Member Info for Hedgehog100

America's 'macro' outperformance is naturally reflected in its 'micro' performance too.

Compared to Britain, American growth companies have a far bigger domestic market to expand into before they reach domestic saturation point.
This expansion is aided by the very dynamic, business-friendly nature of the country, its advanced adoption of new technologies, and its low energy costs.
And with their bigger domestic growth potential, they can achieve far bigger critical mass and economies of scale domestically, to assist in global expansion, and even domination.
That's why many of the world's largest companies are American, particularly tech-related.

Smaller suppliers-partners of top American growth companies can therefore enjoy huge and growing success for many years by aligning with them; early suppliers to McDonald's are good examples:-

"He promoted the slogan, “In business for yourself, but not by yourself.” His philosophy was based on the simple principle of a 3-legged stool: one leg was McDonald’s franchisees; the second, McDonald’s suppliers; and the third, McDonald’s employees. The stool was only as strong as the three legs that formed its foundation."
https://www.mcdonalds.com/us/en-us/about-us/our-history.html

Which brings to mind the American growth prospects of NWT:-

10 Sep 2021 7:00 am RNS Final Results
"... The future
However, the real step change for Grosvenor Technology could come in the US, where we will grow our business with existing partners and look to onboard new Tier 1 clients with a compelling offering that encompasses a combination of market-leading technology, products and services. ..."
https://www.investegate.co.uk/newmark-security-plc/rns/final-results/202109100700053342L/

This greater American growth potential is the basis of America's higher share ratings, with the differential being deserved on the basis of the greater business opportunity.
Arguably therefore, UK-listed growth companies with a large part of their business in America should also benefit from high share ratings, especially considering the relative scarcity value of such shares.
A re-rating for British successes 'across the pond' should therefore be expected as their story gets out, perhaps assisted by a dual-listing, or a subsidiary spin-out floatation in America.

Buying into such British successes can give great USA exposure without the foreign dealing costs and potential research etc. difficulty.
And if you can find one ahead of potential re-rating upwards, rather than paying higher American share prices, so much the better.
So with NWT subsidiary Grosvenor Technology poised to generate perhaps c. £18M. in revenue for its the year ending 30.4.23, with over half of that in the USA, this looks like an almost heaven-sent opportunity to obtain top American growth exposure at a bargain basement price.

"Bored of the missed deadlines and lack of results"

Mls,

I'm sure you're not the only one here who's getting bored of something ... !!

Slipped timetables are par for the course for the resources sector, but ZEN seems to perform better than most in this regard.

E.g. ZEN recently winning the brilliant Sèmè project in Benin, in the face of quite a bit of competition for this project
The three month timescale, from latter September 2022, to select the preferred bidder looked ambitious for Africa ... but it came pretty close to being met.
So that news was both a vindication of ZEN's operational and financing abilities, and of their ability to deliver on their expectations.

And the company also not long ago delivered a stunning increase in interim revenues of nearly five-fold (4.936 x higher), i.e. nearly 400%:-

30th Nov 2022 9:02 am RNS Half-year Report
" ... The Group generated revenues from oil and natural gas of CAD$11,571k (2021 - CAD$2,344k) ..."
https://www.lse.co.uk/rns/ZEN/half-year-report-zruvcyrci0abvf8.html

Roll on ZEN's full year results for its year ending in just a couple of weeks, which should really bring home just what a quite stunning growth story this is.

Also remember ZEN's credit rating improvement from B- to B+, from BCRA, in barely sixteen months to January 2023.
This will clearly be very helpful in arranging project funding at more attractive interest rates than otherwise, which in turn can help to increase ZEN's profits on these projects.
And at this rate of improvement, an "A" rating should be possible in the medium term, which would be consistent with ZEN's mid-tier (i.e. market cap. of £100s. of millions) ambitions and share consolidation plan.

The company has delivered multiple other impressive achievements as well, in impressive timescales, over the last three years, so well done to ZEN on doing so well.

