We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I don't understand how you extrapolate their income to £M30 next year. Trading update recently said slightly in excess of £M8 for FY 2021 and Sytems Assurance 2020 revenue was £M6. From what I understand of the company they are only a reseller of Cloud services, not a Microsoft Azure competitor in the making. Have I missed something.
I'm surprised by the size of this deal. Assuming the other areas of the business don't fall next year's revenue should be approaching £30m. I wonder if they need to recruit new staff to service to service this contract and how scalable their tech really is . The 'further upside potential' is exciting, particularly when considering the recent growth in digital transformation services. Silver Bullet listed recently with a market cap of £35m or so, and only $4m in sales. Probably too small to be this customer but could be TPX Impact, which has been experiencing pretty phenomenal growth
https://investors.tpximpact.com/
2.1 to buy at the open - did you manage to get some?
I think that there is legs in this still so not selling
Brilliant news this morning.
The IT market is super buoyant at the moment. Just look at the recent results of Softcat and Computacenter. The opportunity here is huge in what is a very fragmented market.
News here http://www.vapourcloud.com/yorkshire-cloud-disruptors-join-forces-to-shake-up-industry/
From the biggest to the smallest, it is clear that new business is simply not there at the moment, so all that can be done is to hunker down and be ready with the best offering when it does start.
I imagine all businesses are currently looking hard at sorting out exactly what return to work v work at home finishes up at, what premises they have and how work is done before committing to IT spend - they surely need to be clear on that before investing in major CAPEX.
Once done, and let's imagine CFO's and CEO's are doing budgets for next year right now, whilst waiting for evidence of no more disruption this Winter, you can visualise when spending on the essential areas of communications and IT will start to flow.
Patience is needed and the ability for a company like CLCO or SYS or RCN or whoever to trade through this period of famine.
Their catch up spending moment is coming later, than say retail or hospitality but when it comes trading will markedly improve. Hopefully!
A badly received trading update from another sub scale peer today. £14m MCap, £15m revenue, £3m EBITDA. After a period of very strong growth the pandemic looks to have knocked the wind out of their sails. Doesn't look to be a bad business, seems a bit of a harsh reaction
https://www.investegate.co.uk/sysgroup-plc--sys-/rns/trading-update-and-notice-of-results/202110290700056419Q/
My reading of the recent announcements are that without any further scale IDE Connect would have finally sunk IDE Group.
IDE could not scale it - who would contract new business with such a weak entity when there are plenty of alternatives around.
Therefore they had to pretty much cut the sea anchor loose for free, into the grateful hands of CLCO, and leave themselves free to sail into the sunset with the remaining IDE business, that is actually pretty good.
CLCO feel they can get some scale into the IDE Connect business from existing clients and, most importantly, new contacts and opportunities hinted at in the second rns release about Mark Ward.
No one in their right mind would have touched IDE Connect without a clear pathway to breakeven, so therefore I see this as turning into the bargain of the year. I do not believe Mark Halpin is not in his right mind!
Anyone wanting a speculative punt should buy some of this, if you believe this narrative.
Looks like it will be choppy like this for a while to come...with the recent acquisition I expect we will be quiet news-wise for the next year, with the exception of results and the odd trading and integration update. The lack of liquidity, horrible spread and absence of any meaningful institutional interest to anchor the SP means it goes down just as quickly as it goes up and is enough to put most potential investors off
Well that rise on the SP was typically short lived, going back to where it started now by the looks of it.
There just isn't enough action, or indeed interest in this share for a sustained rise
I wondered why this was such a low cash transaction. At the bottom, IDE had a £14m impairment charge on the balance sheet. Ummmmm
Really positioning themselves for a dramatic turnaround here. If they can show an improvement over the next 12 months and be a on a solid path to EBITDA breakeven then a valuation of 1x sales is not unrealistic, being a price of 4p or £25mcap.
Its just mind boggling how bad the IDE business must have been to warrant a price of only £250k, and deferred consideration at that. From the IDE half year results:
"The Connect division has continued to struggle in H1. A lack of scale has continued to hold the business back and the choice for IDE was to invest by way of acquisition to enable scale or sell the business to someone else. An informal process was undertaken with Oakley Capital and the combination of continuing churn and longer-term onerous contracts made an elongated sale process an unrealistic option. The reported expected sale price reflects this. "
Those longer term onerous contracts are concerning. Execution risk high!
Not often I'm right but I did say long term holders would be rewarded. Much more to come yet.
