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Yes totally agree Marty4212. Also a very healthy cash balance too.
After yesterday's contract extension this is derisked anyhow so should build nicely.. What I like is the lack of confetti dilutions here. For a ten year old company with 42 mil in issue in a rapidly expanding market what's not to like
we got some yesterday... very well timed RNS before the expected trading update Imo. Giving that a couple of trading days and the weekend to get digested then drop the trading update next week is smart Imo.
Week. Hopefully Monday
exactly... the bonus contract RNS hints at the kind of exponential growth that is going on here and in this sector in general. Trading update should further underline that growth and the market should take note on news.... next week? Hope so.
Yesterday's bonus news has teed this up nicely for the update that's due ... tight as a banjo string
Yes it sure is mate. Also only 4 trades made this rise 4% with one of those buys very small.
Ha ha it's a quiet day when 4% up gets you on the riser charts...still.. all good
Yes please. And we know how much this can move with any real volume.
Nice and steady hold or rise into update now ... gla
Yes hold and top up is my way of thinking. More funds coming my way next Friday and will be buying more for sure. I think the imminent trading update will hold a few surprises too. My thinking is that we will see the other top 10 clients also increasing their amount of transactions with Mi-Pay too. Look through M-Pay's twitter account. The clues are there. Once the market cottons on to this, we will then have lift off.
I would reiterate those calcs are very convincing Tom thanks ... hold
You are obviously well read in this field Tom. Great post mate.
In terms of transaction value growth, we know 2016 had an increase of 26% compared to 2015. Our largest client in 2016 contributed to 22% of revenue. So transaction value wise they were doing about £18.4 million. I am assuming this client is the same client from the RNS yesterday with transaction value of €100 million per annum (£90 million). 2016 this client made £18.4 million worth of transactions and this year a £90 million contract. You can see that this percentage increase is far higher than the 26% figure I used in my calculations. Put it this way, I am not selling at 50p. What I love about this industry is that growth can happen very rapidly indeed. We are not a restaurant chain having to lease more premises, train up more staff, advertise etc to grow our business. Nor are we a mining company or in oil and gas with new drilling programs/spuds to develop things taking up considerable time and money. A lot of our growth will come from our top 10 clients with them taking up more services we offer and increasing transactions. To provide this extra service is pretty much the sky is the limit and we can facilitate this growth relatively easily. We do have other competitors, notably in USA but our biggest competitor really is companies trying to insource this type of work. Whilst they have their own teams to try and accomplish these goals, they simply don't have the expertise we have in this field. The time and considerable cost they would need to get to our level is no worth it. I.e. Would be cheaper to pay us to do it. We can guarantee clients a payment success rates of 88% compared to an industry average of 80% (going down to 60% in some cases). Why insource this work when you can get Mi-Pay to do the work and make more for your company? On the fraud side of things we have improved this a great deal too, 'Replacing a 3rd party solution with our own in-house solution, which in turn has delivered a further 33% year-on-year decrease in fraud levels to 0.06% (2015: 0.09%)' this has helped us increase profit margins with less money being paid for fraudulent transactions. DYOR.
That's a very detailed and encouraging post Tom! Very informative -thanks.
These are the calculations I have based my investment in Mi-Pay on. I am invested here, as is my sister and father. Please do your own research. These figures are not meant as a guide for you to buy more shares or not. From the Final Results earlier in the year we know, '£83.4 million of payment transaction value processed' in 2016. From yesterday's RNS we know that from this one new contract Mi-Pay will process €100 million per annum (£90 million). From the Final Results of 2016 it stated, '80% of our top 10 clients increased their payment transaction value processed.' This is comparing 2016 to 2015. 'Our largest client has grown to 22% of our revenue. Our 10 largest clients equate to 84% of our revenues.' I am assuming that the new 3 year contract is from our largest client (22% of previous 2016 revenue). Calculations: £83.4 million (total value transactions 2016) - largest client (22%) = £65 million worth of payment transactions from the other 9 top 10 clients. 'In 2016 we delivered a 29% increase in payment transaction value processed.' Therefore for 2017 we should at the very least see a similar rate of growth (personally I think the rate of growth this year will be much higher but let's keep it at + 29% to discount things). Therefore £65 million x 1.29 = £84 million processed transaction value for 9 of the top 10 clients. £84 million + £90 million (new contract yesterday from largest client) = £174 million payment transaction value processed per annum. We are looking at around 4% profit on each transaction.However to discount things let's say 3%. 3% of £174 million is just under £5.22 million revenue. Administration costs have been reduced to £2.5 million per annum. I don't expect they costs to reduce much further in 2017. Possibly some leeway on this. For Fin-Tech companies, Hybridan in 2016 stated that Mi-Pay trading at four times sales, 'is not particularly stretched when compared to other AIM Fin-tech companies without earnings' £5.22 million x 4 = £20.8 million 41.593 million shares in issue = 50.02p per share (discounted) I am not saying this will get to 50p on next results as there often is a lag, but this is what I am basing my investment on and what I think we should be worth this year. What the market thinks is more important however. Please note: 1) This assumes that 2017 will have have growth of 29% as 2016 did. However I think this growth will be higher. 2) These calculations are only for the top 10 clients. These account for 84% of total revenues so there are also other revenue streams that haven't been accounted for in my calculations. This will become even more prevalent with time as the South East Asian operations come in to play more. Please do your own research.
Thanks can't wait.! Looks like it will do a Big Spike.! GLA :)
Anytime soon I believe.
When is it due? GLA :)
What would you guys think a fair SP is if the next trading update is as good as expected?
With a long term existing client ... "During the life of the contract it is expected that per annum transaction value processed will increase to over €100 million" ... "This is expected to secure existing revenues and drive material growth in payment transaction value processed from the €25 million processed in 2016."
We had a taster of things to come with the lovey bit of news today. That contract is just from one client. Turn a profit this year and things are looking very positive indeed. Market cap at moment really is a joke.
Was a delayed buy from earlier. The fact that the market makers are delaying a £1,000 buy shows how little stock they have here. Could see that from yesterday's rise from not much volume.
Spot on Matador 78! Just touched 20p on a buy.:)
Results due any time now. might have a surge to finish the day off.