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Ye not great. I sold out at a substantial loss here. Maybe they’ll release good news in the coming weeks but too risky for me now. Fundraise is inevitable. Annoying they couldn’t get one of these deals done sooner as that was what I was hoping for.
Unfortunately today's RNS essentially says they will run out of cash in the next few months, despite the CEOs positivity.
See excerpt below..
Consequentially, the Company expects to report revenues for the year ending 30 April 2024 in the range of approximately £2.8m-£3.0m, with a corresponding adj. EBITDA loss of between approximately £2.6m-£2.8m. Cash and cash equivalents as at 29 February 2024 were approximately £800k. The Board continues to closely monitor cash to ensure that the Company has sufficient resources to execute its growth strategy. Cash burn and customer acquisition cost are expected to reduce as the Company converts its pipeline in the coming weeks and the Company is seeking to improve contract payment terms to include upfront payments.
Been buying here. Interims weren’t that impressive tbh and cash burn gone up. However ceo said this,
“we have now established the foundations for us to accelerate growth. We are currently in discussions with substantial partners regarding some significant opportunities, which reflect the recognised strength of our offer and are testament to our renewed go-to-market approach. We are also very excited by the innovative work that we are doing with generative AI - which is being undertaken alongside our customers to ensure our product is designed to meet their exact requirements. As a result, we continue to look to the future with confidence and look forward to updating the market on our progress“
Im banking on there being some near term newsflow being the catalyst for a good rise and it’s worth the risk at this price imo.
Started: tom2468, 9 Jan 2024 15:04
Last post: tom2468, 9 Jan 2024 15:04
Just checked the Bid here they are gagging
Unfortunately cant buy!!
Wonder why?
Started: tom2468, 5 Oct 2023 10:35
Last post: RazzaB, 5 Oct 2023 14:16
Any chance of recovery?
whats the cash balance??
Just announced
fallen too far this
Started: joseywales, 19 Jul 2023 12:50
Last post: ripley94, 4 Oct 2023 20:00
Down 23% to 14.5p today .
The recent placing at 0.5p must be equal to 25p.
Only about one month ago.
Down 23% to 14.5p today.
looks like a falling knife lucky miss here.
Had an order on for 20p on 28th one week ago , reduced from 21p days before.
Hope Kubrick hasn't bought too many Bentleys
My experience with badly managed companies that pull this trick is that now the SP has a whole lot further to fall!
Consequently, the 2000 (was 100k) sale this morning was me throwing the towel in with this crap.
Good luck to all.
New Consolidated Ordinary Shares at a conversion ratio of 50:1 , Today up 5,547.06% adjustment.
Started: Theai, 4 Oct 2023 13:02
Last post: Theai, 4 Oct 2023 13:02
Enough is enough - time for the CEO to go.
Started: Graham10k, 9 Mar 2023 15:34
Last post: Coldspy, 10 Mar 2023 00:02
Things seem to be stirring up at RDT with a chunk of activity today. Large trades of 3,000,000 plus others showing as sells but more likely buys. Interesting.
If the senior management had a grain of confidence in their actions they would be hoovering this stock up. We were all lulled into believing the emperor had clothes on when indeed he was completely naked.
The lunatics have taken over the asylum – comes to mind. What an extraordinary disappointment. They are back to where they were in 2015, focusing on the space the company was founded on. Yet there are 3 times more shares, less cash and is losing more money. How this Board of Directors can survive beggars belief.
Started: Theai, 12 Oct 2022 09:11
Last post: Theai, 28 Oct 2022 17:41
I find the continued delay of the results worrying. It is not how a board should behave and the advisors need to get a grip. I checked the AIM rules and they clearly state that results are to be posted within 6 months of the end of the year. They have an April year-end and it's Friday 28th October. So they are leaving it to the last day - Monday 31st Oct. I shall reframe from writing more as I am beginning to fume....
No problem, but I do wonder how good or of value it was?.
Remember, they only paid 47K for it and although a revenue contributor and would have appeared to be in the right space, they did flag that it had to go!
I'm no apologist for the management, but I don't mind playing devils advocate!
Sorry - I stupidly didn't see that! Incredibly low price for an established SaaS business in a growing market. So frustrating. Thanks so much for highlighting that.
Regarding the sale of Langdon, it was clear who bought it, "The Company has sold the IP, software, assets, client list and contracts associated with Langdon to Langdon Customs and Excise Solutions Ltd, a provider of duty management systems"
It will be interesting to see how much cash is left, as the Broker note from summer forecast £2.4m!
I'd bet it is less than that though, when the results are released.
Agree, the issue is there is no good news.
Sale of Langdon for 100k after is contributed over 800k to the company's revenue numbers.
Slow sale of the second business, obviously DD issues.
Revenues falling like a stone, ARR dropping along with it and nearly out of cash.
No wonder they will delay any numbers as long as they can, anyone masterminding this managerial s**t show would.
Started: Theai, 3 Oct 2022 12:19
Last post: PrivatePunter, 3 Oct 2022 14:17
Agree, a catalogue of errors and scant thought for investors.
