17th Sep 2020. 9.05am
Regency View:
Update
Regency View:
Update
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MWE build momentum following ‘significant’ 5G contract win
It’s been a great month for 5G antenna firm, MTI Wireless Edge (MWE)…
After surging through 43p resistance on 4th September, MWE consolidated their gains and then gapped higher following news of an important contract win.
Its antenna division has secured a framework order totalling approximately $0.5m for a 5G dual band backhaul solution.
Dov Feiner, General Manager of MTI’s antenna division commented: “We see this order as a significant step towards the full deployment of 5G backhaul solutions. So far, we have sold thousands of antennas for 5G backhaul but all in smaller quantities and mainly for field testing and early deployments. Whereas this single larger order to be shipped over a relatively short time period is different and indicative of the market moving forward with the adoption of 5G backhaul solutions.”
MWE YTD Chart
Midwich: market’s reaction suggests the bad news baked in
Midwich (MIDW) released a sobering set of interim results last week.
The audio-visual specialist saw operating profits plunge 76.6% to £3.2m and revenues drop 4% to £302m for the six months to 30 June.
Managing Director, Stephen Fenby said Covid-19 had caused problems for the entire AV sector and had dominated its first half.
“The coronavirus pandemic represents the biggest shock to our business sector,” he said. “As the crisis unfolded, we took decisive action to protect our teams, preserve cash and support our customers and vendors. These continue to be our key priorities as the pandemic continues and will optimally position the group as the recovery continues to gather pace.”
Whilst the headline numbers were pretty shocking, the market’s tepid reaction suggests that much of the bad news is now baked in. That said, we have a price alert on the July lows, and if we breach that level we may head for the exit.
MIDW 1-Year Chart
Eckoh approve special dividend
In an upbeat AGM statement released this week, Echok (ECK) announed that its board has approved payment of a special dividend of 0.61p per ordinary share.
The secure payments provider said that given the continued resilience of its business combined with its high levels of repeat and recurring revenues its in a position to reward shareholders with the special dividend.
Eckoh’s share price has plenty of bullish momentum and we’re more than happy to continue to hold them in our AIM Investor portfolio.
ECK 1-Year Chart
Renew raise full-year guidance
We’ve been looking for a bullish catalyst to kick-start Renew Holdings (RNWH) share price and it looks like we’ve finally got one!
The shares have gapped higher following a bullish trading update which indicated that results for the year to the end of September 2020 will be “materially ahead” of current market expectations.
The infrastructure firm said its engineering activities in the rail, infrastructure and environmental markets have remained robust and reliable throughout the coronavirus (COVID-19) pandemic, thanks in part to the UK Government designating the majority of its activities as critical to the COVID-19 response.
Adjusted operating profit is likely to be between £39m and £40m and cash generation continues to be very strong.
RNWH YTD Chart
Cohort continue to make “good progress” despite COVID impact
In a brief pre-AGM statement, released this week, Cohort (CHRT) said that it had continued to make “good progress” in the year ended 30 April, achieving a record adjusted operating profit despite the impact of the Covid-19 pandemic in the final months.
The defence tech specialist said a full-year contribution from acquisition Chess, a record performance at MASS and improvement at EID had all offset weaker trading at MCL and SEA.
The statement added that it had entered the 2020-21 financial year with “a substantial long-term order book” and “a strong pipeline of order prospects”.
“We continue to expect that our trading performance for 2020/21 financial year will be in line with that achieved in the year ended 30 April 2020,” the firm concluded.
CHRT YTD Chart
Keystone Law post solid numbers despite the pandemic
Keystone Law (KEYS) saw its turnover rise 6.5% in the first half of its financial year despite new business shrinking by nearly a third in the wake of lockdown.
Revenue reached £24.5m in the six months to 31 July but profit before tax fell 18% compared to the same period last year to £2.2m. The firm’s cash position remained strong, with £6.9m in the bank.
Keystone’s business has held up relatively well during the pandemic and CEO James Knight commented “the fully variable remuneration structure of the lawyers, who are paid when Keystone is paid, as well as the group’s small property footprint, has meant that profits and cash have both been substantially protected despite the fall in demand from our clients”.
KEYS 18-Month Chart
Bango banking on Asian growth strategy
Mobile payments firm Bango (BGO) announced this week that it has signed partnership agreements with five mobile app specialists throughout Asia.
The new partners will use the Bango Audiences customer acquisition tool to boost their app campaigns or revenues for app developer clients. Asia is the most advanced region in adopting mobile payments technology and hence it is a key part of Bango’s long-term growth strategy.
News of the Asian deals preceded a strong trading update which saw end user numbers climb.
Bango reported record revenue growth in the first half of its current year and reiterated its expectation that end-user spending (EUS) will hit £2bn by the end of 2020.
For the six months ended June, revenues rose to £4.77m, up 50% year-on-year, while adjusted underlying earnings came in at £1.09m, more than double the entire 2019 EBITDA of £0.45m.
BGO YTD Chart
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