Zeus UK smallcap technology sector update - 28 June 2024

The companies in the Zeus smallcap technology universe with the highest earnings growth potential are Seeing Machines, ZOO Digital, CyanConnode and Ensilica. Their surprisingly low earnings multiples indicate to us that investors are sceptical of their anticipated growth. The companies that are well positioned to meet earnings expectations may offer potential price upside. We review their growth prospects below and highlight CyanConnode. The median stock in the Zeus UK smallcap technology index

SysGroup (SYS LN) - AI sweet spot

SysGroup provides AI platform solutions and supporting managed IT services to the UK SMB market. Our research reveals a large gap in the market between UK SMB’s high AI ambitions and their limited preparedness. SysGroup is well positioned to fill this gap with a transformed management suite, a new proven sales team and an end-to-end platform solution, supported by blue-chip AI expertise. With a proprietary AI offering and a large customer base, we expect the new management team to continue accel

Hybridan Small Cap Feast - 07 June 24

7th June 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: ITF announced: 22nd May: Raspberry Pi announces an intention to float onto the Premium listing segment of the Main Market. Raspberry Pi is a designer and developer of high

Hybridan Small Cap Feast - 03 June 24

3rd June 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: The shares of Zegona Communications (ZEG.L) have been readmitted for trading on the Standard Segment of the Main Market, following the reverse takeover of 100% of Vodafone Spain for EUR5bn. Delistings: What’s baking in the oven? ** Potential**** Initial

Hybridan Small Cap Feast - 29 May 24

29th May 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: Time to Act (AQSE: TTA): an engineering business focused on technology for energy transition announces the admission of its Ordinary Shares to trading on the Aquis Stock Exchange Growth Market. The Company reported a revenue of £2.6m and a net in

Hybridan Research: Sector Review: Artificial intelligence in UK cybersecurity: the human uplift 17/04/2024

Artificial intelligence (AI) is a double-edged sword in cybersecurity. Whilst new AI models, architectures, and innovations are emerging to protect the security posture of organisations, attackers are also benefiting from deepfakes, sophisticated phishing, and automation of malicious codes. To ensure the impact of AI on cybersecurity to be a net-positive, we need to pit good AI against bad AI. Point solutions enhanced with machine learning: Global cybersecurity has been built with point soluti

Zeus: Software and Services Quarterly review - February 2024

Top subsector price performance: There were price gains across the board this quarter with all but Location & Sensing software posting positive aggregate movements

Zeus: Software and Services Sector Quarterly review - November 2023

Top subsector price performance: Three of the nine subsectors recorded aggregate share price gains over the last quarter, with Security up the highest at +10.7% for the three months to 13 November 2023. Corero and Intercede are gaining contract momentum, partly driven by high-profile attacks. Similarly, GB Group’s Fraud location revenue grew strongly in H1, whilst NCC Group’s restructuring is achieving cost efficiencies. Bytes, which has broad exposure to the technology sector, highlighted parti

Hybridan Small Cap Feast - 01 Nov 23

1st November 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje

Hybridan Small Cap Feast - 26 Jun 23

26th June 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objecti

Hybridan Small Cap Feast - 17 Apr 23

17 April 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

SysGroup (SYS LN) - Resilient product portfolio

SysGroup has released H1 results to 30 September 2022. The company delivered single digit organic growth in line with management expectations. Its services are proving to be resilient, as SMEs seek to invest in technology to increase competitiveness and improve margins. Operationally, the company’s investments in sales, application software and cloud platform have increased scale, efficiency and sales opportunities. Its recent acquisitions have added strong teams, complementary services, cross s

Zeus Technology Quarterly review - November 2022

This quarter’s key observations • Subsector performance: UK Software was the only saving grace in the technology sector during the three months to 10 November, with an aggregate share price movement of +8.1% vs. an average of -12.0% for the other five subsectors. This was largely driven by strong performances from Microfocus International (+70%, following an announced $6bn takeover by Canadian software provider OpenText) and WANdisco (+52%, after strong interim results in September and a po

SysGroup (SYS LN) - Strong execution in a tough macroeconomic environment

SysGroup has released a strong trading update, demonstrating the robustness of its business model in the face of a challenging macroeconomic environment. In addition, its recent acquisitions are performing well, its pipeline continues to grow and its investments in sales and marketing are progressing well. Despite the Company’s continued strong performance, shares trade at only 3.3x FY23 EV/EBITDA and 5.6x PE. We see significant share price upside, with our average valuation estimate 185% ahead

Nanoco - Trading update, revised FY24 forecasts

Nanoco has released a trading update for the year ending 31 July 2024. The company continues to deliver on its milestones for its Joint Development Agreements (JDAs) for second-generation sensing materials. However, in the near-term, Nanoco is being impacted by a delay to some previously expected production orders for first-generation sensing materials, and also by some one-off increases in overheads. We are reducing our revenue forecast for FY July 2024 from £8.45m to £7.90m, and our EBITDA for