So why is the s.p. so weak ... at the moment?!

Largely because 'Mr. Market' is being a bit stupid at the moment!

From the legendary 'father of modern security analysis' Benjamin Graham:-

“In the short run, the market is a voting machine but in the long run, it is a weighing machine.”
https://www.goodreads.com/quotes/831517-in-the-short-run-the-market-is-a-voting-machine

The USA is the world's largest economy, and accounts of over half of the world's stock market valuation.

And American outperformance compared to Britain, for both economic and investment returns, is enormous:-

1. ECONOMIC OUTPERFORMANCE
"GDP Annual Growth Rate in the United States averaged 3.13 percent from 1948 until 2022"
https://tradingeconomics.com/united-states/gdp-growth-annual
"GDP Annual Growth Rate in the United Kingdom averaged 2.24 percent from 1956 until 2022"
https://tradingeconomics.com/united-kingdom/gdp-growth-annual

2. INVESTMENT OUTPERFORMANCE
From Hargreaves Lansdown "Investment Times", Issue 150 - autumn 2021:-
Calculated from the table on pages 4 - 5, Annual Performance Across The Major Sectors [rough non-compounded %s]:-
North America, average c. 16.9% p.a., 2011 - 2021
UK All Companies, average c. 9.8% p.a., 2011 - 2021

And the effect is heightened by year-on-year compounding over the long term:-
North America's 16.9% p.a. annual growth, compounded for 10 yrs., would compound $100K. into $477K.: a $377K. gain. on $100K.
• Britain's 9.8% p.a. annual growth, compounded for 10 yrs., would compound £100K. into £255K.: a £155K. gain. on £100K.
I.e. a ten year percentage return of well over double.

It's clearly to be expected that economic-business performance should mirror investment performance, because they are two sides of the same coin.

From Hargreaves Lansdown "Investment Times", Issue 154 - money guide 2023 - special edition:-
Page 26. "What Next For The US Stock Market?
... While 2022 saw US benchmark indices fall, with many names in the technology sector suffering dramatic falls, it generally still stands out as an incredibly resilient market to invest in. Whether this resilience is driven by the diversity of the economy, the flexibility of the employment market, or simply the nature of the American people is sometimes difficult to identify. ..."

14th Mar 2023 7:00 am RNS Update on Italian Electricity Production

Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA), the energy company with proven revenue generating production, exploration and development assets in Africa and Europe, provides an update on its electricity production operations at the Torrente Cigno Concession during the months of January and February 2023.

The Company produced a total of approximately 1,015 megawatt hours ("MWh") during the month of January 2023, and a total of approximately 929 MWh during the month of February 2023.

Electricity prices averaged approximately EUR 165 per MWh during January 2023 and averaged approximately EUR 156 during the month of February 2023, resulting in cumulative total net revenues of approximately EUR 313,000 for the period.

Zenith's current net production costs remain fixed at approximately EUR 35,000 per month.

https://www.lse.co.uk/rns/ZEN/update-on-italian-electricity-production-ketpw5n04smu6ql.html

27/09/2012 06:02 UK Regulatory (RNS & others) WANdisco Plc Interim Results LSE:WAND Wandisco Plc
https://www.lse.co.uk/rns/WAND/interim-results-m7tjcqrlc3ggd1i.html
Revenue US$2.915M.

6th Sep 2022 7:00 am RNS Interim results
https://www.lse.co.uk/rns/WAND/interim-results-6hzqplmau37nepe.html
Revenue US$5.823M.

So in a decade on AIM, after apparently burning through about US$200M., WAND has managed to double its interim revenues: a compounded annual revenue growth rate of about 7%.

But it managed to persuade the market that its annual revenue was now apparently relatively quickly likely to rise by about a thousand per cent.

And some clever people seem to have been taken in: apparently multiple US billionaires on the share register (Davis, Dollens and Gruber), and the UK's Richard Griffiths and tech specialists Herald Investment Trust.

