Main menu
Edison Group
  • Home
  • Sparks
  • Equities

    Equities

    View All Equities

    Equities by Sector

    YXT.com

    MCap

    USD127m

    Last close

    USD23.43

    ▲ 20.23 (632.19%)

    Northern Data Group

    MCap

    EUR486m

    Last close

    EUR7.56

    ▲ 2.33 (44.59%)

    Bodycote

    MCap

    GBP1,572m

    Last close

    GBP9.23

    ▲ 173.00 (23.07%)

  • Sectors

    Sectors

  • Megatrends

    Megatrends

  • Thematics

    Thematics

    View All Thematics

    Latest

  • Audiovisual

    Audiovisual

    View All Audiovisual

    Latest

Kape Technologies — Intego deal adds Mac and anti-malware capability

Kape Technologies (LN: KAPE)

Last close As at 05/08/2026

—

— 0.00 (0.00%)

Market capitalisation

—

More on this equity

Research: TMT

Kape Technologies — Intego deal adds Mac and anti-malware capability

Kape’s acquisition of Intego for $16m looks a good fit. It broadens Kape’s portfolio by adding anti-malware software and significantly strengthening its Mac offering. We see good scope for sales synergies through cross-selling and leveraging Kape’s customer acquisition platform. The deal boosts our FY18 and FY19 EPS by 2% and 9% respectively, while synergies should strengthen beyond our forecast period.

Analyst avatar placeholder

Written by

TMT

Kape Technologies

Intego deal adds Mac and anti-malware capability

Acquisition of Intego

Software & comp services

24 July 2018

Price

111p

Market cap

£158m

£:US$1.32

Net cash (£m) at December 2017

69.5

Shares in issue

141.9m

Free float

27%

Code

KAPE

Primary exchange

AIM

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(11.8)

1.4

76.4

Rel (local)

(12.2)

(2.5)

71.0

52-week high/low

127.5p

59.0p

Business description

Kape Technologies specialises in the online distribution of consumer cyber security software. It markets four proprietary products: PC repair and maintenance (Reimage and Reimage for MAC), PC driver repair software (DriverAgent) and a virtual private network (CyberGhost).

Next events

Trading update

July 2018

H1 results

October 2018

Analyst

Dan Ridsdale

+44 (0)20 3077 5729

Alasdair Young

+44 (0)20 3077 5700

Kape Technologies is a research client of Edison Investment Research Limited

Kape’s acquisition of Intego for $16m looks a good fit. It broadens Kape’s portfolio by adding anti-malware software and significantly strengthening its Mac offering. We see good scope for sales synergies through cross-selling and leveraging Kape’s customer acquisition platform. The deal boosts our FY18 and FY19 EPS by 2% and 9% respectively, while synergies should strengthen beyond our forecast period.

Year end

Revenue ($m)

EBITDA*
($m)

PBT*
($m)

EPS
(c)

EV/EBITDA
(x)

P/E
(x)

12/16

56.5

6.4

4.8

2.9

23.9

50.2

12/17

66.4

8.3

7.5

4.8

18.6

30.0

12/18e

75.9

10.6

9.1

5.5

14.4

26.5

12/19e

84.6

14.5

12.5

7.5

10.6

19.5

Note: * EBITDA, PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Strengthening the portfolio and development team

Intego provides a suite of products including anti-malware, firewall and parental control products to 150,000 Mac users, all on a subscription basis, significantly strengthening Kape’s position in the Mac ecosystem. The anti-malware product in particular, fills a big gap in Kape’s portfolio, while the Intego engineering team will also strengthen the company’s product development capability.

Sales synergies thorough leveraging Kape’s platform

The deal creates the potential for sales synergies in three areas: cross-selling Intego’s anti-malware product to Kape’s existing Mac user base; using Kape’s digital marketing expertise across Intego’s product suite; and using the strengthened engineering team, Intego product core to develop a windows antimalware product. Once released this should be a highly complementary addition to the portfolio.

Executing the strategy

This deal delivers on many of the strategic initiatives we highlighted in Unveiling Kape (June 2018). Aside from building scale and bolstering its cybersecurity offering, it accelerates the company’s transition to a SaaS and subscription-based model. If delivered, we believe this transition will bring improved earnings visibility that should be rewarded with a higher rating. We would expect Kape to continue to use its balance sheet cash to enhance its scale and accelerate this transition.

