Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Nasstar. We currently have 49 research reports from 4 professional analysts.
Altitude Group (ALT): Corp Interims: building the base Altitude has delivered interims | Nasstar (NASA): Corp Interims: efficiencies delivered | President Energy (PPC): Corp Interim results | Tri-Star Resources (TSTR): Corp Interim results 2019
Companies: ALT NASA PPC TSTR
Interims reveal revenue growth of 2% leading to £3.0m EBITDA (1H18: £3.0m), representing 47% and 48% of full-year expectations respectively. Net cash improved to £2.4m (FY18: £1.5m), as NASA completes the series of initiatives in the Nasstar 10-19 improvement programme, with the target expansion to 23% post IFRS 15 & 16 EBITDA margin exceeded in the seasonally stronger first half (23.6%), and expected on a full-year basis (23%). With 90% recurring revenue, monthly recurring revenue of £1,988k (1H18: £1,914k, FY18: £1,980k) and work in progress for ‘on-boarding’ new customers with additional monthly recurring revenue of up to £150k, the FY exit MRR should show at least 7% FY growth (1H: 3.9%). The long-term visibility of the model lends to reliability and stability, and we look forward to hearing of the development of the next phase of the group’s strategy to drive further profitable cash generative revenue organically or through acquisition. Target 15p reiterated.
ANGLE (AGL): Corp FY 2019 results: reiterating FDA submission in Q4 | dotDigital (DOTD): Corp Joining the dots – an industry update | Nasstar (NASA): Corp Positive trading update in line with expectations | 4imprint (FOUR): Corp Increased marketing supporting strong growth
Companies: FOUR DOTD NASA AGL
Allergy Therapeutics (AGY): Corp Regulatory and trading update | ClearStar (CLSU): Corp Financial services client expands contract again | Europa Oil & Gas (EOG): Corp Wressle appeal date set | Lok'nStore (LOK): Corp Exciting pipeline of new landmark stores | Nasstar (NASA): Corp Prelims – showing the sector how to do it | Proactis (PHD): Corp Interims and strategic update | SimiGon (SIM): Corp FY 2018 shows recovery but SaaS transition continues
Companies: AGY 9537 EOG LOK NASA PHD SIM
Nasstar has delivered performance in line with the February trading update, indicating revenue of £25.7m pleasantly ahead of expectations (£25.0m) and all other metrics in line. The initiatives for efficiencies and automation included within the Nasstar 10-19 three year plan have led to demonstrably positive results two years in, with the £3.1m contract win with a top 50 UK Law Firm for a three-year contract for 850 users. The margin improvement measures continue to bear fruit, on track for 23% for FY20. With systems and processes, management and resources all reviewed for efficiency and growth, the group has proved the strength in EBITDA and underlying cash generation, leaving an ungeared balance sheet primed to deliver profitable growth in recurring revenue, and through acquisition. Target price 15p reiterated.
Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. SDX Energy plc—a North Africa focused oil and gas company, announces its intention to complete a Canadian plan of arrangement under section 192 of the Canada Business Corporations Act and will have shares de-listed from the TSX-V and admitted to trading on AIM. Expected 28 May 2019, anticipated market cap of £76m Renold plc—a leading international supplier of industrial chains and related power transmission products, announced that it will cancel the listing of the Company from the premium segment and apply for admission on AIM. Expected 06 June 2019. Distribution Finance Capital Holdings plc — specialist lender which builds relationships with manufacturers and then provides working capital solutions up and down their supply chains to drive their growth is looking to join AIM. No raise, secondary offering of £19.8m at 90p, expected market cap of £95.98m. Expected 09 May 2019. Alumasc Group plc, the premium building products, systems and solutions group, has announced its intention to move from the Premium Segment of the main market to AIM. Expected 25 June 2019
Companies: RBD EUA AVAP MNZS MIND NASA MRL LOK EDR
Kingswood Holdings (KWG): Corp Beginning to deliver what was promised | Lok'nStore (LOK): Corp Focusing on the core, strengthening the balance sheet | Nasstar (NASA): Corp Positive FY18 trading update
Companies: LOK NASA KWG
CyanConnode (CYAN): Corp More success in India | Minds + Machines (MMX): Corp .luxe progress update | Nasstar (NASA): Corp Interims | President Energy (PPC): Corp Puesto Flores development drilling kicks off
Companies: MMX NASA PPC CYAN
Jadestone Energy (JSE.TO)—an independent oil and gas production and development company focused on the Asia-Pacific region. Pro-forma production of 13.9 mboe/d, 2P reserves of 45.3 MMboe, and a 2P NPV10 of US$563.7 million . Offer TBA. Current mkt cap C$135m. Due early August. CentralNic-Schedule 1 from the business operating in proprietary retail platforms selling domain names and associated web presence services including hosting and email on a subscription basis, has acquired KeyDrive S.A which constitutes a RTO. Raising £24m at 52p, combined market cap of £88.7m Trackwise—established business that manufactures specialist products using printed circuit technology. £5.5m primary and £1.45m sell down at 105p. Mkt Cap £15.5m. Due 31 July Ovoca Gold (to be renamed Ovoca Bio PLC) - RTO of IVIX, a Russian company developing a drug candidate for the treatment of female sexual dysfunctions. No monies to be raised, market cap of £8.5m, due 30 July Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa
Companies: NASA FOXT CLG ARIX THR MSMN RMP DKL GAN PHC
In a year clean free of acquisitions, EBITDA of £5.6m (£5.5mE) was delivered from revenue of £24.5m (£25.0mE), in line with the January trading update. Margin expansion to 23% (vs 22%E) demonstrated the targeted and successful continuing delivery of the Nasstar 10-19 initiative, aiming for 25% EBITDA margin run rate by December 2019, accompanied by revenue growth. Positive consequences include the very strong free cash flow of £4.1m (vs £3.1mE), in a year absent of acquisitions, highlighting the strongly cash generative model. Forecasts indicate tweaked FY18 forecasts (revenue -£0.5m; EBITDA unchanged) while the board has the confidence to increase both discretionary capex and the dividend, reiterating the strength in growing revenue (88% recurring), expanding margins and strong underlying cash generation. Given the business strength and board confidence, we lift our target to 15p (13p), rolling out FY19 forecasts that highlight a 6.8% free cash flow yield at the current share price.
Independent Oil & Gas (IOG): Corp Building a head of steam | Nasstar (NASA): Corp Demonstrating the underlying strength
Companies: Independent Oil & Gas Nasstar
Hydrominer GmbH, An Austrian cryptocurrency miner, is considering an initial public offering (IPO) on the London Stock Exchange AIM during 2018 according to an article on Bloomberg. Block Energy—a NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Offer raising £30m at 165p with market cap of £100m . Due 9 February.
Companies: HER IME EZH ANP NASA WAND FIPP FISH DPP HYR
Netcall* (NET): Strong trading update (CORP) | Sopheon* (SPE): Another strong trading update (CORP) | Nasstar* (NASA): positive trading update (CORP) | Utilitywise* (UTW): Temporary suspension of trading (CORP) | Altitude* (ALT): Positive progress (CORP)
Companies: NET SPE NASA UTW ALT
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This quarter we use finnCap’s Slide Rule to provide both top-down and bottom-up analysis of the UK’s Technology and Telecoms sectors. Our findings are very reassuring: the Tech sector scores the best (across all sectors) when considering Growth and Quality – Taptica*, Frontier Developments* and dotDigital* in particular stand out on these metrics. Given these attractive characteristics and growth prospects, the Tech sector is unsurprisingly one of the most expensive – currently trading at 17.2x FY1 EV/EBIT and 23.8x FY1 P/E, versus 15.0x and 18.5x respectively for the wider market. Despite valuations appearing high, we believe there are value opportunities. For example, Proactis* features in finnCap’s QVGM+ portfolio (ranked 17/462) – the company offers attractive organic and inorganic growth, with earnings forecast to grow by 26% CAGR over the next two years, but despite this, only trades on 15x FY1 earnings and offers 8% FCF yield in FY2.
