Member Info for rivaldo

Another $200k of additional module sales....not exactly huge in itself, but with secured 2021 revenues up to $7m already, it's surely guaranteed now that revenues will beat current forecasts of $7m for this year:

Https://uk.advfn.com/stock-market/london/pelatro-PTRO/share-news/Pelatro-PLC-Contract-Wins/85284405

RNS just out - good to see MWE commencing buybacks again. It's bought back 50,000 shares at 61p.

Which tells you that the company too believes the shares are cheap now:

Https://www.investegate.co.uk/mti-wireless-edge--mwe-/rns/transaction-in-own-shares/202106031142137515A/

Https://www.sharesmagazine.co.uk/magazine/apiDownload/2021-06-03-Shares/b0395f26aa5c7d48b7e7c1d7e5312530?edition=ajbyi

"SURESERVE (SUR:AIM): 79P

If there is one thing investors have come to prize over the course of the last 12 months it is businesses with a high degree of earnings visibility.Thanks to its status as a trusted supplier, and the non-discretionary nature of its compliance and energy services, Sureserve (SUR:AIM) has enjoyed a high level of regular, recurring income from its mainly public sector clients during the last year.

With regulatory drivers underpinning demand and customers extending their contracts as they emerge from lockdown, the firm now has an order book of over £370 million, meaning revenues are fully covered this year, more than 50% covered in 2022 and 25% covered in 2023, giving almost unparalleled medium-term visibility.

In the six months to the end of March, trading was well ahead of management expectations.‘We have more compliance tenders than ever before and we’re winning half of them’, says interim chief operating officer Peter Smith. Compliance accounts for over two thirds of Sureserve’s revenues and represents planned and responsive maintenance, installation and repair services in the areas of gas, fire and electrical, water and air hygiene, and lifts.

Whereas early in the pandemic customers were tentatively adding one-year extensions, now they are asking for three or four-year contracts, and the firm is able to charge higher rates. So, while revenues in compliance rose 7.6% in the first half, operating earnings jumped nearly 58% and the margin on sales was 7.4% against 5% a year earlier, a period which was barely impacted by Covid.

The energy services business, which accounts for less than a third of revenues, also won new contracts including a two-year extension of its existing smart metering deal with Scottish Power, but Covid restrictions meant the business did well to keep revenue flat.For Smith, energy services ‘washed its face’, and the work hasn’t gone away, it’s simply been deferred so the second half of the year should see an improvement in revenue and margins.

Thanks to the strength of its balance sheet and its cash flow generation, the firm is also on the look-out for growth opportunities, and it lucked out with the purchase of Derby-based gas services business Vinshire, which it picked up from administrators for just £200,000 and which has already generated half that amount in profit in the first half.

House broker Shore Capital has rushed through sales and earnings upgrades of 8% and 20% for the current year and ‘significant’ increases to forecasts for the following two years.The analysts cite the firm’s high revenue visibility thanks to long-term contracts, increased regulations on energy safety and government commitments to insulation, new energy sources such as heat pumps, and electric vehicle charging networks."

Correction - I've been told that Shore Capital's price target is actually 740p (not 730p). Even better :o))

Good to see the intra-day reversal and a tick up now.

MWE have around a 10.7p per share cash pile (plus a sizeable freehold property as extra asset value back-up).

At 60p, that puts MWE on a current year ex-cash P/E of only 15.7, dropping to a forward P/E of 14.1.

And that's without any further upgrades.

Taking into account sector ratings in MWE's growth sectors of 5G, water management etc I'd say that's extremely value now.

Cheers - and more good news this morning. CORA has raised a further £3.1m "for further drilling, related exploration activities and ongoing study work focussed on growing resources at the Company's flagship Sanankoro Gold Project in southern Mali".

