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Trying to get my head around this one as based on current SAAS market values it is clearly ridiculously cheap but evidently it's CAC and general cost base are too high hence the obscene level of losses in relation to revenue. This evidently killing the business valuation and dire need for a cash call.
I can see they did some cost restructure but I'm just wondering if this partner first policy as opposed to expanding own direct sale team is what's killing this? Are they paying too much out in partner commissions in relation to the contract value or are they paying too much upfront in partner commissions whilst the end user pays on monthly terms? Something here just doesn't feel right to me but without closer understanding of this partner model its hard to know.
Total bookings went up by £1.4m BUT losses increased by 200k. On closer inspection we find deferred revenue went up by just over £1m so this brings me back to the CAC being too high? Either that or they are not charging enough for the product in the first place?
When you look at that 3 yr University win for example, it works out at just £47 per unit a year, so maybe they are at the maximum price point? or under pressure from competition and having to price it that keen?
To fix this it looks like they possibly need to increase the retail price of the product but if they can't do that, the only other option is to reduce the CAC, maybe reduce the partner commissions or only pay commissions inline with the deferred income? anyone got any thoughts on this?
I'm kind of reluctant to chuck more cash at this, support the next placing, without some changes made to address reducing the CAC or at least an outline of how they will get to the Break even line?
Normally its the old adage of get it profitable by increasing revenues or cutting costs. Here you could argue that adding another £1.4m to revenue next year would see losses widen by another 200k ,so clearly its not winning business that is the issue here its making the orders they get in viable. Perhaps Stuart needs a strong COO appointed to work alongside him or an FD to really get a handle on the acquisition costs?
Will be interesting how this moves forward
With an average of 21p, some of us are losing loads which these bunch of cowboys don't seem to give a dam about
Mind has decent products and interest. Just a huge wage bill end and expenses
Awful SP. Everybody's losing money here. Weren't friends buying in at 2p
Awful SP. Everybody's losing money here
Government sets out strategy to protect NHS from cyber attacks
https://www.gov.uk/government/news/government-sets-out-strategy-to-protect-nhs-from-cyber-attacks
Hopefully this will involve Osirium as they already have contracts with the NHS
Another example of confidence from the BOD. Options being re-granted at the current price (not lower!). With 3 year vesting period. They obviously think this will work out well for them.
existing holders of outstanding options over Ordinary Shares will be invited to surrender their current options and would be granted new options (the "New Options"), exercisable at the market price of an Ordinary Share at the time of grant, such number of options to be determined by Osirium's Remuneration Committee. It is anticipated that the New Options would be subject to a three-year vesting period.
Bank of England has ordered lenders to bolster their defences against a major cyber attack amid fears Russian-linked hackers will attempt to plunge the financial system into crisis.
Officials at Threadneedle Street last week instructed banks, insurers and market infrastructure companies to wargame their response to a severe attack.
It comes after Royal Mail and the Guardian fell victim to ransomware gangs earlier this year amid a rise in high-profile attacks.
In a letter to executives, Sarah Breeden, head of financial stability at the Bank, gave companies a deadline of March 2025 to get their systems and emergency response plans in shape
From OSI final results
Healthcare proved to be a substantial market for the Group during the period, with a number of contracts signed with NHS trusts. The Group continues to focus on this area alongside other UK public sector areas such as the education sector which present an equally exciting opportunity for growth.
From GOV.UK March 2023
full implementation plan will be published in summer 2023 setting out detailed activities and defining metrics to build and measure resilience over the next 2 to 3 years.
National cyber security teams will also work closely with local and regional health and care organisations to achieve the visions and aims of the strategy. This work will include enhancing the NHS England CSOC, publishing a comprehensive and data-led landscape review of cyber security in adult social care, and updating the Data Security and Protection Toolkit (DSPT) to empower organisations to own their cyber risk.
