Osirium Technologies

LN: OSI

£7.7m market cap

56.5p last close

UK-based Osirium Technologies designs and supplies subscription-based cyber security software. PxM includes privileged access management, privileged task management, privileged session management and privileged behaviour management. It recently launched Opus for secure process automation.

Investment summary

Osirium saw strong order intake in H119, +70% y-o-y and +81% h-o-h. H119 revenues of £0.52m were 13% higher y-o-y and deferred income at the end of H119 stood at £1.24m, of which £0.46m is expected to be recognised in H2. As H1 benefited from the renewal of a large three-year contract, management has guided bookings more cautiously for H219, expecting growth of at least 36% for FY19. We have revised our forecasts down accordingly, but highlight that the recently launched Opus solution could provide upside to our bookings, revenue and EBITDA estimates.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 0.6 (1.6) (2.3) (18.12) N/A N/A
2018A 1.0 (1.8) (2.7) (18.14) N/A N/A
2019E 1.3 (1.8) (2.8) (17.42) N/A N/A
2020E 1.8 (1.5) (2.7) (17.20) N/A N/A
Last updated on 15/08/2019
Industry outlook

The market for privileged account management (PAM) software was worth US$690m in 2015 and is forecast to grow to US$2.27bn by 2020 (source: Gartner), with demand driven by regulation, the shift to the cloud and adoption spreading to smaller organisations. The complexity of established solutions means fewer mid-market businesses use PAM software than enterprises, so this is a market ripe for development.

Last updated on 15/08/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 0.2
Forecast gearing ratio (%) 10
Price performance
%
1m
3m
12m
Actual (13.7) (37.2) (61.0)
Relative* (8.3) (35.1) (58.5)
52-week high/low 151.0p/56.5p
*% relative to local index
Key management
David Guyatt CEO
Rupert Hutton CFO

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