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Dab808 Posts: 151 Price: 53.50 Strong Buy
RE: Excellent Medium Term Multibagger Potential
"... I can't see anything below £20m being considered given the shareholder structure and I could see the PE firm offering the incentive to retain some investment if the existing shareholders want to roll again."
Dab,
If a private equity acquirer wishes to give NWT shareholders the option to retain some/all of their investment, even at a market cap. of say c. £20M., then I think that many shareholders would wish to do so.
After all, where else are you going to invest the money?
Look around in the stock market at the moment, and you will see how little there is that is really attractive in the current challenging environment, considering both business outlook and valuation.
Great growth stocks don't grow on trees, and investors may be fortunate if they get even a couple of NWT-like opportunities in a lifetime.
A £20M. market cap. could eventually become £200M., so if shareholders have the opportunity to take out their initial investment, plus a healthy profit, and run the rest for more than free, then I for one would be very tempted to retain at least half my initial shareholding.
Dab,
There are clearly different strategic sale-investment options here:-
• Complete takeover of NWT.
• Takeover of one of NWT's subsidiaries.
• Strategic investor taking a stake in NWT at a large premium.
• Strategic investor(s) taking a stake in Grosvenor Technology via a spin-out.
My view is that GT's large US tech growth business gives it great opportunity to capitalise upon much higher US valuations for such companies, so it should be looking to do this if possible.
E.g. at a pre new money s.p. of say c. 200p or equivalent.
Either way, a large new strategic investor can help to attract in other investors to bid the s.p. up, plus of course providing useful funds to help the company's growth opportunity.
What about an offer Hedgehog? My wife's firm has just been picked up by a private equity business and I have to say having been part of a couple a take overs and a float in my career both PE, I can imagine that as news breaks on the full year and the new model is understood out there, we have a real opportunity for a firm to come in with an offer (say at £20m) and look to invest £5m (through loan notes) to drive the value to £100m with a 3-5 year exit plan. This would be an ideal opportunity to incentivise the new management team as well. I can't see anything below £20m being considered given the shareholder structure and I could see the PE firm offering the incentive to retain some investment if the existing shareholders want to roll again.
If I was the Chairman and CEO, it would be something I'd be exploring, if only to see what interest there is.
NWT's revenue growth and outlook is clearly very positive.
And its profit growth should significantly outperform its revenue growth, due to a greater proportion of higher margin business, combined with increased economies of scale.
In addition, its rating should also increase, to reflect its improving profits and cash, growth prospects, much greater tech focus, and greater proportion of recurring revenues.
So from NWT's currently very modest rating, there is clearly excellent medium term multibagger potential.
Increasing profits and an increased rating should go hand in hand, complementing and enhancing each other's impact to create a double positive whammy.
For example:-
• Doubling earnings & a doubled rating = a quadrupled s.p.
• Trebling earnings & a trebled rating = a 9-fold rise in s.p. (i.e. 1,000%).
• Quadrupling earnings & a quadrupled rating = a 16-fold rise in s.p.
NWT's shareholders base - most of which is long term - seems pretty sticky, so should require some quite aggressive bidding from buyers to wrestle away significant amounts of shares from them.
This should be an ongoing process over quite some time, underpinned by ongoing growth from the company.
And some other rerating stimulators could be:-
• A broker note.
• Press coverage.
• Grosvenor Technology spin-out news &/or US fundraising.
"How Common Are Bank Robberies In The UK?
25 May, 2023
The idea of a group of masked criminals storming into a bank, guns blazing, and making off with bags of cash is a staple of both movies and popular culture. However, in reality, bank robberies are much less common and far less lucrative, especially in the UK. Bank robberies were very common in the 1990s, with near-daily bank robberies in London. By 2011, there were just 66 bank robberies. Today, it’s virtually unheard of.
Bank Robberies in the UK
According to recent statistics, the number of bank robberies in the UK has declined by more than 90% over the past 20 years. In 2000, there were over 700 bank robberies in the UK. By 2020, that number had fallen to just 58. ...
Despite the declining trend of bank robberies in the UK, banks still require protection and safety screens to deter potential robbers and ensure the safety of their employees and customers. ...
