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Agree with your thoughts Rivaldo. Share price should hold up well with the smooth sale..
Clearly there was strong Institutional Investor demand at 225p with 6.7m shares sold, significantly higher than the 4.44m shares floated in yesterday's RNS.
Placing done nice and smoothly, and hardly a surprise given the significant shareholdings of the three major holders - which remain extremely weighty at 33% of the company.
Given the apparent demand it's possible that the share price will stick at the 240p mark or even higher, but whatever the case I suspect it will remain pretty strong.
Especially given the signal given the by the 907,000 share buyback at the same price, with those shares now quickly cancelled.
An hour later and another RNS.
Fonix to take opportunity to buy back 1m shares using surplus cash - to be held in treasury.
Https://uk.advfn.com/p.php?pid=nmona&article=93681279
To "meet institutional demand".
- I guess price will drive down tomorrow...
Looks like FNX powered a good year for Comic Relief, up 18% on last year:
Https://www.fonix.com/blog/10th-major-campaign-with-comic-relief/
"10th Major Campaign With Comic Relief
27/03/2024
Over £40m was raised for Comic Relief’s ‘Do Something Funny For Money’ campaign on Friday 15th March, £6 million more than last year. This year’s donations bring the total raised to an unfathomable £1.5 billion since the launch of the charity in 1985, helping the lives of over 100 million people! A fantastic achievement and one Fonix is proud to play a part of.
Fonix has had a strong relationship with Comic Relief since 2015, providing text-to-donate solutions to all 10 major campaigns with them, including The Big Night In which raised money in 2020 to support those affected by the COVID-19 pandemic. Fonix has raised over £70 million through text-to-donate solutions with Comic Relief and their fantastic telethons, encouraging donations through the amazing entertainment they provide year in and year out.
Text donations and Delayed Donation are powerful tools in the charity sector. They are an effective way to maximise donations where there is constant interactivity with the audience and mass volumes of donations. Comic Relief has raised as much as £13m via text donations in a single campaign."
Cavendish's extensive 21 page update note post-results includes some points worth noting:
- "Today’s release highlights: that the Board is considering options for the use of surplus cash including special dividends or buybacks; a strong start to H2 24 that is comfortably in line with our upgrades in January; and that management has identified multiple European countries for future expansion, with a new market potentially being announced in 2024"
- "A robust investment case – Fonix is focused upon leveraging its highly scalable, cloud-based platform to expand with existing clients and win new clients as mobile payments continue to scale. The structural strength of the platform is demonstrated by no churn from major customers in seven years, and it is diligently expanding its market-leading technology outside of the UK when led by existing clients, including becoming the market leader for interactive services in Ireland less than one year after FY23 launch. The successful execution of the strategy has driven Total Payment Value (TPV) to £268m in FY23 from £125m in FY18, adjusted EBITDA to £11.6m in FY23 from £3.3m in FY18, and underlying EFCF to £9.0m in FY23. We expect that any upside to our conservative forecasts would benefit from strong operational gearing through to EFCF, which would be returned to shareholders through the progressive dividend policy"
- "Since IPO in October 2020, Fonix has delivered a perfect record of six consecutive gross profit upgrades and seven consecutive adjusted EBITDA upgrades, as the platform’s momentum continues to build"
- "Through H1 24, management has continued to strategically focus on larger opportunities, including significant enterprise deals in the UK and international markets, and driving greater volumes of transactions with existing clients. Combined with the heterogeneity of the customer base, management are less focused on the absolute number of customers using the platform, and will move away from providing granular customer numbers in the disclosure. Instead, the disclosure will continue to confirm the customer base is over a given size, such as today’s release confirming the active customer base is over 120, following 122 active customers at FY23 results"
FLYING‼️
285
The Simon Thomson and Master Investor readers can power us to the close Cavendish 300p target.
Should generate some more interest tomorrow:
Https://www.investorschronicle.co.uk/ideas/2024/03/12/a-payments-business-that-s-returning-cash-to-shareholders/
Cavendish have increased their target price to 300p (from 270p) this morning.
