Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on VISLINK PLC. We currently have 24 research reports from 4 professional analysts.
|05Dec16 10:31||RNS||Block listing Interim Review|
|16Nov16 07:00||RNS||Holding(s) in Company|
|02Nov16 07:00||RNS||Holding(s) in Company|
|20Oct16 04:40||RNS||Second Price Monitoring Extn|
|20Oct16 04:35||RNS||Second Price Monitoring Extn|
|20Oct16 02:05||RNS||Second Price Monitoring Extn|
|20Oct16 02:00||RNS||Price Monitoring Extension|
Frequency of research reports
Research reports on
Conditional sale of hardware division
28 Oct 16
Vislink has announced that it has entered into a conditional agreement to sell the assets of Vislink Communication Systems (VCS) for $16m. The transaction is expected to be subject to shareholder approval and to close by end FY16. The deal frees management to focus on the software division, which reported a strong increase in order intake during H116, in contrast to the hardware division where H116 revenues fell by 19%, taking the division and the group into the red. The deal also solves the debt problem, leaving the group substantially debt-free. Net debt had reached £8.8m at end June and in September the group was fully utilising its £15.0m revolving credit facility, potentially breaching bank covenants.
Opening a new chapter
21 Oct 16
A lot can happen in 1 ½ weeks. Firstly on the 12th October, Vislink announced that its broadcast software arm, Pebble Beach Systems (PBS), had traded strongly – reporting H1 order intake up 53% LFL. Then the following day, Finance Director (Ian Davies) resigned with immediate effect due to personal health-related reasons, with the shares hitting an all-time low of 8p. Finally the stock has almost doubled to 15.5p over the past 2 days, on the back of positive news that the Board has conditionally agreed to dispose of its hardware division, Vislink Communication Systems (VCS), to xG Technology Inc (Nasdaq: XGTI) for $16m (or c. £13m gross, representing 0.4x 2016 sales). We think xG Tech is a logical home for VCS, since it is already a leader in providing secure, always-on, wireless communications for many mission critical sectors, such as the armed forces, emergency services, public safety, telemedicine, etc. The transaction is subject to shareholder approval (date to be confirmed), and if authorised as anticipated, should close by the end of 2016. Proceeds (say £12m net) have been ear-marked to pay back the vast majority of the company’s £15m revolving credit facility with Santander - thus leaving the business “substantially debtfree”.
N+1 Singer - Morning Song 21-10-2016
21 Oct 16
Xaar has announced that its FD, Alex Bevis, will be leaving to pursue other opportunities after almost 6 years with the group. A search is underway for his replacement and Alex will remain with Xaar until 24th March 2017. While Alex’s departure is disappointing, Xaar’s strategy remains on track, with new product launches expected to drive near term organic sales growth and a target of £220m sales by 2020. This reflects stronger leverage of Xaar’s innovative technology into a broader spread of end products and markets, with the £220m expected to be composed of broadly equal contributions from ceramics, packaging & product printing, Thin film/P4, and partnerships/M&A. Prospects for the group are exciting, with positive news flow on product launches and end markets anticipated over the year ahead.
N+1 Singer - Vislink - $16m VCS sale restores balance sheet; Software strategy from here
20 Oct 16
It was announced today that xG Technology has entered into a binding agreement to acquire VCS, Vislink’s hardware division, for $16m. If the transaction completes, Vislink will be left substantially debt free and will be on course to execute its software transition strategy with Pebble Beach. On a standalone basis, we have forecast Pebble Beach revenues of £12.0m for the year to Dec 2016 and adjusted EBIT of £3.6m. We also forecast central overheads of £2.6m in Vislink, but with the disposal of VCS, there should be scope for this to come down. Assuming continued good trading for Pebble Beach, we see further upside to the shares reflecting the good growth, high margin nature of the business.
N+1 Singer - Vislink - Debt and VCS concerns outweigh Pebble progress
30 Sep 16
Vislink’s interims reflect what was said at the profit warning in July. Lower than expected revenues in VCS led to a loss for that division and a business improvement plan has now been initiated to ensure it generates acceptable levels of profitability going forward. Pebble Beach, the group’s software division, continues to perform well. Net debt has increased to £8.8m and has subsequently increased with the group now fully utilising its £15m RCF. We make further material cuts to forecasts (VCS-related) and now expect losses in 2016. Strengthening the balance sheet and stabilising VCS are the key priorities before it can start rebuilding value in the business.
Decisive action being taken
30 Sep 16
Given July’s profit warning, Vislink’s interims this morning were never going to be pretty. H1’16 orders and turnover fell 21% and 15% respectively to £22.3m and £22.6m, reflecting ongoing difficulties at VSC (where sales dropped -18.5% to £17.2m) as broadcasters continued to divert budgets from infrastructure to content and transition to IP technologies (re delayed orders). Accordingly this pushed group adjusted EBIT to a loss of -£1.1m (vs £2.2m LY) - excluding £2.2m of forex gains which were credited to reserves - with net debt rising to £8.8m from £5.75m as at December. £1.9m of R&D was capitalised vs £1.6m of amortisation charged to the P&L.
Panmure Morning Note 05-12-16
05 Dec 16
Filtronic, the designer and manufacturer of microwave electronics for the wireless telco market, has provided a solid 1H17 trading update. As seen during 1Q17, demand for its new ultra-wide band integrated antennas has been driven by its key customer. Crucially the roll-out provides a reference client and adoption from other clients should be coming in due course. Having said that, programme roll-outs tend to be lumpy in nature and management expect activity to be slowing in the early part of 2H17 until customer concentration is remedied, meaning Filtronic will be exposed to short-term fluctuations in demand.
08 Dec 16
Amino has this morning published a positive trading update, with figures for the year to November 2016 slightly ahead of our forecasts. We upgrade our 2016 estimates modestly, to reflect confirmation of this expected strength and upbeat comments on order backlog. Having recently upgraded our 2017 estimates, we choose to leave these unchanged for now, but will revisit them in February 2017 alongside full FY16 results.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
N+1 Singer - Amino Technologies - Trading update confirms strong full year results
08 Dec 16
Amino has released a short trading update for the year to November 2016. The company announced in October that trading had been strong, driven by record August orders and favourable FX movements. The full year performance is now expected to be slightly ahead of revised expectations, with strong cash generation resulting in £6.2m of net cash at the year end. The strategic improvements made in the year have resulted in greater visibility for the business, and a solid order backlog gives us confidence of further strong performance in FY’17 and beyond. Amino has embraced the transition to the cloud and is now well placed to benefit from current market trends. Today’s announcement is the third upgrade this year, leaving the group trading on an FY’17 PER of just 13.6x with a 4% dividend yield. We increase our target price to 191p. Buy.
N+1 Singer - Morning Song 06-12-2016
06 Dec 16
With FY16 volume and revenue already disclosed in the pre-close, the focus in today’s prelims is on PBT (£100.3m versus our £101m) and EPS (96.8p versus our 95.4p). No special dividend triggered this year (none forecast) and DPS is held at 46.8p (N1SE: 48.0p). On end markets, recent commentary is reiterated – the core business is growing, whilst consumer electronics will be subdued in the current year (competitive capacity from Solvay). On currency, there will be a material benefit in the current year (a little more than the £14m to £15m previously indicated), and a further tailwind next year if current rates are maintained (quantum TBC). There is also an investment of £10m today in a minority interest in Magma Global, Victrex’ oil and gas mega programme partner. Although the share price is now close to our TP of 1730p, we feel that there is enough in today’s announcement to retain a positive stance on medium term opportunities with strong cashflow and a special dividend potentially to look forward to in the current year.