Sopheon (SPE)

Sopheon SPE Logo

Engaged in the provision of software and services in the product lifecycle management (PLM) market, it’s Accolade product provides integrated support for innovation planning, roadmapping, idea and concept development, process, project, portfolio, resource and in-market management.

4-Jan-2018 – 367.6p – £36.8m – PER 12.8

Trading Update For 2017 – Revenues and PBT expected to exceed market expectations – Improved recurring revenue and visibility into 2018.

There’s lots to like here, growing (but not dynamically, reflected in the PER), great ROCE and Operating Margin – And, it’s got Cash. It’s on my Watchlist as a potential on a general market correction, 350p.

29-Jan-2018 – 492.5p – £49.2m – PER 17.9

Trading Update For The 12 Months To End December 2017 – Expects revenues to be over $28m, upfrom $23m in 2016, and comfortably ahead of current market expectations. Expects PBT to be significantly ahead of current market expectations. Year-end Net Cash $9.5m (2016: $4.2m). Overall revenue visibility for 2018 already stands at $18m, compared to $13m at this time last year.

I still like this, on my Watchlist, 470p, may even consider paying up here.

Subsequently revised Watchlist price, 500p.

22-Mar-2018 – 655p – £65.5m – PER 23.5

Results For The 12 Months To End December 2017 – Revenue up to $28.5m from $23.2m in 2016, PBT up to $5.1m from $3.0m and Net Cash up to $9.5m from $4.2m. $19.3m Revenue visibility versus $14.5m last year and there’s a Maiden Dividend of 2.5p.

Upped my Watchlist price here from 500p to 600p.

7-Jun-2018 – 880p – £88.5m – PER 22.5

AGM Statement – Revenue visibility up 34% YoY (a record).

This statement seems more bullish about the past than the future. I am kicking myself for not paying up here numerous times in the past but don’t want to here at present. To keep an eye on it though I will keep it on my Watchlist, revised price 750p.

19-Jul-2018 – 760p – £77.0m – PER 19.1

Trading Update For The 6 Months To End June 2018 – In-line with expectations with Revenue and PBT for this period to be significantly ahead of last year.

Could be tempted here this morning but I will await broker notes following this update.

23-Aug-2018 – 940p – £95.2m – PER 23.7

Results For The 6 Months To End June 2018 – Revenue up 27% and PBT up 62% with FY Revenue visibility at $27.2m ($20.3m last time). Diluted EPS is up over 30% (from 18c to 25c) and there’s a 2.5p Maiden Dividend. Trading comfortably in-line.

Still tempted here, it’s on my Watchlist (stupidly since 367p in January 2018).

8-Oct-2018 – 908p – £92.0m – PER 23.0

Q3 Trading Update – Expecting FY to exceed current market expectations.

Sadly remains on my Watchlist since 367p, less than a year ago – One of the reasons I have moved away from waiting for pullbacks. Remains on my Watchlist until I finally decide to pay up here, perhaps today!

Subsequent note: Further research suggests this is over valued on a 1 and 2 year view so I am going Neutral here for now.

11-Jan-2019 – 1335p – £135m – PER 31

Trading Update For The 12 Months To End December 2018 – Expecting FY Revenue to be comfortably in-line and PBT to maybe outperform.

I really missed out here (from the days when I rarely paid up) but now I do believe it looks overvalued (perhaps, again, wrongly!).

29-Jan-2019 – 1300p – £132m – PER 30.2

Trading Update For The 12 Months To End December 2018 – Expecting Revenue of $33m (up from $28.5m last year) and PBT to be significantly ahead of expectations. Net Cash to be up from $9.5m to $16.7m. Revenue visibility of $19.4m ($18m last time).

Kicking myself for not paying up here sub 400p (just a year ago) but reckon it’s overvalued now.

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