What work looks like “post-Covid”
25th March 2021 |
I had to drop my car off for a service last week.
I’ll leave home at 8.15am, gives me plenty of time to drop it off at 8.30am, I thought to myself.
How wrong I was.
As I headed down one of the main roads on the way to the dealership, I hit a massive traffic jam. Not something I’d have expected at this time on a Friday with the country still under lockdown.
After about ten minutes in the jam, I realised I was going to be late dropping off the car. Not a big deal really, but I hate being late to anything.
The reason was temporary lights had been erected as ground works were being undertaken at the busiest intersection in the area. Fun and games indeed.
I did make it to my service appointment, albeit a little late. And then on the way home, in a state of muscle memory… I forgot about the roadworks and hit it again instead of taking a deviation around it.
What I noticed on my way back was it was the same kind of roadworks that had been undertaken outside the front of my house a few months ago. It was part of the greater CityFibre gigabit fibre rollout.
You know somewhere right now has CityFibre because there’s a great hulking strip of cut-away pavement refilled with a very opposing colour bitumen, looking like the pavement got a bad haircut during lockdown.
Perhaps even in your local area you’ve noticed an increase in the number of engineers working on the junction boxes in your street, or the 5G towers in your area, or even the connectivity to CityFibre cutting an ugly strip down the pathway in front of your house.
The reality is the whole of the UK is being quickly brought up to speed with nothing but pure connectivity speed.
What’s interesting is that during lockdown both gigabit fibre engineers and 5G connectivity engineers have been working feverishly trying to get the whole of the UK up to speed.
While we’ve been locked away at home in the home, the connectivity of the UK has seemed to accelerate. It’s one of the good things to have come out of the last year. Had we not gone into lockdowns, there’s a good chance this still would have taken place, but my guess is nowhere near at the efficiency they’ve been able to achieve with everyone under house arrest.
Imagine trying to mobilise a workforce across the UK to ensure not only effective and efficient operation, but also to keep everyone safe in the midst of a global pandemic.
That’s where an operation like SmartSpace Software is so important. The company recently highlighted a case study of the rollout of its “Space Connect Solution” to CityFibre.
As I pointed out earlier, CityFibre is the UK’s largest alternative provider of wholesale fibre network infrastructure – it’s rolling out gigabit fibre networks as I speak.
Space Connect Solution has many functionalities. It includes desk and meeting room bookings and visitor management. The technology allows Covid-19 regulations to be adhered to, such as social distancing, all at the touch of a button.
CEO Frank Beechinor commented on the rollout with CityFibre saying,
“Space Connect, working with its client CityFibre, is a great illustration of the scalability, speed, and capabilities of our SaaS meeting room and desk management software modules. As more companies ease their way back out of lockdown, the opportunities for us to facilitate COVID-safe working environments to new and existing customers will be significant.”
We continue to see a strong opportunity for SmartSpace in a post-Covid world as people and companies all return to offices and in-person working conditions. This CityFibre example is just one way that illustrates how that might look for businesses all across the UK.
While SmartSpace trades below our buy limit, it remains an active buy.
Stock Focus
Ocean Outdoor
The recent news regarding the sudden disappearance and murder of Sarah Everard has been a shock to the whole of the UK. It’s again raised issues about the safety of women in society, which frankly is an issue that shouldn’t exist. Sadly it does.
Worse is the fact a person in a position of authority in the midst of a pandemic is alleged to have committed this atrocity.
As a result, a number of safety campaigns have been launched to help increase awareness of the safety of women in our society. At the same time, there’s a drive to increase education for males of all ages to talk about these issues and to ensure they behave in an acceptable way.
Ocean Outdoor has played its part in this education drive. The company has now provided signage in 17 outdoor sites in “highly pedestrianised” areas in the UK to allow creative agency M&C Saatchi to roll out its “Good Guys Guide” campaign.
Camila Gurgel, senior copywriter at M&C Saatchi, said:
“We know that a lot more needs to be done to address violence and harassment against women at a higher level, but this campaign aims to at least start a conversation around the role that men can play to make sure that women feel more comfortable.”
These kinds of social issues are important. They’re also important for companies that can, to play their role in helping drive change. It’s also part of the reason why I see Ocean Outdoor as a great company and why it reaffirms our long-term view on the stock in our portfolio.
Rolls-Royce Holdings
Last week, the company received an Envrionmental Protection Agency tier 4 certification for its series 4000 M65L 16-cylinder diesel engines. These engines are used to power yachts and commercial vessels.
The engine systems were tested over a period of 10,000 operating hours.
This news is significant because it means Rolls-Royce Holdings has achieved the most stringent emissions standards for marine applications. It speaks volumes about its efficiency. It also shows how well adapted the company is to the demands of a green economy.
Rolls-Royce is on the mend after a disastrous pandemic. Its capacity for sustainability, as demonstrated by this news, is what makes it an attractive investment right now. Rolls-Royce is committed to achieving net-zero greenhouse gas emissions by 2030 and is part of the UN’s Race To Zero campaign.
This is supported by its aim to offload businesses that don’t meet those future plans – regardless of the challenges it faces. Rolls-Royce has been looking to offload Bergen Engines, a manufacturer of medium-speed gas and diesel engines – something that doesn’t fit the company’s forward strategy.
But this week the Norwegian Government has effectively halted that sale due to concerns around the sale to a Russian company. Rolls-Royce still plans to offload the company, but now has to work with the Norwegian government to try and find a suitable alternative.
Rolls-Royce remains a buy while it trades under our buy limit.
The Frontier Tech Investor “Top Three”
Sometimes it’s hard to decide on which stocks to invest in from our buy list
Below is our Frontier Tech Investor “Top Three” section showing three stocks in open BUY positions that if you’re trying to figure out what to invest in next, are the three we think are a great place to start.
This doesn’t mean our other stocks are no good, it’s just a guide to help you out in your decision-making process for the next stock we think is worth your consideration.
Napster Group – Napster is a part of the global music streaming industry. A huge opportunity for the company exists in virtual reality music and entertainment streaming. This includes live concerts. I call it the Spotify of VR. The potential is huge. The Napster brand is a good old throwback to yesteryear, looking to build on that long legacy and grow its offering. I think there’s great potential in this still relatively unknown company, now with a globally recognised brand name.
IQE – our most recent recommendation, IQE, is a key part of the supply chain getting semiconductors into the world. With a gigantic increase in the demand for semiconductors the world is facing a “chipageddon”. It’s a situation where there simply aren’t enough semiconductors to supply the world’s biggest, most demanding companies. IQE is one of the few ways to pure-play the world’s semiconductor industry in the UK market.
Velocys – there’s no doubt that governments are going to continue to push their “green agenda”. This means doing what they can to support industry that will help enable carbon neutral economies. Velocys is a big part of this developing sustainable fuels for transport and logistics (in particular aviation) with pioneering technology. If you’re looking for a great “green energy” play, Velocys is a great place to start.
Regards,
Sam Volkering
Editor, Frontier Tech Investor
