This Week's AIM Highlights 18th November 2022

Morning Note – 14 November 2022

SRT Marine Systems - Systems revenue and Transceiver growth sees 1H profit

1H23 saw a welcome return of significant Systems revenue alongside strong yoy growth for the Transceivers business. In the past two years, the pandemic slowed installation of existing Systems contracts and paused the processing of new deals, leaving SRT to rely on c.£8m pa of Transceivers sales. With lockdown restrictions easing around the world this year, Systems deployment has accelerated, and meeting revenue milestones helped group 1H revenue jump >300% to £18.8m, generating Adj. PBT of £2.2m

Morning Note – 9 November 2022

Hybridan Small Cap Feast 03/10/22

Joiners: No leavers today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Milton Capital Plc, a new type of special purpose acquisition company, intends to join the Standard Segment of the Main Market. The directors intend to search initially for acquisition opportunities in the technology sector. The focus for the prospective acquisition is megatrends. This includes sectors such as space, artificial intelligence, machine learning and blockchain technology. Ticker upon admission

SRT Marine: Revenue realised as milestones passed

SRT Marine has today issued a trading update for the six months ending 30 September 2022. H1 23 revenue of £18.8m was up considerably (300%) on the £4.7m reported at H1 22. The principal driver of this growth is the fact that the Systems division passed a number of key milestones, generating revenue of c.£13.6m, up from £0.5m the year before. Management estimates that a minimum profit before tax of £1.5m was generated in the period, versus a loss of £3.1m at H1 22. The statement confirms ma

Morning Note – 3 October 2022

SRT Marine Systems - FY23 set for return of major Systems revenue and earnings

FY22 results confirm that the year to March was in line with expectations. Systems deployments were delayed by lockdowns so virtually all the sales were from the Transceivers business, itself struggling to meet growing demand while constrained by component shortages. Meanwhile, SRT continued to invest in its product portfolio and capability to deliver multiple large Systems projects around the world, resulting in a significant loss for the year. However, that investment has substantially improve

Morning Note – 5 April 2022

Morning Note – 11 March 2022

SRT Marine Systems - Reinforcing success with working capital boost

The global provider of integrated maritime surveillance systems and digital navigation safety transceivers is raising a gross £4.9m from an equity placing, to assist with the growing working capital requirements of its highly successful Systems division and to enable increased production of its digital navigation transceivers. In January, SRT announced a contract to deliver the first stage of a £40m new coast guard MDA system, with three more large new contracts expected imminently, amounting to

Morning Note – 21 February 2022

SRT Marine Systems - Multiple systems contracts give visibility and allow guidance

Following the recent announcement of a new £40m contract for the supply of a coastguard maritime surveillance system, SRT now has £70m of System contracts underway, with an expected c.£600m pipeline in various stages of negotiation, as well as a solid Transceivers business showing long-term revenue growth. This improved visibility has given management confidence to provide initial near-term guidance, with the expectation of significant upgrades as the pipeline converts and the market develops. T

Visibility and outlook improve

SRT Marine Systems PLC’s (SRT) management has used the dominant position that the company has built in Automatic Identification System (AIS) transceivers to move into the growing global market for Maritime Domain Awareness (MDA) systems. Although the Transceivers division continued to grow sales, in the Systems division Covid caused delays to winning and, to an extent, delivering contracts. However, as we move into 2022 SRT is well placed, with its recent £40m contract win suggesting that contra

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

MTI Wireless Edge Q3 Update

Good Q3 update from MTI Wireless Edge Ltd (MWE.L). Each division (MTI Summit, Antenna and Mottech) demonstrated revenue growth and remained profitable. Overall, 9m revenue +8% to $34.8m and EBITDA +14% to $4.6m. Net cash remains a healthy $5.2m. Q4 has started well with two contract wins already announced for the Antenna division in India and Israel worth $1.2m in total. India represents a major opportunity for MTI’s 5G backhaul solution given the number of Eband towers that will be required. Th

SHORE CAPITAL - MTI Wireless Edge+ (MWE) - House Stock at 51p

SHORE CAPITAL - MTI Wireless Edge+ (MWE) - House Stock at 54p - Another good defence contract win

Hybridan Small Cap Feast 21/11/2022

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** AT85 Global Mid-Market Infrastructure Income plc, a UK investment trust targeting an innovative, adjacent-space strategy in some of the most sought-after sectors in infrastructure, is proposing to undertake an IPO on the Premium Segment of the Main Market. The Company has access to an initial portfolio of assets of £98.5m and a total pipeline (including the Initial Assets) of £539.8m. Targe

Focusrite - Uptempo

Focusrite’s revenue has been driven by acquisitions against a period of tough comparatives for the core brands. Current trading looks more encouraging for the majority of the brands, which is leading to gross margin improvements and a better outlook for EBITDA margin. We upgrade EBITDA forecasts for FY20e and FY21e by c 7%, but a higher tax rate in FY21 limits EPS upgrades in that year. For FY20e, an EV/EBITDA of 15.4x and a P/E of 24.9x are above long-term averages.

Morning Note – 7 June 2022

Hybridan Small Cap Feast 28/04/22

Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen? Altona Rare Earths, the AQSE listed mining exploration company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company's Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE

Allenby Capital TMT Update

Shore Capital Income Monitor - Q3 dividends £31.4bn (+1%). Buy backs make headlines.