The H1 results can't be faulted, with EPS up over 16% and the cash pile up 33% to over £11m.
And FNX are promising a special dividend or further buybacks with that cash pile.
Note that:
- December was a record month and H2 has started strongly
- 99% recurring income
- major new product now released
- further international growth being promised
- "strong pipeline of commercial opportunities, including significant enterprise deals in the UK and overseas, which provides the Board with confidence in the ongoing success of the business"
Love the management here. They underpromise and overdeliver and have barely put a foot wrong.
New video on "what Fonix does to facilitate mobile interaction and SMS payments for some of the UK’s leading brands":
Https://www.fonix.com/blog/mobile-interaction-and-sms-payments/
HTTps://www.fonix.com/blog/welcome-allwyn-will-text-be-next/
Two buys just reported late from yesterday totalling around £116,000 at 256.36p - nicely above the 255p offer price. Very keen.
And good coverage of the SuprNation deal here:
Https://www.telemediaonline.co.uk/gaming-platform-suprnation-adds-dcb-to-enhance-onboarding-in-deal-with-fonix/
Informative post from Hydrus elsewhere about the contract win:
"Looking at NY Spins looks like you can deposit between £10 and £40 using Fonix (which is named with pay by mobile).
It’s actually a great option for gambling because I think you can’t use credit cards anymore in the UK in gambling websites due to new regulations and many people don’t like using debit cards because of course the lack of protections.
Could be a big growth area"
FNX have won an appointment as Suprnation's mobile payments provider:
Https://www.fonix.com/blog/suprnation-select-fonix-as-their-mobile-payments-provider/
I note that Suprnation were acquired in November by DoubleDown for £30m. More importantly, DoubleDown have around $75m quarterly turnover so are a very substantial company, and they said this in November:
"DoubleDown Interactive says it plans to use its recent acquisition of SuprNation to build on its success in Q2 and pursue “high-growth” opportunities in markets around the world"
which should mean lots of opportunity for FNX in Suprnation and potentially opening doors in DoubleDown globally:
"SuprNation select Fonix as their mobile payments provider
31/01/2024
SuprNation has launched our Pay By Mobile solution on Duelz, VoodooDreams and NYSpins, making Fonix their mobile payments partner and allowing them to offer players direct carrier billing. Initially launching in the UK, Fonix’s Pay By Mobile will be used to drive new acquisitions, introducing new players and providing them with a frictionless deposit option. With growth as a key objective, direct carrier billing will bolster the cashier user experience and bring further innovation to the SuprNation sites.
etc"
Lovely to see FNX beating expectations once again. Finncap have retained their 270p target price for the moment, but when the interims are published this may be increased.
This is encouraging in particular:
"The business continues to make good progress on further international expansion and we hope to make announcements relating to this later in the year."
Along with the promising outlook statement:
"With high levels of repeating income, continued growth from existing clients and increasing opportunities for expansion in international markets, the Board remains confident in the growth potential for Fonix going into H2 FY24 and beyond."
Https://www.investegate.co.uk/announcement/rns/fonix-mobile--fnx/trading-update/8003155
Also good to see Rathbone Investment Management buying and disclosing going above 11% yesterday afternoon (though their holding does go up and down somewhat):
Https://www.investegate.co.uk/announcement/rns/fonix-mobile--fnx/holding-s-in-company/8006837
A share price never moves in one direction.
Big drop today a lot of selling anyone have an idea why
Great to see new all-time highs here.
HNY to all FNX holders - much more to come here.
Trying to buy into this been following for months now looks solid and undervalued looks a good one for the long term
Very bullish new article here - "massively undervalued"....
Https://uk.finance.yahoo.com/news/brilliant-uk-growth-stock-think-143000498.html
Conclusion:
"I don’t think it has put a foot wrong since its 2020 listing. To me, that means 2024 could be a breakout year"