Member Info for fastduckharry

Nick Smith obviously wants to focus his energy on expanding Cordel's global reach, so probably a positive. The interim CFO John Andrew Davies has plenty of business experience, therefore no worries about that.

With regard to Robert Lojszczyk CFO retiring, it looks like he has ties to Australia, which possibly had a bearing on his decision. His retirement does not look like a rushed shock decision, note the handover period in April. It would appear therefore that Cordel just waited until a suitable replacement had been lined up before making any announcement.

A few notes on yesterday's InvestorMeet presentation.

Video as well as audio again as in October. Gordon McArthur, CEO and Fraser McDonald, CFO, were representing the company. Both appeared to be in good spirits, in contrast to the tension that was apparent at the previous presentation. With what is at stake for Beeks, that was understandable. Gordon McArthur, in particular, has had a plan, for where he wanted to take Beeks and now success is seemingly looming over the horizon.

Opened with a slideshow explaining the evolution of the Beeks' offering from Public Cloud to Exchange Cloud.

This was followed up by Fraser McDonald going through last year's numbers in yet another year of decent growth.

Then the Q & A session.

What did we learn from this?

No probing question on the IGN Exchange Cloud contract, so nothing new learned there. On reflection, it is likely that IGN might well consider such details as commercially sensitive. Which would mean the only indication of the size of this contract, could well be the increasing level of revenues.

On the subject of which, £25m looks likely for the full year and £30m plus next.

Exchange Cloud, is a slow process not just communication with IT departments. Discussions need to be held with numerous parts within an exchange company's organization. Mainly to protect their clients but also to protect themselves from the regulators.

Some of the discussions with Exchanges are being done jointly with IPC, who are a regular partner with Beeks.

Of the two Exchange Cloud contracts in negotiation, Gordon McArthur stated that it had been hoped to announce one with the results. Not to be, (but can't be that far away?) Incidentally, the negotiations are with a major exchange and a regional exchange. (Likely that the latter is closer to agreement, imho.)

Data Center charges went up in January, Beeks have increased their prices from March 1.

We had already been told that the staff number was now 106. Also learned that the software development team will not be getting any larger. Therefore their costs as a proportion of revenues are set to decline.

Gordon McArthur was reticent at first about giving an indication of likely Exchange Cloud contracts. He did concede maybe five over the next two to three years. Had already said that Beeks were in contact with many interested exchanges. Also that once established, it will be easier to get new exchanges to sign up.

On closing he said "We look forward to a more exciting growth trajectory going forward." (Take note, that can be interpreted as being far greater than a pretty impressive 35%).

No market reaction to the presentation. Though I was pleased with it and have topped up with a few more.

I think the pricing for the placing had been agreed in advance. It seems that they were just waiting for the ex-dividend date to pass before proceeding. Then got caught out by the rapid uplift in the sp last week.

Had these for a while last year but still kept a watch on them afterwards. Funny thinking am not going to buying these again to snapping up some, in the space of a few days.

Agree a growth company, therefore likely there will be a demand for even more cash as they expand. Though believe that the next placing will be north of 60p when it comes. So will be holding a bit longer this time.

No surprises today. Costs are rising due to increased investment. We have been told about Exchange Cloud contract negotiations with two further material exchange clients. That would suggest that the IGN period of exclusivity will be ending this year.

The Investor Presentation will be this Wednesday @ 12pm. With Beeks so close to what could prove to be the start of a major upward shift in revenues and profits, has to be worth sparing the time for. InvestorMeet do offer a recording post presentation.

Would hope to see revenue growth, perhaps news of a contract. Maybe some news of the IGN (ICE) Exchange Cloud contract, even if it is just a timetable. We have to bear in mind that Beeks are not doing the selling with this white label job, it is down to IGN. In my mind am looking at June when IGN and Beeks agree on the size of the initial installation. Would presume that some spare capacity will be included. With the Exchange Cloud system assembled, installed and in operation by the year end. Margins are going to be lower, therefore critical that Beeks get their pricing right. If this is a success and IGN do indeed seek a global roll out, it will be a massive game changer for Beeks. Even before considering the potential demand from other exchanges.
Had a look at the Beeks' website yesterday, they are looking to hire new senior talent, to service their ever growing list of clients. Not a sign of a stalling business.

I can't see much progress here until we get some changes at the top. Anybody involved in the overpriced Acuant acquisition should be told to pack up and leave. That should definitely include the CEO and the head of GBG's US operations. I've no confidence in them, surely institutional shareholders must be thinking the same.

Had expected the sp to falter this week, however there was some good news ready to surface after all. The spread has gone out to 30p again. No point in selling now.

These past few months was looking at EnSilica (ENSI) and wondering if a good fit with CML or a direct competitor. Anybody have a good idea? They came out with good news of a €5.0m satellite broadband chip development contract with ESA today as well as Interims. Their order book is growing but not yet in as strong a financial position as CML, can't be ignored though.