Safetell’s innovative solutions for banks – including fast-rising security screens and access controls – have played a big part in ensuring that banks are safer places for their employees and customers."
https://www.safetell.co.uk/insights/how-common-are-bank-robberies-in-the-uk/
Well done to Safetell for playing such a big role in reducing UK bank robberies.
What a quite striking and visceral testament to the quality and effectiveness of its offering.
17th May 2023 7:00 am RNS Year-end trading update
" ... Safetell has continued to increase its market share in the Entrance Control market with successful installations direct to end users and within the enlarged construction sector, including newbuild and refurbishment. ..."
https://www.lse.co.uk/rns/NWT/year-end-trading-update-5xr1fml6a08a34o.html
The related areas of entrance control and access control are a good link between Safetell and Grosvenor Technology, so both sides should be benefitting from referral business between the two.
"Entrance Control vs Access Control
10 February, 2021
Entrance and Access Control are both necessary elements to control who enters and exits any premises or secure area, but do you know the true difference between the two?
Access Control
Access Control refers to the selective systems that are used to verify authorised personnel using their credentials for example, biometrics, pin numbers, access cards, bluetooth etc, and permits or denies entry based on the requirements predefined in the system.
Entrance Control
Entrance control is the physical system which actually prevents or allows entry into an area when the decision has been fed to it by an Access Control system. This can be done by a range of high and low security systems, for example:
Security Portals ...
Revolving Doors ...
Security Pass Doors ...
Speed Gates ...
Full Height Turnstiles ...
Tripod Turnstiles ...
Swing Gates ..."
https://www.safetell.co.uk/insights/entrance-control-vs-access-control/
"GT Clocks at SHRM23 in Las Vegas ...
GT Clocks will be showcasing its elite selection of HCM devices at SHRM23 on 11-14 June 2023 in Las Vegas, where attendees can discover how GT Clocks is revolutionizing the industry.
Showcasing GT8 – The Powerhouse Of HCM ..."
http://gtclocks.com/insights/gt-clocks-at-shrm23-in-las-vegas/
It's clearly GreaT8 news that GT is having such an industry impact.
Which should also shortly be revolutionising NWT's profits & s.p.
In fact, GT's is the most explosive small British share expansion into America that I have seen for decades.
Since the legendary Pentland-Reebok success, forty years ago.
American sales were key to the success of British 150-bagger Pentland Industries, which sold Reebok into the US through its US subsidiary Reebok USA Ltd.
" ... In 1987, Reebok’s sales totalled $1.4 billion—a thousand times what Fireman first generated in 1981. By 1988, that number had grown to $1.8 billion, with Reebok controlling 26.7 percent of the athletic footwear market and besting Nike’s $1.2 billion in revenue. ... "
https://www.grailed.com/drycleanonly/reebok-history
Reebok is an excellent example of how investment into the right new products and services, to supply a compelling trend, can pay off handsomely as sales really take off - as they have been doing for NWT in America recently.
NWT's success stateside deserves to be the talk of the City; and I predict that in due course it will be.
"My estimates for full year ending 30.4.23: G.T. c. £18M.* / Safetell c. £4.5 - £5M."
Amendment:-
For Safetell that should actually be c. £4.6 - £5M., as it was confirmed last week that it will be higher than the 2022 figure of £4.586M.
"DRIVE YOUR CAREER FORWARD
Change in the workplace and in your own work doesn’t come easy. It takes vision, connections, commitment and access to the right resources. All the things you’ll get and all the things we’ll celebrate at SHRM23, SHRM’s 75th anniversary conference. It’s not only going to be bigger than ever. It’s going to be better than ever, featuring four days of curated experiences throughout the Las Vegas Convention Center, around town and even live online. So, join us for this historic event and join us to make a real change in the world of work."
"HERE’S WHY YOU SHOULD ATTEND THE SHRM ANNUAL CONFERENCE & EXPO.
Catch a glimpse of what your experience will be like attending the world’s largest HR conference and hear from former attendees on what they get out of this can’t miss event for HR professionals."
https://annual.shrm.org/
Fantastic to see GT attending this important exhibition, the world's largest of its kind.
I think this indicates how GT is now really coming of age in America, and of just how impressive its ambitions and opportunity really are.
