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Thanks for sharing Bazzaman.. IC are well researched and respected so there posting reinforces my belief in this company’s ability to grow and deliver .
Update from Simon at IC
https://www.investorschronicle.co.uk/ideas/2024/04/29/back-brave-bison-s-influential-social-media-business/
GLA
Well, they have stated that like for like performance for Q1 is ahead of prior year, so they will be looking for a beat, but have been cautious in their outlook which is fair enough. Most marketing companies are struggling at the moment so they are still doing very well. If they manage to meet y24 expectations - which are conservative imo - and have increased net cash to "in excess" of 9m as suggested, that will be a third of the market cap in cash. That makes the business very cheap and could lead to a series of acquisitions, dividend, or buy-backs to bolster SP. Plenty of upside here.
Not sure what happened to my second point below!.. gone AWOL.
Point I was making is that the reported market expectation for FY24, is not very stella. Slight increase in revenue, and lower Adj EBITDA than that achieved in FY '23. PIs are invested on the back of a growth story, and with a target of £4m of new business for this year, the market expectations need to be raised. We should be looking for 15% to 20% growth per annum, else the SP will hit the doldrums.
Another good year of acquisition integration, New customer wins, whilst meeting expectations with financial results.
I am a supporter / believer, and have used the opportunity to add this morning.
Two points come to mind though;
1) The results are bang in line with the Trading update issued on Jan 22nd. Back in the day, when I lead a similar sized business, (not Public), I always strived to deliver results 3 - 5% better than my last update.... It kept my investor community positive. Doing exactly what they say they are going to do, is better than a "Miss", but it is always good to hold back a little upside. What happens between a Management Trading Update, and the Final results?... The Auditors come in. I hope that they haven't reversed an item, and as a consequence, taken a shine off what might have been a TU beating result. At this stage in the development of the business, the Management Team can not afford to deliver a Miss.
2) They are highlighting that FY24 results will be ahead of market expectations. But the numbers suggest that this is
A new note from Cavendish sees Brave Bison (LON:BBSN) valuation as "compelling" and notes the "high quality revenue" and 24% CAGR since 2021. (thanks to Mark Tughan commenting on Stockopedia for this)
Yes, you can never second guess how the market will perceive news and then act on it. Great set of results here, no unwanted surprises, and strong outlook. What motivates a trader to sell on that news is strange as they certainly lost money rather than selling last Friday when they would have to have been holding already. And, for long terms holders that have sold out, all I can assume it that they were hoping for even more and that the recent trading update had lowball figures which was optimistic. Suspect we will see a speedy recover here either today or if not over the next few weeks.
I wouldn't worry Phil - There will always be traders who sell on news- you are correct the interims read well - even if you look at 5 year progress - if you invested in the growth story , you will be fine, forget aim short term movements. The share price is 46% up in 6 months or 22% over 5 years. You will be rewarded just hold or buy on the dips
So.... great results... and the sp goes down???
Well done team BBSN
"Net cash of £6.8m, an increase of £2.5m from 30 June 2023 (H1 23: £4.3m) and an increase of £0.6m year-on-year (FY22: £6.2m), with one acquisition made in the period. Revolving credit facility of £3.0m remains undrawn, providing further liquidity if required."
"Market expectations for FY24 are to deliver net revenue of £21.0m and Adj. EBITDA of £4.2m. Net cash is expected to be in excess of £9m at year end."