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I feel it's worth summarising this morning's RNS:

- "H2 has started well" (this is repeated twice)
- Fidelis has reported record trading since H1 acquisition
- the contract maintenance business has continued to trade well
- reactive business had two softer months but has since seen "high demand returning"

Today's sellers have imo completely overreacted to overall just one month of post H1 soft trading in one division relative to the other two divisions trading very well and the third now back to "high demand"!

Incidentally, those who've researched REAT know that it's not just a "cleaning company", but is a growth company and a specialist provider of skills which cannot be easily replicated, and has a now proven strategy of consolidating its space - for example its recent appointment as the core vendor for specialist cleaning in Britain to one of the world's leading facilities management firms:

"This three-year agreement is aimed at consolidating their supply chain from several hundred suppliers to ultimately just one, REACT."

New Allenby note is out. They've left forecasts unchanged at 0.14p EPS this year, but note that including Fidelis for a full year, REAT are now on a run-rate of 0.17p EPS.

When you strip out the £0.8m net cash, REAT at 2.9p are therefore on a current year ex-cash P/E of only around 16.

There are no forecasts for next year as yet, but presumably the P/E would fall further to say 12 or 13 - and next year starts in just 3 months' time.

We know that H2 has "started well" despite the small reactive hiatus, so with the recent contract wins, plus Fidelis' record trading, we may yet see a further upgrade - and there's always the chance of another acquisition.

Looks like there's been a specific seller/profit-taker around this morning, but REAT looks very good value to me on the above figures:

Http://www.allenbycapital.com/research_1242_3324314454.pdf

"There are no changes to our 2021 forecasts at this stage although we would repeat our earlier observation that on a full year run rate basis, just doubling the Fidelis contribution results in indicative Group revenues of c.£10m, underlying EBITDA of c.£1.15m and EPS of c.0.17p. A strong start to H2 has been made with record trading achieved by Fidelis in April and May and consequently, we believe REACT remains comfortably on track to achieve our full year forecasts."

Excellent H1 results and outlook. Revenues are up 20%, and EBITDA is up hugely to £369k from £85k (well ahead of the projected £350k in the trading update).

H2 has "started well", and Fidelis will be added for the entirety of H2 and is trading very strongly post-acquisition. Plus there's still £0.7m cash in the bank after paying for Fidelis.

There was a small hiatus in reactive work in April/May, but this has been boosted recently with "high demand returning", and the overall outlook is very encouraging:

"H2 has started well; Fidelis, acquired at the end of March 2021, reported record trading months in April and May to continue their solid track record of growth. This, together with important post-period customer contract wins for REACT, announced on 20 April 2021, 26 April 2021 and 18 May 2021, support a strong positive outlook for the medium to long term."

Tomorrow morning then.....

It's also worth noting that the directors own around a third of the company - including three director purchases in the last year - so their interests are aligned with the rest of us.

I assume after the upcoming results WH Ireland will reinstate forecasts.

Given that there's now something to shout about, perhaps the directors can begin to embrace contacts with investors via Investor Meet etc.

WH Ireland have issued an update note as follows - no specific forecasts as yet, but hopefully a dividend of at least 2p per share coming soon.

It would be great to see that £5.5m cash pile utilised for one or more of those expected and transformational acquisitions.....

"Croma Security Solutions (CSSG) – Corporate –

Positive update; trading ahead of management expectations and last year Market Cap £10m Share Price 67.5p

A positive update from CSSG shows that both Vigilant and the Systems business are trading well, with overall EBITDA set to exceed management expectations in the year to 30 June 2021, coming in at >£1.85m. Notwithstanding one-off business, which was in run-off and which the company has exited since the prior year, and also the fact of FY2021 bearing a bigger burden of lockdown that the previous year, CSSG has still succeeded in lifting EBITDA by 6% YoY (FY2020: £1.75m). It has also succeeded in generating a higher level of profits in the second half (H1 / H2 split: 48% / 52%). Renewed lockdown impacted the company’s locksmiths and systems businesses in particular during its Q2 and Q3 trading quarters (i.e. from December to mid-April). Net cash at £5.5m is well up on the September 2021 number of £3.6m

In terms of the divisions, both sides of the business are progressing well. The Vigilant business, which is a market leader in its field, delivering services ranging from guarding by ex-military personnel to front of house in residential and other buildings, is benefiting from the increased need to guard empty premises. We expect this will continue post-pandemic. Its front of house service is continuing to achieve increased market share and is integrated with its security services offering. Beyond this, in the systems division, we also see growth, with entertainment centres increasingly open, and more expected in that realm post the planned 19 July opening of public facilities such as cinemas and theatres.

WHI view: It is pleasing to see balanced growth within CSSG, and the response to the pandemic was good, while the company is now responding to new post-pandemic requirements from its clients. The company should prove a beneficiary of increased economic activity and more opportunities both on the systems and the manned guarding fronts. The latter in particular has a strong overall offering to provide to local authority and other clients. We note that the dividend will be resumed and anticipate, without having formal forecasts for CSSG, that it will repeat levels paid in recent years, given the company’s statement that the final dividend will reflect the results it anticipates."

The year end trading statement is out - and it's excellent. Results are better than anticipated - and will be ahead of the prior year despite the pandemic.

