Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Allenby Capital have updated on MWE - they have a 75p price target.
With a 7.2p per share cash pile, they forecast 4.56c EPS this year and a 3.3c dividend.
That's an ex-cash P/E of only 11.6 and a 5.3% dividend yield:
Https://wp-allenby-2020.s3.eu-west-2.amazonaws.com/media/2024/03/20240311-MTI-Wireless-Edge-Ltd-MWE.L-Allenby-Capital-Finals.pdf?c4076=on
CAPD just look ridiculously cheap imo. They're on a P/E of 6.2 on conservative forecasts, with around a 3.5% divi, and a fast growth business in MSALabs on top of its other divisions which are growing nicely and diversifying into more risk-friendly geographies. Plus they have a long-term top-notch track record.
A few random points I picked up from today's presentation:
- 2024 is expected to be a "fantastic year"
- they expect to be realising some gains from the investment portfolio "this year"
- some of these may be returned to shareholders
- the Sukari mining fleet could either be redeployed or sold,a nd again it was noted this could involve a return of funds to shareholders
- Kaizenkid elsewhere has noted that the PDI and Sukari proceeds could total $60m
- ARPOR should imprive with the move to the USA
- guidance for MSALabs this year is $50m-$60m revenues, up another 40% at the midpoint
- CAPD are fully provided against any Morila debtors
- forecast growth is almost entirely from existing contracts
- all receivables from 31-60 days old have been received
And Awale's shares climbed another 17% last night to CAD$0.30, so that holding alone's now worth almost £1.5m.
Today's nicely in line year end update suggests the recent drop has made BMS excellent value.
We can expect EPS of somewhere between Cavendish's 38p EPS and Edison's 45.4p EPS.
Accompanied by a 13p dividend, lifted by 8%.
Most importantly, the order book is up a whopping 47% to $83m, suggesting that the current year is looking very good.
Good to see the share buybacks continuing, with MWE evidently considering these higher prices to still be good value:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Transaction-in-Own-Shares/93518517
If MWE were to parcel off the now 583k shares in treasury to institutional buyers as previously they'd make a nice profit of probably £80k-£100k.
They forecast 24.1p EPS:
"High quality projects across a range of sectors
TClarke’s FY 2023 results and forward-looking commentary are in line with the November trading statement, and we make no changes to our forecasts. Revenue of £491m in 2023 exceeded the 3-year plan to double revenue from £232m in 2020 and management have confirmed the group is well positioned to achieve growth plans for 2024 and beyond backed by the £943m order book (up +70%). FY 2023 PBT of £7.6m is down from £10.3m in 2022 due to the previously highlighted measures to protect the business from the current, very challenging construction market conditions. These measures included changing some supply-chain partners mid-contract to protect project completion dates, and the early finalisation of project accounts where customer risk had been identified. All projects are expected to be delivered according to their schedules but the one-off costs of these measures restricted the operating margin to 1.9%, below the target 3.0% (2022: 2.7%, 2024E 3.1%).
We reiterate our view that on a 2024E P/E of 5.3x (vs peers 9.1x who are subject to the same market challenges), dividend yield of 5.1% and net cash of £19m the valuation underestimates the company’s long-term growth potential, and market and financial position. The key driver for the share price will be increasing evidence as the year progresses of forecast deliverability.
- Order book up 70%. The strategy of organic growth focused on five core market sectors whilst building market presence in data centres, large projects outside of London, smart buildings and healthcare is delivering. Data centres now account for £346m within the total £943m order book. This total compares to £1.1bn at October 2023 due to the normal seasonally lower win rate at the end of the year being offset by orders completed (H2 revenue was up +37% on H1).
- Net cash £19.3m up from £7.5m. Key movements were: equity raised £10.1m, dividend cost £2.5m, and free cash flow £4.1m. Importantly, given the market conditions, bad debt expense was only £0.3m and in line with the group’s historical average. On the balance sheet contract assets increased by £30m as one of the large, multi-year contracts ramped-up activity, offset by a £30m increase in trade creditors reflecting the strong cash characteristics of this contract.
- Dividend raised 10% as expected. The 2023 dividend was raised to 5.9p from 5.35p reflecting the progressive dividend policy, net cash and growth prospects.
- Medium-term target price 197p, +55% upside. Our medium-term target price is based on a -10% discount to the broad peer group average 2024E P/E. The discount reflects the impact of the larger, highly rated renewals and infrastructure operators within peers. We do not expect construction market conditions to significantly improve in the short term and expect the share price to be driven by increasing confidence in TClarke’s revenue, margin and cash
RNWH stated in their last Annual Report:
"Renew is focused on leveraging opportunities in the electricity transmission and distribution market. This is expected to grow as a consequence of the changing energy generation mix where we note that Ofgem has announced more than £20bn of initial funding to strengthen the transition to low carbon technologies"
Today National Grid "proposed a 58 billion pound ($74 billion) investment programme to boost grid networks beyond 2030 to accommodate expected growth in electricity demand and an increase in renewable power projects.
