Bigblu Broadband (BBB): Corp | Chariot Oil & Gas (CHAR): Corp | Pebble Beach Systems (PEB): Corp
Companies: CHAR BBB PEB
Bigblu Broadband (BBB): Corp Completion marks the start of an exciting new chapter | iomart (IOM): Corp Interim trading update on track
Companies: iomart Group plc (IOM:LON)Bigblu Broadband plc (BBB:LON)
Allergy Therapeutics (AGY): Corp FY 2020 – record pre-R&D EBIT | Amino Technologies (AMO): Corp Argentinian software contract win | ANGLE (AGL): Corp Peer reviewed publication, using Parsortix in MBC | Bigblu Broadband (BBB): Corp Quickline secures up to £6.1m of subsidy in Lincolnshire | Hardide (HDD): Corp Trading in line with a stronger Q1 expected | Trackwise Designs (TWD): Corp Interim results, new contracts boost confidence | Xeros (XSG): Corp Commercial progress tracking in line with expectations
Companies: AGY AMO AGL XSG TWD BBB HDD
Alumasc (ALU): Corp | Bigblu Broadband (BBB): Corp | Flowtech Fluidpower (FLO): Corp | STM (STM): Corp | Synairgen (SNG): Corp
Companies: ALU FLO STM SNG BBB
Bigblu Broadband (BBB): Corp H1 establishes a solid foundation for FY20 and beyond
Companies: Bigblu Broadband plc
Bigblu Broadband’s H1 results highlight the strong potential for its continuing operations, with H1 organic customer net adds of +5k to 64k, organic revenue growth of +7% to £12.1m, and underlying EBITDA growth of +49% to £2.4m. This establishes a solid foundation for our unchanged FY20 EBITDA forecast of £6.2m, and highlights that our FY21 forecasts for organic revenue growth of +3% and EBITDA growth of +9% are conservative, as further potential tender wins for Quickline, or a continuation of the strong growth in Australia, could each provide substantial upside to our current forecasts. Our FY21 EBITDA growth of +9% also compares to 12-month forward EBITDA growth for Managed Services & Telecoms peers, and the finnCap Next 50, of +9% and +7% respectively, and this makes BBB look undervalued on 8x 12-month forward EV/EBITDA (Managed Services & Telecoms peers 10x, fC Next 50 16x), especially when combined with BBB’s net cash position and 2% EFCF yield in FY21. The general meeting required for BBB’s disposal of its UK and European satellite operations takes place at 10am this morning, and we include a recap of the transaction on p4. Completion of the disposal is then expected in Q3 20, and the next catalysts for BBB are likely to be tender wins for Quickline, new homes being released by NBN for satellite broadband in Australia, and BBB’s FY trading update in December.
Bigblu Broadband (BBB): Corp
AEX Gold (AEXG.L) has joined AIM alongside a £42.5m placing at 45p. Mkt Cap £79.7m. The Company, led by CEO Eldur Ólafsson, has established the largest land package of gold assets in Greenland with a current portfolio of licences covering 3,356 square kilometres, in the two known gold belts in Southern Greenland, the Nanortalik and Tartoq gold belts. Nalunaq is a high-grade gold asset with an updated Inferred Mineral Resource covering 422,770 tonnes at 18.5 grams per tonne of gold, or 250,970 ounces of gold, which covers the area in and around the historical mine. AEX has an existing listing on the TSX Venture Exchange
Companies: PYC THR PRP GDP YOU BBB MRL ONC RENE
Bigblu Broadband (BBB): Corp UK & European satellite operations to be sold to Eutelsat | Independent Oil & Gas (IOG): Corp Core project update | Oncimmune Holdings (ONC): Corp ELCS (lung cancer) data peer-reviewed in publication
Companies: IOG BBB ONC
Bigblu Broadband has today announced the sale of its UK and European satellite broadband operations to Eutelsat for a maximum consideration of £39.3m, with £37.8m payable in cash upon completion. This represents 7.0x FY19 EBITDA of £5.6m for the sale assets, and values the assets ahead of other UK telecom and satellite peers on c6x EV/EBITDA. BBB intends to use the proceeds to reduce its net debt, and evaluate opportunities to enhance shareholder value that could include shareholder returns. In this report we lay out the investment case for BBB’s continuing operations (UK fixed wireless/Quickline, Australia, and Nordics), and introduce conservative forecasts for the continuing group that do not include tender wins for BBB’s Quickline division. This still leads us to expect FY21 organic revenue growth of +3% and EBITDA growth of +9% that compares to 12-month forward EBITDA growth for peers in Managed Services & Telecoms, and the finnCap Next 50, of +3% and +7% respectively. Combined with a net cash position and 2% EFCF yield in FY21, BBB looks undervalued on 7x 12-month forward EV/EBITDA (Managed Services & Telecoms peers 11x, fc Next 50 16x), and we reiterate our target price of 155p based on 12x FY21 EV/EBITDA.
