valuation trends: UK Managed Services saw the largest EV/ EBITDA derating (-2.1x) and is now on the lowest EV/Sales multiple (1.5x FY1) and second lowest average EV/EBITDA (11.3x FY1

SysGroup (SYS LN) - Initiation of coverage

SysGroup is an award-winning provider of managed IT services, cyber security, cloud hosting and IT consultancy. The Group offers investors an attractive business model with high recurring revenue and a diversified customer base. SysGroup is competitively well positioned to benefit from sector trends and is investing in sales capacity to take advantage of cross-selling opportunities and a recovering market. In addition, the company has opportunities to make highly accretive acquisitions and its s

Hybridan Small Cap Feast 29/10/2021

Joiners No joiners today. Leavers No leavers today What’s cooking in the IPO kitchen? Katoro Gold plc (AIM: KAT), the AIM listed gold and nickel exploration and development company, announced that the Company and Target Mine Consulting (Pty) Ltd have agreed to seek admission for 100% of the Blyvoor Joint Venture project (BV) by vending each of their separate interests into a new company to be listed on the Standard List of the London Stock Exchange. Katoro will look to recover its total cash exp

H1 FY21: Adjusted EBITDA up 19%

FY2020: Adjusted EBITDA up by 99%

Small Cap Feast

H1 FY20: Adjusted EBITDA up 111%

All systems go… adj. EBITDA up 41%

Small Cap Feast

Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Loungers plc—the operator of 146 café/bar/restaurants across England and Wales under the Lounge and Cosy Club brands, announces its intention to seek admission on AIM, offer to raise £61.6m at 200p with market cap of £185m, expected 29 April 2019. SDX Energy plc—a North Africa focuse

Full year adjusted EBITDA up 40%

Full year adjusted EBITDA up 40%

Q1 2019 AIM Review

2019 started well for investors with U.S. stocks rallying on the back of trade talks between China and the U.S. resuming. Sterling rebounded in Q1 2019 as expectations built the UK would avoid a “no deal” Brexit, providing a further tailwind to more internationally focused UK companies. This sentiment spread across the globe and filtered its way down into small caps.

Trading update

Pelatro's trading statement shows that a stronger USD in 2022E, combined with delays in certain projects, will impact current year revenue and profitability. An increase in the Group's exposure to the Indian Rupee (INR), due to major Indian contracts being priced in local currency, has led to a lower USD revenue, as the INR weakened by over 8% YTD versus the USD. The company expects the FX headwinds combined with certain mainly change request revenue, to reduce Group revenue by $0.7m to $0.8m in

LIBERUM: Cerillion* - The future is bright

FY23 profit beat could be silly

FY22 results are comfortably in line with October’s update, as CER delivered +26% y/y sales growth to £32.7m (PY: +25%) whilst maintaining its class-leading PBT margins at 35%, such that u/l PBT grew +28% to £11.6m. This translated to £9.9m FCF, after 100% cash conversion. Somewhat bizarrely the most interesting data point in all these stellar numbers is that CER materially beat consensus notwithstanding an unusual £1.8m bad-debt provision (i.e. without, CER would have beaten estimates by even m

Morning Note – 16 November 2022

Hybridan Small Cap Feast 16/11/22

Dish of the day Joiners: BWP REIT joins the Wholesale Segment of the International Property Securities Exchange (IPSX). BWP REIT is a newly formed single asset company and has raised £35m by issuing 35m new ordinary shares at 100 pence per share to acquire Bridgewater Place, an office-led mixed use property in central Leeds and valued at £63m. The property is one of the tallest buildings in Yorkshire, comprising 234,000 sq. ft of office space, and is close to 90% let to EY, as well as multinatio

TPXimpact Interim Results

TPXimpact has announced interims that are reassuring following the September AGM and confirmed guidance for FY23 and 2024.

Morning Note – 9 December 2022

iomart - Energy costs de-risked; positioning for growth

Interims to September are in line with the October trading update. The profit downgrades at the trading update related to revised expectations for the pace of margin improvement; the outlook today is unchanged, but provides reassurance that further risks from energy price movements have been appeased, with the full extent of the energy price uplifts passed on to customers. We lift revenue +£6m in both FY23 and FY24; and lift cost of sales the same amount, leaving profit forecasts unchanged. Expe

Morning Note – 6 December 2022

Cenkos: Shearwater Group Plc -- FX Charge

The interim accounts bear an unrealised FX charge which has led us to review our forecasts. This liability is now largely hedged and the recent strengthening of GBP/USD has reversed some of this loss. Net cash is lower due to the payment profile associated with a material contract won last year but this will unwind over the next two years. We see these items are speed humps and do not change our valuation of the stock.

NTU contract pains

Tribal has announced that the implementation and delivery of its contract with NTU has continued to be more complicated and more costly to deliver, meaning this will be an onerous contract to the tune of £12m. This compares to what could have been £7m GP, so a £19m delta in economic value or FCF over the initial contract term. How this translates to numbers – FY22e & FY23e revenue is unchanged, GP reduces (to reflect higher costs) by £-4m in FY22 and £-9m in FY23 and u/l cash opex stays the same

Interims – slower than expected pipeline conversion

H1 results show good growth, but it is apparent that recent political turmoil has contributed delays in implementing central funding initiatives for the much-needed digitisation of the NHS. INHC remains well-placed for when that happens and, importantly, does not expect opportunities in the pipeline to fall away, more that they will be deferred into FY24. We update our forecasts for FY23 accordingly and await more detail on planned cost savings for FY24. Despite recent weakness, it is worth reme

In line FY22 prelims

FY22 was a pivotal year for INHC, with the transformational acquisition of Attend Anywhere completed and integrated, with all key contracts renewed. Results (pre-IFRS3) are in line with expectations, with £12.1m of pro-forma revenues, Adj EBITDA at breakeven and cash at period end of £7.5m, which has increased further post-period end as key contracts have renewed. Ahead of the H1-23 interims due next week, we make no changes to our forecasts at this stage and continue to believe the company rema

SHORE CAPITAL - MusicMagpie+ (MMAG, House Stock at 26p)

On track for accelerating growth