Amino Technologies (AMO) : Corp

24i Media collaboration

Key data

  • Share price (p) 118.0
  • Target price (p) 215.0
  • Market cap (£m) 85.9
  • Enterprise value (£m) 70.1

Hot on the heels of its successful acquisition of 24i Media earlier this month (for a total consideration of €21.4m), Amino has announced a collaboration with 24i to deliver MOBITV, a leading app-based Pay TV video streaming platform. The collaboration will see MOBITV delivered on upcycled legacy devices, via AminoOS Enable and 24i’s SmartOPERATOR TV app. The combined offering will provide MOBITV with a cost-effective solution, through upcycling already installed devices to deliver linear TV and streaming content, with comparatively modest investment. This project represents the first collaboration between Amino and 24i post-acquisition, and highlights the value and capex benefits delivered to clients through the complementary solution set. Additionally, we note that MOBITV joins Amino’s portfolio of pre-integrated solutions, which already includes leading US solution providers Tivo, Espial and Minerva. We reiterate our forecasts and target price (215p).

Andrew Darley 020 7220 0547

Gateley (GLTY) : Corp

Delivering additional value

Key data

  • Share price (p) 166.0
  • Target price (p) 210.0
  • Market cap (£m) 182.9
  • Enterprise value (£m) 186.2

Gateley is acquiring Persona Associates, one of the UK’s longest-established and leading land referencing consultancies advising on some of the UK’s largest infrastructure and regeneration projects. Persona provides expertise on statutory processes relating to long-term infrastructure projects involving Compulsory Purchase Orders, Development Consent Orders and Transport and Works Act Orders. Total consideration will be £250k of which £154k will be satisfied on completion in shares at 163p. The deferred element will be payable on 1 May 2020 (60% cash/40% shares). Persona has worked with Gateley’s property consultancy business, Gateley Hamer, for a number of years and will enable Hamer to deliver additional value added land and property information via an end-to-end service for the country’s largest infrastructure, regeneration and housing projects. It is expected to be immediately earnings-enhancing. We make no changes to our forecasts at this stage and reiterate our view that while we forecast EPS to grow at a 3-year CAGR of 6%, this rate could at least double with acquisitions. The diversification part of Gateley’s strategy is to establish complementary business services that support the legal side of the business.

Guy Hewett 020 7220 0549

Transense Technologies (TRT) : Corp

Better than expected year-end update

Key data

  • Share price (p) 60.5
  • Target price (p) 140.0
  • Market cap (£m) 7.3
  • Enterprise value (£m) 4.7

The group’s post year-end trading update is extremely encouraging, showing strong commercial traction, with 2H sales growth greater than expected resulting in revenue being about £0.2m, (or 10.8%) better than our forecast and resulting in EBITDA and post-tax earnings better than expected. It’s very pleasing to see good momentum in subscriptions revenues, which provides a strong ongoing and predictable base to future revenues. We continue to see strong upside to the shares – the market cap at just £7.3m offers potentially an order of magnitude on the upside with further commercial traction and new OEM orders anticipated.

David Buxton 020 7220 0542

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