MotorK — Strong pipeline and cash target reaffirmed

MotorK (AMS: MTRK)

Last close As at 13/12/2024

EUR6.04

0.06 (1.00%)

Market capitalisation

272m

More on this equity

Research: TMT

MotorK — Strong pipeline and cash target reaffirmed

MotorK’s FY23 revenue growth was robust across most regions, with slow growth regions gaining momentum. Q124 revenue fell slightly year-on-year due to delayed delivery contracts, but these are expected to contribute to Q2 sales. Revenue quality improved, with software-as-a-service (SaaS) recurring revenue rising as a share of group revenue in FY23. M&A continues to play a pivotal role in unlocking opportunities across MotorK’s markets, providing potential average contract value (ACV) expansion from customers migrating to the platform. While personnel investments for growth swung EBITDA to a loss, MotorK’s holistic SparK platform remains well-positioned to capitalise on the automotive industry’s digital shift and technological innovation.

Analyst avatar placeholder

Written by

TMT

MotorK

Strong pipeline and cash target reaffirmed

Q124/FY23 results

Software and comp services

1 May 2024

Price

€5.18

Market cap

€235m

Net debt (€m) at 31 December 2023

(includes lease liabilities of €4.4m)

21.3

Shares in issue

45.4m

Free float

24.6%

Code

MTRK

Primary exchange

Euronext Amsterdam

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

7.9

12.6

161.0

Rel (local)

8.3

4.8

125.2

52-week high/low

€5.18

€1.87

Business description

MotorK is a European SaaS provider operating in the automotive retail industry, selling mainly in the EU5 but with a global presence. Its cloud-based platform, SparK, offers OEMs and dealers a suite of digital tools to support the vehicle lifecycle end-to-end.

Next events

AGM

30 May 2024

H124 results

25 July 2024

Analysts

Max Hayes

+44 (0)20 3077 5700

Katherine Thompson

+44 (0)20 3077 5700

MotorK is a research client of Edison Investment Research Limited

MotorK’s FY23 revenue growth was robust across most regions, with slow growth regions gaining momentum. Q124 revenue fell slightly year-on-year due to delayed delivery contracts, but these are expected to contribute to Q2 sales. Revenue quality improved, with software-as-a-service (SaaS) recurring revenue rising as a share of group revenue in FY23. M&A continues to play a pivotal role in unlocking opportunities across MotorK's markets, providing potential average contract value (ACV) expansion from customers migrating to the platform. While personnel investments for growth swung EBITDA to a loss, MotorK’s holistic SparK platform remains well-positioned to capitalise on the automotive industry’s digital shift and technological innovation.

Year end

Revenue (€m)

ARR
(€m)

PBT*
(€m)

Diluted EPS* (€)

DPS
(€)

EV/sales
(x)

EV/EBITDA
(x)

12/21

27.6

15.1

(8.2)

(0.37)

0.00

9.3

307.1

12/22

38.5

24.6

(8.8)

(0.22)

0.00

6.7

N/A

12/23

42.9

34.1

(11.2)

(0.24)

0.00

6.0

N/A

12/24e

55.7

44.6

5.0

0.09

0.00

4.6

14.8

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

Robust FY23 results, but short of forecasts

FY23 annual recurring revenue (ARR) and committed ARR (CARR), MotorK’s key performance indicators (KPIs), were in line with the February trading update at €34.1m and €38.6m, respectively, but ARR was below our €37.2m forecast. FY23 revenue was up 11.4% y-o-y to €42.9m but c 17% below our forecast, reflecting a smaller-than-expected rise in contract assets, reflecting the group’s focus on larger value Enterprise contracts that have shorter term lengths. Cash EBITDA, which excludes contract asset changes and R&D capitalisation, was a loss of €14.9m, versus our €12.4m forecast. In Q124, management confirmed it expects to generate positive cash EBITDA in FY24, which is in line with our updated forecasts.