Britain has a target to decarbonise its power sector by 2035, which will require many more renewable power plants such as wind and solar that need to be connected to the electricity grid":
Https://www.reuters.com/world/uk/britains-national-grid-proposes-74-bln-energy-system-upgrade-2024-03-19/
New Edison research is out post-results (not yet incorporating the acquisition).
TIG beat forecasts on almost all metrics, with 22.4c EPS beating the 21.4c EPS forecast.
Curent year basic EPS has now been upgraded to 26.76c EPS (from 25c EPS). i.e 21.07p EPS and a P/E of 6.4.
Next year's forecast basic EPS is now 28.12c EPS:
Https://www.edisongroup.com/research/growth-and-returns-acquisition-bolsters-outlook/33362/
"Valuation:
Shinez brings US$1bn+ revenue potential Across FY24e and FY25e, the group remains at a steep discount versus peers, despite delivering faster FY23 revenue growth and margin expansion. Pro-forma with Shinez, US$1bn+ mid-term revenue seems achievable. Combined with continued operationally geared organic growth, this could drive stock upside"
Cheap on every metric imo. Directors' pay is high, but (1) they're doing an excellent job, and (2) it doesn't matter if the figures are good enough for long enough. People were moaning at MSI's huge directors' remuneration for years - then the shares re-rated and became a five-bagger.
Here's the tip:
Https://masterinvestor.co.uk/equities/small-cap-catch-up-fan-cto-and-stvg/
"Analysts Andrew Gibb and Guy Hewett at Cavendish Capital Markets estimate that the year to end December 2024 will see £600m revenues, with adjusted pre-tax profits rebounding to £17.1m, hoisting earnings up to 24.1p and amply covering a 6.5p dividend per share.
For 2025 they see £650m, £19.1m, 26.9p and 7.1p respectively.
Those estimates easily back up the analyst’s Medium-Term Price Objective of 197p for the group’s shares.
At the end of last week, the shares, which hit 159p last June, were fractionally lower at 122.50p – at which level they are a strong hold for existing shareholders and offer a bargain for newcomers."
...and this was after yesterday's results, so even before today's highly earnings-enhancing acquisition:
hTTps://citywire.com/investment-trust-insider/news/expert-view-barclays-marshalls-crh-currys-team-internet-group/a2438521?page=5
"Berenberg sees value in Team Internet Group
Internet services company Team Internet Group (TIG) is delivering ‘resilient growth’ and is expected to hit current market expectations, says Berenberg.
Analyst Ciaran Donnelly retained his ‘buy’ recommendation and increased the target price from 180p to 185p on the stock, which softened 1% to 135p after full-year 2023 results on Monday.
The results were ‘marginally ahead of the numbers in its trading update of 29 January’. Revenues were up 13% at $836m – the online marketing division grew gross revenues by 14.3% to $657.1m, while the online presence division grew gross revenues by 17.1% to $179.8m.
‘These results are 7% ahead of our forecasts for gross sales and 6% ahead for adjusted earnings,’ said Donnelly.
‘In terms of the full-year 2024 outlook, management is confident it will meet current market expectations. We update our full-year 2023 forecasts to reflect the results and make minimal changes to full-year 2024 and full-year 2025 forecasts.’
Donnelly increased the target price as he said the valuation was an ‘undemanding’ 8.2 times full-year 2024 price to earnings and the shares offer a free cashflow yield of 14%."
Excellent coverage of Pulsiv's "groundbreaking" power charging tech, and particularly nice to see that a variant is to come to support the latest Apple MacBook:
Https://www.astutegroup.com/news/industrial/groundbreaking-usb-c-technology-from-pulsiv-and-astute-electronics-signals-the-end-of-bulky-wall-chargers/
Zeus Capital are very bullish about today's new acquisition - extracts:
"Online Marketing bolt-on
Following the record FY23 results announced yesterday, Team Internet announced an accretive bolt-on acquisition for an initial consideration of $42m. The Group is continuing its strategy of making accretive bolt-on acquisitions, aiming to diversify its revenue model and expand its traffic monetisation options and capabilities. The deal is expected to complete in late May 2024, at which point we will incorporate the impact into our forecasts. We continue to believe that Team Internet’s strong track record, cash generation and growth opportunities are not reflected in its 4.8x 2024 EV/EBITDA multiple."
