Just over a month ago Celebrus Technologies (LON:CLBS) updated investors about its trading for the six months to end September – it showed the Board’s confidence in producing another year of progress.
It was also anticipating the delivery of a full-year performance in line with management expectations.
Next Tuesday morning the company will declare its results and accompanying statement covering its outlook going forward.
The Business
The company states that as a disruptive data technology platform, it is focused on improving the relationships between brands and consumers via better data.
Celebrus redefines what digital identity verification means to power both next-level marketing and fraud prevention use cases.
Deployed across 32+ countries throughout the financial services, healthcare, retail, travel, and telecommunications sectors, Celebrus automatically captures, contextualises, and activates consumer behavioural data in live-time across all digital channels.
To ensure that brands can begin to improve those relationships quickly, Celebrus Cloud activates the Celebrus platform efficiently for brands in a single-tenant, private cloud capacity.
The group, which has offices in the UK, USA, and India with key talent in all markets to drive the growth of the business, is debt-free and held $25.5m in cash at the end of September.
Management Comment
With the late October Trading Update CEO Bill Bruno stated that:
"We are pleased to report another strong H1 result, and with the progress we have made as a business with our investments in both our Sales and Customer Success business units.
This has resulted in a strong and growing pipeline for both new and existing business to support future growth.
We have also continued to explore potential acquisition targets to enhance the Celebrus platform while continuing to invest in our organic growth initiatives."
The Equity
There are some 40.68m shares in issue.
The larger holders include Canaccord Genuity Wealth 11.77%), Investec Wealth & Investment (9.41%), Ennismore Fund Management (7.30%), Chelverton Asset Management (6.29%), Close Asset Management (5.74%), and Rathbones Investment Management (5.62%).
Analyst Views
At Canaccord Genuity Capital Markets, analysts Kai Korschelt and Hayley Palmer rate the group’s shares as a Buy, looking for 330p as their Price Objective.
Their estimate for the current year to end-March 2025 is for sales of £34.0m (£32.6m), with adjusted pre-tax profits of £6.7m (£6.0m), lifting earnings to 12.5p (10.7p) and easily covering a dividend of 3.3p (3.1p) per share.
For next year they go for £35.7m in sales, £7.3m profits, 13.6p earnings and a 3.5p dividend.
Their progression continues into 2027, looking for £38.5m revenues, £8.2m profits, 15.3p earnings and a 3.7p dividend per share.
Analysts Andrew Darley and Kimberley Carstens, at Cavendish Capital Markets, are even more bullish about their price hopes – 450p being their aim.
They see current year sales at £35.5m, profits at £6.2m, earnings of 12.2p and 3.3p in dividend.
For 2026 the analysts see £39.0m sales, £7.1m profits, 13.8p of earnings and a dividend of 3.4p.
The 2027 year they estimate could see revenues of £42.0m, £8.1m profits, 15.6p earnings and a dividend of 3.5p per share.
In My View
What I have always liked about this group, which used to be called D4T4 (like a car number plate = data), is its ever-growing ARR (annual recurring revenue) - I just love it!
And look at that debt-free £20m cash in the bank – that is proof that ARR is so important, the accrual is ongoing.
I do not expect any real amendments to the broker’s estimates come next Tuesday’s announcement, but I look forward to some positive news about the group’s outlook going forward.
They were 245p in July when I featured this stock, its current share price of 305p does not put me off, nor does its 40% rise so far this year – these shares are heading a lot higher yet.
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