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Strategic Equity Capital state in their H1 results today that they have bought into INSE as a new position in the period, and INSE have now become one of their top 10 holdings:

Https://www.investegate.co.uk/strategic-equity-capital-plc--sec-/prn/half-year-report/20210302070000PE8C7/

"Inspired Energy

Description

Is a leading UK B2B corporate energy services specialist. The company works with their clients, generally large corporates, to procure energy cost effectively, audit and report their usage of it, and help them to optimise their energy efficiency. The company has a strong focus on sustainability with a number of services that help their clients measure, report and improve their ESG performance.

Thesis

Inspired Energy is a leader in the growing, but fragmented, corporate energy services market. The increasing complexity of corporate energy requirements, and increasing regulatory and sustainability imperatives will support continued strong organic growth for the company with a likely "flight to quality" leading to further increases in market share. The business model of the business is strong with high quality of earnings from long term contracts, high margins (40% EBITDA margin) and return on capital and good cash conversion. The fund's initial investment was made as part of a placing intended to strengthen the balance sheet and provide firepower for the company to undertake a number of bolt on acquisitions to continue to consolidate its position in the market; we believe these deals will be attractive financially and strategically. Although the company's revenues remain depressed due to lower corporate energy usage in 2020, there is significant opportunity for a rebound in revenues, and in the share price, when there is a return to a more normalised environment.

Developments in the period

Interim results were in line with expectations, although trading remained weak due to Covid restrictions over the period weighing on corporate energy usage. The core corporate division experienced a modest 5% organic decline in revenues as a result, although cash conversion and order book progression was good. The non-core SME-focused division, which represented less than 10% of group revenues was weaker, and in November the company announced that they had sold this part of the business to the management team for £10.5m. Strategically, this is a positive development and is in line with our investment thesis. The company remains well capitalised and well positioned to drive growth and execute further M&A once market conditions normalise."

RNS re the RSS project - great to see it progress smoothly into next stage field trials. As the CEO says, a "game changer" for NTQ no less.....

Https://uk.advfn.com/stock-market/london/enteq-upstream-NTQ/share-news/Enteq-Upstream-PLC-Launch-of-a-new-Directional-Dri/84468728

"Launch of a new Directional Drilling System - the SABER Tool

Enteq, the energy technology company, is pleased to announce the launch of its disruptive alternative to traditional rotary steerable systems (RSS) ; the SABER Tool (Steer-At-Bit Enteq Rotary Tool). The SABER tool, an evolution of the concept proven and tested by Shell and then licensed to Enteq, is now ready for next stage field trials.

The SABER tool uses internally directed pressure differentials to steer from the drill bit face, delivering true "at-bit" geosteering. This mechanically simple design also removes the need for traditional pistons and pads that are susceptible to reliability issues - an approach which can create a smoother and more precise wellbore with easy to manage directional control. SABER will offer a robust, reliable, simple and cost effective directional drilling alternative to current RSS options.

Enteq licensed the designs and intellectual property from Shell in September 2019, following successful initial trials, before assembling a technical team with more than 150 years combined RSS and directional drilling design experience, mostly based in the UK.

The global RSS market is estimated at $1.8 bn for 2021 and the initial version of the SABER tool will be able to compete in approximately 40% of this market. Source: The Insight Partners Analysis.

Further information can be obtained from https://www.enteq.com/products/rotary-steerable-system-srss/

Andrew Law, Enteq's Commercial Director, commented:

"Enteq's independent status, established engineering expertise and history as a trusted company with reliable downhole products, make us the ideal candidate to enter and disrupt the RSS space. With our expert engineering team and access to market, I am confident that the SABER Tool will be a great success."

Martin Perry, Enteq's CEO, commented:

" The directional drilling market today is dominated by RSS designs supplied by a small group of companies which have been largely unchallenged. However, efficiency of directional drilling is becoming increasingly imperative. It is essential to control costs, minimise downtime and maximise reliability and drilling speeds in order to remain competitive and reduce the impact of drilling. The SABER tool will prove to be a more accurate, agile and cost-effective alternative to existing RSS offerings. This product introduction should be a game changer for Enteq in terms of the market size which will be addressed and through the disruptive nature of the technology."

Good summary on the respected Techmarketview:

Https://www.techmarketview.com/ukhotviews/archive/2021/03/01/centralnic-scaling-rapidly

"Monday 01 March 2021
CentralNic scaling rapidly

Full year results from internet domain name and web services provider CentralNic, show the impact of its acquisition-led growth strategy, increasing revenue by 121% in 2020 to $241.2m (FY19 $109.2m). Profitability also grew significantly with adjusted EBITDA up by 71% to $30.6m (FY19 $17.9m). Organic growth was also decent and shows how resilient the “Internet Business” has been to COVID, with revenue increasing by 9% and adjusted EBITDA by 4%.