"¨ Transaction details: The $41.8m initial consideration, funded with existing cash reserves and debt from its RCF, is equivalent to 4.0x adjusted FY23 EBITDA of $10.4m and generates a FCF yield of over 20% based on FY23 figures. The deal is expected to create mid-single digit percentage EPS accretion on combined pro-forma numbers for FY23, before the impact of synergies. An additional $12.3m of contingent consideration is tied to ambitious financial targets over two years, which we would expect to enhance the accretion if met. With the Group currently trading on an FY24 EV/EBITDA multiple of 4.8x and generating a FCFF yield of 16.9%, we think this acquisition presents better returns to shareholders than further share buybacks at this time.
¨ Forecasts: Shinez reported $100m in gross revenue $17.2m in net revenue and $10.4m in Adjusted EBITDA for 2023. On a pro forma basis, Team Internet estimates the enlarged Group would have generated gross revenue, net revenue and Adjusted EBITDA of approximately $948m, $208m and $107m, respectively. The impact of the accretive acquisition will be incorporated into Zeus estimates upon the transaction’s completion, expected in late April/early May 2024. For FY24, we expect to add approximately half of Shinez’s $10.4m FY23 adjusted EBITDA to the Group forecasts for FY24. The deal is expected to create high-single digit percentage EPS accretion on combined pro-forma numbers for FY23, before accounting for potential synergies.
¨ Valuation: We continue to believe Team Internet shares are very attractively valued. The shares trade at only 4.8x EV/ EBITDA 2024 and 6.7x PE, with a 16.9% FCFF yield. In comparison, Online Presence peers trade at 9.2x EV/EBITDA 2024 and Online Marketing peers trade at 7.2x, 95% and 53% valuation premiums to Team Internet."
CAPD's holding in Awale Resources looks like becoming another decent-sized holding.
Awale's shares rocketed 42% last night to CAD$0.255 on excellent drilling news.
CAPD hold 8.33m shares per my records, so this is now worth £1.25m.
CAPD are also the drilling contractor at Odienne, so there should be lots more work in the future:
Https://money.tmx.com/quote/ARIC/news/6947909948766115/AwalxE9_Hits_Multiple_Shallow_HighGrade_Intercepts_Including_24_gt_AuEq_over_75_Meters_at_the_OdiennxE9_Project
""We are delighted with these assays from the follow-up program at the BBM target. The mineralization is robust and we have now confirmed plunging high grade mineralization over 500m of strike, which remains open in all directions. The consistently high-grade gold mineralization encountered in multiple drill holes underscores the prospectivity of our exploration area and highlights the substantial value it holds for our Company and stakeholders."
Big acquisition news this morning - $41.8m paid for Shinez on a bargain multiple of only 4 times EBITDA.
Plus:
- "this acquisition is expected to significantly enhance earnings per share" by around 8%-9%, i.e high single-digits, this year
- substantially increases diversification away from Google, which is excellent news
- there should as always be loads of synergies in diverting traffic via TONIC etc
Hopefully this should excite the markets.
News of yet more institutional buying.
BGF Investments have now gone above 13% with 14.375m shares. So they've bought another 1.24m shares in the last week and almost 3m shares in the last three weeks:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Holdings-in-Company/93504938
FIPP are featured on i.i.i as an AIM growth share to consider:
Https://www.ii.co.uk/analysis-commentary/five-aim-growth-shares-your-isa-ii531086
"Frontier IP (FIPP)
Price: 42p
Technology investment company Frontier IP Group FIPP is different to the other companies because if it makes a profit it tends to be because of gains in its portfolio company valuations or those realised via disposals. Management’s relationships with a number of universities in the UK and Portugal provide it with opportunities. There are parts of the portfolio that are starting to mature and provide exits.
The model is that Frontier IP earns stakes in technology spin-outs in return for providing advice and services and not from investing cash directly. In the six months to December 2023, the net asset value (NAV) increased from 81.8p/share to 84.2p/share thanks to higher portfolio valuations and a sale of Exscientia shares.
Nasdaq listed investee company Exscientia is an example of the potential for gains, although not all early-stage portfolio investments will do well. Exscientia is a spin-out from the University of Dundee and uses artificial intelligence to help drug discovery. Frontier IP has raised £14 million from share sales, whereas the cost of the investment was less than £2,000.
Another investee company Alusid, a spin-out from the University of Central Lancashire, produces sustainable tiles and could be on course for a flotation. Other investee companies are making progress with Heriot Watt University spin-out Nandi Proteins singing a commercial licence with a global food ingredients company.
There was cash of £2.7 million at the end of 2023, while a further £1.7 million was subsequently raised from selling the remaining Exscientia shares.