It's also interesting that the "irregularities" were uncovered immediately after the 'floating in America' and 'joint broker RNSes' (on 6th. & 7th. of March): suggesting that Americans engaged for the float and/or the new broker may almost immediately have uncovered what was going on.

But even if the numbers had been real, WAND's valuation was still astronomical, especially for the current tech stock bear market.

Preliminary unaudited revenues of at least $24M. for 2023, and a market cap. of £890M., is still a PSR (price-to-sales ratio) in the 40s, for a likely 2023 operating loss.

Compare that to a British tech stock that really IS doing well in America, and recently announced an interim pre-tax profit:-

From the bar graph on page 12 of NWT's annual report & accounts for the year ended 30.4.22:-
"Five years of consecutive revenue growth:
HCM in North America: £m"
2017: £0.9M.
2018: £1.2M.
2019: £4.0M.
2020: £5.9M.
2021: £6.5M.
2022: £8.7M.
https://newmarksecurity.com/assets/Newmark-Annual-Report-30-April-2022.pdf
https://newmarksecurity.com/investor-relations/reports-and-presentations/

NWT's current market cap. is £5.16M. (at 55p), on £19.145M. revenue for it year ended ended 30.4.22: a historic PSR of 0.27, i.e. under a hundredth of WAND's PSR even on its apparently fraudulently-inflated figures.

This is the sort of REAL tech success into America that should be celebrated, and awarded a higher rating.

2. TIME CLOCKS OBLIGATION

"The European Court of Justice broadens the spectrum of the time clock

17 September 2019

Soon, all member states of the European Union will have to put in place a recording system for the working hours of their employees.

A real earthquake in the European world of work

Last May, the European Court of Justice delivered its judgement: from now on, the employers of the member states of the European Union must be able to measure the time performed by their employees. The judgement was delivered following an appeal lodged by a Spanish trade union against Deutsche Bank. The goal? To ensure the protection of workers, by limiting the abuse of unpaid overtime.

Each EU country will, therefore, have to define the implementation of this new law and generalise the establishment of a time-recording system. In Belgium, where a labour law has been in place since 1971, the use of a time clock is not yet an obligation. Changes are to be seen within Belgian companies, both from an equipment perspective as well as its operation.

A judgement that is favourable to workers, but also employers

Despite the feedback received about time management, mostly compared to the policing of employees via time clocks, the real advantages are numerous, both for the workers as well as the employers. Time management also shows up in much more numerous and varied forms than the good old punch clock.

Time recording; a prevention and wellness tool ...

Better experiences for employees ...

The improvement of HR processes ...

A productivity gain ...

No more mobility problems ...

... employers need to put in place new time management solutions and pay the costs. ..."

https://www.protime.eu/en-gb/news/european-court-justice-broadens-spectrum-time-clock

23rd Jan 2023 7:00 am RNS Final Results

" ... We have developed for Protime, our largest European partner, an additional functionality within our Android feature set that enables them to adopt the new GT8 time clock. ..."

https://www.lse.co.uk/rns/NWT/final-results-fjybevmguogyzsg.html

So NWT subsidiary Safetell has strong regulatory drivers for its business.

And NWT subsidiary Grosvenor Technology also benefits from multiple strong regulatory drivers:-

1. BIOMETRIC DATA PRIVACY REQUIREMENT

23rd Jan 2023 7:00 am RNS Final Results
" ... In an increasingly risk-aware enterprise environment, we have been working hard to broaden our reach and reputation as a trusted security partner, becoming a go-to brand for customers who are seeking this control to simplify the growing complexity of security and compliance requirements in the intersection between physical and digital worlds. ..."
https://www.lse.co.uk/rns/NWT/final-results-fjybevmguogyzsg.html

