Interesting post1 Oct 2016 18:00
from iii
15:17
Re: Small free float - ready to go
SIM.L
charlie51
I met the management at an investors meeting - one of a series organised by finnCap for their clients and IIs following the results. The session was based on a 40 minutes or so presentation of the H1 results. Nothing in the session could be described as being 'inside'.
The transition to SaaS from the on premise paradigm is common place these days as companies seek to smooth revenue profiles, make life more predictable and satisfy the market's understandable desire for greater predictability and visibility. SIM would say they have flagged this up - they have, but it has been rather discreet (hence my comments on the need for better IR).
The main points I would stress here are:
The move to a recurring revenue model is progressing well.
The company's pipeline is the best it has ever been. They are successfully diversifying into areas other than military centric simulation.
The company is moving to a model where it is looking to 'prime' contracts rather than be the sub (ie increasing control in all that it does)
I have repeatedly stressed to the CEO the need for a proper IR plan. I am not alone in doing this. I believe they agree it needs to be done, and are looking to act sooner than later. If there is one immediate example of this it is for the H1 presentation to be placed on the company website! It is not and it should be.
There is no doubt in my mind that the CEO is a very competent individual who has a real grasp on his business - he just does not communicate it! I have suggested forums such as ShareSoc, Mello, Shares etc .,. Hopefully, this will happen - not to mention some proper IR related PR. The PR is lousy at present.
Niche company, and a very interesting one, but too discreet for its own good!