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Impressive results today, spot on expectations - and the 6.5p dividend is well ahead of the forecast 6.1p.
Most exciting is the international growth this year, from a standing start. Ireland is looking really good, and Austria and Germany are now under way.
And FNX are expanding into new sectors like Gaming and Transport and Ticketing.
The new year has started well, with a small funeral-led hiatus.
It's worth remembering that 99% of revenues are repeating, and FNX also has an almost £8m cash pile to play with.
It happened before the market opened, now you can still buy some shares at 177p. Hopefully we will see this one above 180p soon.
Interesting £1,400 buy just now at 185p - way above the published 177p offer price......
FNX are featured nicely in today's new Shares Magazine discussing recent IPOs. There's a table of the best performing IPOs since March 2020, and with a 102.8% gain FNX are on a quick calculation the 5th best performer of all excluding resource and VC-type stocks.
Shares Mag summarise: as follows
"Also meriting mention are under-the-radar names including Fonix Mobile (FNX:AIM), a mobile payments and messaging provider and dividend payer whose shares have doubled since flotation in October 2020. Steered by CEO Rob Weisz, Fonix’s sales and profits continued to grow in the financial year to June 2022 and the company continues to
generate strong underlying cash flows.
In a recent trading update (21 July), Fonix claimed ‘a growing pipeline of client prospects across all sectors and markets’ - existing blue chip clients range from ITV (ITV) and BT to Children in Need."
Moved up nicely recently.
And an interesting new Facebook post from FNX about Apple now testing ads in several of its pre-installed apps including Maps, Books, and Podcasts, as well as on Apple TV+, and Netflix introducing a lower-priced ad-supported subscription plan. All of which is perfectly suited to carrier billing:
Https://www.facebook.com/fonixmobile/
https://twitter.com/surprised_trade/status/1559490241593049090
Gross profit grew by 16.5% to £13.2m (FY21: £11.3m). Adjusted EBITDA1 in the Year grew by 16.3% to £10.3m (FY21: £8.8m). Fnx continues to generate strong underlying cash flows, will pay a final dividend in November 2022.
broker target 230p
Good to see FNX will have an Investor Meet presentation on 23rd September at 12.30 pm after the prelims the day before:
Https://uk.advfn.com/stock-market/london/fonix-mobile-FNX/share-news/Fonix-Mobile-PLC-Investor-Presentation/88787475
Great write-up on FNX from the Private Punter. The Bauer and Nuvei deals certainly sound like they should be the base for further roll-outs and contracts. Interesting to see the German expansion via both Bauer and Gauselmann plus the likelihood of news from Austria in the next few months - that area of Europe is proving particularly fruitful:
Https://martinflitton1.wixsite.com/privatepunter/post/fonix-looking-well-connected-26-07-22
Great news just posted by FNX - a partnership with the German global conglomerate Bauer across Ireland.
And this must have been in development for a while as it's now properly launched so will benefit the current year.
This alone should be lucrative for FNX, but the real golden goose is the likelihood of extensions of this partnership around the world with the mighty Bauer, who have €2.2 billion annual revenues:
Https://blog.fonix.com/fonix-announces-launch-into-republic-of-ireland-and-partners-with-bauer-media-audio-ireland-b9866f7b99eb
"Jul 25
Fonix announces launch into Republic of Ireland and partners with Bauer Media Audio Ireland
We’re excited to announce we’ve launched this month in Ireland.
Across Ireland, our clients can now collect payments for in-app content, games, competitions and digital services from more than 5.1 million mobile subscribers by charging purchases to their postpaid phone bill or prepaid SIM card.
The expansion has started with Fonix managing the mobile interactivity for Bauer Ireland. Bauer Ireland is the country’s largest commercial radio group with five radio brands including the national stations Today FM and Newstalk, two SPIN youth stations and 98FM in Dublin.
Heading into Ireland is another step to achieving our strategic growth plan. We are always looking for new ways to innovate; this is just the start to help us magnify our efforts and strengthen our vision.
Fonix provides a secure, instant and frictionless experience for consumers while also ensuring first-class mobile payment technology, delivering efficiencies for brands.
We look forward to driving growth across this market; our partnership with Bauer Ireland is a first-class example of our connectivity in Ireland being brought to life."
Charles Stanley are no longer a PLC, having been taken over last year by Raymond James Financial, Inc. A US Financial company listed on the NYSE ticker: RJF .
I wonder who the actual holder is.
FNX have a new major shareholder.