10 Sep 2021 7:00 am RNS Final Results
" ... Managing data privacy and security
Another element of building a strong reputation is how we manage data privacy and data security, in particular biometric data, such as fingerprints and face identification. In the US, there are different rules for biometric data capture and what you can do with it, depending on which state you are in, while in Europe and the UK, we have to adhere to General Data Protection Regulation ("GDPR") rules.
It is complex, which is why we have also invested significantly in our workflow management of biometric data. That has meant gathering the consent of people for using their data in the US and Europe, and ensuring that we have annual penetration testing of our systems - both our timeclocks and our Cloud platforms. We are dealing with this ahead of any potential Federal legislation in the US, reassuring our customers that we are secure, and future proofing our systems. ..."
https://www.investegate.co.uk/newmark-security-plc/rns/final-results/202109100700053342L/

"Biometric Information Privacy Act
... Proposed Federal Regulation
The National Biometric Information Privacy Act
On October 3, 2020, Senator Jeff Merkley introduced the National Biometric Information Privacy Act of 2020 (Senate Bill 4400).[11] While the Act contains provisions similar to BIPA [12] it is more expansive than BIPA.[13] If passed, the Bill would be the first of its kind to regulate biometric information on a national scale.[14] ..."
https://en.wikipedia.org/wiki/Biometric_Information_Privacy_Act

Kam,

We should all know that ZEN floated in January 2017 at 7p, and fell to below 0.4p in 2020, on the Azerbaijan disappointment.
So yes, it was a bad investment.
But why does that mean that it can't be a good one in the future?

I invest on the basis of what I think is good value NOW, and what I expect to happen in the FUTURE.

And there are shares that have fallen a lot, lot more than ZEN has, that have subsequently gone on to hundred-bag.

"The only reason Zen are doing it is to appear more attractive to raise capital"

Well what's wrong with that, LOL!

It would be fairly stupid to make yourself LESS attractive to raise capital, wouldn't it!

A cheaper cost of capital is in the best interest of the company and shareholders, so well done to ZEN.

Lots of good companies consolidate their shares, and it's a sign that ZEN is 'growing up', in keeping with its recent big institutional investment.

In contrast, a company splitting its shares to try to make them seem cheaper to penny share punters is what is a sign of desperation.

Where's the 'desperation' for a company that has just raised over £2M. in funding, at a discount of just a few per cent, and is now cashed up to move full steam ahead on multiple project fronts.

It's also interesting that ZEN is only going for a ten into one consolidation, not 100 into one, when 50p or so would generally be regarded as more ideal and 'serious-looking' share price.
Could it be because the company expects to get there anyway?!

Finally, if ZEN has the discipline to walk away from deals it decides, after due diligence and consideration, that it doesn't like, then that's not a sign of failure, it's a sign of success.

It's misleading to try to twist this by falsely suggesting that ZEN has been rejected, and making up nonsense.

ZEN have already won the Sèmè project in Benin: this was very clearly announced on 10th. January:-

10th Jan 2023 9:15 am RNS Exclusivity for Block 1, Sèmè Field in Benin
https://www.lse.co.uk/rns/ZEN/exclusivity-for-block-1-s232m232-field-in-benin-copv9dcudq0024x.html

A production sharing contract is now being negotiated that could give ZEN a revenue share of USS100M.+ p.a., at great profit margins, which should be finalised within weeks.

From the recent institutional investment RNS this looks to be well on course, and I think that we're now entering the 'sweet spot' where positive news on this could drop at any time.

And the award of a PSC here would certainly justify a doubled s.p. to a penny or so from this lowly level.
Perhaps even more.

Kam,

You're misleading people.

If you wish to say that the 7p IPO would be 70p adjusted for ZEN's future consolidation, then do so.
But you're giving the impression that there has been a previous consolidation, when there hasn't, and that ZEN has fallen from 70p, which it hasn't.

It's laughable to think that a share consolidation, or split, actually changes the underlying value of the company.