Since its IPO CentralNic has grown aggressively through a series of international acquisitions to become very much a “house of brands” in the domain services space (see here, here and here). The firm has consolidated a number of businesses in a highly fragmented market and now has more than 45m domains using at least one of its platforms (c.13% of domains worldwide). The trick is then to monetise these domains by layering on a diverse range of monetisation services, again bought in via acquisition, such as online marketing tools, advertising or brand protection. The revenue split now between domain name sales and domain name monetisation is roughly 50/50, almost all (99%) recurring.

Whilst success requires a healthy pipeline of suitable acquisitions that can be consolidated quickly and at low cost, it also needs the identification of an ever-greater range of services that clients want to buy. CentralNic has identified future revenue streams in areas such as hosting, social marketing, cybersecurity and brand protection and has already started the new year with a couple of significant deals. Here SafeBrands adds online brand protection to the portfolio whist Wando offers expertise in the fields of social marketing, display advertising and search engine marketing (SEM). Given its track record we can expect more deals of this nature in the pipeline."

WH Ireland have produced a positive new note on CSSG as follows:

"Croma Security Solutions (CSSG) –Corporate –Half Year Report:

Covid disruption held to minimum; well-placed for the full year
Market Cap £10.7m Share Price 72p

Generating £0.9m EBITDA in the six months to December 2020 (H1-21E), CSSG has produced a highly creditable set of H1 results, particularly set against the backdrop of the second lockdown, which partially impacted their business as before. Sales overall at £16.4m tailed H1-20A by just 6%, while EBITDA saw a £200k-plus reduction YoY –but it is important to note that this includes some one-time business which was in any case in run-off irrespective of Covid / lockdown, as previously flagged by the company. Net cash at £3.6m is meaningfully up by 89% YoY, reflecting the cash-generative qualities of the business even in difficult times. Encouragingly, trading patterns are good in the current calendar year (FY-21E H2 from thecompany’s reporting perspective).

Divisionally, thanks to Covid, this is a tale of varying developments, with the well-respected Vigilant manned guarding operation (manned by ex-military personnel and now offering a well-received front-of-house service) suffering little or no impact from the pandemic –in fact, possibly emerging as a net gainer, and succeeding in growing revenues by as much as 6%. Again, this is highly creditable since we estimate that H1 run-off work may have declined by as much as £100k YoY. In Systems and Locksmiths, revenues fell YoY, inevitably, given that trading was below normal levels due to Lockdown 2; however sales grew strongly as against the second half of the prior year, by some 31%, a tribute to the fact that CSSG’s Locksmith centres were able to open for the whole of the six months to December ’20, as they were not in the first lockdown. That said, Security Systems clients such as entertainment venues remained closed, -bearing everything in mind, we view this as a very decent outcome at the divisional level.

WHI view:

We expect similar dynamics as before to continue to play out in H2, in other words (1) good underlying growth from Vigilant, which continues to fire on all cylinders, (2) the non-underlying business flagged previously to have been concluded, (3) lockdown generating its own security concerns which are answered by manned guarding supporting Vigilant, (4) continued recovery within the Security Systems and Locksmiths businesses, moderated by Lockdown 3. Looking further forward, we view the company as a gainer from renewed economic activity looked for in the second half of calendar 2021, and see future opportunities within the increased emphasis on security, the strong brands within the group (notably Vigilant) and the excellent track record in winning prestigious local authority and other contracts. The company has highlighted potential consolidation opportunities going forward, and this too seems very believable."

Another article on Atik's growing OEM contracts re PCR testing cameras:

Https://www.med-technews.com/news/Covid-19-Medtech-News/imaging-specialist-expands-collaboration-with-oems-for-pcr-d/

"Imaging specialist expands collaboration with OEMs for PCR DNA amplifiers
26 February 2021

Atik Cameras, a designer and manufacturer of advanced scientific imaging solutions, has further expanded its collaboration with Original Equipment Manufacturers (OEMs) of real time Polymerase Chain Reaction (PCR) DNA amplifiers, securing multiple new contracts to supply cameras for reliable COVID-19 testing.

Under the new agreements, OEMs will access Atik Cameras’ range of off-the-shelf and customised charge-coupled-device (CCD) and complementary metal oxide semiconductor (CMOS) cameras that are ideal for use with PCR instruments. The company’s commercially competitive VS series of scientific CCD cameras offer high sensitivity and image quality and are proven across thousands of PCR installations. Furthermore, Atik Cameras’ Advanced CMOS Imaging Systems (ACIS) series has also been recognised as a camera suitable for meeting the imaging needs of PCR applications.

