George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video 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.
Odd that the share price has dropped over the past few weeks if Darren Carter bought 3% of the company on the open market...?
But the second RNS today shows Praetura Group have sold out of their 3.5% holding. Darren Carter is most likely the same Darren Carter that is a NED of Peel Hunt and Praetura Group, so it's likely that DC picked up 3% of Praetura's holding.
The other c0.5% were probably either sold to someone who doesn't have to disclose their holding of on the open market.
33p is still is a good bet for the risk-reward on offer here.
Darren Carter has been buying in substantial amounts - he's increased to 10.29% (from 7.27%) and now has 5.04m shares:
Https://uk.advfn.com/stock-market/london/sysgroup-SYS/share-news/SysGroup-PLC-Holdings-in-Company/93384596
Good to see today's trading update confirms strong Q3 trading, with double digit revenue growth, a new £500k contract and an inaugural AI/Machine Learning contract with a drug discovery company:
Https://uk.advfn.com/stock-market/london/sysgroup-SYS/share-news/SysGroup-PLC-Board-Change-Update-Change-of-Registered-Office/93211894
AI (artificial intelligence) should be a key IT driver in 2024, so IT companies should highlight their exposure to this.
"The Year Ahead: Human Capital Management Industry’s Projected Outlook Remains Bright
Spotlight Growth - Thu Dec 28, 2023
... Chief Human Resource Officers (CHROs) are stating their plans for 2024 to include continued development of employee experience, as well as investment in AI ...
Lastly, the survey points to an increased priority to utilize technologies, such as AI, to help automate more HR processes and functions. 61% of CHROs surveyed said they are investing in AI to streamline HR. ...
Asure Software Stands To Benefit From These CHRO Priorities
Asure Software (NASDAQ: ASUR) is one such cloud-based human capital management service provider that stands to see continued benefits from overall growth in the industry. Throughout 2023, Asure has launched several new products and services specifically aimed at helping small and medium-sized businesses (SMBs) cut costs by streamlining operations, as well as improving employee retention and recruitment.
In partnership with companies like H&R Block (NYSE: HRB), Intuit (NASDAQ: INTU), Amazon’s (NASDAQ: AMZN) AWS, ZayZoon, Harbor Compliance, Lendio, and more, Asure has worked to deliver its SMB clients with a wide range of services across payroll & compliance, employee taxation, employee benefits & 401k, remote worker compliance & services, on-demand earned wage access, treasury compliance services, access to funding service providers and more.
During Asure’s recently-announced third-quarter financial results, the HCM provider reported a 34% y/y boost in revenues to $29.4 million. The company also beat its bottom-line estimates with an adjusted EBITDA of $6.2 million, which represented an improvement of $4.4 million in the third quarter of 2022. ..."
HTTP://www.theglobeandmail.com/investing/markets/stocks/AMZN-Q/pressreleases/22999650/the-year-ahead-human-capital-management-industrys-projected-outlook-remains-bright/
Asure Software (NASDAQ: ASUR), which is singled out in the above article, is one of the impressive range of software partners of Grosvenor Technology - which is a subsidiary of AIM-listed Newmark Security (NWT) - and both GT & NWT have AI articles on their websites:-
"The power of AI in workforce management: unlocking productivity and efficiency
... Grosvenor partners with a range of leading software channel partners who integrate their software – and all of the AI you’ll need – onto our devices. ..."
https://newmarksecurity.com/insights/the-power-of-ai-in-workforce-management-unlocking-productivity-and-efficiency/
https://www.grosvenortechnology.com/insights/the-power-of-ai-in-workforce-management-unlocking-productivity-and-efficiency/
I nipped over to their website after seeing the AI mention in the RNS. I couldn't see any significant mention of it which conflicts with with the RNS content, at least for me as a potential new researching investor. It might be useful to make a bigger deal of it publicly if they want to steer potential customers in the direction of their latest stated aims.
The H1 Trading update is out today:
https://www.londonstockexchange.com/news-article/SYS/trading-update-notice-of-results/16190460
On the surface, this looks like a TU that the current market is going to hammer. Revenue down, cash down, debt up.
But below the surface there are some interesting things going on. The tough economic climate caught up with SYS, but it seems like the new Chairman Heejae Chae is a man with a vision.
The new board appointments (still no CEO? but it seems Chae is fulfilling that role under the title of Chairman) are amazing, and most likely a result of Chae's connections.
A big mention of AI (including appointment of Chief AI Officer), which is a new one for SYS Group, and it's definitely a hot buzzword right now, so we'll have to wait until the Half Year Interims are published on 27th Nov to find out what it actually means.
Some buying pressure recently, pushing the share price up, despite the rest of the markets seeming to crash, makes me wonder who is behind it.
It certainly was a good time to get onboard, nice little move up today
Welcome aboard! Sys Group seems to he a sensibly managed company in growth mode with sticky high margin recurring revenue.
Heejae Chae certainly sees something he likes, and he has a great track record.
It's a quiet stock flying under the radar of the herd. It's a good time to get onboard.
I was researching this all morning and I must admit it's an intriguing one, my only minor concern is that some of the financials could be better but I think there is a lot of interest here and certainly see a strong business. Also has the magic combo of reliable high recurring revenues and strong cash generation, this is an awful market right now so looking for this kind of investment. I'm in
Not much stock around and someone is trying to get their hands on all they can.
The upward pressure on this, while everything else in the market is crashing, makes me happy to hold and wait to see what happens.