Companies: 7DIG ALT AMO ARTA BOTB BLTG CTP CITY D4T4 DTC DOTD ELCO ESG FDEV GBG IDEA IDOX IGP IOM KBT KCOM KWS LRM MAI MMX NASA NET PHD QTX QXT RCN 932 SEE SIM SPE SRT STR TRMR TAX TEP TPOP TRAK UNG VIP ZOO CYAN ONEV SSY ABAL
Research Tree provides access to ongoing research coverage, media content and regulatory news on Nasstar. We currently have 49 research reports from 4 professional analysts.
|30Sep19 07:00||RNS||Interim Results|
|20Aug19 14:38||RNS||Holding(s) in Company|
|14Aug19 16:35||RNS||Holding(s) in Company|
|31Jul19 07:00||RNS||Trading Statement|
|25Jun19 09:53||RNS||Holding(s) in Company|
|19Jun19 14:58||RNS||Holding(s) in Company|
|10Jun19 16:51||RNS||Result of AGM|
IQE has acquired the third-party shareholdings in its CSDC joint venture in Singapore for a nominal fee. This gives it control of the operation, which is currently loss making, enabling it to restructure the business and focus it on emerging sales opportunities in Asia for molecular beam epitaxy (MBE)-based products. Short term, the deal has a negative impact on earnings. We reduce our FY19 and FY20 EPS estimates by 8% and 5%, respectively.
Bill McDermott stood down on Friday after a decade building up SAP as the world's leading enterprise software company, handing the task of completing its transition to cloud computing to new co-CEOs Jennifer Morgan and Christian Klein. SAP announced the management overhaul, with immediate effect, after rushing out third-quarter results that showed it gaining traction in its drive to offer a more streamlined range of services and boost profitability. The company’s stock has climbed 21% this year. It’s up 75% in the past five years, topping rival Oracle, which is up 46%, and the S&P 500′s 54% gain.
Companies: EVRH TRAK CPX CALL ECK IMMO LOOP NET SEE TCM TRCS QTX VRE
CentralNic Group has a solid set of interim results for the first six months of FY2019E, it was a busy period with the group completing 3 acquisitions immediately post the period end, issuing a €50m listed bond instrument and making solid progress in delivering on its stated accelerated strategy. Revenue for the first six months is up 225% yoy, with c.6% organic growth, in line with long term trends for the group. These results are the first time the group have reported in US Dollars. The group’s main functional currency is USD and we believe this is a sensible decision and should remove some currency related risk from the forecasts. CentralNic has made significant progress in delivering on its stated strategy of supplementing organic growth with quality acquisitions, focusing on recurring revenue businesses, in attractive regions. On our new USD based forecasts, the group trades on a 2019E EV/EBITDA of 8.7x (falling to 7.0x in 2020E) and a P/E of 11.0x.
Companies: Centralnic Group
Amazon is in talks to bring the cashier-less technology that runs its Go stores to other retailers like airport shops and movie theatres, according to people familiar with the matter. The effort would help Amazon grow its retail presence, so the company can lower its reliance on online shopping, but at a faster pace and at lower cost than building its own stores
Companies: BGO BIDS BOKU CDM EQLS FDEV GFIN KWS SUMO TM17 TECH
Seeing Machines has today announced that it is collaborating with Alaska Airlines on advanced gaze tracking technology to understand how pilots scan and monitor instruments during complex manoeuvres and instrument procedures. The partnership has developed a proof-of-concept for Seeing Machines' Crew Training System in an Alaska Airlines' Boeing 737 Full Flight Simulator environment. The collaboration aims to shape how Seeing Machines' non-intrusive Crew Training System can provide Alaska Airlines pilots and flight instructors with objective, evidence-based data to provide unique insights into instrument scanning behaviour resulting in enhanced situational awareness and improved training outcomes.
