Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
Covmutley, ITX's customers are very sticky, and it's a market niche that will only increase moving forward.
Expect revenues and margins to increase substantially over the next few years.
The question is not whether ITX will be successful, it's just a question of PIs positioning themselves before take off. Some think they have time before the big re-rates ( and they have been right so far, in a very risk-off market).
But as the market bottoms and starts to recover, stocks like ITX (pre-profit but on the cusp of profitability), with bombed-out valuations, will be the ones with biggest multibag potential.
I'm not taking the risk of missing out on the growth, I can be patient.
Hi AJP, the gpm at FY22 was approx 27%. The recent TU said margins are improving, so I went with 30% gpm.
My calcs assume no other margin improvements during the next 2 years, as I am looking for a baseline scenario.
Of course any improvements from e.g. reduced global freight costs, or scale, will only improve the bottom line.
Based on the recent Trading Update, and the revenue estimates given by the company for FY23, 24 and 25 we can make some armchair forecasts.
I will estimate conservatively because this is in keeping with the way the board report, so this will assume no major improvements in margins, and (barring any foreseen disasters), this should also be the "worst-case" scenario:
FY23 - based on at least $7.7m revenue: loss of $1.5m
FY24 - based on $9.5m revenue: loss of $0.9m
FY25 - based on $12.5m revenue: profit of $0.5m
As of June 30 2023, ITX had $10.9m in cash, so plenty of runway to see the company through to profitability, with plenty of spare cash for expansion/investment etc...
It's good to see the level of confidence in SCE's Open Offer. £27m raised, versus £20m they were aiming for.
https://www.lse.co.uk/rns/SCE/result-of-open-offer-05tqj6w00zhm7lt.html
I have a modest holding, and a 1:12 subscription didn't net me many more shares, so I applied for quite a few more and got them all.
The Offer shares go live on 19th December, so I'd expect the share price to remain sluggish until after Christmas as PIs cash in their 5-10%, but after that (fingers crossed, touch wood, sage the room, avoiding ladders, black cats and cracks in the pavement) the share price should rise significantly from 10p over the next 12 months.
It was only July that 4 board members put in a hefty chunk of their own money, buying shares on the open market at an avg of 32p.
It's interesting to note that the share price has remained higher than the Offer price even as the Institutional shares have gone live, suggesting that they aren't being flipped significantly.
The ITX board has always been in the under-promising/over-delivering mindset, which is good. There are a lot of AIM small & mid-caps out there not hitting their targets and getting battered in the markets for it, but ITX have been more conservative (lower case "c") than others. In a world of profit warnings and missed targets, an "inline" TU is a win.
Now that the post-Covid bottom has (probably) been hit, and ITX has come through it as a company relatively well, it is now time to start the effort of getting the name out there, giving the forecasts more visibility, to give a bit of momentum to help the share price rise alongside a series of (imo) increasingly positive updates that will come out during 2024.
The hatches had been battened, and it's time to unbatten them. In a contracting market, no one would heed positive brokers' notes, or they'd sell out and take their 10% as we've seen in a every other company in the markets at the moment. But ITX is well on the route to breakeven and then profitability, so it's time to add some promotion and some noise to coincide with the upswing.
A great update and I added again today.
What the RNS doesn't tell you, but you'd know from listening to interviews with/about the company, is that their payments for the Ladders Free (iirc) buy out will come off the books in June 2024, causing a healthy boost to the bottom line even if nothing else changes in the business.
I am anticipating 2.50 in 12 months time.
These are usually automated trades, sold from accounts to cover monthly fee charges.
The fine print in my SIPP says that if I don't have sufficient cash to cover the monthly fee, the provider can sell enough shares to cover the cost.
Other than that, or algo-bots manipulating/testing prices, I can't think of a real* reason why someone would sell a tiny number of shares.
(* = the mythical "1 trade" is not a real reason).
It was an RNS Reach, rather than an RNS, which was a clever way of getting this message out.
The threshhold for releasing a Reach (vs an RNS) is much lower, so the board used it to announce 1 billion ad impressions, and then "while we have your attention", they snuck in the unofficial trading update :)
Hopefully the share price bottom is now in, and we can look forward to a steady and sustained rise over the coming quarters.
The H1 Trading update is out today:
https://www.londonstockexchange.com/news-article/SYS/trading-update-notice-of-results/16190460
On the surface, this looks like a TU that the current market is going to hammer. Revenue down, cash down, debt up.
But below the surface there are some interesting things going on. The tough economic climate caught up with SYS, but it seems like the new Chairman Heejae Chae is a man with a vision.
The new board appointments (still no CEO? but it seems Chae is fulfilling that role under the title of Chairman) are amazing, and most likely a result of Chae's connections.
A big mention of AI (including appointment of Chief AI Officer), which is a new one for SYS Group, and it's definitely a hot buzzword right now, so we'll have to wait until the Half Year Interims are published on 27th Nov to find out what it actually means.
Some buying pressure recently, pushing the share price up, despite the rest of the markets seeming to crash, makes me wonder who is behind it.
Welcome aboard! Sys Group seems to he a sensibly managed company in growth mode with sticky high margin recurring revenue.
Heejae Chae certainly sees something he likes, and he has a great track record.
It's a quiet stock flying under the radar of the herd. It's a good time to get onboard.
Not much stock around and someone is trying to get their hands on all they can.
The upward pressure on this, while everything else in the market is crashing, makes me happy to hold and wait to see what happens.