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Started: ragnarlothbrok, 10 May 2019 16:48
Last post: Mrlofer, 12 May 2019 09:25
Can’t believe bod and ii such as herald have backed this low ball offer. The company has just turned profitable and the recent launch delivered £600k of recurring revenue in the first 5 weeks. The share price is just recovering from 7% of the company be8ng dumped by city financial and they have just won a framework contract. I suspect Thomas is being offered some juicy numbers by the acquirer ....thought he was better than this. Sad day for long term investors !
Well thats a nice finish to the week...
I was hoping for 20p in 18 months but 18.25p in the pocket now is not a bad deal
Started: rivaldo, 30 Apr 2019 17:00
Last post: rivaldo, 1 May 2019 08:26
In case anyone isn't aware of David Newlands' track record - it's encouraging to see him investing privately in EUSP to this extent:
Https://www.raeburnplacefoundation.org/team-member/david-newlands
"David Newlands is a chartered accountant who has had an extensive business career. He is currently chairman of HellermannTyton plc and various other private companies. Previously, David was a partner in Deloitte, finance director of GEC plc, chairman of Tomkins plc, Britax International plc, PayPoint plc, Darty plc and Impress Cooperative UA. In Scotland, he was deputy chairman of Standard Life and a director of the Weir Group plc. His philanthropic interests included chairing the trustees for The Royal School for the Blind (SeeAbility). He was educated at the Edinburgh Academy."
Nice - David Newlands has bought 4.1% of EUSP with 2.95m shares:
Https://www.investegate.co.uk/eu-supply-plc--eusp-/rns/holding-s--in-company/201904301540096185X/
Started: rivaldo, 30 Apr 2019 09:21
Last post: ragnarlothbrok, 30 Apr 2019 10:50
It was looking good until those 3 sells knocked the wind out of the next tick up. It really shows how micro caps can be impacted by low levels of liquidity and the necessity to play the long game. Hopefully the AGM statement gives us some more contract wins!
Good to see the price ticking up on relatively small volumes, and the full 13p offer price being paid.
Today's RNS notes the AGM will be on 30th May, so only a month until the next trading statement.
Started: rivaldo, 29 Apr 2019 00:57
Last post: rivaldo, 29 Apr 2019 00:57
Commentary from Richard Holway's respected Techmarketview:
Http://www.techmarketview.com/ukhotviews/archive/2019/04/26/eu-supply-on-the-up
"Friday 26 April 2019
EU Supply on the up
EU Supply, the Swedish-headquartered but AIM listed public sector tender management platform grew revenue grew by 10% to £5.1m (2017: £4.7m) last year. Its SaaS focused strategy is now seeing 70% of revenues of recurring or repeatable nature up from 66% in 2017.
Having achieved its maiden profit in 2017 (see here) management will be pleased to have delivered another profitable year (operating profit of £0.4m for 2018).
EU Supply looks to have benefited from the requirement for mandatory e-tendering provisions at milestones before November 2018 in EU/EEC states. To take advantage of this limited window of opportunity the business raised a further £600k of investment in May last year primarily to further enhance its e-sourcing platform. The platform is now being used by some 8,000 European public sector bodies across 9 Member States."
Started: rivaldo, 26 Apr 2019 08:32
Last post: ragnarlothbrok, 26 Apr 2019 12:05
Rivaldo yes H2 profit was much higher, could the H2 capitalisation partially support this? I suspect it relates to the full year as costs in H2 are around 350k lower than H1 so you may need to apportion the capitalisation across both halves.
But I'm more interested in the cash flow, which it doesn't impact.
Revenue improved by 200k half on half which drops straight to the bottom line, which explains the rest of the H2 improvement.
Financial performance for the last 5 years is very encouraging. The numbers below set out the change in YoY revenue compared to the change in EBIT. In total over 5 years revenue has increased by 3.29m and EBIT by 3.86m.
2018 marks the 5th consecutive year of organic revenue growth and improved EBIT. The company has continued to add revenue while keeping admin costs flat.
2014: 0.72, 1.07
2015: 0.33, 0.70
2016: 0.61, 0.61
2017: 1.08,0.91
2018: 0.55, 0.57
Total: 3.29, 3.86
The really interesting part of today's results is the growth from H1 to H2, masked by the overall results.
EUSP made a £451k PBT in H2, compared to a £91k loss in H1.
Operating profit was up to £600k in H2, compared to just £48k in H1.
If you completely exclude other operating income (grants), operating profit was £442k in H2 compared to just £17k in H1.
I don't remember EUSP saying there's any particular seasonality to the business (happy to be corrected).
