Member Info for Hedgehog100

A reminder that OVB's AGM is tomorrow, which will hopefully provide some encouraging feedback:

24th Jun 2021 7:00 am RNS Annual Report and Notice of AGM

... Notice of Annual General Meeting

The Notice of Annual General Meeting ("AGM"), containing details of the resolutions to be proposed at the AGM, has also been published and will shortly be posted to shareholders. The Notice of AGM is also available on the Company's website at www.ovocabio.com . The AGM will be held at the registered office of the Company, 17 Pembroke Street Upper, Dublin 2, Ireland at 2.30pm on 29 July 2021.

AGM Procedures in light of Coronavirus (COVID-19)

Due to the continuation of the Irish Government's Covid-19 restrictions in relation to public gatherings and to prioritise the health and safety of our shareholders, employees and other stakeholders, the Board is requesting that shareholders do not physically attend the AGM and instead submit a proxy form in favour of the Chairman to ensure they can vote and be represented at the AGM without attending in person. Further information on how to appoint a proxy and the timelines by which proxies must be received are contained in the Notice of AGM.

It will be possible to listen to the proceedings of this year's AGM remotely using a teleconference facility provided by the Company. Shareholders will not be able to use this facility to vote, ask questions or table resolutions. Information on how to register for this teleconference facility is available on the Company's website at www.ovocabio.com/agm-registration .

All shareholders will be able to submit questions in advance of the AGM in writing by email to the Company Secretary at info@ovocabio.com to be received no later than 5.00pm on Tuesday, 27 July 2021. All correspondence should include sufficient information to identify the shareholders on the Register of Members. Questions submitted using these methods will be addressed by the Chairman at the AGM where possible.
As the situation is evolving and the Irish Government guidance may change, shareholders are encouraged to check the Company's website for any further updates regarding the AGM.

https://www.lse.co.uk/rns/OVB/annual-report-and-notice-of-agm-m7br0u8x2e22a1c.html

According to the company's website, the AGM is still on as scheduled:
https://ovocabio.com/agm-registration/

I think that's an overly cynical view Dave, and doesn't really stack up.

Giles Clarke doesn't need that salary, and they can all make far more by this project being progressed into production, with a resulting soaring share price.

But if they can't do it, then they need to be replaced by people who can - and there are plenty of those about.

The Microlise (SAAS) float looks positive for STAR in multiple ways:
• Illustration of business success, and green credentials.
• Healthy investor support and rating.
• Potential acquirer of STAR.

The float certainly highlights how undervalued STAR is in comparison.

And I'm not aware of a more appropriate acquisition target for SAAS listed in the UK.

At it's current s.p. of just 0.825p, market capitalisation £3.01 million, STAR looks a perfect bolt-on target for SAAS ... though they would surely have to pay a hefty premium.
E.g double the current s.p. or more.

In fairness Dave, that was before the pandemic hit, which initially hit the mining sector hard.

And before the current battery metals bull market started, resulting in strategic investment like at FAR.

This time though, there are no excuses.

They have to deliver, now, or they will risk becoming discredited to the investment community.

Let's see if they can prove the doubters wrong: I personally believe they will.

Microlise Admission Document
19 July 2021
https://mk0microstagibxjjo3t.kinstacdn.com/wp-content/uploads/sites/5/2021/07/Microlise_Group_plc_Admission_Document.pdf
https://www.microlise.com/investors/constitutional-shareholder-documents/

Extract from page 16:

"The Group is seeking Admission in order to raise £18.6 million (before expenses) through the issue of the
New Shares at the Placing Price. The net proceeds of the New Placing will be used to invest in growth
initiatives including bolt on acquisitions."

Extract from page 24:

"Selective bolt on acquisitions
Microlise is considering selective and accretive acquisition opportunities that will accelerate the Group’s
growth strategy. Acquisitions may include technology bolt ons to widen the Group’s platform offering and
grow recurring revenue opportunities and/or acquisitions in new geographies which would add customers
of strategic value."

"are KZG."

I mean as are KZG:

3rd Jun 2021 7:00 am RNS Operational Update

"That said, in the absence of news, there's a risk that the s.p. could drift back even further."

I posted that on 6th. July when the s.p. was 0.76p, so this fallback in the absence of news is no surprise.
People getting tired and/or nervous of waiting.
And even those who remain confident and bullish will have a limit on how much they'll put in in advance of confirmatory news.

But I agree Dave that the type of selling isn't indicative of a negative leak, and I remain optimistic.

