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100% agree with that.
Yes just trying to avoid any mental biases, the potential growth is huge . Katie Potts at Herald is also an excellent fund manager and wouldn't own 8% for no reason - I'm holding and adding. I can deal with "a number of significant new contracts closing but later than planned" .. and I also look on the positive side of "some other contract decisions being delayed" - they are not closed doors they are still potential new revenue. My view is people have been too impatient here, could be one of the best shares to own in 2018.
Agreed bid - someone has been swallowing every bit of stock that has come there way.... I am hopeful we will see a much more positive update in the new year than the current price suggests.....
Almost EVERY trade on here in the past few weeks has been smack on the bid. I'd guess Kestrel or one of the trusts invested here have stuck a line under it and will just keep taking them at 33 until some more positive news comes out regarding earnings etc. Anyone got any thoughts? I've got a few thou here and thinking about adding a couple more while it's quiet..
N+1 Singer believe the shares are "good value" and say their forecasts imply a 68p share price. Extracts from N+1 Singer's note: "Transformed opportunity; executing to plan ATTRAQT’s first set of results post the Fredhopper acquisition are in line and show the transformational impact of the deal. We are excited about the group’s opportunity to address the 56,000 online retailers it can target with its technology. The group has shown good contract win momentum and secured its second largest win in its history post period. It is growing double digit organically, has c.85% recurring revenues, profitable and cash generative. We believe there is the potential to deliver significant shareholder value from these levels, where valuation is at 2.2x 2018 EV/Sales." "2nd largest ever win post period The group won 13 new logos, including Arc’teryx, Brora, Country Attire, Hunter Boots, Specsavers, and The White Company. Post period, there were further strong wins including one of the largest global sportswear manufacturers in the world across both EMEA and North American regions. This is the second largest win in the group’s history. H1 revenues together with the exit run-rate (£16.5m) give visibility of 93% of FY’17 revenues." "2.2x EV/Sales 2018 attractive ATTRAQT trades on 2018 multiples of 2.2x EV/sales, 14.4x EV/EBITDA and 23.2x PE. Comparable SaaS companies have average EV/Sales of 3.3x and EV/EBITDA 2018 of 21.7x. With c.85% recurring revenues, organic growth in 2018 of c.17%, a highly operationally geared model, a positive demand environment and a global market opportunity, we believe the shares are good value. Putting ATTRAQT on the average 3.3x 2018 EV/Sales multiple implies a 68p share price."
Lots of new clients signed up too, which bodes well. And of course loads of lovely recurring income at over 80% of turnover from memory. The key statistic today is: "Annualised H1 Exit Rate up 380% to £16.5m (H1 2016: £3.4m)" based on June's numbers. From Richard Holway's respected Techmarketview: Http://www.techmarketview.com/ukhotviews/archive/2017/09/20/attraqt-h1-revenue-jumps-following-fredhopper-deal Conclusion: "As we discussed when we met the ATTRAQT management earlier in the year (see Momentum building at the transformed ATTRAQT), we have been impressed with the ambition of the business and it appears to be sustaining it momentum. The business was added 13 new logos during H1, including some big brands like Arc'teryx, Auchan, Hunter Boots, Specsavers, and The White Company (it now has over 230 clients), and at the start of H2 it signed its second largest logo to date, with an as yet unnamed sportswear manufacturer, and has a strong pipeline for remainder of the year."
Can't see what's not to like. Can anyone else?
Is it there yet?
Https://www.sharesmagazine.co.uk/news/shares/why-attraqt-will-make-its-profits-breakthrough-this-year "Why Attraqt will make its profits breakthrough this year 17 May 2017, 11:57 London-based ATTRAQT (ATQT:AIM) is a small online and mobile display and inventory control technology start-up that is leveraging its Freestyle platform to become a trusted digital partner to many otherwise traditional retailers. Superdry, North Face, Timberland, Vans and Tesco’s F&F fashion brand are customers, among others...... Scale at a stroke ATTRAQT bought Fredhopper in a £25m cash deal in January, a cloud-based provider of onsite search, navigation and visual merchandising solutions to online retailers.....Share dealing resumed on completion of the acquisition on 8 March. In short, integration is now complete across a number of levels from executive team, sales and account management and product development, with the group offering both Fredhopper and Freestyle merchandising products. Interestingly, a new vice-president of sales in North America has also been appointed, spearheading efforts in one of the key markets for international growth. ‘ATTRAQT had done well in the smaller and mid-tier market while Fredhopper had been most successful in larger retail organisations, generally those with their own IT department and infrastructure,’ explains Peter Roe of the TechMarketView website. ‘Whilst the deal with Fredhopper was primarily about creating scale to more effectively exploit the global growth opportunity, the group confirmed the potential for significant cost savings through better management and forward planning of the hosting infrastructure,’ explains Tintin Stormont, analyst at N+1 Singer. Interestingly, Stormont points out that while ATTRAQT has yet to quantify this amount, ‘there is little in our forecasts by way of cost,’ she says. The broker is anticipating maiden full year pre-tax profit from ATTRAQT in 2017 of £1.1m, a big step up from the £1.8m equivalent loss the 12 months to 31 December 2016. Revenues this year are set to go from £3.6m to £14.9m. Sales and pre-tax profits in 2018 are pencilled in at £20.4m and £2.6m respectively. Shopping future is online The internet is fast becoming the destination of choice for shoppers. Online sales across the entire retail sector, excluding food, have been outpacing in-store growth for some time. Online sales grew 18% last year (2016) and have soared by 27% over the past two years, according to figures from BDO, an accountancy firm. Bricks and mortar shop sales fell over both periods. That represents a massive opportunity for ATTRAQT, with its best in class technology demonstrably improving client sales conversion rates, improving repeat business and streamlining benefits behind the scenes. ‘The combination with Fredhopper has transformed ATTRAQT in terms of its scale, financial
Reacting well today to the Telegraph's tip.
