The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
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I think it is this guy https://www.linkedin.com/in/jonathanswanncfc/ which would make his interest in Acuity more pertinent
...........is a property developer (according to companies house). which isn't pertinent to this share of course but interesting nevertheless, bearing in mind the history of energiser/drumz.
Don't understand why, all of a sudden, share trading in this has got busy - maybe someone else can shed light. If an offer comes in for the company at 7p.........I'll still be under water sadly.
Follow the smart money.
Massive rerate off the year low going to happen here. IMO
...seller not reloaded up, so 4p indigestion may be clear now.
See what next week brings, but nice churn this week and resilience of SP at 4p.
2-4 contracts in near future would be lovely.
Suggest 6.5p would be fair value about now - in better market conditions - circa 8m mcap.
The lack of debt and cash in the bank - as well as 7.9m growing pipeline - with retention metrics strong, and risk mgt / cyber key industry topics, it feels like we are pushing against an open door.
We've seen in the UK - where the 1st govt contract led to much bigger contracts following.
1st contract landed recently for US govt - surely same will occur, more and bigger contracts to come.
We've seen in the UK - where the 1st govt contract led to much bigger contracts following.
1st contract landed recently for US govt - surely same will occur, more and bigger contracts to come.
There's a high barrier to entry to win those type of contracts - but once you're in, you build on the base and difficult to displace.
I think there's someone holding this back - perhaps one of the Elevate/Inland Homes investors trying to get out. Maybe.
Bought more today - think that’s the flush to see if sub 4p selling, let’s see. Thoughts below:
——————————————————————————
#ACRM - 4p tremendous value for mid term perspective.
No debt - CLN’s/ warrants.
▶️ 2.9m sales rev (70% increase in 9 mths)
▶️ 7.9m m contract pipeline (88% increase YoY)
▶️ Renewal rate 85% (reduced due to low value contracts not renewed)
▶️ Renewal value 124%
▶️ Cash 1.2m Jan '24
▶️ Close to 60% share register held by BOD or TR1’s
▶️ RTO Deal price 6.5p
£4.86 mcap / 4p
Still early - 7/8p 1st target 🎯
Expect more contract wins in next few months, per last RNS, several other opportunities anticipated to close.
Fully agree, smart money coming in. Looking at the chart we are getting into an interesting point where we might break out of a downtrend since the June 2023 peak just below 10p and head slowly back towards that area during the year. As we have seen over the last few sessions buyers are coming in and it will not take a lot to move the share price. It's already happening and we know that further contracts will follow and as per Angus we will be profitable from 2024. DYOR
...happily accumulated chunk of 500k and 100k at 4p and 4.1p.
Also another 110k buyer, so that's circa 700k of 4p shares swept up.
Quote to buy 300k shares at close was 5p.
Will move up nicely when ready.
You got a decent price !
I'm not a city boy so really dont understand how the MMs work AIM small caps, if your price is a buy the others look correct as buys. Why today is the buy price so low.
Agree with your medium term views on ACRM - the pricing just seems weird at the moment.
Just added 275,000 shs, in my mind we are again at the lows seen in December 2020 and November last year which were followed by price increases. We are at £4.5m mcap but in the best position we have never been in terms of revenue and pipeline DYOR
Government contract growth.
Accumulation phase.
Skin in the game.
Nobody knows where the bottom will be. One thing is for sure, the initial rebound will be swift and many will miss out. Great time to start averaging in for a long term multibagger.
The sweet spot is nearly there…
Let the bigger fish take the cheap ones and then join the ride.
Seems like someone still selling form inland going #### up ?
Was hoping for a bit of a bounce to at least 6p with the govn and US deals and Angus strutting his stuff across a few pods.
I own CNS which is a little similar (well run, solvent, good partners etc) but just stuck at a share price, also have looked at S247 which has had recent movement but still at a low price.
If this goes into the 3's I'm buying..............unless it goes into the 2's! No rhyme or reason to this share.
An interesting listen.
