H1 results appear extremely positive – the £4.8m is 53% growth y/y but also some 70% growth compared to H2 FY19 (where revenue was some £2.8m). This performance fed through to an increase of some £1.1m in Gross Margin during the six months. Overheads expanded by £0.7m to fund further growth, but the overall results still drove a reduction of the group’s Operating Loss from £0.8 to £0.4m. 

During the first half, the group has seen material success in selling new higher-value (and more performant) units. The number of units shipped rose only slightly – to 64 from 60 in the prior year – but the overall revenue growth of 53% was driven by the group being able to sell these high-end units to customers keen to deliver the very best performance in challenging environments. We note the comments around success in the USA (Customs and Border Protection and LA Airports) which may account for a large proportion of the uplift. 

We publish estimates for the first time…as we described in our recent initiation note, we chose to wait for H1 numbers to produce forecasts. Our new estimates are in line with current consensus forecasts, and we believe incorporate a very high degree of caution. Sales remain volatile and hard to predict, and we expect that US revenues may decline H2/H1 as the USA federal budget cycle runs to September. The group is, however, seeing good traction in other areas, and we feel confident predicting solid growth over time as the customer base continues to grow. 

Thruvision has this morning announced a very strong H1 period with significant grounds for optimism moving forward. We have set our new forecasts at levels we hope to be cautious, and anticipate further positive developments across H2 and beyond.