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Mark Braund presented at Mello and came across very well imo.

The LaddersFree acquisition will be earnings enhancing on its own terms, but REAT can add significant value and accelerate LaddersFree's organic growth:

- by increasing sales and marketing, which to date has been minimal
- the model is scalable "by introducing services to other companies and through new and existing relationships with other FM service providers"
- diversify current service offering, and up-sell and cross-sell the company's other services
- "up-sell national services to existing customers who use the company's services locally or regionally"

I topped up again last week.

The outlook in the prelims should be extremely rosy given the oil price and the rig count increase - and the CEO's bought almost 285,000 shares in the last couple of months.

Plus any news on SABER could be gamechanging.

Last week's rig count was overall down one, falling for the first time in 31 weeks - though the onshore count was actually up one, with only the offshore count down by two.

Also interesting to see the Canadian rig count jumping by 15 in the week to 103, up from 62 last year:

Https://www.ogj.com/drilling-production/article/14277341/canadian-drilling-jumps-as-us-count-dips-slightly

Great indicative result from the first Dieselgate claim - can't be long before ANX's claim is settled too. Then it's on to Mercedes Benz....

The upside here is shown by Arden's raising their target price to 300p (from 280p).

They have 18.8p EPS forecast for this year, rising to 20.8p EPS next year. That's a forward P/E of just 6.2.

Plus there's a 1.6p dividend, rising to 1.8p.

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."

Nice maiden director buy of around £50,000 by the new NED last week.

Also encouraging (and not mentioned here before) to see DB (the Chairman) and his wife both utilising their annual ISA allowances last week to transfer £40,000 of SCE shares into their respective ISAs.

Certainly two very positive signals from the directors.

Https://martinflitton1.wixsite.com/privatepunter/post/plenty-of-action-at-adf-29-05-22

The aspect that immediately stood out for me was that ADF expect to "comfortably pass" 70 productions this year, against 39 last year. Which implies that this year's forecasts look nicely conservative.

Good to also hear that there's plenty of potential activity in terms of acquisitions in a fragmented sector.

Last week's results looked just fine to me, and the outlook especially so given the "almost fully booked" order book for this year:

"Outlook

· Market dynamics continue to be strong with increasing demand for film and high-end television in the UK. This is further supported by unprecedented levels of investment in UK Studio space and content, which bodes well for the Company's growth ambitions.

· The Company raised £15m of gross proceeds on admission to trading on AIM and has already started to invest by expanding orders for additional vehicles and trailers to meet demand.

· Recent contract wins with new and existing customers have strengthened ADF's expanding network of contacts.

· The Group continues to have strong order visibility in the new financial year with the 2022 order book almost fully booked."

Https://masterinvestor.co.uk/equities/quick-small-cap-catch-ups-bms-sur-and-saa/

"Sureserve Group – building up its forward order book is great business

Last week’s interim results from this social housing energy services group were well received.

However, the group’s shares have not reacted to the upside that I believe is now very evident.

The group is building up its revenue account quite strongly, with its forward order book looking ever more expansive.

Some 96% of this year’s revenue is already covered.

The consensus now for the current year to end September suggests that revenues will increase from £216.5m to £282.5m, with adjusted pre-tax profits of £16.5m, worth some 8.1p per share in earnings.

For the coming year £300m plus is possible, generating £18.5m profits and 8.8p in earnings.

That make the shares at 83.5p look very good value, especially considering its almost continual sales and profits growth.

I was encouraged to see that the group’s recently appointed Chairman has added more shares to his holding, now up at 150,000 shares, following his purchase of 25,000 @ 83.75p each.

Remember that they touched 106p in January, so they could well do that again very soon."

Cheers - a very good article and summary. The conclusion says it all:

"My View

Straight after the Q1 Update on Monday the shares hit 141p in reaction to the positive news.

The highest that they have been in the last year was 153.75p last November.

That was well before the well oversubscribed £45m fundraising in early March for the $75m acquisition of VGL, the German online marketing group.

With the bulk of its revenues earned globally and enjoying significant annually recurring revenues, this group is a ‘real money machine’ that is not to be ignored.

I consider that its shares are trading at two-thirds of what would be an average value, when in fact they rate a premium valuation far higher.

That will happen in due course, I am sure.

And that is why CentralNic Group is currently my top-ranking Profile selection.

I see them easily hitting 185p in due course.

These shares are a steal at around the current 125p."

Predictive Discovery, where CAPD have a large investment and are also the main drilling contractor, have just raised $55m from institutional investors, which should ensure substantial drilling revenues for CAPD as follows:

Https://www2.asx.com.au/markets/company/pdi

“The funds raised will allow Predictive to accelerate its comprehensive drilling program and build further on the 3.65 million ounces already discovered, as well as deliver a scoping study which will include our baseline and environmental study results in late 2023.

“Bankan is potentially one of many significant gold deposits and marks the beginning of our journey in developing Guinea’s Siguiri basin into one of the most exciting new gold addresses in West Africa.”