Annualised, the H2 results would equate to a £0.9m PBT this year, without any growth at all (or a £600k PBT this year excluding any grant income).
With around £1m cash in the bank and high recurring income, and compared to many companies on m/caps of £50m-£100m or more which still dream of making a profit, an £8m m/cap looks pretty good value to me.
Agreed ragnarlothbrok. Quite apart from the maiden profitability, cash pile and high recurring revenues, it's the very confident outlook commentary driven by regulation which is so striking for a mere £8m m/cap:
"David Cutler, Chairman of EU Supply, commented:
"A profitable platform for growth was achieved in 2018.
Our highest ever rate of increase in annual recurring revenue run rate has been secured already in 2019 with annualised values of contracts in aggregate of approximately £620k being signed this year, and this without any higher staffing levels. We anticipate continued growth in annual recurring revenue during the coming months which gives us confidence in further profitable growth beyond 2019.
The Board is also confident of securing further revenue from both other existing contracts and new markets."
"Outlook
During 2019, the Group will continue to build its base of SaaS revenues in order to continue to grow its recurring revenue base. The Group also has a strong order book and pipeline from paid-for enhancements, which will complement the SaaS revenues during 2019 and further strengthen the competitiveness of the Group's CTM™ platform.
In 2019, the Group anticipates further increased activity by public sector organisations which do not currently have an e-Procurement solution meeting the new requirements, or which work via consultants and advisors having solutions to address their needs above the EU thresholds, but which may not yet have any solutions to address their needs for lower value contracts and requests. With our CTM™ platform, we are well positioned to gain market share in the countries where we are active.
Growth in Business Alert services and other supplier side services is expected to pick up in 2019, particularly in Norway, Denmark and Sweden with added sales resources in this area. In Germany, we look forward to improved results from our additional reseller approach which was adopted in 2018. New opportunities are also being developed in other EU/EEA markets where the Group is well positioned with its own sales and/or sales via distributors.
Additional mandatory requirements in the EU public sector have led to additional software functionality being demanded by our customers which provided project implementation revenues in 2018. The future recurring revenues from these completed contracts should provide a sound foundation for the continued growth of the Group.
Recurring revenues are growing to date in line with the Board's objective of increasing the proportion of SaaS revenue with fewer one off projects. The Board looks forward to continued profitability in 2019 based on stable organic growth leading to the potential for accelerating revenue in 2020 and beyond."
Smells like a 2019 upgrade doesn't it Rivaldo? I was expecting a 700k increase in 2019 revenue v 2018, which they seem to have already achieved in Q1.
This comment is the most interesting for me, it seems like they have a pretty solid pipeline of new business:
"We anticipate continued growth in annual recurring revenue during the coming months which gives us confidence in further profitable growth beyond 2019"
On first read the results are very good and the outlook even better.
A £7m m/cap for a company with a maiden £0.4m PBT, with more pretty odds-on this year plus very high recurring income, seems somewhat bizarre.
And cash must be well over £1m now judging by the significant receipts this year.
You could quibble that this year (unusually) £0.3m of R&D was capitalised, but this is perfectly legitimate, or that small grants are included in other income, which is also fine.
But this is obviously a company on the rise which has a chance of very serious share price gains from this very low base imho.
My target short term is 25p - - - but DYOR
Started: petertee, 26 Apr 2019 11:09
Last post: petertee, 26 Apr 2019 11:09
Positive cash flow in Q1 confirms the strengthening working capital position of the Company
• Exceptionally strong growth is currently being experienced in recurring revenue, with annual recurring revenue run rate estimated to be up approximately £620k, representing a 17% increase in the year to date, leading to a substantially increased proportion of SaaS revenues in 2019 and beyond
Last post: Dodger777, 26 Apr 2019 09:15
Pleased with the results, all looking very positive.
A share off the radar of many but I’m very excited to be in at the beginning of this :) ( makes a change for me ! )
Started: ragnarlothbrok, 26 Apr 2019 08:56
Last post: ragnarlothbrok, 26 Apr 2019 08:56
Impressive increase in recurring revenue in 2019. It demonstrates the exact reason why I took a position here, which is the scalability of the platform leading to strong operational leverage. They have added revenue with no headcount which means a huge part of this revenue falls straight to profit. The current market situation seems to be converging favourably with recent news flow all very positive. Always hard to say what the short term market reaction will be but I'm pleased with today's announcement. GLA
Started: rivaldo, 18 Apr 2019 12:47
Last post: Dodger777, 25 Apr 2019 19:33
Final results released tomorrow.