Companies: Seeing Machines
Castleton’s prelims report performance in line with the trading update: EBITDA of £6.3m (vs £6.3mE) from revenue of £26.4m (vs £26.5mE), with operating cash conversion of 97%, and free cash flow of £4.8m. With the maiden dividend reaffirming the board’s confidence in cash flow and net debt approaching breakeven, the balance sheet retains capacity for acquisitions to complement 7.3% organic growth achieved in FY19, and expected to persist into FY20 and FY21. EBITDA margin expansion from 24% (FY19) to 26.5% (FY21) is expected to derive from continuing improvement in cross sales, and the integration of the now unified Software and Managed Services divisions. With operating fundamentals consistently positive and improving, we lift our target price to 140p (125p), representing a 16.4x EV/EBITDA multiple and 4.5% target free cash flow yield.
Companies: Castleton Technology
A stronger than expected H2 means FY Mar 2019 earnings beat forecasts already upgraded with the post-YE trading update in April. We expect robust demand for data solutions to continue and we reiterate FY 2020 growth expectations. Note that IFRS15 adoption brought £1.7m revenue and £1.0m profit from FY 2018 (restated) into FY 2019, enhancing the growth rate. The 57% EPS growth was further skewed by a very low tax-rate in FY 2019. Thus revenue and earnings appear to fluctuate sharply. Underlying that, however, D4T4 is steadily growing revenue and maintaining margins, while simultaneously improving quality and reliability of earnings through term licences, PaaS and recurring revenue while also investing in US expansion. Overall, this is another year of excellent performance and we raise our TP to 310p in line with the sector.
Companies: D4T4 Solutions
In January, we provided a list of 11 stocks for 2019 that we believed would perform strongly with attractive catalysts that could lead to material outperformance. In this Quarterly Research Outlook, we revisit these views, analysing what has happened and how the remaining six months of the year could play out.
Companies: AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE CYAN DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR HYR IBPO IOG INDI JHD JOG KAPE KEYS KCT KGH LAM LIT LOK MACF MANO PCA PANR PXC PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG SOM TWD TRAK TSG TRI VNET VTC ZOO ZTF
Beeks Financial Cloud has announced full year results for period to 30 June 2019, with revenue up 32% to £7.35m and annualised monthly committed recurring revenue (ACMRR) also up 32% to £9.1m. Three Tier 1 financial services clients were signed during the year including a major insurance company, a global bank and a global investment management organisation. The number of institutional customers has increased to 220 from 192 in 2018, with the commencing entry level monthly average spend up 175% (to £2,200). Now beginning to establish itself within the large tier financial services market, we expect the number and scale of these relationships to be potentially transforming for Beeks. With our forecasts based on established growth trends, such potential could provide further upside to our forecasts and with the shares currently trading at 11.0x 2020E EV/EBITDA, 21x PE, PEG ratio of 0.54 (2020/21) and a prospective 0.9% yield, we remain buyers.
Companies: Beeks Financial Cloud
This morning, Concurrent Technologies, the supplier of Intel based embedded computer systems, announced a strong set interim results for the period to 30 June 2019. Revenue was up 20.3% to £9.5m as sales increased across all sectors, with Defence remaining the largest sector by revenue. Order intake has also increased, resulting in record order book levels, giving confidence in the outlook for FY19. Exports generated 90% of revenue (H1/18: 88%). Cash generation during the period was also strong, with cash in the balance sheet at period end of £10.0m (H1/18: £7.8m), c21.8% of current market cap. Given its steady growth prospects and trading on a basic PER of 15.0x (ex-one-off other income of £1m), a significant cash balance and a prospective yield of 3.9%, the shares look attractively valued.