It's enough to try the patience of Elvis, but I'm sure that if a cracking funding dealing is unveiled soon then everything will be forgiven!

The last update was made after two months, about two months ago, so we are certainly due one, are KZG.

30th Mar 2021 7:00 am RNS Interim results for the 6 months ended 31 Dec 2020
1st Jun 2021 7:00 am RNS Luge Mining Right Application Accepted

22nd Jul 2021 8:00 am RNS Admission to AIM & First Day of Dealings

... Admission Highlights

· Microlise raised gross proceeds of £61.2 million at the Placing Price of 135 pence per share

· The oversubscribed fundraising raised gross proceeds of £18.6 million for the Company and approximately £42.6 million for certain selling shareholders

· Upon Admission, Microlise will have a market capitalisation of approximately £156.5 million (at the Placing Price) with a free float of 39.1%

· The Directors believe admission to AIM will support Microlise's next stage of development, including:

o To help realise the significant revenue potential within the existing customer base and to up-sell and cross-sell Microlise's products

o The broadening of the Group's product offering

o The penetration of new geographies and market segments, including the market for smaller fleet sizes and different vehicle types, such as light commercial vehicles

o The opportunity to accelerate the Group's growth strategy through targeted M&A to expand its international business, and to add to Microlise's product portfolio

o Enhancement of the Group's profile with customers and to assist with the recruitment, retention and incentivisation of senior management and employees at all levels of the Group

· Singer Capital Markets acted as Nominated Adviser and Sole Broker

Green Economy Mark

· The London Stock Exchange's Green Economy Mark recognises companies that derive 50% or more of their total annual revenues from products and services that contribute to the global green economy

· The underlying methodology incorporates the Green Revenues data model developed by FTSE Russell, which helps investors understand the global industrial transition to a green and low carbon economy with consistent, transparent data and indexes

Nadeem Raza, CEO, Microlise, said: "This is a fantastic day for Microlise. With an established track record of growth, proven management, and a market-leading position in providing technology solutions to fleet operators, Microlise is well set to capitalise on what we believe to be a major growth opportunity. Our customers are under pressure to meet increased environmental regulations and want more integration across supply chains. In addition, the challenges of the pandemic and Brexit have raised even greater awareness of the need to optimise the movement of goods efficiently and sustainably. Our IPO will support the next stage of our development, including expanding our international business, and entering new market segments. We look forward to updating shareholders on our progress." ...

https://www.lse.co.uk/rns/SAAS/admission-to-aim-first-day-of-dealings-knkhrxcex3wdomc.html

22nd Jul 2021 8:00 am RNS Admission to AIM & First Day of Dealings

Microlise, a leading provider of transport management software to fleet operators, is pleased to announce the admission of its Ordinary Shares to trading on the AIM market of the London Stock Exchange. Dealings will commence at 8.00 a.m. today, Thursday 22 July 2021, under the ticker SAAS and ISIN GB00BLR8L223.

About Microlise

· Microlise is a leading provider of transport management software to fleet operators helping them to improve efficiency, safety, and reduce emissions

· These improvements are delivered through reduced fuel use, reduced mileage travelled, improved driver performance, fewer accidents, elimination of paperwork and delivery of an enhanced customer experience

· Established in 1982, Microlise is an award-winning business with around 350 employees based at the Group's headquarters in Nottingham, as part of a total staff of 500 globally with international offices in France, India and Australia

· Microlise's proprietary modular platform was specifically developed to provide an end-to-end technology solution for fleet operators. 58% of UK large HGV fleet operators (defined as comprising more than 500 vehicles) use the Microlise platform

· The Group has a diverse customer base, with over 400 enterprise customers including organisations representing 88% of the UK grocery retail market by market share. Other customers include Culina Group, DFS, Hovis, MAN Truck & Bus UK, and Yodel

· Award winning platform, and SaaS contracts, underpin long term customer relationships with exceptionally low churn of less than 1% in FY20

· Microlise has a track record of consistent recurring revenue growth, profitability and cash generation, growing recurring revenue by 19.0% in FY20 to £32.0 million (total Group revenue £50.0m)

· Microlise qualifies for the London Stock Exchange's Green Economy Mark ...

https://www.lse.co.uk/rns/SAAS/admission-to-aim-first-day-of-dealings-knkhrxcex3wdomc.html

Michael Rosenberg, as well as being Chairman of STAR, is also Chairman of SEFA (Sefa Gems).

SEFA announced on 1st. June that it is delisting its gemstones business via an in specie distribution to shareholders, and turning the listing into a cash shell.