Hopefully all in order and a positive indication the company is moving forward and it starts getting reflected in the share price :)
The series of upwards moves hopefully suggests that City Financial's stock is largely or completely cleared.
Started: rivaldo, 18 Apr 2019 08:20
Last post: rivaldo, 18 Apr 2019 08:20
Jonas Lundstrom from EUSP's Swedish homeland continues to buy - he's bought another 830,000 shares since his last RNS, and now owns 3m shares, or 4.18%:
Https://uk.advfn.com/stock-market/london/eu-supply-EUSP/share-news/EU-Supply-PLC-Holdings-in-Company/79723046
Started: rivaldo, 17 Apr 2019 15:02
Last post: rivaldo, 17 Apr 2019 15:02
I came across this excellent series of articles analysing EUSP from a holder of the stock - although they're a year old they shed a lot of light on the company and are well worth reading:
Http://wheeliedealer.weebly.com/educational-blogs/eu-supply-eusp-buy-rationale-part-1-of-2
Http://wheeliedealer.weebly.com/educational-blogs/eu-supply-eusp-buy-rationale-part-2-of-2
Http://wheeliedealer.weebly.com/educational-blogs/eu-supply-eusp-response-to-comments-from-andrew-latto
Started: rivaldo, 16 Apr 2019 09:57
Last post: rivaldo, 16 Apr 2019 09:57
Good to see a quality investor like MG saying on Sunday he's taken a position in EUSP representing 4.1% of his portfolio:
Https://twitter.com/MGinvestor/status/1117404509679046656
"6/n EUSP (4.1%) -Rebought end March 2019 up 0%. Feel the price at this level offers good risk/reward. For £6.7m mcap you have: possible inflection point? Profitable, sticky rev has been growing consistently 70% recurring, part of framework agreements. CEO founder holds sig amount"
Started: rivaldo, 11 Apr 2019 14:31
Last post: rivaldo, 15 Apr 2019 12:25
Ticking up today on a healthy 360,000 shares traded. Hopefully the City Financial overhang is cleared or nearly cleared.
The final results on 26th April should provide a healthy boost to sentiment and the share price given all the info we have.
Dodger777, I think your timing will prove to be very good indeed :o))
FYI, following the framework agreement award Stockdale Securities reiterated their Buy and 25p target.
They forecast 0.7p EPS this year and 1.2p EPS next year, and said:
"EU Supply (EUSP) has announced that it expects to release its FY2018 final results on 26 April 2019. It has also reiterated that it expects to report a maiden adj. PBT of £0.4m, as disclosed in the trading update on 8 February 2019. As such the share price fall due to the movement of a significant stake yesterday presents an excellent buying opportunity, in our view. We are encouraged that the development of the company’s supplier side services is proceeding to plan as these should increase recurring revenues in due course."
Last post: Dodger777, 15 Apr 2019 11:46
Taken a few of these today. Let’s see if I’ve bought at the right time for a change :)
Started: rivaldo, 3 Apr 2019 14:41
Last post: ragnarlothbrok, 4 Apr 2019 14:16
Eish that was based on a dummy trade - at one point it was a clear 2p.
A lot of words in there like 'may' and 'potential' but I get your point, an opportunity like this is better than no opportunity.
Fortunately this opportunity will be easy to assess given the UK discloses its revenue separately. UK revenue has been absolutely flat for the last 3 years at 0.85/0.88/0.86 so this should help push it upwards.
Ragnarlothbrok, forget the published spread as it's misleading, you can almost always buy (and sell) well within the spread - just do some dummy trades online to get the true position.
This is particularly true at present whilst the party who took on the City Financial stake at 8.5p rolls them out at a small profit. Given yesterday's news and the upcoming maiden profitable results, this shouldn't take long hopefully.
Yesterday's framework agreement news is obviously non-specific in revenue terms for EUSP directly. But given the £20m value over the next four years, and impact at all for this microcap is likely to be highly material, and that's what the CEO's comment was meant to put across:
"We are pleased to announce the signing of this significant framework agreement following a competitive tender process, in which we achieved a very high score for our proposal. This may lead to substantial business growth across the UK in 2019 and beyond. We also see substantial value added possibilities with new modules and sub-modules, including for micro-procurement, being developed, adding potential further recurring revenue for the Company."
I picked up a few of these on the recent City Financial drop, after having my eye on this for a while. I would like a few more but the spread is 20%. I think I'll wait until it settles down.
I don't think we are sure what is the revenue implication of the news today if any? I think they are saying it could be nothing but they seem hopeful that it's good news over the medium term.
