The week ahead
In the UK, it is relatively quiet this week on the reporting front, as we begin the transition to March period end results. SmartSpace Software PLC (LON:SMRT), which provides software for smart buildings and commercial spaces announced its final results this morning for the period ending January. We also anticipate March interim results from Zytronic PLC (LON:ZYT) tomorrow and The Sage Group PLC (LON:SGE) on Friday.
Zytronic, which manufactures touch sensors, announces interim results tomorrow. In a trading update in January, it said that the downturn in sales experienced in the second half of last year had levelled out at about £2.0mln in the last quarter of the financial year 2020 (FY20) and the first quarter of the current financial year. The company announced at the time of its final results in December that it had adjusted its operations to take into account lower levels of demand resulting from the ongoing Coronavirus pandemic and related restrictions. While the reorganisation and cost reduction measures undertaken by management last year had enabled the group to maintain a positive EBITDA (underlying earnings), it said it was difficult to foresee a return to profits in this financial year. In February, the company repurchased some 28.8% of its ordinary shares in a tender offer, at a cost of around £6.7mln.
Sage, the Newcastle-based enterprise software company, reports its interim results on Friday. In its trading update in January, it said that recurring revenue in the first quarter (Q1) increased by 4.7% to £408mln, as software subscriptions jumped by 11.3% to £303mln. The subscription share of total revenue rose to 68% from 65%. Other revenue decreased by 24.0% to £39mln, which is in line with the company strategy to make the transition away from licence sales and professional services revenue and focus on growing its subscription revenue. Total Q1 group revenue increased by 1.4% to £447mln. The company issued a debut £350mln ten-year bond in February and began a £300mln share buyback programme in March. It also completed the sale of its Polish business in March for around £66mln and sold its Swiss business in April for around £39mln. These disposals follow the sale of the group’s businesses in Asia and Australia in December for roughly £95mln and together reflect the group’s strategy to create a simpler and focused business.
Across the pond, corporate earnings are quieter after the last two hectic weeks. Among the tech-related companies expected to report include: 3D Systems, 8×8, MagnaChip Semi, Rackspace, Bigcommerce, Converge Technology, International Game Technology, Applied Materials, Amdocs, Dynatrace, Wix.Com and PubMatic.
|10-May||SmartSpace Software||Final results||31-Jan|
|18-May||First Derivatives||Final results||28-Feb|
|24-May||Cloudcall||AGM trading update|
|26-May||Oxford Metrics||Interim results||31-Mar|
|18-20 May||Blue Prism||Blue Prism World|
|Late May/E June||Bytes Technology||Final results||28-Feb|
|Early June||Trackwise||Final results||31-Mar|
|15-Jun||CML Microsystems||Final results||31-Mar|
|15-Jun||GB Group||Final results||31-Mar|
|18-Jun||Blue Prism||Interim results||30-Apr|
|24-Jun||Alpha FMC||Final results||31-Mar|
|01-Jul||AVEVA||Capital markets day|
|Early July||AdEPT Technology||Final results||31-Mar|
|29-Jul||SRT Marine||Final results||31-Mar|
|Late summer||GRC||Final results||31-Mar|
Source: Data from regulatory news and company websites