Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
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"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
"Paycor Announces Third Quarter Fiscal Year 2023 Financial Results
... Third Quarter and Recent Business Highlights
• Acquired Verb, a modern behavioral science-based microlearning solution to develop frontline leaders and their teams. Paycor plans to integrate Verb into its HCM platform to help organizations inspire positive, sustainable behavioral change through personalized development journeys.
• Building on artificial intelligence-driven innovation such as Paycor Smart Sourcing and Predictive Resignation, Paycor introduced its existing natural language processing and sentiment analysis engines into Performance Reviews to provide frontline leaders real time feedback on the language used in evaluations to foster a more humanized, engaging work culture.
• To further support frontline leaders, we deployed Industry Reports to provide quick access to important insights about their business.
• Won six Titan Business Intelligence Awards spanning Paycor’s best-in-class Talent Management solution, Paycor Smart Sourcing, and insightful analytics that help frontline leaders optimize business decisions.
Business Outlook
Based on information as of today, May 10, 2023, Paycor is issuing the following financial guidance:
Fourth Quarter Ending June 30, 2023:
• Total revenues in the range of $135-$137 million.
• Adjusted operating income* in the range of $13-$14 million.
Fiscal Year Ending June 30, 2023:
• Total revenues in the range of $548-$550 million.
• Adjusted operating income* in the range of $80-$81 million.
*We are unable to reconcile forward-looking adjusted operating income to forward-looking loss from operations, the most closely comparable GAAP financial measure because the information needed to provide a complete reconciliation is unavailable at this time without unreasonable effort.
Conference Call Information
Paycor will host a conference call today, May 10, 2023, at 5:00 p.m. Eastern Time to discuss its financial results and guidance. To access this call, dial 1-877-407-4018 (domestic) or 1-201-689-8471 (international). The access code is 13735321. A live webcast and replay of the event will be available on the Paycor Investor Relations website at investors.paycor.com.
About Paycor
Paycor’s human capital management (HCM) platform modernizes every aspect of people management, from recruiting, onboarding, and payroll to career development and retention, but what really sets us apart is our focus on leaders. For more than 30 years, we’ve been listening to and partnering with leaders, so we know what they need; a unified HR platform, easy integration with third party apps, powerful analytics, talent development tools, and configurable technology that supports specific industry needs. That’s why more than 30,000 customers trust Paycor to help them solve problems and achieve their goals."
https://investors.paycor.com/news-releases/news-release-details/paycor-announces-
Paycor HCM (NASDAQ: PYCR), Grosvenor Technology's largest North American partner, has just announced its third quarter results today, after close of the US markets:-
"Paycor Announces Third Quarter Fiscal Year 2023 Financial Results
May 10, 2023 at 4:16 PM EDT
• Total revenues of $161.5 million, an increase of 32% year-over-year, while expanding margins
• Recurring revenue of $150.8 million, an increase of 23% year-over-year, and the sixth consecutive quarter of achieving 20%+ revenue growth
• Raises FY’23 revenue and Adjusted operating income guidance $5 million and $3 million, respectively, year-over-year at the top end of the range
CINCINNATI , May 10, 2023 (GLOBE NEWSWIRE) -- Paycor HCM, Inc. (Nasdaq: PYCR) (“Paycor”), a leading provider of human capital management (“HCM”) software, today announced financial results for the third quarter of fiscal year 2023, which ended March 31, 2023.
“Paycor posted robust 32% revenue growth year-over-year, reflecting continued strong demand for our innovative HCM suite and consistent execution of our go to market strategy as we expand nationally,” said Raul Villar, Jr., Chief Executive Officer of Paycor. “Paycor’s ability to invest in differentiated cloud technology that enables all leaders to be more effective while expanding margins for the fourth consecutive quarter demonstrates the scalability of our business model.”
“This quarter we launched powerful new analytics and automation capabilities that empower frontline leaders to drive business results. We continue to advance the platform with leading-edge capabilities, such as leveraging artificial intelligence to optimize sentiment in performance reviews and acquiring a behavioral science-based microlearning platform that will enable leaders to develop their employees more effectively.”
