AIM movers: Harland & Wolff’s preferred status

Andrew Hore
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AIM movers: Harland & Wolff’s preferred status

Harland & Wolff (LON: HARL) is preferred bidder for a fleet solid support contract and the share price jumped 50.8% to 15p. Harland & Wolff’s Appledore shipyard is part of a collaboration that could win a £1.6bn contract that could be secured early next year.

Paul Davidson has built up a 3.4% stake in Parsley Box (LON: MEAL), which has announced plans to ask shareholders to agree to cancelling its AIM quotation. The share price recovered a further 16.13% to 1.8p.

Ethernity Network (LON: ENET) has won a follow-on contract for a fixed wireless base station. This second generation system has double the capacity of the previous version and the order is worth $340,000. There was a 11.7% increase in the share price to 10.5p.

Downhole oil and gas exploration equipment supplier Enteq Technologies (LON: NTQ) is pinning its hopes on the SABER RSS equipment it is developing and about to test on hard rock in Norway. Enteq has cash of $2.4m and management believes this will finance the testing and a commercial launch of SABER RSS. Interim revenues more than doubled and there was a $500,000 loss. The share price moved 11.8% higher at 9.5p.

Kromek (LON: KMK) has won £4.9m UK government contract for developing and supplying biological threat detection systems. The three-year contract begins in December and should generate longer-term maintenance revenues. Last week, a $1.3m US nuclear security contract was won. This helps to further underpin the 2022-23 forecast revenues of £18m. The shares are 4.32% higher at 8.45p each.

Chain supplier Renold (LON: RNO) grew interim revenues by 22% to £116.3m, helped by the acquisition of YUK, and there is a record order book worth £99m. Underlying pre-tax profit was two-fifths higher at £7.3m. FinnCap has upgraded its full year pre-tax profit forecast to £13.5m. The share price is 4.35% ahead at 24p.

Jeffries has reduced its target price for electrolyser and fuel cell technology developer ITM Power (LON: ITM) from 105p a share to 185p a share. The share price fell 5.14% to 95.71p. Jeffries has also downgraded from buy to hold. Ceres Power (LON: CWR) has fallen 4.58% to 383p.

Live Company Group (LON: LVCG) says artist and singer Ohnim will hold a solo exhibition at StART ART+ in Seoul in December and January. StART ART is a division of Live Company Group. The share price declined by 5.56% to 3.4p.

SSE, UK Inflation, and Tech Opportunities with Alan Green

UK Investor Magazine
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SSE, UK Inflation, and Tech Opportunities with Alan Green

We start by looking at the backdrop of rising inflation and economic uncertainty after UK inflation hit 11.1% with milk and cheese costs and main element of the higher prices.

A scenario where UK inflation is rising and US inflation falling presenting an interesting set of trading possibilities, some of which we explore.

SSE are investing 4x their profits in improving their infrastructure after benefitting from higher energy costs. We run through SSE’s latest half year report.

Frontier IP Group invest in cutting-edge technology companies including waste management, battery storage, foodtech, robotics and agritech. We look at their recent developments.

We finish the Podcast by looking at the sharp increase in Poolbeg Pharma shares.

Organic growth continues at Dotdigital

Andrew Hore
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Organic growth continues at Dotdigital

Digital marketing technology and services provider Dotdigital (LON: DOTD) appears to be back on track in North America and product enhancements should help growth to continue.

In the year to June 2022, revenues grew by 8% to £62.8m, with a much improved second half performance in North America. Contracted recurring revenues are 10% higher at £49.6m, while total recurring revenues account for 94% of total revenues. Underlying operating profit was 6% ahead at £14.5m.

All three geographic regions grew their revenues last year. After a flat first half, North America grew by 3% year-on-year following the hiring of new management. EMEA growth was 8%, while APAC growth of 18% was much slower than in the past.

Average revenues per customer rose 17% to £1,461. Greater functionality is helping to add to this figure. An increasing proportion of revenues are coming from partners.

Net cash has increased to £43.9m. The dividend has been raised from 0.89p a share to 0.98p a share. That will not use much of the cash pile, so there is plenty left to finance further product development and acquisitions.  

It may be difficult to find a suitable acquisition, but management would like to add to the functions Dotdigital can offer.

Further product launches, including the new CDXP customer experience platform, will enable organic growth to continue in the longer-term.

Momentum has continued into this year with revenues expected to grow to £67.5m, although pre-tax profit is only expected to be flat at £14.5m because of higher overheads.

The share price is 2.18% ahead at 84.4p, which is around one-third of the 2021 high, but it I still 20 times prospective earnings.

Eagle Eye expands in Europe

Andrew Hore
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7
Eagle Eye expands in Europe

Digital promotions technology provider Eagle Eye Solutions Group (LON: EYE) is acquiring France-based Untie Nots, which provides promotion and gamification SaaS products to retailers for up to €38.8m.

Eagle Eye has built up its market positions in the UK, North America and Australia. Untie Nots will give it a strong position in France and enhance it in other markets. The deal also adds gamification and additional analytics expertise. Untie Nots will be able to sell Eagle Eye products.

Unitie Nots has developed AI software that personalises promotions and the founder are set to stay at least until the end of 2024. It has recently won two contracts in North America.

Revenues increased from €1.6m to €3.02m in 2021, but the business remains loss-making. There is currently debt of €500,000.

The initial payment is €9.1m in cash and €5.9m in shares at 555p each. A placing will raise £7m at 555p a share and the rest of the cash will come from existing net cash of £3.6m. There are undrawn credit facilities of £5m.

The deferred payments of up to €23.8m will depend on achieving revenue targets in 2022, 2023 and 2024, which equates to annual growth of 60%, as well as achievement of a minimum EBITDA margin.  

