RE: INVESTOR ⚠️ CAUTION NOTE RCFX v ALRT (LSE)5 Sep 2025 10:36
Hi Pedro, where is the company suggesting this could turn positive? Now we may not see eye to eye but surely you'll agree HH's comment that Octopus Investments sold out to "give retail a chance" is nonsense? Research from last RNS (which was frmo the company) shows me -
Revenue Warning: FY25 revenue now expected to be not less than £4.0m, down sharply from prior market expectations (~£11.5m).
Share Price Collapse: Shares lost around 50% of value post-update, dropping to ~24.5p, well below IPO price. Now 13.5p, even further below IPO price
Contract Delays: Several deals booked as FY25 revenue have been pushed into FY26, leaving a gap this year.
Sales Underperformance: Expanded sales team failed to convert leads into contracts at expected pace.
COO Exit: Co-founder and COO Daniel Clark is stepping down, citing sales and operational shortcomings.
SDR Fallout: The UK’s Strategic Defence Review (June 2025) has led clients to delay or cut near-term spending.
Cash Position: Company reported £2.6m in cash and receivables at 31 May 2025 — enough for working capital but not a large buffer.
Customer Hesitation: Even existing clients have slowed development and spending decisions, reducing short-term demand.
IPO Disappointment: FY25 is the company’s first full year post-IPO, and performance is already “significantly below expectations.”
Uncertainty Ahead: Management admits impact of SDR delays may persist for months, with no quick fix in sight.