7th Mar 2024. 9.01am
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Update
Regency View:
Update
Craneware sees strengthening market backdrop
Craneware (CRW) reported a solid set of results for the six months ending December 31, 2023.
Financial highlights included an 8% increase in revenues to $91.2 million, an 8% rise in adjusted EBITDA to $27.5 million, and an 8% increase in adjusted profit before tax to $17 million. Other key points included a 3% growth in Annual Recurring Revenue (ARR) to $171.4 million and a 91% cash conversion of EBITDA over the last 12 months.
Operational highlights indicated a favourable response to the recently launched Optimization Suites, increased sales to both existing and new customers, strong customer retention above 90%, and a growing partner program contributing to revenue growth.
The Trisus platform now has nearly 200 million unique patient encounters, this strengthens Craneware’s competitive position and provides opportunities for product enhancement.
Looking ahead, the company noted a strengthening market backdrop in the US healthcare sector, continued growth in contracted Recurring Revenue, and confidence in delivering results for the year in line with consensus.
CEO, Keith Neilson, emphasised Craneware’s strategic position to support healthcare providers’ business transformation through technology, anticipating sustained growth and long-term value creation.
CRW Daily Candle Chart
GlobalData powers ahead: Ambitious growth plan for 2024-2026 revealed
GlobalData (DATA) announced strong full-year results for 2023, achieving a significant 28% growth in adjusted earnings (EBITDA) and surpassing a 40% margin for the first time.
Total revenue showed a solid 12% increase, with underlying revenue growing by 7%, primarily fuelled by robust subscription performance. Statutory profit before tax reached £41.5 million, marking an 8% YoY increase.
The proposed final dividend of 3.2p per share results in a total dividend of 4.6p per share – represents a 28% hike. The company has successfully completed its Growth Optimization Plan and has introduced a new Growth Transformation Plan for 2024-2026, focusing on three customer-centric divisions: Healthcare, Consumer, and Technology.
GlobalData said it is on track with its strategic initiatives, with the Inflexion acquisition of a 40% stake in the Healthcare division expected to close in Q2 2024. This transaction will bring net cash proceeds of approximately £434 million, which GlobalData data said brings flexibility for accelerated M&A activities across the entire group.
Entering the new financial year with around 80% revenue visibility, GlobalData remains well-positioned for sustainable organic growth, emphasising the importance of continued investment in AI, sales resources, and M&A. CEO Mike Danson highlighted the completion of the Growth Optimization Plan a year ahead of schedule and the company’s commitment to maintaining momentum through the new Growth Transformation Plan.
As part of the plan, the company aims to steadily progress to a 45% adjusted EBITDA margin, reinvesting in growth initiatives. Clear financial targets for FY24 and beyond include targeting high single to double-digit organic revenue growth, accelerating inorganic growth opportunities, and reaching £500 million in revenue by the end of 2026 through a combination of organic growth and M&A.
DATA Daily Candle Chart
eEnergy secures £40m funding with NatWest for green solutions
eEnergy (EAAS) has announced a £40 million Project Funding Facility with NatWest to finance energy efficiency and onsite generation technologies for public sector customers.
The facility, available for 12 years with planned investment over the first 24 months will enhance eEnergy’s competitiveness and lower its cost of capital.
CEO Harvey Sinclair emphasised the collaboration with NatWest as a strategic advantage, offering net zero energy efficiency services to larger multi-site projects. The finance facility structure aims to scale rapidly in the UK market while lowering the cost of capital and providing long-term economic benefits on each project.
In a trading update which accompanied the finance announcement, eEnergy said revenues for the 18-month period are expected to be £46 million, with adjusted EBITDA ranging from £5.1 million to £5.3 million.
EAAS Daily Candle Chart
Marlowe wipes out debt with asset sale
Marlowe (MRL) reached an agreement to sell certain GRC (governance, risk, and compliance) software and services assets to private equity firm Inflexion for an enterprise value of £430 million.
The divestment is set to eliminate Marlowe’s debts, estimated at over £180 million, and the company plans to return ‘in excess of £150 million’ to shareholders before making further investment decisions. The sale proceeds represent about 20% of group revenues and 40% of adjusted EBITDA, positioning Marlowe to focus entirely on its core compliance service markets.
The divestment includes all GRC assets except for Marlowe’s Occupational Health businesses, comprising Compliance Software, Health & Safety Compliance, Employment Law & HR, and ISO Certification segments.
CEO Alex Dacre, instrumental in establishing Marlowe as a major UK regulatory compliance market player, will transfer to the divested business upon completion and resign as CEO. Kevin Quinn will serve as the interim executive chair while the board searches for a new CEO.
MRL Daily Candle Chart
Netcall’s recurring revenue jumps 75%
Netcall (NET) announced its unaudited interim results for the six months ending December 31, 2023.
The financial highlights included:
- Revenue of £18.9 million, up 8% from H1 FY23.
- Total Annual Contract Value (ACV) at £30.1 million, up 14%.
- Adjusted EBITDA of £4.83 million, up 9%.
- Adjusted basic earnings per share at 2.08p, up 12%.
- Group cash at period end at £28.6 million, a 40% increase.
Operational highlights include the strong growth driven by cloud subscriptions, with cloud services revenue accounting for 88% of new bookings. New customers contributed significantly to demand, representing 33% of new cloud bookings.
The recurring portion of Group revenues increased to 75%, leading to robust cash flow generation. There was strong demand for cloud contact center solutions, resulting in accelerated growth in Customer Engagement revenue.
The cloud net retention rate stood at 111%, or 119% excluding the effect of a significant contract win announced in June 2022 and renewed in July 2023. The company also experienced growth in customers and partners deploying Liberty AI capabilities.
NET Daily Candle Chart
Nexxen takes a hit in Q4 as add spend falls
Nexxen International (NEXN) recently reported its financial results for the fourth quarter full year 2023.
In terms of financials, the company generated Contribution ex-TAC of $90.5 million in Q4 2023, reflecting a 12% decrease from Q4 2022, with full-year 2023 Contribution ex-TAC reaching $314.2 million, a 1% increase compared to 2022.
Programmatic revenue was $86 million in Q4 2023, a 9% decrease from Q4 2022, and $299 million for the full year 2023, a 9% increase compared to 2022. CTV revenue was $19.9 million in Q4 2023, compared to $33.0 million in Q4 2022, with CTV revenue at $85.5 million for the full year 2023, reflecting a 12% decrease compared to 2022.
The company achieved a 35% adjusted EBITDA margin on a contribution ex-TAC basis for Q4 2023. Video revenue represented 67% and 69% of the company’s programmatic revenue for the three and twelve months ended December 31, 2023, respectively.
Looking forward, Nexxen remains cautiously optimistic about macroeconomic and advertising conditions in 2024, anticipating growth and increased budgets and spending for larger customers.
NEXN Daily Candle Chart
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All content is provided for general information only and should not be construed as any form of advice or personal recommendation. The provision of this content is not regulated by the Financial Conduct Authority.
Disclaimer:
All content is provided for general information only and should not be construed as any form of advice or personal recommendation. The provision of this content is not regulated by the Financial Conduct Authority.