Good coverage here with some analyst comment - Cenkos say Buy:

Https://www.scotsman.com/business/linlithgow-based-tech-firm-calnex-optimistic-and-eyeing-ma-after-record-full-year-performance-3706565

"Analyst Ian McInally of Cenkos Securities flagged a “buy” recommendation regarding Calnex, stating that it has seen the number and breadth of its customer base increase, and has a record order book. “Calnex remains strongly positioned to continue growth and benefit from the long-term industry drivers within the telecoms and networking markets.”

New video interview with the CEO - as bullish as should be expected given the terrific growth and outlook.

Interesting to hear him emphasise how cautious the forecasts are which are currently in the market - and even being cautious, CNIC are on a current year P/E of only 9.8:

Https://www.proactiveinvestors.co.uk/companies/news/982972/opportunity-for-centralnic-is-so-great-says-ceo-982972.html

"Opportunity for CentralNic is ‘so great’ says CEO

Ben Crawford tells Proactive that organic growth in its first quarter was a record at 53%,

Cash holdings are also at a record and net debt is now below its EBITDA number, he adds.

However, this just scratches the surface he believes and explains why CentralNic’s solution to the internet's structural inefficiencies is a huge opportunity for the company."

"Strategically, PSK is enabling MTI Summit to step up the value chain by offering not only components, but also turn-key solutions such as fixed and mobile communication, telemetry and signal intelligence systems. Moreover, MTI's strength and size is assisting PSK in boosting its customer base and involvement in the market, while enabling MTI to offer a wider range of higher-value products to customers. In addition, MTI made $0.8mn of loans to PSK to strengthen its balance sheet and enable the company to take advantage of a strengthening market.

True, MTI’s antennae business did post a small quarterly loss as supply chain issues led to slower fulfilment of 5G backhaul orders to support mobile phone operators roll out their 5G networks. However, the sales opportunities are material. Indeed, Borovitz reports further interest from Tier 1 OEM vendors for its new automatic beam steering 5G antenna which adapts to small movements caused by climate conditions to maintain a stable signal. In fact, he expects another four Tier 1 OEM customers to become customers.

MTI’s share price has risen 35 per cent since my last buy call (‘Bargain hunting in the market carnage’, 7 March 2022), and the shares are now rated on a cash-adjusted forward PE ratio of 17 and offer a prospective dividend yield of 2.8 per cent.This is based on Allenby Capital’s forecastof 12 per cent growth in pre-tax profit this year, a sensible prediction. That’s still a modest rating for a well-capitalised group that makes a 13 per cent post-tax return on equity and is addressing three high-growth market segments: climate change, defence,and 5G backhaul. Buy"

Here's ST's full tip FYI:

"Farming winners from climate change and geopolitical tensions

An Israeli-based technology group is generating strong growth, has a bumper pipeline of tenders,and offers a play on the global food crisis, too

May 23, 2022 By Simon Thompson

First-quarter revenue rises 12 per cent to $11.2mn
Quarterly pre-tax profit up 8 per cent to $0.97mn
Net cash of $6.5mn after $7mn including final dividend, PSK acquisition and exit from Russia

An Israeli-based is generating strong growth, has a bumper pipeline of tenders, and offers a play on the global food crisis, too.The war in Ukraine is not only accentuating the impact of the ongoing energy crisis, but has prompted the governor of the Bank of England to warn of "apocalyptic foodprices", too. Fertiliser prices have more than trebled in the past year, which will feed into sharply higher shop prices, while at the same time the breadbasket of the world is unable to ship 20mn tonnes of grain in storage due to blockades in the Black Sea. To compound matters, global warming is continuing to impact crop yields.

It’s a positive backdrop for Israeli-based technology group MTI Wireless Edge (MWE:65p), which could yield significant sales of its cutting-edge Mottech's real-time irrigation monitoring,control and reporting software. That’s because it now offers Viridix’s RooTense sensor that monitors crop root activity and implements an irrigation protocol in real time. On average, the technology saves over 30 per cent in water usage for farmers while also improving crop quality and yield.

Mottech is the exclusive distributor Africa and Australia, where the business already has hundreds of existing agricultural customers, and will promote the integrated solution in other territories as well including France and China. Given that the savings on water usage are high relative to set-up costs – the sensors cost a few hundred dollars per hectare to install –then Mottech should be able to generate a high-income stream by selling the kit, and create a valuable recurring revenue from annual license sales thereafter.

MTI’s water solutions business accounted for 40 per cent of the group’s $1mn(£0.8mn) operating profit in the first quarter of 2022, so is major profit contributor. Chief executive Moni Borovitz revealed during our results call that MTI has “some big projects in the pipeline”, so expect news on new orders from mid-July onwards.

The other key take for me from the quarterly results was the 88 per centincrease in operating profits to $0.74mn from MTI’s Summit electronics division,which represents 40 international suppliers of radio frequency/microwave components.The division is benefiting from January’s acquisition of a 51 per cent stake for $1.2mn in PSK, an Israeli company which specialises in the development,manufacture and integration of communication systems and advanced monitoring and control systems for the Israeli government defence market."

