25th Aug 2022. 8.58am

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Regency View:


Eckoh win ‘significant’ cloud contract

Secure payment company Eckoh (ECK) announced two contract wins last week..

The first was a 2-year contract worth a minimum of $1.3m with a global hotel company. Eckoh will provide a cloud solution, incorporating both voice payment security, digital payments, and advanced speech recognition.

When fully deployed, it is expected to cover more than 20 territories and an equivalent number of different languages.

The second contract win was for voice payment security with the Irish division of one the world’s largest insurance companies. The deal is worth a minimum of £0.6m over 5 years and it is expected that this will be one of the first clients to utilise Eckoh’s new enhanced cloud platform that has been developed through its ‘Syntegration’ project.

Eckoh CEO, Nik Philpot said:

“These and other recent contract wins are important for three reasons. First, they underline the momentum behind our decision to invest in broadening our cloud proposition geographically, with multiple suppliers and product offerings to support the growing international mandates. Second, they show the success of our strategy to cross-sell from our new suite of products. Third, they show progress for our strategy to target attractive sectors which are best suited to our model, technology, and product suite.”

“We expect the momentum we have seen in the first few months to help support our expectations of significant revenue and profit growth for Eckoh this year.”

ECK Daily Candle Chart

ECK Daily Candle Chart

Boohoo announces strategic investment in Revolution Beauty

Boohoo (BOO) announced last week that it had made a strategic investment into Revolution Beauty Group, amounting to a direct interest of just under 13% of Revolution Beauty’s issued share capital.

Revolution Beauty products are sold through several of Boohoo’s direct to consumer brand websites and its online digital department store, Debenhams.

Boohoo said, “the investment reflects boohoo’s belief in the growth potential of Revolution Beauty and it intends to be a supportive stakeholder and long-term partner”.

The news has not been warmly received by the market and on Friday Revolution Beauty said trading in its shares will be suspended from Sept. 1 as the beauty products maker does not expect to release its 2022 results by Aug. 31 after auditors flagged accounting issues.

Boohoo’s share price remains very much in bargain basement territory with the stock trading on a forward price to earnings growth (PEG) ratio of just 0.3.

BOO Daily Candle Chart

BOO Daily Candle Chart

Tremor to accelerate share buyback programme

Shares in Tremor International (TRMR) dropped last week after the smart TV advertiser released a disappointing set of Q2 numbers…

On an ex-TAC basis (removing traffic acquisition costs), Tremor guided for a Q2 revenue ex-TAC of $75m-$80m. However, it came up short of this guidance with $70.8m – causing the drop in the share price.

Tremor had also guided for adjusted earnings (EBITDA) of $40m and a 50% margin compared to revenue ex-TAC. This also fell short of guidance with EBITDA of $39.1m, but an improved margin of 51%.

On outlook, Tremor were very upbeat and expect to deliver ex-TAC revenue of $500m which includes a approx. $150m from newly acquired Amobee.

Tremor’s CEO, Ofer Druker said the business “displayed impressive resiliency while generating record profitability and best-in-class industry margins for both Q2 and H1, despite ongoing macroeconomic challenges”.

He also said that the acquisition of Amobee will help to further scale and differentiate the business.

TRMR Daily Candle Chart

TRMR Daily Candle Chart

Gattaca sees strong demand for permanent recruitment within the UK

Gattaca (GATC) published a positive trading update last week in which it said Full-Year NFI (net fee income) would be approx. £44m, a 4% increase year-on-year.

The specialist recruiter said it saw strong demand for permanent recruitment within the UK, which was up 33% year-on-year, driven by particularly strong demand in the mobility market and professional skills.

Full-Year profit before tax is expected to be break-even which is in-line with previous guidance.

Gattaca CEO, Matthew Wragg said:

“We are pleased with the performance of the Group through the second half of the year and importantly the speed in which the business is embracing our four strategic pillars; increased external focus, improved culture, operational performance, and cost rebalancing. We have established a solid foundation from which we can grow, leaving us well placed as we enter our new financial year, which has started well.”

“We are mindful of the current macro-economic conditions as we continue to see robust demand in our key markets. There remains a shortage of candidates which plays to our key strength of deep knowledge and understanding of our sectors and niche STEM skills. We remain confident that the long-term fundamentals in our core STEM markets provide an exciting future for the business as it returns to growth.”

GATC Daily Candle Chart

GATC Daily Candle Chart

Tracsis expects earnings ahead of expectations

Tracsis (TRCS) shares rallied yesterday after a strong full-year trading update…

The traffic and transport data specialist said it expects full-year earnings ahead of expectations on strong revenue growth.

Tracsis expect to deliver revenue of £69m for the financial year which ended July 31. This would represent a 37% increase from £50.2m the year before – Tracsis attributed this to strong organic and acquisitive growth.

Further, it cited a good recovery from Covid-19 in its Data, Analytics, Consultancy & Events, as well as its Rail Technology & Services divisions, which recorded “high levels of revenue growth”.

Tracsis expect adjusted earnings (EBITDA) to be ahead of market expectations. The business also maintained a healthy balance sheet with cash of approx. £17.2m which Tracsis said “enables the Group to continue to invest in its technology base and to support future organic and acquisitive growth opportunities”.

As prices approach key resistance, we are currently reviewing our position in Tracsis and will update clients accordingly.

TRCS Daily Candle Chart

TRCS Daily Candle Chart


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