Kape has announced the sensational acquisition of ExpressVPN, a well-respected rival, for a total consideration of $936m, payable in cash and shares, subject to conditions. The dramatic move doubles Kape’s subscriber base (to c. 6m), delivers significant earnings accretion and marks another tour de force moment for the Group and its shareholders (following on from PIA in 2019 and Webselenese in 2021). Completion is expected to occur in Q4 2021. ExpressVPN represents a bullseye for Kape’s acquisi
Companies: Kape Technologies Plc
What’s cooking in the IPO kitchen?
Oxford Cannabinoid Technologies Holdings Plc to IPO onto the Standard List. They are a pre-revenue pharmaceutical company with an objective to develop cannabinoid-based prescription medicines approved by regulatory agencies including the US Food and Drug Administration, the European Medicines Agency, and the Medicines and Products Healthcare Regulatory Authority. Their drug development strategy includes the development of proprietary cannabinoid derivatives, n
Companies: ADME CCS EUA ITX KAPE NSCI N4P PURP SBI
Kape’s trading update for the first half of its current financial year confirms that the Group continues to show strong growth in line with management’s expectations for the full year. Consequently, we leave our estimates – which sit in the existing guidance range for revenue and Adj EBITDA – unchanged. The integration of Webselenese is ‘progressing well’ and has already realised a reduction in average customer acquisition costs for the Group. We also note the recent content provision agreement
Joiners: Orcadian Energy (ORCA.L), the North Sea focused, oil and gas development company, has joined AIM. The Company's key asset is the 100% interest in the Pilot oilfield, with audited proven and probable reserves of 78.8m barrels (audited by Sproule BV). Raised £33m at 40p. Mkt Cap £25.5m.
Leavers: No Leavers Today.
What’s cooking in the IPO kitchen?
South West Brands the multi-brand cannabidiol consumer goods company intends to float on the Main Market (Standard). Raising funds to contin
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As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
Companies: AMYT ARBB ARW BAG BEG BONH BWNG CWK DNK EML EPWN FBD FA/ GPH GSF GNC HUW IGC INSE KAPE KP2 MMAG NRR NESF OTMP ROL RUA SEN SUR TON TOU TXP TGL VLS WINK
Three new lenders join existing providers
Kape’s recent AGM statement confirmed a strong start to FY 2021E for the Group reflecting resilient demand for its digital privacy products and the initial impact of its acquisition of Webselenese in March. New customer additions have been running at around 25k per month, on a net basis, for Kape’s digital privacy business so far this year, and management expects that rate to increase further. The initial integration of Webselenese into the Group has spawned a number of initiatives aimed at util
The UK market showed a continued recovery in the first quarter albeit the indices are still well short of their all-time peaks, unlike many of their international peers. The FTSE 100 has risen by 1,186 points (21.4%) since the end of October and the FTSE 250 by 4,304 points (25.0%). The comparable performance since the start of the year is less spectacular- the FTSE 100 has risen by 253 points (3.9%) and the FTSE 250 has risen by 1,070 points (5.0%). The factors behind the sustained rally are fa
Companies: AMYT ARBB CEG BAG BVC BEG BONH BLVN BRSD CML CWK CRPR EYE ECHO FDM FAR FA/ GPH GSF HUW INSE JDG KAPE KP2 MACF MPAC MNZS NESF NBI OTMP OBD PREM QFI RUA SCS SEN SOS SUR TON TOU TXP TGL TCN UEM VLS WYN
As expected, Kape has delivered a strong set of results for FY20 – a year characterised by the successful integration of Private Internet Access (PIA) and associated cost synergies, and significant progress on product developments. The strong performance, with Adjusted EBITDA ahead of management’s initial forecasted range, in line with the January trading update, reflects twelve months of contribution from PIA as well as higher organic demand for privacy-based software solutions. Kape has moved
Following another excellent year for the Group, Kape’s FY 2020 revenue and adjusted EBITDA are in line with the updated guidance given in January’s trading update. It now has some 2.52m paying subscribers across its core markets of North America and Europe. Having completed the integration of Private Internet Access (PIA) ahead of schedule and launched new products, including its privacy suite, Kape recently completed another transformational and accretive acquisition in the form of Webselenese.