More rises again at the end of last week and this morning with steady buying still coming in, notably just now a 39.475 share buy at almost the new full 38p offer price.
Still quietly moving up. 4 trades today, all purchases.
Certainly not much stock around - ticking up again on just a £3k buy today after further nice rises in the last few days.
With 3.7p EPS forecast the P/E at 33p is still rather low......
Is Richard Heejae Chae buying again...?
4 trades today, each one a large round-numbered purchase, totalling 74,000 shares.
The new Chairman has bought another 150,000 shares - he now owns 14.2% of SYS:
Https://uk.advfn.com/stock-market/london/sysgroup-SYS/share-news/SysGroup-PLC-Director-PDMR-dealing/91742669
Nice summary on Techmarketview this morning:
Https://www.techmarketview.com/ukhotviews/archive/2023/06/26/sysgroup-ceo-departs-on-a-positive-note
"Monday 26 June 2023
SysGroup CEO departs on a positive note
sysgroupFollowing a rather painful FY22 where revenue was impacted by the pandemic, SysGroup has turned in a good set of FY23 results. The top line leapt 47% to £21.6m with adjust EBITDA up from £2.82m to £3.33m.
Managed Services were c.80% of revenue but accounted for a reduced share of the total with the resale stream more than doubling to £4.2m. This change in mix has pushed down the gross margin.
The revenue line was buoyed significantly by acquisitions made in the first half – that of Truststream Security Solutions Ltd and Orchard Computer Ltd. The former provides professional and managed cyber security services, with clients in both the private and public sectors. Orchard is a managed services provider and brings a diverse client base. Acquisitions aside, organic growth was a reasonable 6%.
Last month, CEO Adam Binks announced he would step down following the release of the full year results. He has been at the helm for nine years, taking revenue from c.£8m to more than £20m. Heejae Chae joins the Board as Executive Chairman and will take day-to-day responsibility for the running of the Company.
FY23 saw SysGroup put some growth foundations in place with the acquisitions, and the first two months of the new year have been “in line with the Board’s expectations”. FY24 therefore represents something of a new chapter in more ways than one."
Good news today, with 3.9p EPS being ahead of guidance. Much credit to SYS for achieving 6% organic growth when many sector comparators have been performing badly.
The historic P/E is only 8.7, and the current year has started well. Cash flow from operations was up 23% to £3.02m, and net debt is fine at £1.32m - I'd hope for further acquisitions now the last two have been successfully bedded in.
Recurring revenues remain at an extremely high 81%, and the new major shareholder Heejae Chae will want to drive things along now he's Chairman.
Liverum will hopefully have an initiation note out imminently.
A reminder that Zeus forecast 3.7p EPS - a historic P/E of just 9.2 following the bullish year end trading update as folows:
"...Following a strong close to the year the Group is pleased to report trading for the FY23 period in line with expectations. Despite the difficult economic backdrop, Group revenues grew 47% to GBP21.6m (FY22: GBP14.7m) and Adjusted EBITDA (1) increased to GBP3.33m (FY22: GBP2.82m). The growth in Group revenues was achieved through a combination of 6% organic growth supplemented by the successful acquisitions of Truststream and Orchard (the "Acquisitions"), both in April 2022.
SysGroup's strong track record of cash generation has continued, with gross cash of GBP4.18m at the year end (FY22: GBP4.13m), achieved after payment of GBP5.8m in aggregate in respect of the initial consideration payable for the Acquisitions. As expected, following the Acquisitions and successful refinancing, the Group has a net debt position of GBP1.32m excluding contingent consideration (FY22: net cash GBP2.99m)..."
Up again today - looks like our buyer's still out there.
I think you're right. I've been trying to buy 3,000 shares for the last 2 days. Can't get a quote on IG and even when I try to buy on exchange, offerring the full buy price (and more than recent transcations) my order hasn't been filled. Someone is getting priority. Good luck to those already holding
Rising nicely today and every day this week. I'm guessing that our new major shareholder is buying more.
But still lots of upside to Zeus Capital's 61p valuation.
Https://martinflitton1.wixsite.com/privatepunter/post/sysgroup-sees-new-investor-on-board-24-04-23
An excellent new feature on SYS as ever from the Private Punter . Very useful info on the transfer of shares to our new large investor from the sellers.
If Liberum's new forecast for this year is around 3.9p EPS as suggested then it's easy to see a share price of say 47p on a modest multiple of 12.
And with only a small and improving net debt position there could soon be another earnings-enhancing acquisition too.
The RNS just out confirms that Heejae Chae bought the 1m shares which went through yesterday - he now has 6.8m shares worth £2.1m here and 13.92% of the company.
Quite a vote of confidence:
Https://uk.advfn.com/stock-market/london/sysgroup-SYS/share-news/SysGroup-PLC-Holdings-in-Company/90801318
Out last night so just seen the news - intriguing! Here's his CV - 12 years as CEO of Scapa and 4 years as CEO at Volex. Plus he started out as an analyst, so he knows his onions re investing in companies.
I'm guessing he's around 52 or so now, so definitely young enough to still be looking for opportunities, though whether his motives here are simply investment-based or whether he wants to get hands-on remain to be seen:
Https://www.linkedin.com/in/heejae-chae-817362a/details/experience/
Our mystery man, at least for 11.87% of the company, is Heejae Chae. Experienced AIM CEO and a director at IP Group.