Third Quarter Fiscal Year 2023 Financial Highlights
• Total revenues were $161.5 million, compared to $122.6 million for the third quarter of fiscal year 2022.
• Operating loss was $8.0 million, compared to $23.5 million for the third quarter of fiscal year 2022.
• Adjusted operating income* was $39.1 million, compared to $24.7 million for the third quarter of fiscal year 2022.
• Net loss attributable to Paycor HCM was $7.3 million, compared to $16.7 million for the third quarter of fiscal year 2022.
• Adjusted net income attributable to Paycor HCM* was $31.6 million, compared to $18.6 million for the third quarter of fiscal year 2022.
*Adjusted operating income and adjusted net income attributable to Paycor HCM are non-GAAP financial measures. Please see the discussion below under the heading "Non-GAAP Financial Measures" and the reconciliations at the end of this press release for information concerning these and other non-GAAP financial measures. ..."
https://investors.paycor.com/news-releases/news-release-details/paycor-announces-third-quarter-fiscal-year-2023-financial
Impax Asset Management (IPX) shows the strong investor appetite for green investment, and the fantastic returns that can be achieved in this area:-
"About Us
A specialist asset manager, investing in the opportunities arising from the transition to a more sustainable global economy.
Founded in 1998, Impax Asset Management has pioneered investment in the transition to a more sustainable global economy and today is one of the largest investment managers dedicated to this area."
https://impaxam.com/about-us/
(IPX) has a current market cap. of over a billion pounds, with a P/E in the mid 20s, and a market cap. of about six times its annual revenue.
And its share price has 200-bagged within the last twenty years, from a mid 2003 low of c. 3.5p, to its current s.p. of 799p.
"Safetell Commits to Carbon Reduction with Achilles Certification
... Saving money and energy
Carbon reduction is an important method for businesses to reduce their energy use and save money, through efficiency measures such as improved insulation and lighting, more efficient heating and cooling systems and improved air conditioning. Additionally, businesses can switch to renewable energy sources such as solar, wind, and hydroelectric power, and at Newmark, we’re constantly considering how we leverage cleaner energy.
In conclusion, reducing carbon emissions should be a focus for any business that is committed to CSR and sustainability. Participating in initiatives such as the Achilles Carbon Certification Programme helps companies to make a tangible difference in reducing their carbon footprint, improving public perception, and building customer loyalty.
Carbon reduction also helps businesses save money and energy, making it a smart business decision and a socially responsible one. Newmark Security and its subsidiaries are proud to be involved in initiatives such as the Achilles Carbon Certification Programme and are fully committed to reducing our carbon emissions."
https://newmarksecurity.com/company-insights/safetell-commits-to-carbon-reduction-with-achilles-certification/
"Safetell Commits to Carbon Reduction with Achilles Certification
... The ability to make those claims is undoubtedly attractive, but there are many other reasons we’ve made this long-term commitment. Here are just a few of them:
It’s the right thing to do… and there’s no time to waste
Human-induced climate change is causing extreme conditions all over the world. So much so, the UN has described it as “code red for humanity”. There is still time to fix our climate, but time is running out, and it will require the commitment of businesses, governments, and individuals alike to make it happen.
Newmark and our subsidiary businesses are 100% committed to doing our bit, and have ambitious targets to cut our short- and medium-term carbon output significantly.
Corporate Social Responsibility (CSR)
We believe passionately in being a business that lives CSR every day. We can’t do that without making meaningful progress with our carbon footprint. Carbon reduction is one of the most critical elements of CSR, as it directly impacts the environment, public health, and the economy. Our participation in the Achilles Carbon Certification Programme is a recognition that driving CSR standards and cutting emissions go hand-in-hand.
Customer relationships
One of the primary benefits of carbon reduction for businesses is improved customer relationships. Customers are more aware than ever of the environmental impact of businesses, and want to work with companies taking steps to reduce their carbon footprint. By reducing carbon emissions, we are signposting our commitment to a cleaner environment and our status as a responsible partner and supplier.