"GT Clocks at SHRM23 in Las Vegas
Colin Leatherbarrow
Managing Director
24 May 2023 2 min read
GT Clocks will be showcasing its elite selection of HCM devices at SHRM23 on 11-14 June 2023 in Las Vegas, where attendees can discover how GT Clocks is revolutionizing the industry.
What Will You See From GT Clocks?
HR professionals will be impressed by the comprehensive reporting and advanced analytics offered by GT’s HCM devices. This cutting-edge technology empowers organizations with deeper insights into crucial aspects of their business, enabling strategic growth. These seamless solutions effortlessly integrate into your existing business operations.
The GT Series enhances employee engagement, empowering a business to effortlessly improve workforce efficiency and reduce the burden on busy HR teams. Our working demonstrations will provide a firsthand experience so HR professionals can see the remarkable effectiveness of our processes in action.
Attendees will have the opportunity to connect with Ben Lagden, our VP of Commercial, Matthew Smith, our VP of Global Sales, and Mike Braun, our National Sales Manager. They eagerly look forward to discussing how GT Clocks can support your HR functionality. Visit us on booth #2722.
Showcasing GT8 – The Powerhouse Of HCM
The GT8 surpasses expectations with its rapid and precise facial and fingerprint recognition technology and stringent security measures. This ensures high performance, effectively streamlining your HCM processes.
Featuring high-speed facial recognition for swift clocking, the GT8 promotes efficient time management. Moreover, its enhanced security protocols, including encrypted PII/biometric data, safeguards sensitive information ensuring compliance.
With the added advantage of surface Employee Self-Service data, administrative tasks are significantly reduced, freeing up valuable time for more strategic HR initiatives.
When selecting an HR system, it’s crucial to choose one that not only streamlines your HR tasks but also adapts seamlessly to your organization’s growth. Scalability is key, whether you’re adding a new team member or onboarding a large group of employees following a recent corporate acquisition.
GT Clocks go beyond clocks and terminals. As a business, we offer a comprehensive end-to-end solution designed to minimize both administrative workload and life cycle costs. With our comprehensive approach, you can optimize your HR processes and unlock the true potential of your workforce.
To register to attend click here."
https://gtclocks.com/insights/gt-clocks-at-shrm23-in-las-vegas/
NWT annual revenue split ten-year evolution:-
Years ending 30th. April: Grosvenor Technology / Safetell
30.4.13: £6.615M. / £11.701M.
30.4.14: £7.234M. / £11.937M.
30.4.15: £7.577M. / £15.277M.
30.4.16: £7.639M. / £14.184M.
30.4.17: £7.092M. / £8.944M.
30.4.18: £7.960M. / £8.092M.
30.4.19: £10.979M. / £8.604M.
30.4.20: £13.357M. / £5.410M.
30.4.21: £12.647M. / £5.011M.
30.4.22: £14.559M. / £4.586M.
Half year ending 31.10.22: G.T. £8.415M. / Safetell £2.210M.
My estimates for full year ending 30.4.23: G.T. c. £18M.* / Safetell c. £4.5 - £5M.
*Including c. £10M.+ in North American HCM revenues.
I.e. the tech side of NWT's business has seen its annual revenue nearly treble in the last ten years, fuelled by the hugely successful expansion into the USA.
But this success has been 'masked' by the decline of the non-tech side, with the decline of Safetell's traditional banking business.
The aggregate change though has been transformative, with NWT's tech side now making up about 80% of Group revenues, and rising, compared to a third in 2015.
Which means that NWT as a whole is now deserving of a far more generous tech-style rating, especially with its rapidly growing proportion of recurring revenues.
In addition, Safetell's negative effect on NWT's overall growth is now reversing, with it adding to the growth instead.
And with its expansion in the UK autodoor servicing market (estimated at twice the size of Safetell's traditional markets) already achieving significant success, which should also provide a a strong increase in its proportion of recurring revenues.
It all points to a quite transformative breakthrough in NWT's Group revenues and profits over the next couple of years, followed by further excellent growth going forward.
And with investors in NWT getting two attractive businesses for the price of one or less.
17th May 2023 7:00 am RNS Year-end trading update
" ... The Group's market share has continued to grow in Automatic Doors Services, with new national service contracts increasing recurring revenues. ..."
https://www.lse.co.uk/rns/NWT/year-end-trading-update-5xr1fml6a08a34o.html
Safetell's expansion in the UK autodoor servicing market (estimated at twice the size of Safetell's traditional markets) is clearly already achieving significant success.