Craneware Group | Microsoft Alliance to bring multiple benefits

Craneware has announced the formation of an extensive alliance with Microsoft Azure, its leading cloud partner, which will leverage Azure's capabilities, increase access for customers to Craneware's products, and improve Craneware's cost efficiency. Craneware's ability to partner with Microsoft in this way is a demonstration of the strength of Craneware's position in the US healthcare market for value cycle software, and furthers its ambition to become ubiquitous in US hospitals with enhanced pr

CML Microsystems+ (CML, House Stock at 338p) - Foundations laid for a significant uplift

Nanoco Group - Visibility pushed back

Nanoco Group’s trading update flagged that, while its development work on second-generation materials continues to progress as expected, it does not expect to receive a follow-on order for commercial materials in FY24. These orders were expected to be low volume, hence the delay is not particularly material from a financial perspective, although it does remove an expected milestone to gauge Nanoco’s pathway to volume production. We have adjusted our estimates to reflect a more cautious scenario

Zeus Video Games Sector Quarterly review - July 2024

Demand and supply drivers: Video games demand data, summarised on page 9, suggests that the market is in the early stages of recovery and we can see market growth continuing to accelerate, but we have yet to see supply growth moderate. For example, rolling twelve months spending on video game content growth in the US continues to accelerate from a low of -8% in October 2022 to flat in August 2023 and to 4% in April 2024, according to Statisa and Gamesindustry.biz, whilst rolling LTM game release

1Spatial - Contract wins underpin US growth opportunity

1Spatial’s announcement of contract wins in the US, spanning a number of products across several states, highlights the company’s progress and opportunity in the world’s largest market for software. It also gives an early indication that management’s investment in strengthening the US business development team could yield good results. In the US 1Spatial now has contracts or framework agreements with 21 states, up from 18 at year-end, with management setting a longer-term ambition of generating

musicMagpie - Strategically positioning for profitability

musicMagpie’s (MMAG’s) H124 results reflected several strategic decisions taken by the management team to improve profitability and cash generation. The decision to make the US a sourcing-only geography to benefit margins had a notable impact on revenues, with US revenues declining by more than half. Despite the double-digit decline in group revenue, the adjusted EBITDA margin remained relatively stable at 4.4% (H123: 4.5%), reflecting the focus on profitability. The outlook remains challenging,

PROGRESSIVE: CML Microsystems: A year of operational and strategic progress

CML’s FY24 results, released this morning, confirm that while markets have been difficult and customer inventory issues linger, overall performance has been resilient, and CML has made important strategic and operational progress. With a healthy balance sheet, strong positions in its current core markets and a growing portfolio of products and technologies directed at next-generation wireless (5G, industrial internet of things, satellite etc.), CML is an interesting, exciting and resilient inves

Craneware Group: Initiation – In the sweetspot

Craneware is the market leader in value cycle SaaS provision in the US with a 40% market penetration and the ambition to become ubiquitous in US hospitals. The shackles of Covid disruption, digestion of the Sentry acquisition, and the transitioning of its customers to the fully cloud based Trisus platform, have fallen away and opened up new sales opportunities for the group. While the shares have out-performed strongly, multiples look reasonable compared with peers. We calculate a DCF based fair

Hardman & Co Monthly: July 2024

Feature article: UK life sciences needs more local institutional support to survive. For two years running, the Hardman & Co Healthcare index has declined, underperforming both the FTSE 100 and the FTSE All-Share indices. This is quite unusual for healthcare stocks. Apart from the general economic influences, which have made institutions more risk-averse, there was a common knowledge that several companies were in need of additional working capital; so, share prices were marked down in anticipa

Morning Note – 4 July 2024

Allenby Capital TMT Update - 01.07.24 - PPS.L, MIRI.L, ENET.L, MWE.L, CPX.L, TRAK.L, CLCO.L

Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.

Hybridan Small Cap Feast - 3 July 2024

3rd July 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced, or it is a rumour Dish of the day Admissions: IntelliAM AI plc (AQSE: INT) has joined the Aquis Stock Exchange Growth Market. IntelliAM, an artificial intelligence company focused on the consumer goods industry, acquired 53 Degrees North Engineering Limited, to become the Company’s Consultancy divi

Nanoco Group - Sensing the opportunity

With the successful Samsung litigation now in the rear-view mirror, Nanoco’s focus will be fully on building the business as a developer, manufacturer and licensor of nanomaterials. With its extensive expertise in quantum dots, validated IP and high-volume manufacturing facilities backed up by a strong balance sheet, we believe that the business has a robust platform for growth. Partnerships with STMicroelectronics and an Asian chemicals supplier position Nanoco strongly to participate in the an

Morning Note – 26 June 2024