Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Nasstar. We currently have 40 research reports from 4 professional analysts.
Independent Oil & Gas (IOG): Corp Building a head of steam | Nasstar (NASA): Corp Demonstrating the underlying strength
Companies: Independent Oil & Gas Nasstar
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.
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
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 HYR IME EZH ANP NASA WAND FIPP FISH DPP
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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 IMTK IGP IOM KBT KCOM KWS LRM MAI MMX NASA NET PHD QTX QXT RCN 932 SSY SEE SIM SPE SRT STR TAP TAX TEP TPOP TRAK UNG VIP ZOO CYAN ONEV
Castleton Technology* (CTP): Strength evident in execution (CORP) | Paragon Entertainment* (PEL): Trading update (CORP) | Ideagen* (IDEA): Interim trading update (CORP) | Horizonte Minerals* (HZM): Araguaia mine plan submitted to National Mining Agency (CORP) | Nasstar* (NASA): Contract win (CORP) | Intercede* (IGP): Contract slippage (CORP)
Companies: CTP PEL IDEA HZM NASA IGP
Clean Invest Africa—Introduction due around 14 Nov. Vehicle established to identify investment opportunities and acquisitions in renewable and clean energy projects/companies or alternative technologies that are used in a socially and environmentally responsible way that will aid the development of the African continent. City Pub Group - owner and operator of an estate of 34 premium pubs across Southern England. £30m raise. Consistent track record of strong revenue and EBITDA growth, with a three year CAGR from FY14 to FY16 of 34.9% and 44.8% respectively, and an EBITDA margin of 14.7% in FY16. Due Nov. Boku - Independent direct carrier billing company. Revenues were up 21% to US$10.2 in HYJun17. Q32017, revenues grew to $6.5m, up by 44%. The Company also saw continued growth across all of its key metrics: user numbers, total payment and a positive adjusted EBITDA for the month of September 2017. Due 20 Nov. Offer TBA. Ten Lifestyle Hldgs. Technology-enabled lifestyle and travel platform providing trusted concierge services to the world's wealthy. Net revenue increased from £20m in the year ended 31 August 2015 to £33m in the year ended 31 August 2017, a compound annual growth rate of 29%. Offer and date TBA. AfriTin Mining—Demerger from Bushveld Minerals (BMN.L). Offer TBA. Due 8 Nov. The Uis Tin project (Namibia) is considered the flagship tin asset within the portfolio, as this was once the largest open cast tine mine of its kind in the world. Expected 8 November 2017 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. Expected valuation £200m to £250m. OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected mid November.
Companies: AVAP NASA WAND TYMN LION FEVR IDEA NCYT GGP
Nasstar has delivered interims in line with unchanged expectations. Growth in monthly recurring revenue run rate (+46% year-on-year, +8% organic year to date) to £1.8m demonstrates the visibility and resulting quality of the mode, while the Nasstar 10-19 initiative has already delivered EBITDA margin improvement to already achieve our full-year margin expectation of 22% (FY16: 20.1%). Cash flow is strong, with working capital normalised, generating £1.8m free cash from £1.5m adjusted PBT, exceeding free cash generation for the whole of FY16. Management has demonstrated a tick-box delivery of investor expectations. Target 13.0p reiterated.
