Cube Report (29 Jan 2021) – Survey results are in

Cube Report (29 Jan 2021) – Survey results are in

Afternoon folks,

Time for a quick round-up of Friday’s news:

  • YouGov
  • Argo Blockchain
  • BigDish

YouGov

  • Stock data should display here.
Market cap £1,150 million
RNS Q1 Trading Statement to 31 December 2019
Writer disclosure No position.

I doubted this one for a long time. Good job I didn’t short it! It has had an excellent few years, and the market continues to reward it with very high valuation multiples.

Latest news: H1 trading is in line with expectations.

Forecasts for the current year suggest net income of £20.4 million, rising to £24.4 million in 2022.

There is growth in both divisions, but faster in Data Services, “as we saw strong demand for more tactical, fast turnaround projects“.

This strong sales pipeline provides good visibility into the second half. Mainland Europe is on track to deliver better than expected performance. The Group’s headline operating profit was impacted by an increased non-cash share-based payments charge, resulting from a modification in accounting treatment, while underlying margin continued to grow.

It’s a little confusing: trading is in line with expectations, but profits will be hit by an extra large share-based payments charge? I guess that the SBC must have been anticipated.

This sentence may explain why the shares fell back today:

The Board remains confident of achieving its full year targets in line with the second five-year growth plan, albeit with the phasing of revenue growth and margin delivery weighted towards the second half of the financial year.

My view – always too highly rated for me, but I’ve missed out by taking that stance. It does benefit from having a unique, trusted brand name that nearly everybody will recognise, and its Data Services division appears to boost visibility and take out the lumpiness of earnings.

If the steam was taken out of the valuation by a full-blown profit warning, I’d be tempted to research it in more detail.

 


Argo Blockchain

  • Stock data should display here.
Market cap £316 million
RNS 1259 new mining machines in production
Writer disclosure No position.

Here’s a picture of an S19 Pro miner, from miners.eu:

They are heavy-duty machines. ARB has an extra 1,259 of them in production, as of this week.

They add 127 petahash of computing power, so that total computing power is now 772 petahash.

As I’ve previously noted, the company is targeting 1,685 petahash by the end of Q2:

The remainder of the 10,000 machines required to achieve this target are on order and expected to be delivered in batches between February and June, as previously announced. 

My view – the early arrival of the machines is good news, but of greater importance is the price of bitcoin itself (up 12% today as of the time of writing this article, according to bitcoin.com).

 


BigDish

Financial report for the half-year to 30 Sept 2020

A sobering start to this RNS:

The Company announced on 24 September 2020 securing an agreement for short term funding of £ 540,000.  The Company requested and received £ 200,000 of this funding after the 30 September 2020. The majority of this amount has yet to be utilised.  The Company is confident that this amount along with the balance of the short term funding will be more than adequate to stretch the funding runway beyond the end of the second quarter of 2020.

So we have confidence for another five months of survival. After that: who knows?

The business model was diversified late last year, since the original business of providing a restaurant app was torpedoed by Covid:

On 12 October 2020, the Company announced a business diversification in that it was developing a venture builder model that would develop technology in return for equity stakes in up-and-coming technology companies.

H1 revenue at this company was approximately zero.

There is a Going Concern qualification in the footnotes as you would expect.

I would not touch this with my proverbial bargepole.

 


Have a good weekend!

Cheers

Graham

 

9
0
avataravataravataravataravataravataravataravataravataravataravatar
CATEGORIES

COMMENTS

Wordpress (2)
  • comment-avatar

    Graham, You have got the heading for the Argo Blockchain section incorrect

    0
    0
  • Your Cart