Cloud-based communications technology specialist CloudCall Group PLC (LON:CALL) was wanted on Tuesday after an upbeat trading statement covering 2018.
The software company said it took a record number of orders in the fourth quarter of 2018, with the number of end-users finishing the year 34% higher than at the end of 2017 at 31,300.
The monthly rate of net new users grew from 580 in the first half to 724 in the second half, with the fourth quarter seeing an acceleration to 775 from the third quarter rate of 673.
Recurring revenue was up 34% year-on-year while total revenue was up 29%. The average recurring revenue per user (ARPU) remained relatively static over the period at £28 per user per month.
The group said it has not totted up all the numbers yet but it reckons that revenues, cash position and losses before tax will all be in-line with market expectations.
"2018 has been a standout year for CloudCall in terms of new product innovation and investment in our platform, and our sales and marketing capabilities,” declared the splendidly named Simon Cleaver, the chief executive officer of CloudCall.
“As with most SaaS [software-as-a-service] businesses, there is always a lag between making these investments and the resulting revenue growth, so I am delighted that we are now starting to see tangible acceleration in customer orders and user growth,” he added.
The shares were up 5.5% at 96p.
1.30pm: Elegant Hotels is walking on sunshine
Barbados-based Elegant Hotels Group PLC (LON:EHG) brought a bit of sunshine to the market today with its full-year results.
The owner and operator of seven upmarket freehold hotels and a beach-front restaurant on the island of Barbados said revenue in the year to the end of September was up 5% to US$62.9mln from US$59.9mln the year before.
RevPAR, or revenue per available room, was down just a shade at US$225 from US$227 the year before but average daily rates were up 2.0% at US$361 from the previous year’s US$354mln.
Profit before tax nudged up to US$9.5mln from US$9.2mln a year earlier.
“Barbados continues to be a hugely attractive destination for visitors and holidaymakers from all over the world, and visitor numbers from the key markets of the UK and the US have continued to increase,” declared Sunil Chatrani, the chief executive officer of Elegant Hotels.
The shares rose 10.3% to 75p even though the chief financial officer, Jeff Singleton, signalled his intention to move on.
The departure of the head bean-counter is often regarded as a red flag by the City but in this case, the numbers published today seem to have headed any nervousness off at the pass.
Perhaps it was the company’s calculation of an implied net asset value of 153p per share that did the trick; at that level, the shares are cheap at half the price.
11.10am: Mears succumbs to profit taking
Housing repairs outfit Mears Group PLC (LON:MER) gave back some recent gains after confirming 2018 results would be in line with expectations.
The shares – up from 281p on 10 December to 345p last night – were down 18p at 327p after the company said spending by customers in the Housing and Social Care sectors is broadly stable “and, though budgets are always under pressure, most of the group's activities are essential”.
The integration of the recently acquired assets and contracts from Mitie Property Services is on track and Mears said the progress to date with staff, customers and suppliers has been positive.
READ Mears bags £1bn asylum housing contract from UK government
Liberum Capital Markets stuck with its ‘buy’ recommendation and 450p price target, saying the recently landed asylum housing contract should underpin its revenue forecast for 2019.
“Average net debt of £115mln was a fraction higher than our estimate of £110mln,” it noted.
“At Housing, we nudge down EBIT [underlying earnings] from £40mln to £39mln, with lower sales but higher margins.
“At Care, we expect EBIT of £4.5mln, which represents a margin of 3.8%,” it added.
10.15am: Spire takes a nasty fall after lowering earnings guidance
Spire Healthcare Group PLC (LON:SPI), the independent hospital group, saw its shares take a nasty fall after it lowered earnings guidance.
The shares fell 10.1% after the company said it expected to report underlying earnings (EBITDA) of between £119mln and £120mln, having previously set a guidance range in September of £120mln to £125mln. The new guidance range was around 3% below the market consensus.
The company expects to report revenue of around £931mln, which is almost £3mln above the current consensus forecast.
Liberum Capital Markets has put its target price under review.
The new EBITDA forecast puts leverage at 3.8 times annual earnings; the group’s banking covenants will be breached if this goes over 4.0, the broker observed.
“This morning’s miss wasn’t entirely unexpected given the headwinds/challenges we had flagged that the business faced in hitting 2018 guidance; however, it is disappointing and uncertainty remains high for 2019 with the potential for further consensus downgrades,” the broker said.
“We continue to see some value in the property holding of the group but with continued uncertainty on the operating environment even this value is in question, hence we put out target price under review,” it added.
9.15am: 7digital keeps the taxman sweet while Mirada gets Bermuda boost
Corporate radio services provider 7digital Group PLC (LON:7DIG) has staved off the prospect of a subsidiary being wound up by coughing up money it owed.
The company confirmed that it has made payment in full of the amount due from its subsidiary 7digital Trading to Her Majesty’s Revenue and Customs (HMRC).
READ 7digital shares halve
All being well, that should be enough for the petition to wind up the subsidiary to be withdrawn.
The news was sweet music to the market and the shares rose by just over a third to 1.25p.
We are delighted to announce the commercial launch of our Iris multiscreen technology with the leading telecommunications provider @OneCommBDA in Bermuda. Read more about the launch here: https://t.co/7SVhpUbkPy #payTV #FiberWireTV #Iris #launch pic.twitter.com/mJue8pRvua
— Mirada PLC (@miradatv) January 15, 2019
Elsewhere in the broadcasting sector, there was also good news for “red button” TV software specialist Mirada PLC (LON:MIRA).