Which should flow through nicely to CAPD:

Https://www.londonstockexchange.com/news-article/CORA/fundraising-excess-demand-from-subscribers/15002171

An encouraging new interview with the analyst from Zeus Capital - Q1 revenues are tracking 11% ahead of Zeus' forecasts, and gross profits are tracking 7% ahead. The conclusion is that CNIC are "well positioned to outperform forecasts".....

hTtps://www.***************************/centralnic-group-positioned-well-to-outperform-forecasts-analyst-interview/412995459

Coverage of the Q1 results here:

Https://domainnamewire.com/2021/06/01/centralnic-repots-16-organic-growth-in-q1/

"CentralNic reports 16% organic growth in Q1
by Andrew Allemann — June 1, 2021

Company reports organic growth in all three of its business segments.

CentralNic (London AIM: CNIC) reported earnings for Q1 today.

The company said its organic revenue grew 16% compared to Q1 2019. It said that all three of its business segments grew organically year over year.

With acquisitions, revenue grew 48% to $84.4 million and gross profit increased by 58% to $27.9 million. The company’s adjusted EBITDA number increased by 23% to $10.1 million.

The company expects full-year numbers to be in line with market expectations.

CentralNic is renaming its monetization segment “Online Marketing” because the company added multiple ad businesses last year. It said that none of its marketing platforms use third-party cookies or collect personal data on customers, so it expects them to do well as Chrome blocks third-party cookies and Apple institutes its new privacy controls."

CAPD were indeed promoted last night - and not only that, they were also a new inclusion in the FTSE All-Share Index.

So in the coming days and weeks CAPD should attract attention from various tracker funds who will have to purchase at minimum a few shares, and hopefully from other funds who can now invest in CAPD now that they're included in a larger index.

CAPD remain in prime position for promotion to the FTSE Small Cap Index in tonight's rankings.....

Http://www.stockchallenge.co.uk/ftse.php

Bullish coverage from Shore Capital (from memory they have a 730p target price):

Https://citywire.co.uk/funds-insider/news/the-expert-view-ssp-senior-wickes-renew-and-redde-northgate/a1514422?ref=citywire-money-latest-news-list#i=5

"Renew worthy of a bigger rerating, says Shore Capital

Engineer Renew (RNWH) is a less risky business than the market is giving it credit for, says Shore Capital.

Analyst Tom Fraine retained his ‘buy’ recommendation on the stock after the group acquired engineering services company Rail Electrification for £5.3m, expanding its capabilities in the electrification of train lines.

‘We continue to believe Renew has a much lower risk profile than the market perceives, possibly due to associations with peers servicing much larger fixed contracts,’ said Fraine.

‘Renew’s ability to control costs and resilience during the pandemic has been much greater than the majority of industrials and worthy of an even greater rerating. We believe Renew represents a good opportunity for investors seeking to benefit from the UK government’s commitment to invest £640bn in infrastructure over the next five years.’"

A good article about today's acquisition here, with much more detail than in the RNS - an impressive client list for a small company, which must be a great base from which to win some of the huge additional electrification work coming along:

Https://www.insidermedia.com/news/yorkshire/renew-holdings-acquires-rail-electrification-specialist

Extracts:

"REL provides services and road rail plant for the installation and commissioning of overhead line electrification (OLE) in both the light and heavy rail infrastructure sectors across the UK. Clients include Costain, ABC, Crossrail and Hochteif"

"The REL team, including the management trio of Scott Kernachan, Mark Potts and Kenny Barr, will join QTS at its Scottish HQ in Drumclog, South Lanarkshire."

"By adding REL to the QTS Group, we are joining forces with a leading business in this area, which will be a great benefit to the work that we deliver for our clients."

Scott Kernachan added: "Through this deal, we are opening up the future of REL to even greater possibilities. As QTS already has its Principal Contractor license, and a number of frameworks in place, it really transforms the opportunities available for us as experts in electrification."

Nice summary on Techmarketview:

Https://www.techmarketview.com/ukhotviews/archive/2021/06/01/centralnic-delivers-a-strong-q1

"Tuesday 01 June 2021

CentralNic delivers a strong Q1

Internet domain name and web services provider CentralNic, continues to scale as it consolidates a highly fragmented market and expands its portfolio of online marketing services.

