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.
Https://www.brandshield.com/wp-content/uploads/2021/03/Tennyson-Research-BrandShield-Systems-PLC.pdf
It's worth reading this report which is on the Brandshield Website. They have been pretty accurate with their estimates of ARR and Revenues, and it gives a good perspective on where the company is heading next year.
Taken from the report:
Looking at the peer group of global cybersecurity names, we can see that BrandShield compares favourably in terms of expected top-line growth over the forecast period. Looking specifically at 2023E multiples, the peer group trades at 5.0 times revenues, and the lower growth UK benchmark, Avast, trades at 6.2 times. Using a 5 times reported FY23E revenue
multiple, this gives an enterprise value for BrandShield of £42.8 million, and allows us to set
a 12-month target price of 37p per share.
Barn - what's the saying an out revenue being vanity and profit being sanity. That sort of sums up BRSD.
Yes revenues are growing but the marketing costs are excessive and are still increasing - over £2.5m p.a from £1.8m last year. A silly amount when total revenues are only c£4m, hence the massive losses and the regular fundraises - despite what the BOD have previous said.
Based on current spending i don't think the current placing will be enough to get to breakeven as surely no one will buy via the open offer at over 5p when you can buy in the market today at 3p.
Maybe WeShop will come good, but i've been waiting for a few years on that one.
Hi SP, Full Year Revenues for this year are expected to be $11m, most of their new business being weighted to the 4th quarter, and next year this is expected to increase to $18m, so if marketing and sales costs remain the same, then the company will be in profit in 2024.
Barn - they will not be profitable in 2024 IMHO, although i expect the loss to be massively reduced.
In H1 accounts marketing costs increased form £1.8m to £2.5m - almost a 40% increase.
Why do you think marketing costs will not increase further based on previous numbers?
If the products are so good why are the marketing costs over 50% of total revenues?
This is a bizarre business strategy
Hi ShandyP2,
We'll have to disagree there then, Tennyson have estimated a profit of US$ 5M, and their figures have been pretty accurate so far. With ARR growing about 60% year on year, even if operating costs do increase, it will be at a much slower rate than the increase in Revenue. Brandshield have signed 45 new customers in H1 compared to 53 for the whole of last year, and H2 is historically a stronger period in this regard. All the clues are there....