Valuation: Clear catalysts for upside

Factoring in Intego (assuming little near-term benefit from revenue synergies), raises our FY19e adjusted EPS forecasts by 9% to 7.5c. At the current share price, this implies a P/E multiple of 19.5x, broadly in line with peers (c 20x, see Exhibit 2). However, stripping out the FY18 cash estimate of $53m (post Intego acquisition), Kape trades at just 14.5x FY19e P/E. We see a number of potential catalysts for upside: stronger realisation of synergies or further earnings-enhancing acquisitions could drive EPS upside and we see scope for a rerating upwards as the business migrates to a recurring subscription model.

Investment summary

Deal summary

Kape has agreed to pay $16m (£12.4m) in cash for 100% of Intego, a provider of anti-malware, firewall, anti-spam, backup, data protection and parental controls for Mac users. The company has 150,000 subscribers, generating $6m in annual revenues (an average annual subscription of $40 per customer). The customer renewal rate of 75% compares well with Kape’s existing subscriber base. The consolidation is effective from 23 July 2018.

We believe this deal delivers on many of Kape’s strategic priorities. It adds scale and broadens the company’s cyber security portfolio, giving it more product to sell via its customer acquisition platform (all of Intego’s subscribers have thus far been acquired through organic sources). The deal also supports Kape’s transition to a SaaS subscription model with 100% of revenues from subscriptions and a 75% renewal rate.

Exhibit 1: Product and sales synergies

Source: Edison Investment Research. Note:*PC version to be developed; **other includes firewall, anti-spam, backup, data protection and parental controls

Key benefits: Boosting the portfolio and cross-selling

Intego appears to be a very good fit for Kape. As Exhibit 1 highlights, its flagship Malware Protection product fills a gap in Kape’s existing portfolio. Anti-malware software is an essential component of a suite of consumer cybersecurity products, which adds substantial credibility to its proposition. It also enhances its position in the Mac ecosystem (a market it has begun to explicitly target only recently) and gives the company a greater North American presence. Combining Intego and Kape’s product development teams gives the group much greater resources to build new products. Management expects to develop an anti-malware product for Windows based on Intego’s technology and release it during 2019.

We believe the deal also has the potential to generate revenue synergies. These can be categorised in three areas:

■

By applying Kape’s digital marketing expertise, arguably its key differentiator, to the Intego product base, the company believes it should be able to substantially increase the current subscriber base. We believe the benefits here should be relatively large and achievable in 2019.

■

By cross-selling Intego’s flagship anti-malware product to its existing Mac customers, the company believes it can accelerate its nascent presence in this market. It may take some time to fully integrate the product portfolios and may be relatively modest given the small size of the addressable market.

■

Once an anti-malware product for the windows user base has been developed, Kape will be able to bundle this with its existing customer base. We believe this could take some time to align but it could be significantly boost revenues.

We understand that prior to the acquisition Intego was run as a cash cow. We believe the combination of these synergies should drive a progressive return to growth over 2018, 2019 and 2020.

Financials: Accretive deal, modestly priced

Assuming the deal is consolidated from 23 July, we expect Intego to contribute revenue of $3m in FY18 ($6m pro-forma, assuming an average annual subscription of $40 per customer) rising to $7.5m (25% growth) in FY19, driven by organic growth, cross-selling and leverage from Kape’s customer acquisition platform.

Intego generated profit before tax of $1.4m in FY17. There will be initial investment in setting up the customer acquisition platform for Intego, hence the modest profit forecast for Intego in FY18. Supported by cost synergies, we expect EBITDA margins to be broadly similar to Kape’s levels (15-17%) in FY19. Further revenue synergies should release into FY20 contribution from PC anti-malware software and full benefit from leveraging Kape’s customer acquisition platform. Having incorporated Intego’s acquisition, at this point we make no changes to underlying forecasts for Kape set out in our initiation report Unveiling Kape (June 2018) but would highlight that the company is expected to release a trading statement shortly.

We estimate that the $16m price tag implies a 2.1x FY19e revenue and FY19e EBITDA multiple of 7x for Intego. The deal is immediately earnings accretive, raising our FY18e and FY19e EPS estimates for Kape by 2% and 9% respectively.