Impressive news just out - no wonder the share price has surged from the recent artificial lows:
Https://uk.advfn.com/stock-market/london/eu-supply-EUSP/share-news/EU-Supply-PLC-Framework-Agreement/79619491
Conclusion:
"We are pleased to announce the signing of this significant framework agreement following a competitive tender process, in which we achieved a very high score for our proposal. This may lead to substantial business growth across the UK in 2019 and beyond. We also see substantial value added possibilities with new modules and sub-modules, including for micro-procurement, being developed, adding potential further recurring revenue for the Company."
Started: ragnarlothbrok, 3 Apr 2019 23:17
Last post: ragnarlothbrok, 3 Apr 2019 23:17
In hindsight the announcement today was pretty watery, the revenue opportunity isn't clear at all as they have just been granted access to a panel. Probably fair that the SP ended up back where we started. i hope those who bought into the spike today have a long term outlook. The spread is nuts. I know its a micro cap but 20% is outrageous considering the free float is pretty reasonable.
Started: rivaldo, 28 Mar 2019 07:16
Last post: rivaldo, 28 Mar 2019 07:16
Good to see EUSP reiterating their maiden £0.4m PBT and confirming everything else is going to plan, despite City Financial's forced share sales yesterday which caused the share price to slide for no good reason.
Results will be out on 26th April. City Financial's woes have created a buying opportunity imho:
Https://www.investegate.co.uk/eu-supply-plc--eusp-/rns/notice-of-results-and-share-price-movement/201903280700242481U/
Started: rivaldo, 18 Mar 2019 07:19
Last post: rivaldo, 18 Mar 2019 07:19
Presumably small in financial terms as an RNSNON, but good to see a maiden contract win in the O&G sector - with the promise of "considerable additional business" to come:
Https://www.investegate.co.uk/eu-supply-plc--eusp-/rns/contract-win/201903180700070820T/
"We are pleased to announce the signing of this maiden agreement in the oil and gas sector. It is a sector with significant needs in both qualification, tendering, contract management and risk management. We believe this first inroad in the oil and gas sector may lead to considerable additional business in the next three years."
Started: rivaldo, 8 Mar 2019 09:58
Last post: rivaldo, 8 Mar 2019 09:58
Good to see more contract wins whilst I was on hols, particularly with new clients in both Denmark and Germany - and the involvement with the huge Femern Tunnel.
EUSP are so far off the radar I noticed that ADVFN's Monitor didn't even pick up the 5th March contract as a news item! So some may have completely missed it.
Not long to next month's results and a maiden £0.4m profit and around £1m net cash.
Started: rivaldo, 12 Feb 2019 09:37
Last post: rivaldo, 13 Feb 2019 08:53
From Stockdale's new note FYI:
"Maiden PBT for FY2018 above expectations
In its FY2018 trading update, EU Supply (EUSP) has announced that it expects to report adj. PBT of £0.4m vs the SSL forecast of £0.1m and a loss before tax of £0.2m in FY2017. The anticipated revenue of £5.1m was slightly below our £5.4m forecast and was up c.10% on the £4.7m reported for FY2017. Importantly, the recurring/repeat proportion of revenue was maintained at c.70%. The investment in the micro procurement solution is likely to increase recurring sales in due course. We retain our 25p DCF-derived TP and Buy rating.
FY2018 was a watershed year for EUSP as it is going to report its maiden PBT of £0.4m. Part of the reason for the overshoot was that there was £0.3m of capitalised development vs our forecast of £0.1m. However, even allowing for this the adj. PBT was still around double our forecast. This was despite revenues of £5.1m coming in below our £5.4m forecast. We are encouraged that the percentage of recurring/repeat revenue was increased to c.70% in FY2018 vs 66% in FY2017.
We highlighted both at the time of the fundraising in May 2018 and with the interim results in September 2018 that the micro procurement solution would not deliver any meaningful revenues until FY2020. As a consequence of maintaining our core revenue growth rate forecasts on the lower FY2018 sales base, we have reduced our sales forecasts to £5.6m (£6.0m) and £6.7m (£7.7m) for FY2019E and FY2020E respectively. However, partly because more of the additional development costs are being capitalised, we have increased our adj. PBT forecast for FY2019E to £0.5m (£0.1m) and only edged back the FY2020E forecast to £1.1m (£1.4m). As the vast majority of the micro procurement sales will be recurring, in our view, the quality of revenues will improve further in due course.
We have argued consistently over the last 24-30 months that EUSP’s share price should improve as there is greater confidence in its ability to become sustainably profitable. With the move into adj. PBT profitability confirmed today, we believe that this is now the case, yet the share price has underperformed the market over the last 12 months. Even with the tweaks to our FY2019 and FY2020 forecasts, we are happy to maintain our conservative DCF-derived target price of 25p and our Buy rating."
