Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Nasstar. We currently have 50 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 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 WJA
Research Tree provides access to ongoing research coverage, media content and regulatory news on Nasstar. We currently have 50 research reports from 4 professional analysts.
|23Oct19 07:00||RNS||Directorate Change|
|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|
Sopheon’s trading update confirms that some of its customers are delaying decisions on contracts because of uncertainty prevailing in their own markets and businesses. At the time of the interim results, Sopheon’s management expected a return to a stronger second half weighting for the full year numbers. That is still the case and the Group continues to highlight the strength of the new business pipeline and a higher proportion of SaaS (Software as a Service) opportunities. Nevertheless, the anticipated signings of a number of opportunities have now slipped into 2020. With revenue visibility currently at $28 million, we conservatively move our current year revenue estimate down 13% to $29 million with a knock-on effect on EBITDA (down 29%). We also assume that buying cycles remain extended during FY 2020E and therefore take a prudent view on our numbers for that year as well with revenue and Adj. EBITDA estimates reducing by 10% and 40% respectively.
Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.
Companies: ABBY AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CDM CSRT TIDE CYAN DTG DEMG ELM EMR FPO FDEV GTLY GENL GHH GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KAPE KEYS KWS KCT KGH LAM LIT LOK MACF MANO MOD OXIG PCA PANR APP ESRE PHC PMO RBW RMM RBGP REDD RSW RNO ROR SUS SCPA SEN SHG SOLG SOM SUMO TM17 INCE TWD TRAK TRI VNET VTC ZOO ZTF
The Character Group plc* (CCT.L, 360p/£80.2m) | Blackbird plc* (BIRD.L, 15p/£42.8m) |Gfinity plc* (GFIN.L, 3.90p/£18.5m)
Companies: CCT BIRD GFIN
Bigblu’s trading statement confirmed an H2 performance in line with expectations. Actions to cleanse the customer base should yield operational benefits over time and the above consensus year-end net debt figure (£14m vs £9m) primarily reflected a Brexit-driven inventory build that should reverse in the next few months. Bigblu remains confident in FY20 consensus (see below), which implies an acceleration in revenue growth.
Companies: Bigblu Broadband
PTY is a brand leader in specialist consulting and strategic recruitment linked to data services. As a leading player in its field, the company is now seizing the opportunity to grow profits by lifting its high-value data service activities as a share of the mix. Recent H1 results reflected the significant transition that PTY is going through, while also heralding better numbers further down the line as the mix moves towards higher value services (also helped by success in removing a net £1.2m costs). Complementary activities directly linked to the core data focus are being developed. So far in this process, the company has seen a bigger reorganisation programme than originally anticipated – but has also highlighted the extra potential that this is generating. The company’s target market of data services is estimated at $10bn-plus and growing rapidly, while early signs from PTY’s change programme indicate the potential for meaningful client acquisition, with new clients such as Compass reflecting the opportunity for the business to scale up substantially. The recent announcement of Heads of Terms reached with a partner, Integumen plc, in delivering intelligent data management systems, is potentially a major step forward (to be finalised by 18/12).
Companies: Parity Group
Prelims reveal continued progress, particularly within Vicon, where sales grew an impressive 16% y/y, in turn driven by success within both new and existing verticals and so consistent with strategic objectives. Relative to forecasts, sales of £35.4m (+12% y/y) are in line and so too is adj. PBT of £5.5m, following continued investment and also IFRS 15 adoption. We leave forecasts essentially unchanged, believing the drivers for both divisions remain firmly intact and indeed reaffirmed, following an excellent FY’19, particularly in Engineering and ‘Adjacent Verticals’ within Vicon. On valuation, we continue to apply a SOTP methodology, reflecting both Vicon’s industry leading position and cash generative qualities and further, Yotta’s growing ARR in our fair value calculation. This arrives at 108p, implying some 20% upside.