Total group revenue grew by 48% in Q1 to $84.4m (Q1 FY20 $56.9m). Organic revenue growth was also strong, up 16% (on a pro forma basis) to $85.3m (Q1 FY20 $73.5m) with profitability also improving with adjusted EBITDA increasing by 23% to $10.1m (Q1 FY20 $8.2m).

CentralNic’s ‘secret sauce’ is to look to rapidly build scale through multiple acquisitions and organic growth in areas that deliver high recurring revenue and high cash conversion. So far this year, it has completed the acquisition of SafeBrands, an enterprise domain management and online brand protection provider and the online marketing business Wando Internet Solutions. These are acquisitions that help expand its service offering well beyond the monetising of internet traffic to a wider suite of online marketing and monetisation solutions – all higher margin and faster growing.

Recent efforts have seen the expansion of a centralised back office taking away responsibility for things like Finance, HR and Product Development so the acquired businesses can focus primarily on sales – all designed to deliver improved organic growth via upselling and cross selling.

CentralNic’s strategy continues to deliver and with some added COVID bonus via the acceleration of online and eCommerce, the company has delivered a strong set of quarterly results. To put them into perspective, the business generated more revenue and EBITDA in Q1 than in the whole of FY 2018. Given all this progress CentralNic is expected to top $300m by the end of FY 2021."

Worth remembering that CLX now has 12.6p per share in cash.

At the now 103p mid-price, that leaves CLX on a historic ex-cash P/E of only 15.6. Which is pretty low for a growth company in booming sectors.

Zeus Capital have issued a bullish new note today, which summarises as follows:

"Q1 update

CentralNic delivered strong revenue growth in Q1 that demonstrates management’s strategy to invest in staff, new products and systems is delivering returns. The Direct division has returned to growth (+13%), as hoped, and the Indirect division has accelerated organic growth to 13% from 7% in 2020. The Monetisation division continues to lead organic growth (+19%), has been diversified by recent acquisitions and renamed Online Marketing. Recent policy changes by Google and Apple could further boost growth for the division. We provide analysis and a division overview overleaf.

Strong results: Q1 Revenue, Gross Profit and EBITDA were $84.4m, $27.9m and $10.1m, respectively. On an annualised basis, Revenue and Gross Profit were 11% and 7% ahead of our full year forecasts while EBITDA was only 2% below. Given revenue growth, H2 seasonality and cost savings anticipated over the remainder of the year, CentralNic appears well placed to outperform our forecasts. However, at this early point in the year, we conservatively leave our estimates unchanged.

Strategy delivering returns: The results indicate to us that the company’s strategy of investing for growth is delivering returns. Management made significant investments in management, products and systems, which has accelerated Q1 organic growth ahead of our expectations (16% compared to our estimate of less than 7% for 2021). In particular, investment in value-added services in Direct and Indirect segments has accelerated growth and domain name sales have also accelerated. Both Direct and Indirect divisions accelerated growth to 13%.

The Online Marketing division continues to lead group growth, expanding 19% organically in Q1. Management has renamed the Monetisation division after recent acquisitions, Codewise and Wando, which expanded it beyond monetising traffic on dormant domain names to include online marketing and data analytics solutions. The Online Marketing division is well placed to accelerate growth after the recent banning the use of third-party cookies and identifiers by Google and Apple. We believe the policy changes could lead brands to divert online marketing budgets towards ads that do not depend on any cookies or identifiers, such as domain monetisation. We discuss this trend in greater details overleaf and provide an overview of CentralNic’s expanded Online Marketing division.

Strong cash conversion: Adjusted operating cash conversion was very strong at 163% (Q1 2020: 46%), primarily due to optimisation of working capital. Net debt fell to $79.0m (Gross debt of $122.1m and cash of $43.1m) from $85.0m at the end of 2020.

Valuation: Despite CentralNic’s strong growth prospect the company trades on only 8x EV/EBITDA, 11x PE and 9% FCF yield for 2022E.."

