Small Cap Value Report (Mon 26 Mar 2018) - TAP, BVXP, SAL, SAT, YOU, PURP | Graham Neary

26th Mar '18 by Graham Neary

53 comments 19008 reads

Good morning!

The following stocks are on my radar today (edited @ 14:30):

Taptica International (LON:TAP) - full year results
Bioventix (LON:BVXP) - interims
Spaceandpeople (LON:SAL) - preliminary results
Satellite Solutions Worldwide (LON:SAT)
YouGov (LON:YOU)

Taptica International (LON:TAP)

Share price: 380p (+1%)
No. of shares: 67.6 million
Market cap: £257 million

Full Year Results

This is a mobile advertising platform based in Israel but with offices around the world.

Facebook

I've just been reminding myself about what it does, looking at the case studies on their website. For example, this one (PDF file) explains how Taptica improved a US company's success in recruiting new users to download an app via Facebook.

Taptica is described as the customer's "Facebook Marketing Partner", and used its custom-built, "Facebook-optimised" platform to run the ad campaign. The Taptica platform was supposed to be a lot smarter than the default Facebook ad manager at the time.

Facebook has been on the receiving end of huge negative press and seen its share price take a tumble as users realise how much data the company has about them.

Its long-term dominance as a social network is certainly questionable, and my guess is that it will be inconvenient for Taptica if Facebook's influence begins to fade away. Facebook is probably one of its biggest venues, since its one of the most heavily-used mobile apps, so there might be a little bit of friction if its app usage suffers and people start using something else.

But Taptica seems be diversified among many advertising venues, mentioning Amazon, Disney, Twitter, Expedia, etc. on its website.

In any case, the uproar over how Facebook apps have used people's data is not directly relevant to Taptica. It says today that recent press coverage "does not affect its business model".

Results

Today's results show massive growth rates. We need to be careful about this, as there were some acquisitions during the year.

"Non-video" revenue growth is 35% - I think this is a bit closer to like-for-like growth, as there was a big video acquisition during the year. Clearly…

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Reacher

26th Mar '18

Hi Graham, Taptica International (LON:TAP) have released their results for Y/E 31/12/17 and there is strong revenue growth with increased gross margins. However, operating profits have slipped as a result of amortisation of intangibles due to acquisitions undertaken. It has a reasonably strong balance sheet with positive NTAV and current assets.

The business has established itself as a global mobile advertising platform which has seen significant growth in recent years. I would interested in any views

Thanks

TB_Investor

+1 for #Taptica

gus 1065

Yes please to Taptica International (LON:TAP) .

Also picked up Spaceandpeople (LON:SAL) micro cap results published. Pretty much in line with expectations.

https://www.investegate.co.uk/spaceandpeople-plc--sal-/rns/preliminary-results/201803260700027939I/

Principal contracts in UK and Germany recently renewed and dividend of 1.5p announced. Eye watering spread still a problem.

Also an interesting set of final figures from alternative broadband provider Satellite Solutions Worldwide (LON:SAT) . Has now reached 100,000 user target ahead of schedule and appears to be reaching operational critical mass to spread central cost base over. Still in growth phase and so loss making on a statutory basis (decent rise on an EBITDA basis) but promising (if still jam tomorrow) signs.

https://www.investegate.co.uk/satellite-solutions--sat-/rns/final-results/201803260700048367I/

Gus.

MrContrarian

My morning smallcap tweet:

Toople (LON:TOOP), Spaceandpeople (LON:SAL), Vipera (LON:VIP), Cambridge Cognition Holdings (LON:COG), Science (LON:SAG), Bioventix (LON:BVXP), Independent News & Media (LON:INM)

