KRM22 (KRM) : Corp

New partnership agreement

Key data

  • Share price (p) 76.5
  • Target price (p) 100.0
  • Market cap (£m) 14.0
  • Enterprise value (£m) 11.8

KRM22 has announced a further partnership agreement, with Neotas Ltd, allowing distribution of Neotas’s enhanced due diligence application over KRM22’s Global Risk Platform (GRP). Neotas has been developed to complement existing processes following regulatory changes with regard to risk and guidelines including SMCR and AML – Neotas searches all open web sources such as social media platforms, chatrooms, legal records and deep and dark web sources. In addressing operational risk and reputational risk for vital functions such as hiring processes and background checks (including politically exposed persons), KRM22 has added yet further breadth to the GRP, adding due diligence and online reputational screening. We look forward to further newsflow as the attraction of the GRP continues to grow as it extends to become a single source for risk management solutions in capital markets. Target 100p reiterated.

Andrew Darley 020 7220 0547

ZOO Digital (ZOO) : Corp

New chairman

Key data

  • Share price (p) 65.5
  • Target price (p) 180.0
  • Market cap (£m) 48.7
  • Enterprise value (£m) 50.0

ZOO has announced the appointment of Gillian Wilmot to the board as Chairman. This follows as Roger Jeynes will step down from the role on 1 July 2019 after a nine-year term. Prior to ZOO, Gillian has served in a number of board level roles for both public and private companies, including NED at Admiral and Chairman at ClearlySo. In her role as Chairman, Gillian will bring a wealth of experience from her 30-year career across B2B, technology and communication sectors. We reiterate target price (180p) and forecasts, and look forward to prelims on 26 June.

Andrew Darley 020 7220 0547

Quartix (QTX) : Corp

Strong H1 Fleet performance sees revenue upgrade

Key data

  • Share price (p) 255.0
  • Target price (p) 425.0
  • Market cap (£m) 122.0
  • Enterprise value (£m) 115.2

The leading supplier of subscription-based vehicle tracking systems has enjoyed a strong H1 performance driven by the Fleet operation, which has seen vehicles under subscription rise 11%, from 123k in January to 137k by the end of June; new telematics installations are currently running 45% ahead of last year. Pleasingly, the Fleet growth is coming from all regions and encouraging results from the new markets, offsetting some of the continuing decline in Insurance business. Due to Insurance, H1 results will be down on LY as flagged, but are ahead of forecasts. We are thus upgrading our FY revenue expectations but leave the earnings unchanged in anticipation of additional growth investment.

Lorne Daniel 020 7220 0545

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