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New strategy sets out 5 key ways to build cyber resilience in health and care by 2030Cyber strategy will protect health and adult social care functions and services, which the whole nation depends onPart of government’s commitment to build a stronger, more sustainable NHS for the future
Patients will benefit from bolstered protection to the nation’s health and adult social care services as a new cyber security strategy for England is published today
they get £650k last year (up from £695k) due to the investment they make into the tech
This is on top of the £1mln cash as of Dec 2022
For £2mln value with £1.lm annual RR (up 30% from 2021), £1mlnncash and ¥650k+tax credits this looks fat too cheap
If possible they need to raise the price of their product, as every little helps.
They ARE DOING THAT
See the results and the part about cash break even coming soon
There's no issue with the current revenue stream. The main question is how quickly the new CEO can get on top of the cost base and bring the net monthly operating cashflow back above zero. Once he can achieve this, and report it, the SP will move sharply northwards IMO.
Yes they get £650k last year (up from £695k) due to the investment they make into the tech
This is on top of the £1mln cash as of Dec 2022
For £2mln value with £1.lm annual RR (up 30% from 2021), £1mlnncash and ¥650k+tax credits this looks fat too cheap
d i r e c t o r s t a l k i n t e r v i e w s
https://www.***************************/osirium-technologies-land-and-expand-strategy-drives-customer-wins-and-renewals/4121112280
Mentions that they are due 650k tax credit payment. This will come as soon as they submit accounts and fill in CT600, so they could do this any time and receive money within 28 days. Last year accounts were submitted in July.
BurrenBoy, you seem pretty clueless to be fair.
The market presents opportunities
This is one..they only just raised £1.5mln on 22nd Nov 20222.
This is totally mis priced
If all that is true why is the stock at 1.5p?
Has the market got the price wrong, surely 1.5p indicates high risk they won't survive.
This early trading momentum increased the number of customers further, and a strong pipeline of new business supports the Board's business forecasts and underlines their confidence in the Group's ongoing momentum.
As reported on 22 November 2022, the Board identified a further £1.00 million of annualised cost saving measures which have been implemented effective from 1 January 2023. The Directors consider these cost savings will contribute towards shortening the timeframe by which the Company will become cash flow break-even.
Coupled with the above projections, the Directors are confident that Osirium has sufficient working capital to honour all of its obligations to creditors as and when they fall due. The Directors consider it appropriate to continue to adopt the going concern basis in preparing the Financial Statements
They have £1mln cash plus usually get £600k tax credits each year amd £1.9mln annual recurring revenues per year and growing
I think at £2mln market cap this is good value
Total bookings increased by 86% to £3.0m, with the company securing more customers, increasing average initial contract values by 93%, and enjoying high customer renewal rates of 96%
Current trading and outlook
Entering the new financial year, the Group has continued its focus on growing its customer base as well as achieving license expansions with customers through up-selling and cross-selling and the Group is pleased to have achieved a mix of additional up-sell contract wins from its expanded base of customers. The average contract value for new customers remains strong, and the Group is seeing increasing opportunities for multi-year engagements.
In markets where knowledge of privileged security is maturing, we are seeing shorter, more focused sales cycles where the customer already understands its objectives and is looking for differentiators that align to its resources, budgets and timescales. This is ideal for Osirium as it makes our sales cycles more efficient and has created opportunities early in the year to win new customers and expand on existing contracts.
The existing regulatory drivers and cyber insurance requirements are continuing to ensure cyber security remains a high priority part of overall IT budgets, with IBM's Cost of a Data Breach 2022 report estimating the global average total cost of a data breach to be $4.35 million.
Within this trend, organisations are also rationalising budgets and technology stacks, with the demand for good value and easy to deploy products representing another positive driver for Osirium. In particular, the Group has seen a number of contract wins, upsells and renewals with healthcare and public sector organisations in 2023 to date, as those organisations look to finalise their year-end spend and in line with the heightened awareness of cybersecurity threats posed to critical infrastructure.
Just had a look and recurring annual revenues are £1.9mln while the market calue is only £2mln
OSI grew in every metric and while the loss is slightly larger the comaony amd aiditors have signed OSI off for another 12mths ( assumed as growing client base)
I see this as a takeover sitting duck just like UBG was