In part due to the new contracts, Atik Cameras’ parent company, the SDI Group, which is listed on the LSE Alternative Investment Market (AIM) and focusses on the design and manufacture of scientific and technology products for use in digital imaging as well as sensing and control applications, anticipates it will exceed its initial expectations for the financial year ending on 30 April 2021.

Ken Ford, chairman of the SDI Group, said: “We are very pleased that our Atik Cameras business unit has secured follow-on camera orders from OEM manufacturers of real time PCR DNA amplifiers for delivery by 30 April 2022. This is a significant endorsement of Atik Cameras’ design and production capabilities, in recognition of its strong expertise in delivering powerful, dependable imaging solutions for the life science industry.”

To further grow and strengthen its production capability, and facilitate increased delivery of products for PCR experiments, Atik Cameras has expanded its ISO 9001 manufacturing facilities to enable the company to work with more potential partners. The company is investing additional resources into the advancement of PCR technology, working with customers to develop the next generation of PCR instruments, with the aim of increasing processing speed and throughput."

Good summary on the respected Techmarketview:

Https://www.techmarketview.com/ukhotviews/archive/2021/03/01/centralnic-scaling-rapidly

"Monday 01 March 2021
CentralNic scaling rapidly

Full year results from internet domain name and web services provider CentralNic, show the impact of its acquisition-led growth strategy, increasing revenue by 121% in 2020 to $241.2m (FY19 $109.2m). Profitability also grew significantly with adjusted EBITDA up by 71% to $30.6m (FY19 $17.9m). Organic growth was also decent and shows how resilient the “Internet Business” has been to COVID, with revenue increasing by 9% and adjusted EBITDA by 4%.

Since its IPO CentralNic has grown aggressively through a series of international acquisitions to become very much a “house of brands” in the domain services space (see here, here and here). The firm has consolidated a number of businesses in a highly fragmented market and now has more than 45m domains using at least one of its platforms (c.13% of domains worldwide). The trick is then to monetise these domains by layering on a diverse range of monetisation services, again bought in via acquisition, such as online marketing tools, advertising or brand protection. The revenue split now between domain name sales and domain name monetisation is roughly 50/50, almost all (99%) recurring.

Whilst success requires a healthy pipeline of suitable acquisitions that can be consolidated quickly and at low cost, it also needs the identification of an ever-greater range of services that clients want to buy. CentralNic has identified future revenue streams in areas such as hosting, social marketing, cybersecurity and brand protection and has already started the new year with a couple of significant deals. Here SafeBrands adds online brand protection to the portfolio whist Wando offers expertise in the fields of social marketing, display advertising and search engine marketing (SEM). Given its track record we can expect more deals of this nature in the pipeline."

Strategic Equity Capital state in their H1 results today that they have bought into INSE as a new position in the period, and INSE have now become one of their top 10 holdings:

Https://www.investegate.co.uk/strategic-equity-capital-plc--sec-/prn/half-year-report/20210302070000PE8C7/

"Inspired Energy

Description

Is a leading UK B2B corporate energy services specialist. The company works with their clients, generally large corporates, to procure energy cost effectively, audit and report their usage of it, and help them to optimise their energy efficiency. The company has a strong focus on sustainability with a number of services that help their clients measure, report and improve their ESG performance.

Thesis

Inspired Energy is a leader in the growing, but fragmented, corporate energy services market. The increasing complexity of corporate energy requirements, and increasing regulatory and sustainability imperatives will support continued strong organic growth for the company with a likely ‘flight to quality’ leading to further increases in market share. The business model of the business is strong with high quality of earnings from long term contracts, high margins (40% EBITDA margin) and return on capital and good cash conversion. The fund’s initial investment was made as part of a placing intended to strengthen the balance sheet and provide firepower for the company to undertake a number of bolt on acquisitions to continue to consolidate its position in the market; we believe these deals will be attractive financially and strategically. Although the company’s revenues remain depressed due to lower corporate energy usage in 2020, there is significant opportunity for a rebound in revenues, and in the share price, when there is a return to a more normalised environment.

