PCI Pal (PCIP) : Corp

US contract win highlights ongoing momentum

Key data

  • Share price (p) 30.0
  • Target price (p) 50.0
  • Market cap (£m) 12.8
  • Enterprise value (£m) 11.3

PCI Pal has signed a three-year contract with one of the largest privately owned companies in the US, delivering recurring ACV of $566k. PCI Pal will deploy Agent Assist throughout the customer’s contract centres, enabling the company’s 5,000+ agents to process customer payments securely. Additionally, the customer will use PCI Pal IVR, the company’s interactive voice response solution for non-agent payments, to facilitate payments through its automated payment channels. Encouragingly from a cashflow perspective, this customer has agreed to be invoiced the first year’s licence fee on signature and the next two years on delivery of the solution, which is expected to be within this financial year. This contract represents a significant milestone for PCI Pal, just two years after launching operations in the US. Notably, PCI Pal secured the contract following a competitive tender against some of its main global competitors, underpinning PCI Pal’s growing presence and referencability within the market. The board remains confident in achieving FY20 expectations. We maintain forecasts and target price (50p), and look forward to further newsflow from the company as it continues to convert opportunities globally.

Lorne Daniel 020 7220 0545 ldaniel@finncap.com

Trackwise Designs (TWD) : Corp

H2 challenges remain, but IHT is a huge opportunity

Key data

  • Share price (p) 79.0
  • Target price (p) 180.0
  • Market cap (£m) 11.7
  • Enterprise value (£m) 11.3

The company has announced its pre-close year end trading update, with a challenging market and disrupted customer order flows resulting in the expectation of full-year revenue of £2.9m and adjusted PBT of £0.2m. This implies a subdued H2 for RF; however, IHT is seeing significant commercial progress which will boost 2020 and see it becoming the group’s main revenue stream in 2021. While a modest reduction in 2019 revenues is a shame, it doesn’t detract from the huge medium-term opportunity for IHT and the substantial upside the shares could see as new contract wins occur.

David Buxton 020 7220 0542 dbuxton@finncap.com

Transense Technologies (TRT) : Corp

AGM trading update

Key data

  • Share price (p) 82.5
  • Target price (p) 140.0
  • Market cap (£m) 13.5
  • Enterprise value (£m) 10.8

The group’s trading update continues to show iTrack subscriptions progressing well, up 40% YoY, although SAWSense remains fairly flat. Revenues are in line with last year, while higher overheads to support iTrack growth has increased the loss in the first half. The statement points to trading in line for the full year. No change to forecasts. A stronger second half is implied, which relies on strong momentum in new iTrack subscriptions continuing to build.

David Buxton 020 7220 0542 dbuxton@finncap.com

Byotrol (BYOT) : Corp

Interims underpin FY 2020 outlook

Key data

  • Share price (p) 1.7
  • Target price (p) 7.0
  • Market cap (£m) 7.5
  • Enterprise value (£m) 5.5

Interim results to 30 September pointed to a substantial narrowing of EBITDA losses and provided comfort that the company is on track to deliver a positive full year EBITDA. The company is in early discussions with parties in the US to replace Byotrol24’s in-store Target trial with one in which it is not funding the up-front marketing costs. Additionally, it is working on a number of monetisation opportunities that should contribute to H2. We make no changes to forecasts and reiterate our price target of 7p, mindful of the value of its IP and the fact that the business is expected to be cashflow-positive in FY 2020.

Mark Brewer 020 7220 0556 mbrewer@finncap.com

finnCap operates an ‘access-for-all’ approach for corporate research, approved by the FCA and paid for by finnCap’s corporate clients.