Converting strong pipeline key to cash target

MotorK reported a 2% y-o-y decline in revenue to €11.2m in Q124 despite a 30% increase in recurring billings to €8.5m, reflecting signed Q1 contracts, which management expects to contribute to Q2 revenue. ARR and CARR continued to grow from end-FY23 (up 3% and 1%, respectively) driven by enterprise strength, as well as backlog and contractual price increases. A €20m pipeline across its Retail and Enterprise segments provides robust FY24 growth potential. MotorK’s operational KPIs were strong, with low churn of 6.3% and net revenue retention of 111.1%, reflecting continued execution of the group’s land and expand strategy. Our revised FY24 forecasts reflect a lower FY23 revenue base, but a reduction in net debt supported by a €14m equity raise post year-end and positive FCF.

Valuation: Delivering cash EBITDA key for re-rating

For FY24e, MotorK trades at an EV/sales multiple of 4.6x (a 25% discount to peers) and EV/EBITDA of 14.7x (a 34% discount). We believe converting the €20m pipeline into revenue and achieving positive FY24 cash EBITDA are key for a re-rating.

Results show progress towards key cash milestone

MotorK closed FY23 with ARR of €34.1m, up 39% y-o-y, although below our €37.2m forecast. Adding signed contracts not yet delivered and billed, as well as contractual price increases totalling €4.5m, CARR was €38.6m at year-end, just below the company’s guided range of €39–43m. Of reported ARR, Retail contributed €26.7m, up 27% y-o-y, and Enterprise €7.4m, up 107% yoy.

The Enterprise division, MotorK’s fastest growing segment, reported a 107% y-o-y increase in FY23 ARR to €7.4m, while Retail grew robustly, up 27% y-o-y to €26.7m. Growth across both divisions was supported by a strong increase in new customers, with total organic customers reaching 891 in Retail (+20% y-o-y) and 38 in Enterprise (+90% y-o-y).

The group’s SparK platform underpins a successful land and expand strategy across its customer base, leading to robust net revenue retention of 113% in retail and 129% in Enterprise. There was low Retail churn of 5.8% and a 10% y-o-y progression in Retail ACV to €19.5k (Enterprise not disclosed) in FY23. Lead indicators are also positive with management believing there is scope to substantially expand the ACV of acquired customers, which typically have much lower-than-average ACVs when they first migrate onto SparK.

Exhibit 1: FY23 summary table

€m

FY22

FY23

Actual

y-o-y change

Forecast

Actual

Change

y-o-y change

Revenue

38.5

40%

51.4

42.9

-17%

11%

Operating expenses (excluding D&A, SBP and one-off items)

(38.3)

43%

(45.0)

(44.4)

-1%

16%

Adjusted EBITDA

0.2

-72%

6.5

(1.4)

N/A

N/A

Cash adjustment*

15.9

131%

18.9

13.5

-29%

-15%

Cash EBITDA

(15.6)

159%

(12.4)

(14.9)

20%

-5%

Normalised operating profit

(7.8)

129%

(4.1)

(10.2)

150%

31%

Share-based payments

(1.5)

-84%

(1.6)

(1.2)

-25%

-22%

Exceptional items

(3.5)

9%

0.0

(3.1)

N/A

-11%

Reported operating profit

(12.9)

-21%

(5.6)

(14.5)

158%

13%

Operating cash flow

(9.2)

152%

4.0

(6.2)

N/A

-32%

Net debt/(cash)

(2.2)

-93%

6.8

21.3

213%

N/A

Source: MotorK, Edison Investment Research. Note: *Change in contract assets and R&D capitalisation.

The 11% y-o-y increase in FY23 reported revenue of €42.9m reflects a mix of a positive movement in ARR but slower growth in contract assets, reflecting the company’s focus on higher-value, but shorter-term Enterprise contracts. Reported revenue consists of billings plus the change in contract assets (revenue from multi-year deals is recognised in the year of signing, whereas customers pay over the life of the contract). The revenue mix also continues to improve, with SaaS recurring revenue reaching €32.5m, expanding 5pp year-on-year as a share of total revenue to 75%.

