Zeus: Video Games Sector Quarterly review - July 2022

In the June edition of Zeus’ Video Games quarterly report, we note that sector activity has declined for a second consecutive quarter but that activity remains well above pre-pandemic levels. Share prices have fallen across all subsectors with the Continental European PC and Console focused subsector topping performance and the UK PC and Console focused subsector lagging in the quarter. In the current environment, earnings reliability and diversity are being valued at a premium, leading to highe

Zeus: Technology Quarterly review - May 2022

Zeus provides its Technology Quarterly review for Q2 2022, with a redefined company universe. Key observations on valuation and performance analysis include: • Price performance: All tech subsectors declined over the last three months. The UK Software subsector outperformed (-11%) in a risk off market, supported by high repeating revenues, pricing power and visibility. Marketplaces (-33%) suffered the largest price decrease largely driven by the post-pandemic performance of the food delivery

tinyBuild - Tracking well so far

Tracking well so far

Video Games sector - March 2022

Zeus introduces the first edition of the new Video Games sector quarterly report. In this note we present financial, operational and valuation data from major games publishers and developers. Our main observations this quarter include: • Growth in hours watched has gone negative while concurrent viewers are still growing. Hours watched on Twitch, Youtube Gaming and Facebook Gaming fell 4% YoY in Q4 2021 after growing 85% in Q1, 19% in Q2 and 13% in Q3 2021. Average concurrent viewership (CCV)

tinyBuild (TBLD LN) - Strong 2021 results

tinyBuild delivered a strong 2021 trading update. Results are expected to be ahead of expectations, with strength in both new releases and the back catalogue. Outperformance was driven by both existing and acquired businesses. Looking forward, TBLD sees very encouraging early indicators of demand for its game pipeline, including Hello Neighbor 2, and prospects are well supported by diversified game portfolio and revenue sources.

tinyBuild (TBLD LN) - HN2 and recent launches

tinyBuild announced that Hello Neighbor 2 (NH2) will be available for pre-order on 7 April 2022. Based on the growing popularity of other titles in the Hello Neighbour franchise, the company is highly confident ahead of the launch of HN2. tinyBuild is also pleased with the progress of its recent game launches and a number of its subscription service titles have been renewed, providing visibility and accelerating investment. tinyBuild’s portfolio is growing increasingly diverse.

tinyBuild Inc (TBLD LN) - Evil hell hound

tinyBuild announced the acquisition of Versus Evil, a publisher based in the US, and Red Cerberus, its development services subsidiary in Brazil. We estimate tinyBuild is paying only 5.4x 2022 EBITDA, based on upfront payment only and estimates that do not lead to earnout payments. We raise our 2022 EPS estimate by 10% (see overleaf). The acquisition provides tinyBuild with access to talent and IP in Latin America as well as in-house Quality Assurance, testing and localisation capabilities.

tinyBuild Inc (TBLD LN) - Buying opportunity

We see a strong buying opportunity in tinyBuild after an unwarranted decline in its share price. Shares have fallen 29% since 14 September (after H1 results) despite company fundamentals remaining very strong. tinyBuild is now the cheapest (lowest EV/EBIT) video game company in the UK. Accretive acquisitions and a potential trading update are potential price catalysts.

tinyBuild Inc (TBLD LN) - Building resilience

Solid results, strong pipeline, rising resilience and high-value acquisition: Revenue was $18.6m, in line with expectations. H1 revenue represents 38% of our full year forecast, indicating an H2-weighted year as previously flagged. We expect tinyBuild to release seven new games in H2 compared to three in H1. Moreover, tinyBuild plans higher-profile releases in H2 (Potion Craft and Despot’s Game), which are already generating strong KPIs. EBITDA was $7.9m, slightly ahead of management’s expecta

tinyBuild Inc (TBLD LN) - Igniting Animal spirits

tinyBuild announced its fourth acquisition of the year this morning. The company has acquihired Animal, a developer it is working with to release Rawmen, a light-hearted multiplayer shooter game.

tinyBuild Inc (TBLD LN) - Building momentum

Today’s AGM statement indicates strong progress on agreements with distributors, mining the back catalogue, developing interest in planned releases and attracting talent. The update increases our confidence in tinyBuild’s ability to at least meet expectations.