Good to see the share price react nicely to relatively small buying - hopefully indicates there's not much stock around.

Results today to 31st March are really impressive and ahead of even the upgraded expectations.

Underlying EBITDA at £6.35m is well ahead of the forecast £5.9m, as are the adjusted EPS and the total dividend.

Above all, the outlook is very, very confident with record books. If you've seen the usually incredibly understated CEO then you'll realise how meaningful this is.

Interesting to see if Cenkos raise their 7p EPS forecast - likely they'll wait until later this year.

There are many growth drivers here - 5G, cloud computing, data centres, new regulations etc.

Amongst the most exciting extracts are re the growth in data centres, and re this new product:

"This year, the Group expanded its portfolio by releasing a new Virtual SNE (network emulation) product, targeting engineering teams developing infrastructure products for deployment in networks hosted in cloud computing environments. While demand is at early stage, the value is in the strategic positioning of the portfolio to track this trend as and when it grows momentum."

and in particular re the new iTrinegy acquisition which hugely widens the potential customer base:

"NE-ONE hardware and software-based Network Emulation platforms provide organisations, primarily across the technology, financial, gaming and military / government sectors, with the ability to accurately recreate complex, real-world network test environments in which to analyse and verify the performance of applications, before deployment."

Berenberg reiterate their Buy and 250p target (up from 180p over the last year):

Https://investing.thisismoney.co.uk/broker-views/CNIC

Shore Capital have also updated - they like Allenby retain their 90p target following their recent initiation of coverage, and note that "each of the divisions has growth drivers":

- water management is well placed to see "stronger demand than we forecast"
- the antenna division is "expected to benefit from the rollout of 5G across the world"
- "as long as Israel remains at the forefront of global technology development, we expect Summit to see continued good demand for its products and services"

Capital Access have issued a new 6 page report this morning. They have consensus forecasts of 8.1p EPS this year, rising to 8.8p EPS next year.

And of course there's also the £11.8m cash pile.

Further extracts:

Https://www.capitalaccessgroup.co.uk/research-portal#/portal/capital-access-group

"The outlook is promising, with growth underpinned by a significantly larger order book from blue chip clients, which now exceeds £500m, mostly in FY23 and beyond - although 96% of management’s expected revenue for FY22 is now covered. This is testament to the revenue visibility of this highquality business.

Growth looks set to continue with market drivers including long term contracts and the need for housing associations and local authorities to meet ever-stricter regulatory targets for energy efficiency in their housing stock."

"Earnings momentum is positive, with the new consensus estimates being universally higher than after the last update in January 2022. Most consensus numbers are up between 0.4% and 2.6% for FY22 e and FY23 e."

"Outlook & Evaluation of Consensus

Management’s outlook for the full year was positive, with some, limited, reservations about cost increases in fuel, labour, and certain materials – like much of the rest of the reporting we’ve seen this earnings season. We believe that the business can mitigate this, and no new guidance was issued.

The outlook shouldn’t be volatile due to the high quality and length of the contracts with its blue-chip client base of predominantly local authorities and housing associations and the ongoing trend towards improving the energy efficiency of their housing stock.

The £512m order book, up 50.2% YoY, suggests that organic growth will continue. Of this, nearly £400m relates to FY23 and beyond, showcasing the predictability of revenues in this business. Additionally, there is the potential for further bolt-on and larger strategic acquisitions, with a focus on the Social Housing Energy Services sector where its client base is strongest.

As a result of this order book growth, 96% of management’s expected revenue is now covered for FY22."

Zeus Capital today retain their "conservative" forecasts and 195p valuation based on DCF calculations.

But they note that with these Q1 results they:

"see room for significant earnings upside. If we simply annualise Q1 EBITDA and adjust for the VGL acquisition, we estimate EBITDA could reach $80m, 19% above our forecast of $67m"

Further extracts:

"The company’s strong Q1 performance makes full year earnings expectations appear conservative. By simply annualising Q1 EBITDA and adjusting for the VGL acquisition, we estimate EBITDA could reach $80m, 19% above our forecast of $67m. Even based on our conservative forecasts CentralNic trades at only 7.5x 2022 EBITDA, 10x P/E and 10% FCFF yield."

"Valuation: Even based on our conservative forecasts CentralNic’s strong growth and margins appear undervalued. Shares trades at only 7.5x 2022 EBITDA, 10x P/E and 10% FCFF yield despite delivering 53% organic growth and steady margin expansion."

Allenby Capital retain their 90p fair value, and summarise this Q1 as follows:

"Good Q1 performance; positive outlook"

"Outlook:

Good Q1 performance given the global backdrop – inflation, supply chain
disruption etc. MTI remains well capitalised and there is increased demand across all three divisions. The company’s diversified model, albeit with a core focus on radio frequency communications, remains an attractive proposition given ongoing macro uncertainties."

Https://www.allenbycapital.com/our-research/