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Correction, net cash was £7.3m at year end. It's taken a hell of a wack
From FY21 results: 'At 31 March 2021 the Group has been able to report a much improved financial position and is well capitalised with a net cash position of £7.3m'
I think the market has taken umbridge at the fact that EBITDA is up but cash is down. Cash was £6m at year end so the VAT repayments don't explain it all. EBITDA doesn't appear to be a good proxy for cash flow. Perhaps there have been R&D investments (capex) into the software division that haven't been detailed? Perhaps it could be explained by movements in working capital but without an explanation there is uncertainty.
Okay so H1 revenue is slightly down, but margins up and EBITDA up.
You can buy at £1.32 currently valuing business at £31.4m with cash £4.4m and no debt.
Assuming H2 results are in order (and we know 50% are already contracted or renewals) then if the EBITDA rolls through into similar or better FY profit of £2.4m as last year, then the current p/e is around 11.25x by my rough and ready calculations.
Surely cheap and a takeover target at this level?
Disappointing for what is my largest holding. There was a very large H2 weighting last year, I had hoped it was a sign of revenue momentum. Unfortunately not the case. The words don't align with the numbers. I'll give it until year end since profits appear to have increased.
Probably the sensible thing to do 2phevs. Cant deny this is disappointing. "traditional quieter first half". Not very funny Mr Higgins. Not sure how they arrived at 19% higher ebitda and continued growth. They have good products and a good team. Just maybe companies are willing to cut corners at take risks on not buying cybersecurity. Must be many more than one university in need of protecting data. It still has value at his price but lets hope for "a traditionally 'stronger second half!
8000@136
Small loss this time but made more on the increase early this year
Looked through the rns a few times and nothing inspiring unfortunately probably why no one has posted on here about the update
GLA Shame about the board
NOT 'results - last year were out 22 October. Since they are only an update, is there a reason they are not out yet? Maybe this underperformer is in talks. Let us hope!
Analyst at Berenberg Bank have a BUY rating and a 12 month price target of £3.80 Mr mm thinks it's only worth £1.40 The company bought Brookcourt Solutions in October 2018 for over £30m.They have spent over £60m on acquisitions ... yet Mr mm thinks the whole business is only worth only £33m including over £6m cash. It should at least be double ie £2.80.
We should be due a H1 Update about now if previous years are anything to go by.
100% agree with your post - SWG is crazily undervalued.
I guess PI's are nervous as Board don't put out a lot of information, so share holders are left to stew, whilst the share price slips on no news, often on tiny volumes.
I'm thinking that maybe the RNS update is being held back because something is happening behind the scenes - eg takeover, acquisition etc.
Fingers crossed we get some news soon!
ATB holders
Rich
The company is only worth £32.3m today ... yet they have spent £60m on acquisitions ... Geolong Secarma Brookcourt SecurEnvoy. Brookcourt Solutions alone cost £30.3m. The company has over £6.0m in cash and is forecast to increase its revenue .. profits and cash for the foreseeable future. It is also close to making earnings enhancing acquisition(s). The shares offer significant upside potential. DYOR.
Maybe they will give this a boost next week. If not, this is takeover fodder.
With that volume increase in the last 30 mins of trading it would seem to me that the trading update will be tomorrow.Let’s hope for everyone’s sake it’s as positive as I think it should be.
Never too sure about these awards, nut none the less they continue to win them or excel at them. Perhaps they should consider merging with IGP. Both looking for acquisitions. Neither er appear to be in competition with Darktrace. Both have niche products. Similar cash balance. Both paid off loan notes. Both grossly undervalued. Looks like a perfect partnership to me
just topped up difficult to buy in one deal all time low almost
had a look back at the director dealings they are all on the list of major shareholders and they are owed roughly £3 a share very happy to below half that price overall bring on the results
Finally found a decent site for up to date holdings on Market Screener:
Significant Shareholdings:
Schroder Investment Management: 3,139,323 (13.2%)
Secarma: 2,922,925 (12.3%)
Philip Higgins: 2,197,350 (9.2%)
Dene Stacey: 2,104,166 (8.8%)
David Williams: 1,433,757 (6.0%)
Killik & Co: 947,940 (4.0%)
Steve Watts: 892,857 (3.7%)
Would expect a rally in the SP over the next couple of weeks leading up to the trading update.My 2 recent buys in last 20 mins showing as sells,let’s hope TU is positive and we can hold on to any gains made
o dear. Aim I seriously considering a top up! Either things are going drastically wrong. This are pretty small trades but their were some hefty offloads quietly earlier in the week. Just hoping for a cracking update when we're on a pe of 2
About 3 weeks to half year update. Hopefully it will be considerably better than 11 million revenue at the halfway stage when the sp was quite a bit higher and they held a load of delayed contracts. Pointless emailing because all they will say is they are not responsible for the share price. True enough , but they are responsible for RNS for some of these sales which should have been notified I would have thought, not that seems to bother AIM stocks
speaking of which ; two late reported sells of 100,000 @ £1.40 and 84,000 @£1.39. Someone selling then someone is buying. Cant think mms would hang onto this amount of stock or are they holding on to them for next update. Such a frustrating stock. Revenue is bigger than enterprise value and about the same as capital value. Quite absurd
Need Darktrace to take them over. Darktrace going up 5% per a day, on no news.
Added another 5000 shares today & hoping I've caught the bottom.
The acquisition trail seems to have gone cold which i guest has subdued share price optimism.
Will have to wait now for a trading update mid October to see if Sheerwater is following the trend of other cyber security tech cos & seeing increasing revenues.
Cheers
Added more 145p. Bizarrely I could buy at 145p and sell at 145.04p this morning!
Daft price with p/e 12x.
Agree about overhang - yesterday you could buy initially at 147.25, sell 147.0p, much tighter spread than shown on level 2.
However mid morning, the bid was dropped to 145p - seemingly without any major sells and you could buy £10K plus shares at 146.4p. Obviously someone had dumped a load or was selling in the background without it being declared by the MMs.
I fully expect price to be walked down by MMs so that they can blend in yesterdays big sell in as a "buy" at sometime over the next day or so.
Its frustrating as an Investor that share deals aren't more opaque - I guess we just have to read between the lines and understand the MMs little games!
Roll on next week's AGM - hoping for a positive statement over trading in H1
Another contract renewal for Brookcourt. Probably BT, as that s the only one I know of and 'a British Telecoms and Media company' is a bit of a clue. The problem I think with this company is the share will go nowhere without the much advertised acquisition being laid to rest. I don't know any other company that has advertised their intention so loud and for so long without actually doing it. It can only be that that has ****ed the market off as has their track record in dealing with other acquisitions, as did the placing when they gave such a vague reason for as justified as it may have been at that time. Get it sorted and hopefully we can move forward.