Zeus Capital: Technology Quarterly review - July 2021

Zeus Capital provides its Technology Quarterly Review for Q3 2021. The payments sub-sector led price performance in the quarter as consumer spending picked-up and broadened following the easing of lockdown restrictions. As consumers diversified away from stay-at-home activities, the video game sub-sector saw its previously market-leading price performance temporarily stall. The digital marketplaces sub-sector continues to offer investors the highest growth potential but this continues to be reco

tinyBuild Inc (TBLD LN) - Firing on all cylinders

tinyBuild delivered solid maiden results and a positive update. Revenue was ahead, EBITDA was in line, cash conversion outperformed and 2021 has started strongly. In addition, tinyBuild strengthened its Board, delivered an accretive acquisition and is seeing “very encouraging signs of traction” in its game pipeline. tinyBuild appears well-positioned to grow revenue 31% and make further earnings accretive acquisitions in 2021.

tinyBuild Inc (TBLD LN) - Initiation of Coverage - Quality construction

tinyBuild is a digital-first publisher and developer of video games. The company has a strong track record of selecting, developing and marketing game IP and building long-term franchises. tinyBuild has access to low cost talent and is increasing investment in own-IP to extend franchise control and longevity, and expand margins. tinyBuild has built a large pipeline of promising games that should boost sales growth and widen margins.

Cenkos: Healthcare Sector - Ward Round

Weekly round-up of AIM-listed healthcare news. Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics

Morning Note – 6 July 2022

Capital Markets Day feedback

Cambridge Cognition held a very impressive CMD yesterday which showcased the group's Science and Technology capabilities.

Hybridan Small Cap Feast 28/06/2022

Joiners: No Joiners Today. Leavers: Raven Property Group has left the Main Market. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or req

Strong H1 underpins high teens FY22 organic growth

Gresham reports that positive trading has continued in H1 with group revenues up 19% organic to £23.1m. Clareti ARR grew an impressive 17% organic to £25.9 and continues to be the engine of growth. There was also strong trading from non-Clareti revenues which has the potential to continue in H2 depending on some material Contracting revenues renewals. As such Gresham expects FY22 results to be at least in line with expectations. We make no changes to forecasts at this time, though further positi

Contract wins and trading update

Tribal has today announced multiple contract wins (both with new and existing customers) and as well, a positive interim update for FY22, highlighting that - driven by this sales momentum and stronger than expected implementations – revenue now expected to be “marginally ahead”. EBITDA meanwhile has been temporarily held back by a customer specific factor, though this is set to recover in H2 and hence management are guiding to unchanged EBITDA expectations for the full-year. We therefore upgrade

Hybridan Small Cap Feast 27/06/22

Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or request an overdraft from their

Hybridan Small Cap Feast 30/06/2022

Dish of the day Joiners: Visum Technologies has joined the AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Compan

Morning Note – 28 June 2022

Morning Note – 29 June 2022

D4T4 Solutions - FY22 beats expectations and funds a 12.5p special dividend

Final FY22 revenues and earnings are slightly ahead of forecasts already lifted with the YE update, reflecting a year of strong financial performance despite the pandemic and economic uncertainty. The ongoing transition to recurring revenue means the impressive +32% yoy growth in ARR is a better measure of sales growth, driven by need for granular data in real time by businesses after digital transformation. As expected, margins are lower yoy due to investment in opening an $18bn anti-fraud mark

Hybridan Small Cap Feast 04/07/2022

Joiners: Re-admission of 888 Holdings to the Main Market following the reverse takeover of William Hill. Leavers: Umuthi Healthcare Solutions has left the Main Market. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide custo

AGM: trading in line with strong growth expectations

SmartSpace reports that trading since May has continued in line with its expectations. Highlights include continued progress at SwipedOn, a pick-up in momentum for Space Connect and a strong start to the year for A+K, the latter seeing revenues significantly higher yoy. Recall that Smartspace indicated that group ARR reached £5.5m at end April and that it expected “further strong growth in FYJan23”. We forecast group ARR of £6.8m at end FY23 with the stock trading on a modest 2.5x this number, w

LIBERUM: Virgin Wines UK* - Quality shines through - BUY

Profitable cybersec growth story, undervalued