Exhibit 2: Estimate changes

$000s

2017

2018e

2018e

Change

2019e

2019e

Change

31-December

IFRS

Old

New

Old

New

INCOME STATEMENT

Revenue

 

 

66,383

72,892

75,882

4%

77,084

84,587

10%

EBITDA

 

 

8,261

10,341

10,643

3%

13,249

14,469

9%

Operating profit (before amort. and except.)

 

 

6,946

8,891

9,123

3%

11,499

12,579

9%

Profit before tax (norm)

 

 

7,509

8,919

9,109

2%

11,544

12,544

9%

Profit before tax (reported)

 

 

(2,036)

7,719

7,909

2%

10,244

11,244

10%

EPS - diluted normalised (c)

 

 

4.85

5.37

5.48

2%

6.88

7.47

9%

EPS - basic reported (c)

 

 

(1.77)

4.67

4.78

2%

6.14

6.75

10%

Closing net debt/(cash)

 

 

(69,502)

(69,022)

(53,140)

-23%

(76,724)

(61,508)

-20%

Source: Edison Investment Research, Company Reports


Valuation

Factoring in the acquisition, at the current share price, Kape trades at a FY19e P/E multiple of 19.5x, broadly in line with UK software and b2c security peers (20.1x and 20.2x respectively). However, stripping out FY18e $53m cash estimate (post acquisition of Intego), Kape trades at just 14.5x FY19e P/E. We see a number of potential catalysts for upside: stronger realisation of synergies or further earnings-enhancing acquisitions could drive EPS upside and we see scope for a rerating upwards as the business proves its model and migrates to a recurring subscription revenue profile.

Exhibit 3: Valuation vs peer groups

Current price (ccy value)

Market cap (m)

EV/ sales 1FY (x)

EV/ sales 2FY (x)

EV/ EBITDA 1FY (x)

EV/ EBITDA 2FY (x)

EV/ EBIT 1FY (x)

EV/ EBIT 2FY (x)

P/E 1FY (x)

P/E 2FY (x)

Kape Technologies

111.0

158

2.0

1.8

14.4

10.6

16.8

12.2

26.5

19.5

Customer acquisition average

1.2

1.1

5.1

4.7

7.8

7.0

10.0

8.9

B2C cyber security average

3.9

3.7

15.3

12.1

22.0

15.9

30.5

20.2

B2B cyber security average

5.8

5.0

24.4

26.0

28.8

23.5

44.9

36.1

Uk software average

3.1

3.0

13.9

12.0

17.4

15.3

23.2

20.1

Source: Edison Investment Research, Bloomberg consensus. Note: Priced at 19 July 2018.


Exhibit 4: Financial summary

$'k

2016

2017

2018e

2019e

31-December

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

 

 

56,532

66,383

75,882

84,587

Cost of Sales

(37,277)

(42,366)

(45,415)

(46,909)

Gross Profit

19,255

24,017

30,467

37,678

EBITDA

 

 

6,413

8,261

10,643

14,469

Operating Profit (before amort. and except.)

 

 

5,034

6,946

9,123

12,579

Amortisation of acquired intangibles

(8,505)

(5,130)

(700)

(700)

Exceptionals

(5,545)

(899)

0

0

Share-based payments

(716)

(3,516)

(500)

(600)

Reported operating profit

(9,732)

(2,599)

7,923

11,279

Net Interest

(328)

(255)

(14)

(35)

Joint ventures & associates (post tax)

47

(40)

0

0

Exceptionals

0

858

0

0

Profit Before Tax (norm)

 

 

4,753

7,509

9,109

12,544

Profit Before Tax (reported)

 

 

(10,013)

(2,036)

7,909

11,244

Reported tax

(665)

(467)

(1,028)

(1,518)

Profit After Tax (norm)

4,088

7,042

8,080

11,026

Profit After Tax (reported)

(10,678)

(2,503)

6,880

9,726

Minority interests

0

0

(80)

(80)

Discontinued operations

0

0

0

0

Net income (normalised)

4,088

7,042

8,000

10,946

Net income (reported)

(10,678)

(2,503)

6,800

9,646

Average Number of Shares Outstanding (m)

141

142

142

143

EPS - normalised (c)

 

 

2.90

4.98

5.63

7.66

EPS - diluted normalised (c)

 

 

2.90

4.85

5.48

7.47

EPS - basic reported (c)

 

 

(7.57)

(1.77)

4.78

6.75

Dividend per share (c)

0.00

4.93

0.00

0.00

Revenue growth (%)

(-33.2)