In addition to improving customer relationships, reducing a business’s carbon footprint can also help to attract new businesses. Companies wanting to partner with new vendors often look for those who share their commitment to sustainability. By reducing their carbon footprint, we are not only demonstrating their commitment to the environment, but also our commitment to responsible decisions.
We’re also seeing a commitment to carbon reduction becoming a vital part of the tendering process. Private and public businesses understand how important reducing carbon footprints is, so we increasingly have to demonstrate our commitment to carbon reduction when bidding on new projects. ..."
https://newmarksecurity.com/company-insights/safetell-commits-to-carbon-reduction-with-achilles-certification/
NWT's website has just added a new article about Safetell's Achilles Carbon Certification Programme participation, unveiled on Safetell's website in mid April.
This new article reports it from the perspective of the NWT Group rather than its Safetell subsidiary, encompassing Grosvenor Technology too.
NWT seems to be an absolute exemplar in its commitment to green best practice, and a top choice for investors seeking great investment returns while supporting net zero objectives.
"Safetell Commits to Carbon Reduction with Achilles Certification
MAY 2, 2023"
https://newmarksecurity.com/company-insights/
"Safetell Commits to Carbon Reduction with Achilles Certification
Newmark Security is taking a leading role in reducing its carbon footprint, with its subsidiary business Safetell committing to the Achilles Carbon Certification Programme.
As the world becomes more interconnected, businesses are increasingly evaluated on their sustainability approach and Corporate Social Responsibility (CSR). Once something of a fringe consideration, they have become a primary focus for companies to remain competitive, attract and retain talent, drive innovation, and build brand loyalty.
Newmark Security knows how important it is to implement and maintain high standards of CSR and always looks at how we can be in constant improvement mode regarding sustainability. That runs throughout the whole business, right from the leadership of Newmark to our subsidiary businesses, Safetell and Grosvenor Technology.
Safetell is currently participating in the Achilles Carbon Certification Programme, a global initiative that helps businesses reduce their carbon footprint and improve their sustainability performance.
Focusing on areas such as energy efficiency, renewable energy, waste management, and transport, the benefits of the certification include improved operational efficiency, reduced costs, improved public perception, and improved brand reputation.
Specifically, the programme aids businesses in the following ways:
• Measuring greenhouse gas emissions
• Managing and reducing emissions at the source
• Verifying inventory
• Mitigating carbon footprints
The Achilles Carbon Certification Programme also helps organisations to meet their environmental targets, increase their competitive advantage and gain recognition for their sustainability efforts.
Safetell has just completed its base year of the programme, which, when completed, will mean the business is certified in accordance with ISO14064-1, allowing it to make Carbon Reduction or Net Carbon Zero claims with confidence in any market or stakeholder group, including the regulators. ..."
https://newmarksecurity.com/company-insights/safetell-commits-to-carbon-reduction-with-achilles-certification/
Thanks for that useful analysis Dab808.
It could be a blessing in disguise, as some investors may be put off by relatively low liquidity, and now this is providing some.
It could even be an opportunity for another institution to start accumulating ... or indeed anyone looking for such an opportunity.
I note that THAL suffered a major disappointment with one of its holdings early this year, and is relatively low on cash, so may find the proceeds handy at the moment.
Impressively though, THAL's Chairman has volunteered to compensate THAL for this loss (£3M.), simply because he believes it to be the 'right thing to do'.
This is an uncommonly high moral standard for a penny share boss, for which he is to be commended.
27th Jan 2023 2:40 pm EQS Thalassa Holdings Ltd: Trading Statement
" ... Commenting, Duncan Soukup, Chairman said:
“After 40 years in finance I am clearly still learning…and still making mistakes.”
“I believe that Tappit’s board should not blame Covid, but take responsibility for the company’s demise which, in my opinion, was completely avoidable if they had heeded my warnings when I served on the Board. In any event, at Thalassa the ‘buck stops here’, with me. I will, therefore, exceptionally and on a purely moral basis, submit a proposal to the Board to contribute assets or rights in the amount of Thalassa’s initial investment of £3m (equivalent to ~38p/shr). The Board will explore the viability of my proposal with our legal and financial advisors and apprise the Market in due course”. ..."
https://www.lse.co.uk/rns/THAL/thalassa-holdings-ltd-trading-statement-vnkov1bxbjaj9nh.html
Interesting that Thalassa Holdings have decided to sell a small percentage of their holding so close to the trading update and in advance of the significant growth story to be told to the market through the next few results updates.