Charles Stanley have just turned up with 10.11% of the company, or 10.1m shares.....a very nice commitment indeed:
Https://uk.advfn.com/stock-market/london/fonix-mobile-FNX/share-news/Fonix-Mobile-PLC-Holdings-in-Company/88663657
News of a partnership with Nuvei for online gaming direct carrier billing. And interesting to see the comment about extending into Germany too.
Nuvei are NASDAQ-quoted with a $5 billion plus market cap.....
Https://www.globenewswire.com/news-release/2022/07/21/2483720/0/en/Eyas-Gaming-extends-its-partnership-with-Nuvei.html
Extracts:
"Eyas Gaming extends its partnership with Nuvei
Nuvei is enabling Eyas to accept all relevant payment methods across its entire UK brand portfolio, including carrier billing
July 21, 2022 09:00 ET | Source: Nuvei
London, July 21, 2022 (GLOBE NEWSWIRE) -- Nuvei Corporation (“Nuvei” or the “Company”)?(Nasdaq: NVEI) (TSX: NVEI), tomorrow’s payment platform, announces today it is extending its partnership with online gaming business Eyas Gaming, to provide the operator with a full payment solution across all its iGaming brands. Nuvei has also partnered with UK-based direct carrier billing provider Fonix to enable Eyas Gaming players to bill deposits directly to their mobile.
Building on a successful partnership that launched in October 2021, Nuvei is now enabling Eyas Gaming to accept payments via its industry-leading cashier technology across its popular gaming brands including the Merkur Slots and Merkur Casino in the UK."
"Fonix CEO Rob Weisz added: “Fonix is focused on facilitating conversion and expansion for partners through our carrier billing technology. Integrating Fonix's carrier billing solution means Nuvei can allow Eyas Gaming to turn on carrier billing with the flick of a switch. We're excited to launch our partnership to offer carrier billing to Eyas Gaming's players across the UK, with a future vision to make an impact across Germany too.”
Finncap have retained their 230p target price.
They've increased their forecast for the year just ended to 8.1p EPS, and have retained their "conervative" forecast of 8.8p EPS for this year for the moment.
They forecast 6.1p and 6.6p dividends respectively. And they see an underlying net cash pile of £7.2m rising to £9m.
They summarise:
"After upgrading our FY22 and FY23 gross profit and adjusted EBITDA by +5% in January, we conservatively leave our FY23 forecasts unchanged at this point, ahead of further detail at the FY22 results. We reiterate our target price of 230p based on 20x FY23 EV/EBITDA, and at a price of 153p, Fonix is trading on 12-month forward multiples of 13x EV/EBITDA, 5% EFCF yield, and 4% dividend yield, which compares to finnCap Tech 40 peers on 12x EV/EBITDA and 4% EFCF yield.
As it continues to deliver upon its investment case by expanding with existing clients, and winning new clients from a growing UK and international pipeline, we look forward to FY22 results on 22 September, further updates on its international launches, and the announcement of new contract wins.
- Fonix’s robust investment case –
As we explained in depth in our 23 September report, Fonix is focused upon leveraging its highly scalable, cloud-based platform to expand with existing clients and win new clients as mobile commerce and mobile payments continue to scale. The structural strength of its platform is demonstrated by it experiencing no churn from major customers in six years, and it is diligently expanding its market-leading technology outside of the UK when it is led by its existing clients. The successful execution of its strategy has driven Total Payment Volume (TPV) to £259m in FY22 from £125m in FY18, adjusted EBITDA to £10.3m in FY22 from £3.3m in FY18, and underlying EFCF to £7.3m in FY21, as management explained in more depth at the FY21 results. We conservatively forecast adjusted EBITDA growth of +8% in FY23, and we expect that any upside to our forecasts will be returned to shareholders through Fonix’s dividend payout ratio of 75% of adjusted EPS."
Encouraging year end trading update this morning.
In particular £10.3m EBITDA is nicely above £10.1m forecast, so should result in around 8p+ historic EPS.
The number of customers is growing well and the outlook is very confident:
"Outlook:
With high levels of repeating revenue, a strong exit run-rate for FY22, particularly in newly established international markets and a growing pipeline of client prospects across all sectors and markets, the Board continues to be confident in the growth potential for Fonix going into FY23 and beyond."
With around a 6p forecast dividend, and say 9p-10p EPS this year, FNX looks very good value at these levels imo.
FNX to power mobile donations to the Bob Willis Fund fighting prostate cancer, with a new price point added this year:
Https://blog.fonix.com/fonix-to-power-mobile-donations-for-the-bob-willis-fund-79a26bbf5260
That's a pretty small discount achieved in these markets and bears out the "strong demand" aspect of the RNS.
Never great to see such share placings, but given the rosy fundamentals and prospects I'm inclined to believe that there's genuine strong demand for shares out there, and it's not often that opportunities come up for management and employees to reap the rewards of strong performance.