MotorK typically capitalises a portion of its development costs. In FY23, it capitalised 64% of its €14.5m R&D expenditure. We forecast capitalised R&D decreasing from 22% of revenue in 2023 to 17% in 2024, with the company targeting 10% by 2026. R&D contributed to 91% of the group’s overall FY23 capex.

Opex remained high during the year but within our expectations. Negative free cash flow and €3.2m deferred consideration related to the acquisition of GestionaleAuto.com, to be paid in June 2024, moved the group from a net cash position to a net debt position of €21.3m. A €2m cost reduction programme announced in H123 added to costs, but management expects this to generate €2.7m in annual run-rate savings starting in FY24, which should support operationally geared growth – reflected in our forecasts.

Q1 results mixed; several indicators to drive FY24 momentum

Q124 reported revenue was down 1.6% y-o-y to €11.2m, reflecting a higher proportion of delayed-delivery contracts booked in the quarter, which management expects to contribute to Q2 revenue. Geographically, the decline in revenue was driven by the more recently entered markets of Spain and Germany, where revenue fell by 7% y-o-y to €1.2m and 53% y-o-y to €719k, respectively. As shown by its FY23 results, MotorK can deliver rapid growth in new markets, which is evidenced by the 140% y-o-y revenue increase in Germany.

ARR and CARR were only up 3% q-o-q to €35.1m (+26% y-o-y) and 1% q-o-q to €39.1m (+16% yoy), respectively, but a €20m pipeline in its Retail and Enterprise segments provides robust FY24 growth potential.

Exhibit 2: Summary of Q124 results

€m

Q124

Q123

y-o-y change

SaaS

8.5

8.7

(2.6%)

Digital marketing

2.4

1.8

32.3%

Other

0.4

0.9

(58.7%)

Total revenue

11.2

11.4

(1.6%)

% recurring revenue

75%

76%

(0.5%)

ARR

35.1

27.9

25.8%

Committed ARR

39.1

33.7

16.0%

Source: MotorK

In addition to the €12.3m capital raise announced in February, management announced a €1.7m raise with its Q1 results; the aim of the raise is to diversify its shareholder base and strengthen the company’s financial position. The reserved capital increase, based on a reference price per share of €4.00, resulted in the issue of 425,000 new ordinary shares and is subject to a six-month lock-up period.

Forecasts still aligned with cash EBITDA target

We revise our FY24 revenue forecasts, expecting similar levels of growth to our previous forecasts off a lower FY23 base. That said, we increase our cash EBITDA forecast in line with a reduction in the expected growth of contract assets. The impact of lower revenue on the adjusted EBITDA margin is partially offset by our lower expectation for general and administrative costs, reflecting the c 40% cost reduction achieved in H223. We note H123 was affected by significant one-off consulting fees, which we do not anticipate reoccurring in FY24.

Exhibit 3: Summary of forecast changes

€m

FY24e old

FY24e new

Change

y-o-y

Revenues

62.8

55.7

-11.2%

29.8%

Adjusted EBITDA

21.0

17.3

-17.6%

N/A

Adjusted EBITDA margin

33.4%

31.0%

-2.4%

34.4%

Cash EBITDA

0.1

1.0

1,569.9%

N/A

Cash EBITDA margin

0.1%

1.8%

1.7%

36.5%

Reported operating profit

6.0

3.0

-50.5%

N/A

Reported operating margin

9.6%

5.4%

-4.2%

39.2%

Normalised PBT

6.6

5.0

-24.5%

N/A

Reported PBT

5.1

1.7

-66.6%

N/A

Normalised net income

5.1

3.8

-24.5%

N/A

Reported net income

3.8

1.3

-66.6%

N/A

Normalised diluted EPS (€)

0.12

0.09

-28.4%

N/A

Net debt/(cash)

12.6

3.5

-72.0%

N/A

ARR

49.6

44.6

-10.0%

30.9%

Source: Edison Investment Research

As shown previously, the €14m cash injection from the two capital raises drives a substantial reduction in our net debt forecast to €3.5m. We believe the group is in a strong position to move back to a net cash position in the mid-term if it can maintain its positive free cash flow trajectory.

