The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I'm impressed with this update.
EBITDA is ahead of expectations, and 37.5c adjusted EPS and presumably an increase for this year puts ACSO on a cheap rating compared to most of its sector comparators. And even more so when you strip out the $31.5m cash pile.
Most importantly the outlook is very confident. ACSO are guiding a minimum of $160m turnover (up from $149.5m), and a minimum $27.2m cash EBITDA, a lovely 15% up from last year's $23.6m.
The acquisitions have all performed well, and ACSO are global market leaders in a number of areas, incorporating machine learning, mobile solutions etc.
Unless I'm missing something it seems that ACSO are very much back on the up:
Https://uk.advfn.com/stock-market/london/accesso-technology-ACSO/share-news/Accesso-Technology-Group-PLC-RESULTS-FOR-THE-YEAR-ENDED-31-DECEMBER-2023/93660941
Very prescient comment raxfactor!
So Regent are to acquire CTO for just over 164.5p. A good result for me investment-wise, but a very poor one in terms of CTO's worth, and taking advantage of the one-off dip following the very unusual contract difficulties last year.
Regent have 21%, so 24% including the directors' shares. Maybe not enough to win through if there's significant opposition or to defeat a rival bidder?
Yet another example of listed UK companies being extremely undervalued, especially a top quality company like CTO given its increasing exposure to data centres, healthcare, ESG and the like.
tipped with a 100p target following the recent contract wins:
https://*************.com/views/73973/react-group-contract-wins-including-three-material-contracts-a-trading-momentum-continuing-buy
conclusion:
"of course, the group now has to deliver on such ‘opportunities’ but they are noted to further underpin confidence in its current year performance. we’ve noted year ended 30th september 2023 ‘real’ profit around £1.6 million on revenue up to £19.6 million and forecasts for adjusted pre-tax profit to rise to above £2 million this year, with also a healthy balance sheet.
we, therefore, now further look forward to a further update on trading the group has stated it will provide next month and continue to consider a (50:1) shares consolidation-adjusted 100p+ share price, £21.5 million+ market cap, looks justifiable on the noted earnings and growth outlook. at up to 75p, still a buy."
Very interesting/intriguing news today that TIG shares have begun trading in the USA on the OTCQX, which is the premier tier of the OTC market:
"Trading on OTCQX will significantly enhance Team Internet's visibility and accessibility in the world's largest capital market"
Apparently TIG "has received interest from numerous US investors in the past and, in recent months, has hosted several meetings with US investors".
Given the CEO's comments below, perhaps this will presage an eventual move to a full US listing either away from AIM or a more premium market listing on the NASDAQ?
I wouldn't blame TIG for looking in that direction given the substantial discount compared to its US peers:
Https://uk.advfn.com/stock-market/london/team-internet-TIG/share-news/Team-Internet-Group-PLC-Commencement-of-Trading-on-OTCQX/93628568
"Michael Riedl, CEO, of Team Internet, commented: "As we mark the beginning of our trading on OTCQX, we are not just opening a new chapter for Team Internet. We reinforce our commitment to enhancing shareholder value and expanding our footprint in the United States, a market that represents nearly 50% of our revenue. This move reflects our robust performance and the investor confidence we have been fortunate to build, especially within the US, over the past year. We recognise the importance of making our shares more accessible and appealing to US investors, and qualifying to trade on OTCQX is a strategic step in that direction. We are eager to welcome new investors and invite them to join us in this exciting journey."
Dowgate have initiated coverage of REAT today with a target price of 100p and a 25 page research note.
Good to see that they say the 100p target is "conservative" as it's based on only assuming the Group achieves c60% of its medium term cashflow target.
They forecast 6.9p EPS this year, with a closing £1m cash pile.
The year starting this October is forecast at 8.1p EPS with a £3.1m closing cash pile:
Https://dowgatecapital.co.uk/documents/
CAPD's investment portfolio is now worth $60m, up from $47.2m at the start of 2024, according to darlocst as posted elsewhere.