It would be interesting to know the thoughts of the major holders though, particularly Gresham which sits on some 28% along with Amati also with a sizeable holding and Octopus too. I felt that they must have been instrumental in the fast tracking of the current CEO, so one would assume they are comfortable with the direction!
Still of the view that it will be acquired itself at some point, but we will see.
Results due are unlikely to read well as we know, but it'll be interesting to see or hear, on what current prospects are like and expectations.
Completely agree with you. You are more forgiving - I appreciate the CEO may not have his prints on the murder weapon but the Chairman and Non Execs do. I believe in a tiny little company like this the board are accountable and in my humble opinion has let us all down and should probably go.
Not at all, appreciate your view.
My point was, that it perhaps shouldn't be surprising to see the price achieved through the sale, given the sum paid and what the CEO (who didn't buy it) had previously said about it not really fitting with the core business.
It is a shame as I think a lot of us thought it should be thriving in a post Brexit environment.
The other business to be disposed of should, one would hope bring in considerably more, given the price paid being £2.6m.
On the positive side, new business won has been with sizeable players and territories away from the UK and the route to go via partners looks a sensible one.
You are right we paid less than £50,000. BUT "For the year ended 30 April 2022, the Langdon business made a loss before tax of £129,979." - two or three-year holding period - combined losses of +£200,00. That came out of shareholders fund + £50,000 cost = + £250k loss. They sold for £100,000. Unless I am stupid which may well be the case and for that please forgive me.
Theai, RDT paid less than 50k for Langdon, so I don't know where you get the idea it was a lot more?
Started: PrivatePunter, 11 Aug 2022 14:58
Last post: Brewman777, 27 Sep 2022 18:03
Oh no what’s been going on here then! Why the sudden drop? The SP has been constant since that contract win in August in fact I was starting to think there may be light at the end of the long tunnel? But something must be happening, insider knowledge? RNS tomorrow? Whatever it is it looks like more bad news. Hope I’m wrong.
ATB.
I have been a holder for some time and have the scars to show for it. Increasingly, I believe the board is at fault. Making a series of wrong decisions which have cost shareholders dearly. I look back at the beginning and the company was growing at +25%. Missing targets but growing driven by the founders. It would seem that those that were at the helm then were punished by being removed and replaced by so-called industry Pros - twice! The latest lot seems to have removed all that DNA and not surprisingly are now struggling to make headway. Certain board members have been in place for all this journey whilst others for a lot of it and need to accept responsibility for this. The market is white hot for procurement technology and we are not benefitting.
Seem to be getting on top of things at last, hopefully seen the bottom & can now attract
some big clients with the new improved offering to push the company & share price forward.
Started: thehierarchy, 19 May 2022 22:18
Last post: Theai, 26 May 2022 08:53
I agree - Great names and reassuring - I just hope it is not false comfort. The lack of any news during a period where supply chains are being transformed and there are large amounts of VC and PE money flowing into this space I believe is of note for a public company in this growth sector.
Worth recapping on who holds what here.
Some decent names who backed the last raise and appear to remain on board!
Shareholder Origin Holdings Percentage
Gresham House Asset Management Ltd UK 96,275,000 28.33%
Amati AIM VCT PLC UK 35,274,692 10.38%
Canaccord Genuity Group Inc Canada 35,347,000 10.41%
Octopus Investments UK 14,300,000 4.21%
Hugh Cox UK 11,741,784 3.46%
Started: Theai, 19 May 2022 10:03
Last post: Theai, 19 May 2022 10:03
I watch the constant trickle of sales and deafening silence with concern. I am surprised the new management aren’t trying to firmly establish themselves and win the support of us shareholders. I hope this board hasn’t broken why this firm listed all those years ago. Let’s hope.
Started: Theai, 13 Jan 2022 08:51
Last post: bbolt, 17 Feb 2022 13:45
Totally agree with brewman777, CEO has not impressed, came as a “Growth” person. We get a reduction in revenues of 20%, we get 80% staff turnover, including all the execs and founders, who obviously saw the writing on the wall. Why aren't there any new faces on the Board? The burn rate is over £3M greater than last year. This £3M has been used to achieve this poor performance and worse, is forecasting a lower ARR at year end. It would be nice to know how much of the ARR reduction is within the two non-core businesses, which are up for sale. What is the Chairman doing ?
Brewman777 - I think we all "hope". As I am sure you know by now as an investor when we revert to hope - it's not a good place. I think the board has a lot to answer for. The Half Year statement was an example of the CEO trying to say the right things BUT for me, they were the wrong things - who is advising him. For me the worst heroic claim was that he enjoyed 80% employee turnover! It takes years and years to build teams and an equal time for those teams to have a meaningful impact. You cannot paint or buy a company's culture - you have to live it and it takes shape over time. With this in mind - if you look at the CEO's Linkedin profile he has rarely spent more than two years in roles - not a man with a track record of building cultures and teams from the ground up. I wish them well and I remain hopeful.
This share is a constant disappointment! Held for three years and am well underwater!
Hopefully the turnaround starts now!
good summary Theai. Looking back ARR was £6.3m in 2020, £5.6m in 2021 and now expected to be £5.1m at 2022 YE (30/4). So essentially a 10% reduction for each of the last 2 years. Really poor.
