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Very good interview, position yourself and be patient https://youtu.be/OSYcduCraK8?si=wlDlZ7Df3V3fO6Qb
This is not the type of company where a contract, or even a group of contracts, are rns able. It's just about a high level of renewals aligned to new deals of varying sizes, new / existing customer, channel / direct.
The chair going is irrelevant.
However agree the outlook segment of the recent half year update could have been more detailed / comprehensive.
Chairman walking away as talk of acquisitions emerges. Still no sign of the pro.ised new contracts. Becoming concerning.
I hold, but as usual time will tell whether it's cheap.
1. The mix of a lower % growth (but still good growth) aligned to a higher renewal rate is slightly worrying.
2. Will be interesting to see the £££ in incremental sales and marketing, with the lag to revenue this will hit bottom line for a year or more.
3. A s someone who has worked in commercial / sales finance in saas assessing a $250m near term pipeline, a raw pipeline number is pretty meaningless. Better to have current year close / next year close pipeline and both to be weighted.
Main factor to me is the management team seem to have their heads screwed on, good focus and seeming operational execution. The acquisition thing a bit weird unless they want to build complimentary divisions.
Look forward to holding this one.
Agreed - it's cheap.
£5.4m value of assets ☑️
£493k cash 💰
"Strategy:
~ Develop its business to deliver long term, sustainable growth in shareholder value.
~ In the short- medium term this is expected to come from organic growth & thereafter may also come from complementary acquisitions."
https://twitter.com/acuity_rm/status/1707304265293693345?s=52
Exciting times ahead....key with these type of shares / opportunities is to load up when no-one else is looking and just wait for market to catch-on and big contracts to land.
6.25M cap looks very cheap with a forward pipeline of 4M plus revenue with an 87% profit margin
Based on todays results we will clearly be cash rich
Agreed - I would be gobsmacked if that's not an indication bigger contracts are due to roll in shortly.
Love it.
New finance director and new CTO appointed within weeks of one another. Quite a statement of confidence in their expansion plans!
The other points re. today's RNS worth considering:
✅ Contract win to existing client
✅ Addition to their existing contract
✅ States further opportunities identified within this client and other existing private / public sector clients for STREAM
So more than just the £87k on closer inspection:
👉 Further proof that existing clients are a) being retained and b) being 'upsold' / taking more services
👉 Re-affirmation of further opportunities in play
So whilst 'just' £87k (4% of rev) - if Kerry and team can continue to add multiple contracts via existing and new clients, which we know is 'sticky' based on retention rates, then the story quickly unfolds
New contract increases current revenues by about 4% based on previous update
This is from an existing customer adding to its current service levels
Fully expect to see lots of similar size new contracts and larger ones over the next 12/24 months
MCap £7m makes this a bargain at this level
Direction of travel looks clear to me
Its peanuts though.Need bigger contracts to shift the price
Great to see another contract win, well done. More to come no doubt.
Bring on the £s
Super investment here. Cheap as chips !
For sure, I keep humming on a top up but might just let it ride and keep my average low for now. Agree that September will be very good to us
Such a tight free float and contract wins expected in Sept.
Today's move shows how difficult it is to build any position in size.
10p 1st short-term target.
A low market cap share with a contract pipeline that sneaks up slowly under the radar
Cyber & risk mgt SaaS focus ,under 8m mcap.
No debt - CLN’s/ warrants.
▶️ 1.8m sales last year
▶️ 3.8m contract pipeline (‘23)
▶️ Renewal rate 96%
▶️ Renewal value 124%
▶️ Over 50% share register held by BOD or TR1’s
▶️ RTO Deal price 6.5p
£7.8 mcap / 6.25p
Still early - 10p 1st target 🎯
Expect regular contract win updates akin to ONDO 🗞️ CEO stated 10-15 new ‘logos’ this year.
Not sure when but new contracts will land, I have a very large position otherwise I would add a few more at this level. In my mind just a waiting game at such low mcap. DYOR
How many did Kerry hint at before year end?
Surely there will be a contract announced soon.Not had one for a month now
Covered in the podcast 14 minutes in https://twitter.com/RoastPR/status/1690705449648054272?s=20
A couple of very hefty buys there
Https://youtu.be/6znxosHgNJ8
Another interesting interview, UK govt contract award pivotal.
Looking to accelerate growth via US distribution partners (one new partner recently announced).
The more I reflect and the more I listen, the more I think this an undiscovered gem of a company.
8m mcap is a snip to build a position.
Kerry and company seems breath of fresh air - let’s see.
No warrants / no debt - make’s a huge difference to the value we can reap as early investors as well.
And appreciate this was a strong consideration and of importance to TR1’s as part of the RTO.
Right product, right salesfoce, right leadership, right sector.
Excellent interview:
- expecting to announce regular contract 📑 wins & partnerships
- pipeline looking healthy
Under the radar 8.5m mcap.