WH Ireland analyst discusses Defenx plc “updating the forecast”

WH Ireland analyst this morning discussed Defenx with DirectorsTalk  “We have updated our forecasts for Defenx following (i) the 2016 interim results announced last week and (ii) the acquisition of Memopal in August. Defenx acquired 95.2% of Memopal Srl, in August, for up to €1.78m, along with €0.56m assumption of Memopal’s net debt. The combined €2.34m (maximum) consideration implied good value at 6.5x Memopal’s 2015 EBITDA and 36.1x Net Profit versus the application software peer group average which at the time traded at 14.4x EV/EBITDA and 42x Net Profit respectively. Memopal’s business has a number of similarities to Defenx, including (i) it owns its own IP (ii) it sells predominantly through channel partners and (iii) has a lean set up, with just 7 staff and 3 consultants.

 

Our revenue forecast for 2016E remains unchanged at €7.1m, while 2017E revenue is forecast to increase 8% YoY, benefitting from the acquisition of Memopal, with an increase in gross margin in 2016E at 81.5% (versus 78% prior). We forecast higher SG&A costs for both 2016E (+1% versus prior) and 2017E (+7%), entirely down to a higher marketing costs. As a result 2016E adj. net profit stands higher at €1.2m (+6% versus prior). Our adj. diluted EPS in 2017E is largely offset by higher share count, which forms part of the Memopal acquisition consideration, but comes in marginally ahead of prior forecasts €cents 32.5 (versus €cents 32.3 prior).”

 

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Facebook
    Twitter
    LinkedIn
    Defenx Plc

    More articles like this

    Defenx Plc

    WhatsApp Update Warning As New ‘App Killing’ Message Confirmed

    WhatsApp has endured a difficult 2019 on the security front, with stories of nation-state hacking campaigns and multiple vulnerabilities, even as it battles with governments and their agencies over its insistence on end-to-end encryption. And now, just as the year

    Defenx Plc

    T-Mobile Says Prepaid Accounts Breached

    T-Mobile says it suffered a breach of prepaid accounts as a result of unauthorized access to its systems. “Our cybersecurity team discovered and shut down malicious, unauthorized access to some information related to your T-Mobile prepaid wireless

    Defenx Plc

    Whatsapp bug could have let hackers read your messages

    WhatsApp has acknowledged a security flaw within the app that allowed hackers to access people’s messages by sending a malicious video file. The Facebook-owned messaging app posted a security advisory about the bug, named CVE-2019-11931, which affects

    Defenx Plc

    7 Essential Mobile Security Best Practices for Businesses

    What are the essential mobile security best practices for businesses? As enterprises introduce more mobile devices and solutions into their infrastructure, they need to keep mobile security in mind at all times. The mobile threat landscape is

    Defenx Plc

    How cybersecurity accelerates business growth

    It’s no secret that the cybersecurity industry has grown exponentially over more than a decade due to the proliferation of high-profile cybercrime. Viewing cybersecurity as simply a necessary step to mitigate cyber risk leaves much opportunity on the

    Defenx Plc

    How to ensure mobile device security in healthcare

    The myth of mobile devices being more secure than desktops has proven to not be the case. To maintain mobile device security in healthcare, IT must do more to remind users how to stay protected. Personal

    Defenx Plc

    Mobile security: 5 misunderstandings that persist

    Mobile has become ubiquitous in the enterprise: So why do so many organizations still buy into these security misconceptions? Nearly all companies allow their employees to use smartphones for work-related interactions. With the advanced capabilities and

    Defenx Plc

    Defenx made significant progress in recent months

    Set out below are the interims results for Defenx (LON:DFX) for the six months ended 30 June 2019. Raffaele Boccardo, Deputy Chairman of Defenx, commented: “I and BV Tech remain fully supportive of Defenx and I

    Defenx Plc

    2019 Mobile Threat Landscape :How to stay safe?

    Recently, a cybersecurity provider CrowdStrike released a report covering cybersecurity in the mobile space. As India witnessed a rapid growth of electronic payments and mobile banking in India. According to the Reserve Bank of India’s 2017-18

    Defenx Plc

    These 24 Android Apps Are Infected with Joker Malware

    The Joker strikes again! No, it’s not in the form of Batman’s archnemesis, but in a clever bit of malware that has infected dozens of Android operating system apps. The malicious code can easily avoid detection unless you pay close

    Defenx Plc

    4 Key Lessons for Enterprise Mobile Device Security

    As of 2019, the threats to mobile device security continue to grow. In fact, according to  Verizon’s Mobile Security Index 2019, mobile device security threats grow faster than any other; 86 percent of surveyed enterprise executives state

    Defenx Plc

    Mobile security: Is your organization truly protected?

    Despite organizations’ efforts to implement the latest, innovative tech tools, security threats to mobile devices remain be a growing priority. According to Canadian IT and security professionals, mobile devices appear to pose some of the largest threats

    Defenx Plc

    Cyber security and the finance sector

    After the fallout of the recent Capital One and Equifax data breaches, Clearswift commissioned a survey into the financial services sector to find out the extent of financial companies’ data protection capabilities. Worryingly, the results highlighted that 70% of