And remember the strong regulatory driver helping to fuel this expansion opportunity:-
"Global Automatic Door Market Trending Upwards, EN 16005 Demands Annual Maintenance
JANUARY 19, 2023"
https://newmarksecurity.com/company-insights/
And in a further sign of its enthusiasm for this large and attractive expansion opportunity, Safetell's website just recently put a further seven new articles on automatic doors at the top of its "Insights" section, in addition to the nine new articles on automatic doors that it put there several weeks previously:-
"Insights
Keep up to date on our product news, business announcements and industry-related content on how to effectively and efficiently secure and maintain your organisation."
http://www.safetell.co.uk/insights/
Here's some extracts from one of the new articles, on automatic doors in hospital etc. ... there should be a huge health sector opportunity here for NWT:-
"Why do hospitals have automatic doors?
Hospital automatic doors are installed for a variety of reasons, not least because they play an essential role in ensuring that medical facilities are safe and accessible. One of the most common locations where you’ll find automatic doors is in hospitals and medical facilities. In fact, it’s increasingly unusual to find manual doors in hospitals and other medical centres. What is it about automatic doors that makes them such a great fit for hospitals and medical centres?
Convenience ...
Sanitation is a reason for automatic hospital doors ...
Accessibility ...
Automatic hospital doors offer added safety ...
Contact the experienced team at Safetell to find out more about hospital automatic doors and the vital role they can play in hospitals and medical settings."
https://insights.safetell.co.uk/why-do-hospitals-have-automatic-doors
17th May 2023 7:00 am RNS Year-end trading update
" FY23 year-on-year revenue growth, driven by a strong performance in the People, Data Management, and Physical Security divisions. ...
Physical Security Solutions division - Safetell
The organisational changes have been successfully implemented within Safetell following the restructuring of sales and marketing in 2022. This restructuring has helped Safetell deliver FY23 revenue growth, primarily from retail screens, entrance control installations and automatic door services.
During the year, Safetell developed a redesigned, cost-effective retail attack-resistant screen for convenience stores, and this has been subject to strong demand, having rolled out over £1 million of installations for major UK retailers and built a pipeline of over £2 million for installations for FY24.
Safetell has continued to increase its market share in the Entrance Control market with successful installations direct to end users and within the enlarged construction sector, including newbuild and refurbishment. The Group's market share has continued to grow in Automatic Doors Services, with new national service contracts increasing recurring revenues. ..."
https://www.lse.co.uk/rns/NWT/year-end-trading-update-5xr1fml6a08a34o.html
It was significant that this week's NWT trading update also reported strong performance from its Safetell subsidiary, with full year revenue growth, not just from its Grosvenor Technology subsidiary.
This confirms that the turnaround at Safetell is starting already.
Safetell's last H1 revenue fell 14% year-on-year, to £2.21M. (although this was an increase on the previous half year revenue, which was £2.018M.), and its full year revenue the previous year was £4.56M., so H2 revenue last year must be over £2.35M. - that's as a minimum.
Which also means a minimum increase on the previous H2 revenue of about a sixth.
I think this demonstrates how NWT management can deliver, and if anything prefer to 'under promise and over deliver', which is a refreshing change to many AIM shares.
Safetell's speed of progress also looks impressive. During the year just ended Safetell was able to develop a redesigned, cost-effective retail attack-resistant screen, and still roll out £1M.+ of installations of this by the year end.
And with a pipeline already of £2M.+ of installations of this for its current year just started, the outlook for Safetell this year is starting to sound quite exciting.
Safetell's increase in revenues may not yet be huge, but after a lengthy, multi-year downtrend it's a significant milestone to have a full year of revenue growth, combined with two half year half-on-half revenue increases.
And of course Safetell's expansion of its higher margin, recurring revenues should mean that it can grow its profits faster than its revenue.
