Technology

Technology equity research

Explore the most viewed and latest equity research and media content for companies within the Technology sector. Stocks in this sector focus on IT Services, Web Development, Software Development, and IT hardware.

Technology equity research

Stocks in this sector focus on IT Services, Web Development, Software Development, and IT hardware.

19 Sep 18

Cenkos: Seeing Machines Ltd - Smooth transition for fleet

This morning, Seeing Machines released its FY18 results within which there is an increase in the forecast revenues from the five automotive OEM deals to A$138m (from A$110m), demonstrating the ever-broadening scope for DMS. The board has opted for a smooth transition to a license model for the fleet business and based on this we have substantially pared back our revenue expectations for FY19. Despite this, we believe Seeing Machines remains funded through FY19 thanks to lower expected cash requirements associated with the license model. We re-instate our BUY recommendation and adjust our target price to 15p (from 19p) to reflect recent events.

Companies: Seeing Machines

18 Sep 18

Cenkos: Bango Plc - Interim results

This morning, Bango announced interim results for the period to 30 June 2018, showing a strong increase in End User Spend (EUS), up 138% to £220m. EUS growth remains on track to more than double for the fourth consecutive year. Audiens has added a completely new and high margin, revenue stream during the period and there remains a growing pipeline of new MNO/App Store integrations to complete as well as further Google Play upgrades, together representing well over US$4 billion in EUS. Further expansion of the Bango platform has also enabled MNO customers to sign-up for Amazon Prime Video in the US, UK and India, and Pandora customers in the US; generating new subscription-based revenues for Bango.

Companies: Bango

18 Sep 18

Cenkos: CloudCall Group Plc - New CRMs to drive additional growth

The 30% revenue expansion secured in H1A has been driven by voice-only products. H2E will see a broadened launch of the unified communications platform and further growth opportunities. The recent fund raising has helped finance the development of a scalable architecture and widen the number of CRM integrations which should lead to supplemental revenue expansion thereafter. The over-sold stock price is not fairly valuing the enlarged addressable opportunity in our opinion.

Companies: Cloudcall Group

12 Sep 18

Share & share alike

Here we go again – the company reporting season is gathering pace. The MPC is likely to leave rates unchanged although expectations still remain for an increase next year. The UK economy expanded at a faster pace in July helped by the weather and better retail sales. General sentiment continues to be impacted by tariff concerns, combined with Brexit uncertainty. As Table 1 shows, all major indices have fallen over the last month. In Share News & Views, we comment on AorTech*, Bonhill*, DeepMatter*, EU Supply* James Fisher, Haynes, Hunting , Location Sciences*, Marshall Motor and Synectics*.

Companies: AOR APC BMS CRPR DMTR ESC EUSP FDM FA/ GETB LSAI PCF SNX TCN W7L

18 Sep 18

All on track for ramp-up in H2’18

CloudCall’s performance in H1’18 was robust, as per the pre-release, with management confirming its H2’18 outlook and target to break-even during FY19E. Our estimates are unchanged. On strategy, the Phase II roll-out of UCS is due to go live in Q4’18, positioning the group to accelerate into FY’19E. We reiterate our Buy rating and continue to see compelling upside.

Companies: Cloudcall Group

11 Sep 18

Cenkos: Seeing Machines Ltd - Backup-driver Monitoring System

Seeing Machines has announced that it has launched a retrofit driver monitoring system for autonomous vehicles called the Guardian Backup-driver Monitoring System (Guardian BdMS). The system is designed to ensure that the backup-driver in a self-driving research vehicle is alert, aware and ready to take control of the driving task whenever necessary. The product is in response to clear demand from producers of semi-autonomous and autonomous research vehicles and Seeing Machines has signed an agreement with one customer and is in advanced discussions with several leading companies in the space. The Guardian BdMS product is based on a repurposed Guardian (fleet) Gen-2 unit but using updated FOVIO algorithms and an interface and API designed for this application.

Companies: Seeing Machines

10 Sep 18

Contract evidences growing SaaS acceptance

Sopheon has received a contract from Doosan Bobcat North America to deploy its Accolade software to manage Doosan Bobcat’s portfolio of projects across a number of corporate groups. The implementation went live in August. In its recent interim results announcement, Sopheon noted that it had signed a number of Software-as-a-Service (SaaS) deals and extensions including a major new win. Our estimates already reflect that backdrop. Doosan Bobcat’s decision to go with a SaaS contract is another example of the growing acceptance of the SaaS model within the market for enterprise innovation management solutions. In the results announcement, Sopheon also said that it planned to make specific investment in product, people and processes to further extend Accolade. This will provide impetus to the Group’s focus on expanding its “lifetime value” opportunities across a number of blue chip clients through extending the business application areas addressed by Accolade. It recently released Accolade version 12.1. Sopheon produced a strong performance in the first half of 2018 and the Group retains both good momentum and excellent revenue visibility. We look forward to further updates.