Independent Oil & Gas* (IOG): Pieces falling into place (CORP) | Elektron Technology* (EKT): Further strategic progress (CORP) | Elecosoft* (ELCO): A good H1 is driven by ICON and FX (CORP) | Hurricane Energy (HUR): Lancaster EPS approved (BUY) | Hurricane Energy (HUR): Lancaster EPS approved (BUY) | Hurricane Energy (HUR): Lancaster EPS approved (BUY) | Nasstar* (NASA): Growth and efficiency (CORP) | SRT Marine Systems* (SRT): Loan notes will fund satellite data project (CORP) | Trifast^ (TRI): Trading update, progress in line with expectations (BUY)
Companies: IOG EKT ELCO HUR ZOO SAV NASA SRT TRI
LoopUp—The provider of conference calls and online meetings is seeking to join AIM. 2015 revs of £9.2m and EBITDA of £1.02m | Bacanora Lithium— To list on AIM around 28 Sep as holding company for TSX listed Bacanora Minerals at £100m market cap | Aura Energy—ASX listed uranium developer (ASX:AEE) expected to join AIM 6 September | Autins Group plc - The acoustic and thermal insulation specialist now looks to join AIM late August
Companies: CTEA PEN EOG NASA THR UVEN AOR NAK EDL SRES
Nasstar* (NASA): Trading update (CORP) | Solid State* (SOLI): Initiation of coverage: Intention to double revenues in five years (CORP) | Mortice* (MORT): Further strong growth (CORP) | Petra Diamonds (PDL): Trading and guidance update (BUY) | The Mission Marketing Group* (TMMG): Positive trading update (CORP) | Connect (CNCT): In line but with a different mix (BUY) | Quixant* (QXT): Strong H1 performance underpins FY forecasts (CORP)
Companies: NASA SOLI MORT PDL TMMG CNCT QXT
Xpediator Plc—Sch 1 from the holding Company for an integrated freight management business operating in the supply chain logistics and fulfilment sector across the UK and Europe with a strong presence in Central and Eastern Europe. Offer details TBC, expected Admission early August 2017. GetBusy PLC—Sch1 from the holding Company of its subsidiary undertakings, which operates as a document management software business, headquartered in Cambridge, UK and operating across the UK, USA, Australia and New Zealand. Capital to be raised via a rights issues of £3m at 28.3p with anticipated market cap of £13.7m, Admission 4 August. Quiz—Sch 1 from the omni-channel and international own brand in the women's value fast fashion sector. Offer raising £102.7m at 161p, expected market cap £200m. Expected 28 July. Last year Quiz posted sales of £87.4m while pre-tax profits grew by 17pc to £5.7m. Arena Events Group -provider of temporary physical structures, seating, ice rinks, furniture and interiors. Raising £60m. Mkt cap £63m. Expected on the Chef’s birthday, 25th July. Altus Strategies—African focused natural resource Company. Offer TBC. Expected Early August. Harvey Nash Group— Provider of professional recruitment and offshore solutions moving to AIM from Main, 8am 28 July 2017. No capital to be raised. Mkt Cap c. £57.8m. Greencoat Renewables - Schedule 1. Targeting a portfolio of operating renewable electricity generation assets, initially investing in wind generation assets in Ireland. Offer raising €270m at €1 with expected market cap of €270m. Due 25 July 2017. I3 Energy –Schedule 1 Update. Independent oil and gas Company with assets and operations in the UK. Issue price of 55p with anticipated market cap of £14.3m, 25 July Admission. Verditek— Sch 1 update. The Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission late June. There has been no official update here for a while. Hipgnosis Songs Fund investment Company offering pure-play exposure to Songs and associated musical intellectual property rights. Offer raising £200m at 100p. The Company has decided to extend the closing date for the Placing, Offer for Subscription and Intermediaries Offer to 1 August 2017. The Company may bring forward this closing date at any time. Admission 4 August 2017
Companies: TPG NASA KAPE IXI QXT EMAN BIOM MYT GROW ASA
I3 Energy –Schedule 1. Independent oil and gas Company with assets and operations in the UK. Offer TBC, 26 May admission. | Opera Investments –Reverse Takeover of Kibo Mining’s subsidiary Kibo Gold. Raising £1.5m. Expected mkt Cap £6.5m. 23 May. | Eve Sleep—Schedule 1 from the e-commerce focused, direct to consumer European sleep brand. Raising £35m at £1.01. Expected mkt cap £140m. Expected 18 May 2017. | Velocity Composites—Schedule 1. Manufactures advanced carbon fibre and ancillary material kits (predominantly carbon fibre) for use in the production of aircraft. 18 May 2017 admission expected. Raising £14.4m at 85p. Expected mkt cap £30.4m. | Verditek—Schedule 1 update. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Issue price 10p. Admission in late May. | AEW UK Long Lease REIT—Intention to Float. Up to £150m raise. Admission early June. UK specialist and alternative property | Alfa Financial Software –Intention to float. Mission-critical software platform purpose-built for asset finance enterprises. Vendor sale of 25% plus. FYDec16 rev £73.3m (CAGR of 24% from 2012). Adjusted EBIT £32.8m. | Kuwait Energy— $150m raise plus vendor offer. Admission due June. 2p reserves 810.0 mmboe | ADES International— Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa, seeking raise up to $170m plus vendor sale under a Standard Listing of the Main Market. Admission due May 2017. | Tufton Oceanic Assets– Extended to 9 May on specialist funds segment of Main Market to enable further due diligence. | PRS REIT—Private rental sector REIT raising up to £250m. Admission due 31 May.