It's only relatively recently that NWT has been able to describe itself as a (leading) software provider; in its spring trading update two years ago, for example, it still didn't:-
9th Jun 2021 7:00 am RNS Year-end trading update
"Newmark Security plc (AIM: NWT), a leading provider of products and services in the security and data sectors announces an update on trading for the year ended 30 April 2021 ("FY 20/21"). ..."
https://www.lse.co.uk/rns/NWT/year-end-trading-update-kpu096pd6tcmodz.html
17th May 2023 7:00 am RNS Year-end trading update
" ... Newmark Security plc (AIM: NWT), a leading provider of electronic, software and physical security systems, today provides an update on trading for the year ended 30 April 2023 ("FY23"), reaffirming the Company's return to profitability. ...
About Newmark Security plc
Newmark is a leading provider of electronic, software and physical security systems that helps organisations protect human capital and provide safe spaces seamlessly and securely. ..."
https://www.lse.co.uk/rns/NWT/year-end-trading-update-5xr1fml6a08a34o.html
This is a sign of the company's relatively rapid transformation, albeit one which is the product of the company's multi-million pound investment in R&D stretching back further.
The next step - which is just starting - will be for the wider stock market to pick up on this transformation, and to reward the share with an appropriate re-rating upwards.
There's still a long way to go on this front, but the important thing is that the process is underway.
And the strong upward momentum this year - in challenging stock market conditions - is impressive.
17th May 2023 7:00 am RNS Year-end trading update
" ... Compliance with data remains a strong underpinning core value, and the business continues to leverage this in winning new HCM SaaS recurring revenue business in both the North American and European markets. This has resulted in a 133% increase in the HCM ARR to £2.1 million for April 2023 (April 2022: £0.9 million). ..."
https://www.lse.co.uk/rns/NWT/year-end-trading-update-5xr1fml6a08a34o.html
In investing, you really want shares that are enjoying tailwinds (& as many as possible), rather than struggling against headwinds ... so that they are swimming with the tide, rather than against it.
And biometric data privacy requirement is one of the multiple strong regulatory drivers NWT is enjoying.
This has been given a good emphasis in today's RNS, and is complemented by some new articles that have just been added to Grosvenor Technology websites ... including its 'USA website':-
"Biometrics & Privacy; Don’t Fall Foul of the Law
Colin Leatherbarrow
Managing Director
17 May 2023 3 min read
... Getting it right – with expert advice and support
GT Clocks is an industry leader in human capital management (HCM) solutions, serving states throughout the US. Continuous innovation sees the organization stay ahead of the curve with technological advances that not only streamline processes but maintain stringent compliance.
When personally Identifiable Information (PII) is collected by a business, it needs to be subject to robust encryption right from the get-go. Through GT Connect, GT Clocks ensures that all ‘people data’ is secure from the moment it is collected right through to the time it is erased. ...
Sharing Your Duty
GT Clocks can alleviate some of the burden of data management and security by providing solutions that strictly adhere to the relevant legislation in your locality. Our teams are well-versed in compliance and will recommend systems that ensure you don’t fall foul of costly lawsuits. Get in touch to find out more."
http://gtclocks.com/insights/biometrics-dont-fall-foul-of-the-law/
"Biometrics & Privacy; Understanding The Law
The US has some of the strictest privacy laws. Organisations who breach them do so at their peril – often at great cost.
Paul Smith
Head of Quality & Compliance
When it comes to privacy laws, the US is known for its stringent regulations. Data and privacy laws differ on both sides of the Atlantic, but that’s not to say businesses in the UK can’t learn a thing or two from their American neighbours. ..."
http://www.grosvenortechnology.com/insights/biometrics-understanding-the-law/
"Ensuring data security in the privacy age
Grosvenor Technology prides itself on the way in which it handles data collection ensuring that it remains compliant at all times.
Colin Leatherbarrow
Managing Director ..."
http://www.grosvenortechnology.com/insights/ensuring-data-security-in-the-privacy-age/
Today's muted reaction was largely the same after NWT's excellent interim results on 31st. January. The s.p. then was unchanged on the day at 44p. But investors gradually absorbed the info., and the s.p. climbed (closing at 56p today, down 0.5p).
That slightly delayed reaction is reflective of the sort of quality, buy-&-hold investors that a quality share like NWT attracts ... who like to carefully consider and mull over info. before investing, but then are far more likely to stay put.