Exhibit 4: Financial summary

€m

2019

2020

2021

2022

2023

2024e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

 

 

27.9

19.3

27.6

38.5

42.9

55.7

Annualised recurring revenue

 

 

7.5

10.0

15.1

24.6

34.1

44.6

Operating costs excl. D&A

(26.5)

(20.5)

(26.7)

(38.3)

(44.4)

(38.5)

EBITDA

 

 

1.5

(1.1)

0.8

0.2

(1.4)

17.3

Normalised operating profit

 

 

(0.8)

(4.3)

(3.4)

(7.8)

(10.2)

6.3

Exceptionals

(0.0)

(0.1)

(3.2)

(3.5)

(3.1)

(2.1)

Share-based payments

(0.2)

(0.1)

(9.7)

(1.5)

(1.2)

(1.2)

Reported operating profit

(1.1)

(4.5)

(16.4)

(12.9)

(14.5)

3.0

Net Interest

(1.4)

(1.8)

(4.8)

(1.0)

(1.0)

(1.3)

Joint ventures & associates (post tax)

0.0

0.0

0.0

0.0

0.0

0.0

Profit Before Tax (norm)

 

 

(2.3)

(6.1)

(8.2)

(8.8)

(11.2)

5.0

Profit Before Tax (reported)

 

 

(2.5)

(6.3)

(21.2)

(13.9)

(15.6)

1.7

Reported tax

1.1

0.9

(2.8)

(0.1)

2.3

(0.4)

Profit After Tax (norm)

(1.1)

(5.2)

(11.0)

(8.9)

(9.6)

3.8

Profit After Tax (reported)

(1.4)

(5.4)

(23.9)

(14.0)

(13.2)

1.3

Discontinued operations

1.6

0.0

0.4

6.7

0.0

0.0

Exceptionals

0.0

0.0

0.0

0.0

0.0

0.0

Net income (normalised)

(1.1)

(5.2)

(11.0)

(8.9)

(9.6)

3.8

Net income (reported)

0.2

(5.4)

(23.5)

(7.3)

(13.2)

1.3

Basic average number of shares outstanding (m)

26

27

30

41

40

43

EPS - basic normalised (€)

 

 

(0.04)

(0.19)

(0.37)

(0.22)

(0.24)

0.09

EPS - diluted normalised (€)

 

 

(0.04)

(0.19)

(0.37)

(0.22)

(0.24)

0.09

EPS - basic reported (€)

 

 

0.01

(0.20)

(0.79)

(0.18)

(0.33)

0.03

Dividend (€)

0.00

0.00

0.00

0.00

0.00

0.00

Revenue growth (%)

128.8

(-30.8)

42.6

39.9

11.4

29.8

EBITDA Margin (%)

5.3

-5.9

3.0

0.6

-3.4

31.0

Normalised Operating Margin (%)

-3.0

-22.3

-12.3

-20.2

-23.7

11.3

BALANCE SHEET

Fixed Assets

 

 

22.8

16.8

26.2

52.8

60.5

63.7

Intangible Assets

11.2

9.9

18.0

36.8

46.5

46.2

Tangible Assets

1.6

1.7

3.1

5.0

4.6

4.5

Investments & other

10.1

5.2

5.2

11.0

9.4

12.9

Current Assets

 

 

25.4

28.3

63.4

45.7

36.1

60.0

Stocks

0.0

0.0

0.0

0.0

0.0

0.0

Debtors

16.0

11.5

16.0

26.5

32.6

36.9

Cash & cash equivalents

9.4

11.8

43.3

19.2

3.5

23.1

Other

0.0

4.9

4.2

0.0

0.0

0.0

Current Liabilities

 

 

(13.6)

(14.5)

(15.2)

(18.1)

(27.6)

(32.7)

Creditors

(11.1)

(6.1)

(8.3)

(12.0)

(13.1)

(21.4)

Tax and social security

0.0

0.0

(2.9)

(3.8)

(2.6)

