Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
PDI have announced a successful A$50m fundraising at the excellent price of A$0.19.
CAPD may or may not have invested further, and the PDI share price understandably reverted back overnight to A$0.195.
The good news is that CAPD are the drilling contractor at PDI's core project at Bankan - and this will fund "and accelerate the multiple drilling programs" there:
Https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02802611-6A1205866
Looks like a positive turnaround is happening here, led by much improved cash flows. An excellent summary elsewhere by Moathunter as follows:
"...a solid set of results.
Thankfully they are slowing top line growth and concentrating on cash collection to improve working capital.
And with such a fixed asset-lite/ capital light business model with a strong moat unique business configuration (legal aid + car hire), the result is significant free cash flow generation which is calculated as £28m this year (NOPAT + Deprec.- Capex -change in working capital).
Removing the one-off Emissions Case that resulted in a net positive cash position of £7m = £21m free cash flow **and this is a predictable cash flow going forward (stable industry, moat, proven model through downturns).**
So with a market cap £79m/£21m = 3.8x free cash flow multiple.
Or Enterprise Value £147m/£21m = 7x multiple.
£21m/ 10% discount rate (back of envelope) = 21/0.1 = £210m - £68m net debt = £142m valuation for the equity/118m shares = a conservative 120 pence and that excludes growth.
Cheap."
WH Ireland forecast 15.2p EPS this year, up from 12.8p EPS, for a P/E of just 4.2, with a EV/EBITDA of only around 3.4.
They conclude:
" Continuing in invest in attractive markets
The business looks all set to grow, having invested strongly in FY23 (£4.3m in Diesel Emissions lead generation / staffing, £3.8m in Housing Disrepair marketing costs, and vehicles at peak levels in Credit Hire as discussed). The large demand pool of impecunious motorists and motor-cyclists involved in no-fault accidents continues to be tapped. Housing issues on both sides of the private / rented divide remain a major issue. We view secured claims of 12,000 (Mercedes Benz) and 22,000 (others) as offering a very substantial future reward to this company.
• Forecasts:
Following inline results this morning, we leave our FY2024E unchanged, assuming a continuation of high levels of activity in the credit hire business and a positive impact from growth in headcount in the Legal Services division. Introducing FY2025E forecasts, we see potential for ANX to deliver further growth whilst at the same time achieving a reduction in net debt as cash collections improve. Crucially, we note our forecasts include vehicle emissions marketing costs as expensed, excluding the significant upside this promises."
Pretty encouraging overall in terms of:
- "the second largest contract in SysGroup's history, totalling £2.2m of revenue over three years" won this month (couldn't this have been RNS'd or RNSNON'd separately?)
- the tone of today's RNS which is extremely positive and bullish as regards the potential in AI/ML
- the growth in revenues from £10.96m in H1'23 to £11.74m in H2'23
But H1'23 £1.57m EBITDA compares to £0.43m EBITDA in H2 due to "significant investment in technology and people to support our strategic growth".
The opportunity is huge in SYS's sectors, and SYS look good value on a £16.8m m/cap. Let's hope the investment last year pays off quickly in terms of a return to H1's EBITDA and above (can't see any forecasts from Zeus on Research Tree yet).
Excellent update today, with ALT at least meeting previously upgraded expectations.
To have already won new Gear Shop contracts announced today with an annualised value of $12m - for the next 5-8 years - is terrific news. And likely more to come.
Plus there's a £1.3m cash pile, well ahead of expectations, so no need to raise funds.
Zeus have a 57.8p valuation estimate, and have at present retained their 1.6p EPS forecast, rising to 2.4p EPS for the current year, although today's RNS presumably suggests the historic forecast will be beaten.
Here's the update for anyone who's holding here, despite this bb being deathly quiet!
Https://uk.advfn.com/stock-market/london/altitude-ALT/share-news/Altitude-Group-PLC-Pre-Close-Trading-Update/93752667
Looking good.
I think I'm right in saying there's been little dilution since the 3,000p glory days? Management appear to be successfully implementing their strategy - perhaps it's not too fanciful to anticipate a return to those levels in time.
Anyway, the broker targets of just over 1,000p would be good for starters....
Note that 2024 is a "transition" year as Singer Capital put it this morning.
Overall STG are forecast to make a £2.2m loss before tax this year, compared to a £1.5m loss last year. Even 2025 is forecast to bring a £1.2m loss.
EBITDA worsens this year to a £0.4m loss.
Net debt increases to £5m this year, up from £2.6m, and then worsens to £6.1m in 2025.
STG looks extremely "promising" as so many companies do, but as is so often the case it has a long way to go to deliver in terms of becoming (1) profitable and (2) cash-secure/generative.
Particularly as it looks like it'll need a fundraising at some point for working capital etc to support growth.
Good to see only £7k of buys today causing a 1p rise and the bid price increase to 72p (the true closing price last night was 71.5p, disturbed by a late closing buy at 73.5p).
Hopefully indicates not much stock around to satisfy demand.
tipped as a buy on saturday (subscription-only):
https://*************.com/views/74216/react-group-first-half-growth-across-all-three-divisions-buy
"react group – first-half “growth across all three divisions”, buy
by hotstockrockets | saturday 27 april 2024
cleaning, hygiene, and decontamination group react (reat) has issued a trading update emphasising half-year ended 31st march 2024 “good sales growth across all three divisions of the business… adjusted ebitda of £1.3m up 38%”. how good is the news from a currently up to 72p offer price for the shares?
etc"
Cavendish's latest research from earlier this month hasn't been posted here yet in detail.