The only other number published in what was a fairly light TD was the cash position. Looking back at the 1/2 year results there was only £63k in the bank so we've accumulated £550k from the 1/2 year. As cash usually lags in a growth business this could represent a further positive sign (full detail only available in the full year position).
Overall what was expected. Growth in software licencing reoccurring revenues 133% awesome. Would have loved them to be more bullish and put out 'profit expected to be in excess of XX' but guess we'll need to wait. Disappointed to see lines of stock sold at 55p but price is up so there must be some order action for shares. A long wait to full year results and the next trading update, we can hopefully get a RNS or two out on the big deals we have in pipeline. What a growth play this share is, very comfortable with my stake and will likely continue to add on any weakness. Buys going through +60p is great to see. Over £1 by Christmas no problem.
"DRIVING PEOPLE WITH PURPOSE TO THRIVE
7-8 JUNE 2023, Olympia London"
"The CIPD Festival of Work is back!
Are you ready for a journey of discovery, inspiration, and innovation? Look no further, because the CIPD Festival of Work is back and the conference and exhibition is now free for all to enjoy! We want to assist you in creating new relationships within organisations and empower better communication and collaboration between teams. It's time to immerse yourself in the world of HR, L&D, internal communications and more to help you in driving your people with purpose to thrive!
Now in its fifth year, the CIPD Festival of Work has evolved to help you build better working lives. With more carefully curated content than ever before, and over 5,000 senior professionals from the working landscape, the CIPD Festival of Work will be bigger and better than ever, all of this available free of charge! This experience is exclusively in-person only, join us at Olympia London."
https://www.festivalofwork.com/
Nice to see GT attending this important exhibition, which should be a wonderful opportunity to showcase its quite compelling proposition to numerous industry professionals.
And it could also be a chance for NWT shareholders to have a quick look too!
"Insights | Company News
Grosvenor Technology at CIPD Festival of Work 2023
Ben Lagden
Commercial Director
Grosvenor Technology are delighted to showcase our best-in-class HCM devices at CIPD Festival of Work 2023 on 7-8 June 2023 at Olympia, London.
What’s happening on our stand?
HR professionals ready to streamline their HR processes should make their way to stand number B43. Here they’ll see the enhanced reporting and analytics that our HCM devices provide. This technology allows an organisation deeper insight into the aspects of their business that support strategic growth with solutions that seamlessly fit within your organisation.
The GT Series is designed to streamline and simplify employee engagement, empowering a business to effortlessly improve workforce efficiency and reduce the burden on busy HR teams. We will have working demonstrations on our stand so you can see just how effective processes can be.
Showcasing the GT8 – The Powerhouse Of HCM
Incorporating fast, accurate facial and fingerprint recognition and stringent security, the GT8 delivers high performance that will streamline HCM processes.
• High-speed facial recognition for unhindered clocking
• Enhanced security, including encrypted PII/biometric data
• Surface Employee Self-service data for reduced administration
A system that streamlines your HR activities, monitors and protects staff is a critical part of your business. It is also essential that your chosen system grows with you, whether you need to add that new member of staff or you have a thousand new employees to on-board following your most recent corporate acquisition.
HR teams throughout Europe and the US already rely on Grosvenor Technology to reduce their costs and deliver a Net Present Value proposition.
And we offer much more than just clocks and terminals – we can deliver a complete end-to-end solution that reduces both administrative and life cycle costs.
Key benefits to HCM solutions:
• Control labour costs
• Empower employees
• Reduce operational cost
• Time save on administration
• Create rich data for strategic decision making
To register for your free tickets and to plan your journey to the CIPD Festival of Work visit: hxxps://www.festivalofwork.com/
Come and see us on stand B43. Grosvenor Technology has partnered with Quadrant2Design to expertly showcase our products in the best possible light."
https://www.grosvenortechnology.com/insights/grosvenor-technology-at-cipd-festival-of-work-2023/
Sorry about the non-appearance of most of the PYCR presentation extracts I have twice tried to post.
The 'less than' character seems to be the cause, so I won't try to copy it in again: but the line concerned is saying that PYCR has a market share of under 2%.