Companies: LND NASA ATQT CNS INL SOU ALT PURE WRES REDS
Venture Capital Trusts (VCTs) raised £542m in the 2016-17 tax year, which is the second-highest amount in a single year. Specialist AIM VCTs had particularly successful fundraising efforts, with some closing their offers well before the end of the tax year, so this is good news for AIM companies seeking investment. Unicorn AIM VCT had already raised the £15m it was seeking by early February. The cash raised was 18% higher than the £458m raised in the 2015-16 tax year. Restrictions on pension investment have led investors to seek other ways to invest for the longer term. The highest amount raised in one tax year was in 2005-06, when £779m was raised but the income tax relief rate was 40%, rather than 30% as it is currently. There are £3.9bn of VCT assets under management. There are other new sources of finance for smaller companies. Downing Strategic Micro-Cap Investment Trust raised £54.5m after expenses. This is not a VCT but it is another potential investor for small companies with a market value of less than £150m. Many of these will be too large to be qualifying investments for VCTs. Downing is likely to take significant stakes because it is aiming to have a portfolio of between 12 and 18 investments.
Companies: NASA RFX MTFB EPWN FISH REDS
Research Tree provides access to ongoing research coverage, media content and regulatory news on Nasstar. We currently have 40 research reports from 4 professional analysts.
|07Jun18 12:10||RNS||Result of AGM|
|08May18 10:15||RNS||Posting of Annual Report and Notice of AGM|
|04May18 08:24||RNS||Holding(s) in Company|
|03May18 14:02||RNS||Holding(s) in Company|
|02May18 17:45||RNS||Director Dealing|
|01May18 07:00||RNS||Results for the year to 31 December 2017|
|21Mar18 07:00||RNS||Notice of Results|
R1 has reported FY results for the year to March to 2018, and they are in line with the April 19th trading statement, although cash at $27m was $1m better, as the working capital build in H1 more than unwound. FCF yield of 17% for 2019E and 20% for 2020E. Retain Buy Pt 770p
Hardman & Co recently welcomed Milan Radia to our roster of established, industry expert analysts. Milan has 25 years of equity market experience at major investment banks and in asset management, and has worked on many high-profile successful IPOs. In 2017, he was ranked the No.1 earnings estimator in the UK for his sector in the Thomson Starmine Awards. Milan has also been techMARK Analyst of the Year and achieved top three Institutional Investor sector rankings for his coverage of the software and telecoms sectors. In our lead article this month he gives an insight into his thinking on some key themes in the sector.
