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.

25 Nov 20

D4T4 Solutions - Switch to recurring revenue builds a platform for growth

The H1 results are as announced in the October update; COVID delayed several new contracts until earlier this month, leaving H1 revenue at £5.1m. However, management remained comfortable with a FY sales forecast of £21.7m on the basis of a strong pipeline and the substantial tranche of annually renewed revenue billed each H2. Reassuringly, the new contracts have now been signed for both the Celebrus Customer Data Management (CDM) solution and the Celebrus Customer Data Platform (CDP), and they cover a range of verticals from financial services to automotive manufacture and ecommerce provision. With significant net cash, D4t4 is in a strong position for long-term sustainable growth on the back of rapidly growing global demand for CDP/CDM. It remains confident on prospects in new geographies (N America and APAC) and new use markets (fraud, risk analysis and healthcare) plus a high level of recurring revenue. Our forecasts and target price remain unchanged save for a tweak to cashflow and raised dividend expectation. We reiterate our 310p target price.

Companies: D4t4 Solutions plc

24 Nov 20

Intercede - Interims: gaining momentum

Interims, in line with the October trading update and unchanged forecasts, follow a second (November) purchase order from the new US Department of State contract, highlighting momentum. The 5Cs that form management’s measure of strategic development have all generated positives: colleagues, with employee NPS rising, and no furloughs or paycuts; new & renewing customers, high-profile names and sectors; a broadening channel including generating new clients; code increasing with the addition of FIDO and increased reach through MyID Enterprise/ MyID Professional; and cash of £8.1m with £4.8m debt all in the form of in-the-money December 2021 convertibles. Strong 1H performance and cashflow derisks full-year expectations. Target raised to 125p (100p).

Companies: Intercede Group plc

25 Nov 20

IQE - Outperformance in both wireless and photonics

IQE has announced that the strong performance in H120, which resulted in record first-half revenue, has continued into the second half. It has updated FY20 revenue guidance from at least £165m to over £170m, with adjusted EBIT guidance remaining at the mid-single-digit million level. We have updated our FY20 and FY21 forecasts accordingly, giving adjusted PBT upgrades of 34% and 10% for FY20 and FY21 respectively.

Companies: IQE plc

23 Sep 20

Confirmation of stellar H1

LoopUp has announced a very strong H1 period, in line with the previous trading update and reflecting a number of months of exceptional performance. This is allowing the business to invest in the major identified new opportunity, to provide telephony within Microsoft Teams, where the early signs are extremely positive. We look forward to further detail on the Teams pipeline and sales levels over time.

Companies: LoopUp Group PLC

24 Nov 20

Robust H1, US SecPay driving growth

Eckoh’s fast growing US SecPay business and robust UK business model have minimised the impact of lockdowns with u/l H1 revs down just 3% yoy and profits flat. ECK reintroduces FY21 guidance, expecting H2 revenues comparable to H1 and FY21 AOP comparable to FY20. US SecPay is now a meaningful >30% group revs, growing 80% in H1 and with larger customers now re-engaging. We expect growth to continue in FY21 and beyond; the opportunity is multiples of current sales (FY21E $13m- +60% yoy). We similarly expect the cash cow UK business to continue to recover and return to c. 5% secular organic growth over time. It is especially continued success with US SecPay that is likely to lead to group FCF exceeding that of £5-6m achieved in FY20/19 over time and a FCF yield well above 5%. That’s attractive.

Companies: Eckoh plc

26 Nov 20

First Property* - H1 Results: Ready to reinvest

H1 Results: Ready to reinvest

Companies: First Property Group plc (FPO:LON)First Property Group plc (GXZ:BER)

26 Nov 20

Tracsis - Signals change – underlying rail strength in finals

After a challenging 2H21 for the events and traffic data business, Tracsis has delivered FY results to July in line with the reassuring August trading update. With £48m (FY19: £49.2m) revenue, the group has quantified an estimated £10m set back to COVID-affected activities within the Traffic & Data Services (T&DS) Division, implying underlying outperformance compared with expectations for the higher-margin Rail Technology & Services (RT&S) Division. Forecasts describe prospects: continuing growth in FY21 and FY22 for RT&S, with two major contracts identified in latter stage of negotiation; and a still hampered FY21 for events and traffic surveys within T&DS – but forecasts for FY22 show a return to an ex-COVID environment, regaining the original growth path. With £17.9m of cash (no debt) and delivering multiple fundamental elements of the UK rail ecosystem, Tracsis has weathered the storm better than expected, with organic and acquired growth prospects as strong as ever. Target 900p reiterated.

Companies: Tracsis plc

25 Nov 20

Cenkos: Shearwater Group Plc -- More like a software company

Earnings in H1A were better than flat and H2E has got off to a good start. Margins are up and so too is recurring revenue as proportion of total business. First half order deferrals are now materialising and renewals are positive. Free cash generation was strong and the outlook is positive. We see no fundamental reason for the recent share price underperformance and we reiterate our Buy recommendation.

