PROGRESSIVE: Gamma Communications: Strong start to the year in UK businesses

Today’s AGM trading update states that Gamma has made a strong start to the year in its UK businesses, while the challenging economic environment and some impact from foreign exchange have contributed to the European businesses making a slower start. Recent acquisitions are performing in line with expectations. Cash generation remains strong, with net cash of £140.4m as at 30 April (vs £101.3m last year). Management expects adjusted EBITDA and adjusted EPS to be in line with current market expec

PROGRESSIVE: Gamma Communications: More happy returns

Gamma’s results for the year ended 31 December are in line with the expectations confirmed in the January trading update. Revenue of £521.7m is 8% ahead of FY22, with gross profit at £267.2m showing the same progress. Adjusted EBITDA grew by 9% and PBT by 10%, although the impact of higher tax rates was seen in the 5% increase in adjusted EPS. Cash generation was strong once again, with 108% adjusted cash conversion. Year-end cash of £134.8m is £42.3m above the year before, even after the £30.5m

PROGRESSIVE: Gamma Communications: Aligned with the stars

Gamma’s trading update for the year ended 31 December confirms adjusted EBITDA and adjusted EPS in line with market consensus (£113.8m-£116.0m for adj. EBITDA and 74.2-77.4p for adj. EPS). Business is performing well and making progress with the development of its product offering, while Enterprise is winning notable contracts. In Europe, Gamma has made strong financial progress. Year-end cash was £134.8m (FY22: £92.5m) with operating cash conversion over 100%. The statement refers to an update

Hybridan Small Cap Feast - 05 Sep 23

5th September 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 obj

PROGRESSIVE: Gamma Communications: Switch-on to the PSTN switch-off

Gamma Communications’ H1 results, released today, show strong performance in the two UK business units and very encouraging revenue and profit growth in Europe. Revenue of £256.2m was up 9% (H1 22: £234.7m), while adjusted EBITDA also improved by 9% to £56.5m (H1 22: £51.9m) and adjusted EPS grew by 5% to 37.5p (H1 22: 35.6p), or by 11% on a constant-tax basis. Gamma’s strong cash generation was once again a highlight. Net cash (pre-leases) at the period-end was £121.7m, up from £92.5m at the st

Hybridan Small Cap Feast 02/08/2023

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Announced ITF 12 July: Substrate Artificial Intelligence, an artificial intelligence company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health, intends to join the Access Segment of the AQSE Growth Market. Announced ITF 6 July: Blackpoint Biotech plc, a medical cannabinoids company established t

PROGRESSIVE: Gamma Communications: Resilient operational and strategic progress

The trading update for the six months ended 30 June confirms that Gamma performed well in H1 and is set to report in line with market expectations for the full year. In the UK, Business (formerly Indirect) is performing strongly and Enterprise (formerly Direct) has won a number of significant contracts. In Europe, EBITDA grew healthily, supported by forex. Cash generation is in line with the 90% conversion guided to, with net cash at c.£121.5m (FY22: £92.5m). We maintain our forecasts, noting th

PROGRESSIVE: Gamma Communications: AGM update – ticking all the right boxes

Today’s AGM trading update confirms that Gamma has continued to show growth across all three business areas. Management expects the strong start to the year to continue and for FY23 adjusted EBITDA and adjusted EPS (fully diluted) to be in line with market expectations. UK Direct and Indirect both continue to perform well, and in Europe the H2 22 improvements have continued into FY23. New products have helped growth in Europe, while in the UK Gamma has launched its Simple Swap product for SME cu

PROGRESSIVE: Gamma Communications - Continuing UK growth drives profit and cash

Gamma’s results for the year ended 31 December 2022, released today, are in line with expectations and guidance, and show a strong performance with 8% growth in revenue (£484.6m vs FY21 £447.7m), 10% improvement in adjusted EBITDA (£105.1m vs FY21 £95.4m) and 12% increase in adjusted diluted EPS (71.8p vs FY21 64.0p). Cash generated by operations was up by 10%, resulting in year-end net cash (pre-leases) of £92.5m (FY21 £49.5m). Trading in the UK, in both the Indirect and Direct businesses, was

PROGRESSIVE: Gamma: Confidently following a consistent course

Gamma’s trading statement for the year ended 31 December 2022, issued today, confirms that the group will be able to report another year of strong financial performance, with results in line with expectations. The UK business has been trading strongly through both the Direct and Indirect channels, while UCaaS adoption in Europe continues to build, with Germany showing notably strong UCaaS growth. We maintain our estimates for FY22 and FY23 following today’s statement, and look forward to the ful

PROGRESSIVE: Gamma: Quality shining through

Gamma Communication’s robust H1 results, released today, contained no significant surprises, following the confirmatory trading update issued at the end of July. Revenue for H1 increased by 8% to £234.7m (H1 2021: £217.4m), Adjusted EBITDA increased by 13% to £51.9m (H1 2021: £46.0m) and Adjusted EPS was up 16% to 35.6p (H1 2021: 30.6p). Net Cash at the period end was £72.6m, up from £49.5m at the end of December 2021. The business continues to grow, the growth drivers remain intact, we hav

Gamma: The growth story continues

Gamma’s H1 trading update, released today, reaffirms guidance and confirms that, despite wider market concerns, the company is seeing strong year-on-year adjusted EBITDA growth, with healthy progress in the UK and Europe, while meeting the challenges of inflation and the hardware supply chain.

