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Good news confirmed on FNX' web site:
Https://blog.fonix.com/fonix-secures-two-year-contract-renewal-with-comic-relief-82be3d538dd6
"Fonix secures two-year contract renewal with Comic Relief
Mar 25
Fonix is delighted to announce that it will continue to power SMS donations for both Red Nose day and Sport Relief over the next two years. The contract renewal is testament to the great collaboration between the two companies and is a fantastic opportunity for Fonix and Comic Relief to further drive innovation and help to make a difference to the lives of millions of people around the world...
....During the telethon the new £40 SMS donation price point was promoted, accounting for the highest proportion of SMS donations generated that evening. Also new to the 2021 campaign was the Great Comic Relief Prizeathon, which aired after the telethon and rounded off the evenings events. This unique show offered viewers the chance to win four fantastic prizes, with the option to give a voluntary £10 donation once they had texted in their competition entry. Viewers were delighted when a winner, who had been selected during the evening using Fonix’s Winner Picker, was called during the live show and awarded a brand new Mazda electric car!
Fonix’s journey with Comic Relief started back in 2015 and during this time there has been many innovations; from an increase in donation price points to Gift Aid initiatives. This campaign saw a fantastic £11.1 million raised through the power of SMS donations alone. It has been a great journey so far with Comic Relief and we are delighted to be their chosen provider for future campaigns."
@FNX tweeted earlier today that Comic Relief had renewed their contract. Not new, but helps underpin forecast earnings.
GS
Why don’t you upgrade with ii to the super trader, £20 a month platform charge (covers trading a/c and isa a/c) but the trades are £3.99 each instead of £7.99.
Plus remember you get your free credit each month on each account for £7.99 at the moment.
If your trading enough anyway it makes sense to upgrade, no need to move then.
Hello guys, sorry to hijack the thread but can anyone recommend a new, cheap broker? I'm with ii atm but at £8 per trade it feels a bit pricey. I'm wary of the free online apps as they've so many bad reviews. Any recommendations would be appreciated.
Thanks
Fraser
Thanks for that as I'm not a subscriber - here's the link anyway for the record:
Https://app.stockopedia.com/content/stock-pitch-fonix-mobile-lonfnx-782679?order=createdAt&sort=asc&mode=unthreaded
Stockopedia Investment Club carried out a "stock pitch" of Fonix and by 14-1 recommended a buy for this stock. They don't normally deal with early IPO's, so this is a very good indicator
@rivaldo - thanks. Not lot new here, but it adds to the noise. FNX has all the hallmarks of a cash cow and I look forward to a combination of capital growth (it has done quite well so far) and a good revenue stream.
GLA
GS
"Fonix reports impressive maiden interim results
Fonix which provides SMS and carrier billing in the UK for the media, charity and gaming sectors, reported strong maiden interim results for the period to December, 2020 after listing on AIM in October, 2020. Revenues were up 25%, gross profit 22% and Adjusted EBITDA 28%, reflecting good cost control.
Kestrel Insight
Excitingly for the future, Fonix won 21 new customers during the first half from a base of 120 customers at the start of the financial year. This is yet to deliver significant revenues but is expected to stimulate future growth.
In addition, Fonix is close to launching international services, supporting several existing gaming customers in their overseas expansion: mobile can play a useful role helping gaming customers ensure compliance with local regulation and controlling spend levels.
Fonix operates in a regulated sector and boasts over 30% market share. It benefits from negligible customer losses and consistent growth from existing accounts, which delivered 35% compound revenue growth prior to IPO. CEO Rob Weisz impresses us with his comprehensive knowledge of product, customers and the market, and tight control of the business.
Fonix intends to pay out 75% of profit after tax in dividends, generating a forecast yield of 3.5%, making Fonix one of the highest yielding companies in the AIM technology sector. Not a bad start to life as a quoted company, which has seen a 60% share price rise since IPO.
Kestrel invested in Fonix at its IPO in October 2020, becoming its second-largest external shareholder.
Https://kestrelpartners.com/fonix-reports-impressive-maiden-interim-results/?utm_medium=email&_hsmi=115339238&_hsenc=p2ANqtz-9wzHPZI22MBxdx6u-bmyjL2e4RozvGIdhX4nPkMmC5CSWfFbH3UXoIriXoMRjBIr7FmZi_kMtxJExqPmjcKjZ5jW-9MA&utm_content=115339238&utm_source=hs_email
@rivaldo
Thanks for the reply. I was thinking something similar as to what you have replied today. I guess i was being a little dense afterall. Thanks once again.
Mark.
Not all contracts are RNSable!
PLCs can only issue an RNS if the contract is material in terms of certain tests, i.e (from memory) 10% of revenues, historic profit etc. Certain companies bend these rules more than others....and these tend to be less trustworthy.
So this contract could (in theory) be anything up to say 9.99% of historic turnover, profits etc. I'm sure it isn't - but it certainly looks like a good win. More to the point, it's great that FNX put news like this on their web site. Many don't.