They built their stake in late 2019 (price then about 35p) to April 2020 (around 60p). The have obviously sat on the rise until now, then taking a small profit. Maybe this is a prudent trade, perhaps they want some profit for their efforts. One to watch moving forward and it could be that they want to move more considering the price is not moving up. If they keep selling into the rise it could hold us up a little, but I am sure they hope for larger gains and I am sure there are more buyers than sellers given the businesses trajectory.
After a good volume day yesterday, we went further today, 80,000 shares in the last two days. There are a few sells but buyers seem to be on top. The price has not moved so there is some resistance at this level. The fact there has been both buyers and sellers and this new entrants in at this price, hopefully allows us to push higher on news without those who have already sold holding us back. Tick tock, trading update soon.
Grosvenor Technology should also soon have a fresh and profitable set of full year numbers, which would be the perfect base to launch a float at a really tasty valuation.
And it was indicated from NWT's AGM in February that this GT idea may be progressed this year.
So news on this could now potentially be forthcoming fairly soon.
A Grosvenor Technology spin-out from NWT, in a USA floatation, would likely be a key to an immediate and immense unlocking of its value.
NWT has previously spun-out one of its subsidiaries, in a double global first involving foreign markets.
So a Grosvenor Technology spin-out from NWT, in a US float, not only makes perfect sense, but would follow an established NWT modus operandi.
So NWT's year ending 30.4.23 has now been completed, and we're in countdown mode to the group's year-end trading update later this month, with that RNS date expected to be announced in advance
NWT is expected to report eps of c. 10p/share or more for its year ending 30.4.23.
Considering its recent strong half-on-half results improvement momentum, a 'surprise' on the upside can't be ruled out, but anything around eps of c. 10p/share would still be outstanding.
As regards the year ending 30.4.23 revenue split between NWT's two subsidiaries:-
• NWT's Grosvenor Technology subsidiary looks well on course to exceed £10M. in North American HCM revenues for its year just completed, with perhaps c. £18M. total GT revenue.
• With NWT's Safetell subsidiary revenues adding a further c. £4.5 - £5M., to give perhaps c. £22.5 - £23M. of NWT Group revenues for the year ending 30.4.23.
Having a full, fresh year of profit under its belt is bound to help NWT's investor sentiment further improve, and I would fully expect the investment press pick up on this opportunity in the not too distant future.
Welcome Jeffrey_Scott and congratulations on your first post on LSE. Welcome to Newmark Security. It has been a lonely place for Hedgehog and I so it is great to have a new contributor. Hedgehog has been posting a significant amount of valuable content is the last 12 months that is worth reviewing, and the last 6 months has been quite a ride with the price rising from 25p to nearly 60p. There is so much further to go given we still stand at a market cap of £5m and will likely post profits of more that £1m with an outlook that is likely to be very positive. Good luck here if you have taken a stake, and given the trading update is less than a month away it is a great time for a top up too :)
yeah interesting article https://www.grosvenortechnology.com/insights/biometrics-in-the-workplace-security-first/
Looking back over the trading of this share at these levels, I cannot see why we will get many sellers running into the next trading update. Who wants to sell when you are expecting a £1m+ profit and you expect sentiment to be strong for the year ahead. Most volume/buyers have entered in the 50p range some as high as 75p, very few in the 25-50p range. You then have the long term holders, these aren't going to bail when the outlook is so strong. I could be wrong but we have sailed through the 30's, 40's and now we look to enter the 60's. Last chance below 60p to buy (I have just topped up at 59p with another small add).
Many thanks for that very useful and positive update Dab.
Some good suggestions there from yourself, and some good stuff to look forward to in the near term.
Exciting times indeed!
