Morning Note – 20 May 2024

Morning Note – 21 May 2024

Intercede - Impressive capital markets day reiterates referenceability

Yesterday’s well attended CMD demonstrated Intercede’s position as a recognised global leader in business-critical authentication software for employee identity. Combined with an evaluation of the addressable market and Intercede’s positioning and the demonstrations of MyID CMS, MFA and PSM product capabilities through insightful case studies, the capital market day underscored the mutual benefits of the tight-knit relationships enjoyed with impressive and ambitious partners such as Guidehouse a

Intelligent Ultrasound Group - Defining the range

With the recent FY23 results, Intelligent Ultrasound stated the ‘business continues to expect revenue in 2024 to be between £14m to £17m’ and, importantly, that the company can ‘reach profitability with its current cash reserves’. In this note, we provide a scenario analysis of how Intelligent Ultrasound’s P&L statement could look if the company generated revenues of either £14m or £17m, compared to our current forecast of £15.6m. Most significantly, we believe that at the low end of the revenue

Morning Note – 22 May 2024

PROGRESSIVE: Idox: Strong growth, again

The trading update for the half year ended 30 April is confident. First-half growth in revenues was over 20% year on year. The Emapsite acquisition has performed well. Cash generation has been impressive, with H1 net debt at c.£6.6m versus £14.7m at the FY23 year-end. The M&A pipeline is very healthy too. This strong performance is in line with management’s expectations, and the group expects to deliver to plan across the remainder of the year.

Growth vadis?

Pennant International - Proposed £1.51m

Yesterday's close of play announcement from PEN heralds gross proceeds to the tune of £1.51m (assuming among other things completion of a meaningful Directors' Intended Subscription of £0.2m, priced at 25p (a 16% discount to the closing mid-market price on May 22nd). The new shares will represent c.12.5% of the enlarged share capital (including 3.7m placing shares), delivering net proceeds of c.£1.4m

Plain sailing

Hardman & Co Healthcare Index: 2023 – Capital demands dent performance

The Hardman & Co Healthcare Index (HHI) has been running since 2009. Its main function is to highlight the attractions of life sciences investments over the long term. For the second year running, apart from global economic influences affecting world markets, performance in 2023 was dented by the capital-intensive nature of the sector. The HHI fell 3.7%, to 483.8, underperforming the main London markets – FTSE 100 (+3.8%) and FTSE All-Share (3.8%) but outperforming the FTSE AIM All-Share Index (

Pebble Beach Systems - FY23 in line, PRIMA launch to accelerate recurring revenue

Broadcast playout automation solutions provider Pebble Beach has reported confident FY23 results to Dec 2023 in line with updated January trading update expectations, and has announced the much-anticipated Project Oceans will launch as PRIMA (Platform for Real-time Integrated Media Applications) in April 2024. This underpins a mid-term 80% recurring revenue ambition and expansion in addressable market. FY23 delivered +11% revenue growth to £12.4m, which benefitted from the unwind of defensive in

Pulsar Group - Getting on with it

Pulsar (formerly Access Intelligence)’s final results to November 2024 are in line with the January trading update, with more recent newsflow in the March 1Q24 trading update confirming continuing positive ARR momentum (+£1m to £62.3m). FY23 Adjusted EBITDA of £7.3m compared well with £7.0mE, with some additional amortisation of capitalised R&D leading to adjusted EBIT of £1.6m vs £1.7mE, and year-end net cash of £2.2m as expected. Free cash out flow of £2m included the effect of £9m exceptional

Morning Note – 24 May 2024

Made Tech Group PLC

Made Tech is a leading provider of digital, data, and technology services to the UK public sector. The Group was founded in 2008 by Rory MacDonald (CEO), who remains its main shareholder with 28% of the equity, and IPO’d in 2021. The Group is entirely exposed to the UK public sector and we believe this represents a large structural growth opportunity as the shift to digital services is likely to accelerate. Moreover, we believe Made Tech will continue to benefit from the transition away from UK

KRM22 - Positive focus on ARR, cautious eye on cash

Results for FY23 are in line with expectations, defined, in absence of forecasts, at the February trading update. Constant currency ARR growth of 17% led to revenue growth of 23%, leading to a reduced EBITDA loss of £1.4m (FY22: £-1.7m), also reducing free cash consumption from £-3.5m to £-2.5m. With 12 new ARR contracts, including 7 new customers, in FY23, taking ARR at year-end to £5.4m, momentum gained pace in 1H24 as Limits Manager, launched in FY22, gains traction. The current £6.0m ARR is