Shares underpinned by 5.4% dividend yield
| Vislink's cutting edge technology enables the collection of high quality live video, wirelessly, from the "scene to the screen". Trading is tough for many companies and sectors at the moment. In Q3'15, 79 profit warnings were issued across UK equities (Source: EY), up 38% sequentially on Q2 - the biggest % change in almost four years. Yesterday, Vislink also reported that conditions were challenging at its wireless equipment arm (est'15 56% of EBITA). In that unit orderflow at VCS (Vislink Communication Systems) has slipped (£42.4m Nov'YTD) - meaning sales will be "more back end loaded" than usual. Given that December is traditionally a strong month, there is a chance that some/all of the pipeline will convert in time, but we make prudent changes to forecasts. Going forward, things look brighter. VCS' newly launched IP products, incorporating 2-way wireless communication technologies to enable smart applications in the field, have been well received by clients and are already selling well. Elsewhere Pebble Beach Systems (PBS) continues to perform in line with expectations, "benefitting from further product innovation, strengthening relationships (eg Harmonic) and access to North America". We are now forecasting 2015 group sales and adjusted EBITA of £55m and £4.5m (8.2% margin) respectively - generating an underlying EPS of 2.5p and paying a 1.5p dividend (yield 5.4%). Consequently the stock at 28p appears very cheap, compared to both peers on ratings and versus our revised price target of 54p/share (from 80p). |
Pebble Beach Systems Group is a software technology company serving customers in the broadcast markets. Pebble Beach Systems is Co.'s software business. Co.'s primary products includes: Marina, an enterprise level playout automation platform for multi-channel applications; Orca, an internet protocol-enabled cloud-based integrated channel delivery solution running in a virtualized environment; Dolphin, a multi-format integrated channel delivery solutions based on standard information technology hardware; and Stingray, a self-contained Channel in a Box. Co.'s solutions enable the management, delivery and distribution of collected live video and associated data.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.