Member Info for rivaldo

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

Excellent results today, which are nicely ahead of both Zeus's and Edison's forecasts for all of revenues, EBITDA and EPS.

The 23.22c adjusted EPS is well ahead of Zeus's 22.4c forecast.

And the 2p dividend is double that of Zeus's 1p forecast.

The CEO is already confident about meeting expectations for this year.

Given TIG's track record and prospects the current share price is just far too low.

WIA Gold's share price was up another 10% overnight to 0.075 and to more new highs. So the value of CAPD's investment in WIA has almost doubled since the year end and is now worth over £7m.

The market has already priced in last year's reduction in PBT.

But the overall health of the company looks terrific, with the order book up 70% to a whopping £943m and a positive forward outlook. The move into data centres has been a huge success and should continue to thrive.

Net cash at £19.3m compares nicely to the £67m m/cap.

Cavendish have left their forecast for 2024 unchanged at 24.1p EPS. Which leaves CTO looking very cheap.

They have a 197p price target.

Hopefully the LSE presentation will be available later as I was busy and couldn't listen.

One interesting comment from the presentation reported elsewhere (hope DangerCapital doesn't mind me reposting):

"Predictive likely to be taken over post DFS

PDi currently worth $32m to CAPD so this would be a material event"

Good to see the share price rising again on reasonably small volumes, and buyers paying the full 45p offer price - hopefully signs that there's not much stock around.

Bodruncie, all the main numbers quoted - PAT, EBITDA, net debt - were some way better than consensus forecasts. I'm not sure what more one can say in respect of being better than expectations!

Good to see the share price bouncing now after the usual ridiculous exiting by short-termers on results days. This always seems to happen with CAPD, but I suppose it does give opportunities to buyers.

Strategic Equity Capital plc, who have a £7.32m investment in INSE, note in their interims today that a the shares fell "despite strong current trading and limited newsflow".

They summarise as follows:

"Inspired Energy

Investment Thesis

UK B2B corporate energy services and procurement specialist with strong ESG credentials

Leading player in a fragmented industry; significant opportunity to gain market share through client wins, proposition extension and M&A

Valued at a substantial discount to comparable private market transaction multiples

Developments

High energy costs have driven accelerated growth in optimisation services

ESG revenues accelerating from a low base"

Results are out and look highly encouraging imo.

NAV has held up nicely at 84.2p given the macro environment. Cash is up to £4.4m including the final Exscientia shares sales.

Above all, a number of companies look particularly exciting - namely Alusid, CamGraPhIC, Fieldwork Robotics, Nandi Proteins, Pulsiv and The Vaccine Group.

A number of these are on the cusp of or are now selling product in quantity. Alusid is once again mentioned as IPO-ing soon. GraphEnergyTech and CamGraPhIC sound particularly exciting.

FIPP are trading at less than 50% of NAV. Much too great a discount.

Results are out - and are significantly ahead of consensus in all respects (except revenues as these have already been disclosed).

PAT is a substantial 9% ahead of consensus.

The core 17.5c historic EPS puts CAPD on far too low a rating, especially given the $47.5m investment portfolio which offsets 2/3 of the debt.

2024 guidance for revenues is a very decent 15% up at the midpoint - this despite Sukari mining services ending halfway through the year.

The tone of the outlook is extremely positive about "maintaining the growth momentum".

MSALabs is forecast to bring in $55m revenues this year at the midpoint - 43% up on last year.

And there's news of a new contract win "from Allied Gold Corporation for a grade control drilling services contract across its Cote d'Ivoire complex".

Last night's and this morning's RNS's suggest that Canaccord Discretionary Clients were the sellers, and their shares were picked up by (1) the buybacks and (2) Crucible Clarity Fund Plc, who increased their holding to 6.55%, or 152,393 shares.

Wow - a really NAV-enhancing move just announced. Over £916,000 of buybacks, and there must be a belief (rightly imo as above) that at 1160p the shares are extremely undervalued:

https://uk.advfn.com/stock-market/london/volvere-VLE/share-news/Volvere-PLC-Transaction-in-Own-Shares/93481302