focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar 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.
Yes $ in which case is doing very well against the £.
£8m or should that be $8m
We only have 17 million shares. If £8 million Profit Before Tax is reached that is nearly 50p a share.
Fair enough - and yes it is annoying when LSE refreshes and deletes before posting! Wouldn't read too much into market reaction today. Great news often results in exactly the same reaction at the moment, with very few shares gaining any traction.
Not just what I was expecting but the market agrees as well. ( I was writing a long answer but the content disappeared)
A proportion of their revenues depends upon housing starts in the US. Although these picked up in Feb they dropped back again in March. It will probably take a decrease in the interest rates before these really start to show a sustained increase so I think this is when the pace of growth will pick up.
Sept 2023-
'The sharp rise in interest rates did adversely affect revenue growth, particularly US corporate store sales as new construction slowed dramatically. However, the biggest impact was concentrated in three regions: Texas, Kentucky and to a lesser degree Florida. In these corporate locations, sales declined by approximately $1.5 million versus 2022 1H sales'
Taser, what were you hoping for in the results? They are showing consistent and steady growth on each trading update so not sure what you mean? Are you expecting explosive growth? Looks a pretty good update to me, the only downside being the debt that has risen presumably with recent acquisition. Would like to see that paid down and get back to a net cash position asap before purchasing any more.
New broker has clearly controlled the enthusiasm of the CEO (note it’s simple - less fanfare tone) and put out a simple market trading update to set the tone. Let’s see the how the brokers advice / direction manifests from here.
Trying my patience here. I thought the update was rather low key. If that was all guns blazing I think they were mostly firing blanks.
We were initially told the benefits of the investment programme would be H2 2023. This seems to be a moving target without any acknowledgment or honest update as to why. We need an understanding of the ROI and projections. I am anticipating quarter on quarter growth. So give the market your story and backed up with the detail.
Still a strong believer this will flourish but the company has to help itself by selling the investment case with actual numbers. A company presentation would help.
This is 1 quarter. We are on target for a record profit of £8 million year end without the added new contracts.
Profit Before Tax (Statutory) grew by 14% to $2.0 million (Q1 2023: $1.75 million
Not disappointed either, need more time to see through the potential of this little player.
Was hoping for a bit more growth, but the results seem ok.
Bit of a jam tomorrow update .
I strongly suspect we will see all guns blazing as new broker, new year, new fanfares (well the CEO likes a trumpet). Will it stack up re capital investment - let’s see - however I give it a positive nod, that’s if they can control staff expenditure.
Well we should get an indication on how well things are going on Wednesday or Thursday. I am hoping that there will be good growth from Qtr 1 through to the end of year as prior (and present) investments start to be seen in the PnL
Grant Thornton in as new advisor, strategic play for institutions / funds or early preparations for a potential sale to PE?
Q1 figures next week - lets see if the investments in plant, materials, manpower, tech have finally provided any noticeable tangible difference.
Nice research, and it's definitely on the rise, but perhaps not from such a low base at purchase (Nov 2021)
RNS released at the time.
'Financially, despite Covid-related restrictions, WS executed approximately £0.95 million of sales and £0.25 million of profit before tax for the year-ended 30 June 2021'
Since buying UK-based WAT-ER-SAVE SERVICES LIMITED Turnover in December 2022 has increased from £406,591 to £1,487,885 and profit has increased from £116,550 to £462,362. That's up 296%. Companies House https://find-and-update.company-information.service.gov.uk/company/02498598/filing-history
‘Thirdly, as previously announced, the Group is pleased with the commercialization of its Ditch Lining water management system during Q4 2023. We are gathering performance data and will be updating the market on its sales pipeline during Q1 2024’. From Yearly update
We are missing a promised update and get the feeling an update on Salesforce costs would not go amiss and of course proof that the investment strategy is paying off. There was also a mention of investing in their online presence boosting investor relation and communication again I think investors would quite like to see this too!
I am confident in the company but the updates and PR need addressing.
Thanks for sharing your research, appreciate it Taser.
Something must be going on. Steady buying surge. Q1 numbers not due until May. Lucky I topped up earlier in the week.
Just to add I expect rate cuts will hit mainland Europe and the UK ahead of the US (unless Biden has more underhand influence than I believe). This may well give a boost to small caps over the ‘scary’ summer months. It is definitely been my intention to roll an increasing amount into the sector. Fingers crossed
This share became very popular with a more speculative section of investors. Along with a credible growth forecast and extreme illiquidity due to the very small amount of shares in issuance this lead to significant sp movements. These movements attracted others and a race to the top ensued. Suffice to say it wasn’t sustainable.
However, fundamentally this company is on a very solid footing but maybe both growth expectations and profits were not matching the top market cap. Recently, in my opinion the 2 year investment plan to integrate Sales Force software and build a central hub to both allow cross selling opportunities through connected data gathering and to train more technicians is a bit behind schedule which has adversely impacted market perspective. The investment has not really been showing any tangible results and some have lost patience. But with that road finally coming to an end by the latest June I very much believe we will see the benefits and rise in market awareness in H2.
This share moves rapidly and consistently upwards and downwards. £3.20 is the low baseline. A tick up today should see momentum build this month (depending on wider market impacts). The market place is potentially huge and the savy might just begin to believe that the investments will bear fruit. The CEO is very astute if a little quiet. Targeting a lot higher and confident this will play out and reward those that recognise the value inherent in this company’s present position
Unaware what the reason for the volatility here is. Lack of dividend (CEO prefers to invest in the business which I'm fine with) or possibly the high volatility has put investors off. Its is a solid growth business that has made no major errors since I started watching it over the last 4-5 years. Management seems trustworthy and is well invested himself. I top-sliced at £4 recently and will probably top-up again soon at this level. There are no red flags for me, it's just been caught up in the general AIM slump.
Hi Allessandro, no this forecast was not before a share split. It climbed to not far off that share price, and management cleverley raised capital at the high share price before it came back down.
Hi Taser, I am new to this board. Just came across this business, what is the most important reason why this is beaten down so much? Macro does not explain it for me and fundamentals also not.