1st Jun 2021 7:00 am RNS Proposed Combined Transaction
"Shefa Gems (LSE: SEFA), a company focused on advanced exploration and development of multi-gemstone mining projects in Northern Israel, is pleased to announce that it has entered into an Agreement ("Agreement") with a group of investors (the "Shany Group") to distribute the Company's current mining business to all of the Company's existing shareholders via a dividend in specie ("Proposed Distribution"), undertake a share consolidation, raise new funds for the Company, change the Company's name, make certain changes to the board and change the Company's focus of activity as a cash shell by seeking an acquisition in the web technology and software space (together "the Proposals"). ..."
https://www.lse.co.uk/rns/SEFA/proposed-combined-transaction-mvejramezja2el0.html

This post and thread title should of course be -
OSI PRR (price-to-research ratio) of 3.41

11th Jun 2021 7:00 am RNS Final Results
" ... The Group spent GBP1.81m (2019: GBP1.77m) on direct staff and contractor costs for research and development, of which all was capitalised in both periods. This expenditure pertains to developing the Group's new and enhanced software offerings. The Group continues to invest in new product development, as well as the continual modification and improvement of its current product base to meet technological advances, customer and ever-expanding new market requirements of the rapidly evolving cybersecurity market. ..."
https://www.lse.co.uk/rns/OSI/final-results-v0wdczyeqclzjvu.html

OSI market capitalisation at the current s.p. of 21p: £6.17 million.

Divided into OSI 2020 R&D spending of £1.81M.

= PRR (price-to-research ratio) of 3.41.

This highlights OSI's quite fantastic value and growth prospects.

Here is the record of OSI's annual revenues reported since floating in April 2016:

2015: £290,150

2016: £477,577

2017: £647,580

2018: £957,461

2019: £1,171,586

2020: £1,434,875

I.e. a circa five-fold increase in annual revenue in five years.

And the 2020 performance would probably have been even better but for the pandemic.

Moreover, this rate of growth has the potential to accelerate considerably, given that ransomware protection and privileged access management have recently become much greater concerns.

Losses are par for the course for many growing tech companies, but provided the growth story is exciting enough investors are generally happy to fund them.

Look at DARK(Darktrace): in the six months ended 31.12.20 it lost 48 million dollars, and yet its share price has been flying since it floated in the spring.

So OTAQ's revenue, as well as growing strongly, is very recurring in nature.

"Recurring Revenue
By DANIEL LIBERTO Reviewed by DAVID KINDNESS
Updated Nov 29, 2020

What is Recurring Revenue?
Recurring revenue is the portion of a company's revenue that is expected to continue in the future. Unlike one-off sales, these revenues are predictable, stable and can be counted on to occur at regular intervals going forward with a relatively high degree of certainty. ...

Many market pundits consider recurring revenue to be a highly desirable quality. They make a company more stable and predictable, both operationally and financially, lowering the risk that business will take a drastic turn from one month to the next.

That stability usually comes at a cost. Investors are regularly willing to pay more for the earnings generated by companies with recurring revenues because their forecasts are deemed more reliable. ... "

https://www.investopedia.com/terms/r/recurringrevenue.asp

Recurring revenues are also cheaper to generate after the first year, because the initial sales cost doesn't have to be repeated.

But their most important trait is that they largely keep on coming in, year after year.

So unlike one-off sales, which need to be matched annually just to stand still, recurring revenues create a base - and staircase - for revenues to grow upon year after year.

Sharedealer,

Interestingly, Scott has today just made his first post since the AGM vote:
scottdavid70 21 Jul '21 - 16:09 - 2754 of 2754
https://uk.advfn.com/cmn/fbb/thread.php3?id=33779385

I agree with most of what you say, except that I don't think Scott actually wanted the RTO to fail, though paradoxically he may have contributed to that outcome.

He appeared to think that it was safe to make a 'protest vote' against it, which he did, 'safe' in the knowledge that it would go through anyway. But he clearly called it badly wrong.

And his postings probably did have an influence on voters. He may well have influenced other shareholders to make a misplaced 'protest vote' against the RTO.
For example, by suggesting that the company was wasting a large tax loss asset, whereas in reality this was effectively worth very little.

I suspect that if you take out these 'protest votes' against the RTO, and votes from people who didn't realise they were voting for delisting and administration, then the RTO would have been approved.
Which is quite sad, because it means that the vote didn't really reflect what people actually wanted.

Fortitude,

Can you remember whether Ironveld's website used to describe Giles Clarke as chairman?