Bigblu Broadband (BBB): Corp BBB’s SkyMesh becomes Australia’s largest satellite ISP | Hardide (HDD): Corp Trading update: oil sector demand softens | Morses Club (MCL): Corp Collections holding up on a reduced loan book | Savannah Resources (SAV): Corp Positive metallurgical update | Xeros (XSG): Corp Verification milestone for XFiltra
Companies: SAV XSG BBB HDD
Belvoir Group (BLV): Corp April significantly stronger than anticipated | Bigblu Broadband (BBB): Corp Reassuring update with strong organic customer growth | ClearStar (CLSU): Corp New COVID-19 testing service | KRM22 (KRM): Corp Finals to December 2019 | Oncimmune Holdings (ONC): Corp EarlyCDT Lung partnership | Shield Therapeutics (STX): Corp FY 2019 results | Universe Group (UNG): Corp FY19 on track, with a good start to FY20
Companies: 9537 UNG KRM BLV BBB ONC CLSU
Bigblu Broadband (BBB): Corp Strong FY19 results reflect a robust investment case | Independent Oil & Gas (IOG): Corp Taming the storm | IQGeo Group (IQG): Corp Contract extension & Covid-19 update | Synairgen (SNG): Corp £14m placing to fund COVID-19 activities
Companies: IOG SNG IQG BBB
Bigblu Broadband (BBB) has reported a strong set of FY19 results that demonstrate strong organic growth, and are in line to ahead of the previous consensus estimates. This establishes a strong foundation for BBB’s future growth, and we expect that BBB will see revenue, EBITDA, and EPS growth in FY20 and FY21 despite the uncertainty caused by Coronavirus. This reflects that BBB has a robust and resilient investment case, which we explain in depth in this report. We consequently believe that BBB is undervalued on 12m fwd multiples of 5x EV/EBITDA and 7x adj P/E, and initiate with a TP of 155p or 15x FY21 adj EPS.
Bigblu Broadband (BBB) has announced that its subsidiary Quickline will lead a £6m project to boost rural connectivity in North Yorkshire. The project is a continuation of Quickline’s previous work as part of the 5G Rural Integrated Testbed project, and is focused on bringing mobile connectivity to the 35% of the county without 4G mobile coverage and testing how superfast mobile connectivity can benefit the county. To fund the project, Quickline and its partners (2 universities and 4 businesses) have secured £4.5m of government funding, which is roughly double the size of the previous grant, and this will support Quickline’s investment in R&D and infrastructure to complete the project and improve its rural coverage. Quickline’s lead in this project consequently reinforces BBB’s reputation as an innovative provider in delivering superfast rural broadband, and demonstrates the strength of the relationship Quickline has developed with the UK government after several successful projects. Overall, we believe that BBB is excellently positioned to deliver strong and sustained growth as it benefits from transformative developments to its core technologies and greater government investment in rural broadband, and we look forward to initiating with FY results towards the end of March.
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CAP-XX Ltd* (CPX.L, 4.5p/£19.9m) | Gfinity plc* (GFIN.L, 3.8p/£28.9m) | MTI Wireless Edge Ltd* (MWE.L, 44p/£38.7m) | Newmark Security plc* (NWT.L, 1.175p/£5.5m)
Companies: CPX GFIN MWE NWT
FY20 results: inline with guidance
Companies: Trakm8 Holdings PLC
Both Q1 revenues and EBITDA were down by 7% yoy with a COVID-19 impact a little bit more significant than the average for telcos.
The group is currently investing heavily in its networks and one day this will pay off, although for the moment we are still waiting for a…revenue stabilisation and COVID-19 won’t help matters in 2020/21. We maintain, however, our Buy opinion: now the dividend has been cut, BT does not deserve such a low price.
Companies: BT Group plc
Good H1 performance from the provider of communications and radio frequency solutions given the global backdrop with revenue growth in all three divisions (Antenna, Mottech and Distribution) and overall growth of 3% to $19.6m. Operating profit increased significantly (+28% to $1.9m) with EBIT margin +190bps, reflecting operating leverage and cost savings. Strong cash conversion resulted in net cash of $7.6m (H1 FY19: $5.0m), post April’s final dividend payment ($1.8m). MTI’s diversified business (sector and geography) has provided some protection against COVID-19 as different countries have entered/emerged from lockdown as evidenced by recent Mottech contract wins in China. Management’s confidence in the outlook is underpinned by order book strength and MTI is currently on track to meet our FY20 profitability expectations. Forecasts and 46p/share fair value, equivalent to 13x FY21 EPS, remain unchanged.