I had an update from Marie-Clare today who responded to an email of last week. As anticipated we should expect a trading update from around mid-May, she is going to see if the date of the release can be announced so we know the exact day. Obviously she cannot comment on performance ahead of the release. New auditors are embedding well, she sees no reason that finals won't be later than the end of September. I recommended that given the new strategy and successes that we ought to look at engaging Equity Developments to write up a note. She said she'd take a look at that. Released with the results I think it would he really useful to have something investors can pick up that will give projections and strategy considerations. Whether it moves forward is very much dependent on time/cost. I provided thoughts on the most recent presentations and that we need to find someone of embedding our market cap with the emphasis that we are under valued given our revised strategy, return to profit and growing markets. Again she agreed to work this in somehow, some of your comparison Hedghog are mind blowing. She seemed upbeat, if you can tell that from an email. Exciting times. DYOR etc...
The PEG ratio (price/earnings to growth ratio) is a useful valuation metric for growth stocks.
From the legendary tech stocks guru Conor McCarthy:-
" ... Technology stocks - attractions and dangers
... 10. Look for companies with a PEG (current year prospective P/E divided by the growth rate for the following year) of less than 1.
This enables comparisons to be made between stocks with varying multiples and growth rates. If two stocks have more or less equal PEGs, go for the one which looks most likely to achieve market expectations. ..."
https://flylib.com/books/en/1.371.1.92/1/
From Wikipedia:-
"PEG ratio
From Wikipedia, the free encyclopedia
... It was later popularized by Peter Lynch, who wrote in his 1989 book One Up on Wall Street that "The P/E ratio of any company that's fairly priced will equal its growth rate", i.e., a fairly valued company will have its PEG equal to 1. ..."
https://en.wikipedia.org/wiki/PEG_ratio
NWT is expected to report eps of c. 10p/share or more for its year ending 30.4.23, which at its current s.p. of 55p would equate to a P/E of about 5.5 or less.
There are no broker forecasts for the company, but there is a revenues vision.
From NWT's Investor Meet Company presentation video, 8th. February 2023:-
23:56: " ... Our vision is to build a business that generates 2 - 3 times its current revenues in the next 3 - 5 years. ... we are very well positioned to achieve this vision ... "
https://www.investormeetcompany.com/
A trebling of annual revenue in five years equates to a compounded annual revenue growth of just over 24% p.a.
Though earnings growth would likely significantly outperform revenue growth, due to more higher margin business and increased economies of scale, more than offsetting the tax charge when historical tax losses are exhausted later.
So earnings growth of say c. 50% p.a. compounded over this period looks realistically achievable.
This gives the following PEG ratio:-
Current year P/E: 5.5
Divided by future % eps growth rate: 50
= PEG ratio of 0.11
And as a PEG ratio of 1 is deemed to be fair value, this would indicate that NWT is currently priced at just 11% of fair value, with fair value being 500p/share.
"Apr 20 Technology Showcase Shortlist Announced!
ACS has announced the shortlist for the 2023 Technology Showcase, taking place on 16th May at the Everyman Broadgate cinema in London.
The Technology Showcase provides a unique opportunity for retailers to find out about new technology solutions that have either been recently launched or will be launched in the future by suppliers.
This year’s Technology Showcase will be headlined by an exclusive discussion with Ben Wishart, Global Chief Information Officer at Ahold Dehaize, one of the world’s largest food retail groups. The showcase will also hear from Mike Callachan, CEO of Snappy Shopper, on the future of delivery services and other opportunities for the convenience sector. ...
The event will be co-chaired by Sarah Johnson from ACS and independent retailer Rav Garcha. There will also be a panel of retailers discussing the showcase entries and retail technology issues: Ian Lewis (Spar Minster Lovell), Fiona Malone (Premier Tenby) and Ramesh Shingadia (Budgens Southwater).
ACS chief executive James Lowman said: “Investing in technology is an integral part of modern convenience retailing, as retailers seek out ways to make the business more efficient, more appealing to customers, and for futureproofing the store for years to come. We’re delighted to have the shortlisted companies involved with this year’s Technology Showcase, where they’ll have the opportunity to put their solutions forward to an expert panel of retailers.” ... "
https://www.acs.org.uk/news/technology-showcase-shortlist-announced