Morning Note – 3 April 2024

Calnex Solutions - FY24 trading update – marking time

Calnex has released a pre-close trading update for the year to March 2024, indicating that revenue would be £16.3m, c£0.7m below our forecast, partly due to the timing of orders at the end of the period. Group trading has been impacted by the well-documented, continuing challenges in the Telecoms sector which have seen delayed project timings leading to corresponding delays in customer spending. Administrative costs are being controlled and are focussed on maintaining R&D. Calnex remains confide

Morning Note – 21 November 2023

Calnex Solutions - H1/24 interims update

Calnex’s H1/24 interim results, in line with the 10 October trading update, show revenue down 38% to £7.8m, albeit with the gross margin holding up well at 74.4%. Pricing and competition have not been problems for Calnex in the period, with customer engagement levels remaining high and the sales pipeline remaining strong. With a declining economic outlook earlier in the year leading to lower activity levels in the Telecoms sector worldwide, the conversion of the sales pipeline into orders slowed

Calnex Solutions - Trading update – FY24 forecast downgrade

Calnex has released a trading update ahead of its interim results for the six-month period to end September 2023 highlighting continued delays in customer ordering patterns. During H1/24 (the six-month period to end-September) the conversion of sales pipeline into order inflow has remained at the levels experienced at the beginning of the year, with the precise timing of customer orders remaining uncertain. A deteriorating economic outlook has led to customers delaying projects and although no o

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

Hybridan Small Cap Feast - 23 Feb 23

23rd May 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 objectiv

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

Hybridan Small Cap Feast - 07 Mar 23

7 March 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 objective

Cenkos: Calnex Solutions plc -- Economic headwinds slow order intake

Calnex has released a FY23E trading update confirming that the financial performance is expected to be in-line with expectations following a strong H2/23. Though component supply was an issue throughout FY23, Calnex has managed the supply chain well and shipped scheduled orders on time, with the economic impact negligible. The Telecom sector has been adversely impacted by a more cautious economic outlook and this has translated into a delay of orders being placed from some customers in the last

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

Clorox Co.: Innovation-Led Growth & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (08/22)

Clorox Co has navigated via challenging operating conditions and it failed to meet Wall Street expectations in terms of revenues. VMS sales have shown a decline in the quarter mainly because of the ongoing shift from the noncore brands and a reduction in the retailer inventories. As a part of the company’s IGNITE strategy, it has announced a streamlined operating model for creating a faster, simpler company. The management has been taking proactive steps for building margins and then investing i

Cenkos: Calnex Solutions plc - Maintaining powerful momentum

FY21 results show another very strong year of trading for Calnex, with revenue of £22.0m, 8.9% ahead of our forecast £20.2m, with PBT up 64% to £6.0m. Demand for telecoms testing equipment has remained very strong. The order backlog has continued to grow and was at record levels entering FY23E. Calnex has managed component supply chain issues well, though component supply will remain an issue throughout FY23. Investment in product development and operational scalability has increased substantial

CyanConnode (CYAN LN) - FY24 update: revenue materially ahead

CyanConnode exceeded FY24 revenue expectations and has high visibility into FY25, supported by strong deliveries and a growing backlog respectively.

BATM+ (BVC, House Stock at 18p) - New client Edgility contract

Hybridan Research: Sector Review: Artificial intelligence in UK cybersecurity: the human uplift 17/04/2024

Artificial intelligence (AI) is a double-edged sword in cybersecurity. Whilst new AI models, architectures, and innovations are emerging to protect the security posture of organisations, attackers are also benefiting from deepfakes, sophisticated phishing, and automation of malicious codes. To ensure the impact of AI on cybersecurity to be a net-positive, we need to pit good AI against bad AI. Point solutions enhanced with machine learning: Global cybersecurity has been built with point soluti

CyanConnode (CYAN LN) - The smart choice

CyanConnode provides end-to-end communications platforms that connect Internet of Things (IoT) devices such as smart meters to a utility's billing system. The company is a global player and a market leader in India, where a new government scheme, as set out below, has mandated the procurement of 250m meters by March 2025, a significant market opportunity for CyanConnode.

PROGRESSIVE: Gamma Communications: More happy returns

Gamma’s results for the year ended 31 December are in line with the expectations confirmed in the January trading update. Revenue of £521.7m is 8% ahead of FY22, with gross profit at £267.2m showing the same progress. Adjusted EBITDA grew by 9% and PBT by 10%, although the impact of higher tax rates was seen in the 5% increase in adjusted EPS. Cash generation was strong once again, with 108% adjusted cash conversion. Year-end cash of £134.8m is £42.3m above the year before, even after the £30.5m

Morning Note – 21 December 2023

Cyanconnode (CYAN): Smart meter breadth and depth

CyanConnode has steadily been making progress in India, where the national smart meter programme has been gathering pace. In July 2022, the company crossed the one million mark for meters connected to its RF network across nine Indian states. This is the aggregate RF device number in India connected since 2014 and represents market share of 22%. The latest update from the company states an order book of 2.6m RF nodes for India. Performance of smart meters is a critical aspect of the Indian progr

CyanConnode (CYAN LN) - Large Letter of Award for Omnimesh Cellular Modules

CyanConnode has received a large Letter of Award (LOA) for Omnimesh Cellular Modules (CNICs) from a Thai customer.

BATM+ (BVC, House Stock at 19p) - Cyber, a quantum perspective - Cyber, a quantum perspective

Hybridan Small Cap Feast - 18 April 24

18th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radical Limited for

CyanConnode (CYAN LN) - H1 FY24: On track

CyanConnode’s H1 results position the company to meet our full year forecasts. The company does not need to grow revenue yoy in H2 in order to meet full year estimates. The Indian smart metering programme appears on track, with 98m smart meters already awarded to prime bidders and these orders should soon filter down to competitively well positioned subcontractors such as CyanConnode. These market drivers position the company well to grow revenue 39% in FY24 and 111% in FY25 and for a £1.9m of o

Filtronic - H1/24 Riding the EM-waves across land, sea and space

Filtronic has reported results in-line with management expectations for H1/24, and now expects to perform ahead of our forecasts for FY24E and FY25E in terms of revenue and profit. We are raising our revenue forecasts for FY24E and FY25E by 14.6% and 6.2% respectively, and our EBITDA forecasts by 85.2% and 28.0% respectively. The increase in expectation is driven by a strong recent acceleration in order flow, including a £7.8m order announced today. In this report we present a detailed review of

CyanConnode (CYAN LN) - FY23 results: Solid outlook

Revenue grew 23% in FY23 with limited contribution from Indian RDSS contracts

CyanConnode - One Million Module Order

CyanConnode has announced a million Ominmesh module order with Montecarlo for deployment for a new end utility in the state of Maharashtra, India. Installation is due to commence in Q4 FY24 and spread over 27 months before moving into a 93 month support and maintenance contract. With more than 220m meters out of 250m now sanctioned for tender, the number of subcontractor awards is expected to pick up pace. We have upgraded the number of module deliveries in FY25 and using an assumed market share

Filtronic - Expecting 10% pa compound revenue growth to FY24

As revealed in last week’s interim update, strong demand continued through 1H23 and into 2H23, fuelled by demand for backhaul modules in the ongoing 5G rollout, newly won defence contracts and a post-COVID recovery in critical coms. This led to solid +5% yoy growth in 1H revenue and a current record order book of £17m – a full year’s worth of business for the group. The update also revealed that shortages and the resulting price hikes on specific components led to FTC delaying some 2H23 producti