Companies: MTI Wireless Edge Ltd
For the six months to 30 September 2019 (H1 FY20) AdEPT Technology Group reported Revenue +26.4%YoY to £30.8m inclusive of acquisitions, with organic growth of +2.5%YoY. Fixed Line Communications comprised 18.5% (£5.7m), -10.7%YoY, whilst Managed Services grew 39.5%YoY to £25.1m inclusive of the acquisition of Advanced Computer Systems UK Ltd. (ACS) to reach 81.5% of revenue; underlying organic growth was 7.9%YoY. EBITDA (adj.) of £6.1m grew 18.3%YoY; a 19.8% margin. The interim dividend was 5.1p/share (H119: 4.9p) +4%YoY. Period-end senior net debt was £31.5m (FY19: £27.1m) 2.6x EBITDA (FY19: 2.5x), with cash at £4.6m.
Companies: AdEPT Technology Group Plc
Disney+ hits 22m mobile users, SoftBank backed firm downsizes IPO, German mobile carrier selects Huawei
Companies: ENET 7DIG MVR ZOO ZOO AMO BOOM MIRA MWE
The Coronavirus pandemic is a human tragedy of vast proportions – as well as the terrible human toll, COVID-19 has led to economies across the globe going into physical lockdown and financial freefall. Entire populations are adapting to the “stay at home” edict, to safeguard the vulnerable – and some of these changes will lead to long-lasting or perhaps permanent changes in the way we live or work. This note describes some of our client companies whose business models are well adapted to these changes, or who might see a change in long-term structural demand.
Companies: AMO BGO FDM GAMA KAPE LOOP TERN ZOO
Today’s results for YE March 2020, are somewhat historic having been flagged by the trading update back in April. However, they do reflect the impact that COVID-19 has had on international business, as well as actions SRT has taken to secure its future. Lockdowns put a hold on existing and new system projects, causing a delay in both revenues and expected contract signings during the final months of FY 2020 through H1 2021. Also, we highlight that SRT has prudently impaired an existing long-standing contract for a monitoring system in the Middle East to clear the decks for a new larger contract that includes both monitoring system and transceivers. Existing Systems contracts are again under way, with £8.5m received on deliveries, and negotiations have restarted on the expected new contracts. Meanwhile, the Transceivers business grew by 24% in the FY 2020, and surprisingly, is reported to be trading marginally ahead of last year in FY 2021 to date despite COVID restrictions.
Companies: SRT Marine Systems plc
In recent weeks, AAC Clyde Space has announced agreed deals for two proposed acquisitions, SpaceQuest in the US for SEK75.6m and Hyperion Technologies in the Netherlands for SEK22.8m. Both deals are in line with its strategy, meeting both commercial and technical goals and, importantly, adding US and European manufacturing capacities. We have lowered our revenue estimates for the ongoing business by 15% in FY20 and 3% in FY21 in line with the recent update, but the deals should profitably augment what is still strong organic revenue growth. A successful capital raise of SEK52m before costs should allow AAC to pursue and optimise further New Space investment opportunities as they arise.
Companies: AAC Clyde Space AB
DTAC (Telenor Thailand subsidiary) reported its Q3 results
Revenues were 5% below and EBITDA was 1% below estimates
Telenor Q3 Group consensus down by 0.5% on revenue
…and no change on EBITDA following Digi and DTAC’s results today
Companies: TEL TELNF TEL TEL TEQ
Ericsson released strong results, benefiting from the rollout of 5G networks across the US and China as well as market share gains in Europe. This was also a clear beat over the consensus in terms of profitability, sustained by the improving margin in Network. Going forward, the company maintains its financial objective for both 2020 and 2021.
Companies: ERICB ERICB ERCB ERIBR ERIXF
We are lucky that Next, one of the shrewdest commentators on retail sector developments, is among the first to update on Christmas trading. It confirms suspicions that unseasonable Q415 weather dented trade. However, there are also signs in the statement to the structural shifts occurring in UK retailing that could negatively affect sector valuations.
Companies: NXT NXT NXS NEXTO NAC/U 6NG NEXT34 NXTC NXGN NE/H NTAR NGW NEXT OILS NTXVF 1316 N29 NXGPF NXG YNPC FP3 NXTGMS 0CZ7 NXTV NFC NESF OILFF SWHID MROMF NEE* PPK NXG NXTG NXGN NXTM NML NXTN 4814 3842 3186 7094 NEE 003580 065170 089140 137940 160550 NXSCF 2NX 8NX ALNXT NEXT NGB NXTFF NXDCF NEXT NEE NXFNF 1JW NXGEN NEXT NXB NXGWF 348210 NXXTF NXTBF NEXT NEP NXTCL NEXCF NSRCF 8147 EFFI NXGT 9KG NXRA NXGPY NXSL NXMR NXFI 0K80 NXTN NGMC 1N6 2XD QY1 2US NEX L0MA 282