The company has announced the commercial launch of its Iris multiscreen solution for One Communications, the leading telecommunications provider in Bermuda owned by US investment firm ATN International Inc.
READ Mirada says Iris multiscreen solution commercially launched in Bermuda by ATNi unit
The shares were up 14.3% at 0.8p.
Other Proactive news headlines:
Itaconix Plc (LON:ITX) shares surged on Tuesday after it signed an exclusive global agreement with Nouryon, formerly AkzoNobel Specialty Chemicals to supply it with its bio-based polymers with chelating properties for the detergents market.
EQTEC Plc (LON:EQT) shares shot higher on Tuesday after it revealed a “landmark deal”, with Phoenix Energy signing a first equipment purchase contract in relation to the US company's first power plant in California.
Tertiary Minerals plc (LON:TYM) will assess a decision by the Swedish Mining Inspectorate to reject its application for an exploitation concession. The Mining Inspectorate stated that the economic aspects point in favour of granting the concession, and the socio-economic benefits to the community would be considerable.
Haydale Graphene PLC (LON:HAYD) has signed a supply agreement to provide 76kg of its propriety piezoresistive ink to HP1 Technologies Ltd. (HP1T) over an 18-month period. The AIM-listed advanced materials group said the value of the supply agreement is not disclosed due to its commercially sensitive nature.
StatPro Group PLC (LON:SOG) has agreed on a contract for its Revolution service with a US asset management service provider carrying a minimum value of US$1.5mln.
Internet of Things enabler Telit Communications Plc (LON:TCM) said revenue for the year just ended will be at the top end of its guidance range, with underlying earnings in line with expectations.
Clinigen Group PLC (LON:CLIN) expects to report a sharp rise in revenue and profit when it publishes its half-year results next month.
International franchisor Franchise Brands PLC (LON:FRAN) expects revenues and profits for 2018 to be “at least” in line with consensus market expectations.
Eden Research PLC (LON:EDEN) expects to report full-year 2018 revenue of 48% and a modest operating profit after a year of “pleasing growth” for the biopesticide products developer.
Collagen Solutions PLC (LON:COS) shares moved up in early trading Tuesday after it signed a manufacturing agreement for the Excellagen product with Olaregen Therapeutix, a New York-based firm focused on products in the wound care market.
Genedrive PLC (LON:GDR), the handheld medical diagnostic devices maker, saw revenues rise year-on-year in the second half of 2018. Revenue clocked in at £1.5mln, up from £1.3mln the year before, and was largely generated by the US$900,000 order, placed in November 2018, for Genedrive instruments and assays from the US Department of Defense (DoD) plus ongoing grant income.
MaxCyte Inc (LON:MXCT) has said its underlying earnings (EBITDA) are likely to show “an improvement on market expectations” after a bumper end to the year. Revenues increased 19% year-on-year to US$16.7mln in the 12 months to December 31, with top-line growth of 25% in the second six months. Looking ahead, the company said expects it to maintain the momentum in 2019.
Sativa Investments PLC (AQSE:SATI) has appointed Chris Jones to launch wellness centres that will sell a medicinal range of cannabis-derived products. Retail professional Jones most recently held the role of consultant sales director at a vaping company with 110 outlets and worked with another in Northern Ireland with 20 stores.
Silence Therapeutics PLC’s (LON:SLN) lead medicine candidate SLN124 has been granted orphan drug designation by European regulators.
Anglo Asian Mining PLC (LON:AAZ) produced 83,736 gold equivalent ounces during the year to December 2018, at the upper range of guidance. The figure represented a 17% year-on-year increase in total production.
United Oil & Gas Plc (LON:UOG) told investors it has received preliminary regulatory approval for a production concession in Italy, opening up the Selva gas field development project. The company, which owns 20% of the project, believes the asset will deliver significant cash flow in 2020.
Tlou Energy Ltd (LON:TLOU) told investors that lateral drilling has restarted in the wells at the Lesedi coal bed methane project in Botswana. The company, in a statement, said that specialist directional drilling crew and other key personnel are now on site.
Touchstone Exploration Inc (LON:TXP, CVE:TXP) confirmed a positive start to 2019, in terms of production and highlighted plans for further well drilling operations. The company, which describes itself as the ‘most active onshore upstream company in Trinidad’, highlighted that it delivered an average of 1,900 barrels of oil per day through the first thirteen days of this year.
The chairman of Vast Resources PLC (LON:VAST), industry veteran Brian Moritz, has written to shareholders urging them to vote in favour of AGM resolutions that allow for new capital raising powers. The AGM will be held on 31 January 2019 in London.
Rambler Metals and Mining PLC (LON:EAB) (TSXV:RAB) said its wholly-owned Canadian subsidiary has entered into a US$1mln unsecured loan agreement with CE Mining III Rambler Limited. The group said the proceeds of the loan will be used in support of short term working capital requirements at its Canadian operation.
Chaarat Gold Holdings Limited (LON:CGH) confirmed that, further to its announcement on 21 December 2018, the subscription and issue of secured convertible notes 2021 for US$350,000 has now completed.