Toople (TOOP) 'major' contract win from bakery chain - 52 shops & HQ.
SpaceandPeople (SAL) FY pre-exceptional EPS 4.8p (2016: 0.3p). DIv 1.5p (0). Outlook: Confident business will continue to perform well but UK experiential campaign team has had a slightly slower than expected start.
Vipera (VIP) FY trading. Organic rev up 20%. Adjusted underlying EBITDA expected to show a small loss. Also "evolution in the Group's depreciation policy to depreciate capitalized [sic] intellectual property - €260k (€39k). So evolution is the new change. "Whilst we have still made a small loss at EBITDA level, with the acquisition of Soft Telecom and the funding in place, Vipera is in a strong position to take advantage of the changing finance landscape in 2018 and beyond."
Cambridge Cognition (COG) 'Major' new pharmaceutical clinical trial contract (£2.3m) and a Digital Health Catalyst grant. Trial contract delayed from last FY.
Science Group (SAG) Valuation of freeholds - Vacant Possession value £22.6m, Sale & Leaseback value £33.9m. Book value £21.7m.
Bioventix (BVXP) H1 EPS up 40%. No fig for key Troponin royalties so probably low but confident that sales will ramp in H2. I hold.
Independent News & Media (INM) Director of Corporate Enforcement to apply to the High Court of Ireland for the appointment of inspectors to investigate the affairs of the Company. Co taking legal advice as to whether the Court would have sufficient grounds. Could result in the Company incurring material costs. RNS silent on reason but it's an investigation into an abandoned plan to acquire Newstalk radio station. https://www.irishtimes.com/business/media-and-marketing/inm-taking-legal-advice-as-odce-seeks-to-appoint-inspectors-1.3439941

JonBirdy

Hi Graham

I too would be interested to hear your thoughts on Taptica International (LON:TAP) .You liked the numbers when you looked at them in September and would be keen to know what you think now.

Thanks

Glorenfeld

Possibly a redundant post, but another vote for Taptica International (LON:TAP) here. Numbers look good to me, but I don't know whether to be concerned by the more than doubling of trade receivables. Maybe this is just a timing issue, but I can't find it discussed at all in the report.

mammyoko

Please could you comment on £BVXP? Diluted EPS 54p against FY forecast of 85.9p.

Beginner

Ignore the quoted spread on Spaceandpeople (LON:SAL) . Currently available at 33p. Possibly cheap!

johnsmith68

Good morning gents. I would be keen to hear views on Bioventix (LON:BVXP) too. The sentence I picked out from todays HY report was this one re. Troponin: "..the commercial development of this exciting new product would not gear up until calendar year 2018 and this expectation has been manifest in the reporting period."
Given the understated nature of their reporting, I took this to be a pretty optimistic signal. But then I would as I'm long!

JohnEustace

Repeating a question I asked on Matylda's morning news:
Does anyone know if Taptica International (LON:TAP) (or £XLM) are using Facebook derived data and whether there might be some knock-on effect from the current controversies on their ability to keep accessing it?

doug2500

It's not clear from your post if you're aware, but to clarify for other people Bioventix (LON:BVXP) has earnings of 54p for the half year. The 85p estimate is for full year.

They have normally had stronger 2nd halfs, but I'm not sure if that will be the case this time due to the changing revenue streams.

Still it looks positive to me and I hold. Also nice to see the price drift down prior to good results, it kind of proves there's not much insider news leakage.

daveinthelakes

A copy of my reply to John's post on Matylda's morning news-

Extract from todays Taptica International (LON:TAP) RNS-

"The Company notes the recent press coverage on Facebook and confirms that this does not affect its business model."

It may not affect the model but if advertisers drop FB it is likely to have an affect on revenue. On the other hand digitally based adveritsing growth is unlikely to recede and advertisers will place with Google, Amazon etc. During the last conference call TAP said the new EC rules on data collection would not affect them because they do not identify the individual merely the device. However as we don't tend to share our mobiles this may be a somewhat simplistic assumption!

I hold TAP but not totally confident about the data issue.

mrgrowthvalue

Taptica please.

Small Cap Value Report (Mon 26 Mar 2018) - TAP, BVXP, SAL, SAT, YOU, PURP

Taptica International (LON:TAP)

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Graham Neary

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