This backs up 27% of the current m/cap - even with the core drilling and labs businesses booming and on a P/E of just 6, an EV/EBITDA of a ridiculous 2.5 and a 3.4% dividend yield.
The results certainly read well on first look, with 5.21p adjusted EPS, net debt falling nicely, selling prices across key VLG brands in UK retail increased by almost 10% this year and a very bullish outlook:
"I am delighted to announce another successful year for Venture Life Group, marked by significant commercial achievements and strengthened financial positions. Our strategic emphasis on organic growth and cash generation led to a faster reduction in net debt despite challenging market conditions. We have made notable inroads in new product development, resulting in increased revenue and showcasing our innovative in-house R&D capabilities. Furthermore, enhanced branding and marketing efforts have expanded the reach of our 9 key brands to a broader global audience, further propelling our growth trajectory. With a strong commitment to improving EBITDA margins, successful new product launches, and digital transformation initiatives, we are well-positioned for sustained success in 2024 and beyond."
With the gold price now up to almost $2,350, three of CAPD's larger investees rose nicely yesterday.
PDI were up around 6.5% to new recent highs, Allied Gold up another 4% and WIA Gold up 6%.
A very rough calculation puts CAPD's overnight gain from these movements (allowing guesswork for the Allied Gold holding) at say £2m.
A nice £5m highways company acquisition today, which in particular addresses the growth to come from the structures renewal programme within the UK Government's planned investment in the next Road Investment Strategy (RIS3) from 2025 to 2030:
Https://uk.advfn.com/stock-market/london/renew-RNWH/share-news/Renew-Holdings-PLC-Acquisition-of-Route-One/93621615
Good in particular to see the following re both the further rollout and expansion of requirements:
Https://www.touchstar.co.uk/blog/british-sugar-cctv
"As an NSI Gold system provider and installer, British Sugar were reassured that they had invested in a quality solution and are now looking to use the Newark site installation as a global standard to rollout out to the remaining three sites.
British Sugar are also considering extending the solution requirements, working with TouchStar to include full support and regular preventive maintenance to enable a futureproof, scalable, and robust CCTV system"
Liberum have issued a new 36 page Buy note this morning, with a 200p price target....
Here's their summary:
"Inspired Plc
The transition to a more diversified business is on track
The FY 23 results were slightly ahead of our estimates. We make four key points on the business: 1) Inspired has evolved from a Third-Party Intermediary (TPI) in the energy market to a technology-enabled services provider; 2) synergies between divisions help cross-selling and make Inspired uniquely qualified to help with both sides of the energy equation (cost + consumption); 3) underlying EBITDA is expected to double in five years (FY 22-27), indicating 24% upside to our FY 26 estimate; 4) the business is becoming less reliant on Energy Assurance profits, which helps increase earnings quality. In terms of valuation, a CY 24 P/E of 4.6x is attractive given the growth.
Key points
FY 23 results were slightly ahead.
Optimisation was the star performer.
Net debt (exc. leases) was flat at the H1 23 level of £49m.
Contingent consideration being paid.
Value drivers
Scope to grow in areas like Optimisation, Software and ESG.
These should accelerate growth and increase the valuation multiple.
A huge addressable market.
What market misses
Assurance
Https://www.networkrailmediacentre.co.uk/news/multi-million-pound-investment-to-futureproof-world-famous-glenfinnan-viaduct
"Thursday 4 Apr 2024
Multi-million-pound investment for world famous Glenfinnan viaduct
Network Rail will start a £3.4m investment to carry out repairs on the 123-year-old Glenfinnan viaduct this month.