September half year report will be interesting after the acquisition. https://www.investegate.co.uk/attraqt-group-plc--atqt-/rns/integration-update-and-vp-appointment-in-n-america/201705170700063068F/
ATQT have been tipped in today's Telegraph as one of 5 stocks which might multibag as "the next Fevertree". Of the 5 stocks mentioned, ATQT being a small cap is the only stock which might actually achieve this aim imo. Bodycote and B&M are already £1 billion+ large caps. SMS is a £540m m/cap which is extremely vulnerable to software and implementation problems and delays in the smart meter rollout. QXT is a quality company, but very illiquid and already on a very high multiple at a £290m m/cap. Here's the tip: <a href='Http://www.telegraph.co.uk/investing/shares/five-stocks-tipped-next-fever-tree1/' target='window'>Http://www.telegraph.co.uk/investing/shares/five-stocks-tipped-next-fever-tree1/</a> "Attraqt This £44m company sells software to online retailers that improves the presentation of websites and offers customers personalised product recommendations. Matt Tonge, co-manager of Liontrust’s UK Smaller Companies fund, said the business offered three particular strengths: “It has intellectual property in the software code, customers increasingly rely on the product and its products are sold on a monthly basis – meaning 90pc of revenues are recurring.” Following a recent acquisition of a competitor, Attraqt is now also “the leading player in the field in a structurally growing market”. Mr Tonge added that, compared with similar companies, the valuation was attractive."
That was my first impression too! The RSI indicates heavily oversold, but the spread is a major negative.
At nearly 15% i expect you right there no way i would invest at such a large spread
IThe feel the spread may cause investors to hesitate about buying.
I thought there may be few comments on this seems placing was 'significantly oversubscribed' but poor take up of open offer. Fredhopper looks decent business that is already making profits.
Can't believe no recent comments here?
Lol
As low as 27.5p last week before Director change. Sound message that has resonated and encouraged some buying but it looks expensive once again. Next set of results will shed more light on the losses. "I am very proud of ATTRAQT's development and growth. The Company has delivered strong financial and operational progress, establishing itself as a leading technology platform for e-retailers in the UK and internationally. As a shareholder, I have complete confidence in the management team and its ability to take this Company through the next stages of its development. It is companies like ATTRAQT that push the boundaries of technology innovation enabling their customers to be more efficient and drive increased sales. ATTRAQT illustrates Britain's tech credentials and reinforces our ability to compete in the global technology marketplace."
Brokers forecasts indicate massive ramp up in overheads, pushes out profitability another 3+ years. Might be worth a punt when the shares have halved.
"The Directors believe that, in order to deliver on the exciting potential of its target markets, significant investment would be required to develop the Company's sales teams in the UK and in North America, with additional investment required to expand the required production capacity to support its potential growth prospects. Although such an investment will represent a major expansion of the Company's sales force; the Board consider this necessary in order to properly capitalise on the opportunities presented to the Group and accelerate growth." SIGNIFICANT INVESTMENT into the sales force likely means increased annual costs also. Every startup needs capital to boost sales and capacity but that doesn't represent investor value return in the short term.
Net asset position vs company added value confirms this also. Current £10m valuation after heavy placing of shares. Net assets have only risen by £2.66m despite a placing of £3.3m gross which came straight out of shareholder equity value. The cash sitting on the balance sheet now won't increase from here. The company have stated "The additional funds will enable us to accelerate our growth in UK, Europe and North America and also allows us to further improve our productive capacity and further invest in our unique Freestyle Merchandising technology platform". I'm not suggesting further placings. But I am suggesting a reducing cash position in the coming year and possibly a reducing net asset position as the company spends cash on expensive platform improvements to scale up. Why would people buy into a loss-making outfit that will see reducing net asset value in the coming year. Expenditure is forecast to rise. Markets are shaky. The global economy more so. Outlook weak in my view.
You posted a loss of £200k so I was highlighting the true picture here, that losses were heavier hence the cashflow breakdown. Like I said " If they had lost £200k as reported then you would expect a cash position nearer to £3.4m but instead it is £3m" So the placing costs and a little extra account for the missing asset value which reinforces the point that losses were significantly more than £200k In other words, that the company only received net £2.97m of the £3.3m raised from the share placing is therefore already factored into the £0.73m loss. Cash burn is a killer, there is no hiding it here
Perhaps you need to do due diligence. £2.97million not £3.3 million net. Like I said though one to watch for the future. The Directors intend that the net proceeds of the Placing receivable by the Company (being approximately £2.97 million net of the expenses of the Placing payable by the Company) will be used to expand the UK and US sales force, increase investment in marketing and PR and expand production capacity. The balance of the net proceeds will be used to increase investment in working capital and capital expenditure.