Consumer
finnCap Research Company Notes – 13 January 2020
KRM22 (KRM) : Corp
Full-year trading update
Key data
- Share price (p) 52.5
- Target price (p) 100.0
- Market cap (£m) 10.0
- Enterprise value (£m) 10.7
KRM22’s trading update for its maiden full 12-month period reveals EBITDA in line with unchanged expectations, from revenue of £4.0m (£4.3mE). ARR of £4.5m (constant currency, £4.3m at current rates) shows constancy from October, with visibility of growth into FY20 from existing customers. In addition, a small number of contract signings were slightly delayed and are expected to close imminently. The pipeline remains strong, as KRM22 continues to develop its presence and gain the critical mass which will provide a virtuous circle in reputation and revenue. Action taken in 2019 has reformed the cost base, with a further boost from $FX in 4Q19 (offsetting the –ve $FX effect on revenue), and expectations for positive EBITDA and free cashflow in 2H20 are unchanged. With gross cash of £1m (£0.9mE) and unchanged expected net debt of £1.2m at year end, we look forward to results in March/April, further contracts wins, and continuing development of momentum.
Andrew Darley 020 7220 0547 adarley@finncap.com
Quartix (QTX) : Corp
Fleet growth offsets insurance transition
Key data
- Share price (p) 364.0
- Target price (p) 425.0
- Market cap (£m) 174.2
- Enterprise value (£m) 169.1