The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
For a tiny company valued at just over £6 million with loads of cash in the bank, to be awarded contracts with the likes of microsoft etc by the US goverment certainly says something about the potential here.
Share price seems way to low-isa rerating due.
yep defo one for the watchlist
will wait till this spike settles before entry
should settle back down
This sounds excellent, very impressive for the company going forward.
I suspect the price reaction is largely a function of SIM being undervalued previously - the m/cap was less than the cash pile (and even now is still not much above it).
It's an RNS Reach as there's no specific financial information to validate the tests for a full RNS. An RNS Reach announcement is simply non-regulatory in that sense, but still significant enough to announce.
It's a framework agreement which acts as excellent validation for the company. And for a £7m m/cap company with $5m revenues last year and a £5m-£6m cash pile, even just $1m per annum additional revenues would go a long way :o))
SimiGon joins blue chip technology companies such as IBM, Microsoft, Oracle and Adobe as an official DoD ESI BPA contract holder
yep
and the blue chips will get most of that
anyone know how much cash they have left?
these spoofy rnss always seem to come before a placing
not sure its a 200m contract
The DoD ESI provides an effective method for approved software publishers, hardware vendors and service providers to streamline sales to the DoD ESI customers. The total potential sales amount for all selected vendors under this BPA is approximately $238.6 million over a period of 10 years commencing 1 April 2019.
Looks like Sim have been made an approved vendor with a potential for sales of 238 mill over 10 years
No guarantees on how much Sim will sell or margins on sales
Sounds a bit spoofy
The potential total sales of 200m is for all the vendors under the DOD ESI not just Simigon. No guarantees how much of that 200m they'll pick up.
what's the profit margin from those sales, that's what we need to know.
Blanket Purchase Agreement ("BPA")
Seems like an agreement to sell products not a contract with a set amount of revenue.
Wow this moved quickly. Damn
Is this an actual contract?
yup what am I missing?!?
Looks far to cheap
Agreed.
VERY encouraging news:
Https://www.investegate.co.uk/simigon-limited--sim-/rns/simigon-signs-bpa-with-the-us-dod/201904180700085573W/
"SimiGon signs Blanket Purchase Agreement with the US Department of Defense
SimiGon (LSE: SIM), a global leader in providing simulation training solutions, is pleased to announce that SimiGon has signed a Blanket Purchase Agreement ("BPA") with the U.S. Department of Defense ("DoD") Enterprise Software Initiative ("ESI"). Under the BPA, SimiGon and the DoD ESI have established agreed pricing and processes for government customers to purchase the Company's products and services.
ESI is an official DoD initiative sponsored by the DoD Chief Information Officer to both establish and manage enterprise commercial off-the-shelf IT agreements, assets, and policies. DoD ESI lowers the total cost of ownership across the DoD, Coast Guard and Intelligence Communities for commercial software, IT hardware, and services.
The DoD ESI provides an effective method for approved software publishers, hardware vendors and service providers to streamline sales to the DoD ESI customers. The total potential sales amount for all selected vendors under this BPA is approximately $238.6 million over a period of 10 years commencing 1 April 2019.
SimiGon President and CEO, Ami Vizer, said: "We are delighted to join DoD ESI under this BPA. Through signing the BPA, SimiGon joins blue chip technology companies such as IBM, Microsoft, Oracle and Adobe as an official DoD ESI BPA contract holder.
The BPA is another validation of SimiGon's technology, software products and business model as a viable solution for Federal agencies seeking advanced training and simulation solutions for multiple domains."
Looks like some stale holders got out yesterday, taking advantage of some liquidity/demand.
Anyway, for the record here's Finncap's update:
"Update and contract wins
SimiGon, the global provider of simulation training solutions, has updated the market on FY 2018; expecting to report revenue up 15% to c.$5m (2017: $4.3m) and a reduced adj. net loss of $0.7m (2017: $0.9m loss). As noted in the interims, the loss is partly due to a provision of $0.5m against a delayed payment from a civilian training customer. In operational terms the year was successful; SimiGon hit milestones on its strategic contracts including the IAF F-16 Maintenance Trainer program, logistics support on the USAF T-6A program and extending the UK Military Flight Training System program.
Looking ahead there is further positive news as SimiGon strengthens its relationship with an existing European customer through multiple new contracts totalling $0.9m over three years including licences, maintenance and support services for its simulation training centres. Our forecasts and TP remain under review until there is greater visibility.
? Strategic focus: This has been a quiet couple of years for the company. In that time, the management has nevertheless focused on three key operational areas:
? Delivering ‘Distributed Learning Solutions’ to core strategic partners worldwide, both directly and through its partners, now has training sites in North America, Europe, Middle East and in the Asia Pacific markets.
? Expanding market reach, to see utilisation of SIMbox technology in multiple domains such as maintenance training, commercial equipment operator training and research labs.