Q1 update − on course for another growth year

Gamma has today issued a Q1 trading update, coinciding with its AGM. The update confirms that the year has started positively, with revenue growth across all operating segments. Management expects this positive momentum to continue throughout the year, with full-year adjusted EBITDA and adjusted EPS being in the upper half of market estimates. We have tweaked our FY22 revenue estimate down (£495m to £488m) but left our earnings figures intact.

Steady progress over choppy waters

Gamma’s results for the year ended 31 December 2021, released this morning, are broadly in line with our expectations. While revenue fell slightly short of our forecast, £447.7m vs our £455.6m estimate (£393.8m FY20), the company achieved higher margins than we had expected, yielding an Adj EBITDA figure just ahead of our forecast, £95.4m vs our £94.0m estimate (£79.0m FY20). The strong overall results reflected robust operating performance across the group – some areas very strong, some slightl

Filtronic - FY24 ahead of expectations

Filtronic’s year-end trading update confirmed that it expects to report FY24 revenue and adjusted EBITDA ahead of our forecasts. Trading in H2 benefited from strong demand from the space market, which we expect to continue into FY25. The company confirmed that it has ramped its production capability to meet this higher level of demand and continues to invest in further capacity expansion to provide flexibility and support for future growth.

Morning Note – 20 June 2024

CyanConnode (CYAN LN) - The smart choice

CyanConnode provides end-to-end communications platforms that connect Internet of Things (IoT) devices such as smart meters to a utility's billing system. The company is a global player and a market leader in India, where a new government scheme, as set out below, has mandated the procurement of 250m meters by March 2025, a significant market opportunity for CyanConnode.

Filtronic - LEO liftoff: SpaceX strategic agreement and $20m order

Just 15 months after winning its first order in the Low Earth Orbit (LEO) satellite communications market, Filtronic has announced a 5-year strategic partnership with SpaceX which includes an initial $19.7m (£15.8m) E-band amplifier production order for delivery in FY25. As a result, we upgrade our FY24/FY25 forecasts and lift our target price to 57.4p (was 37.5p), equivalent to 74% upside. Although this is the first time SpaceX’s Starlink has been named as a Filtronic customer, this is now the

Morning Note – 20 May 2024

Morning Note – 21 December 2023

Bigblu Broadband - Disposal of the Nordics, focus on realising shareholder value

BBB has announced the disposal of the Nordic operations for an EV of £1.3m through a Management Buy Out (MBO), alongside the group’s FY23 results. Following a comprehensive review of the options for the Nordic operations, the MBO will be supported by Andrew Walwyn, who has resigned as BBB CEO to prevent any conflicts perceived or otherwise, and current BBB CFO, Frank Waters, will become group CEO to continue to focus on realising shareholder value from the Australian operations and the stake in

CyanConnode (CYAN LN) - FY24 update: revenue materially ahead

CyanConnode exceeded FY24 revenue expectations and has high visibility into FY25, supported by strong deliveries and a growing backlog respectively.

Morning Note – 3 April 2024

Morning Note – 21 May 2024

SRT Marine Systems - Continued Systems progress despite timing uncertainty

SRT Marine Systems has announced Systems project revenue milestones for two coastguard contracts are now unlikely to be recognised by June YE. The SEA ($180m) and phase 2 of the ME (£40m) CG contracts are subject to final contract completion administrative processes that are steadily progressing but which must be completed prior to commencement of first deliveries. At this stage, SRT is an observer to these frustratingly slow processes until completion. In the event of minimal Systems milestone

Hybridan Small Cap Feast - 01/12/23

1st December 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

2024 Outlook - Clean Energy In 2024

Performance of clean energy shares was weak in 2023 other than in storage. 2024 is likely to see storage continue to perform but renewables, bioenergy and hydrogen could also see an improved environment in the year. While elections in the US and the EU could result in weaker support for clean energy, these are to an extent offset by progress at COP28 and the extent to which electorates recognise climate change in the face of almost unavoidable evidence.

The Joy of Techs - Cavendish Technology quarterly sector note

£23.3bn in enterprise value has been returned to AIM technology shareholders over the past six years in the form of 51 public to private takeouts, including 10 in 2023 alone with the takeovers of Smoove* and Tribal announced in early October. With UK valuations appearing cheap and looking more attractive to potential acquirers, we take a moment to reflect on the trends of corporate and private equity bidders targeting AIM-listed technology companies going back to 2017, through the uncertainties