ANGLE (AGL) : Corp

Third-party research – this time in kidney cancer

Key data

  • Share price (p) 62.0
  • Target price (p) 135.0
  • Market cap (£m) 107.1
  • Enterprise value (£m) 86.7

Mark Brewer 020 7220 0556 mbrewer@finncap.com

Amino Technologies (AMO) : Corp

Execution proves strategy

Key data

  • Share price (p) 134.0
  • Target price (p) 215.0
  • Market cap (£m) 101.9
  • Enterprise value (£m) 100.9

Finals for November FY19 report performance demonstrating execution of both the transformation programme announced this time last year, and the integration of the July acquisition of 24i Media. The focus on higher-margin software-enabled devices and the growth of both recurring revenue and software as a % of group revenue improves margins, visibility, and earnings quality, while returning forecasts to prospective growth. Typically strong cash generation and positive KPIs drive home the point that financial execution is on track or slightly ahead of expectations (from revenue outperformance and mild consequent revenue upgrade); while operational execution is also laudable with the joint Amino/24i contract win with Dutch MVNO Youfone, increased international diversification, and a consistent pace of R&D to satisfy and exceed client and end user requirements. A successful set of results prove the bullet was bitten bravely and justifiably, and we look forward to further contract wins. Target 215p reiterated, with forecasts benefitting from upgraded revenue (+4% FY20; +3% FY21) accommodating greater opex investment and unchanged EBITDA expectations.

Andrew Darley 020 7220 0547 adarley@finncap.com

Netcall (NET) : Corp

Interims on track as ACV builds visibility and growth

Key data

  • Share price (p) 37.0
  • Target price (p) 90.0
  • Market cap (£m) 53.1
  • Enterprise value (£m) 53.3

As revealed at the January trading update, interims to December 2019 have delivered £2.1m EBITDA from revenue of £12.3m, representing 48% of full-year targets with period-end net cash/ debt of breakeven after payment of £1.6m MatsSoft deferred consideration. Given the evident opportunity, management is expected to minimise free cash flow subject to a £1.0-1.5m buffer, through reinvestment in R&D and sales and marketing, with £16.6m ACV (annualised contract values) having grown 10% (Low-code ACV +21%). ACV in turn drives growth in recognised revenue (+13% underlying, including 22% from Low-code) as well as visibility, giving increased certainty to forecasts. Case studies abound to show the application of Low-code to client benefit, in the case of Hampshire Trust Bank delivering a project four months early and at one third of the anticipated cost; with such compelling alternatives to laborious and IT projects, Netcall’s Liberty Create solution grabs customer attention. With the cash flow certainty of the Liberty Converse customer engagement platform, and the opportunity in Liberty Create delivering evidence of a trend to momentum in growth in FY20 (June year-end), we reiterate our 90p target price.

Andrew Darley 020 7220 0547 adarley@finncap.com

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