Think of Warren Buffet's pizza analogy: cutting a pizza into slices doesn't mean that you have more pizza, and vice versa.

But the far higher share price following a consolidation projects a more serious and professional investment image, which can help to attract better quality investors, and help a longer term rerating upwards.

NWT for example had a 50 into one consolidation 16 months ago, and its s.p. is currently higher than when it consolidated: and that's in real terms, i.e. consolidation-adjusted. That's despite the tech sector bear market since then.
And it's been on fire this year: up 66.66% (33p to 55p), and with superb interim results.

One of the reasons NWT gave for the consolidation was to make future fundraisings easier, but it hasn't had a placing since it announced the consolidation plan 17 months ago.

So of course ZEN may well need to raise significant project finance in the future. That's to be expected.
But it doesn't mean that it's going to do so immediately, but rather is sensibly planning for the future.

ZEN has large revenues, which have grown explosively, and reported a first half interim pre-tax profit, though the profit isn't yet huge, so there's no inconsistency with that and raising project finance.

Remember the c. half a million pounds of additional ZEN director share buying just made: they are obviously confident, so 'follow the money'.
With about £149K. of that from ZEN's chief financial officer, a profession which tends to be quite financially cautious and conservative.

So in conclusion about the consolidation, it's clearly a very sensible and logical step in the company's strategy:-

"Zenith Energy’s aim is to become a mid-tier, Africa focussed E&P company"
https://www.zenithenergy.ca/about/strategy/

As regards ZEN's historical s.p. decline: well, it's well above its lows of about two and a half years ago, and has made huge, positive progress since then.

In contrast, some rubbish resource companies have fallen to a thousandth of their high and less long term, and ZEN's performance since IPO is a hundred times better or more than some.

The s.p. fall from one very disappointing project years ago (i.e. Azerbaijan) was no more than you would expect from such an experience, and it could have been a lot more if the company hadn't managed the situation so well, sensibly cutting its losses and building its activities elsewhere.

Well done I say on such shrewd and skilful management, and for laying the basis here for such huge value creation.

3. PROTECT DUTY LEGISLATION

10 Sep 2021 7:00 am RNS Final Results
"... The new 'Protect Duty' legislation, should it become law, will mean that the owners and operators of businesses and public spaces such as concert halls, shopping centres and parks will be legally bound to protect their sites and shut them down in the event of a terrorist attack. That means they will need remote locking facilities, screens on all their counters, and even breakout facilities where people can get to and stay safe. We anticipate that many new opportunities will open for us to support businesses that need to comply with such new legislation. ..."
https://www.investegate.co.uk/newmark-security-plc/rns/final-results/202109100700053342L/

"Martyn’s Law to ensure stronger protections against terrorism in public places
The UK’s resilience to terrorism is to be stepped up, as the government announces details for the Protect Duty.
From:
Home Office, The Rt Hon Rishi Sunak MP, and The Rt Hon Suella Braverman KC MP
Published
19 December 2022 ..."
https://www.gov.uk/government/news/martyns-law-to-ensure-stronger-protections-against-terrorism-in-public-places

"PROTECT DUTY
The Home Office estimates that 650,000 UK businesses could be affected by Protect Duty. ..."
https://marlowefireandsecurity.com/resources/protect-duty/

2. FIRE DOORS SAFETY STANDARDS & INSPECTION-MAINTENANCE

10 Sep 2021 7:00 am RNS Final Results
"... We will look at potential new areas, such as fire door maintenance and inspection, as recent legislation means that many of the fire doors out there now need to meet a higher standard. Our installers and engineers could take that on without the need for additional training, as long as they are supported by proper qualified inspectors on the job with them. ..."
https://www.investegate.co.uk/newmark-security-plc/rns/final-results/202109100700053342L/

"ARE FIRE DOOR INSPECTIONS A LEGAL REQUIREMENT?
... According to article 17 of the Regulatory Reform (Fire Safety) Order 2005, it is a legal requirement for businesses to ensure that fire resisting doors and escape doors are correctly installed and adequately maintained at all times.
As there is no other way of ensuring that your fire doors remain fit for purpose, this makes regular fire door inspections a legal requirement. And as the Regulatory Fire Reform is applicable to all non-domestic buildings, your business falls under this legislation. ..."
https://www.1stclassfireprotectionnorfolk.co.uk/are-fire-door-inspections-a-legal-requirement/#:~:text=As%20there%20is%20no%20other,business%20falls%20under%20this%20legislation.