Companies: Oxford Metrics
CentralNic has announced the acquisition of Team Internet for a total consideration of $48m. The acquisition will be financed in part by a further €40m bond issue under identical terms to the €50m issue announced on 23 May 2019. Team Internet operates a ‘domain monetisation’ platform, allowing domain name owners to monetise dormant domains to generate recurring income to offset renewal fees and earn a profit. This provides a complimentary service to existing CNIC services: clients currently pay CentralNic subscription fees to register and renew domain names. Team Internet had revenues of $66.7m in the 12 months to June 2019, with EBITDA of $10.6m. We expect this transaction to have an immaterial impact to 2019E due to timing and be 43.8% accretive to 2020E earnings. Post completion, we estimate net debt:EBITDA will be 2.1x in 2020E falling to 1.6x in 2021E.
Companies: Centralnic Group
We continue to take a selective stance on stocks within the small cap Technology space. The sector’s equity performance was lacklustre over 2019, rising 4% and keeping pace with the All-Share index (relative to multi-year periods of outperformance) as investors took a cautious stance on geopolitical and macro risk. We believe cautious sentiment is likely to dominate trade during the first half of 2020 and maintain our preference for consumeroriented players, consistent with our Arden Thematic Technology framework. Our top picks for 2020 are CDM, EVRH*, SUMO and VNET.
Companies: CALL CDM FDEV KWS SUMO TM17
Access Intelligence has announced the acquisition of Pulsar, a social media intelligence SaaS platform, for an all share consideration of £4.5m. The company has simultaneously announced a placing of £3.3m at 52p, to fund working capital, exceptional integration costs, and loan note repayments. The acquisition of Pulsar represents a highly complementary addition to the existing Vuelio platform, delivering a significantly more advanced social media platform, with sophisticated analytics and granular insight, as well as providing the technical groundwork to extend this functionality across the platform through advanced AI and machine learning capabilities. Through enhancing the product functionality of the platform, we believe Vuelio will gain a significant competitive advantage, providing it with greater weight to compete against the PR incumbents, as well as the pure play social media vendors.
Companies: Access Intelligence
The recent run-up in semiconductor stocks hit a speed bump Tuesday afternoon that could turn into much more. Texas Instruments gave a forecast that was much worse than expected in a Tuesday earnings report, raising questions over whether the cycle is anywhere near the trough as was widely expected.
Companies: ENET TRAK BGO BOKU CAPX CML EQLS IQE SEE TCM TRCS QTX XPP FIN NETW
Interims are in line with the October trading update and unchanged forecasts, with revenue growth +5% to £4.4m, and £5.2m gross cash. The reduction in opex continues to improve profitability, delivering a 1H operating profit for the first time since September 2013, even as contract wins continue from new and existing customers and the customer profile reiterates the quality of the software. Eighteen months after the arrival of CEO Klaas van der Leest, the improved performance has clearly become a trend, and the group’s confidence is expressed in targeted investment to accommodate channel sales and co-ordinate centralised R&D to a clear road map. The horizon for Intercede brightened dramatically at prelims in June when the two-year recovery plan was delivered in a year – now the sun appears to be coming up. 80p target reiterated.
Companies: Intercede Group
With FY19 in line with its targets, Idox is ready to continue the process of shifting to a recurring or SaaS revenue model over the coming years. Today’s trading update points to end Oct run-rate ARR of £38.9m, up 16% organic yoy, with a contracted order book of £12.1m up 29% underpinning the outlook for continued growth. We expect the shift to a cloud-first, SaaS revenue model will both accelerate growth and reduce costs. This makes the forward FCF yield of some 7% noteworthy.
Strong organic revenue growth in H120 was boosted by several multi-year fraud licences and the contribution from the VIX Verify and IDology acquisitions. During H1, GB Group (GBG) made good progress with its strategy to expand internationally and enhance its product functionality and datasets. Management is confident of meeting consensus expectations for FY20; while our forecasts are unchanged at the operating profit level, a higher effective tax rate reduces our normalised EPS forecasts by c 3% in FY20–22e.
Companies: GB Group