Developments in the period

Interim results were in line with expectations, although trading remained weak due to Covid restrictions over the period weighing on corporate energy usage. The core corporate division experienced a modest 5% organic decline in revenues as a result, although cash conversion and order book progression was good. The non-core SME-focused division, which represented less than 10% of group revenues was weaker, and in November the company announced that they had sold this part of the business to the management team for £10.5m. Strategically, this is a positive development and is in line with our investment thesis. The company remains well capitalised and well positioned to drive growth and execute further M&A once market conditions normalise."

in the IC today:

Https://www.investorschronicle.co.uk/ideas/2021/03/01/small-caps-with-upgrade-potential/

"Small-caps with upgrade potential

Earnings momentum is the key driver of share prices, so it pays to know when a company is likely to beat expectations. Simon Thompson highlights two small-cap companies where both the earnings and investment risks are pointing to the upside.
March 1, 2021
By Simon Thompson

Significant upgrades to net cash position
Better-than-expected adoption of wireless water control systems

Chief executive Moni Borovitz of Israeli-based technology group MTI Wireless Edge (MWE:83p) was in bullish mood during our results call. He has every reason to be, having reported 19 per cent higher annual pre-tax profit of US$4.05m (£2.9m) despite the impact on sales in certain markets due to the Covid-19 pandemic. Although cost savings flattered the bottom line, Mr Borovitz notes that over US$300,000 of savings made will be permanent.

He also highlights multiple growth drivers that should underpin another year of stellar growth. For example, MTI’s wireless water control and management systems that address water scarcity by using Motorola's IRRInet state-of-the-art communication technologies are proving a hit in French vineyards. Having launched its Tethys product in the country last year, the system is already installed in 500 vineyards, an outcome that is “much better than we expected”.

The technology is proving a big hit in the Americas, too, hardly surprising given the twin effects of climate change and water scarcity. The opening of a new office in Alberta, Canada, places MTI in a good position to win more business. MTI has also been winning new service contracts for municipalities (remote water irrigation systems for parks, for example) in Australia, Israel, and Asia. MTI’s water control division increased operating profit by 23 per cent to US$1.92m in 2020 on slightly lower sales of US$16.2m, and looks well set to deliver another year of strong growth in 2021, and well beyond.

The same is true of MTI’s Summit electronics division, which represents 40 international suppliers of radio frequency/microwave components and sells these products to customers in Israel and Russia (fifth of divisional revenue). The majority of design wins are for defence-related systems and new wireless applications in commercial markets. For example, a key specialist area of expertise is the tethered balloon sector (15 per cent of divisional revenue), a segment that is expected to continue making a strong contribution during 2021. MTI is also cross-selling its wider product offering to clients to boost sales.

MTI Summit has strong operating leverage, whereby increasing amounts of incremental gross margin earned convert into operating profit as sales rise. This explains why the unit delivered 31 per cent higher operating profit of US$1.6m on revenue up 18 per cent to US$13.7m in 2020."

Https://www.med-technews.com/news/Covid-19-Medtech-News/imaging-specialist-expands-collaboration-with-oems-for-pcr-d/

"Imaging specialist expands collaboration with OEMs for PCR DNA amplifiers
26 February 2021

Atik Cameras, a designer and manufacturer of advanced scientific imaging solutions, has further expanded its collaboration with Original Equipment Manufacturers (OEMs) of real time Polymerase Chain Reaction (PCR) DNA amplifiers, securing multiple new contracts to supply cameras for reliable COVID-19 testing.

Under the new agreements, OEMs will access Atik Cameras’ range of off-the-shelf and customised charge-coupled-device (CCD) and complementary metal oxide semiconductor (CMOS) cameras that are ideal for use with PCR instruments. The company’s commercially competitive VS series of scientific CCD cameras offer high sensitivity and image quality and are proven across thousands of PCR installations. Furthermore, Atik Cameras’ Advanced CMOS Imaging Systems (ACIS) series has also been recognised as a camera suitable for meeting the imaging needs of PCR applications.

In part due to the new contracts, Atik Cameras’ parent company, the SDI Group, which is listed on the LSE Alternative Investment Market (AIM) and focusses on the design and manufacture of scientific and technology products for use in digital imaging as well as sensing and control applications, anticipates it will exceed its initial expectations for the financial year ending on 30 April 2021.

Ken Ford, chairman of the SDI Group, said: “We are very pleased that our Atik Cameras business unit has secured follow-on camera orders from OEM manufacturers of real time PCR DNA amplifiers for delivery by 30 April 2022. This is a significant endorsement of Atik Cameras’ design and production capabilities, in recognition of its strong expertise in delivering powerful, dependable imaging solutions for the life science industry.”

To further grow and strengthen its production capability, and facilitate increased delivery of products for PCR experiments, Atik Cameras has expanded its ISO 9001 manufacturing facilities to enable the company to work with more potential partners. The company is investing additional resources into the advancement of PCR technology, working with customers to develop the next generation of PCR instruments, with the aim of increasing processing speed and throughput."

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