? Strengthening the technology, improving SIMbox capability; the graphics engine; simulation and learning management system; delivering complete VR solutions.
? Positive outlook: We are encouraged that SimiGon thus entered FY 2019 with more clients, more partners, stronger technology and broader adoption of SIMbox in multiple domains. This is a solid platform for growth and management expects to improve both revenue and profitability this year.
? Strong cash position: The company remains well funded with c.$7m of cash at the interim point and significant receivables to be collected in H2."
Finally some positive signs in today's trading update - and an $850k contract win too.
The loss for 2018 was much improved at around £0.2m, before the provision for the "delayed" receipt which may yet be received anyway.
Which means that SIM actually were at breakeven for H2'18.
SIM had $7m cash at June'18, so hopefully this has remained stable against the £6m m/cap.
The potential here in VR, training etc is obvious, especially given the blue chip client list, but management have to actually show they can deliver.
Perhaps 2019, with the transition to SaaS almost complete, will be a year of delivery in this respect.
SIM are certainly pretty optimistic:
"SimiGon has entered 2019 with more clients, more partners, stronger technology and much broader utilization of our SIMbox technology in multiple domains compared to any other year in our history. All of which serves as a strong baseline for further growth and management expect this to improve revenue and profitability in 2019."
Well, I have it so for now I'll hold it. Not the best argument!
Figures all look to me - almost figure-blind - awful. We're just off the lowest it's been since 2012. These contracts need to really produce the goods: but they do look good real contracts (if at least partially already factored in) and this is an important area to have a toehold in.
So it's another one of those ones that COULD happen. Maybe jam next week - if you're good.
The worrying thing is the question of what global circumstances would make this one fly? War?
Another contract win, this time for $0.92m, presumably mostly falling into next year:
Https://www.investegate.co.uk/simigon-limited--sim-/rns/contract-win/201812190700048975K/
Already factored into expectations, but the number of recent contract win RNS's gives hope that those expectations will be met. Not that we have any idea what those expectations are - Finncap haven't issued any notes since February!
I am a new investor in SIM, was researching a number of companies, mainly interested in the VR space. However, after a lot of work I was taken by this company and have taken a stake.
I was impressed by the level of customer, i.e. government, for such a small company.
Also, the market is exciting, with great growth potential.
I have been burnt by AIM a few times in the past, however mainly mining stocks, in bad jurisdictions (school boy error).
A further $0.5m contract win with the US Air Force today - interesting that the closing CEO comment looks forward to more such contracts with the USAF "and other Government customers"....I wonder in which areas of simulation/VR this might be:
Https://www.investegate.co.uk/simigon-limited--sim-/rns/further-contract/201810150700039516D/
Another new contract win - this time with the US Air Force in Europe - for the Virtual Reality De-Icing Simulator, again adding to confidence in expectations for this year:
Https://www.investegate.co.uk/simigon-limited--sim-/rns/contract-win/201810080700069896C/
"This contract is SimiGon's second aircraft deicer simulation contract win in the past six months and exhibits how the Company and its technology can be quickly taken up once new markets and applications are identified."
"SimiGon President and CEO, Ami Vizer, said: "This Contract award is a strategic milestone for SimiGon as it demonstrates the Company's ability to penetrate new markets and requirements for cost effective personal training systems. The SVADS emergence is part of the Company's vision to utilize SIMbox technology in multiple domains. We are very excited by this and will continue to push into this market with high quality deliveries of advanced training products for military and civilian aviation".
Excellent S1.1m contract win today, solidifying expectations for this year:
Https://www.investegate.co.uk/simigon-limited--sim-/rns/contract-win/201809260700069265B/
Note the advanced VR environment:
"The Contract includes the procurement of SIMbox-based T-6A training devices in a fully immersive, Virtual Reality ("VR") environment"
And:
"We expect this contract to lead to additional business opportunities in the IAF and the wider, fixed wing training market."
Yesterday's H1 results show a work in progress and bad news re a terminated large contract. Thankfully the m/cap here is only £7.4m, against which SIM still have a $7m cash pile. Progress is painfully slow, but losses are small/manageable.
This at least bodes well:
"the Company is confident potential new contracts will be realized during the second half of the year"
"SimiGon's technology, multiple recurring revenue streams, and new market opportunities has the Board confident in the Company's ability to achieve and maintain profitability and growth for many years to come"
There are plenty of reasons for optimism in terms of the company's growing - and range of - markets. Management have proven they are trusted and have been so for many years by huge multinational companies - yet they seem to be prone to regular cock-ups too.
I note that in terms of that large contract, "legal action has been initiated" and full provision made.
Been waiting for the right time years to top up my small holding. If the promised contracts come through and are sizeable, given SIM's illiquidity the resulting price movement would be pretty quick and sharp.