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.
Last year they issued their final results at the end of September. With the stock trading so low, surely it is in their interest to get as much good news out as possible?
Langdon sale - I have tried to find out who bought this. I have personally never heard of a sale being announced without the buyer being disclosed.
Opacity creates uncertainty which dilutes trust.
Agree, a catalogue of errors and scant thought for investors.
It would be interesting to know the thoughts of the major holders though, particularly Gresham which sits on some 28% along with Amati also with a sizeable holding and Octopus too. I felt that they must have been instrumental in the fast tracking of the current CEO, so one would assume they are comfortable with the direction!
Still of the view that it will be acquired itself at some point, but we will see.
Results due are unlikely to read well as we know, but it'll be interesting to see or hear, on what current prospects are like and expectations.
Completely agree with you. You are more forgiving - I appreciate the CEO may not have his prints on the murder weapon but the Chairman and Non Execs do. I believe in a tiny little company like this the board are accountable and in my humble opinion has let us all down and should probably go.
Not at all, appreciate your view.
My point was, that it perhaps shouldn't be surprising to see the price achieved through the sale, given the sum paid and what the CEO (who didn't buy it) had previously said about it not really fitting with the core business.
It is a shame as I think a lot of us thought it should be thriving in a post Brexit environment.
The other business to be disposed of should, one would hope bring in considerably more, given the price paid being £2.6m.
On the positive side, new business won has been with sizeable players and territories away from the UK and the route to go via partners looks a sensible one.
You are right we paid less than £50,000. BUT "For the year ended 30 April 2022, the Langdon business made a loss before tax of £129,979." - two or three-year holding period - combined losses of +£200,00. That came out of shareholders fund + £50,000 cost = + £250k loss. They sold for £100,000. Unless I am stupid which may well be the case and for that please forgive me.
Theai, RDT paid less than 50k for Langdon, so I don't know where you get the idea it was a lot more?
LOL what the flip?!?!! The RNS is bu11****.
Is this the same Langdon Systems that is vital and growing in importance 'post-BREXIT' ?
Sold for a pittance of 100k?
Unbelievable.
This disposal is very disappointing. I had to read this twice thinking there must have been a typo about the £100k. I think shines an even brighter light on just how weak this management team has been and is. This has cost us much more than we paid for it given its losses etc and is now providing valuable working capital – about a month? The impact this board have had on shareholder value is incredibly disappointing.
Oh no what’s been going on here then! Why the sudden drop? The SP has been constant since that contract win in August in fact I was starting to think there may be light at the end of the long tunnel? But something must be happening, insider knowledge? RNS tomorrow? Whatever it is it looks like more bad news. Hope I’m wrong.
ATB.
I have been a holder for some time and have the scars to show for it. Increasingly, I believe the board is at fault. Making a series of wrong decisions which have cost shareholders dearly. I look back at the beginning and the company was growing at +25%. Missing targets but growing driven by the founders. It would seem that those that were at the helm then were punished by being removed and replaced by so-called industry Pros - twice! The latest lot seems to have removed all that DNA and not surprisingly are now struggling to make headway. Certain board members have been in place for all this journey whilst others for a lot of it and need to accept responsibility for this. The market is white hot for procurement technology and we are not benefitting.
Seem to be getting on top of things at last, hopefully seen the bottom & can now attract
some big clients with the new improved offering to push the company & share price forward.
I agree - Great names and reassuring - I just hope it is not false comfort. The lack of any news during a period where supply chains are being transformed and there are large amounts of VC and PE money flowing into this space I believe is of note for a public company in this growth sector.
Worth recapping on who holds what here.
Some decent names who backed the last raise and appear to remain on board!
Shareholder Origin Holdings Percentage
Gresham House Asset Management Ltd UK 96,275,000 28.33%
Amati AIM VCT PLC UK 35,274,692 10.38%
Canaccord Genuity Group Inc Canada 35,347,000 10.41%
Octopus Investments UK 14,300,000 4.21%
Hugh Cox UK 11,741,784 3.46%
I watch the constant trickle of sales and deafening silence with concern. I am surprised the new management aren’t trying to firmly establish themselves and win the support of us shareholders. I hope this board hasn’t broken why this firm listed all those years ago. Let’s hope.
Totally agree with brewman777, CEO has not impressed, came as a “Growth” person. We get a reduction in revenues of 20%, we get 80% staff turnover, including all the execs and founders, who obviously saw the writing on the wall. Why aren't there any new faces on the Board? The burn rate is over £3M greater than last year. This £3M has been used to achieve this poor performance and worse, is forecasting a lower ARR at year end. It would be nice to know how much of the ARR reduction is within the two non-core businesses, which are up for sale. What is the Chairman doing ?