Companies: OPM ABZA AVO AGY APH ARBB AVCT BNO BUR CMH CLIG COS DNL EVG GTLY GDR INL KOOV MCL MUR NSF OXB NIPT PHP RE/ REDX SCLP SCE SIXH TRX TON VAL
Eckoh’s full year results to March’19 are in-line, as flagged at the May trading update. US Secure Payments continues to lead the way, driving 32% underlying growth in the US division. The UK is returning to form after a weak H1’18, with strong momentum going into the current year. We are making small underlying upgrades to our FY’19 forecasts, however the picture is complicated by the non-cash impact of adopting IFRS 15. Adoption of the new standards is expected to result in a delay in revenue recognition, meaning a material reduction in P&L profitability in the near term. We continue to be excited about the group’s growth prospects, which combined with the high level of recurring revenue makes the shares fundamentally attractive.
When we last published the FTSE 100 was reaching an all-time high of 7877. We have subsequently seen increased volatility and some of the previous progress made by markets surrendered. The escalation of the potential trade war between the US and China and the imposition of more tariffs has unnerved markets. At home, we have continued to see M&A activity. While company results have largely been as anticipated, the outlook in some sectors looks less promising. In Share News & Views, we comment on Aortech*, ECSC*, Location Sciences*, Norcros, NWF, Tricorn* and Warpaint London*.
Companies: AOR APC BMS CRPR DMTR ECSC ESC EUSP FDM GETB LSAI SNX SPRP TCN W7L
iomart has delivered prelims in line with the trading update and unchanged expectations for the year to March 2018. The predictability of the high level of recurring revenue (and nature of the difficulty in growing, or even losing, such revenues quickly) means consensus is tight and delivery is at consensus: revenue of £97.7m was within 1% of consensus as it stood before the trading update; EBITDA delivery of £39.8m is also within 1%. iomart has, typically, added to underlying organic growth (7% in FY18; FY17: c.7%) with three acquisitions in the year, albeit none in the second half. The balance sheet remains strong and the group has an increased £80m debt facility, offering continuing strategic choices including further acquisitions. The board has made the decision to accelerate dividend growth to 20% (vs 15%E) to hit the 40% payout ratio early, with the promise to reconsider the parameters of the policy. iomart continues to show private equity and public peers how to do it: target lifted to 450p, equivalent to 10.5x FY20 EV/EBITDA and still delivering a 5.2% free cash flow yield, ahead of the market.
Companies: Iomart Group
We are most encouraged that in recent months ECSC has secured three new long-term Managed Services contracts, which will contribute at least £0.9m to the order book. The news that 2018 trading to date is in line with our forecasts at the time of the final results in March is also positive, following the board changes in April. Consequently, we have reinstated our 2018 forecasts (which show ECSC will be EBITDA positive in Q4 and net cash will be c.£1m at yearend) and will resume full coverage with the interim results in September 2018.
Companies: ECSC Group
Confident and positive prelims describe a growing, profitable, cash generative business, with a balance sheet able to support further investment and enable board consideration of a maiden dividend (FY19E). With the first sales of the integrated solution sold, implemented, and live this month, recurring revenue continues to grow (+7% to £14.0m) and new sales increase. 77% of FY18 sales were into the existing customer base, and 60% of clients still take one product, showing the evident cross sales opportunity: interest in the enhanced platform, from new and existing customers in the UK and from the strengthened Australian base, continues to grow. Castleton has its operational, financial, and technological show in order, and is now able to reap the benefits. We tweak EBITDA +£0.3m (5%) with the exercise of the option to acquire the IP for the platform in Brixx, and illustrate board confidence in the future with a 182% increase in capex, accompanied by the introduction of a maiden dividend, forecasting breakthrough to net cash for FY20. With such positive signals and the rolling forward of our forecasts to FY20 we upgrade our target price from 90p to 125p, currently generating very strong free cash flow yield highlighting the maturing nature of the business.
Companies: Castleton Technology
We have refreshed our quality style screen for the second time and report on style performance since the last refresh in October. Performance has been very strong, outperforming the small-cap index by c.1600bps (weighted basis) and c.1000bps (unweighted). There has been volatility with the market and this style has yet to be tested in a concerted down market, but in a flat or rising market quality appears to be a successful investment style in small-caps. We have highlighted 11 focus stocks in the new screen and will report back again on performance when we next refresh the screen in about 5-6 months’ time.