"New Fire Door Checking Regulations 2022 ...
What do the new fire safety regulations 2022 mean for building owners?
The new fire safety regulations cover social landlords’ responsibilities for fire safety in residential premises, including purpose-built blocks of flats, individual homes and sheltered housing. Property owners will be responsible for all multi-occupied residential buildings in England with storeys over 11 metres in height.
The new fire regulations, which will become a legal requirement in January 2023 and insist on the following:
• Property owners need to undertake quarterly checks of all fire doors, including self-closing devices in the common areas of the building.
• Property owners must undertake on a best endeavour basis to carry out yearly checks of all flat entrance doors, including any self-closing devices that lead onto a building’s common parts. ..."
https://www.firedoorscomplete.com/news/new-fire-door-checking-regulations-2022-the-ultimate-guide-for-owners-and-operators-of-residential-buildings

Safetell's recent impressive strengthening of its business development team should help to fully capitalise on these three strong regulatory drivers for the business:-

1. AUTOMATIC DOORS SAFETY STANDARDS & ANNUAL MAINTENANCE

"Global Automatic Door Market Trending Upwards, EN 16005 Demands Annual Maintenance
JANUARY 19, 2023"
HTTP://newmarksecurity.com/company-insights/

"Global Automatic Door Market Trending Upwards, EN 16005 Demands Annual Maintenance

The global automatic door market is predicted to grow in all segments over the next five years, according to multiple reports. The widely-adopted EN 16005 directive also means building owners must ensure their doors meet stringent safety standards. ...

The directive was ordered to improve safety standards and states that people and goods are not allowed to be hit by moving doors. To ensure this is achieved, EN 16005 says that power-operated doors must be installed with safety sensors and door operators that are in constant communication.

Maintenance has to be carried out by approved technicians annually on all doors covered by EN 16005. Failure to do so leaves owners potentially liable should an incident occur because of a faulty door. The scope of EN 16005 is described as “[dealing] with all significant hazards, hazardous situations and events relevant to power-operated doorsets when they are used as intended and where conditions of misuse are reasonably foreseeable by the manufacturer”.

While the EN 16005 regulations were agreed upon for use in Europe, it has also been adopted by nations in the Middle East and Asia.

What is the size of the automatic door market?

The global automatic door market reached a value of $18.44 billion in 2021. IMARC Group expects the market to reach $30.09 billion by 2027, exhibiting at a CAGR of 8.27% during 2022-2027.

The IMARC report cited “significant growth in the construction industry” as one of the critical drivers of growth in the automatic door market. It also noted that automatic doors are increasingly finding favour as they provide secure and convenient door access to differently-abled individuals.

The impact of COVID-19 is also at play. The pandemic drove a rise in demand for automatic doors as they provide hands-free access to public places, such as shops, hospitals, restaurants, office buildings, and apartments, and cut the risk of viral transmission. ...

Safetell – an experienced and trusted automatic door partner

Safetell has a proven track record of automatic door servicing and maintenance. As well as carrying out annual checks to ensure compliance with EN 16005 regulations, our experts are adept at repairing faults and issues, keeping downtime to a minimum ... "

https://newmarksecurity.com/company-insights/global-automatic-door-market-trending-upwards-en-16005-demands-annual-maintenance/

"Safetell primed for growth in buoyant security market
MARCH 7, 2023"
https://newmarksecurity.com/company-insights/

"Safetell primed for growth in buoyant security market

Safetell has significantly improved its business development team in recent months, adding experience and expertise in equal measure. Here, we meet the team hungry to tap into a physical security market tipped for multi-billion-dollar growth in 2023 and beyond.

