Edison Investment Research - Innovation Group (TIG) Update: Software business building momentum

Report

Edison Investment Research

Update: Software business building momentum

Innovation Group hosted a capital markets day on 2 July showcasing its software business. IBM was revealed as the systems integration partner involved in the recent Â£46m contract win with a major UK insurer. As the worldâ€™s largest software services company, IBM offers further credibility and significant sales and marketing clout to Innovationâ€™s software capabilities. Innovationâ€™s current 31.5p share price ascribes little or no value to its software business. We believe this is overly bearish given recent positive commercial developments and present market opportunity.

07/07/2015 2 EN

Underlying

Innovation Group

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United Kingdom

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Other Reports on these Companies

Edison Investment Research

Update: Termination of coverage

Edison Investment Research is terminating coverage on Innovation Group (TIG). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

January 19, 2016 January 19, 2016 1 EN

Edison Investment Research

Update: Software business building momentum

July 7, 2015 July 7, 2015 2 EN

Edison Investment Research

Update: Â£46m software deal

Innovationâ€™s Â£46m deal with a major UK insurer is the companyâ€™s largest software win to date. With Â£12m revenues expected to be recognised over the next 12 months, our FY15 estimates now look well underpinned. The rating remains very undemanding. A sum of the parts suggests a 34p per share valuation for the BPS business alone, while this deal significantly strengthens the prospects for the software business to generate substantial incremental value beyond this.

June 17, 2015 June 17, 2015 3 EN

Datatec - FY24 underlying EPS more than doubles y-o-y

In a second more detailed trading update for FY24, Datatec confirmed revenue growth of 6% to $5.46bn, with Westcon International delivering excellent performance, Logicalis International having a strong H2 and Logicalis Latin America affected by difficult market conditions in Argentina and Brazil. The company also provided provisional EPS data, with reported EPS likely to come in ahead of our forecast and underlying EPS just below our forecast. We maintain our forecasts pending FY24 results on or around 27 May.

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Alison Turner

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Pan American Silver - La Arena divestment

Pan American Silver (PAAS) has announced a sale of the La Arena and La Arena II projects to Zijin Mining for US$245m in cash, US$50m in a contingent payment and a 1.5% NSR gold royalty. La Arena II is a copper and gold sulphide deposit that sits underneath the currently producing La Arena gold project. We view the transaction as positive for PAAS, given La Arena’s very short mine life, significant capex required to bring La Arena II into production and the fact that copper is not PAAS’s core commodity.

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Richard Williamson

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SenSen Networks - Time to scale

SenSen’s Q324 results reflect the move to a lower cost base that provides a platform for future profitability. Minor delays to the National Heavy Vehicle Regulator (NHVR) contract affected Q3 but should not affect FY24 as most of the deployment is now complete. North American Smart Cities growth is gaining traction via partnerships, underpinning Q424 momentum alongside strong fuel theft solution uptake. Restructuring to drive a return to sustainable free cash flow is mostly complete but resulted in one-off costs. We revise down our FY24 forecasts assuming similar Q4 growth from a lower Q3 base...

14h / 49m 14h / 49m 1 EN

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Update: Software business building momentum

Update: Termination of coverage

Update: Software business building momentum

Update: Â£46m software deal

Datatec - FY24 underlying EPS more than doubles y-o-y

Pan American Silver - La Arena divestment

SenSen Networks - Time to scale

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