Shore Capital have this morning issued a long Growth Companies sector summary note - it includes a long section on SUR, with these conclusions:

"We have upgraded our FY2021F PBT, EPS and dividend estimates by 8%, 7% and 20% respectively following this morning’s interims and have made significant upgrades to profit, net cash and dividend forecasts for the following two years.....The valuation now looks very compelling at a FY2022F P/E of 10.5x.

Upgrades following strong interims.

Revenue for H1 to March 2021F rose by 4.6% to £114.6m while adj PBT rose 30.6% to £4.4m. In our results preview of 12 May, we did not issue a formal first half estimate but suggested our FY2021F estimate implied around £4m, based on the past record of roughly one-third, two-thirds splits. ...

Net cash was particularly strong, given the mid-year is usually lower than the year-end: delivering £9.7m, which was higher than our YE2021F estimate of £8.2m.

Decent upgrades for FY2021F; bigger for next two years. Our extensive upgrades are detailedon Figure 1, page 2. They involve mainly ‘high-teen’ percentage increases for profit measures in FY2022F and FY2023F, while the cashflow benefits feed through cumulatively through to net cash over the three-year forecast horizon. Importantly, we have madea step-change in our dividend assumptions, progressively leading to a 43% increase in our FY2023F estimate to 2.5p.

Still conservative? Our estimates do not, for instance, assume any acquisitions. In December 2020, the Group made the small but, in our view, symbolic step of acquiring Vinshire Gas Services, the first after a long period of retrenchment for Sureserve. Today’s statement referred more explicitly to “acquisitive growth opportunities” as well as further organic potential in a fragmented market.Our estimates, likewise, do not assume major public sector contract wins. Compelling mix of growth, sustainability and cash.

Both divisions offer, in our view, high revenue visibility from typically three-to five-year contracts: Compliance underpinned by the regulatory necessity to monitor safety of gas and other utilities in social housing; and ES by national and local government commitments to insulation, plus innovative heat pumps and vehicle charging points.

Valuation. The shares are trading at a P/E of 10.5x 2022F, falling to 9.8x for FY2023F, and for FY2022, EV/EBITDA and FCF yield of 7.2x and 7.0%. Previously, dividend yield had not been compelling, but at the end of the forecast period, our FY2023F equates to 3.0%. In our 9 March report, we suggested a fair value of 100p represented a FY2022F P/E of 15x. On our new numbers this is now only 12.8x."

Shore Capital have this morning issued a long Growth Companies sector summary note - it includes a long section on KAPE, mostly summarising the recent AGM update and new loan facilities, and with these conclusions:

"At 328p, and a market cap now a little over $1bn, Kape has gained 76% year to date versus 11% for the FTSE All Share index, and trades on 15.1x EV/EBITDA for FY21F (18.4x PER) falling to 12.0x EV/EBITDA for FY22F (14.1x PER). We also note Kape’s recent inclusion in the MSCI Global Small Cap Index as of 27 May 2021 (see link here).

As many investors will appreciate, Kape is demonstrating high-growth credentials and we believe the balance of mid-term opportunity vs. risk remains materially underrated. Backing this is strong strategic execution to date (both organic and M&A) and the exciting prospects for the enlarged Group following on from the Webselenese acquisition. With high recurring revenues, a large and growing customer base and a markedly increased earnings outlook in FY2021, Kape remains well set for the year ahead and beyond."

"Since the beginning of the year, Kape has been adding c. 25,000 new customers a month, on a net basis, in its digital privacy division, and management expects this to accelerate moving forwards. At present, the Company supports c. 2.61m paying subscribers globally (up from 2.52m at 31 December 2020). For perspective,the number just two years ago was c. 1.0m (as at 30 June 2019). As expected, Webselenese is proving to be a very positive addition to the Kape family. Multiple crosscompany initiatives have been launched which are enabling the Group to benefit from Webselenese’s substantial technology knowhow in the space. These are said to be already enhancing Kape’s product development roadmap and go-to-market capabilities.