Companies: LIO GHT AMO CHH ZYT DOTD GTLY RIV FCRM TAM PAM
Following the news in the recent trading update that the location data verification product, Verify, was performing ahead of schedule Location Sciences (LS) has raised £0.41m primarily to invest in and market a product that is scalable across the world. LS is well-positioned to take advantage of location data becoming a more mainstream marketing tool. With no changes to our forecasts (we have not adjusted for the increased number of shares in issue at this stage), we retain our 0.05p DCF derived target price and Buy rating.
Companies: Location Sciences
dotDigital has delivered interims to December in line with the January trading update and unchanged EBITDA/adj PBT expectations. The three strategic pillars for growth continue to prove highly effective, delivering 25% revenue growth including 17% organic revenue growth, complemented this year by the Comapi acquisition in November. Geographic expansion, increasing numbers of strong partnerships, and product innovation continue to drive the strong growth as the group excels at current operations and demonstrates the strength of its path to become an omni-channel dataled customer behaviour and analysis platform. Target 115p reiterated.
Companies: Dotdigital Group
Interim figures on 24 April were in line with the February trading update. However, management signalled a weaker outlook for H2 than the H1 update suggested due to a combination of factors including adverse currency movement, customer losses, weak order intake in early H2 and supplier revenue deferral. We have downgraded our FY 2018 revenue and EBITDA estimates by 9% and 21%, and our corresponding FY 2019 estimates by 11% and 18%. Investor sentiment has been badly dented by the rapid reversal in outlook and given rise to concerns over customer retention and competitive positioning. However, there are enough indications that this weakness is temporal and not structural, and the current valuation suggests significant upside if positive momentum is restored in Q4. We set a new target price of 151p. Buy.
EU Supply has issued a positive AGM statement. Revenues in the first four months of 2018 were up 28% year-on-year and sales growth should continue. The size of the group’s order book and strong pipeline of work are also encouraging. Mandatory provisions in the 2014 EU Directives coming into force in November this year have helped accelerate this growth. We have made no changes to our updated forecasts published last week following the placing. We retain our Buy rating and 25p target price.
Companies: EU Supply
We believe Crimson Tide’s high-visibility model and long-term growth prospects in healthcare and IoT are not fully appreciated by the market. The group has established a track record of sustaining both double-digit growth and a peer-leading EBITDA margin from sales of its proven and uniquely positioned enterprise mobility management platform, mpro5. Post 18 months of investment, we believe the business is now poised for accelerated growth into verticals beyond field worker management and new geographies. Our analysis indicates the opportunity is significant, with potential to tap into a US$47bn addressable market. We initiate coverage with a Buy rating and a PT of 4.4p, anticipating a re-rating as evidence of accelerating commercial traction emerges.
Companies: Crimson Tide
This morning’s trading update reaffirms that trading in FY2017 was in line with market expectations as was net cash of £1.6m at end of December 2017. At this stage, we make no changes to any of our forecasts. In our view, the business has stabilised and management is now focused on delivering the uplift in sales required to deliver positive EBITDA trading (on a monthly basis) in FY2018. With greater confidence in our future cash flow projections we upgrade our DCF-derived target price to 300p (from 225p) and maintain our Buy rating.
Companies: ECSC Group
Two former AIM companies could be in the FTSE 100 index in the near future following the successful bids by Melrose Industries for GKN and GVC for Ladbrokes Coral. Melrose has been on the brink of the FTSE 100 for a while and if a constituent company of the FTSE 100 is acquired than it can be replaced by the acquirer when it is eligible. Melrose is already on the reserve list for inclusion in the FTSE 100, following the March 2018 quarterly review.
Companies: PTSG JDG TRCS SRB TAP KETL