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https://www.londonstockexchange.com/news?tab=news-explorer&period=daily&headlinetypes=1,2
- Record 2021 bookings, with over 225% growth year-on-year
- Multiple new royalty-bearing 400G/800G/1600G (1.6T) chiplet wins in Q4 2021
- Strong pipeline underpinning continued revenue growth and profitability in 2022 and beyond
- Total new bookings for Q4 2021 were US$25.5m, of which US$18.5m are license and related, and US$7.0m are estimates of potential future royalties. These were primarily driven by North American and South Korean customers. - This brings total FY2021 bookings to US$244.7m of which US$220.8m are license and related, and US$24.0m are estimates of potential future royalties. - This represents over 225% year-on-year increase in total bookings vs. FY2020, which exceeds targets set at the IPO and surpasses the Company's increased guidance in September 2021. - Multiple chiplet design wins closed in Q4 2021 with North American and Chinese customers for 400G/800G/1600G (1.6T) solutions, highlighting the importance of this emerging semiconductor trend.
Shoe Zone
(Aim: SHOE), 110p
Shoe Zone is a well-known high-street brand that has emerged from the pandemic a far better business than it was pre-Covid-19. The shoe retailer has accelerated its digital offering and revenue has grown to £30.6m in 2021 from £10.6m in 2019. The board is now investing in its digital arm as well as transitioning from the traditional smaller high-street unit to bigger “box stores”, which boast much more floor space and are also more profitable. These units can stock more ranges of shoes and also require fewer staff, implying a boost in revenue per employee.
Shoe Zone is cash generative with net cash of £14.2m compared with £6.3m in 2020. We also know the business has been performing well recently as the full-year trading update on 13 October was followed by an upgrade to profits a few weeks later, on 1 November.
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The directors have increased their already weighty positions recently. Brothers Charles and Anthony Smith, the chairman and CEO respectively, own more than 50% of the stock, with Anthony holding 29.85%. This surely reflects confidence – if he bought any more stock he’d be forced to make a bid for the company (the threshold is above 29.99%).
Clearly, one big risk is further restrictions or another lockdown. Online sales are still far from the dominant source of revenue and, while they may receive a fillip in the event of shops shutting, it’s unlikely to be enough to cover the shortfall. The growth in Omicron cases is not good news for the company.
Shoe Zone is trading on a p/e of eight, which means the market currently either doesn’t believe in the company’s future potential, or its strong prospects have been overlooked. I’m hoping it’s the latter.