I personally don't read into the rns directors calling the top, quite the opposite, a strong ii base is often a good aspect for developing and growing companies, if all is stated, no reason to doubt from what I see so far, then FNX is atrracting the iii's in addition to retail and pts it on a stronger footing with longer term value/growth investors on board ..we'll see when the list of new investors is declared
My only concern is if the insiders (Directors, employees) who know the company best are "calling the top" here? Perhaps due to inflationary pressures on discretionary spending...
Todayy's rns should only add value to the sp as no shares on the market to be sold , it should be a straight transfer from one to the other,,,,,,,,,,,,,and FNX has a stronger ii backing that they feel is important...we'll see how much when we see who took what and why they are in a hurry to get their hands on shares in this market at this time.....
Looking strong - still not far off those all-time highs.
Up 15% this week alone, and nearly back at the all-time highs now.
FNX have won the contract to provide mobile donations for the Prince's Trust for the first time:
Https://blog.fonix.com/fonix-to-power-mobile-donations-for-the-princes-trust-awards-on-itv-fb9c6a49a945
"May 26
Fonix to power mobile donations for The Prince’s Trust Awards on ITV
We’re proud to announce that we’ll be providing the text donation mechanic for The Prince’s Trust Awards. SMS will feature on the awards for the first time in its history. Hosted by Ant & Dec, The Prince’s Trust Awards will air today on ITV.
The Awards recognise young people who have succeeded against all the odds, improved their chances in life and had a positive impact on their local community.
Fonix will be working with The Prince’s Trust and ITV to provide a text-to-donate platform, enabling donors to send a text message to donate either £10, £20, £30 or £40, all charged to their mobile phone bills.
The Prince’s Trust helps young people from disadvantaged communities to get their lives back on track by giving them the confidence and skills to live, learn and earn. Founded by HRH The Prince of Wales in 1976, the charity supports 11 to 30-year-olds across the UK who are unemployed, those struggling at school or at risk of exclusion. Since its inception The Trust has supported more than one million young people in the UK.
At Fonix, we have seen the huge impact of text donations across televised campaigns and are delighted that this will feature on The Prince’s Trust Awards show. We’re looking forward to seeing the results and the difference it makes to help support young people."
At 140p it's still only on a current year P/E of 15.9. And less if you strip out the cash pile.
Pleasing to see the options issued today to the CFO and other employees have a 143p exercise price. None of this nil cost rubbish often used by other companies.
Hopefully the timing of thie issue also reflects FNX's belief that this is as good (i.e low) a strike price as the eligible employees will get.
Mark Watson-Mitchell updated on FNX on Master Investor on Friday night as follows. The share price has inevitably slipped a little in the current markets, so looks even better value imho.
MWM has now increased his target price to 180p - plenty of room for him to increase again towards Finncap's 230p target!
"Fonix Mobile (LON:FNX) – I set a new Target Price
Simon Beresford, Director of Fundraising and Marketing of the Disasters Emergency Committee, stated that:
“We’re thankful to Fonix for enabling mobile donations so quickly and to the generous UK public whose donations will go on to make such a difference. As humanitarian needs continue to grow, the money raised will help to provide vital support to families caught up in this devastating conflict.”
Fonix has been the mobile donation partner for the Disasters Emergency Committee (DEC) Ukraine Humanitarian Appeal.
Over £6.8m has been made in mobile donations since the beginning of March.
This is a wonderful example of how Fonix can work. It provides mobile payments and messaging services for clients across media, telecoms, entertainment, enterprise and commerce.
When donors or consumers make payments, they are charged to their mobile phone bill. This service is primarily used for ticketing, digital services, memberships and also for charity and other donations.
Over the last few years this £150m capitalised group has been gradually building up its revenues and its profitability.
From £31.1m revenue in 2019, £40.1m in 2020, last year to end June it saw £47.7m total.
Its adjusted pre-tax profits, in the same time period, have grown from £5.2m, to £7.3m then £8.3m last year.
Analysts Michael Hill and Andrew Darley at brokers finnCap are estimatin, g that this year, to the end of next month, the group will report £53m revenues and £9.6m profits, earnings of 7.9p (6.9p), covering a 6.0p per share dividend (5.2p).
The analysts suggest that the group’s shares have a lot further to climb. They see current year figures of £58.4m sales, £10.6m profits, 8.8p earnings and 6.6p dividend per share. Their price objective is 230p.
Last night the group’s shares, which last May peaked at 179.95p and fell to a Ukraine conflict low of 118p, were looking much stronger at 15op.
I now set a new Target Price of 180p."