They have a 68p target price, and they forecast 5.5p EPS this year rising to 6.9p EPS and then 7.9p EPS.
Here's some extracts:
"Strong organic growth; focus on EBITDA
Venture Life has reported FY23 results to December 2023, following the February trading update. Revenues grew 17% in the year to £51.4m (our est. £50.7m) and adjusted EBITDA was £11.6m (our est. £11.6m). Cash conversion was 85%, generating £9.8m of cash from operations. Cash generation and no M&A in 2023 allowed the company to de-lever, closing FY23 with net debt to adjusted EBITDA at 1.3x.
Management have focused on growth with three therapy areas generating double-digit revenue growth and online sales up +40%. Our extended forecasts anticipate increased investment, developing new products and expanding distribution channels to drive future revenue growth, with a focus on EBITDA and cash generation. We believe Venture Life has delivered strong organic performance in 2023 and anticipate on-going growth which could be complemented by re-starting the M&A strategy."
"Cash – The company generated cash from operations of £9.8m (FY22: £6.2m), indicating cash conversion of 85%. FCF for debt servicing was £4.8m, up strongly versus £2.8m in FY22. Strong cash generation and no M&A in 2023 allowed the company to deleverage, closing FY23 with net debt to adjusted EBITDA of 1.3x (FY22: 1.65x), which has subsequently fallen to 1.15x."
"Outlook – We note Venture Life’s stated commitment to improving EBITDA margins, that, while lowered in the near-term, are expected to benefit from marketing investment. This reflects a focus on profit and cash generation across all revenue streams, generally regardless of the differing gross margins. We expect this focus to support profit and cash growth for the business.
Investment thesis – Venture Life has delivered an organic 2023, demonstrating its ability to grow revenues and generate cash, allowing the company to de-leverage. We believe the company exited 2023 in excellent shape, noting a diverse product portfolio with further organic growth opportunities, available manufacturing capacity for expansion into new opportunities and a stronger balance sheet to re-engage its M&A strategy."
They also "expect the company to re-initiate its acquisition strategy during 2024 and beyond", and "as of the end of FY24E, based upon our forecasts of the current business, Venture Life would have £16m of the initial £30m RCF available, plus the potential to draw a further £20m".
Under different scenarios this could add between a further £2.5m-£7.5m of EBITDA to current forecasts.
Good to see the Shinez acquisition completed.
Note that:
"this acquisition is expected to significantly enhance earnings per share (EPS), with a forecasted adjusted EPS growth in the high single-digit percentage range for the pro forma fiscal year 2023, not accounting for potential synergies":
Https://uk.advfn.com/stock-market/london/team-internet-TIG/share-news/Team-Internet-Group-PLC-Completion-of-Acquisition-of-Shinez-I-O-Ltd/93728895
Currently online you can only buy a maximum 3k shares at 71.95p, whereas you can sell 15k shares at a big premium to the 71p bid at 71.55p. Encouraging.
I added more yesterday - can't see the share price being at present levels for long.
Singer Capital Markets have updated - they say Buy and have a 97p target price.
They forecast 6.76p EPS to this September, rising to 7.68p EPS and 8.61p EPS.
The £1m cash pile also rises to £2.6m and then £4.6m.
Since H1's EBITDA is already 53% of their forecasts, even before the recently RNS'd contract wins, it's highly likely imo that REAT will beat expectations this year.
Especially with over 85% recurring revenues and improving margins.
Singer conclude as follows:
"Contract win momentum continues The Company has continued its drive on new business, with three recently announced material contracts totalling over £1.3m of revenue p.a. In addition, it continues to be awarded numerous small and medium sized wins which highlights its cross-selling capability. The pipeline for the remainder of the year remains robust which provides the Board with confidence over full year expectations".
Goliard has posted elsewhere that CSSG have received the first £500,000 of the additional £5.8m Vigilant sale proceeds:
"Just to say that I have received confirmation from CSSG that that the first payment of over £500k was received on 28 March."
Peel Hunt have a 1035p price target and say Buy:
Https://www.proactiveinvestors.co.uk/companies/news/1045922/accesso-s-showare-product-adds-another-layer-to-equity-story-says-peel-hunt-1045922.html
"Accesso’s ShoWare product adds another layer to equity story, says Peel Hunt
Published: 14:03 23 Apr 2024
Analysts at broker Peel Hunt see clear benefits to accesso Technology Group plc’s equity story after bringing its ShoWare software as a service (SaaS) ticketing suite to the UK.
“This scalable solution has already proven itself, with over 600 venues around the world using the service, and allows venues to manage the end-to-end ticketing process, whether online or onsite,” noted Peel Hunt.
The broker added: “Alongside accesso's ability to build long-term relationships and its established relationships with UK venues, today's news should be viewed as a positive addition to the accesso equity story.
“Features include seamless online/mobile sales, white-label capabilities to retain a client's brand, dynamic pricing to optimise ROI, and CRM features to build customer loyalty.”
Analysts slapped a buy rating on accesso stock following this announcement, with a target share price of 1,035p."