Companies: Sopheon

07 Sep 18

The Internet of Things

We believe a confluence of factors (including connectivity (NB-IoT and 5G), power storage (supercapacitors) and investment) is due to accelerate the adoption of The Internet of Things (“IoT”) at a global level. In this note we highlight a rich landscape of opportunity on AIM, initiating coverage on two companies which, in our view, offer investors compelling exposure to the IoT space:

Companies: 7DIG TIDE TRAK FST VNET

05 Sep 18

Cenkos: Seeing Machines Ltd - Fleet business update

Yesterday, Seeing Machines announced that following an initial review of the delays and cost over runs in its Gen2 fleet product, that it expected the production delays will have an ongoing adverse effect on growth of its connected base in FY19. Furthermore, the Board has concluded that the cost reductions previously anticipated to be delivered by the updated Guardian product are unlikely to be achieved in the short to medium-term. These have led the Board to conclude that revenues for FY19 will be materially below current market expectations and the Board has initiated a detailed internal review of the Fleet business unit. The key outcomes of the review and revised guidance will be announced with the results for the year to 30 June 2018 on 19 September 2018.

Companies: Seeing Machines

12 Sep 18

Building an impressive portfolio of products

As trailed in the August trading update, this is another strong half of growth from the global construction industry software supplier. This performance leaves it well on track to deliver our FY expectations. Post period-end, H2 will be augmented by the acquisition of leading UK facilities management software developer, Shire Systems, in July, and there is a change of FD with deputy FD, Ben Moralee, replacing Simon Morgan, who leaves to pursue other interests. We retain our current FY forecasts but emphasise the security of revenue (55% recurring) with both growth and cashflow being delivered and acceleration ahead.

Companies: Elecosoft

12 Sep 18

Shire acquisition “is amazing”

Every so often even traditional, old-fashioned industries are transformed by new disruptive technology. One of the latest being the $10 trillion Architecture, Engineering & Construction (AEC) market, where cutting edge BuildTech software is digitising the entire property/infrastructure life cycle (say 75 years). Covering initial design, build and commissioning, right through to maintenance, repair, upgrade and final demolition. Strangely though, this seems to have been somewhat overlooked by UK investors, despite the sector expanding at a healthy 11% clip and being worth c. $6bn pa (source: Nemetschek).

Companies: Elecosoft

29 Aug 18

Cenkos: Beeks Financial Cloud Group Plc - Final results comment

Beeks Financial Cloud announced final results for the year to June 2018 showing strong increases in revenue and profitability. Beeks enjoys high levels of subscription based revenues, with annualised committed monthly recurring revenue up 47% to £6.9m. We forecast 2019E revenue growth of 44% to £8m and 51% EBITDA growth to £2.9m. The business has now expanded into all major asset classes for automated trading, presenting wide-spread opportunities to expand the business further targeting more and larger institutional clients.

Companies: Beeks Financial Cloud

19 Sep 18

Weighting on a record H2 for gaming platforms

A return to the usual H2-weighting makes H1 appear weak against an exceptional half LY and, conversely, H2 results will impress against weak comparatives. This is misleading as Quixant has delivered another strong performance and across the FY, it should again deliver double-digit revenue and solid earnings growth and we maintain our FY forecasts. H1 cash conversion was a little weaker than usual, with high trade debt and stock levels reducing interim net cash to $2.5m after the dividend. Cash collections post period-end will lift that balance to over $6.0m. The experienced and reliable management has the usual good visibility on a record second half for the gaming business, its confidence secured by a record order book and we therefore reiterate our FY growth forecasts and target price

Companies: Quixant

19 Sep 18

Settlement with Illumina – freedom to operate globally

Premaitha has announced a partnership agreement with Illumina that brings to an end the 3½-year patent infringement litigation for non-invasive pregnancy testing (NIPT) that has over-shadowed the investment story. Premaitha has taken a licence under Illumina’s patent pool for NIPT, giving the company total freedom to operate in the global NIPT market. Premaitha will develop the IONA® test for use on Illumina’s Next Generation Sequencing (NGS) platforms, with a launch expected in early 2020. With the litigation overhang removed and settlement consideration (£0.6-0.8m) quantified, investors can focus now on the opportunity that exists for Premaitha to exploit the large (c.$1bn+) and growing NIPT market as well as adding content to both NGS platforms. Pending FY results, we put our target price under review but leave forecasts unchanged. This is a significant development, however, as this resolution should drive increased market penetration and higher growth rates, implying future upside to our forecasts.

Companies: Premaitha Health

04 Sep 18

IQE - Multiple VCSEL programmes entering production

During H118 IQE experienced double-digit sales growth on a constant currency basis in each of its three primary markets, although this was partly offset by a currency headwind. The investment in multiple VCSEL qualifications and the Newport foundry depressed margins, but underpins management’s expectations of a sustained photonics ramp-up in H218 and FY19. Acknowledging the currency headwind and one-off H118 photonics costs, we revise our estimates downwards.