Stockdale have also now issued a new Buy note. They have a 25p target, and have raised their forecasts to 0.7p EPS this year and 1.2p EPS next year.
Started: rivaldo, 8 Feb 2019 07:22
Last post: rivaldo, 11 Feb 2019 12:10
New analyst report out - upgraded this year's forecast to £0.5m PBT and a closing £1.1m cash (£0.8m net of debt). Not bad for a £7.7m m/cap company:
Https://www.progressive-research.com/research/
Summary:
"Profitable and scalable platform for growth
First annual pre-tax profit, for FY2018
In today’s trading update, EU Supply (“EUS”), the e-procurement software provider, has indicated that it expects to report its first annual pre-tax profit, for recently ended FY2018. We forecast continuing growth in FY2019, with potential for EUS to benefit medium term from its investment in developing new services and its scalable SaaS business model
? Continuing growth EUS has advised that FY2018 revenue grew by 10% to approx £5.1m, of which approx 70% (FY2017: 66%) is expected to be of recurring or repeating nature. Final results for FY2018 are subject to audit and are expected to be released in April 2019.
? First annual pre-tax profit Importantly, EUS expects to report its first annual profit before tax, expected to be £0.4m profit compared to a £0.2m loss FY2017. In the latter part of FY2018, EUS capitalised £0.3m(FY2017: nil) in IT development costs (net of amortisation) as required under IFRS.
? Recurring revenues in new services During H2 FY2018, EUS developed new modules and services for buyers and suppliers to support growing recurring revenue in the medium term. Development of its micro procurement solution (to assist with low value or short-term procurement) is progressing in line with plan, to further aid recurring revenue growth.
? Improved forecast profits With EUS indicating FY2018 revenues slightly behind our previous forecasts, we have reduced FY2018 and FY2019 revenues forecasts to £5.1m (was £5.4m) and £5.6m (was £6m). Following the indication from EUS of clear profitability in FY2018 above our previous forecasts, we have increased our forecast PBT to £0.4m for FY2018 (was nil), in line with today’s trading update, and to £0.5m for FY2019 (was nil).
Having focussed in 2016 and 2017 on moving towards and now achieving its target of profitability and in 2018 on developing additional services for recurring revenues, EUS is well placed to focus on adding sales to its profitable platform to deliver its growth plan. With its software-as-a service model, EUS has potential to benefit from operating leverage with growth."
Excellent - 2018 will be the first profitable year for EUSP.
And £0.4m PBT is "materially above market expectations", which were just £0.1m.
Recurring revenues are up to 70%.
And EUSP have almost £1m net cash to play with - against a £7.7m m/cap.
Things are going very smoothly here.
Started: rivaldo, 13 Dec 2018 11:31
Last post: rivaldo, 13 Dec 2018 11:31
RNS - EUSP have a new 3% holder, with the Swedish Jonas Ljungström & Seglatsen Consulting buying 2.17m shares:
Https://www.investegate.co.uk/eu-supply-plc--eusp-/rns/holding-s--in-company/201812121111172699K/
Good to see buying interest from EUSP's homeland.
Started: rivaldo, 5 Dec 2018 08:46
Last post: rivaldo, 5 Dec 2018 08:46
Another (RNSNON) contract win. But again this is meatier at €200k. Hopefully EUSP are now eschewing the tiny €50k wins they used to announce.
Alongside being for a decent amount, this is high recurring income too and benefits the next 12 months:
Https://www.investegate.co.uk/eu-supply-plc--eusp-/rns/contract-wins/201812050700044390J/
Started: rivaldo, 30 Nov 2018 09:33
Last post: rivaldo, 30 Nov 2018 09:33
Another day, another (RNSNON) contract win....this one seems more meaty though, being governmental, covering a range of sectors, a welcome SaaS long-term win - and taking business from the competition:
Https://www.investegate.co.uk/eu-supply-plc--eusp-/rns/contract-win/201811300800039790I/
"Contract Win
EU Supply (LSE AIM: EUSP), the e-procurement software provider, is pleased to announce that the Company's position in Denmark has been further strengthened following a new contract signed with the Danish Government, covering multiple sectors, including a new contract for the licensing and support of CTMTM with the Danish Ministry of Taxation, including its 10 agency procurement departments, of which 3 were previous licensees of competitors' solutions. The new contract is for the delivery of CTMTM as SaaS and related services and runs for a period of 2 years with the option to extend by up to a further 2 years."