Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.
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Good to see them getting a bit of traction after a disastrous year on the share price front as it has been for most tech stock. The have a recorded presentation available now from Investor Meet Company yesterday where amongst many positives the were awarded Company of the Year 2022 by Asian Telecoms org. A lot of people are cynical about awards especially those who aren't recipients! It certainly can't do any harm. So congratulations to them for that. They also appear on ZAK Mir's radar of billboard heroes obviously now there seems to be some decent reversal in the charts.
Impressive RNS, unfortunately, macro market conditions will likely suppress the SP.
"Aim-traded Pelatro (PTRO:22.75p), a company that makes its money by providing 23 large telecoms operators with precision marketing software, delivered a step change in profitability last year. Cash profit rose more than sixfold to $2.8mn (before accounting for non-cash depreciation, share-based payments and amortisation charges) as the operational leverage of the business kicked in on an increasing recurring revenue stream.
Pelatro uses 'big data' analytics (artificial intelligence, machine learning and other analytical techniques) to reveal patterns, trends, associations and behavioural traits of telecom subscribers. These insights enable mobile telecom operators to monetise their data, boost average revenue per user and their share of subscriber spend, while also reducing churn rates. It’s proving popular. The group added three new clients to its customer base last year and now processes data of over 1bn telecom subscribers every day.
However, the real game changer has been transitioning large Asian telecom operators to long-term managed service contracts that produce an annual recurring revenue (ARR) stream and a high level of repeat business. To put this into perspective, Pelatro’s ARR of $4.8mn accounted for two-thirds of last year’s total revenue of $7.2mn, and that excludes $2mn of change requests, effectively repeat revenue earned from clients as products evolve. The group started 2022 with ARR of $6mn, or four times higher than at the start of 2019. Furthermore, the addition of three new customers has reduced concentration risk, with only two clients now accounting for more than 10 per cent of revenue.
The directors are also leveraging Pelatro's position in 'big data' analytics by entering the mobile advertising space, a market that is projected to double in size to $221bn by 2024. Expect the first customer to be signed this year, adding another potentially valuable revenue stream.
Importantly, gross cash of $3.3mn (excluding borrowings of $0.75mn) has been buoyed by $1.9mn received from debtors since the financial year-end, while the strength of the order book is such that ARR is expected to account for 80 per cent of the $9mn revenue forecast this year, says managing director Subash Menon. New house broker finnCap has yet to initiate coverage, but the business is clearly generating strong momentum.
This explains why Pelatro’s share price bounced 21 per cent post results, having been de-rated since the half-year results (‘Dial into a lowly rated tech play’, 28 September 2021). However, even if the share price doubles from this point, Pelatro would still be undervalued as its enterprise valuation is only 1.1 times forecast revenue for 2022 and a miserly 3.7 times historic cash profit, respective discounts of 66 per cent and 74 per cent to finnCap’s Tech 40 Spec Software index. Buy."
And a very positive online article in the IC to boot.
'Even if the share price doubles from here, PTRO would still be undervalued as its enterprise valuation is only 1.1x forecast revenue for 2022 and a miserly 3.7x historic cash profit, respective discounts of 66 per cent and 74 per cent to Finncapp's Tech 40 spec software index'
All very reassuring to long suffering investors in this company.
About effing time we had some good news here. Its been a painful one to hold on the way down. Still a long way to go to get back up!
The results are certainly promising but there is still a loss of 0.4c per share, albeit this is much less than last year. One may expect a significant rerating once (when?) the loss becomes a profit. Until then, the 8% share price rise at the time of writing seems to me to be a good reaction.
Sp decimated over recent months but muted response to in-line figures. Odd. Look out for IC update soon.
Well, good luck.
Thanks Silverknight for the info (sorry for late reply). I guess we can do is patiently wait ...
I've topped up today (showing as a sell). No nasties expected with results soon. From the current business model this is heavily undervalued (£9mill m/c). Expect a strong recovery from here.
Thought I would pop in to take a look. Not surprised. A dog with fleas. Perhapd they have just spent all the money raised so have nothing left to report?
Good luck with this one.
I rang InvestorMeetCompany who they use but they hadn't heard from PTRO. Their broker wont talk to retail investors. It needs addressing.
Hi, Anyone aware of any date when they may be published. Long overdue. Very poor comms.
Not good. Why hold this dog anyway?
Generally not a good sign but there may be a simple explanation. I emailed the company 6 weeks ago but no reply. Rude and bad PR.
Any views?
A lame dog doesn't grow sales fast.
Wasnt going to post here again but popped in to take a look. Appears I was right and still no sure way up. A dog with fleas. Good luck.
A few will nchor on the old price and expect it to return. It will just be a chance for others to bail at breakeven. a long way to go, a long time to take, better opportunities elsewhere.
typo - considering the customer *Logos* they already have
I just get the feeling there is a fundamental sales force / biz dev issue that is not scaling the new 'wins' fast enough. Having worked for a few US IT companies, I cant help but compare approaches. I think they are lacking an experienced, motivated and hard charging sales force to get the tech in front of as many prospective clients as possible.
The ARR is in USD but the m/c is in £ but even so the rating is unduly hash. Updates in a fragile market need to be very upbeat but ours was pretty bland. I still think this is a great entry/top up opportunity.
Agree, not a flash update with optimistic buzz words however the figures speak for themselves. Consistent rise in reoccurring revenue which is now over 6 million… half of the current Mcap. Other revenues exist alongside plenty of cash in the bank. Looks good to me.
its been a frustrating couple of weeks. was hoping for more information to be provided in the trading update, but the values provided should not be resulting in a share price decline like this in my opinion. ARR continues to increase and annual performance in line with expectations yet the share price is almost half of what it was at the time of HY report release?
Nothing significant in the market environment to impact Pelatro specifically, or any worse than others, recent COVID wave would have a lower impact on Pelatro than most other companies.
Long term hold, can not see price going any lower myself.
not for long mind
had to conclude that this is yet another one of ST's "crackers"
Nice rise today, hopefully positive news coming soon. Expecting an ST article to return us to reiterate a buying position which would carry us back to mid 40s before YE results.