25th Mar 2021. 8.58am
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Regency View:
Update
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Bango’s revenue jumps 70%
Bango (BGO) released a strong set of Final Results last week with revenue and profit ahead of expectations.
The mobile payment platform delivered year-on-year revenue growth of 70%, and End User Spend (EUS) increased to £1.9 billion – marking it’s sixth consecutive year of growth.
Net profit for the year came in at £4.7m with cash of £5.8m.
Bango CEO, Paul Larbey commented:
“70% revenue growth and 16x EBITDA growth are the financial indicators of the strong year Bango delivered in 2020, resulting in a net profit of £4.7M.
Our payment revenue continues to diversify as we enter new verticals and expand our addressable market. The new merchants and payment providers that joined the Bango circle in 2020 underpin our growth trajectory.”
The markets reaction to such strong numbers was relatively underwhelming but previous trading updates meant that the headline numbers weren’t a surprise. The shares continue to consolidate above their 2020 highs and we remain happy to hold.
BGO Daily Candle Chart
Cohort wins three news contracts with MoD
Cohort (CHRT) recently announced that its subsidiary, Marlborough Communications Limited (“MCL”) has been awarded three new contracts with the UK Ministry of Defence worth a combined value of approximately £9.2m.
Contracts include new partnerships with IAI Delta Systems Ltd in unmanned ground vehicles and Rohde, Schwarz in the area of electronic intelligence. Deliveries will start in Cohort’s current financial year and continue through into 2022.
Andy Thomis, Cohort CEO said:
“These contract wins clearly demonstrate the important role MCL plays in partnering with key technology providers to supply unique products and services for UK defence. Together with other recent contract wins across the Group, these contracts further strengthen our order book and enhance the visibility of our revenues in this financial year and beyond.”
The shares continue to track sideways within a series of tightening trading ranges. We expect this long-term period of price consolidation to eventually resolve in higher prices.
CHRT Daily Candle Chart
Gamma’s annual profit jumps on boost from acquisitions
Gamma Communications (GAMA) reported a sharp increase in profit as revenue was bolstered by acquisitions in Europe and growth across all key product categories during the year.
The VOIP communications services provider posted a Full Year pre-tax profit of £75m, up 66% year-on-year as revenue jumped 20% to £393.8m.
Organic revenue growth of 9% was slightly lower than originally expected due to the lower rate of sales in the second quarter driven by the COVID-19 pandemic. However, in a clear show of strength, Gamma’s board proposed am 11% increase in final dividend to 7.8p per share.
CEO Andrew Taylor, commented:
“We have delivered a good business performance and set of financial results for 2020, with both our UK and European businesses continuing to develop and grow. We have begun to successfully knit together our desired European footprint and are working with the local management to accelerate our growth in Cloud PBX in Europe.”
The shares have pushed back up into their summer-2020 highs and we will be watching closely to see how prices respond to such a key are of resistance.
GAMA Weekly Candle Chart
Spectra deliver strong Full-Year numbers
Spectra Systems (SPSY) released an upbeat set of Full-Year audited results this week…
The US-based banknote and product authentication specialist delivered 11% revenue growth for the year.
Other highlights included a 14% increase in earnings per share, an 18% jump in net income and a share buy-back scheme (645,000 shares).
Commenting on the results, CEO Nabil Lawandy, said:
“Our two-decade long relationship with a major world central bank continues to drive the introduction of more advanced products and an increasingly steady stream of hardware sales which could result in the combined development and manufacture of sensors worth over $50MM from 2019-2025.”
“These highly stable revenues underpin our growth and enable us to continuously innovate with products that could lead to more explosive growth in the coming years.”
Although the shares have underperformed the market since our entry last October, Spectra’s robust set of Full-Year numbers indicate that they remain a quality long-term investment.
SPSY Daily Candle Chart
Restore anticipates a ‘strong return to its established growth trajectory in 2021’
Restore (RST) released a confident set of Full Year results last week…
The data management service provider reported a 15% fall in revenue from continuing operations, which it said reflected the impact of the Covid-19 pandemic, primarily in the second quarter.
However, Restore said it saw a “sustained” recovery pattern through the second half of 2020, with strategic progress made on acquisitions and cost reductions.
CEO Charles Bligh said:
“With a further year of debt reduction, the business is well positioned to bounce back very strongly and is now actively investing for future growth. The recent acquisitions in Restore Technology will double revenues to £30m a year in this business and in Records Management, we are planning to invest in new sites during 2021 to absorb our accelerating net box growth momentum from 2020 and to meet future growth requirements. We have substantial quality and quantity in our acquisition pipeline with realistic pricing across all the key Business Units which we are actively pursuing.”
Restore is one of our COVID-19 recovery plays which we entered in December. These ‘turnaround’ positions need to be given time to work, and last week’s results suggest that Restore is well-positioned to mount a fightback as the economy comes out of lockdown. The shares have formed a new swing low at 320p, and we would expect this area to become a base of support from which the shares can rest their December
RST Daily Candle Chart
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