8th Apr 2021. 8.57am
Regency View:
Update
Regency View:
Update
D4T4 win six new contracts
The good news keeps on coming for D4T4 Solutions (D4T4) as they announced six new contract wins last week.
Worth a total of £3m in revenue in the financial year to 31 March 2021, the contract wins were in ‘key vertical sectors’ for the Group’s Celebrus family of products.
The deals included a significant multi-year contract extension with a major US financial services organisation using the Celebrus CDM platform, and a new multi-year contract with a top-five middle eastern telecommunications company for Celebrus CDP software.
Commenting on the deals, CEO Peter Kear said:
“We are delighted with these contract successes which add c£3.0million to revenue for the financial year to 31 March 2021. These wins once again demonstrate the value proposition of D4t4’s Celebrus software and will result in the Group being able to report adjusted PBT comfortably ahead of market expectations for the year to 31 March 2021 and will provide valuable annual recurring revenue (ARR) momentum as we head into the new financial year.”
D4T4 Weekly Candle Chart
Central Asian Metals hike dividend despite drop in revenue
Central Asian Metals (CAML) reported their Full-Year 2020 earnings last week…
The copper miner reported a 12% drop in revenue to $59.8m, but robust production and margins enabled the board to hike its dividend by 8 pence per share taking their Full-Year dividend to 14p versus just 6.5p the year prior (due to the cancellation of their second half 2019 dividend in response to COVID).
2021 production outlook was strong with the Kounrad mine copper production guidance, between 12,500 and 13,500 tonnes.
Commenting on the results, CEO Nigel Robinson said:
“Group EBITDA of $95.7 million at a margin of 56% was a commendable result given the weak commodity prices endured in particular during H1 2020 due to the COVID-19 pandemic”…
“Costs at both operations were well controlled and, in particular, our capital expenditure was almost 30% below our initial guidance due to savings and deferrals made during the year with a view to conserving cash”…
“We move into 2021 in a strong position with significantly improved commodity prices, producing the base metals which are essential for modern living, profitably and in a safe and sustainable environment for all our stakeholders.”
CAML Daily Candle Chart
Renew snap up water engineer J Browne and post strong trading update
Our UK infrastructure play, Renew Holdings (RNWH) recently announced the acquisition of water engineering services firm J Browne for £29.5m, and posted a bullish trading update…
J Browne is a water-focused engineering services business based in Enfield, North London. It delivers infrastructure and non-infrastructure through long-term agreements and also provides utility connections to the developer market in London & the Home Counties.
The deal will immediately add to Renew’s group earnings, with J Browne reporting profit before tax of £5.5m on turnover of £79.2m for the Full Year 2020.
CEO Paul Scott commented:
“This acquisition broadens Renew’s exposure to the UK water market and is consistent with our strategic objectives. This market offers attractive long-term growth opportunities underpinned by committed regulatory spend and is a sector we understand well from our established relationships in other water regions.”
Renew also reported an upbeat trading update in which revenue for the first half of the year is expected to be ahead of the previous financial year and in-line with management’s expectations.
RNWH Daily Candle Chart
Bioventix shows resilience despite testing disruption
Bioventix (BVXP) Half-Year sales numbers came in roughly flat (up 1.3% to £5.2m) despite severe delays caused by the pandemic.
The sheep monoclonal antibody specialist saw sales for thyroid disease tests and fertility diagnostics drop due to the slowdown in routine healthcare appointments during Covid restrictions.
However, sales relating to Bioventix flagship heart attack diagnostics antibody, Troponin ‘grew significantly once again during the period’.
Cash balances grew by £0.3m to £5.8m and the group increased their first interim dividend by 20% to 43 pence per share despite a 9% drop in pre-tax profit.
Commenting on the results, CEO Peter Harrison said:
“We are encouraged by the performance of Bioventix for the current half-year and pleased with the continued success of our vitamin D antibody and core antibody business. We remain optimistic about our troponin revenues and the success of these high sensitivity troponin products around the world, and we look forward to reporting further progress in the second half of the year.”
BVXP Daily Candle Chart
Learning Tech recurring revenues rise to 81%
Learning Technologies (LTG) recently reported a robust set of Full-Year numbers in which it said it was ‘on-track to meet long-term strategic targets’.
Whilst headline revenues were broadly flat (+2% to £132.3m), over 80% of revenues are now recurring in nature, up from 74% the year prior.
Software & Platforms revenues grew by 13% year-on-year whereas Content & Services revenue declined by 22%.
Learning Tech’s balance sheet remains strong following a successful £82m placing earlier in the year, giving the group a net cash balance north of £70m. This cash pile will no doubt see them continue to make further acquisitions in 2021.
Commenting on the numbers, CEO Jonathan Satchell said:
“LTG delivered a resilient financial performance in 2020, building recurring revenues while maintaining EBIT margin against a challenging macroeconomic backdrop,”
“LTG enters 2021 with organic growth momentum, supported by a more diversified business and enhanced capabilities to capture long term structural growth opportunities.”
The shares have started to consolidate within a small descending channel (see chart below), but with support at 147p, we’d expect Learning Tech’s long-term uptrend to kick back into gear soon.
LTG Daily Candle Chart
Robinson’s revenues climb 6%
Plastic and paperboard packaging group, Robinson (RBN) reported Final Results in-line with previous guidance.
The group delivered revenues of £37.2m, a 6% increase on 2019. Gross margin increased to 23%, from 21.4% in 2019 and profit before tax came in at £1.8m (2019: £1.5m).
Chairman, Alan Raleigh commented:
“We have recently expanded our footprint, capabilities and geographical reach with the acquisition of Schela Plast, which will better position us to serve customers in Northern Europe, as well as Central Europe and the UK in the coming year.
The pace of recovery from the pandemic across geographies and short-term spikes in resin prices are likely to create substantial uncertainty and volatility in the market in 2021. Despite this uncertainty, we remain committed to delivering above-market profitable growth and our target of 6-8% adjusted operating margin.”
After a strong finish to 2020, Robinson’s share price has started to consolidate within a broad trading range – we will be looking for support at 133p to hold firm.
RBN Daily Candle Chart
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