Member Info for PrivatePunter

Amongst Grow's many investments I'm particularly interested in and excited by Cambridge based Evonetix.

Spun out of the same stable that brought CSR, Domino and Xaar to the market, alongside successful trade sales such as Alphamosaic and Inca, this looks to be in the right place at the right time.

Be interested to know the percentage that GROW holds here.

In raised $30m in 2020 and another $24m earlier this year and has increased its headcount significantly.

https://www.cambridgeindependent.co.uk/business/stunning-evonetix-s-first-chip-synthesised-dna-created-for-9313399/

Write up for interest, following a catch up with Phil Walker.

https://martinflitton1.wixsite.com/privatepunter/post/pennant-on-track-21-10-23

Just waiting to see if there is anything from Investec this morning.

Personally happy with the update and the now rather attractive yield.

Popping my write up from back in July for interest when I spoke with management.

As a reminder, Investec was forecasting 2024 revenue of £244m with pre-tax profits at £46.3p along with an anticipation of another hike in the dividend to 15.6p per share.

https://martinflitton1.wixsite.com/privatepunter/post/sticking-with-afm-12-07-23

Following my visit last week, write up for interest.

https://martinflitton1.wixsite.com/privatepunter/post/could-bango-prove-to-be-number-one-10-10-23

Seller most likely BGF which is not specific to PEN more its strategy. If so, they will only have around 300k left and obviously someone has taken the 325k today which is a positive for me, probably Chris Mills or Miton.

As for the debt, I've already said as per the company announcement just last week that it is on track to move into net cash by the year end.

I do agree though that a few more sizeable contracts would be useful, so hopefully one or two that PEN is bidding for will come through. It is also quite possible that the follow up relating to GD and the MOD will come PEN's way and on improved terms, given the companies knowledge and experience having already delivered on the first phase.

Not so sure it is struggling, it has reduced debt sharply and and the net cash forecast position is maintained for the full year end, albeit less than previously pencilled in by the broker.

Exiting some of the bigger lumpy business is a calculated move which is why to date they have declined the General Dynamics follow on business.

Software now accounts for 46% of revenue with decent and improved margins along with a building ARR element.

Given the reaffirmed year end outlook the shares trade on a PE of 8, which falls to 7 next year, the latter looks doable given the forward picture, more recent contract wins and sectors it serves.

The property that was sold was surplus to requirements so it made sense to offload it and reduce the debt.

Caught up with the Chairman a few days ago, write up for interest.
https://martinflitton1.wixsite.com/privatepunter/post/surface-transforms-accelerating-on-the-growth-road-21-04-23

Should be interesting to see the Interim results next Tuesday as both revenue and EBITDA appear to be tracking ahead of the broker full year estimates following the update last month. Adj EPS of 3.7p already looks cheap, so any beat on that should hopefully push the shares further northwards.
Some decent Institutional investors on board too, such as Gresham, Canaccord, Herald and Downing.

I think it is fair to say that anyone invested here or taking a close look, will be well aware of the working interest for PMG.
The news today is very positive with news not far away and and could get a whole lot better, particularly with increasing prospects on a number of fronts.
The forecast adj pre-tax profit for full year 2023 of £17.7m backed up with a solid cash pile suggests to me at least that the shares have a good runway ahead.

No problem, but I do wonder how good or of value it was?.
Remember, they only paid 47K for it and although a revenue contributor and would have appeared to be in the right space, they did flag that it had to go!
I'm no apologist for the management, but I don't mind playing devils advocate!

Regarding the sale of Langdon, it was clear who bought it, "The Company has sold the IP, software, assets, client list and contracts associated with Langdon to Langdon Customs and Excise Solutions Ltd, a provider of duty management systems"
It will be interesting to see how much cash is left, as the Broker note from summer forecast £2.4m!
I'd bet it is less than that though, when the results are released.

Agree, a catalogue of errors and scant thought for investors.
It would be interesting to know the thoughts of the major holders though, particularly Gresham which sits on some 28% along with Amati also with a sizeable holding and Octopus too. I felt that they must have been instrumental in the fast tracking of the current CEO, so one would assume they are comfortable with the direction!
Still of the view that it will be acquired itself at some point, but we will see.
Results due are unlikely to read well as we know, but it'll be interesting to see or hear, on what current prospects are like and expectations.

Not at all, appreciate your view.
My point was, that it perhaps shouldn't be surprising to see the price achieved through the sale, given the sum paid and what the CEO (who didn't buy it) had previously said about it not really fitting with the core business.
It is a shame as I think a lot of us thought it should be thriving in a post Brexit environment.
The other business to be disposed of should, one would hope bring in considerably more, given the price paid being £2.6m.
On the positive side, new business won has been with sizeable players and territories away from the UK and the route to go via partners looks a sensible one.

Theai, RDT paid less than 50k for Langdon, so I don't know where you get the idea it was a lot more?

Persimmon, very much appreciate your thoughts and take on things, I can't disagree.
As you say, they aren't there yet with the commercial air travel space and it could be someway off yet.
That said, one would assume the success with and apparent high regard of the product held by the US CBP should provide for a significant endorsement with the former, so perhaps things may accelerate on that area.
Additionally, the same process currently being undertaken in Israel could also provide for a successful outcome, so plenty in play for the years ahead.

Very good news this morning following on from the recent results. Looks like momentum beginning to seriously build now with profit protection also providing a significant runway ahead.
If they could just announce some really positive news on the commercial air space, then the shares would no doubt respond accordingly.

Well, we got the answer yesterday on the results being delayed, but more importantly, an update which read well.
Good to see the $2.7m US customs win for the year in play along with the imminent expectation of additional passive pedestrian scanners related to this area. Profit protection appears to be continuing its traction with "strong interest" in the latest walk-through lane that increases the throughput rate. Looking forward to hearing more in the results presentation.

Can't argue with your thoughts persimmon, indeed absolutely agree.
For the record, I have held here for a few years now following interviewing the CEO and recently added to my position.
From a personal perspective, on the one hand it can be argued that the market cap relative to the historic performance suggests it is well up with events, whilst on the other, recent progress and opportunity's imply potentially significant upside.
The Tesco roll out and other wins in profit protection look set to continue to gain traction, with the tantalising prospect of commercial aviation clearance and subsequent adoption quite possibly opening the door to a game changer.
The US process seems to be taking an age, which is rather strange given that it is already in use for military personal clearance.
Hopefully, we will learn more when the results are released, but perhaps more importantly hear of how the year in progress is panning out.
I note Progressive had, back in April, pencilled in EBITDA breakeven for the year in play with a much reduced pre-tax loss of £0.5m, so further confirmation of that and increased traction would be welcome.

As of earlier last week no date had been set by the company for releasing the results.
Not concerned by that, but it does make one wonder if something is in the wind!

http://us02web.zoom.us/rec/share/TMk9FYA234u5wm3oDj647AuYb8TJgyINMLbSBMtOlaZJdnDVih8OgRQKCiAJaCOr.jXpklqMJAjSdIniy?startTime=1660140080000