There has been a sharp recovery in the share price this year, but it is still 45% lower than at the end of 2022. The 50% discount to NAV partially reflects the fact that the portfolio is predominantly unquoted. Even so, this discount is too high and should narrow, while positive news on Alucid could provide further upside."
Nice comment from Shore Capital's analyst when reviewing Hill & Smith (HILS):
Https://citywire.com/investment-trust-insider/news/expert-view-hill-and-smith-costain-games-workshop-and-quilter/a2438085?re=118287&refea=218441
"However, he said the ‘stock may underperform if the market switches to a risk-on environment at some point, as we see more upside elsewhere’, particularly in engineering services group Renew (RNWH) ‘which is cheaper despite generating higher returns on invested capital, higher historic earnings growth, and having a lower risk profile’"
Tamesis have released their post-results update.
They retain their 160p target price, and note that EBITDA, PAT and net debt were all better than expectations.
They forecast 18.7c EPS this year, i.e 14.7p EPS, with "at least" a 3.04p dividend.
Brief extracts - note that they were "taken aback" by the initial share price reaction!
"And there is more to come: management are guiding to a revenue range of $355 - 375m for FY24. If delivered, and we normally get upgrades throughout the year, it will equate to a 17% CAGR since 2021 and we see no reason for this growth not to continue into 2025. As part of the guidance, the company have specifically guided to revenue from the MSALABS business at $50 – 60m, and reiterated their guidance of 21 Chrysos units to be rolled out by 2025 which we estimate will deliver $80m in sales. Capex is guided to $70 – 80m, covering sustaining capex for ongoing fleet as well as their planned expansions in the US and MSALABS.
We show our forecasts below and in the appendix. At the mid point of guidance revenue grows another 15%. We believe EBITDA will reach $98.7m assuming the margin remains at 28%. Cash from operations reaches $104.9m and net debt goes to $76.1m. This will allow management to pay out at least 3.04pps in dividends – currently yielding 3.4%.
Investment Case
The investment case is still centred on diversified and therefore low risk growth. This in turn has been accelerated by the breakthrough technology that is Chrysos which carries very low capital requirements. The engine room drilling business is benefitting from the increasingly large and high quality client base for whom Capital works and finally the mining service operations have the ability to deliver step changes to the P&L. The growth is accompanied by a dividend and an investment business with assets currently worth $47.2m. We believe the company should start to set investment parameters and structure to its investing. This, along with the release of the margins in the MSALABs operation, may encourage the market to apply a SOTP analysis to the valuation which, using our methodology, comes to 157pps."
A completely bizarre start today, presumably caused by short-term traders. And an opportunity for those wishing to buy!
Zeus have raised their forecasts for this year yet again and acknowledged the beating of their already raised expectations for last year:
They now forecast 25.4c EPS this year, rising to 27.3c EPS next year.
The dividend is also now forecast to rise to 2.2p this year. And net debt is to fall dramatically to £23.2m.
Brief extracts:
"Assisted by share buybacks in the period, adjusted basic EPS increased by 17.2% to 23.2 US cents, 3.6% ahead of our recently upgraded estimate. With these results, Team Internet extends its track record of upgrading and outperforming expectations."
"Record results
Team Internet’s FY23 results confirmed another strong year of trading from its
Online Marketing and Online Presence businesses. Both revenue and EBITDA growth remained in double digits, margins on net revenue continued to improve, and cash conversion remained strong. We continue to believe that the Group has substantial long-term growth opportunities including international expansion, new partner development, and vertical integration. In our view, Team Internet’s strong track record, cash generation and growth opportunities, both organic and inorganic, are not reflected in its 4.8x 2024 EV/EBITDA multiple."
"Outlook: Management remains confident in meeting market expectations for FY24. With Zeus estimates at the bottom of the consensus range, we increase FY24 EBITDA by $1.0m (1%) to $98.3m, which may still prove to be conservative. EPS growth, now +9.5% yoy, is enhanced by the full year impact of share buybacks. We increase FY24 DPS from 1.8p to 2.2p. Forecast changes are summarised on page 3. FY26 forecasts are also introduced today, showing 6% net revenue growth and further margin expansion.
Valuation: We continue to believe Team Internet shares are very attractively valued. Despite the strong operating performance and financial results, the share price is broadly flat on 12 month basis. The shares trade at only 4.8x EV/ EBITDA 2024 and 6.8x PE, with a 16.7% FCFF yield. In comparison, Online Presence peers trade at 9.2x EV/EBITDA 2024 and Online Marketing peers trade at 7.3x, 91% and 52% valuation premiums to Team Internet."
Good to see the CEO buying another 14,000 shares at 71.25p:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Director-PDMR-Shareholding/93500745