23rd Jan 2025. 8.59am

Regency View:

Update:

Regency View:

Update:

Argentex delivers growth and strategic progress

Argentex (AGFX) share price has climbed higher, reflecting the market’s positive reaction to its latest trading update. The company delivered revenues of £50.3 million for 2024, edging past the previous year’s figures and exceeding expectations initially set in the mid-£40 million range.

While the first quarter saw continued challenges from subdued FX market activity, the second half of the year brought a return to growth, with H2 outperforming H1. This recovery, coupled with a steady EBITDA margin, highlights Argentex’s ability to navigate adverse conditions while maintaining profitability.

Strategic progress has been a driving force behind this momentum, particularly through successful international expansion. Securing licences in Australia and Dubai has opened new markets with strong potential. The Australian Financial Services Licence enables Argentex to offer tailored currency risk management to wholesale clients, while the Dubai Financial Services Authority licence supports operations in a key financial hub. Both regions are now operational, with experienced teams in place, and are expected to contribute meaningfully to the company’s performance in the near term. These developments underline Argentex’s ambition to grow its addressable market and diversify revenue streams.

The company’s focus on innovation and operational efficiency is equally noteworthy. Significant investments have been made in re-platforming the business through the Argentex Global Platform, with progress ahead of schedule. This initiative aims to enhance customer experience through automation and a self-service model, supporting the rollout of new services in 2025. Strengthening the leadership team with seasoned professionals, such as COO Tim Rudman, has further bolstered the company’s capabilities. With a clear roadmap and multiple new revenue streams on the horizon, Argentex is well-positioned to build on its achievements and drive sustained growth into 2025.

AGFX Daily Candle Chart

AGFX Daily Candle Chart

Alliance Pharma surge on acquisition bid: Position to be closed

Alliance Pharma (APH) share price has jumped after the company accepted a bid from asset management firm DBAY Advisors. The all-cash offer of 62.5p per share, valuing the company at £349.7 million ($429.6 million), represents a significant premium of around 41% compared to the stock’s closing price just before the announcement. This rise in value reflects investor optimism surrounding the deal, making Alliance Pharma one of the top-performing stocks in London.

The acquisition, expected to be completed by the first half of 2025, has generated significant market interest, with the stock rising as much as 39% in early trading. The offer has clearly captured the attention of shareholders, and the company’s board has recommended that shareholders vote in favour of the deal. With the substantial premium on offer and the expected timeline for closure, this presents an appealing opportunity for investors to realise their gains.

In light of the acquisition and the increase in share price, we have decided to close our position in Alliance Pharma. By exiting now, we are locking in the profits from the recent rise in price, taking advantage of the immediate premium offered by DBAY Advisors. With the deal set to close in the coming months, we believe this is the right time to exit, ensuring we capitalise on the current market dynamics and the certainty of the cash offer.

APH Daily Candle Chart

APH Daily Candle Chart

Bango reports strong growth and new CFO appointment

Bango (BGO) has delivered a solid trading update for the 12 months ended 31 December 2024, with total revenue rising by 16% to $53.4 million, up from $46.1 million in FY23. Key drivers of this growth include a strong 11% increase in transactional revenue to $36.2 million, alongside a 28% rise in DVM & One-Off Revenue, which reached $17.2 million. The company has also posted impressive growth in Annual Recurring Revenue (ARR), up 59% to $14.0 million, reflecting the growing demand for its Digital Vending Machine (DVM) platform.

Operationally, Bango continues to expand its customer base, with 27 DVM contracted customers at the end of 2024, up from 18 at the end of 2023. New partnerships with major players such as Disney+ and a number of telcos in APAC and Eastern Europe highlight the success of its subscription bundling solutions. The company also increased its content provider integrations, now standing at 110, alongside a growing network of 27 eDisti partners, further streamlining the process for DVM customers.

In addition to the financial and operational progress, Bango has announced the appointment of Matt Wilson as the new CFO, a strategic move to support the company’s next growth phase. With ongoing profitability from its payments business and strong momentum in its DVM platform, Bango enters 2025 in a strong position to continue expanding its market leadership in subscription bundling technology.

BGO Daily Candle Chart

BGO Daily Candle Chart

Filtronic trading ahead of expectations

Filtronic (FTC) released a short but impactful trading update, which has propelled its shares to new highs. The company, known for its design and manufacturing expertise in aerospace, defence, space, and telecoms infrastructure markets, revealed that order intake for the current financial year is surpassing expectations. As a result, the Board anticipates delivering stronger results than previously forecasted, following an earlier market upgrade.

This positive news has spurred investor confidence, with Filtronic’s shares breaking out to new highs on the back of the announcement. The company’s ability to exceed order intake expectations highlights the strength of its market position and suggests robust demand across its key sectors. With the full-year results now likely to exceed the already upgraded expectations, Filtronic is well-placed to maintain its positive momentum going into the next period.

This trading update underscores Filtronic’s capacity to outperform, even in a competitive landscape, reinforcing its strong fundamentals and growth trajectory. The higher-than-anticipated order intake signals continued confidence in its offerings, making the company an attractive prospect for those keeping an eye on the aerospace and defence sectors.

FTC Daily Candle Chart

FTC Daily Candle Chart

IG Design drop amid challenging trading conditions

IG Design (IGR) has seen its share price drop sharply following a trading update that revealed continued struggles in its key markets.

Despite efforts to transform the business, including cost-saving initiatives and streamlining operations, the company is facing persistent headwinds. In particular, the DG Americas division has been hit hard by challenging retail conditions, including the bankruptcy of a major customer and weaker-than-expected sales during the critical Christmas season. As a result, IG Design now expects full-year revenue to be around 10% lower than the previous year, with both its divisions facing declines.

The update also highlighted the need for significant provisions, around $15 million, to offset exposure to distressed customers and inventory associated with them. This has compounded the company’s difficulties, with forward orders being delayed or reduced by retail customers.

The outlook for FY25 has been downgraded with profit delivery expected to be well below market expectations, and margins that had been targeted to return to pre-pandemic levels are now out of reach. Despite these challenges, the company remains focused on its turnaround efforts under the leadership of new CEO for DG Americas, Sue Buchta, and continues to pursue strategic changes to strengthen its position.

We have placed the stock under review and will wait for the dust to settle following last week’s sharp drop before making decisions about our long-term stance on the company.

IGR Daily Candle Chart

IGR Daily Candle Chart

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