Kape Technologies Share Discussion Threads

[wildchild] 18/6/2021 15:15

Nice sector to be in for the future. Cybersecurity is not going away anytime soon.

[johndoe23] 18/6/2021 11:06

Looks like seller has cleared...

[gleach23] 15/6/2021 12:14

Apologies yes I meant Trading Update. Thanks wynmck

[wynmck] 15/6/2021 12:03

results were 15 Sept last yr
a t/s was issued prior on 21/July

[gleach23] 15/6/2021 11:32

Barring a market sell off this looks like a lovely point on the chart for a trade into results due in a month or so imo

[johndoe23] 13/6/2021 10:52

Thanks for those useful bits of info rivaldo. Things progressing nicely here

[rivaldo] 13/6/2021 07:25

Another useful survey of VPNs from only 3 weeks ago - once again PIA and CyberGhost are mentioned extremely positively in despatches:

[rivaldo] 11/6/2021 09:43

Nice write-up on Forbes, ironically about AVG's VPN, and concluding that AVG's product is only worth 2.5 out of 5, whereas KAPE's PIA gets 4.5 stars and CyberGhost 4 stars.....



"Private Internet Access is cheaper than AVG, and it comes with the same number of simultaneous connections. Importantly, PIA also comes with a dedicated IP address option for business-minded users and a much larger server network, giving you options with where you tunnel."

[mrnumpty] 04/6/2021 12:43

Rivaldo . Thanks for posting the ST latest article - you’re a star . Although I subscribe to the Investors’ Chronicle ( and SCSW ) , I couldn’t find the ST article on-line . Yesterday’s share price drop was a little unpleasant , but there was no negative comment from the Company to substantiate or justify it , so I’ll just ignore it as noise or a tree-shake and continue looking to the next two or three years . Good luck all .

[rivaldo] 04/6/2021 12:36

Here's Simon Thompson's tip for the record:

"Kape makes strong start to 2021

New US$220m debt facility includes US$90m acquisition facility.
Borrowings expected to be wiped out by end of 2022.
Business adding 25,000 new customers per month.
New product launches and cross-selling initiatives helping to drive up average order values.

Cyber security software provider Kape Technologies (KAPE: 315p) has issued a bullish trading update and announced a new senior secured bank facility on enhanced terms.

Kape is on bang track to deliver 2021 revenues of $197-202m (representing 65 per cent growth) and underlying cash profit of $73-76m (90 per cent growth), in line with guidance at the time of the US$149m earnings accretive acquisition of Webselenese (‘Tap into an eye-catching earnings cycle’, 8 March 2021). Webselenese is an independent digital platform that provides 8.5m users with unbiased insight driven content focused on cyber security and privacy trends that attracts software vendors (McAfee, NortonLifeLock, Dashlane and Kape). Kape has launched multiple cross-company initiatives since making the acquisition which are enabling it to benefit from Webselenese's substantial technology knowhow as well as enhancing the group’s product development and go-to-market capabilities.

Kape’s digital privacy division continues to deliver bumper growth. Since the start of 2021, the business has added 25,000 new customers per month to take the total to 2.61m paying subscribers, with growth rates expected to accelerate. The directors also report that over 12 per cent of new Cyberghost customers and 20 per cent of new Intego users are purchasing more than one product.

New products are helping to drive growth, too. For instance, Kape launched its Privacy First Anti-Virus for PC, which will initially be Intego branded, and in the coming months will be rolled-out to both CyberGhost and Private Internet Access users as part of a wider initiative.

Adoption of Kape’s cyber security software (which protects data security and privacy against piracy and phishing attacks), and virtual private network (VPN) solutions (which encrypt and secure internet connections) have been rising notably in both North America and Europe, regions that account for three-quarters of Kape’s revenue.

The new US$220m debt facility is priced at a keen 2 per cent margin above the applicable reference rate and includes a US$90m acquisition facility. It replaces the existing US$40m term loan and US$120m bridging loan facility that funded the Webselence acquisition. Analysts at Progressive Equity are forecasting 2021 closing net debt of US$77.7m and predict 2022 operating cash flow of US$92.7m will wipe out borrowings by the end of next year. The deleveraging of the balance sheet is important as it means that more of the economic interest in the entity transfers from debt holders to shareholders.

The shares have achieved my 325p target price, having risen by a third in the past three months, and have produced a 555 per cent total return since I included the company in my 2017 Bargain Shares portfolio. However, I feel that a 2022 PE ratio of 13 offers scope for further upside. Not only is the company forecast to deliver 87 per cent and 28 per cent EPS growth in 2021 and 2022, so there is a strong earnings tailwind, but clearly Kape’s management are on the look out for more earnings accretive acquisitions.

I am raising my target price to 375p based on a target 2022 PE ratio of 16.5 and enterprise valuation to cash profit multiple of 13 times. Buy."

[petes5] 04/6/2021 09:00

What I find annoying is the magazine. I still do not know why I bother getting it online . Some weeks there is nothing. Never seem to cover results. You need to subscribe to get access to most things. This week's will be the last I buy.

[msands64] 04/6/2021 08:17

Agree with you. I cancelled my subscription yesterday for exactly that reason and fed back as to why I was cancelling. No response to that of course....

[dicktrade] 04/6/2021 08:11

Thanks epic.
i find the new IC magazine so badly laid out and searching for particular articles etc
on line is like looking for a needle in a haystack,
i really dont know why i bother subscribing.

