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In these six short videos Manx Telecom CEO Gary Lamb and Matthew Turner CEO & Founder of Goshawk discuss Goshawk's software for impaired hearing, the potential for the service in the UK and worldwide, how the service will be launched, the targets for the business and economics for Manx.
Manx Telecom
In September, Manx Telecom (MT) subsidiary Goshawk announced the launch of clearSound (MTcS), an innovative mobile phone service for people with hearing needs. Following positive feedback from test groups, MT has signed a deal with BT/EE to launch the Goshawk proposition on their UK networks and it intends invest £10m on the launch over the next three years. This has a five-year target to attract 20% of the three million people in the UK with moderate to severe hearing loss. The recent sell off of MT shares, exacerbated by UK small-cap weakness, has exposed good value in the stock, now at a high 30% P/E discount to its peers.
The shares, back at 5 year lows, reflect some of the pricing challenges in the core island telecoms business and the implied risk to the progressive dividend policy. While there are some headwinds in traditional fixed line and mobile services, what the market misses is the potential for a "transformed" Manx, to launch new, innovative, cash generative off-island telecoms services which can deliver high cash returns.
Manx H1’18 results show further resilient delivery across the range of Isle of Man telecoms services. More intriguingly Goshawk has made substantial progress towards the commercialisation of its hearing loss product.
FY17 results show stable island telecoms revenues and growth in Global Solutions largely offsetting the well flagged customer churn led decline in the data centre business. We have marginally reduced our FY18 EBITDA forecast and increased our net debt estimate.
Interim results highlight the very high market share in broadband and 4G mobile and the good growth in Global Solutions. The customer consolidation led decline in data centre profits has been well flagged.
Management confirm that H1'17 is in line with expectations. Manx provides the full suite of telecoms services to businesses and consumers on the Isle of Man. The half-year update highlights the very high market share in broadband and 4G mobile and the good growth in Global Solutions.
BlackRock Smaller Companies Trust is considering ending the restriction on AIM investment in its portfolio. Currently, the trust is not allowed to invest more than 40% of its portfolio value in AIM-quoted companies. If the required consents and regulatory approvals are received, a resolution may be put forward at the annual general meeting in June. Vets practices owner CVS is currently the largest investment in the trust’s portfolio and wound management firm Advanced Medical Solutions is also in the top ten. The rest of the top ten are fully listed companies. The best performer in February was telematics equipment and services provider Quartix. BlackRock is considering this change at a time when the Small and Mid-Cap Investors Survey 2017 suggests that there is a positive change in attitude towards AIM. Overall, investors believe that AIM is better than it has ever been. The average size of companies continues to rise and this is taken as an indication of maturity but there is still concern about the lower end of the market. There is little pressure on AIM companies to move to the Main Market even if they are relatively large for AIM. There are currently eight companies on AIM valued at more than £1bn, accounting for around one-sixth of the total market value of AIM.
MANX INS FRAN ACSO NAH GMAA TCM
FY16 Revenues/EBITDA are broadly flat on FY15 and in line with expectations. FY17 will be a year of transition while Manx implements the transformation programme before the Company starts to see an acceleration of benefits in FY18.
Manx has released a trading update this morning confirming that the Company has traded in line with management expectations for FY16 and that cash flows continue “to support a progressive dividend”. The Company has also announced it has launched a programme aimed at improving competitiveness and the customer experience - an exceptional cost of £10m should produce a five year payback.
A solid H1 which underpins confidence in our FY16 estimates. Steady growth in the domestic core fixed line business - and double digit progression in Global Solutions - offset the expected decline in Data Centre revenues.
A solid set of results for FY15 which are generally in line with forecasts. The core domestic business continues to deliver predictable cash flows and supports the progressive dividend policy and yield. Through establishing a consistent record of delivery, we see the share price continuing its steady upwards re-rating. We raise our price target 10% to 236p and view the current yield of c.5% as very attractive.
Manx Telecom has released a pre-close trading update this morning confirming that the Company is trading in line with expectations. This helps underpin the solid share price performance seen over the last 12 months and we still see an attractive valuation supported by a 5% dividend yield.
Manx Telecom (MT) has reported solid results for H115, showing the benefit of recent investments in its networks and Data Centres. The group’s high network quality, solid dividend yield, safe and prosperous operating environment, as well as growth prospects in the data storage area make the stock an attractive defensive investment, in our view.
Manx has delivered a robust H1 performance which reinforces confidence over FY 15 profit estimates. The core fixed line business has delivered a typically solid outcome and mobile sales growth was impressive following the launch of 4G. A 5% increase in the interim dividend emphasises an attractive yield and helps underpin the investment case. We have increased our TP 7% to 214p and the valuation remains attractive relative to peers
Manx has announced this morning confirmation of an anchor tenant for phase two of the Greenhill Data Centre (GDC), namely PokerStars. The agreement enables Manx to proceed with the construction of phase two and reinforces the relationship with an existing key client. The recent trading update highlighted the robust performance in the core business and the Company remains on track to deliver FY15 expectations. A P/E of 14.7x and a yield of 5.4% support a solid investment case.
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