The latest full year figures form Eagle Eye show an improved pre-tax profit of £2.5m and there are recurring revenues and new contracts that should enable further profit growth in the coming years.

The Eagle Eye share price fell 10p to 567.5p.

5 Things Moving Markets 16th November

UK Investor Magazine
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5 Things Moving Markets 16th November

Two killed by missile in Poland

Two people have been killed by a missile landing in Poland. Investigations are ongoing and we have no confirmation of who fired the missile, but clearly an attack on a NATO member risks an escalation. Equities futures fell overnight, but have since recovered some losses.

Oil rises after drone explosion

An exploding drone has hit an oil tanker off the coast of Oman and sent Brent Crude and WTI prices higher as a result. BP and Shell shares were both up over 1%. It is not yet clear who was behind the drone, or whether it was an intentional attack.

UK inflation hits 11.1%

UK inflation hit the highest level since 1981 last month with prices rising 11.1%. The pressure on UK households was felt in the FTSE 100’s consumer facing stocks with Next, Kingfisher and JD Sports all falling on the day.

Pound steady ahead of Autumn Statement

Jeremy Hunt is poised to deliver his Autumn Statement tomorrow and rumour are swirling of the specific announcements. However, not matter the individual policies, the overarching theme will be higher taxes and lower spending – the polar opposite of September’s doomed mini-budget.

Sage shares top FTSE 100

Sage was the FTSE 100’s top riser in early trade on Wednesday after their Sage Business Cloud helped drive a 9% increase in organic revenue growth. Sage shares were 5% higher at the time of writing.

New Aquis admission: Looking Glass Labs

Andrew Hore
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4
New Aquis admission: Looking Glass Labs

Non-fungible token platform developer Looking Glass Labs Ltd (LON: NFTX) has been introduced to Aquis. This is not a time when digital assets are in favour with investors. The previous excitement has evaporated and fellow Aquis-quoted company NFT Investments (LON: NFT) trading at well below its last stated NAV, while the demise of FTX has not helped the cryptocurrency market.
Looking Glass Labs Ltd (www.lgl.io/investors) joined the Access segment of Aquis on 14 November with Novum Securities acting as corporate adviser. The shares were already traded on the NEO Stock Exchange in Canada. The sh...

Adept Technology has fallen too far

Andrew Hore
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Adept Technology has fallen too far

Managed IT and networking services provider AdEPT Technology (LON: ADT) reported flat interim revenues and lower profit, but it is paying a 2.6p a share interim dividend. Short-term trading continues to be difficult, but AdEPT Technology’s strategy means that long-term it should prosper.
In the six months to September 2022, revenues dipped from £34.3m to £34.2m – 73% recurring. The mix is different, though. Managed services revenues grew, although the gross margin on these revenues fell from 50% to 48%. The fixed line business is down to 11% of revenues. There is an even split between governme...

Consider JLEN Environmental Assets for a FTSE 100 beating yield

UK Investor Magazine
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4
Consider JLEN Environmental Assets for a FTSE 100 beating yield

The JLEN Environmental Assets Investment Trust invests in UK-based clean energy assets spanning solar, wind, hydro, bioenergy and anaerobic digestion.

The trust’s portfolio also includes sustainable infrastructure assets such as battery storage and refuelling stations.

The portfolio is comprised of 39 assets and generated 1,314 GWh in the year to 31st March. At the same time, rising electricity prices saw the trust’s NAV rise to 115.3p per share, compared to 92.2p in the year prior. JLEN’s NAV has since rose by 7.8p per share.

JLEN Dividend Yield

In addition to a sharp increase in the trust’s NAV in last FY, the managers saw it fit to increase the total 2022 dividend to 6.80p, up from 6.76p in 2021.

Again, this dividend has increased since the full year results with the trust declaring an interim dividend of 1.78p – an increase on track to meet their 7.14p dividend target for 2023 FY.

A 7.14p dividend would yield investors 5.6% with JLEN shares trading at 128p. This far exceeds the current FTSE 100 average 12-month historical yield of 3.8%.

One of JLEN’s core financial objectives for the trust is to provide ‘predictable income growth for shareholders’. This has been demonstrated by steady dividend increases since inception.

Although JLEN shifted from an ‘inflation-linked’ dividend policy to a ‘progressive’ policy, the trust still benefits from reliable inflation-linked cashflows that will support additional dividend increases in the future.

It must be noted, there is an element of uncertainty around windfall taxes on power generators and what this could mean for JLEN’s asset’s cash producing attributes. Chris Tanner, Co-Lead Investment Manager of JLEN, discussed these implications at the recent Investment Trust conference.

Hydropower, Green Hydrogen and the UK Grid with Triple Point Energy Transition

UK Investor Magazine
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Hydropower, Green Hydrogen and the UK Grid with Triple Point Energy Transition

The UK Investor Magazine Podcast revisits Triple Point Energy Transition’s Q&A session at our Investment Trust conference.

Fund Manager Jonathan Hick summarises their holistic strategy for investing in the energy transition and takes questions from attendees.

Jonathan answers questions on the current state of the energy market, green hydrogen and how capacity of the UK grid is limiting renewable power opportunities.

Watch the full video presentation here.

Speedy Hire set for second half recovery

Andrew Hore
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7
Speedy Hire set for second half recovery

Speedy Hire (LON: SDY) interims were in line with expectations and price increases will help the second half performance. Investment in the hire fleet puts Speedy Hire in a good position as markets could become tougher.
Speedy Hire hires equipment to construction, infrastructure and industrial customers. The regional and local customer base is growing, and Speedy Hire is also tendering for large contracts.
In the six months to September 2022, revenues from continuing activities improved by 14% to £212.4m, but underlying pre-tax profit dipped from £14.6m to £14.1m. That was mainly due to higher...

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