Along with principal contractor AmcoGiffen, engineers will assess the condition and strength of the viaduct, while carrying out work to protect it from water erosion, completing concrete repairs and making improvements beneath the track to keep the stone ballast in place.
etc"
Per this from last week, the framework quoted below is worth nearly £2 billion in total:
Https://www.newcivilengineer.com/latest/network-rail-announces-partners-for-cp7-capital-works-delivery-in-north-west-and-central-region-27-03-2024/
"AmcoGiffen has recently been appointed to six lots on Network Rail's North West and Central CP7 framework. This significant achievement is a result of our capabilities, commitment to excellence, operational efficiency, and testament to the dedication of our people. Our lots include medium and small projects including design and build options and will extend our asset management relationship with Network Rail.
The five-year framework, which starts this month will support our sustainable growth allowing us to continue collaborating with Network Rail to generate employment and development, create local supply chain spend and drive lasting and positive change to the region and the rail industry."
Https://www.linkedin.com/posts/amco-giffen_rail-delivery-designandbuild-activity-7181669482480766977-MsF0?utm_source=share&utm_medium=member_android
WH Ireland say in their update note that they'll resume forecasts/full coverage soon "given the additional focus and enhanced earnings visibility which are now features of the company. We note that the company is trading in line with management plans".
They also note:
"Net cash was also healthy at £2.1m, and we anticipate further substantial payments in respect of Vigilant, with an anticipated recent c.£0.5m cash payment in March ’24 to be followed by a further nine payments of c.£0.40.5m each, and the redemption of £1.3m of Vigilant shares anticipated for July 2024.
WHI view: This morning’s announcement highlights regular earnings streams such as maintenance as well as project work, which is pleasing to see. Beyond this, CSSG is very well positioned in our view to use a meaningful funding stream deriving from the disposal to consolidate its market, making more such wins probable as it increasingly becomes a national player and providing increased growth potential to the business"."
Today's RNS shows 100,000 shares bought back at just over 46p, following a further 50k yesterday. MWE now hold 833,000 shares in treasury, so this buyback programme has accelerated markedly. Which is hopefully a sign that trading is continuing to go rather well.
Good to see the Non-Exec Chairman spending around £33k on more shares at 64.87p - he now has 20.39% of AEO:
Https://uk.advfn.com/stock-market/london/aeorema-communications-AEO/share-news/Aeorema-Communications-Plc-Director-PDMR-Shareholding/93602439
In addition, on Tuesday Jonathan Curry declared that his position has increased to 3.78%, or 361,000 shares.
And thirdly, Alan Charlton declared that he'd also been buying and increased to 4.21%, or 401,130 shares. He's a long-term investor in AEO who's interviewed the CEO at Mello.
This is inaddition to the recent other non-exec director share buy. It would seem that insiders and those who know the company pretty well are happy to be topping up their already large holdings at these levels.
Excellent news this morning, with both material contract wins and contract renewals which now include significant additional services.
The headline is £1.3m of annual revenues, which I assume comprises the additional £500k per annum from the new FM agreement plus the new £500k from the UK Government agency, as well as the £295k per annum from the existing FM provider? Or are the new/potential revenues in addition the core values of the contracts?
Whichever, there's also "a stream of small and medium sized wins" in addition.
It all sounds extremely promising:
Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Contract-Wins/93602432
This news from Network Rail looks good for RNWH - Network Rail have announced £2.8 billion of expenditure in the next 5 years to protect railways from climate change and extreme weather.
They particularly note repairing railway cuttings and embankments, improvements in drainage, anti-flooding measures etc which are RNWH's bread and butter.
In addition, there's a £19.3bn spend on replacing old assets with new ones and investing in projects such as digital signalling, with £12.6bn earmarked for maintenance - again all grist to RNWH's mill:
Https://news.sky.com/story/network-rail-to-invest-2-8bn-on-protecting-railways-from-climate-change-and-extreme-weather-13107105
Good to see large investee Allied Gold up 9% overnight to $3.93, presumably on high gold prices, which is the highest since last December:
Article about MSALabs looking at global expansion not posted here before:
Https://www.northernminer.com/joint-venture-article/jv-article-msalabs-probes-global-expansion-after-swedish-mega-find/1003863780/