finnCap Research Company Note - 14 January 2019

Jan 14, 2019 / Blog

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Sector: Technology & Telecoms

Ideagen (IDEA) : Corp

Bolt-on acquisition

Key data                              

  • Share price (p)                  125.5
  • Target price (p)                180.0
  • Market cap (£m)                              254.7
  • Enterprise value (£m)                    256.0

Ideagen has announced the £3.5m acquisition of Scannell Solutions, a provider of Environmental Health Safety and Quality software on a SaaS platform, based in Cork. Scannell has c100 customers including well-known brands such as Intel, Johnson & Johnson, BT, Heineken and Coca-Cola, illustrating the quality of the solution – typical of Ideagen’s acquisition strategy where M&A of quality software and a strong customer list provides a de-risked alternative to M&A. We reiterate our 180p target price and look forward to adjusting forecasts with interims, scheduled for 22 January. Ideagen continues to demonstrate that with the three certainties in life being death, taxes and regulatory compliance, automation of Governance, Risk and Compliance remains a sweet spot for continuing industry growth.

Andrew Darley |


Sector: Technology & Telecoms

Pelatro (PTRO) : Corp

FY 2018 on track with improved cash collection

Key data                              

  • Share price (p)                  72.0
  • Target price (p)                115.0
  • Market cap (£m)                              23.4
  • Enterprise value (£m)                    22.0

FY 2018 revenues and profits are in line with our growth forecasts. Moreover, H2 saw improvement on the cashflow in H1, although management is committed to further work on cash collection. Overall, it was a transformational year; in August, Pelatro acquired assets from Danateq to greatly increase its geographic reach and subscriber base. It also broadened the product suite with the addition of a Loyalty Management Solution and Notification Platform, complementing Pelatro’s own Precision Marketing Solution and creating a multi-product marketing hub. Its mobile network operating customers have more than doubled from 6 to 14 with opportunities to up-sell and cross-sell across large multinational groups, including expansion in Europe. The outlook ahead is bright and we anticipate continued growth encouraged by visible revenue of $4.4m for the FY 2019 and a further c.$15m in the pipeline. We reiterate our forecasts and TP.

Lorne Daniel |


Sector: Mining

Tri-Star Resources (TSTR) : Corp

Operations update

Key data                              

  • Share price (p)                  39.5
  • Target price (p)                68.0
  • Market cap (£m)                              37.2
  • Enterprise value (£m)                    41.0

Tri-Star has released a further update on progress being made with the commissioning of the Sohar antimony and gold production facility in northern Oman. In addition, the company has agreed to sell its antimony exploration properties in Turkey. Tri-Star’s principal asset is its 40% shareholding in SPMP; this in turn owns the Sohar plant. We maintain our 68.0p price target.

Martin Potts |

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