[wynmck] 04/6/2021 07:41

riv-try googling ... targeting companies on the upgrade investors chronicle

[rivaldo] 04/6/2021 07:36

Excellent news, cheers. If the tip was after hours yesterday then we should see a nice uptick today.

Does anyone have a link - I can't find it on the IC web site after a quick look?

[johndoe23] 03/6/2021 18:02

His column was after market hours, let's see what happens tomorrow!

[fozzie] 03/6/2021 18:00

Time was ST used to have a positive influence on a share price direction, not today.

[mfhmfh] 03/6/2021 17:59

ST has a new target price of 375p

[toptomcat] 03/6/2021 17:25

ST reiterating buy tip today raising target price to 375p based on a target 2022 PE ratio of 16.5 and enterprise valuation to cash profit multiple of 13 times.

[rivaldo] 01/6/2021 08:55

Shore Capital have this morning issued a long Growth Companies sector summary note - it includes a long section on KAPE, mostly summarising the recent AGM update and new loan facilities, and with these conclusions:

"At 328p, and a market cap now a little over $1bn, Kape has gained 76% year to date versus 11% for the FTSE All Share index, and trades on 15.1x EV/EBITDA for FY21F (18.4x PER) falling to 12.0x EV/EBITDA for FY22F (14.1x PER). We also note Kape’s recent inclusion in the MSCI Global Small Cap Index as of 27 May 2021 (see link here).

As many investors will appreciate, Kape is demonstrating high-growth credentials and we believe the balance of mid-term opportunity vs. risk remains materially underrated. Backing this is strong strategic execution to date (both organic and M&A) and the exciting prospects for the enlarged Group following on from the Webselenese acquisition. With high recurring revenues, a large and growing customer base and a markedly increased earnings outlook in FY2021, Kape remains well set for the year ahead and beyond."

"Since the beginning of the year, Kape has been adding c. 25,000 new customers a month, on a net basis, in its digital privacy division, and management expects this to accelerate moving forwards. At present, the Company supports c. 2.61m paying subscribers globally (up from 2.52m at 31 December 2020). For perspective,the number just two years ago was c. 1.0m (as at 30 June 2019). As expected, Webselenese is proving to be a very positive addition to the Kape family. Multiple crosscompany initiatives have been launched which are enabling the Group to benefit from Webselenese’s substantial technology knowhow in the space. These are said to be already enhancing Kape’s product development roadmap and go-to-market capabilities.

•The statement goes on to highlight continued strategic execution around becoming a one-stop-shop of choice for customers’ digital privacy and security needs through the expandingproduct suite and go to market capabilities: In just four months since the launch of Kape’s privacy suite, over 12% of new CyberGhost customers and over 20% of new Intego users, are now purchasing more than one product through it, resulting in an increasein Average Order Value (AOV). As expected, Kape continues to invest in both R&D and new product development, which remains a key growth driver for the business.

•In May 2021, the Company launched its Privacy First Anti-Virus for PC, which will initially be Intego branded, and in the coming months will be rolled-out to both CyberGhost and Private Internet Access users as part of a wider Company initiative.

Overall, the AGM update demonstrates that Kape is continuing to move at pace to build a market leading suite of security offerings, concurrently delivering on its commercial goals, corporate integration milestones and financial guidance."

[epicsurf] 28/5/2021 21:13

Kape Technologies (LON:KAPE) – I love this stock

Would you buy shares in a global specialist technology company where revenues will rise five times over five years?

Where its adjusted pre-tax profits rise ten times in the same period?

And where its earnings increase more than six times?

While its price/earnings ratio drops from 86 times to just 13 times.

Well now you can see why I was so keen on this group’s shares last December, since when they have almost doubled in price.

This digital security and privacy software business is now 60% of its way through that cycle of figures.

On Thursday 20 May the company held its AGM which declared a strong start to its full year to end-December 2021. Its subscriber numbers are up 100,000 at 2.61m, while its ability to cross-sell is rising.

The estimates of analysts Ian Poulter and Gareth Evans at Progressive Equity are shown in the attached box. I thank them for highlighting the group’s attractions late last year.

Yr end Dec $m 2018a2019a2020a2021e2022 e Revenues52.166.1122.2200.0250.0Adj PBT8.210.630.864.383.3EPS (c)5.06.513.525.332.4P/E86.4x66.3x31.7x17.0x13.2x

(based upon analysis by Progressive Equity Research)

On their estimates I remain very optimistic of another hike due to occur in the group’s share price, now 331.5p. 

I think that we could see such anticipatory action ahead of its next trading update in July.

(Profile 21.12.20 @ 172p set a Target Price at 215p*)

[igoe104] 28/5/2021 11:58

Yep, another canny acquisition looks like it could be on the cards. And bringing the debt down from 6% to 2% excellent business. The kape management are excellent.

[lsoc85] 28/5/2021 10:58

Very positive update. My guess is that they've already agreed to an acquisition in principle. And going off the last two recruits, it's likely to be mega earnings accretive. Currently the best in my portfolio, KAPE. Long may it continue.

[rivaldo] 28/5/2021 07:40

Indeed. These facilities replace the prior bridge facilities at much cheaper rates - and are a clear signal of KAPE's intent to continue to grow the business organically and via further acquisitions.