Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
BERENBERG RAISES COMPUTACENTER PRICE TARGET TO 3,000 (2,600) PENCE - 'BUY'
From their January update; Gamma Communications is a business telecommunications provider. We believe that the company possesses all three of the core intangible strengths which the Economic Advantage process seeks out: intellectual property, distribution network strength and high recurring income. Over many years, Gamma has developed market-leading proprietary technology solutions in the area of cloud communications, such as SIP Trunk lines and hosted PBX systems, where it enjoys high market shares. The company goes to market predominantly via a network of channel partners built up over a long period of time, while the majority revenue is earned on recurring monthly contracts. Having already built up a leading market position in the UK, Gamma has expanded in recent years into mainland Europe, where it sees considerable further potential for growth.
BERENBERG RAISES NEXT FIFTEEN COMM. PRICE TARGET TO 780 (630) PENCE - 'BUY'
Very good. Where did you pull your 2020 Consensus estimate of £136 million from? I wish they'd write in the reports for ease
Let’s see if we get a Two take counter offer
£124
Yes the offer is too low. £1bn more reasonable
My understanding is £1.20 in cash per share then £3.65 in Take Two shares for every Codemasters share. So an example holding of 1000 CDM would net £1200 cash then £3650 worth of TT shares. Converted to c.$4700 would give 26 TT shares priced at $180. These are estimate/rounded figures
510p TP
“Taking into account the continued good performance across the business and the property related savings, we are confident of modestly exceeding market expectations for the year”
£17
630p
761p TP
Video game specialist Codemasters is another British company to have defied the prevailing economic gloom.
Best known for its F1 series, Codemasters is behind several other racing car games, such as Project Cars, Dirt and Fast & Furious. Lockdown left many people with time on their hands and gaming proved a useful distraction. Sales rose across the industry as gamers twiddled consoles for hours on end, with high-quality titles particularly popular.
These are the types of game that Codemasters focuses on, and chief executive Frank Sagnier said last week that trading had been exceptionally strong in recent months so results for the year to March 2021 would be significantly ahead of expectations.
Sagnier admits that recent sales are less turbocharged than when the lockdown was at its peak, but the group is still selling more games than before the pandemic started. Some people who never played before have discovered the joys of gaming. And old-timers have turned back to past car racing favourites. The latest Formula 1 title, F1 2020, was launched at the start of last month and has proved extremely popular, with top scores from gaming enthusiasts.
Fast & Furious Crossroads, unveiled ten days ago, has also made good initial progress.
Gaming groups tend to make most of their money from new titles, so Sagnier's optimism is encouraging, particularly as Codemasters still has two more two big games to launch this year – Project Cars 3 and Dirt 5, coming out later this month and in October respectively. After last week's trading update, analysts expect a 57 per cent increase in sales to £120million for the year to March 2021, with profits soaring 63 per cent to £30.6million. No dividend is scheduled, but the company is accumulating cash, and payouts may be on the cards as the business expands.
There is plenty of potential for further growth. Warwickshire-based Codemasters bought Fast & Furious developer Slightly Mad Studios in November last year and integration has gone well to date.
But the deal should yield many more opportunities over the next year or two.
Codemasters (LON:CDM), the award-winning British videogame developer specialising in high-quality racing games, confirmed that trading since the start of the year has been particularly strong with revenue and adjusted EBITDA for the year ending 31 March 2021 now anticipated to be significantly ahead of current market expectations.
These revised expectations are driven by the particularly strong performance from both the latest release of F1® 2020, and the continued strength of its back catalogue of games. Fast & Furious Crossroads, which was released on 7 August 2020, has to date performed as anticipated, and pre-orders for the title launches scheduled for the remainder of the year are also in-line with expectations.
The house broker upgraded revenue forecasts for 2021 by nearly 20% to £120m, £58m of which is represented by F1. Cash EBITDA forecasts were raised 13% to £30m, which allows for higher royalty costs.
In this atmosphere of testing uncertainty, AB Dynamics (LON: ABDP), a specialist provider of advanced testing systems and measurement products to the global automotive sector, has flourished. Founded in 1982 as a vehicle engineering consultancy, the group arrived on AIM in 2013 at a share price of 86p and market capitalisation of only £14m. Although the shares are well down on previous highs, they are still up over 1800% since IPO and the business looks in great shape with plenty of cash and new manufacturing facilities to support its growth.
Its interim results for the 6 months to end February saw revenues increase 34% to £34.7m, or 11% excluding the contribution from acquisitions. The Track Testing sector contributed the majority of growth, with sales of their Advanced Driver Assistance System test products increasing 44%. It is well placed to benefit as the testing of active safety systems continue to evolve, with automotive manufacturers required by regulation to ensure that new vehicles have suitable active safety and driver assistance systems to minimise the risk of accidents and injuries. Growth has also been boosted by its acquisition of rFpro, a leading developer and provider of simulation software, and Digital Twins which provides for virtual representations of public roads, test tracks and racing circuits.
Unlike much of the industry, AB Dynamics is reliant on the volume of vehicles tested rather than sales. It has therefore not been directly impacted by the slowdown in car sales. The Group also boasts a strong, debt free balance sheet and its significant net cash of £35.1m will provide resources to withstand the likely impact of the pandemic and help support the expansion of its facilities.
AB Dynamics is in an excellent position to benefit from the market transition to electric and autonomous vehicles. As car manufacturers look to diversify into this growing market, the company is set to profit from the increasing demand for advanced testing systems of these cars, such as Tesla’s.
Part of the Buffetology stable has invested here during July due to the moat like qualities of the companies within the racing games space.
Ahead of expectations.. a retest of ATH's could be on the cards today
And still trading at a hefty discount to peers..