Market really likes this M Ward chap. Over 30 trades today, haven't seen that for a while
What a great RNS today glad to have Mark Ward onboard now and we know it's the real him:)
Thu, 21st Oct 2021 07:00
RNS Number : 7338P
Cloudcoco Group PLC
21 October 2021
Reach - non-regulatory announcement*
21 October 2021
CloudCoCo Group plc
("CloudCoCo", the "Company" or the "Group")
Appointment of new Strategic Adviser
CloudCoCo (AIM: CLCO), a leading UK provider of Managed IT services and communications solutions to private and public sector organisations, is pleased to announce the appointment of Mark Ward as a new Strategic Adviser to the Company.
Mark founded UK-based technology services provider Hunter Macdonald in 2013 and led its growth to circa 500 employees globally. In 2017, Hunter Macdonald was recognised as the UK's fastest growing IT Services company by the Sunday Times Tech Track after achieving a compounded annual growth rate of 273 per cent. over three years. His company delivered digital transformation and IT managed services to many FTSE 350 and major public sector organisations, such as Airbus Space and Defence, Rolls-Royce, Capita, Dyson, the Home Office and the Ministry of Defence. It joined forces with Denmark's NetCompany group in 2017 to create a significant new pan European IT Services company which today totals over 6,000 employees.
Working alongside senior management and Nigel Redwood (Strategic Consultant), Mark will help support CloudCoCo's growth through regular consultation across the Group's growth initiatives and Nigel will continue to support acquisition, integration and people strategies, as well as in the appraisal of possible acquisitions targets.
Mark invested in the Company's equity placing in August and as a result he holds approximately 15.6 per cent. of the Company's issued share capital.
Mark Ward commented:
"I've been following CloudCoCo for some time now and have been hugely impressed by Mark's determination to build a significant new challenger organisation within the IT management services space, as well as his laser focus on over-delivering to his client base. Mark and his team have already achieved a huge amount, however, I strongly believe that this is just the beginning. I look forward to working with them on the exciting next stage of their evolution."
Mark Halpin, CEO of CloudCoCo commented:
"It's great to have Mark Ward on board as a Strategic Adviser to CloudCoCo as we enter this new stage in our evolution. Mark brings with him a wealth of experience within the technology sector and has a deep understanding of how to scale a technology business rapidly and profitably. We are already currently in advanced discussions with new clients as a result of his connections within the industry and look forward to sharing some exciting news on this in due course."
I think you’re right. They’ve acquired a **** show with a view of turning it around like they had done (or are well on the way with) adept4. Having been to an Adept4 AGM prior to CLCO I’d written off my investment as that WAS a shambles. IDE looks similar.
Looking far more encouraging now.
My reference to the business being a mess was the acquired IDE business not CLCO. But thanks for another deeply analytical and profound contribution from Gazza. Your one line posts are really making the world a better place
You need to stick to playing bingo
By my guess we now have a business of 27m in sales with declining growth and around break even at the EBITDA level. The consideration form is intriguing, fully financed by the vendor at a very low interest rate. Smacks of desperation from IDE. Successful managed services businesses are valued at multiples of revenue, not fractions. This business is a mess, falling revenue, rising overheads, loss making contracts and a high level of customer churn. Reminiscent of Adept4!
Yes all looking like it's going in the right direction. It will be great to see it sail past 3p as this was the original takeover price back in Oct 2019. This would send a strong signal to the market that the turn around is well under way and then 5p, 10p + should be achievable as more sales orders come in.
Agreed. Positive update and an EBITDA of £700k+ is very nice.
My prediction is 3p minimum by Christmas.
If we can get a couple of big contracts before then, I would imagine we'll surpass that quite easily.
I think its a very positive update overall. The fact that they gave us an update only 3 weeks after the year end is pleasing in itself
If you add these results to the recent acquisition (which has one month of performance included) you are looking at a business of around £14m in revenue and EBITDA of close to £1m. We actually have an EBITDA margin, an EV/EBITDA and cash flow on these numbers.
Now what we are missing now is some revenue growth..sales were flat compared to the badly covid affected 2020
A decent trading update , but this share is clearly not generating any interest, no trades so far today and nothing on the message board for two weeks.
5p by end of 2022. I think that’s realistic
It would be great if you could reply below with your Share Price predictions for 2022? It would be interesting to look back and see who is right... Just a bit of fun while we're waiting for the re-rate