28th Sep 2023. 9.11am

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Bango’s soaring revenues – interim 2023 results exceed expectations

Bango (BGO), the global data-driven commerce platform, has reported robust interim results for the first half of 2023…

Key highlights included an impressive 88% revenue increase to $20.3m and a 63% jump in annual recurring revenue (ARR) to $5.6m. Despite integration costs from the acquisition of DOCOMO Digital, Bango’s Adjusted EBITDA was -$0.2m, in line with expectations.

Operationally, Bango strengthened its US presence with two new Digital Vending Machine (DVM) contracts and expanded into non-telecom sectors with a DVM contract with Benefit One in Japan. Bango Payments also continued to grow, integrating new routes through Amazon and Google.

Looking ahead, Bango remains confident in meeting full-year market expectations, with a healthy DVM deal pipeline and the potential for substantial Adjusted EBITDA growth in FY24 as synergies from the acquisition mature.

In the words of CEO Paul Larbey:

“I am excited about the opportunities for our Super Bundling strategy. Our leadership in the telecommunications market was extended by the acquisition of DOCOMO Digital one year ago. Profitability and cash generation will grow, as we deliver on the synergies from the acquisition. Our focus on the Digital Vending Machine is already delivering revenue growth. The recurring revenue generated from the DVM deals already won will drive exponential growth in the years to come.”

BGO Daily Candle Chart

BGO Daily Candle Chart

hVIVO’s strong H1 2023 results set positive tone

hVIVO (HVO), has posted strong interim results for the first half of 2023…

The leader in infectious disease clinical trials achieved impressive financial growth, with revenue surging by 52% to £27.3m. Additionally, EBITDA more than doubled, reaching £5.2m, with an improved margin of 19.1%.

hVIVO ended the period with a robust net cash position of £31.3m and a contracted order book of £78m, providing a solid foundation for future stability.

Key operational achievements include developing a human metapneumovirus (hMPV) challenge model, manufacturing Influenza H1N1 and Omicron challenge viruses, and signing a significant challenge trial contract in the Asia-Pacific region.

A state-of-the-art facility is set to open in H1 2024, enabling larger studies, concurrent trials, and enhanced operational efficiency.

CEO Yamin ‘Mo’ Khan expressed confidence in the company’s future, driven by the growth trend in the human challenge market and the new facility, saying, “The outlook for the business is extremely positive.”

hVIVO has increased its revenue guidance to £55m for 2023 and expects an EBITDA margin of around 19%.

HVO Daily Candle Chart

HVO Daily Candle Chart

Surface Transforms faces losses, eyes profitability by year-end

Surface Transforms (SCE) has reported a pre-tax loss of £5.5m for the first half of 2023, which is more than double the £2.5m loss from the same period in 2022.

The carbon fiber brake disc maker faced challenges in late 2022 when it tried to increase production capacity to meet its £290m order book for various automotive manufacturers.

The expansion efforts resulted in specific but significant production problems related to furnaces, leading to scrapped production. These issues were resolved in the first quarter of 2023, but their financial impact persisted. Despite the operational challenges, the company’s management is optimistic that the worst is behind them and aims to achieve profitability in the final quarter of 2023.

Revenue for the first half of the year increased by 15% compared to the previous year, reaching £3.3m. The company expects further revenue growth as it scales up production and currently has a prospective contract pipeline worth £420m.

To support its growth, ST invested £4.8m in planned capital expenditure during the first half of the year, primarily aimed at increasing capacity for 2024. The full-year capital expenditure is projected to be around £8m.

Despite the challenges faced, Surface Transforms said it remains focused on achieving a sales capacity of £50m in 2024 and £75m in the following year.

SCE Daily Candle Chart

SCE Daily Candle Chart

Spectra Systems records 25% revenue surge in H1 2023

Spectra Systems (SPSY) announced its interim results for the first half of 2023, showcasing strong financial and operational achievements.

The company, known for its expertise in banknote authentication and brand protection technologies, reported a 25% increase in revenue, reaching $11,621k, and a significant 55% rise in Adjusted EBITDA at $5,903k. Adjusted Profit surged by 59% to $5,837k, and adjusted earnings per share increased by 74% to US $10.8 cents.

Operational highlights include significant progress in the sensor development program, aimed at preproduction units in 2024 and production units in 2025. Spectra secured a higher-priced fiscal year order with a central bank customer and conducted successful tests with a new K-cup printer. Additionally, they installed their first Banknote Disinfection System with an Asian central bank and hired a new managing director for their Canadian gaming software division.

Spectra CEO, Nabil Lawandy emphasised the company’s strong cash position and proactive supply chain efforts, stating, “the company’s first half revenues and earnings are up substantially from the six months ended June 30, 2022 with increases of 25% and 59% for revenue and PBTA, respectively.” He expressed confidence that Spectra is on track to achieve record earnings and meet market expectations for the full year.

SPSY Daily Candle Chart

SPSY Daily Candle Chart

Serica Energy holds profits amidst tough UK oil environment

Serica Energy (SQZ) recently revealed its half-year results, shedding light on a tough operating environment in the UK.

Despite facing higher taxes and lower energy prices, the company managed to retain profits from its North Sea oil and gas assets.

The primary driver behind increased sales was the acquisition of Tailwind, which nearly doubled production, partly offsetting the adverse effects of lower prices and higher costs. Nevertheless, the company’s operating profit for the first half stood at £159m, representing a 20% drop from the previous year.

The Tailwind acquisition brought some tax advantages and positively impacted the company’s bottom line with a £140m ‘gain on acquisition.’ However, it also resulted in taking on additional debt and committing to higher operating costs. Despite these challenges, Serica Energy maintained a net cash position.

