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 – 29 August 2023

Bigblu Broadband - Strong H1 progress, net cash upgrades of 4-5% in FY23 & FY24

In today’s results, H1 financials are slightly ahead of the June trading update, both divisions have delivered strong operational progress, and we upgrade our FY23 and FY24 net cash due to the focus on cost driving lower capex. H1 revenue of £15.0m reflects Australasia’s H1 growth being impacted by Starlink, and we expect a strong rebound in H2 and FY24, as SkyMesh leverages new NBN Co tariffs from June, selectively increases prices, and begins scaling through new reseller agreements for fixed w

Morning Note – 5 June 2023

Bigblu Broadband - Strong progress in H1, FY23 & FY24 EBITDA upgrades of +3%

BBB has delivered strong operational progress in today’s H1 trading update, and while we revise our revenue forecasts due to Australia and FX, we upgrade our adjusted EBITDA, EFCF, and net cash, as management continues to generate efficiencies and focuses on realising shareholder value. H1 revenue of £14.9m reflects Australasia’s H1 growth being impacted by Starlink, and we expect a strong rebound in H2 as SkyMesh leverages new NBN Co tariffs, which have received excellent feedback and substanti

Morning Note – 20 March 2023

Bigblu Broadband - Strong FY22 with EBITDA +2% ahead, focus on realising value

In today’s FY22 results, BBB has reported organic revenue growth of +12% to £31.2m, adjusted EBITDA +2% ahead of the trading update at £5.1m, and net cash in line at £4.2m. Australasia’s +14% organic growth to £26.5m has powered the group, while Nordic organic revenue growth was -13% due to the cyber-attack on ViaSat impacting BBB’s satellite customers, and the lapping of the decommissioning of c100 fixed wireless towers in FY21. Management’s focus on cost while selectively investing in growth h

Morning Note – 2 February 2023

Bigblu Broadband - Completion of accretive acquisition drives +6-8% upgrades

BBB has completed the acquisition of c5.9k satellite customers in Australia by acquiring the satellite operations of Harbour ISP, which is a subsidiary of the Uniti Group. The business is expected to generate annualised revenue of £2.5m, £0.7m of adjusted EBITDA, and be immediately accretive, and including the acquisition from today, we upgrade our FY23 revenue by +6% to £37.0m, adjusted EBITDA by +8% to £5.6m, and adjusted EPS by + 7% to 5.6p. The cash consideration of up to £2.9m has been fund

Morning Note – 12 December 2022

Bigblu Broadband - FY22 EBITDA +5% ahead and adjusted FCF of +£1.5m

BBB’s FY22 trading update highlights organic revenue growth of +13% to £31.2m, adjusted EBITDA +5% ahead at £5.0m, and net cash £0.5m ahead at £4.2m due to adjusted FCF of £1.5m. Australasia’s +19% organic growth to £26.5m has powered the group’s performance, and the focus on migrating customers to optimise ARPU will enable expansion towards the group’s target of 100k customers in 3 years, from 51.5k at FY22. The Nordics faced a challenging FY22 due to the cyber-attack on ViaSat impacting BBB’s

Morning Note – 5 December 2022

Morning Note – 30 August 2022

Bigblu Broadband - H1 22 organic revenue growth of +12% and positive EFCF

BBB’s H1 22 results demonstrate strong organic revenue growth of +12% to £14.9m, adjusted EBITDA of £2.0m, and adjusted EFCF of £0.4m. The group’s performance has continued to be driven by Australasia’s +16% organic revenue growth to £12.6m, with subscriber growth and upselling further boosted by the successful acquisition and integration of Clear to strengthen the division’s presence around Melbourne and in B2B. The Nordics faced a challenging H1 due to the cyber-attack on ViaSat impacting BBB’

Morning Note – 4 July 2022

CyanConnode (CYAN LN) - Investing in growth

Advanced Metering Infrastructure Service Providers (AMISP) are planning to source smart meters from a larger number of suppliers, requiring increased R&D investment from CyanConnode. In addition, growing delivery schedules, combined with large year-end shipments and potential changes in supplier payment terms, are likely to require significant additional investment in inventory and working capital. To finance these investments, the company has raised £2.72m of gross equity at 10p per share. The

