11th May 2023. 9.00am
Regency View:
Update
Regency View:
Update
GlobalData’s strong growth continues
GlobalData (DATA) said its strong growth has continued in a bullish trading update released ahead of its AGM.
The industry intelligence group said revenue growth is “in line with market consensus” and has been “supported by healthy renewal rates”.
Adjusted earnings (EBITDA) are “slightly ahead of market expectations” which GlobalData said was due to “significant operating leverage in our platform coming through as expected”.
“We have started the year well, with our progress underpinned by strong revenue visibility from existing customers and new customer momentum” commented GlobalData CEO, Mike Danson.
Danson was also keen to highlight the opportunities from emerging technologies such as AI:
“We remain on track to deliver against our stated objectives. GlobalData has always benefitted from emerging technology, and we are all excited in relation to the early opportunities that generative AI and Machine Learning are presenting.”
The shares gapped higher on the update, and we expect further price gains in the coming weeks.
DATA Daily Candle Chart
Ixico reaffirms market guidance for full year
Medical imaging company, Ixico (IXI) recently published a trading update ahead of its interim results for the six months ended 31 March 2023.
Headline numbers were in line with previous statements – revenue is expected to be £3.2m for the half year to end March, down from £3.9m during the same period last year.
Ixico said its contracted order book was £13.3m, up from £12.6m and that its balance sheet remained debt free with £5m net cash.
Losses are expected to be £0.6m versus a £0.5m profit due to the negative impact of the large Huntington’s Disease trial cessations announced in March 2021 and January 2022.
Ixico said it expects to return to revenue growth in 2024 and that revenues are now increasingly driven by recently contracted trials across a broader range of therapeutic areas.
Giulio Cerroni, CEO of IXICO, said:
“The combination of our diversified order book, near term opportunities and a commitment to being at the forefront of AI based imaging biomarker analysis, mean we are well placed to deliver double digit revenue growth across the second half of FY-2023 as compared to the first half, providing the foundation for further growth across 2024 and beyond.”
IXI Daily Candle Chart
Mulberry lifted by strong China sales
In its latest trading update, Mulberry (MUL) has announced an “improvement” in retail revenue during the second half of the year ending 1 April 2023.
The luxury handbag maker reported that revenue was slightly ahead of last year, with trading in line with expectations.
Mulberry said it has seen an improvement in retail revenue over the second half of its financial year, driven by a “good performance in the UK” and an “improving environment in China” over recent months, underpinned by its direct-to-customer model.
The fashion house also said it managed to maintain its gross margin in tough conditions due to a “strategic focus on full price sales”.
Thierry Andretta, Mulberry CEO commented:
“This year we have continued to deliver on our strategic objectives while demonstrating resilience in the challenging macro-economic environment. We’ve invested in our omni-channel approach, improved our direct-to-customer-model and maintained gross margin”.
MUL Daily Candle Chart
Next 15 bounce on robust annual earnings
Next 15 Group (NFG) rallied last week after it hiked its dividend by 20% on the back of strong full year earnings.
The consultancy firm reported a 42% jump in FY adjusted profit before tax, on a 56% surge in net revenue.
Next 15 said “performance continues to be robust across all four business segments”, underpinned by a large contract win in early in 2022, the acquisition of Engine in March 2022 and other new client wins, such as Morrisons for Shopper Media Group.
CEO Tim Dyson said he expects trading for the year ahead to be in line with management expectations:
“Looking ahead, our positive trading has continued into our new financial year with good levels of activity across all four parts of the business. We have continued to see strong levels of spend from all of our major customers. In addition, our work with the public sector has remained strong and is anticipated to grow in the current year. We therefore expect our results for the full year to be in line with management expectations.”
The bounce in Next 15’s share price comes as a welcome boost and indicates that support at 730p will be defended.
NFG Daily Candle Chart
Inspecs rally on full year results
Inspecs (SPEC) share price has broken through resistance following a solid set of preliminary results for the year ended 31 December 2022.
The eyewear designer and manufacturer said trading in the first quarter of this year had been in line with expectations, due to a “rebound in European markets and continued growth in other markets”.
Inspecs also plan to launch key brands Barbour and Superdry in new markets, including North America and Asia, during 2023.
Having struggled with the economic downturn in Europe, Inspecs finally appear to be back on track. The long-awaited expansion of their manufacturing hub in Vietnam looks set for completion during the second half of the year.
New CEO, Richard Peck said:
“The first quarter of 2023 has delivered a performance in line with our expectations and indicates that the European markets are rebounding. There are a number of exciting opportunities on the horizon for INSPECS.”
SPEC Daily Candle Chart
Sylvania Platinum increases production guidance
Sylvania Platinum (SLP) released strong production numbers for the third quarter of its financial year.
The precious metals producer upped its full year production guidance – targeting 72,000 to 74,000 4E PGM ounces due to “strong production to date”.
A 21% decrease in the basket price for the quarter, particularly reflecting the rhodium and palladium prices, impacted revenues but Sylvania said it “remains in a strong cashflow and cash position”.
Commenting on the Q3 results, Sylvania’s CEO, Jaco Prinsloo said:
“Traditionally Q3 is a lower quarter in terms of production as a result of the slower start-up after the December break at the host mines and the shorter February month”.
“In comparison with Q3 FY2022, production increased by 13.2% due to various interventions at the operations which have assisted in improving the recovery efficiencies at some of the plants”.
The market responded positively to the production update, but weaker basket prices continue to weigh on the stock.
SLP Daily Candle Chart
TPX jumps on robust outlook
TPX Impact (TPX) share have had a much needed bounce following an upbeat trading statement for the final quarter of their financial year.
The digital transformation consultancy said trading during the last quarter was at the “higher end of previous guidance”.
As a result, TPX expects to report revenue full year revenue of c.£83m with an adjusted EBITDA margin of approximately 3%.
TPX said new business generation was strong during the last quarter, totalling £36m, and that “momentum has continued into the new financial year”.
April 2023 marked a record for the Group with new business wins exceeding £80m, due to the two major new contracts announced on 28 April with HMLR (His Majesty’s Land Registry) for up to £49m over four years and the Department for Education for £27.5m over two years, both commencing May 2023.
“These wins provide a solid foundation for the current financial year and beyond” read the trading statement.
TPX raised its guidance on organic revenue growth to 15-20% for FY24 (up from 10-15% previously) and said it is targeting an adjusted EBITDA margin of 5-6%.
TPX Daily Candle Chart
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