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Results are out and so some recently appointed directors must be chomping to buy a good chunk at this price surely? or not. Follow their money.
Show of confidence Andy Walters 356000 pounds worth
Join us at the ShareSoc Growth Company #Seminar in London on 28/02/24. Register here: https://bit.ly/3NH0NEC Companies presenting: Quartix Technologies plc (QTX), Itaconix PLC (ITX) and Eden Research PLC (EDEN).
This seminar consists of a 25-minute presentation by each company followed by 15 minutes of questions and answers. Companies presenting are interesting growth companies of small/medium cap size. Attendees will have the opportunity to talk directly to the directors of the presenting companies. This is also a great opportunity to socialise with your fellow investors and discuss these and other investment opportunities.
I looked into this one given the large share price drop & return of the founder. Clearly misfired on the German acquisition. Dividend also under pressure given drop in cash reserves.Frankly on a dcf basis, assuming modest core revenue growth & only a slight improvement in operating margin, then it’s not hard to mark the share around £1.40. What’s likely to provide a real tailwind ?
25,578 shares at 183p bought by Dan Mendis (COO) on 9 Nov 23, according to IC
Share price has halved in last 12 months. A real struggle. Would be nice if the Board and management were to take a pay cut and be paid in shares to share the pain and keep focused.
Latest interims are much better, there's a potential for m-cap growth, IMO - a bit undervalued atm.
Very disappointed to see such price erosion
Due to IPO next month!
Wonder what trakm8 will do. With a £8m mcap and 250k connections, I imagine some takeover potential
So, given no intangibles or tangibles all development is immediately expensed. Nicely conservative?
apad
Courtesy of redartbmud. Goodwill dates back to 2008 birthdate.
apad
Goodwill is normally associated with taking over a company. The current software accountancy debate is whether it is tangible or intangible. Good question, Monkshood - they haven't acquired anybody....have they!.
I don't like the US expense being dealt with as special. A normal expense that will feed into the UK/EU change. I am expecting an increase in bad debts as the panicdemic effect works through.
To me, QTX development of software that links to the back office is as major an asset as a building to a shop company (used to be ??).
apad
I am sure that Conbrio fund partners would have had a good 'look under the bonnet' before they took such a significant holding, especially with regards the future cost of the 2/3G sunsetting, this provides me with reassurance about this aspect.
I like that the dependence upon a single insurer for a chunk of the revenues is decreasing, this was a concern when they were dependent upon the insurance market. I did wonder if there would be a problem over 'data' with Brexit but this seems to be all OK.
The US is switching off 3G sooner than the UK/EU are switching off 2G. There is a bit in the accounts -
'As described in the 2019 Financial Statements, Management expect the sunsetting of the 3G mobile network in the US to be finalised in 2022.'
'Management believe that, at some point between 2025 and 2030, most UK and European network operators will finalise the sunsetting of their 2G networks'
I read the increase in provisions 247K - 1,785k as being due to the cost of changing the units in the US.
Interesting point about 'intangibles', is 'goodwill' their version of this?
Monkshood. Ta for your earlier message about the cost of EU/UK updating. I looked back because of the !.6million US 3G "one off" which I found odd because it looked like a normal business expense. Is there a reason why the US updates had to be done in a hurry?
Their bad debt has risen and it looks as if their a providing for a bigger increase down the tracks.
There is no mention of 'intangibles', which is amusing as their software and hardware development are very valuable. Modern accounting is so yesterday.
apad
The results follow what had already been outlined in the trading update. The divi is larger than I was expecting though.
'Final dividend payment of 17.7p per share proposed (2019: 10.0p) including 15.30p for supplementary dividend (2019: 5.8p) giving a total dividend for the year of 21.07p per share'
Seems the Sanford "Buffett fund " increased their holding recently .
Normally directors off loading would be a red flag but there is nothing to indicate that is the case here.
I assume the sale was either a 'life event' or a tax move to pre-empt possible tax changes in March (£40M+ should pay for a nice post covid holiday). They have kept the majority of their holdings (22% of the company) that were in a Trust. There is no dilution for existing holders.
As the placing was oversubscribed at market price on the day and closed very quickly, it would seem that II's were happy with this.
For anyone concerned about the cost of changing the older UK/EU units, they have until 2025-30 before they need to do this. They are looking at the best ways to reduce the potential cost of this.
As they have plenty of time, a good cash flow and lots of money in the bank it should not be too burdensome.
'Management's current estimates for revenue, adjusted EBITDA and free cash flow for the Period are £25.8m, £7.8m and £5.3m respectively. The Company's cash balance at year-end was £10.6m.' (so EBIDA was about 15% ahead of market forecasts in the Autumn)
Clearly growing well internationally.
They have repaid furlough payments and have no VAT deferrals rolled to next year.
The only negative is the previously flagged provision, taken this year, for swapping out their 3G cards in the US which will cost 1.6M
Once things start returning to normality this should have very good growth prospects.
What's not to like!
Looking good-
'Board is pleased to report that it expects revenue and free cash flow for the year to 31 December 2020 to be in line with current consensus market forecasts, which are shown at the foot of this announcement1. Adjusted EBITDA is expected to be approximately 15% ahead of current consensus market forecasts (revenue: £25.8m; adjusted EBITDA £6.9m; free cash flow: £5.2m.)'
Lots of potential to continue the growth in US and new territories.
I am fairly new to this company. I liked its conservative approach, supported by good management. The shift away from insurance to reoccurring revenues from fleet offers steady long term potential. I thought that was a good performance given the lockdown.
It looks like there is plenty of scope for international growth going forward as well.
This is turning out to be a great share - the run off of the insurance related business hides good growth of the truck tracking business...and it seems to be catching on in new export markets.
trades today
the dip, will buy more if it dips further 9p divi to be paid in May 2017 subject to AGM approval on 28th March 2017