Strong Buy here is why2 Oct 2020 21:10
Revenue +20% to £14.0m (as pre-announced) with recurring revenues +19% to £8.4m, adj EBITDA £3.0m (H1'19: £1.7m), adj PBT £2.1m (H1'19 £0.8m) and dil EPS 9.0p (H1'19 1.9p). Cash pre-announced at £9.1m as of 30 June. As in July update, co notes all parts of business performed 'well', also highlighting increased earnings visibility with transition to SaaS and $1m contract win with South Korea-based Biotoxtech. Performance of leadscope 'especially pleasing'; ex. Leadscope, organic revenue grew +12% to £13.1m. Post period-end completed £15.75m fundraise to accelerate acquisition strategy and secured £0.7m contract win with a 'top 30 pharmaceutical company'. Trading into H2 'in line' with Board's expectations - anticipates momentum in H1 and post period-end will continue for full year. Trading at 3.5x Dec'20 EV/sales and 29x P/E, or 3.3x and 30x Dec'21.