Companies: Shearwater Group plc

30 Nov 20

Interim results update

The Panoply has reported very robust interim results and we upgrade our FY21 PBT/EPS estimates by +5%/+10%. Revenues leapt +58% to £21.2m with LFL growth of +18% (Q1 +10%, Q2 +26%). EBITDA more than doubled to £2.9m, with LFL growth of +37%. Cash conversion was strong and the group has declared a maiden interim dividend of 0.2p. The group had a strong sales backlog of £17.5m at 1st October and we are pleased to note that it is increasingly winning large, multi-disciplinary contracts notably Bloomberg Philanthropies, Land Registry and Planning Inspectorate. These contracts would have beyond the capabilities of the individual businesses before they joined The Panoply and therefore in our view securing these £4m+ contracts vindicates the group strategy. We raise our PBT forecast by +5% to £4.9m (£4.7m). On a maximum deferred consideration basis, EPS is 5.1p (4.8p) while assuming shares are issued at 150p rather than our previous assumption of 120p gives EPS of 6.4p (5.8p). We have re-run our sensitivity analysis using the current share price of 200p and this indicates PF EPS of 10p could be delivered in 2023. We raise our target price to 220p (was 180p) and retain our Buy recommendation.

Companies: Panoply Holdings Plc

25 Nov 20

SP Angel Healthcare Conditions

Sensyne Health (SENS.L): Research agreement with Hampshire Hospitals NHS Foundation Trust | RenalytixAI (RENX.L): First Quarter results for 2021

Companies: Sensyne Health Plc (SENS:LON)Renalytix AI Plc (RENX:LON)

11 Sep 20

Mirriad Advertising - On the cusp of potential widespread adoption

Mirriad Advertising’s H120 numbers show strong top-line progress, up 109% on H119 and 26% ahead of H219. H120 revenues were up over 185% year-on-year in China and Singapore, with market confidence rebuilding. There are very promising new agreements in place with US media owners, with early moves in large adjacent markets, such as music video. There are advanced negotiations ongoing with Tier 1 entertainment platforms. These prospects significantly increase the attraction of Mirriad’s proposition to advertisers. Cash burn is now under £1m per month, with end-August cash of £13.3m (no debt). Market forecasts for FY20–22 are unchanged.

Companies: Mirriad Advertising plc

26 Nov 20

Nanoco Group - Grant funding for life sciences project

Nanoco has secured just under £1m grant funding for a life sciences project to develop a heavy metal-free quantum dot testing kit to detect COVID-19. The project will last 18 months and represents a potential third segment for generating future revenues in addition to established activities in sensing and display applications. We make minor adjustments to our estimates, although there is no impact on EBITDA or cash flow.

Companies: Nanoco Group PLC

30 Nov 20

Allenby Capital TMT Update - 30.11.20 - CPX.L, TERN.L, LSAI.L

CAP-XX Ltd* (CPX.L, 6.8p/£30.1m) | Tern plc* (TERN.L, 6.85p/£20.6m) | Location Sciences Group plc* (LSAI.L, 0.45p/£1.0m)

Companies: CPX TERN LSAI

11 Nov 20

Fonix Mobile - Initiating with a 150p target on a resilient, robust platform

Following Fonix successfully raising £45m through an oversubscribed IPO on 12 October, we initiate our coverage with a target price of 150p. The investment case is focused upon Fonix leveraging its proprietary, cloud-based platform to expand with existing clients and win new clients within a robust UK phone-paid services market. The structural strength of Fonix’s platform is demonstrated by Fonix experiencing no churn from major customers in the past six years, which reflects that Fonix benefits from strategic integration and strong relationships with its clients. Fonix’s FY20 gross profit and EBITDA grew by +22% and +36% respectively, and we conservatively forecast +11-12% EBITDA and EPS growth in FY21 and FY22. On 12m forward EV/EBITDA of 10x and an EFCF yield of 7%, Fonix looks considerably undervalued compared to AIM payment and finnCap Tech 40 peers that are trading on 12m fwd EV/EBITDA of 17-20x with 7-17% EBITDA growth, and EFCF yields of 1-3%. We base our 150p target price on 15x FY22 EV/EBITDA or a 5% FY22 EFCF yield, and look forward to Fonix’s trading update in early 2021.

Companies: Fonix Mobile PLC

26 Nov 20

Milestone contract, pipeline materially ahead

ACT announces today that it has received a PO for the first large scale deployment of its HXM offering for a leading global energy supplier, and this on a c. 3 months sales cycle. We believe this has the potential to grow into a multi-million contract over time and validates ACT’s decision to change its go-to-market model back in Jan 2020. Perhaps even more significantly ACT reports that channel partners have established a pipeline of >4m addressable employee seats just since August. Our best estimate is that this pipeline could be worth high single digit tens of millions of recurring dollars p.a . For a company capitalised at £37m that is very material. This is a company/story worth getting to know.