Companies: Concurrent Technologies
Elecosoft has reported a solid set of H1 2019 results in a challenging market environment. In light of the H1 results, we have reduced our FY 2019 forecasts but maintain our FY 2020 EBIT and EPS expectations. In H1 2019, revenue grew +20% to £12.7m (+22% at constant currencies), adj. EBIT grew +17% to £2.2m, and FCF was flat at £2.1m. Operationally, ELCO has made good progress in H1 with the latest release of core solution Powerproject XV; a UK government listing on the G-Cloud 11 framework; and evidence of increased cross-selling including by the recently acquired Active Online. We continue to expect that ELCO can benefit from the growing adoption of Building Information Modelling (BIM) within the construction industry, as ELCO is already established with excellent brands and has the opportunity to increase the cross-selling of its products. In light of the limited changes to our FY 2020 EPS forecast, we maintain our TP, and look for enhanced delivery by ELCO in H2. At 76p and on FY 2020 estimates, ELCO trades at a PE of 16x and 1% dividend yield.
Microsoft unveiled the new Surface Duo, which runs on Android, at its annual hardware event on Wednesday. The folding phone features two side-by-side 5.6-inch displays that are connected by a 360-degree hinge. Microsoft said it partnered with Google to “bring the best of Android” to the device, while incorporating elements of Windows 10X, a new operating system meant for hybrid devices. It can also run two different apps at the same time. Specifically, the Surface Neo will rely on a new "Expression" of its Windows 10 operating system called Windows 10X.
Companies: KAPE EYE IMO
Oxford Metrics’ interim results show continued strong revenue growth and cash generation, leaving the group well placed to meet our full year expectations. Vicon was the star of the show in the period, with growth in traditional markets augmented by new applications such as Location Based Virtual Reality (LBVR). Yotta continues to win new clients and increase its addressable market, but sales lead times remain protracted, and we have adjusted the make-up of our forecasts to reflect this. The group outlook is encouraging with Vicon’s qualified sales pipeline 11% higher than this time last year, and the board is confident of achieving its 2021 growth targets.
Companies: Oxford Metrics
Prelims show FY19 to be in line with the April trading update, generating free cash flow (before a freehold acquisition) of £17.5m from adjusted PBT of £25.5m and revenue of £103.7m. Having cleared £100m revenue, it will take more and bigger contracts to generate organic growth of 10%, therefore the professionalisation of the sales team and addition of an enterprise focus adds capacity for larger contract delivery – with increased lead generation from new and existing customer apparent in 2H. The typical, successful, combination of organic growth (c.3%, with work in hand to improve it) and acquisitions is iomart’s bread and butter, with unfailing consistency in its participation in widespread cloud transition for business of all scales. With consistent avoidance of greater than 5% exposure to the public sector; >90% recurring revenue; measures in place to encourage stronger growth, strong margins and cash generation; and a sensible dividend policy allowing capacity for further acquisitions, we reiterate our 450p target – if the phrase hadn’t been ruined by politics, iomart would define ‘strong and stable’.
Companies: Iomart Group
Sopheon’s interim results reflect a return to a stronger second half weighting, as flagged in July’s trading update – although EBITDA is $0.5m ahead of the number in that announcement. Alongside the delays in closing some license contracts in the first half, management reiterates the strength of the new business pipeline and the supportive underlying market conditions, and notes customers apparently reverting to a year-end buying pattern. With a sharp increase in the proportion of SaaS business in the pipeline – reflective of industry procurement trends - we expect to see higher recurring revenues over time (bringing greater visibility) and enhanced lifetime customer revenue. Chairman Barry Mence comments that the future prospects for Sopheon ‘have never been brighter’ when highlighting the positive trends for the Group in the outlook statement – and we note the pipeline and the long-term value being built within the growing SaaS business.