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I know I have been cautious in my thoughts but I didn't expect this. The rest of the sector is growing far faster and have not seen a material covid slowdown - if anything there has been an acceleration in demand for digitalization of procurement and supply chains. Reading this I come to two conclusions - the management/leadership is either incompetent (loss of clients, high employee churn and large restructuring cost - which sounds more like a ****-up for a company this size) or they are manufacturing a situation they can take the company private.
results tomorrow - fingers crossed for a change of sentiment
Super point of view.
I have a different take on this to Theai, in that my feeling is the major holders have been instrumental in the changes and the new CEO (elevated very quickly) has plenty of experience such as his time at Blueprism.
The CFO obviously received an offer elsewhere that couldn't be refused and I don't see his exit in the same context as the other board members who have departed.
The business appears to me to have lacked the drive to really deliver, although the Langdon purchase was clearly achieved at an excellent price and there remains substantial recurring revenue.
On that basis alone, the shares look deeply undervalued, particularly given the strong cash cushion and it would come as no surprise to see this taken out.
Results are out next month around the 12th September I believe and no doubt we will hear more then from the CEO as to the current trading picture and the way forward.
In the last Cenkos note the broker said "The Langdon customs product we believe is trading very well" which should surely have continued given the much publicised issues many businesses are experiencing.
The only disappointment for me has been a lack of contract news, although it may well be a case of waiting to wrap them up in the results.
Thanks for the reply. Overhang makes sense - Cox has over 11m share alone.
I suppose the only positive with the low price is that the placing shares at 5p can't be flipped for a profit. Many may be sitting on them in the hope that things will improve
I think the business is probably ok as they have said - dull but moving slowly along. My concern is the board room - CEO, CFO, COO and Hugh Cox the founder have all left/fired/whatever in the last few months. Leaving just the new CEO who was promoted from head of sales and hasnt been in the company long at all. So I recon the Chairman + Non Execs have lost control, they have no executive team to speak of with any track record and time in the company left. And if the departing executives have stock and are upset - they may be sellers. Not to mention the institutions who invested on the last round to support the team that has just left. There may be a large overhang of stock. IMHO.
Is this just standard AIM or is anyone aware of any issues? June update wasn't great, but wasn't a disaster either.
Surprised it's fallen to this level IMHO
Agree - if there was some new logo win news - momentum RNS - that would support the next move to 10p
Buys now in the 6p's and we appear to be clearly over the 6p threshold.
Published target price for RDT is 10p, although I consider that to be on the cautious side.
Nice to see recent rise plus buys entering @ 5.9p
Optimistic on RDT.
Woefully underwhelming statement! LTH and believe we have the right tech at a key time! Should be flying! Will continue hold but the BOD need to get out there and promote it. Proactive or Vox Markets Podcasts would be a start.
Agree - Covid and Brexit were catalysts for their two lines of business.
Back in January there was talk about some big new clients “ in advanced negotiations”
These materialising are what’s needed to underpin this company & propel it into the big time!
With the pandemic subsiding these companies should feel more confident to commit.....
Time will tell
This company has the right products and the right story at the right time - it should be booming. Covid is irrelevant. So this non-growth is a bad sign. I am still happy to hold these shares as a speculative longer term play (but will keep this under review) on the basis that they will eventually get their act together and deliver what they could. It literally looks like a double or quits bet!
yes it's cheap and trading at discount to peers but there is a reason... absolute circus type of stock... GLA
Good progress in product development, sales & marketing, cost control and Management: today RDT updates on revs +4% despite lockdowns, FY21 adjusted LBITDA in line at -£250k, and net cash £5.6m at end April ‘21.
Equity Development retains fair value at 10p/share, see new research note here, free access: https://www.equitydevelopment.co.uk/research/final-pieces-of-the-jigsaw-are-falling-into-place
As I mentioned earlier about my one or two concerns I think this trading statement may confirm them. The world's supply chains are digitalizing at a rate never seen before which is producing increasing amounts of data that needs to be processed coupled with the increased need for risk and compliance reporting. Why do they only advance by 4% which we all know will have required every last cent and penny to have been stretched. This is after two acqusitions, on their 3rd CEO and now the CFO resigns immediately after the last CEO is sacked. Sounds like the Non Execs should be put under the spotlight - executive management looks questionable. Yet the Founder Hugh Cox remains - what does is he doing? Back of the envelop assumptions - I recon no new core business is coming in. I cannot believe the Customs Software is doing badly so growing. So as one rises the other falls - which means there is churn in their core business which is also in a growth market. As I said when they stated they are investing in sales and marketing it will take a year to materialise we have a wait and the stock remains dull. BUT the board looks disfunctional. This was a growing business with a good reputation.
689k traded which pushed the price to 7
I was expecting news of contract wins as mentioned in the last update. Given this sudden news makes me even more cautious about them closing their sales pipeline, particularly as this has happened in the last month of their financial year.
Correction....Patience needed here.
Couldn't resist buying a few more here at 6.2 this morning. Would like an update from management but am confident they are beavering away and I need to keep patient. Long term still looking decent here I think.
The spread seemed to get bigger after the buys this morning with the buy price up to 6.45 soon after I bought but the share price showing at 5.85.
Agree re news and SP. I get cynical about directors talking about good pipelines. It is usually a deflection. We need to hear that they have converted these opportunities.
Lack of news hurting the S/P
Hopefully news soon, the half year report stats we are in advanced negotiations with a number
of large organisations.
Should be getting closer to some news...,
Agreed. I only have a modest investment here, just a toe in the door for now. Looks like being a slow burner but I'm feeling good about the long term prospects.
Like this share a lot will get noticed eventually re its re occurring business.