Either way, he's clearly not making a big thing of it now at least, which suggests that he may be amenable to standing down in favour of Mick Davis.

I don't think that would be Mickey taking ...

The Herftord-OTAQ prospectus also shows, for the 9 months ending 31.12.19, the proportion of Sealfence revenues generated on a long-term (48 month) contract basis compared to those on a medium-short term (12-18 month) basis and those revenues which are attributable to sales:

48-month contracts: 84%
12-18 month contracts: 14%
Sales: 2%

I.e. the group has a high proportion of recurring revenues.

And the group's annual revenue has risen over tenfold in the last four years:

Year to 31 March 2017: £374,000
Year to 31 March 2018: £919,000
Year to 31 March 2019: £1,570,000
Year to 31 March 2020: £3,420,000
Year to 31 March 2021: £4,053,000

OTAQ's first aquaculture product, Sealfence, was only launched eight years ago, so its huge success from a standing start demonstrates the pent-up demand for such aquaculture technology.

From the Hertsford Capital plc (then to be renamed OTAQ plc) prospectus (dated 24 March 2020):

"Aquaculture

The first aquaculture product which the Existing OTAQ Group has marketed is Sealfence which was launched in 2013.

Sealfence is an ultrasonic deterrent system designed to deter seals and sea lions from marine fish farming sites. Since the first sale of a Sealfence system in 2013, the number of systems in operation has grown rapidly and at 31 December 2019, the Existing OTAQ Group had a base of 1,164 systems on long-term rental contracts (12 at 31 March 2015) and a further 72 systems have been sold in Russia and Finland.

Sealfence uses a unique ultrasonic soundwave delivered through a network of projectors placed around each farm. These projectors work together to create an acoustic “fence” of protection designed to eliminate or reduce significantly seal and sea lion attacks. This has a range of 40m from the location of the Sealfence device. Sealfence has, as standard, remote monitoring of the performance of the system that records the performance of the system and allows full control. The Existing OTAQ Group is continuously developing and upgrading the specification of the equipment.

Whilst the system contains advanced technology it has been designed to cope with permanent installation on the most exposed marine fish farms. Sealfence’s modular design means no cables run between cages and as a result installation and any necessary repair work is relatively simple. The Sealfence system runs for up to 40 hours on battery power.

OTAQ is a recognised brand in the aquaculture industry in Scotland where the Directors believe the Existing OTAQ Group is now the market leader with a market share of over 40% of existing active sites. Clients include major multinationals such as MOWI and The Scottish Salmon Company.

In Chile, the second-largest producer of farmed salmon in the world, the Existing OTAQ Group has had a presence since 2016. The Existing OTAQ Group has deployed systems with a number of major salmon farmers in Chile including Aquachile, Salmones Antarctica, Blumar, Yadran and Multiexport and expects significant growth in this market in the near future. The first multisite programme was launched in February 2019 and the second in October 2019.

The Directors believe that the Enlarged Group is well placed to become one of the global market leaders in predator deterrent products for the salmon farming industry."

https://www.otaq-ir.com/investors/corporate-documents

https://www.otaq-ir.com/docs/librariesprovider59/default-document-library/final-hertsford-prospectus-24-march-2020.pdf

The year ended 31 March 2021 was clearly entirely covered by the COVID-19 pandemic.

So to report an 18.5% increase in revenue (almost entirely organic growth) in such circumstances is impressive indeed, and shows the robustness of demand for OTAQ's products and services.

And it bodes very well for OTAQ's performance as the pandemic subsides:
"Growth opportunities have been restricted due to the travel restrictions in place but we have taken steps to position the Group to take advantage of market opportunities once restrictions are lifted."

Especially as overseas expansion represents such a tremendous growth opportunity, and one which OTAQ is already starting to capitalise upon:
"The Group continues to grow globally with UK revenue representing 70% of total revenue (2020: 77%). Chile represents 7% (2020: 9%) of total revenue with other European countries account for 11% (2020: 6%) of total revenue and the rest of the world for 12% (2020: 8%) of total revenue."

There seems to be a crying need for OTAQ's products and services, and the group appears to be uniquely placed to exploit this, with its compelling range, strong intellectual property, established business relationships, strong cash position, and public listing.

"No end in sight for acquisitions by UK aquatech group OTAQ

By Dan Gibson July 20, 2021 10:05 BST

The UK aquatech group OTAQ, a growing player in the sector, has reported a highly positive set of results in its first annual financial report. ..."

https://www.undercurrentnews.com/2021/07/20/no-end-in-sight-for-acquisitions-from-uk-aquatech-group-otaq/