Companies: Actual Experience plc

01 Oct 20

Immotion Group launch at-home, educational, fun family product 'Let's Explore Oceans'

01 Dec 20

Location Sciences: New contract win and solid cash flow position is 'biggest positive'

25 Sep 20

Immotion Group set to launch first at home game 'Lets Explore Oceans'

30 Nov 20

Tracsis (TRCS) FY20 results presentation

15 Jul 20

IQ-AI's Imaging Biometrics developing technology that could 'revolutionise brain tumour imaging'

26 Nov 20

Tracsis (TRCS) Full Year 2020 results overview

19 Nov 19

Gfinity PLC creating 'exciting, groundbreaking esports content'

24 Nov 20

Eckoh see US Secure Payments arm of revenue surge 80%

16 Nov 20

Sensyne Health 'achieves primary IPO objective' with a database with over 5m records

24 Nov 20

Accesso Technology Group expect 'an elastic response' when the vaccine is deployed

20 Nov 20

Sensyne Health present at the Proactive One2One virtual investment forum

13 Nov 20

Webinar: Datatec

06 Nov 20

Tech in Focus: US election impact on tech stocks

06 Nov 20

Market report: FTSE lacks direction as the US election fight continues

06 Nov 20

Tech in Focus: Richard Jeans on US election impact on tech stocks

Latest Content

Location Sciences: New contract win and solid cash flow position is 'biggest positive'

Location Sciences

01 Dec 20

Location Sciences: recovery and growth play for 2021

Location Sciences (LON:LSAI), a world leader in location verification for mobile advertising, recently released a trading update for the current year (year-end Dec). The update covers the three product lines — Verify, GeoProtect, and Insights. We provide an overview of these on p2.The update outlin

LSAI PXAMF 59LA

01 Dec 20
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4iG - Strong Q320 results, estimates raised

In its Q320 update, 4iG reported nine-month (9m) net revenues of HUF33.5bn, a 34% y-o-y increase. EBITDA increased 13% to HUF2.8bn, with EBITDA margins climbing to 10.8% in Q320 from 6.7% in H120. Net income for the 9m rose 11% y-o-y to HUF1.9bn. 4iG reported a continuing robust operational performance, with a limited effect from COVID-19, announcing two acquisitions and a satellite joint venture during the period and a third acquisition after period-end. Management reiterated its confidence in achieving its 20% revenue growth guidance for FY20 ahead of its seasonally strongest quarter, with a HUF18.2bn order book for 2020 (19 November) on top of 9M20 revenues of HUF33.5bn (total HUF51.7bn). We have raised our revenue estimate for FY20 by 10% and FY21 by 5%.

4iG Nyrt. (0EID:LON)4iG Nyrt. (4IG:BUD)

01 Dec 20
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Media and Games Invest - Equity+bond placings, FY20 guidance raised

Since listing on Scale in July 2020, Media and Games Invest (MGI) has completed a dual listing and share placing on Nasdaq First North and issued a €80m bond. In Q320, it reported 29% l-f-l revenue growth with revenues of €35.0m and adjusted EBITDA of €6.4m, supported by 16% organic growth year to date in the games portfolio. Adjusted EBITDA margins fell from 22% in H120 to 18% in Q320, reflecting a changed business mix (with increased digital media and ad tech revenues). Due to the strong growth, management raised its FY20 guidance, with revised targets of revenue of €125–130m (up from €115–125m) and EBITDA of €23–26m (€20–23m previously). Net debt, adjusted for the SEK300m (c €29m) equity placing, fell to €49.3m, leaving scope for M&A.

Media & Games Invest plc (M8G:OME)Media & Games Invest plc (M8G:ETR)

01 Dec 20
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Techstep CMD: Supporting our estimates

The CMD focuses on growth in managed devices with own software Targeting >1m managed devices by 2025 vs ~200k currently Targeting an EBITDA/GP of >30% by 2025 vs our 2024 estimate of 30% Minor estimate changes expected

TECH BIRD B1T TECH TECHUSD

01 Dec 20
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Morning Note – 1 December 2020

GHH IOM BBB

01 Dec 20
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Q4 trading update: increased guidance

Expects Q4 revenue to exceed USD 15m (previous guidance at USD 14m) Organic growth is slightly higher than previous guidance Already reached its 400K paid seats target, now expects 420K+ year-end Minor positive estimate changes expected

KAHOOTME KAH KAHOOTME KHOTF

30 Nov 20
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Asseco Poland is proving that it is one of the best/promising Polish stocks

In 9M 20, Asseco Poland significantly increased its free cash flow yoy, while at the same time the share of sales from the most promising areas Cybersecurity, Cloud Solutions and Robotics was significantly above last year’s. We are confident that the dividend payout for 2020 will again be very satisfactory.

Asseco Poland S.A.

30 Nov 20
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WANdisco - $3m LiveData Migrator contract

WANdisco has announced a $3m initial contract with a major US telecoms company to migrate a 13PB on-premise Hadoop cluster to the Microsoft Azure cloud using its LiveData Migrator. Most of this will be recognised in 2020 but it also has an opportunity to migrate a further 30PB of data stored by the company in the coming years. We make no change to forecasts, as we believe WANdisco still needs to sign further deals to reach our FY20 estimate, but see the current acceleration in commercial activity as very encouraging.

WANdisco Plc