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Talks with the unions didn't last long. Like any strike action the longer it lasts and the public are directly affected, support for the workers will dwindle. With regard to what Cordel are offering in terms of railway safety, how can any party oppose that? And that includes the Labour Party. Wage negotiations are one thing but the Government and all politicians have a duty to ensure that the travelling public are protected from any unnecessary harm. By insisting on the deployment of new proven technology when it becomes available.
Very good news, this will push revenues higher in 2023. Could even mean that Cordel might be absorbed by Ricardo eventually. Add in the news that railway union leaders might be prepared to talk on improving working practices, which must surely involve line inspections, in return for more money. Am quite happy holding this stock.
Another partnership to keep things chugging along and improving the outlook.
Its interesting that we are still awaiting the funding announcement! Today's RNS does not tell us a great deal that we did not already know from previous RNS regarding D/Gauge. Did I not comment about who owned 'what' IPR in this arrangement.
To be clear, I recognise the progress being made especially regarding pilots, contracts etc. However, I do not find it acceptable that we have continual smoke and mirrors as regards to the financials around these 'deals' and the current position as regards to cash burn etc. Perhaps we have truly reached 'product market fit' where the company can grow on top of client renewals but I doubt it as its a little to early in the product life cycle I suspect. Who knows? Is the company now generating cash?
Great to read that they seem to be developing interesting solutions and developing partnerships. Ideally leads to a few more sales.
I am still waiting for the annual accounts to be posted on the website or at CH. Obviously going to be later than PY. Must say, I am surprised no fund raise has yet been announced. The actual cash at YE was very low, so it must be incredibly tight right now. An announcement must be due very soon. Perhaps the Chair will provide some short term loan facility. It would make sense given the forecast growth rate published on their website :)
Big buys into the close. Must be capturing the imagination of people.
If they own rights to use the digital twin to further train their AI, this also could be very valuable.
Agreed though, we need more transparency. Now is not the time for smoke and mirrors and investors need tangible detail.
I agree it is somewhat opaque and frustrating. It seems to be both hardware and software but the fact it can now run on your everyday trains to provide a current digital twin sounds an interesting development. It's what they can do with the twin to maintain the infrastructure at lower cost that can maybe build some momentum and get the stock moving.
The good news is that Cordel has secured a place on a Framework Agreement and then signed a 12 mth Pilot project within this Framework. All good. However, again we have no idea of the value of this pilot (just like all the others) or any announcement that one of the other pilots has progressed to a genuine multi year service contract. Lack of visibility continues - the raise must be very soon! Still no idea how much of a software play this company is, the more I look the more it appears a hardware play. Anyone else have a view?
More detail would be helpful and it is fairly slow newsflow on contracts. Results due soon I guess which should give more concrete numbers. It overshot to the upside for sure and is now reverting to the mean.
"We are proud of the continuing evolution of our platform and its expanding application to multiple areas of major railway operations. Automation is a key theme throughout the global rail industry and Cordel is steadily acquiring new customers due to our proven LiDAR Sensors and Artificial Intelligence technology."
No values are given, which is not a surprise. Why I wonder when the share price needs to be supported? The Chairs quote above is interesting, 'steadily acquiring new customers' but turnover has been falling as far a public records show. Does that mean customer churn is high, contract values are falling or the order backlog is increasing and turnover will increase significantly this year. Wonderfully ambiguous, they really need to change the Chair.
For all we know this latest contract could be worth five quid.
Hence why the market is skeptical.
The company will certainly not be happy with a share price approaching 1p status. It restricts a number of financing options.
It is a closely held company thanks to the reverse takeover of one of the Chairs investments following the 'FinTech' float that was an absolute disaster. The Chair & NED (from float) remind me of Boris & Trump. Not falling on their swords with honour :)
So, a number of years in - the minority shareholders still have absolutely no idea of the success of this ground breaking solution. I suspect that the base 'Drone' business still provides a significant proportion of the revenues (maybe even a majority). Why are the financial details still hidden?
Anyhow, they need a raise soon. Interest rates rising, tech multiples falling for all but the fastest growing. If Cordel genuinely have a solution that is close to 'Product Mkt Fit' ie client renewals and Nick believes he has a credible team or is close, then maybe PE investment could be possible. Otherwise, the Chair will go down the usual road. Tap up small company funds (the crap ones with lazy managers) which do not threaten any of the present board positions. It's very interesting.
Hi Phermic,
As much as it pains me to say, I think you called this one early on.
I've de-risked somewhat here, albeit at a loss.
Company is coming across as being happy for the SP to drop. Makes you wonder why?
IMHO DYOR etc.
Following the usual bland contract award statement from our secretive chair and the continuing fall in tech valuations, I suspect that Cordel are looking at a raise imminently. Given the poor historic guidance and continuing absence of any useful trading statements (ie incl. Financials) I would expect a placing or open offer to be announced.
Have just pulled the statement off the website. Basically, all countries have shown decline in revenue excl. USA where there is really no revenues at all for reasonable comparison. No sign anywhere of any recurring revenues (No Def. Inc balances for example). They really need to be cash positive now in Q4. My guess is that a raise is just around the corner. Amazing that investors value this company at more than 10x current revenues. It could only happen on AIM :)
Seems to have run into the buffers after all.
Too quiet.
Something hopefully brewing in the pipeline
Posting this on my mobile while on the tube so forgive any typos etc. Guys please try not to paraphrase too much. I would not have said ‘nothing to sell’ but could have said ‘ not unique’. The company are not reporting any significant revenues from rail at present. They may in the future? In fact the numbers reported are very tiny given they have had a number of pilots in play for some time. I have seen lots of startup tech companies and invested in a number. These have all been off market. I have invested in one tech SAAS startup recently that in less than 6 mths has booked over a £1m of revs including 3/4 million ARR. into the public sector. As you can imagine we are busy recruiting etc. 4 of us are funding this personally. The reason I mention this is just to give some background. I love tech startups. CRDL has promise and I am watching carefully. Just don’t think the board structure is correct.
Hi Phermic,
With all due respect I don't believe you have been accurate with your assesments. Your main one being "they have nothing to sell, no unique product that sets them apart" or some such, I paraphrase.
And yet the company is consistently selling to rail giants who repurchase at higher values.
Clearly the industry sees the value.
Granted I enjoy reading your posts as it's good to read the negative sides too. I agree, more transparency in financial statements would be welcome.
More contracts are more or less guaranteed IMO, given the large wins they've already have.
Maybe not this year but by end of next year I'd imagine the books will look a lot healthier. iMO
My assessment is that there is a big opportunity to provide low cost services in a big industry. however the industry is really slow to make decisions and the sales are correspondingly slow. This puts pressure on cash and then share price. I’m comfortable with my investment and will continue to run. It’s only a couple of percent of my portfolio so either gives a little boost if it manages to turn or no great shakes if not. I can assure you that I have no inside knowledge just an interest in companies with ML/AI offerings since I got interested in the technology a few years ago.
Actually, don’t give an assessment if you have inside information.
Happy to increase my holding at this level, looks like sp dropped to 3yr MA, company has transformed over that period with coming July being 3 years since my initial stake.
Not been impressed with govt rail policy decisions recently northern PH and HS2 reductions, upping speed via electrification on disproportionately improved infrastructure likely to create 'events' and increase significance in all ways.
Speed and energy being non linear and all that (mv sq), start for scratch slower harder costs more but safer long run, imo.
CRDL doing its bit to negate.
AIMO ATB