Looking back at 2022, it is the year that the world largely got back to normal, with almost all restrictions being eased. Footfall across towns and cities increased to its highest levels since the pandemic, with people getting out to work, socialise, and travel.

This widespread return to society largely unencumbered by lockdown-style rules (there are exceptions, such as areas in China) has seen a significant increase in demand for physical security products and solutions. While definitive figures are still to be confirmed, a December 2022 report from ResearchAndMarkets forecasts revenues from the physical security product market should increase 9.13% in 2022, rising to $42.3 billion, and predicts that between 2023 and 2027, growth will average around 6.5% per annum.

The report noted the “remarkable degree of both resilience and adaptability over the course of the COVID-19 pandemic” in the physical security market. It was a theme we at Safetell saw ourselves in 2022. As a business, we wanted to enter a new year with a well-rounded business development team, ready to take advantage of new opportunities in this buoyant market.

With that in mind, we thought it would be an excellent opportunity to introduce you to the Safetell sales team. ...

https://newmarksecurity.com/company-insights/safetell-primed-for-growth-in-buoyant-security-market/

"Investors Target AI Winners and They're Not All Household Names

As AI investment funds sizzle, firms large and small provide the heat

By LYLE NIEDENS Published February 27, 2023

In the investment world, AI is on fire.

Since the introduction of OpenAI's ChatGPT last fall, the technology's transformative potential has enthralled investors, who've sent AI-oriented investment funds soaring this year as they also scrutinize which individual companies might benefit most from the technology.

The iShares Robotics and Artificial Intelligence Multisector ETF (IRBO) has gained 15% year-to-date, with rival Global X Robotics & Artificial Intelligence ETF (BOTZ) surging 13%. 1 2

While obvious suspects such as Amazon, Google, and Apple stand to reap AI's rewards, likely beneficiaries also include smaller, more obscure companies in industries ranging from finance and human resources to travel and transportation. ...

The lists also highlighted numerous smaller companies, all that someday may have the chops to strike AI gold. A few examples: ...

Paycor HCM (PYCR): Payroll and so-called human capital management (HCM) providers reduce service and implementation costs via AI bots that answer and fulfill service requests. AI also can aid recruiting: Paycor recently purchased Talenya, which helps hiring managers efficiently find employment candidates. 4 ... "

https://www.investopedia.com/smaller-companies-to-benefit-from-ai-7151761

So AI is 'on fire' ... and it's not the only one, with NWT's 62.12% rise this year (33p to 53.5p), and superb interim results.

And it's interesting to see Paycor HCM (NASDAQ: PYCR), the largest North American partner of NWT subsidiary Grosvenor Technology, identified as a likely beneficiary of the AI revolution.

Grosvenor Technology's MD recently highlighted AI as the leading trend that is shaping its sector:-

"Insights | Company News

Key security industry trends in 2023 ...

1. Artificial intelligence will continue to lead the way

According to recent figures, AI in the security market was valued at US$5.08 billion in 2020 and is expected to reach US$14.18 billion by 2026. Indeed, for several years running, artificial intelligence (AI) has been the predominant trend as companies continue to leverage its advanced capabilities for functions such as facial recognition, video surveillance, audio analytics, and more.

More recently, we have seen a shift towards AI being used as a preventative rather than a reactive measure, meaning that security teams can stop incidents taking place in the first place thanks to things like predictive analytics and machine learning.

2. Cloud-based services will become more essential ...

3. Biometric entrance control will set the standard in physical security ...

4. ‘Zero trust’ moving into the physical world ...

