A software and services company engaged in specializing in real-time transaction control and enterprise data integrity solutions.
4-Oct-2017
Trading Update – Signed 2 new clients and trading is in-line with Board expectations – Management remain confident in the full year outlook.
Nothing to excite at present.
9-Jan-2018 – 191p – £128.9m – PER 28.9
Trading Update For The 12 Months To End December 2017 – In-line with Revenue up 24% to £21.3m (which actually seems slightly ahead of in-line) and EBITDA up 32% to £5.0m.
Quite a lot to like here although it can be volatile. It’s going on my Watchlist, 160p.
13-Mar-2018 – 202p – £136.3m – PER 30.6
Results For The 12 Months To End December 2017 – Group revenues up 26% to £21.7m (2016: £17.2m), Statutory PBT up 41% to £3.1m (2016: £2.2m), Adjusted Diluted EPS up 38% to 6.5p (2016: 4.7 pence), Cash of £8.5m including £0.2m short-term bank deposits and no debt (2016: £7.2m and no debt). Progressive dividend policy initiated – Final dividend proposed at 0.5 pence per share (2016: nil).
Still quite like this but the outlook in the update is not the most inspiring for a company on a PER of 30+. For now, for the sake of keeping an eye on it, I will keep it on my Watchlist, 160p.
10-May-2018 – 195p – £131.8m – PER 28.8
AGM Statement – A positive start, trading is on track.
Some good quality metrics (ROCE and Op Mgn) but the growth forecasts don’t seem to justify the PER of almost 30 – Remains on my Watchlist at 160p.
4-Jul-2018 – 197p – £133.2m – PER 28.7
Trading Update For The 6 Months To End June 2018 – LFL Revenue down 5%, expecting a strong H2.
This is coming off my Watchlist – Neutral now.
24-Jul-2018 – 157.5p – £106.7m – PER 23.1
Results For The 6 Months To End June 2018 – Confirmation that Revenue is down 5% and EBITDA is down a whopping 80% – Expecting a strong H2 (yeah right!).
Nothing to do but remain Neutral here – I do wonder who is paying up here on a PER of 20+.
10-Oct-2018 – 158p – £107.6m – PER 21.8
Trading Update For The 6 Months To End September 2018 – Confident of the FY outlook.
I must be missing something but I still can’t see why people are paying up here at this price! I remain Neutral.
6-Dec-2018 – 151.5p – £103.2m – PER 20.4
Trading Update – FY Adjusted EBITDA to be materially below current market expectations.
I said previously “I must be missing something but I still can’t see why people are paying up here at this price!” – I retain that view.
12-Mar-2019 – 89.5p – £61m – PER 47.4
Results For The 12 Months To End December 2018 – Revenue down -8%, Loss of -£1.4m (£-3.8m last time), Cash at £5.6m (£8.5m last time) and the Dividend is static at 0.5p.
I am as attracted here today as I was yesterday.
2-May-2019 – 95p – £65m – PER 56
Results For The 12 Months To End December 2018 – Excellent start to the year.
Liking this more but will wait to see actuals, to ensure there’s a return to positive EPS.
23-Jul-2019 – 121p – £82m – PER 63
Results For The 6 Months To End June 2019 – Revenue up 36%, Adjusted EBITDA up 525% and it looks like there’s a real profit here too – No clear guidance on FY.
Quite like this but will have to wait and see those actuals reflect a return to FY profitability. Based on the latest Broker note this morning, in my opinion, this looks way undervalued on a 1 Year view and fairly valued on 2 Year view – This is based on a return to +ve EPS in 2019E after being -ve in but 2020E EPS will still be half that of 2017A.