…and immediately earnings enhancing
Kape has announced the transformative and significantly earnings enhancing acquisition of Israel-based Webselenese for a total consideration of $149.1m. Webselenese provides digital content creation platforms, offering independent and highly valued privacy and security related news to millions of users globally via market leading review sites. A strong fit with Kape’s existing privacy and security business, the deal represents an important step in the Group’s development to become the go-to play
In the last fortnight, we have surrendered some of the notable progress made over the last three months. That said, the optimism displayed by markets, driven by progress with vaccines and their rollout, persists. The recent direction of markets has been set by volatility in US markets, driven by specific retail market developments. Domestically, we have seen a broadly upbeat procession of results and trading updates/outlooks have, generally, been at least in line. The share price reactions have
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In today’s trading update, the digital privacy and security specialist reports a strong second half to 2020 as reflected in revenues at the upper end of management’s forecasted range for the full year and adjusted EBITDA ahead of expectations. Specifically, Kape outperformed our estimate for adjusted EBITDA by c. $2.0m to $39.0m, with the figure up by 168% on the year. Sitting behind this was 85% revenue growth to $122.2m, driven by strategic delivery on commercial goals, the Private Internet Ac
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S4 Capital has reported hugely impressive H1 results that were ahead of our expectations. Gross Profit almost doubled to £236.7m, comfortably ahead of DCe and company budgets. LFL growth in the 'super strong' half was +49%, with an acceleration from +33% in Q1 to an astonishing +66% in Q2 against the CV19 trough comparative. This stellar growth rate has continued into the current quarter, with LFL growth of >50% in July and S4 Capital has raised its FY LFL guidance from 35% to 40%, the third inc
Companies: S4 Capital plc
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
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MAST Energy Developments (MED) is to IPO on the Standard List on 14th April 2021 under the ticker MAST. The company has raised £5m giving a market capitalisation on listing of c. £23m. MED is currently a 100% subsidiary company of AIM quoted, Kibo Energy*. MED was established to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market. PensionBee has confirmed its intention to float on the High Growth Se
Companies: SYM CGNR EKF KBT GGP VLS TMO ECK B90 MDZ
4imprint’s H1 results showed strong progress against the pandemic-impacted H1 2020. With significant net cash, the group has remained in a strong financial position throughout the pandemic, enabling management to continue to focus on the long-term opportunity. The benefits of this approach are, once again, now being seen. Total orders are currently running at or higher than pre-pandemic levels. While there are industry-wide supply-side challenges, 4imprint’s scale, in a highly fragmented industr
Companies: 4imprint Group plc
Companies: Time Out Group PLC
UMG’s spin-off and the sale of an additionnal 10% stake in UMG are progressing but Vivendi’s stock has not moved for a month and is quite stuck at just under c.€30. One may remain cautious indeed that once the distribution of 60% of UMG to Vivendi’s shareholders is done, many investors that had bought Vivendi to have a stake in the future listed UMG will probably sell Vivendi’s stock and this will weigh on it.
Companies: Vivendi (VIV:EPA)Vivendi SE (VIV:PAR)
Amazon agreed on Friday evening to buy the broadcasting sports rights of the French football Ligue 1 for 2021-24.
This is not good news for Canal+ but won’t have any major impact on Vivendi’stock which has not moved for a month and is quite stuck at €29-30 while waiting for UMG’s spin-off. One may remain cautious that, once the spin-off is done, investors that had bought Vivendi to have a stake in UMG will probably sell Vivendi’s stock.
Reach’s interims were strongly ahead of SCM estimates for H1 sales and EBITDA, by 5% and 4% respectively. Digital sales (23%/revs) grew 43% y/y to £69m supported by 150% y/y growth in unique registrations to 6.7m, whilst underlying Print decline decelerated to just -5% y/y (H2’20: -18%; H1’20: 20%) as weaker comparatives were lapped. The Group has posted positive sales growth for the first time in a number of years, rising +3% y/y (like-for-like) to £302.3m, and delivering AOP of £68.9m (Margins
Companies: Reach plc
Yesterday the CEO of UMG performed the show to convince us that UMG is entering a new growth cycle. Its IPO should be a success and the EV of €35bn retained for the recent sale of 7% of its capital will probably be the floor price for its IPO.
So, today to own Vivendi is to obtain at the end of September a high-growth UMG share and a share of a new Vivendi with a balance sheet strong enough to withstand selling pressures.
Having successfully dealt with the challenges of COVID-19 to date, we believe The Mission Group (TMG) is primed to capitalise on a range of external growth drivers thanks to the fundamental strengths of its network of closely aligned, ambitious and entrepreneurial agencies. July’s pre-close statement points to another positive update later this month and we do not believe that this or, more importantly, the group’s strong EPS and DPS growth potential are close to being reflected in its current v
Companies: Mission Group Plc
STV’s interim results detail another very strong financial and operational performance, point to encouraging momentum going forward and reinforce our very positive view of its prospects and underlying strengths. We regard the group’s stock as materially undervalued with our fair value estimate of 516p suggesting 51% upside potential from current levels.
Companies: STV Group plc
One year after its entry into Lagardère’s capital, and after several months of speculation, Vivendi finally announced a full takeover of the group.
Companies: Lagardere SCA (MMB:EPA)Lagardere SA (MMB:PAR)