17.4

14.3

11.5

Gross Margin (%)

34.1

36.2

40.2

44.5

EBITDA Margin (%)

11.3

12.4

14.0

17.1

Normalised Operating Margin

8.9

10.5

12.0

14.9

BALANCE SHEET

Fixed Assets

 

 

8,729

13,312

26,980

26,782

Intangible Assets

7,113

12,350

25,950

25,528

Tangible Assets

591

815

883

1,107

Investments & other

1,025

147

147

147

Current Assets

 

 

80,014

82,430

68,912

80,310

Stocks

0

65

65

65

Debtors

7,950

11,071

10,395

10,150

Cash & cash equivalents

72,064

69,502

53,140

61,508

Other

0

1,792

5,312

8,586

Current Liabilities

 

 

(7,339)

(15,028)

(16,997)

(18,664)

Creditors

(7,096)

(10,094)

(10,978)

(10,887)

Tax and social security

0

0

0

0

Short term borrowings

0

0

0

0

Other

(243)

(4,934)

(6,019)

(7,777)

Long Term Liabilities

 

 

(851)

(1,342)

(1,342)

(349)

Long term borrowings

0

0

0

0

Other long term liabilities

(851)

(1,342)

(1,342)

(349)

Net Assets

 

 

80,553

79,372

77,552

88,079

Minority interests

0

977

977

977

Shareholders' equity

 

 

80,553

80,349

78,529

89,056

CASH FLOW

Op Cash Flow before WC and tax

6,413

8,261

10,643

14,469

Working capital

613

(1,392)

(5)

(1,486)

Exceptional & other

(823)

(624)

0

0

Tax

(904)

(109)

(1,028)

(1,518)

Net operating cash flow

 

 

5,299

6,136

9,609

11,465

Capex

(1,678)

(2,020)

(2,088)

(2,192)

Acquisitions/disposals

(1,439)

(5,337)

(16,870)

(870)

Net interest

(281)

156

(14)

(35)

Equity financing

(995)

(1,477)

0

0

Dividends

0

0

(7,000)

0

Other

0

0

0

0

Net Cash Flow

906

(2,542)

(16,362)

8,368

Opening net debt/(cash)

 

 

(71,336)

(72,064)

(69,502)

(53,140)

FX

(178)

(20)

0

0

Other non-cash movements

0

0

0

0

Closing net debt/(cash)

 

 

(72,064)

(69,502)

(53,140)

(61,508)

Source: Company data, Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Pty Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2018 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Kape Technologies and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Investment Research Pty Ltd (Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd (AFSL: 427484)) and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2018. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Pty Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2018 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Kape Technologies and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Investment Research Pty Ltd (Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd (AFSL: 427484)) and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2018. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

More on Kape Technologies

View All

TMT

Kape Technologies — Integration update

TMT

Kape Technologies — Acquisition further strengthens VPN position

TMT

Kape Technologies — Strong H1 performance

TMT

Kape Technologies — Improved trading, strategic transition complete

Latest from the TMT sector

View All TMT content

TMT

ZOO Digital — Rebuilt for a market that now pays for speed

TMT

IP Group — Interesting call option on anti-obesity programme

TMT

4imprint Group — Improved trading feeds through to upgrades

TMT

Filtronic — Foundations in place for growth

Research: Financials

FinTech Group — Attractively positioned for growth

FinTech Group’s (FTG) brokerage business benefited from the jump in volatility in Q1. Volatility has since abated, but the business stands to benefit from a new ETP partnership with Goldman Sachs announced in March. Meanwhile, FTG remains well positioned to benefit from a strengthening German economy and the eventual rise in interest rates. Despite being the fastest-growing major broking business in Europe, the shares continue to trade at a discount to the brokerage sector.

Continue Reading
Cookie Policy Overview
Edison Group

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping us understand which section of the website you find more interesting and useful. See our Cookie Policy for more information.

Strictly necessary and functional

These cookies are used to deliver our website and content. Strictly necessary cookies relate to our hosting environment, and functional cookies are used to facilitate social logins, social sharing and rich-media content embeds.

Advertising

Advertising Cookies collect information about your browsing habits such as the pages you visit and links you follow. These audience insights are used to make our website more relevant.

Performance

Performance Cookies collect anonymous information designed to help us improve the site and respond to the needs of our audiences. We use this information to make our site faster, more relevant and improve the navigation for all users.