Companies: IQE

28 Mar 18

Seeing Machines - Site visit at Tramlink in Croydon

18 Sep 18

Bango Interim Results

06 Jul 18

Zoo Digital Group (ZOO) Preliminary full year results presentation July 2018

27 Jul 18

Newgate Redleaf AI Conference – IMI Mobile: “AI and improving the customer experience”

06 Sep 18

Beeks Financial Cloud (BKS) Full year results presentation September 2018

26 Jul 18

Newgate Redleaf AI Conference – SDL: “Neural Machine Translation – the toughest challenge in AI?”

24 Feb 17

idox plc (IDOX) Investor presentation February 2017

23 Jul 18

Newgate Redleaf AI Conference – Kx: “Machine Learning – the growth of Predictive Analytics

14 Sep 18

Trakm8 (TRAK) Strategy presentation, September 2018

18 Jul 18

K3 Business Technology (KBT) presentation at ShareSoc July 2018

31 Aug 18

Executive interview – EMIS Group

17 Jul 18

alfa Systems - 2018 Hackathon London

31 Aug 18

eServGlobal (ESG) Interview with Executive Chairman John Conoley

13 Jul 18

Immotion - Welcome Ceremony

20 Jun 18

EU Supply (EUSP) Investor presentation June 2018

Latest Content

Scisys

SCISYS - Strong H1 but more balanced year is expected

SCISYS has reported a strong H1 with professional fees jumping 24%. However, this was off a weak H117 and some business was brought forward from H2. Consequently, we are forecasting a more balanced H1/H2 in FY18. We have increased our FY18 revenues by £3.0m to reflect this balancing, but we have maintained our profit forecasts. All divisions posted record revenues, the order book remains robust at close to £100m and net debt continues to decline. Management’s goal of £60m in revenues and double-digit margins within the next few years looks increasingly conservative and we believe the stock is solid on c 14.6x our FY19e EPS.

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20 Sep 18
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ACP COG IOF SAV SSY

Morning Note – 20 September 2018

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20 Sep 18
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Easyvista

Strong H1 earnings, with sales +50% and positive EBIT

The pattern of H1 18 confirms the consistency of the business model. After the build-up of both management and workforce in previous years, the pay-back is now visible with a positive EBITDA (€2.1m vs €-1.8m in H1 17) and is on track for the €10m envisaged in 2020.

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20 Sep 18
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PTY PEG MWG

MORNING COMMENT

Inline H1’s generate double digit profit growth; drivers strong | Interim results illustrate a good performance and strong visibility | Interims – progress continues; FY expectations unchanged

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20 Sep 18
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AD4 BRK IND SFE SGM

Morning Song

Adept4 (AD4 LN) Successful resolution of legal dispute | Brooks Macdonald Group (BRK LN) Finals show benefits of growth held back by cost, but EPS in line | IndigoVision Group (IND LN) Losses narrowing and guidance reiterated | Safestyle UK (SFE LN) Improving risk profile – upgrade recommendation to Hold | Sigma Capital Group (SGM LN) Completed site sold to PRS REIT, further development site acquired | The PRS REIT (PRSR LN) Site acquisitions, forward purchases add five sites comprising 380 units

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20 Sep 18
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Indigovision Group

Losses narrowing and guidance reiterated

FY18 is expected to be a year of stabilisation and management has reiterated guidance of a break even position in the current year. Significant Board, leadership and strategic changes were made in H2’17, and in H1’18 the Company launched a number of new products and services. The benefits of these actions are starting to come through, with losses narrowing in H1’18 vs. H2’17 and revenue continuing to grow. We therefore retain our revenue and profit forecasts for FY18. We introduce a new FY19 forecast year, assuming a return to profitability with continued sales growth. The shares are trading on an FY19 P/E of 5.1x. Should management deliver on our forecasts and successfully turn the business around, this multiple is undemanding.

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20 Sep 18
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Small Cap Breakfast

Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due 28 Sep. EBITDA Profitable. Offer TBA Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months. 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

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20 Sep 18
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Seeing Machines

Cenkos: Seeing Machines Ltd - Smooth transition for fleet

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19 Sep 18
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ASO COG CLL HDD IDP NIPT QXT UNG TSL

Morning Note – 19 September 2018

Avesoro Resources (ASO): Corp New Liberty mineral resource upgrade | Cambridge Cognition (COG): Corp NeuroVocalix – first contract | Cello Health Group (CLL): Corp Trading well with good visibility | Hardide (HDD): Corp Upbeat trading update | InnovaDerma (IDP): Corp FY 2018 results – Boots to range Skinny Tan | Premaitha Health (NIPT): Corp Settlement with Illumina – freedom to operate globally | Quixant (QXT): Corp Weighting on a record H2 for gaming platforms | ThinkSmart (TSL): Corp Credible innovator, now developing new opportunities | Universe Group (UNG): Corp Interims

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