5. More of a focus on privacy protection ..."

http://www.grosvenortechnology.com/insights/key-security-industry-trends-in-2023/

dab808 Posts: 120 Price: 45.00 Strong Buy
AGM (part 1) Wed 11:36
" ... We have explored what we can do to raise money in the US. We have not ruled out this option. Things were progressing back in October/November, but then the markets/UK was in a bit of a turmoil so this went onto the back burner. All shareholder agreed this would be a good thing to consider. I made the point that we have an opportunity now and need to consider how we raise money, expand at a pace to maximise the opportunities in front of us."

Dab,

As you have previously observed, such a fundraising could dovetail perfectly with a spin-out floatation of Grosvenor Technology in America.

NWT's idea of establishing a new manufacturing facility in North America is precisely the sort of capital investment that IPO investors love to fund, as opposed to just covering ongoing losses, especially in the current risk-averse environment.

It's therefore certainly good to know that some sort of USA fundraising should be seriously considered.

And if Grosvenor Technology is spun-out of NWT in a US floatation, then this should be a key to an immediate and immense unlocking of its value.

GT's £14.56M. of revenues last year equates to c. US$17.5M. at current exchange rates, and growing rapidly, so it has both the size and growth prospects to command a quite generous tech-style rating.

Which in US terms could equate to a few or several US$10s of millions of valuation.

And if it delivers upon its growth prospects, then that could rise to hundreds of millions during this decade.

NWT are obviously very bullish on their North American growth outlook, to be exploring the establishment of a new manufacturing facility in North America.

And informed investors would doubtless view GT status as a spin-out as a major bull point, as spin-outs on average greatly outperform the market as a whole.

" ... it will be a miracle if they can lay claim! I'm thinking they will."

The clear and logical analysis here is stunning ...

But one of my investment rules of thumb is: 'The thicker the troll, the stronger the buy.'

Grosvenor's pre-tax profit margin at acquisition was c. 18%, though I have applied a relatively conservative NWT pre-tax profit margin assumption of c. a sixth in my 'potential 49-bagger' post five days ago below (NWT's Vision: Revenue of £40M. - £60M. p.a. in next 3 - 5 Years Mon 15:26); this despite the bullish outlook for margins expansion and economies of scale for GT, which accounts for the large majority of NWT's revenues, and for margins expansion and growth at Safetell.

On NWT annual revenue of c. £60M., this would equate to c. £10M. p.a. NWT pre-tax profit: i.e. more than double NWT's current market cap.

And if NWT does achieve annual revenue of c. £60M. five years from now, which looks quite possible, then even just a PSR (price-to-sales ratio) of two, similar to the PSR of GT at acquisition, would equate to a NWT market cap. of c. £120M.

But of course the rating could potentially be much higher than that.

Paycor HCM (NASDAQ: PYCR), Grosvenor Technology's largest North American partner, floated in America in July 2021, at an IPO price of US$23/share.

The tech share sector in America fell more than 30% last year, but the Paycor s.p. has held up well, and its current s.p. of US$25.24/share is above its IPO price.

Paycor reported turnover of US$429.39M. last year, and has a current market cap. of US$4,453.30 billion, at US$25.24/share: i.e. a sales multiple valuation of 10.37, despite making significant losses:-
https://finance.yahoo.com/quote/PYCR?p=PYCR&.tsrc=fin-srch

This gives some indication of the hefty valuation that a Grosvenor Technology spin-out from NWT could potentially command in a US float.

mls678 Posts: 1,019 Price: 0.525 No Opinion
RE: Hedgehog100 03 Mar 2023 17:18
" ... And the money owed in the court claim is NOT guaranteed. Nothing is. So please don’t say it is"

Mls,

That statement from you, addressed to myself, was suggesting that I had said the court claim &/or everything else was guaranteed.

But if that wasn't your intention then I'm happy to accept your retraction.

Though I would suggest that you be more careful in your posting in future.

I didn't actually say that anything was guaranteed.

I said that ZEN doesn't have the uncertainty of a binary bet, but that's very different.