Brewman777 - I think we all "hope". As I am sure you know by now as an investor when we revert to hope - it's not a good place. I think the board has a lot to answer for. The Half Year statement was an example of the CEO trying to say the right things BUT for me, they were the wrong things - who is advising him. For me the worst heroic claim was that he enjoyed 80% employee turnover! It takes years and years to build teams and an equal time for those teams to have a meaningful impact. You cannot paint or buy a company's culture - you have to live it and it takes shape over time. With this in mind - if you look at the CEO's Linkedin profile he has rarely spent more than two years in roles - not a man with a track record of building cultures and teams from the ground up. I wish them well and I remain hopeful.
This share is a constant disappointment! Held for three years and am well underwater!
Hopefully the turnaround starts now!
good summary Theai. Looking back ARR was £6.3m in 2020, £5.6m in 2021 and now expected to be £5.1m at 2022 YE (30/4). So essentially a 10% reduction for each of the last 2 years. Really poor.
I am a little surprised this hasn't dropped more today as there were few positives in this RNS, however, hopefully the turn around can start from here.
The large placing last year was in hindsight fantastic timing so at least the cash position is healthy
Some of my concerns have sadly been proved right. The board is admitting that the last CEO made two now redundant acquisitions which required diluting the shareholders by 240m shares of the 340m now in issue. However, what saddens me is the CEO spouting off about covid delaying matters – this is nonsense – RDT’s sector has strong demand. Look at the huge increase in private and public money pouring into this space and the corresponding increase in revenue of those companies – Coupa, Simfoni, Sievo & Suplari was recently bought by Microsoft and Proactis which is quoted on AIM has been bought by Pollen Street etc etc The company has gone back to where it was 4 to 5 years ago. The board have failed us. There is something that is wrong at this company's core - it is not connecting to the momentum. The problem is NOT all product related - that is nonsense again - you can have the best product in the world and not sell one license - this company boasts massive logos they signed up years ago - it must be the new culture and leadership. If you look at the numbers and ARR – they are losing clients! I would go so far and say the CEO is coming across as a product manager NOT a growth leader.
When the company was listed it was growing quite well. This stock is dead in the water unless there is a fantastic spark that re-lights the fire - it will need more than an up graded product and a polite comment from an existing client or two.
My main concern is they may be missing the boat - with strong demand in the market where new customers will adopt these smart new technologies for 5 years before changing again - the window of opportunity in key accounts is closing. You need to be ahead of the buying cycle to get a chance to win the account. Having invested so much in a new product - Speed is critical.
So although I admit that my comment about the management positioning RDT to take it private was completely wrong (PrivatePunter was right) – I do think RDT is FAR more valuable being private. If ARR is £5m – then in the private market that equates to £25m to £50m in equity value – I will take that any day of the week than watch this languish for the next 4 or 5 years.
You can play it back here https://info.rosslyndatatech.com/agm-meeting-2021_download-recording
I honestly thought it to be mixed at best. The board looked somewhat uncomfortable, uninterested and unprepared. Although you cannot see the investors on the recording, come across as being engaged and energized. I am not sure about the answers given - posture and manner in which they were delivered appeared defensive and uncertain. It lacked energy and excitement. Referred to how big companies do things and best practices - I completely agree but small AIM companies are not big FTSE companies - they need to be nimble and slightly unconventional at times.
Then the Chairman fact checked the CEO to say he was wrong about not having a partner manager, they did have one - yet earlier the CEO said partners were strategic - he has been chief revenue officer for just under a year and ceo for half a year - and forgot he didnt have a partner manager? Weird.
I thought the three were struggling to believe in their story and as a result were and looked uncomfortable.
BUT underneath this, there seem to be one or two good businesses in good markets that are growing rapidly !!! We just need to hook into those tailwinds.
The results were already flagged, so no surprises, other than the marked unwelcome reduction in ARR!
I think it is pretty clear (IMO), as I previously mentioned that the real movers instigated the changes.
So, I can't see how any blame for a past performance can be laid at the new mans door, given that he only took up the mantle just five months back.
Talk of going private seems bizarre to me too, no gain for Gresham, Amati or Octopus, far more likely I feel for a take out.
I'm sure if I say it enough it'll happen!!
Until then, with some hefty options in place, I'd guess the new man wants to kick off from a low base and under promise and over deliver. Strong balance sheet provides for time and strength, but clearly positive news in the coming months are key.
I think the meeting with Gresham will be without coffee. The market is strong at the moment. Shandypants2 is right - if the trading period they are in now was good then this was a super op / platform to bang the drum. No management team would not grasp this chance.
But there wasn't much in the forward looking statement and YE is only 1 month away so the last 5 months trading has clearly not been great too.
Even comments about reaping the benefits in Y23 are a tad worrying IMHO.
At least the cash position is healthy
The problem here is that the results are from five months ago and the last trading update is ahead of it. Share the concerns over higher costs and loss of reoccurring revenue but this is misleading in many ways given the CEO's short tenure. He needs to up the PR big style...Gresham have confidence so they know lots of things we do not and that needs to change..