Kape Technologies

LN: KAPE

£121.6m market cap

85.5p last close

Kape Technologies specialises in consumer cybersecurity software. It markets four proprietary products: Reimage and Reimage for MAC, PC driver repair software (DriverAgent), anti-malware (Intego) and a virtual private network (CyberGhost).

Investment summary

Kape provided a brief update on progress integrating its recent acquisitions, Intego and ZenMate. While no numbers were given, integration is tracking ahead of plan and the company reports ‘early signs of strong traction’ promoting CyberGhost’s VPN into Intego’s customer base. This is obviously encouraging, reinforcing our view about Kape’s ability to make value-accretive deals leveraging its distribution network. At this early stage we make no change to our forecasts.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2016A 56.5 6.4 4.8 2.90 38.9 N/A
2017A 66.4 8.3 7.5 4.85 23.3 N/A
2018E 60.0 10.2 8.7 5.23 21.6 N/A
2019E 72.2 14.2 12.3 7.30 15.4 N/A
Last updated on 12/04/2019
Industry outlook

As consumers become more connected and increase their reliance on the internet in their daily lives, the stakes of breach are increasing and, as has occurred in the B2B cyber security industry, demands are likely to expand beyond basic antivirus protections. Symantec estimates the wider ‘personal digital safety’ market to be double the size of traditional products at c US$10bn. It is in this wider market that Kape is positioning itself.

Last updated on 12/04/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (US$m) 46.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (15.4) (25.0) (14.5)
Relative* (18.4) (30.0) (16.0)
52-week high/low 135.5p/80.0p
*% relative to local index
Key management
Ido Erlichman CEO
Moran Laufer CFO
Donald Hunter Elgie Non Executive Chairman