Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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CRTA share news... quote
Analysts at Stifel said the yearly results showed "some healthy signs of progress".
"Better than expected cash was already announced at the trading update and today revenue is comfortably ahead of our estimate. This is coupled with costs that have reduced further providing continuity with our existing forecasts which we leave unchanged at this time. The company appears to have made meaningful progress, transforming itself into a more professional organisation and maintains its target of reaching run-rate cash flow breakeven in the current year, despite ongoing deal slippage and an understandable second-half weighted bookings expectation," Stifel added.
He is sitting on a big loss with possibly further to fall.
No revenue projections in the annual report but if revenue is 93% of bookings (as last year) management are hoping for revenue at the current exchange rate in the region of £9.5m -£12.8m for 2024 with overhead costs of £18.2m. A market cap of £25m (22p a share) would seem to be generous. Again no mention of the FCA investigation - what will that cost?
The company urgently needs to cut annual costs to below £10m.
JW - good morning.
Not what we were hoping for!
Do you see additional shares being offered at a discount? If that was the case, I wonder what they will pick as the date at which they discount the SP to closing market price because there’s a hell of a difference between last week and this week., even yesterday and today! Dilution is not my favourite word……
Basically costs ahead of cash pile this year
They should raise sooner than later basically… otherwise the shares will be decimated
If he was make an offer, and that’s a big if, it would not be at anything like the level that most investors who have not sold out at a complete annihilation, would accept. You are still looking at pennies per share ….. So with that in mind Pearls, what do you think his offer is going to be because clearly that is what you believe is going to be happening in the very near future?
What would annyone on this bb accept as a reasonable offer?
I suggest we all wait and see what Mr Griffiths does next.
My money is on him increasing his stake. At 45p it's a no brainer, he was previously adding at the 70p+ level.
Ouch
Oculus - exactly right. The current sp isn’t low in relation to earnings or revenue metric.
I think there is a lot of obfuscation between what could be/ may be against the reality of the situation.
Numbers don’t lie and the sales and revenue are dire. Would that it were not so.
Richard Griffiths is not Cirata and I think a lot of wild hopes are being pinned on him riding in on his trusty steed and saving the day.
Have to agree with you Oculusprime.
Am waiting for Monday and hopefully a bargain entry price for my 2024 ISA. The timing should be superb. They are kitchen sinking what went on for 2023 whilst you will note that the 2024 Q1 update is being promised next week.
I am surprised that there's such a massive over-reaction to these results. It's like current investors did not understand what happened in March last year. A proper recovery takes time to form and be established. But their client base looks very good indeed and is growing. Add in that J shaped expectation of growth, and I think in due course this will be seen as a growth stock again later on this year.
They are positioned in an area of very strong demand, it's a question of pulling in the deals now, but there's a great management team now in place.
For me, as mentioned before, the key question now is : what will Richard Griffiths do? We have a large potential predator out there - he now owns over 20% of the shares. I think he will be buying more, soon. Really, yet again, the market is giving away a company's shares on a plate to a potential bidder.
Anyone that tells you they do is lying, I'm now just watching for an indication of consolidation before averaging down a little.
Does anyone have an idea how low this could fall? Interested to buy.
Except the current SP still isn't low relative to any earnings or revenue metric 🤷
"Management is expecting that bookings will be H2 weighted in FY24 as the pipeline builds and the sales team become more proven. The growth trajectory is likely to be non-linear and establishing sales cycle predictability remains a key priority for management."
In other words, expect a J shaped curve for the growth as we start of slowly and build up momentum. So buying in now represents the bottom, as growth progresses over the year, the shares should noticeably appreciate as the market prices in the changing growth of the company. Given the market normally prices in a company's prospects at least six months ahead, I'd say the shares are banging along the bottom now, with a repricing coming from June onwards.
Unless of course Richard Griffiths shows his hand and bids. The price is now so low that he must be tempted......
Fair enough but did they not only have 2 bookings come to fruition last year which could imply between 3 and 4 this year, they need to be big.
Sequential progression on FY23, with 81% bookings growth at the low end and 108% at the high end
They are selling but of course after the scandal they have to rebuild trust with customers
Didn't expect linear but achieving cashflow breakeven would be remarkable given that RNS reads like they have a product they are struggling to sell.
I'm down enough here to sit wait and hope however.
Was never going to be linear but they are confident of reaching cash flow breakeven by yr end
Recovery firmly in play
Cirata is not Richard Griffiths - you seem to conflate the two!
The lack of new business is telling here. Their last update was clear that they needed to see progressed growth, particularly as they heavily touted their new Go To Market strategy. By their own admission, it’s NOT going to plan - growth is slower than anticipated. New business in single digit £m is not going to cut it ….. and if you are really honest, would you not say you expected sales growth to be higher, if not much higher?
Desertsands, the point is that the final results were always going to reflect what a tough year 2023 was for Cirata. These results were going to be the key time to kitchen sink everything - in essence they represent the bottom for the shares, similar to SFOR recently.
Any short term weakness in the shares is likely to be met by Richard Griffiths increasing his stake. I really don’t think he’s going to sell following this update!
Instead I expect further purchases by him especially after next week’s announcement.
Not good at all. Somebody clearly knew yesterday too. We’ll be lucky to stay in the 50’s.
Pearls - words from Kelly are just words. The results show there is no recovery here. Expect the price to head below the 50p mark.
Pearls - these results are just not good enough. Your enthusiasm as yet remains undented but you must see that this is not a good update - the market does not reward trading in line with expectations, let alone slower than anticipated growth.
Mr Kelly announced in 2023 that Cirata would be market leader within 4 years. The climb just got a whole lot steeper
Recovery clearly coming through, presumably now is the time to pounce.
No wonder he’s been building up his stake recently.
Terrible results. Burning a lot of cash.
Why does an org of this size need three CROs?
Good update showing the level of issues that the company faced.
Guidance remains unchanged to become cash flow positive by year end