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I must admit I was surprised to see SAAS on paper fall yesterday but nice to see it rising again.
https://twitter.com/surprised_trade/status/1488834337290260480
added to holding 140p....arr 31/12/2021 was £39.0m, +9%, Net cash £13.4m, new 5-year agreement with JCB, leading to a 10% increase in the number of like-for-like subscriptions
..today at IPO price. Could help it...Relatively tiny holding, as I'm still a little unsure of their intentions.
But the business is solid and should be good value at these prices.
Punt on Joul also.
GLA
Almost touching it now.
Tempting to pick some up, if it drops lower.
I would like to know more about planned acquisitions, however. Critically, will they dilute the shares etc.. if they go after something more expensive than perhaps originally planned.
https://twitter.com/surprised_trade/status/1486241601441742850
rns - directors buy on the drop
I took a look at today's RNS and thought that it read very well. I am very surprised at todays drop, albeit there is such a big spread.
Thanks.....looking at my watchlist it is a sea of red so perhaps it will respond more positively over the week
Hi dc2, broker note just focused on earnings and revenue increase along with growing cusomer base, not that you would recognise it from the sp drop ! lol.....here is the only bit I omitted ...
' overall customer churn remained exceptionally low (at <1%); several customers signed extensions and expansions (most notably JCB) and furthermore; Microlise continued to add new customers like Euro Car Parts and Sutton Tankers. It’s particularly interesting that these wins were not just in the UK but also in Australia and France - where Microlise recently won Metcash Campbells (a food wholesaler) and also a “major international bakery company” – an indication that international growth is picking up and could be a long-term growth driver.'
Must admit, surprised (sorry) by the drop. Did the broker note extend to any take overs or was what you posted the full information? I say this being a Trakm8 holder (not looking to ramp) and Microlise hold 20% (not saying they are a suitor). The TU did mention ongoing connections in this respect (not naming any companies) but wondered if the broker got a better feel for it.
https://twitter.com/surprised_trade/status/1485581597575426051
broker forecast adjusted down revenue by just 5% with upgrade potential when supply chain issues ease #SAAS is profitable, growing & cash rich
The outlook suggests a climb from today's sp ...
Broker note out ...
A solid update reveals that trading to Dec-21 is expected to be in line - both on revenue and EBITDA, while FCF should be materially better. This implies +13% organic top-line growth to £59.1m (on a 12mth basis) most notably driven by resurgent hardware sales (+20% y/y) as trading recovered strongly post Covid. Meanwhile, ARR continues to grow – now £39.0m, so +13% annualised since June. Driving this, SAAS added >65 new customers, whilst also grew key relationships like JCB, meaning the Group’s subscription base grew 10% to 0.55m. EBITDA is also better at £7.6m (vs. £6.5m in cal’20) despite higher S&M costs to drive international growth. The strong aforementioned OEM progress, as well as improved cash collection, flowed through to FCF, as y/e net cash of £13.4m implies £6.1m FCF (materially better than £3.4mE). On outlook, SAAS continues to see a “healthy pipeline”, though caution that supply chain challenges could last longer than expected. In response, we therefore trim FY22E&23E – believing that c.10% revenue growth is now more realistic, while also offers upgrade potential should component shortages become less acute.
Microlise has become the UK market leader as it offers an unrivalled suite of mission critical logistics software to the largest (and most complex) operators, and together with ‘network effects’ and excellent customer service, more and more customers choose to join Microlise every year. In addition - by upselling and cross-selling its ever expanding product portfolio - Microlise tends to increase its penetration with existing customers and in-so-doing, typically achieves NRR well above 100%...
Offering solutions that unlock efficiency, save costs and address growing ESG considerations, we continue to see a very healthy demand environment across Microlise’s current and prospective customer base, meaning the long-term picture remains very encouraging. This said - with hardware sales still key (27%/sales) – prolonged component shortages have become a constraint and an unavoidable challenge. As such, we have taken the prudent view to trim FY22&23E sales by 5%, with this flowing through to EBITDA and FCF.
Within this, recurring software revenue (which is increasingly hardware independent) should fare best – we revise this down just 300bps ~+13% y/y growth in ’22.....with upgrade potential should component shortages become less acute.
https://twitter.com/surprised_trade/status/1485517353479716870
rns - arr 31/12/2021 was £39.0m, +9%, Net cash £13.4m, new 5-year agreement with JCB, leading to a 10% increase in the number of like-for-like subscriptions
looks like we have some attention today :-)
looking at the decent buying over the past few days, it looks like someone is stake building, courtesy of a friendly broker :-)
Wonder what's happening on this front, given that this was the stated reason for coming to market? In fact, the CEO suggested that they already had targets. One starts to wonder whether the negotiations are going to plan.
https://twitter.com/surprised_trade/status/1447835099932860418
essential tech for HGV fleets to maximise supply chain issues etc. Customer base includes the biggest names DHL, Tesco, Stobbarts etc
Actually, surprised, I wasn't consciously promoting Trak, not much point anyway trying to do that on a board as sparse as this one! And I'm much less bullish about Trak than some out-and-out rampers who see it as a 20-bagger just because it's "in telematics". But after a pretty lean time in recent years, it does look set to come good, so I'll be sticking with it, while you stick with SAAS. Good luck to us both!
with respect Pianista, that was a decent attempt at promoting your own stock, lol..however, again with respect we all have differing outlooks and views and it's not necessarily one better than another, in addition to be fair Trackm8 has not moved in two years, trading around 20p or below, having fallen from over 100p and not recovered......Good luck with your stock picks is us pi's against the market not each other.....I'll stick with SAAS for now :-)
I've no doubt it's an exciting business, but even at 150p, ie more than 10% above the IPO price, I would say it's all priced in, so I don't envisage any sustained improvement in the SP from current levels in the next 12 months. In contrast, I believe its related company Trakm8 is still vastly undervalued, hence a much better prospect in terms of SP appreciation.
https://www.investormeetcompany.com/microlise-group-plc/register-investor
well worth a listen, customer base, growth, acquisitions etc ;-)
https://twitter.com/surprised_trade/status/1443955288860672032
new hold.... UK’s leading supplier of software for HGV fleets, cash £9.7m, EBITDA2 £7.6m, HGV optimisation, fuel, drivers etc. an urgent need for hauliers etc. SAAS have 88% share of grocery sector, Customers include DHL, Tesco & Stobart
The share price had risen nearly 70% since listing so a pull back at some point was inevitable.
Seems to have stabilised now.
Hi there
Any thoughts on what has caused the drop?
...what with results being good and all?
Was looking to buy shares on a pullback but the size of it...thought I'd ask.
Regards
https://www.investegate.co.uk/microlise-group-plc--saas-/rns/interim-results/202109280700031367N/
Solid business with continued growth.
Wait until the acquisitions start
https://www.investegate.co.uk/microlise-group-plc--saas-/rns/interim-results/202109280700031367N/
Looks positive