Some other extracts from Paycor's new investor presentation, for its just-reported Q3 2023:-
"$32B underserved market with strong growth potential"
"Modern HCM platforms comprise a small portion of the market"
"Our Disruptive SaaS Platform is Differentiated"
"Massive, growing & still underserved market"
https://investors.paycor.com/static-files/3f61b4d7-1910-42dc-9c77-6232fef11e23
https://investors.paycor.com/news-and-events/events-and-presentations
Some extracts from Paycor's new investor presentation, for its just-reported Q3 2023:-
"$32B underserved market with strong growth potential"
"
"Paycor & Grosvenor Technology: A Powerful Pair
... “ ... The Grosvenor Technology team is an amazing partner. The collaboration and communication as we worked on the development of our software was great. ...” ..."
http://www.grosvenortechnology.com/insights/paycor-grosvenor-technology-a-powerful-pair/
For GT to be praised as an "amazing partner", by a multi billion pound cap. company like Paycor (PYCR), is a terrific testament to its quality, and bodes very well for its growth prospects.
NWT's vision is to build a business that generates 2 - 3 times its current revenues in the next 3 - 5 years.
And a trebling of annual revenue in five years requires average annual revenue growth of just over 24% p.a for five years, compounded.
So Paycor's new 32% year-over-year quarterly revenue growth helps to show how achievable NWT's vision is.
Some extracts from Paycor's new investor presentation, for its just-reported Q3 2023:-
"$32B underserved market with strong growth potential"
"
"Paycor HCM (PYCR) Q3 2023 Earnings Call Transcript
Motley Fool Transcribing, The Motley Fool
Thu, May 11, 2023 at 8:30 AM GMT+1
... Rachel White -- Vice President, Investor Relations
Good afternoon, and welcome to Paycor's earnings call for the third quarter of fiscal year 2023, which ended on March 31. On the call with me today are Raul Villar, Jr., Paycor's chief executive officer; and Adam Ante, Paycor's chief financial officer. ... With that, I'll turn the call over to Raul.
Raul Villar -- Chief Executive Officer
Thank you, Rachel, and thank you all for joining us to discuss Paycor's fiscal third quarter results. As employee engagement nationwide dropped to the lowest level in nearly a decade, we are seeing robust demand for our modern and differentiated HCM suite that enables leaders to more effectively coach, optimize and retain their people. With these essential talent tools, our customers are improving the core strength of their critical frontline leaders and increasing their employee retention by 10%. Revenue grew 32% this quarter as we continue to make great progress expanding our sales coverage and increasing PEPM.
This also marks the fourth consecutive quarter of margin expansion, delivering over 400 basis points of improvement year over year, while investing in capabilities that further differentiate Paycor in the market. Paycor's strong results are evidence of consistent execution across the enterprise. We continue to expand our go-to-market capabilities, seller headcount growth remains on track for 20%. Win rates remain high, average deal size continues to expand, and we are pleased to report another record third quarter for bookings.
I would like to thank the entire Paycor team for these amazing results. With that, I'll turn the call over to Adam to discuss our financial results and guidance.
Adam Ante -- Chief Financial Officer
Thanks, Raul. I'll discuss our third quarter results and outlook for the remainder of the fiscal year. As a reminder, my comments related to financial measures are on a non-GAAP basis. We delivered another strong quarter with total revenues of $161 million, a 32% increase year over year and recurring revenue growth of 23% over the prior year, marking the sixth straight quarter of achieving our 20%-plus target and a testament to the consistent execution from our team. ..."
https://www.fool.com/earnings/call-transcripts/2023/05/11/paycor-hcm-pycr-q3-2023-earnings-call-transcript/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
So it's another quarter, and another set of stunning quarterly results from Paycor ... which is more great news for NWT.
Paycor's tools are essential, it consistently beats expectations, its margins are expanding, and it has a high level of recurring revenue.
"Paycor HCM, Inc. (PYCR) Q3 Earnings and Revenues Surpass Estimates
Zacks Equity Research
Wed, May 10, 2023 at 10:55 PM GMT+1
Paycor HCM, Inc. (PYCR) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this company would post earnings of $0.06 per share when it actually produced earnings of $0.08, delivering a surprise of 33.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Paycor HCM, Inc. , which belongs to the Zacks Internet - Software industry, posted revenues of $161.48 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 3.46%. This compares to year-ago revenues of $122.6 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ..."
https://finance.yahoo.com/news/paycor-hcm-inc-pycr-q3-215509491.html