(2.6)

Short term borrowings

(2.5)

(7.1)

(2.7)

(2.0)

(11.8)

(8.7)

Other

0.0

(1.3)

(1.3)

(0.2)

(0.1)

(0.1)

Long Term Liabilities

 

 

(27.1)

(28.5)

(10.0)

(18.6)

(17.3)

(22.8)

Long term borrowings

(23.5)

(25.6)

(6.2)

(15.1)

(13.2)

(18.2)

Other long term liabilities

(3.7)

(2.9)

(3.8)

(3.5)

(4.2)

(4.6)

Net Assets

 

 

7.5

2.1

64.4

61.8

51.6

68.1

Minority interests

0.0

0.0

0.0

0.0

0.0

0.0

Shareholders' equity

 

 

7.5

2.1

64.4

61.8

51.6

68.1

CASH FLOW

Net income

0.2

(5.4)

(23.5)

(7.3)

(13.2)

1.3

Depreciation & amortisation

2.7

3.8

4.2

8.0

8.7

11.0

Working capital

(7.4)

2.5

(2.0)

(6.7)

(2.9)

0.9

Exceptional & other

1.6

1.9

15.0

(3.2)

4.2

2.5

Tax

(0.1)

(1.2)

2.6

(0.0)

(3.0)

0.0

Net operating cash flow

 

 

(3.0)

1.7

(3.6)

(9.2)

(6.2)

15.7

Capex

(3.6)

(3.2)

(3.9)

(9.1)

(9.5)

(9.4)

Acquisitions/disposals

(0.6)

0.0

(5.4)

(4.5)

(3.9)

(3.2)

Net interest

(0.5)

(0.5)

(6.9)

(1.3)

(0.6)

(1.3)

Equity financing

0.0

0.0

70.1

(0.7)

0.8

14.0

Dividends

0.0

0.0

0.0

0.0

0.0

0.0

Other

(0.1)

0.1

0.2

(0.1)

(0.0)

0.0

Net Cash Flow

(7.8)

(1.9)

50.5

(24.7)

(19.4)

15.8

Opening net debt/(cash)

 

 

8.2

16.2

20.6

(34.4)

(2.2)

21.3

FX

(0.2)

0.0

0.0

0.0

0.0

0.0

Other non-cash movements

0.1

(2.5)

4.5

(7.4)

(4.1)

1.9

Closing net debt/(cash)

 

 

16.2

20.6

(34.4)

(2.2)*

21.3

3.5

Source: Edison Investment Research, company accounts. Note: *Restated in FY23 accounts.


General disclaimer and copyright

This report has been commissioned by MotorK and prepared and issued by Edison, in consideration of a fee payable by MotorK. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: 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 and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. 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.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, 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 securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. 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, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2024 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

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. 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 (i.e. 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.

United Kingdom

This document is prepared and provided by Edison 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.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison 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. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by MotorK and prepared and issued by Edison, in consideration of a fee payable by MotorK. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: 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 and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. 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.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, 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 securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. 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, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2024 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

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. 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 (i.e. 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.

United Kingdom

This document is prepared and provided by Edison 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.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison 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. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on MotorK

View All

Latest from the TMT sector

View All TMT content

Research: Healthcare

Newron Pharmaceuticals — Evenamide notches up another win (study 008A)

Newron Pharmaceuticals has shared positive top-line data for its evenamide programme from its potentially pivotal Phase II/III trial (study 008A) in patients with poorly managed schizophrenia on current antipsychotic therapy, but not considered treatment-resistant. The trial met its primary endpoint of improvement on the Positive and Negative Syndrome Scale (PANSS) score from baseline, and the key secondary endpoint of improvement on the Clinical Global Impression of Severity (CGI-S) scale. Statistical significance was met in both, consolidating the already strong results from the Phase II trial (study 014/015) in treatment-resistant schizophrenia (TRS). Management plans to follow this up with a potentially pivotal Phase III study in TRS (study 017), which, subject to final agreement by potential partners and regulatory bodies, could commence within 2024.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free