Basically following the standard software / SaaS business model (channel/renewal/direct new business)- but I feel with a very strong focus and a lack of ego.
Six sales people did surprise me, but the £750 x 6 would probably have an over assign of a group target of between 10-20%. But if you take the £750k over three years and even seasonality between the months this would give c £135k first year revenue per sales head in year 1, £810k for six. Monthly ARR increase at the end of the year would be c £125k and a contracted revenue increase from new business at the end of the year of about £3.7m.
Will be interesting to see how this rolls !
Hot on heels of winning of 1st US state contract 📑 last week…
Another good summary in #ACRM TG:
“Some interesting snippets I picked out from Angus:
➡️ 6 sales person employed at the moment. Each would be expected to achieve around £750k in new business a year.
➡️ Haven’t even scratched the surface of potential British Government business. Massive opportunity.
➡️ About a dozen customers in the states, hope to grow that by >50% in 2024
➡️ 3 or 4 big opportunities on the go at the moment. Currently pitching to a Fortune 500 company in the US.
➡️ About 10 customers in Germany, potential to expand with new partner.”
#ACRM - excellent post in a TG group 👍
“good podcast and some interesting points made by the Chairman, Angus Forrest. 👆
He’s no ‘spring chicken’ but he definitely knows how to grow & sell businesses!
I didn’t realise ACRM had grown the British Gov contract by 10x and he also anticipates similar growth with other new customer companies.
Ref British Gov contract AF stated:
‘Absolutely massive opportunity, with our number one department (MOD) we could easily do £1 million a year (we’re only doing £500,000 at present) but that would only be scraping the surface. Probably there’s £5 million a year in that one customer’.
If they achieve the £5 million a year figure - that would be 100x from the original contract and on top of that repeat revenue streams in the future, with even further potential gov department contracts coming online through the pipeline (also up by 165% to £7.9 million)!
In addition, AF also states they are aiming for a further 50% increase in contracts from the US (in the next 12 months), which is the biggest GRC market globally.
To top it all off, he’s also planning his exit strategy once the business has grown significantly:
Circa 23mins 20 secs
‘One of the reasons to come on the market is to exploit the business, grow it and … [sell it]’
(Stating that the business model allows rapid business growth – which is attractive to an acquirer).
Very clear strategy moving forward and lots too look forward to in the short term:
AF stated:
‘2023 was a year where we put in place the steps for transformation & growth…2024 is when we demonstrate we are growing really strongly.’
I do like the way this company is way under the radar at present. GRC is not an industry which includes the excitement (volatility) of the mining sector but it is steadily winning contracts, generating cash and moving into a huge market opportunity (due to legislation, global cyber threats, reputational risk etc).
I don’t think ACRM will multi bag ‘overnight’ but I do think it will multi bag over the short to medium term– just with a lot less ‘noise and fanfare’. 😉
IMHO”
Indeed great interview and leadership
Talking about leadership. Nice interview from Angus released:
https://x.com/marketmusing/status/1750941674027524214?s=52
Agreed.
The strategy is clear and being executed on perfectly to date.
‘24 will be interesting for sure 👌
Key to me here is the management team following through on what they have promised in interviews and podcasts a few months ago.
So many AIM companies have Chairman, CEOs are all mouth talking a good game but really not delivering on the strategy, completely overestimating their own ability / risk / time to close and grow key deals - and then blaming "the market" for their own shortcomings.
Strategy appears to be followed by operational delivery.
DD.
Expert commentary and analysis.
Clear you have no tech sales / channel knowledge here, or seemingly understanding of strategic geographic expansion.
No one has stated they have cracked the states, it is the first but important tick in the box and a hard hurdle to cross.
As others have said the value is not that important. It’s a bridgehead and reference site, it is a pointer that acuity can contract and win business.
What would have been better would that this was a channel rather than direct win - once a channel can see that they can easily replicate customer wins they throw more resource and management focus at it.
A £30k a yr contract means we've cracked the States.................I've read it all now haha