News blog

AIM 50 Digest 27 January 2023

BY: Andrew Hore |
POSTED: 30/01/2023 |

Smart Metering Systems (SMS) has sparked another upgrade for 2022. The forecast pre-tax profit has been raised from £21.7m to £24.5m. Total dividends will be 30.25p a share. Net debt has fallen to £30.2m. A significant increase in capital spending, particularly on battery storage projects, means that there will be a large increase in net debt in 2023 and 2024.
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Mixer drinks supplier Fevertree Drinks (FEVR) surprised the market with full year revenues 3% below expectations. This led to EBITDA guidance being cut to £36m- £42m. Taking the mid-point of the range that is a reduction of more than one-fifth on the previous consensus forecasts. Costs are continuing to rise, and profit could be flat in 2023.
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IQE (IQE) says 2022 revenues were 8% ahead at around £166m. There were some contract delays. Higher photonics revenues offset weak wireless business for the semiconductor wafers manufacturer. There will be destocking in the first half of 2023.
Next Fifteen (NFC) is growing organically at 20% this year and Peel Hunt forecasts organic growth of 12% for the marketing services provider in 2023-24. Each of the business divisions is growing with business transformation producing the fastest improvement.
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Video games company Frontier Developments (FDEV) had already flagged its interim results. Revenues were £57.1m and there was an operating profit of £6.9m. Net cash was £42.6m. The new F1 game has not done as well as hoped, but the back catalogue continues to be a significant income generator. There are no changes to full year forecasts – pre-tax profit of £900,000.
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Residential rental and student accommodation properties developer Watkin Jones (WJG) believes that investor confidence is beginning to improve, but that may not show through in the figures until the second half of the current financial year. In 2021-22, group revenues were 5% lower, as was pre-tax profit at £48.8m. That was helped by an £18m gain on the disposal of two student accommodation assets. A small improvement in pre-tax profit to £50m-£55m is expected in 2022-23.
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Electrolyser technology developer ITM Power (ITM) expects lower full year results and a higher loss. There will higher costs - particularly hitting contracts near to completion - increased warranty provisions and inventory write-downs. The new chief executive is reviewing strategy. There was £318m in the bank at the end of October 2022. This should last into 2025.
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Fuel cell developer Ceres Power (CWR) says 2022 revenues will be slightly better than expected at £21m. Net cash is £182m. There have been positive results of electrolyser module testing. Talks continue with potential partners.
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Video services provider Keywords Studios (KWS) is confident of meeting 2022 expectations. Second half organic growth was 22%. This is despite reports that the video games sector declined last year.
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Dotdigital (DOTD) revealed interim revenues of £38m, while net cash was £49.6m at the end of December 2022. The US operations have stabilised, and it should grow in the year to June 2023.
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A major shareholder in Ashtead Technology (AT.) has taken advantage of the rise in the share price since flotation in November 2021 to sell shares. Buckthorn Partners sold 18.8% of the subsea equipment supplier at 310p each, raising £46.5m. The chief executive and finance director sold 425,000 and 35,000 shares respectively. The flotation price was 162p. Full year revenues were 30% higher at £72.5m.
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Vet practices operator CVS Group (CVSG) interim revenues were 8% ahead, with like-for-like growth of 7.5%. The underlying EBITDA margin was 19%. Overall trading is in line with expectations.
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Learning Technologies Group (LTG) says 2022 revenues are ahead of expectations and margins have improved. Operating profit will nearly double to at least £100m, helped by the contribution from the acquisition of GP Strategies. Net debt was reduced to £119.8m at the end of the year.
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Ticketing technology services provider accesso Technology (ACSO) has signed up 18 new clients in the past year, some of them using more than one product.
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Ergomed (ERGO) trading was in line with expectations in 2022 and the order book has grown by 23% to £295m. The life sciences services provider had cash of £19.1m at the end of 2022.
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Audio visual products distributor Midwich Group (MIDW) generated 2022 revenues of £1.2bn, up by 40%. Organic growth was 20%. This means that profit will be better than expected – consensus was £40.9m.
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Alliance Pharma (APH) generated revenues of £172m in 2022, while underlying pre-tax profit will be slightly higher than £30m, and 2023 has started well.
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Growth in the public sector helped IDOX (IDOX) to improve full year revenues by 6% to £66.2m. Engineering software and services revenues were stable. Underlying earnings grew by 7% to 2.44p a share. Acquisitions have broadened the rage of services offered and more of these services are being accessed via the Cloud.
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Tracking technology company Big Technologies (BIG) says 2022 results were ahead of expectations. This was following an upgrade last September. Revenues are expected to be £50m and EBITDA more than £30m.
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Jet2 (JET2) says winter bookings continue to strengthen and average load factors are back above 2018-19 levels. This means that 2022-23 results will be ahead of expectations with pre-tax profit before forex changes of between £370m and £385m. Summer seat capacity has been increased.
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MP Evans (MPE) produced 341,700 tonnes of crude palm oil and 73,800 tonnes of palm kernels in 2022. The average mill gate price for crude palm oil was $854/tonne, up from $810/tonne the previous year. The sixth palm oil mill is near to completion.

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