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I didn't hear anything new at the presentation but they say boring is good. Very undervalued.
Https://www.thisismoney.co.uk/money/investing/article-13148657/MIDAS-SHARE-TIPS-Tailor-profit-management-consultants-Elixirr-advisers-kings-fashion.html?ico=mol_desktop_money-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Findex.html&_gl=1*1boyrl0*_ga*ODI5NDY2MDg4LjE2NzkxNzI1NjM.*_ga_XE0XLFFF16*MTcwOTQxNzIzMi43NS4wLjE3MDk0MTcyMzIuMC4wLjA.&_ga=2.225973017.2036883339.1709414850-829466088.1679172563
Elixirr plc posted Interims for H1 2023 this morning. Revenue was up 23% to £41.1m and the Group delivered record revenue in three of the six months in the period. There was a 9% increase in adjusted EBITDA compared to H1 22 totalling £12.3m, maintaining the Group’s strong track record of profitability with an adjusted EBITDA margin of 30%. Adjusted diluted EPS was up 23% to 18.5p. The balance sheet remains strong, net cash was £19.5m with no debt. Valuation remains ok with forward PE ratio 3rd quartile for the sector at 15.7x following a robust break higher since late August. But the share has traded on much higher multiples in recent years and valuation should not be a constraint on further gains. Meanwhile the share is building some short-term momentum. BUY....
...from WealthOracle
wealthoracle.co.uk/detailed-result-full/ELIX/798
Look good, seem to have navigated the current tougher conditions better than many of their peers.
If interest rates have peaked I expect a lot of the higher quality AIM stocks to re-rate quite quickly. I note two such stocks, Instem & Ergomed have been acquired in the last 2 trading days, both at valuations equal to their 2021 highs. ELIX have made plenty of progress in the last 2.5 years yet shares are currently trading level with early 2021, which is completely illogical.
Interims should land in the next couple of weeks and I'd be very surprised if we don't see further upgrades.
It appears it's coming back to life again.
Undervalued given how fantastic they have performed.
PER (f) should be in 20s
At the moment, current PER = 16.
Too cheap for a quality growth company.
Finncap's latest report out.
Strong growth across the board, some margin erosion but this is the trade off for growth.
Organic metrics grow double digit, margins remain super healthy, even on a reported basis with Net Income margin coming at 18%! Cash conversion reduced a bit to 79% but still remains very strong imo.
Outlook is strong, FY 22 momentum “has accelerated during Q1 2023”, with three record revenue months, absolute revenue growth of 52% and underlying organic revenue growth of 19%, a “Strong pipeline for the remainder of FY 23”. Management note they are upgrading FY23 expectations to £85m-£90m revenue (FactSet consensus yesterday was £86m) at an Adjusted EBITDA margin of 28-30%.
Valuation: undemanding with 15x fwd P/E, EV/EBITDA 9x ; uwarranted discount to peer group, it's a bout time this stock rerate... STRONG BUY
Really surprised this has fallen back to 473p ask, some 10% below the post trading update high. The current market cap is £217m, net cash £20m & 2023 forecast EBITDA £24.9m, so ignoring 2023 cash generation / any potentially accretive acquisitions, this is trading at an EV/EBITDA of <8x.
Accenture meanwhile trades at some 19x 2023 EBITDA
FTI Consulting trades at 15x
Super cheap & the market will realise this when results land on Monday IMO.
Thst would be true of the whole market? I am more bullish on the market because everyone is bearish
My guess is that the share price will stay suppressed for some time as we're still in a cost of living crisis.
Results soon will shine a light on this beauty. 25% year over year eps growth
And it's still under the radar.
$elix found this on twitter https://aimcompounders.substack.com/p/elixirr-can-be-a-magical-compounder?utm_source=twitter&utm_campaign=auto_share
I got around to it and the presentation is a must watch, hope they get to the 1bn services unicorn in 4 years
20 million of cash too and even if they did strike all the options at 3.20 each thats 34m of acquisition firepower from the exercise that they will probably create more value accretion out of. They have phenomenal cash generation
I would not ordinarily invest in a people business that is reliant on a smallish number of "partners" to generate most of the revenues. However, after watching the recent excellent investor meets presentation I am willing to overlook this anxiety and I have taken an initial position. I am reassured by their innovative staff retention strategy, which for the reason I have just described, is key in a business like this and seems to be working. The only negative of this strategy is the dilution it causes. Currently the outstanding share options are very high at 10.8m shares (strike price £3.16). Whilst only a very small number of these are currently exercisable it is important to be aware that over the coming years there will be a significant amount of dilution. Current share count is 42.6m shares so we are looking at an increase in share count of over 20%. This is obviously quite significant so investors should be aware.
I have to say, it was one of the best company presentations I have seen. The management team came across as very credible, extremely focused and determined to succeed. They have set themselves the goal of becoming a $1B market cap company in the next 3-5 years. Whilst this is a stretch I the current growth trajectory and quality of the management team and strategy make me think its doable. In particular, I like the acquisition strategy, which creates the ability to cross sell. Its clear from the numbers that this strategy is proving to be extremely effective and is already bearing fruit.
Past performance of the business has been stellar. The numbers speak for themselves. They are making hefty margins and growing at CAGAR 30%. Whilst, they describe/market themselves as a challenger to the big consulting firms they have very lofty ambitions and hope to emulate the success story of Accenture which IPO'd in 2001 at $14.50 per share. In December 2021 shares in Accenture were trading hands for > $400.
Current price at 500p does not look demanding at c 15 times FY23 earnings. The most recent trading update indicates that current forecasts for FY23 might be on the light side so potentially we are trading on more like 12 - 14 times earnings.
Anyway, I would encourage anyone who has not watched the investor meets presentation to do so. I think Elixirr has the potential to do great things.
https://www.youtube.com/results?search_query=elixirr
agree. a matter of time before they do another acquisition that upgrades eps again as well
Suspect we'll see shares back at £6 before results are announced on April 3rd, a mere 19 trading days away. Crazy that it's trading flat vs the price 2 days before the 27/02 trading update which upgraded 2023 and flagged the business was trading ahead of these figures after the first 2 months... without the illiquid drop on the Friday this would already be sitting at £6+
superb post we also know the year has started above the guidance so upgrades to continue even before acquisitions
The most impressive thing here is how they've massively outperformed forecasts released at the IPO via organic & inorganic growth, without taking on a penny of debt.
Their first finncap initiation note from July 2020 forecast 2022 EPS of 18.9p and closing net cash of £25.9m. In the end 2022 EPS will hit ~29.8p and net cash will be >£20m. This is after paying $14m initial consideration for iOlap and £4.3m for Retearn + Coast. Dividends have also come in at more than double the initial expectations of 4.7p for 2022, highlighting just how well they've been doing.
Looking ahead 2024 EPS is currently forecast to be 36p, however if they continue growing in a similar vein to the last 2 years (and yesterday's update suggests they will) and can execute their planned strategy of 1-2 acquisitions per annum at around 20-30% of market cap, then I think 2024 EPS could easily exceed 50p.
Given this genuine growth potential, I think you can make a case for ELIX trading at double today's valuation, at £5.20 I think it's the best GARP stock on AIM / LSE by some distance.
20x PE is 674 pence target
Looks like sells - where was their elixir when they most needed it?
A couple of big delayed trades from Friday going through @ 415p, someone is not going to be happy, that cost them at least £100k.
Surprising versality by ELIX - meeting upgraded expectations + Q1 ahead of expec - incredible performance.
Must be highly rated by their clients.
Spate of bad news around management consultancy yet they are performing so well. Respect!