A contract win RNS is generally a rare event. Patience is the key when investing.
As much as this is great news, it would have been better in the form of an RNS surely, or am i just being dense?
Mark.
FNX have just announced a new customer:
Https://blog.fonix.com/kmfm-radio-first-to-host-sms-and-carrier-billing-for-competitions-964cc64d72b6
"KMFM radio first to host SMS and carrier billing for competitions
Mar 2
We’re thrilled to announce that KMFM radio has joined Fonix to power its radio competitions via SMS and carrier billing. KMFM is a radio station formed from seven Independent radio stations and one digital station owned by Iliffe Media. They broadcast top 40 music with local travel, news and information.
Being one of the first to host SMS and carrier billing together for their online competitions, Fonix offers KMFM listeners multiple avenues to make seamless payment via mobile billing. Participants have the option to pay by mobile or they can text a keyword to a shortcode to enter.
Fonix’s platform was chosen due to its reliability and capacity to organise live listener engagement. Listeners can text into their favourite show, this information collates and feeds into the Fonix’s Live page. The Live page is a very important organisational feature for the DJ’s and producers of the show, allowing the live segments to run smoothly. KMFM manages all of its campaigns through Fonix’s Campaign Manager, right from set up through to choosing and contacting a winner. The ability to pick a winner quickly is an important factor in the delivery of a successful radio competition."
Very good new blog post today by Martin Flitton covering the results - the analyst presentation sounds very positive, and there are many opportunites for growth:
Https://martinflitton1.wixsite.com/privatepunter/post/fonix-hitting-the-mark-22-02-21
Agree with the implication that forecasts will be exceeded. Assuming that is the case and that FNX sticks to its dividend policy of 75% of adjusted EPS than I think we can expect a full-year dividend of better than 5.1p
GLA
GS
Finncap have retained their 200p price target, and note that their forecasts, which they've also retained, are "conservative".
They summarise:
"Even on conservative forecasts, Fonix is undervaluedat 16x12m forward EV/EBITDA with EBITDA growth of 12% and anEFCF yield of 4%. AIM payment and finnCap Tech 40 index peers are trading on 12m forward EV/EBITDA of 19-30x with 10-26% EBITDA growth,and EFCF yields of 2-3%."
Very good results - and signalling a likely beating of forecasts for this full year to 30th June:
https://uk.advfn.com/stock-market/london/fonix-mobile-FNX/share-news/Fonix-Mobile-PLC-Interim-Results/84391510
The H1 3.6p adjusted EPS means 53% of the 6.8p EPS forecast for the year has already been achieved. The 1.7p interim divi is in line with the 5.1p forecast divif or the year.
All divisions are performing well. And international expansions is happening already:
"we have started our planned expansion into new jurisdictions and regions and expect to be operating in at least one mainland European market in 2021. We are adopting a targeted client led approach to expansion, with a focus on mature Carrier Billing markets with robust regulatory frameworks."
When you consider the stratospheric valuations attributed to loss-making (or only just profitable) moperations like BGO and BOKU, then FNX is surely still trading at a very reasonable valuation indeed.
Master Investor (M W-M - 19 February 2021) :-
"Fonix Mobile (LON:FNX) – just get ready to dial in
Next Monday sees this UK focused mobile payments and messaging company present its interim results for the six months to end December.
The shares have performed well this month, touching 160p at one stage this week before ending the day yesterday at 157p.
My Target Price could be achieved very soon.
(Profile 01.02.21 @ 136p set a Target Price of 170p)"
https://masterinvestor.co.uk/equities/small-cap-round-up-featuring-ebiquity-braemar-shipping-corero-network-security-n-brown-group-fonix-mobile-and-volution-group/
@lemonade311
Thank you for doing this, it is much appreciated.
Mark.
Hi GSmiley. Welcome .
Just a quick reminder that a week today there should be some half year results being announced for Fonix Mobile.
Just introducing myself - I bought in just over a week ago (late I know) and wrote a hello note then which I must have failed to post as I cannot find it. I recognise one or two names from other bb's over the years and so look forward to some informed and intelligent comments.
GLA
GS
Hi,
Here is my valuation on FNX:
https://tracktak.com/stock-valuations/FNX.LSE?cagrYearOneToFive=0.17&ebitTargetMarginInYearTen=0.2&yearOfConvergence=3&salesToCapitalRatio=1.8
Thanks
First time Fonix has hit 156. May be more to come. Wonder what's causing the rise...any news anywhere?
The article is an excellent and informative summary . If I might add a couple of things....
- the year end is 30th June, so not too long to wait until next year's 7.6p EPS forecast comes into play
- Finncap themselves state that their forecasts are conservative in that FNX achieved 52% of their gross profit forecast in H1
- FNX's peers trade on an EV/EBITDA of 20-28 times, whereas FNX are on a multiple of only around 15.
Here's a direct link:
Https://martinflitton1.wixsite.com/privatepunter/post/fonix-making-the-connection-11-02-21
With Fonix being new to the market, it'll be interesting to see if any T10 traders start to come along very soon