Serica anticipates an improvement in production during the second half, driven by work on the original Bruce and Keith wells, with a full-year production guidance ranging from 40,000 to 45,000 barrels of oil equivalent per day.

CEO, Mitch Flegg, voiced concerns about the fiscal regime and tax rate uncertainties in the UK’s offshore upstream industry:

“We welcome the UK government’s recent Call for Evidence regarding long term fiscal policy. However, the problems we see need to be addressed urgently in order to restore confidence in the sector.”

SQZ Daily Candle Chart

SQZ Daily Candle Chart

Supreme soars past expectations with record-breaking FY24 performance

Vape supplier, Supreme (SUP) released an AGM Trading Statement indicating robust performance.

The Chairman, Paul McDonald, reported strong growth in vaping activities and solid organic growth in other categories for the year ending March 2023. The company continued this momentum in H1 2024 and expects to achieve its best financial performance as a listed company.

In H1 2024, they experienced record profitable growth, leading them to anticipate FY 2024 trading significantly surpassing market expectations, with revenue around £195-£205m and Adjusted EBITDA of approximately £28-£30m. They also expect a stronger cash position than initially projected due to efficient working capital management.

Supreme’s Vaping category is a key driver of growth, with strong demand for their products, especially the 88Vape brand. Increased demand and improved margins have boosted full-year Adjusted EBITDA expectations for the core business by approximately £1.5m.

Supreme said it remains supportive of potential regulatory changes aimed at addressing concerns about youth vaping. They have also improved their distribution and storage capabilities with a new warehousing facility to support their growth ambitions.

The Board is satisfied with the company’s financial and operational progress and believes it is well-positioned for medium to long-term growth.

SUP Daily Candle Chart

SUP Daily Candle Chart

tinyBuild faces profitability struggles in saturated gaming market

Indie game publisher, TinyBuild (TBLD) said it expects ongoing challenges in achieving profitability for the rest of the financial year.

In the first half of the year, tinyBuild faced significant pre-tax losses. These difficulties are attributed to several factors, including adverse macroeconomic conditions, a saturated gaming industry with new entrants, and reduced earnings from subscription-based digital platforms like Xbox Game Pass.

In response to this challenging environment, tinyBuild has reiterated its previously lowered guidance and is now focusing on two key strategies for its turnaround. First, it aims to develop what it calls “1000-hour games” – games designed for extended play or ‘replayability’, potentially leading to the creation of larger franchises with sequels and spin-offs. Second, the company intends to enhance transparency regarding its financial progress for each project. This move might be related to the recent restructuring of roles within the organisation.

The company’s financial performance during the first half of the year saw a 19% decline in sales, dropping to $23.3m. This decline was primarily due to reduced development service revenues and the underperformance of a newly released game. tinyBuild went from reporting a pre-tax profit of $6.8m in the previous year to a pre-tax loss of $31.9m.

As a result of these challenges, tinyBuild’s share price dropped back to its recent trend lows. The stock is now trading at a market cap below its net cash position and with this in mind, we will continue to hold the stock.

TBLD Daily Candle Chart

TBLD Daily Candle Chart

Water Intelligence run lower despite strong numbers

Water Intelligence’s (WATR) share price continued to fall despite reporting strong half year profits and revenue growth.

The leak detection specialist saw its revenue rise by 9% to $38.7m. Several key areas contributed to this growth, including franchise royalty income (up 2%), franchise-related sales (up 14%), and corporate store sales (up 9%). Despite these encouraging figures, the share have continued to fall as the company face challenges stemming from rising interest rates.

Statutory profit before tax jumped by 21%, reaching $4.2m compared to the previous year’s figure of $3.5m. Additionally, the company achieved a solid 12% increase in statutory EBITDA, which amounted to $7m, and the profit before tax margin expanded to 11%.

At the end of June, the company held $18.7m in cash, with net cash (excluding bank borrowings) totalling $1.75m.

Exec Chair Dr. Patrick DeSouza commented:

“We continue to deliver strong results while navigating market volatility produced by rising interest rates and inflationary pressures. Profits increased strongly. Margins improved. Our balance sheet remains strong enabling us to make investments for future growth both in terms of more trained technicians, new technology solutions for customers and software infrastructure to enable continuous customer engagement and operating efficiencies. We remain positive about the future as market demand for water infrastructure solutions continues to grow.”

WATR Daily Candle Chart

WATR Daily Candle Chart

Yu Group see four-fold increase in adjusted earnings

YU Group’s (YU.) half year results did not disappoint with the energy supplier seeing substantial growth in various key metrics.

Revenue for the first half of 2023 reached £194.9m, marking a 51% increase compared to the same period in 2022. Adjusted earnings (EBITDA) saw a significant rise, reaching £13.7m, a four-fold increase from H1 2022. The company’s profit before tax also increased to £8.9m reflecting 62% growth compared to the previous year.

Yu Group achieved an average monthly booking of £51.3m, a substantial 259% increase compared to H1 2022. The number of meter points increased by 52%, reaching 39.7 thousand. Yü Smart, the Group’s smart metering business, has expanded, with approximately 4,000 meters installed by the end of H1 2023, providing annuity income for the Group.

Looking ahead, the company anticipates a positive outlook. The Board expects strong revenue and margin performance to continue into the second half of 2023, with adjusted EBITDA anticipated to exceed £33 million for the full year 2023.

CEO Bobby Kalar said: “We have kept our promise and delivered profitable, sustainable growth in H1 2023 and I look forward to doing the same in H2 2023 and beyond.”

YU. Daily Candle Chart

YU. Daily Candle Chart


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