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The recent RNS states that we can send questions before the AGM to cloudcoco@almapr.co.uk
These are good questions, please keep them coming. It would be nice to have these answered any more at the AGM end of the month. Please keep your questions coming.
When do they expect to be profitable and what are there feelings on Divi payments going forward.
What are the plans to reduce debt -?
As the thread has been a bit boring over the last week I thought I'd try and spark off a new discussion as we await the next upwards SP move.
Does anyone have any questions they would like to raise at the AGM? And maybe post on here so we can all have a say etc.
I'll start with 'What plans are in place to keep shareholders better informed with new contract deals?' Has anyone got any others that come to mind? I'd be interested in your thoughts.
Link courtesy of Ptolemy on AVDFN
https://simplywall.st/stocks/gb/software/aim-clco/cloudcoco-group-shares/news/we-think-cloudcoco-group-lonclco-has-a-fair-chunk-of-debt
1Q has been much better than same as last year. Sales ahead, and Ebitda more than all of last years £261k,in the 4 months of new year. A £15m mcap is 3p,and any whiff of a decent contract and the valuation will reflect that.
Hope you made a profit when you sold but I can't agree with you that we could go back 1p. They're turning this company around and are in a much stronger position than the last time they were at that price.
Sold out myself a couple of days ago. "pre-tax loss of £3.0m" does not suggest a further rise. Back to about 1p is likely here imo.
My penny worth(maybe less): in LSE's IT service sector, there actually not many companies have strong IP. Recent market favourite like Softcat is essentially selling other people's software/hardware too. It's a quite crowded sector, on the other hand there's a big market - plenty of businesses in other sectors need to outsource IT support or part of it. So there's money to be made for well managed/run ones.
I liked what CLCO announced in those very few PR news and took a punt (very small amount) to see if the new management will deliver what they say. Hopefully things like giving stuff shares can improve the morale/altitude/productivity.
I am curious about this stock. It's doing well, and I like all things digital transformation, so I dug deeper into CLCO history, propositions and the employees backgrounds on LinkedIn.
CLCO propositions are straight sell-throughs of big vendors. Looking at the employee's skill set while they provide project management and support, it would appear this is to implement their vendors solutions, I expect in the most part post-sale they will handle relations with inlife support backed off to the vendor. Collectively from their backgrounds, they are predominantly a sales force. There's nothing wrong with the sales force for hire approach, but I will invest knowing they add value beyond end transactions. I am comparing to Loop Up and Pexip, who both ride the ecosystems of the big vendors, but also complement and compete with their own IP.
Give me your perspective, to an extent, I am playing devil's advocate hunting for the upside before I take a position.
CLCO second half covered period April to Sept - there must have been times when business literally ground to a halt, so it is hardly surprising the second half saw a revenue decline.
Far more interesting is what has happened since with more normal business conditions since Autumn and clients starting to have to make decisions on investments into IT to shape their businesses for the future.
They have some of the best sales force in the industry. This company is going places.
To counter the techmarketreview view, CLCO have said that they're only scratching the surface of the potential and they've had a good start to this year... I'm comfortable with that.
Given the turnover, they're doing an outstanding job. They need to keep the news flowing.
One of the challenges that the sp has is the exposure and number of trades - CLCO doesn't seem to be on the radar of many and a small number of trades can shift the sp easily. I suspect that sellers will buy back in - the future looks good.
You have a mention on TechmarketView.
Yes it was an excellent RNS. Trouble is the heid-the-ball Zak Mir followers only feel satisfied when they are ecstatic, anything less than ecstasy is unhappiness and depression (a bit like our North American cousins). As this RNs was only excellent they are now depressed and have to take avoiding action.
It's a positive RNS though, isn't it. The new mgt team have got a grip of the situation and the turnaround is well and truly on. A positive start in the 1st 4 months of the year - I've added this morning on the dip. As a newbie, it's clear that they have to communicate more about their progress and their contract wins and extensions... so if those guys want to exercise their options, the sp needs to be above 2p... I can see that price being achieved very soon.
Same every time, RNS drops and so does the SP
The focus since my appointment has been to address legacy issues in the former Adept4 business through a disciplined 'back to basics' approach, while positioning the business for long-term, sustainable growth. We are still only scratching the surface in terms of uncovering the opportunities available to us, and it will take time for us to realise our ambitions, but nonetheless I am proud of what we have been able to achieve together to date.
Now they can really go for it.
A couple of new contracts and the business will be net profit by year end. Customers delayed signing contracts due to Covid uncertainty, once the pandemic flattens out, more likely contracts will be signed in the year.
Continued progress, with a strong start to FY21 at a sales and Trading Group EBITDA level - management accounts for the first 4 months of FY21 show Trading Group EBITDA already ahead of the £261k achieved in the full 12 months of FY20
Rally has been a bit bumpy up to results to what I would have expected, but hey maybe the mm's have been pulling the price back to load up more shares that they will be flogging for a heck of a lot more very soon. IMHO
Tick Tock
Wouldn't know what the current cash position is? Interims show £270k,but business has been returning to previous trading from couple of years ago. Costs have been slashed and new contracts have been signed with longer time frames. Guess we'll find out in the finals sometime this week? And the more important question of how the new year has been with regards to trading, and Ebitda improvement? If we are cash generative and losses have become net profits? I'm thinking about £9.4m turnover and Ebitda of about £500k for the finals. With losses reduced to £1.6m, £1.57m for interims, £68k ebitda interims. So full year losses should have decreased as ebitda is healthy and costs slashed. Post new year is are we growing sales and how much, and are losses becoming net profits in the post year?