I am a little surprised this hasn't dropped more today as there were few positives in this RNS, however, hopefully the turn around can start from here.
The large placing last year was in hindsight fantastic timing so at least the cash position is healthy
Some of my concerns have sadly been proved right. The board is admitting that the last CEO made two now redundant acquisitions which required diluting the shareholders by 240m shares of the 340m now in issue. However, what saddens me is the CEO spouting off about covid delaying matters – this is nonsense – RDT’s sector has strong demand. Look at the huge increase in private and public money pouring into this space and the corresponding increase in revenue of those companies – Coupa, Simfoni, Sievo & Suplari was recently bought by Microsoft and Proactis which is quoted on AIM has been bought by Pollen Street etc etc The company has gone back to where it was 4 to 5 years ago. The board have failed us. There is something that is wrong at this company's core - it is not connecting to the momentum. The problem is NOT all product related - that is nonsense again - you can have the best product in the world and not sell one license - this company boasts massive logos they signed up years ago - it must be the new culture and leadership. If you look at the numbers and ARR – they are losing clients! I would go so far and say the CEO is coming across as a product manager NOT a growth leader.
When the company was listed it was growing quite well. This stock is dead in the water unless there is a fantastic spark that re-lights the fire - it will need more than an up graded product and a polite comment from an existing client or two.
My main concern is they may be missing the boat - with strong demand in the market where new customers will adopt these smart new technologies for 5 years before changing again - the window of opportunity in key accounts is closing. You need to be ahead of the buying cycle to get a chance to win the account. Having invested so much in a new product - Speed is critical.
So although I admit that my comment about the management positioning RDT to take it private was completely wrong (PrivatePunter was right) – I do think RDT is FAR more valuable being private. If ARR is £5m – then in the private market that equates to £25m to £50m in equity value – I will take that any day of the week than watch this languish for the next 4 or 5 years.
You can play it back here https://info.rosslyndatatech.com/agm-meeting-2021_download-recording
I honestly thought it to be mixed at best. The board looked somewhat uncomfortable, uninterested and unprepared. Although you cannot see the investors on the recording, come across as being engaged and energized. I am not sure about the answers given - posture and manner in which they were delivered appeared defensive and uncertain. It lacked energy and excitement. Referred to how big companies do things and best practices - I completely agree but small AIM companies are not big FTSE companies - they need to be nimble and slightly unconventional at times.
Then the Chairman fact checked the CEO to say he was wrong about not having a partner manager, they did have one - yet earlier the CEO said partners were strategic - he has been chief revenue officer for just under a year and ceo for half a year - and forgot he didnt have a partner manager? Weird.
I thought the three were struggling to believe in their story and as a result were and looked uncomfortable.
BUT underneath this, there seem to be one or two good businesses in good markets that are growing rapidly !!! We just need to hook into those tailwinds.
Started: PrivatePunter, 30 Sep 2021 22:15
Last post: PrivatePunter, 30 Sep 2021 22:15
The results were already flagged, so no surprises, other than the marked unwelcome reduction in ARR!
I think it is pretty clear (IMO), as I previously mentioned that the real movers instigated the changes.
So, I can't see how any blame for a past performance can be laid at the new mans door, given that he only took up the mantle just five months back.
Talk of going private seems bizarre to me too, no gain for Gresham, Amati or Octopus, far more likely I feel for a take out.
I'm sure if I say it enough it'll happen!!
Until then, with some hefty options in place, I'd guess the new man wants to kick off from a low base and under promise and over deliver. Strong balance sheet provides for time and strength, but clearly positive news in the coming months are key.
Started: Theai, 30 Sep 2021 09:46
Last post: Theai, 30 Sep 2021 13:49
I think the meeting with Gresham will be without coffee. The market is strong at the moment. Shandypants2 is right - if the trading period they are in now was good then this was a super op / platform to bang the drum. No management team would not grasp this chance.
But there wasn't much in the forward looking statement and YE is only 1 month away so the last 5 months trading has clearly not been great too.
Even comments about reaping the benefits in Y23 are a tad worrying IMHO.
At least the cash position is healthy
The problem here is that the results are from five months ago and the last trading update is ahead of it. Share the concerns over higher costs and loss of reoccurring revenue but this is misleading in many ways given the CEO's short tenure. He needs to up the PR big style...Gresham have confidence so they know lots of things we do not and that needs to change..
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.
Started: shandypants2, 30 Jul 2021 15:10
Last post: deepjoy, 29 Sep 2021 13:13
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.
Started: andinio, 16 Jun 2021 11:46
Last post: Theai, 17 Jun 2021 13:14
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.
Started: DaddyAIM, 4 Jun 2021 09:16
Last post: Brewman777, 4 Jun 2021 16:56
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.
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
Started: Dad413252, 4 Jun 2021 10:47
Last post: Dad413252, 4 Jun 2021 10:47
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
Started: EquityDevelopmen, 4 Jun 2021 08:46
Last post: EquityDevelopmen, 4 Jun 2021 08:46
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.