•The statement goes on to highlight continued strategic execution around becoming a one-stop-shop of choice for customers’ digital privacy and security needs through the expandingproduct suite and go to market capabilities: In just four months since the launch of Kape’s privacy suite, over 12% of new CyberGhost customers and over 20% of new Intego users, are now purchasing more than one product through it, resulting in an increasein Average Order Value (AOV). As expected, Kape continues to invest in both R&D and new product development, which remains a key growth driver for the business.

•In May 2021, the Company launched its Privacy First Anti-Virus for PC, which will initially be Intego branded, and in the coming months will be rolled-out to both CyberGhost and Private Internet Access users as part of a wider Company initiative.

Overall, the AGM update demonstrates that Kape is continuing to move at pace to build a market leading suite of security offerings, concurrently delivering on its commercial goals, corporate integration milestones and financial guidance."

Shore Capital have this morning issued a long Growth Companies sector summary note - it includes this on INSE:

"Valuation thoughts

As the economy recovers from the impact of the Covid pandemic and the consequent impact on energy usage volumes Inspired is trading on a FY2021F PER of 13.2x (EV/EBITDA 9.7x), offering a progressive dividend yield of 1.4%. With recovery out of the pandemic set to emerge, Inspired is poised to benefit, in our view, delivering essential services in energy assurance and optimisation as well as through its emerging ESG based compliance platforms."

Encouraging - the buying price has this morning jumped first to 79.9p and now to 80.3p. Perhaps the overhang is coming to an end...

Looks like a bargain acceleration into the overhead electrification sector - with much of the consideration dependent on performance.

There's likely to be huge amounts of work being doled out soon in this area:

"As part of the UK Government's commitment to delivering a carbon neutral rail network by 2040 for England and Wales and by 2035 for Scotland, it is estimated that there will be around 15,000 single track kilometres of new electrification carried out across Network Rail's controlled infrastructure over this period. The recently released Williams Rail Review states that electrification is likely to be the main way of decarbonising the rail network."

Paul Scott, Chief Executive of Renew, commented:

"The rail network has a crucial part to play in supporting the UK's commitment to Net Zero 2050 and this acquisition will help enable Renew to play a bigger part in Britain's green economic recovery. REL is a highly regarded business with a strong track record and will enable us to broaden our service offering within our Rail business. Our existing multidisciplinary rail capability, complemented by the electrification expertise of REL, leaves Renew ideally positioned to play its part in delivering a decarbonised railway. Rail electrification offers attractive long term structural growth opportunities underpinned by highly visible committed regulatory spend in a sector that we know extremely well. I am delighted to welcome the management and staff of REL to the Renew family."

https://uk.advfn.com/stock-market/london/renew-RNWH/share-news/Renew-Holdings-PLC-Acquisition-of-Rail-Electrifica/85247490

Excellent Q1 results - 48% revenue growth, a whopping 16% organic growth, and 23% EBITDA growth to £10.1m.

Net debt has reduced nicely on good cash flows and operating cash conversion.

CNIC again state they're trading nicely in line, but having made almost exactly a quarter of EBITDA forecasts in H1, with some H2 seasonality and the growth in revenues it's quite easy to see forecasts being beaten this year.

Very encouraging commentary too about how the ban of third-party cookies in Google Chrome and App Tracking Transparency in Apple will benefit CentralNic "as we provide an alternative to online marketers that is proven to be highly effective whilst respecting the privacy of internet users, putting us at the forefront of companies offering solutions for a more privacy conscious world".

There are again a number of adjustments relating to acquisition, restructuring and integration expenses which fall below the adjusted EBITDA line into non-core expenses, resulting in an overall reduced operating profit. I can see that some might not like these, but imo it's the performance of the core business going forward and cash generation which is important, and in this specific case it's the terrific rise in EBITDA which is all-important.

CNIC stand at a huge discount to sector comparators like GoDaddy etc, and trade on a current year P/E of only 12, falling to 10.6 next year.

Loads of upside here imho.