Holding some of these. Wondered about the increased activity in this stock yesterday. Nothing really exciting ready to be announced, just a share tip in the Investors Chronicle. He's tipped this before, price went up, then came back down.

16 May 2022 - We were informed of orders (£2.9m) that could not be shipped due to supply chain issues. H1-2023 Revs up @ £6.8m (H1-22 £4.7m). Does not look so impressive if taking that £2.9m into account. Sold for the third time straight away, now just curious, how it is going to end. A takeover most probably but likely it will be a rescue offer therefore could be below current market price. In financially secure hands technology will be bought without concern. Not easy to be comfortable when dependent on kit being supplied by a cash strapped company.

From Dec20 Interims.

<--- Investigating acquisition opportunities and exploring different financing options, as well as the wider development of the business, is a time-consuming process involving occasional dead ends at the due diligence stage. However, the Company is currently engaged in discussions with several well qualified acquisition targets, which it is well positioned to pursue. The Company's cash resources have been bolstered by the recent receipt of the first of three deferred consideration payments from Titan and further strengthened by an offer from the Bank of Ireland to provide a facility of up to £20 million to assist with its acquisition strategy. --->

It would not make sense to make an interim payment now if that means borrowing extra from The Bank Of Ireland. Am happy to be patient and let Tavistock find a suitable opportunity for expansion.

Cultural concerns? Perhaps investment with Lionfish is seen as a form of gambling. Particularly if difficult tight judgements come down to not letting the greedy shareholders win.

Glad to have got out, the company is heading in the right direction now, though Lionfish might not be so easy to dispose of cleanly.

Morbox, thanks for the interview link.

Personally I thought that IST looked tired. With regard to overseas expansion he sounded like a man without a plan. Can't see how a financial institution can expect to buy an overseas business and put 100% faith in them representing the interests of the company. The employing of European staff plan in the UK and getting to know them inside out before getting them to run a future planned overseas office seems the less risky way. It means that clients can be built up from London to start with, if the staff are capable. As for Amsterdam as the starting point, the very fact that it will be possible to hire Dutch employees able to converse in English. German and even French, is a huge plus. Genuine solid expansion can't be rushed, communication with customers is essential. Alpha Group are opening an office in Madrid this quarter because potential clients have expressed a desire for a local office.
With regard to the FY numbers slightly disappointing for me, possibly a sign of economic downturn. Though numerous European travel worker strikes in December could have deterred pre-Christmas economic activity. Have no idea about Equals customer base, be it financial , manufacturing etc; therefore harder to judge.
Sold around 30% of my holding on the morning of the update. Still holding a fair few, might be persuaded to buy back if I hear from a man with a well thought out plan. Am sure a fair few institutional buyers, who would help push the price past 100p, would be interested in seeing some feasible global ambition.

Perhaps ICE have advised how many clients they have already signed up to their pending Exchange Cloud installation in NJ. Beeks have already said 12-18 months before revenues start for Exchange Cloud. This one is likely to be very large, enough to take 18 months. Once running, revenues should comfortably dwarf Beeks' existing US revenues in total.

Been tipped as fantastic value as sp should be 18p.

(thanks to post from quepassa elsewhere)

Reasonable growth when allowing for the economy slowing down. The Queen's death and funeral in Sept certainly reduced activity for a while. Perhaps it's time for an European office, Amsterdam seems to be a favourite option. Raqqett will require selling, if it is to become accepted Internationally. Surely better than from the UK alone. Then there is the USA.
Am not informed enough about the requirements for white label businesses in FX but wonder if this is a potential route for overseas expansion. Will keep holding and look forward to next month's update, we might get some indication of future expansion then.

Talks with the unions didn't last long. Like any strike action the longer it lasts and the public are directly affected, support for the workers will dwindle. With regard to what Cordel are offering in terms of railway safety, how can any party oppose that? And that includes the Labour Party. Wage negotiations are one thing but the Government and all politicians have a duty to ensure that the travelling public are protected from any unnecessary harm. By insisting on the deployment of new proven technology when it becomes available.

I got back in a few weeks ago when the $1.3m order for wearable radiation detectors was confirmed as received and supplied. This is something that Kromek can do well.

Very good news, this will push revenues higher in 2023. Could even mean that Cordel might be absorbed by Ricardo eventually. Add in the news that railway union leaders might be prepared to talk on improving working practices, which must surely involve line inspections, in return for more money. Am quite happy holding this stock.

In relative terms I believe the price is cheap. Equals would have known what they needed to improve their platform offering through customer feedback. With increasing sales activity dialogue with potential customers, feedback is very informative. Even if, not resulting in new business immediately. With the Roqqett platform integrated into Equals' offerings. I imagine that this deal will be considerably earnings enhancing for Equals in 2023 simply because they have more clout than Roqqett.Simply in terms of more customers, a larger better equipped sales force and a good growing reputation.

For me finnCap stood up to the bully, good for them. They said they expected a better H2, so happy to sit on the shares at this price, even bought a few more this morning.