Surface Transforms - Interim results: a challenging period overcome

Interims were largely pre-announced at the pre-close update. Production continues to steadily ramp up with Q1 technical issues resolved. Increased capacity, including the additional furnace, provides scope for stronger output in Q4. Management guides down FY23 revenues, with H2 now expected to reach breakeven with a profit generated in Q4. This results in a £2.0m increase in FY23 adj pre-tax loss to £4.7m. In FY24 we downgrade adj EPS by 29%. Our target price remains 120p, based on 15x the £150m

Surface Transforms (SCE LN) - Ramp up

Surface is in ramp up phase, significantly expanding factory capacity and starting to fill large OEM orders. We visited the Merseyside factory in August and the transformation over the past 18 months is striking. However, as previously reported, trading in H1 was disrupted by teething problems with production. Manufacturing is back on-track, but we now fully adjust for the impact of this disruption. Our revenue for 2023e is cut to £13m from £16m and adjusted LBT will be £4.5m vs. £2.7m previousl

Allenby Capital - Spectra Systems - Interims

FY23 interims from Spectra Systems Corp (SPSY.L), a leader in machine-readable high-speed bank note authentication, brand protection technologies, and gaming software, indicate that the company is well set to hit forecasts and achieve another record year. Revenue +25% to $11.6m and adj. EBITDA by 55% to $5.9m. The balance sheet remains strong with net cash of $16.6m (FY22: $17.5m) - operating cash flow of $4.4m offset by the $5.2m dividend paid. The outlooks remain positive in both the short and

Allenby Capital TMT Update - 25.09.23 - SPSY.L, BIRD.L, TRAK.L, ENET.L

Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.

Hybridan Small Cap Feast - 26 Sep 23

26th September 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment ob

LIBERUM: Science in Sport: The start of rebooting the equity case

Spectra Systems - Punchy H1 feeds into FY2023 and longer term opportunities

Strong H1 results from SPSY today reflect excellent traction with key customers, markets and technology. The company is a leader in machine-readable high speed banknote authentication, brand protection technologies and gaming security software. H1 sales rose 25% to $11.6m YoY (H1-22: $9.3m), benefiting from strong material sales and contracted development revenue, driving 59% increases in adj. PBTA to $5.8m (H1-22: $3.7m). Adj. EPS of 10.8c represents a 72% YoY increase, with the tax burden in

Taking the Upper Brand: Brands Sector Overview

The earliest dated brand has long been contested; the majority point to Kongō Gumi, a family run construction company that specialised in Buddhist temples in Japan; its documented record of ownership goes back to 578 AD. Like Kongō Gumi, several different brands have withstood the test of time, albeit without then same degree of longevity. The term brand originates from the 1500s and means "to burn" in Ancient Norse and was initially used to mark cattle for ownership. This practice can be consid

Morning Note – 27 September 2023

Accrol Group Holdings (ACRL LN) - FY23 results in-line, FY24 upgraded

Broad based growth in volumes and value: Revenue of £241.9m is +51.7% YOY (FY22: £159.5m) with growth across all product categories: Toilet tissue +40.2% to £163.0m (FY22: £116.3m), Kitchen towel +68.4% to £53.9m (FY22: £32.0m), Facial tissue +112.5% to £18.7m (FY22: £8.8m) and Wipes +140.0% to £4.8m (FY22: £2.0m). Sales volumes are +7.7% YOY vs. an overall flat tissue market, reflecting market share gains +200bps to 21.5% (FY22: 19.5%). Private label now represents 56% of the UK tissue market b

Hybridan Small Cap Feast - 12 Sep 23

12th September 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment ob

Hybridan Small Cap Feast - 25 Sep 23

25th September 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment ob

Hybridan Small Cap Feast - 28 Sep 23

28th September 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment ob

Reassuring outlook, with return to growth anticipated

FY23 results confirm an in line outturn, as well as reassuring on the outlook. Whilst the sales rate reduced over the summer months (0.43 in the 9 weeks to 1st Sep. vs. 0.54 in 2022), in line with peers, management anticipates a recovery during the autumn selling season. This is supported by a steadying mortgage market, its sales and marketing initiatives, and continued interest in multi-unit transactions. Gleeson Land started FY24 in a strong position with six consented sites and it has already

Portmeirion+ (PMP, House Stock, 293p) - No changes to profit forecasts after interims