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

SRT Marine Systems - 1H24 results: preparing for all Systems go

As expected from the 1H24 trading update, SRT Marine Systems has reported £5.5m revenue derived entirely from the Transceivers division, but with substantial levels of critical preparation activity in the Systems division in advance of equipment delivery revenue milestones expected in H2. Progress on the £160m Systems order book continues in line with unchanged FY24 revenue expectations, underpinned by the expected completion of revenue milestones from scheduled deliveries during H2. Importantly

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.

Morning Note – 21 November 2023

Filtronic - Making good progress towards FY24 targets

At its AGM on 26 October, Filtronic confirmed that based on trading year to date and its outlook for the remainder of FY24, it is confident of delivering FY24 results in line with market expectations; we maintain our forecasts. Recent contract wins in the space market and ongoing technology development to support E-band frequencies for space applications and W-band frequencies for terrestrial backhaul solutions support growth in the medium term.

SRT Marine Systems - £145m SRT-MDA coast guard contract win establishes visibili

Following an extensive selection and negotiation process, the highly anticipated £145m (US$180m) contract to provide an integrated SRT-MDA system to a Foreign Coast Guard customer has been signed, the largest CG Systems contract to date. The contract follows both the letter of intent announced on 23 March 2023 and formal financing agreement of a UK government (UKEF) loan to the overseas government. Project implementation, structured as manageable milestones worth c.85% (c.£123m) of the contract

SRT Marine Systems - Underpinning success with working capital boost

The global provider of integrated maritime surveillance systems and digital navigation safety transceivers is raising up to £3.95m (gross), comprising a minimum £3.2m equity placing and a primary bid offer of up to £750k at 50p to accelerate Systems and Transceivers growth and to support Systems working capital. It is intended that working capital requirements for the £145m national CG contract announced in May (link here) will be funded through alternative flexible project finance and, if neces

SRT Marine Systems - FY23 results unleash FY24/25 earnings post-COVID

SRT Marine Systems reports performance in line with updated expectations, driven by the return of Systems revenue post-COVID and growth in the Transceivers division. With lockdown restrictions eased in FY23, Systems deployment has accelerated and achievement of revenue milestones led to +273% yoy revenue to £30.5m (£30.0mE, FY22: £8.2m), generating -£0.2m adj PBT (FY22: -£6.4m). Systems booked £18.4m revenue while Transceivers sales grew 60% to £12.1m despite the global component shortages affec

Morning Note – 26 October 2023

Morning Note – 20 November 2023

MTI Wireless Edge+ (MWE, House Stock at 45p) - Contract win/buying opportunity

Motorola Solutions, Inc: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (09/2022)

Motorola Solutions is a renowned communications and analytics player and has a strong market position particularly in the land mobile radio (LMR) communications domain. The company has been delivering decent financial results off-late. In services and software, Motorola’s revenue has been performing well highlighted by robust software growth and it has a good backlog and go-to-market, with portfolio investments continuing to drive meaningful growth over the technologies. In the SI and product se

Cenkos: Calnex Solutions plc - Powerful H1/23 performance

H1/23 interim results showed continuing strong trading for Calnex, with revenue of £12.7m, 38% ahead of H1/22 and PBT up 34% to £3.1m. Revenues increased across all its product lines driven by the sustained transition to 5G and continuing growth in cloud computing, particularly as hyperscale and enterprise companies drive greater efficiency and performance within data centre operations. Though component supply has been an issue throughout H1/23, Calnex has managed the supply chain well and shipp

Cenkos: Calnex Solutions plc -- FY23 Results

FY23A results showed another strong performance, with revenue and profitability up strongly. Documented component supply issues were well managed and scheduled orders were shipped on time. As indicated in the March update, some end-markets been adversely impacted by a more cautious economic outlook, translating into a delay of orders being placed from some customers, a scenario mirrored in recent market updates from sector peers such as Keysight, Viavi and Spirent Communications. However, Calnex