There's a hint that the final dividend will be terrific, and there's confidence that the business will continue to grow..

The £10m m/cap is bonkers given £1.85m EBITDA - at minimum - and a £5.5m and fast rising net cash pile!

Quite a few small buys in succession coming in this lunchtime after 12.50pm, including a 5.5k buy at 90p....I can't see a specific catalyst, but good to see.

"The company is also raising £3.35m through a placing and PrimaryBid Offer of new shares, at 40p, subject to shareholder approval on 1 July. Around £1.5m of the proceeds will be used to leverage Pelatro's position in 'big data' analytics to enter the mobile advertising space, a market that is worth $100bn and projected to grow to $221bn by 2024. I highlighted the growth potential here in my last article. The balance of the fundraise will be used to strengthen the company's balance sheet.

The point is that Pelatro could very well exceed Cenkos’ revenue forecast, which factors in 80 per cent year-on-year growth, and move into a small operating profit, so reversing the 2020 loss of £1.9m. Furthermore, the building contract momentum and ARR stream means that Cenkos’ 2022 revenue estimate of US$8m is starting to look far too conservative, especially as the directors have US$16m of contracts in the pipeline.

Prospects of outperformance in 2022 is certainly not in the price. Based on Cenkos’ 2022 cash profit estimate of $3.5m (£2.53m), Pelatro’s enterprise valuation (post the placing and PrimaryBid Offer) of £16m equates to around six times forecast cash profit, hardly excessive for a company that is now generating operational cash flow and has a growing valuable ARR stream. In fact, Pelatro’s enterprise valuation to ARR multiple is less than half the average rating (eight to 10 times) for software companies operating Software-as-a-Service models.

Pelatro's share price is up 8 per cent since my April article, albeit the price pulled back sharply on news of the equity raise. Once the dust has settled, I fully expect the upward trajectory to resume maintain my 100p target price. Buy."

in full here FYI as it's subscriber-only:

"Marketing re-rating potential

Our small-cap stockpicking expert highlights a precision marketing software company that has been winning a raft of new contracts and could be on the cusp of an earnings upgrade cycle
June 21, 2021
By Simon Thompson

- Framework agreement with large Asian telco worth US$0.5m in revenue in 2022.
- Two new contracts for 2021 year worth US$0.5m.
- Over 97 per cent of analysts’ 2021 revenue forecasts already covered by order book.
- Placing and PrimaryBid Offer raises £3.35m.

Aim-traded Pelatro (PTRO:43p), a company that makes its money by providing 19 large telecoms operators with precision marketing software, has been awarded multiple contracts since I last highlighted the investment opportunity (‘Profit from big data analytics’, 19 April 2021). The company has also been increasing annual recurring revenue (ARR), thus de-risking the investment case and enabling investors to attribute a higher valuation to its growing income stream.

Pelatro uses 'big data' analytics (artificial intelligence, machine learning and other analytical techniques) to reveal patterns, trends, associations and behavioural traits of telecom subscribers. These insights enable mobile telecom operators to monetise their data, boost average revenue per user and their share of subscriber spend while also reducing churn rates.

Having rolled out its leading mViva software platform across 23 markets, handling data of 800m clients across Asia, the Middle East, Africa and Latin America, Pelatro is leveraging its position further by announcing a framework agreement with one of its large Asian telcos, which has 230m subscribers.

Pelatro's current engagement with the telco's operating companies includes annual maintenance support and ad-hoc change requests. These have been brought under the framework agreement, with a base level of man days for change requests forming part of the contract every year, thereby making them recurring in nature, along with an annual maintenance fee. Operating companies can also now access other products and services (on an agreed price list) from Pelatro without the need for price negotiation. Pelatro will be paid a fixed amount each quarter for all its base products, thus creating a valuable ARR stream. The incremental revenue for the 2021 financial year will be around US$100,000, and is expected to ramp up to US$500,000 from 2022 onwards.

In addition, Pelatro has announced two contracts with existing customers worth a total of US$500,000 in revenue, one for additional modules as the client moves parts of its activities onto the group’s mViva platform, the other is for change requests. The revenue will be delivered in 2021 and means that Pelatro has already secured US$7m of house broker Cenkos Securities’ US$7.2m revenue forecast, a high proportion of which is recurring in nature as the company transitions its business model away from lumpy licence fees."

Another 250,000 shares bought at 84.2p and 84.4p in five 50k tranches this morning. Someone's keen to take the seller's stock off his hands.....

A load of buying coming in now, and it's starting to have an effect - the bid price is now up from 83p to 84p:

More coverage here:

Https://www.streetinsider.com/Intl+Ratings/Berenberg+Starts+CentralNic+Group+PLC+%28CNIC%3ALN%29+at+Buy/18592159.html

Up 4% on 1.4m shares traded - hopefully that indicates a scarcity of shares.

Berenberg have initiated coverage with a Buy and 180p target - over 100% upside.....

Https://www.proactiveinvestors.co.uk/companies/news/953167/centralnic-shares-offer-over-100-upside-reckons-berenberg-953167.html

"Centralnic shares offer over 100% upside, reckons Berenberg
Wed 23 Jun 2021

Centralnic shares offer over 100% upside, reckons Berenberg

The trio “often overlooked because they are viewed as cyclical, too expensive or too small”

Centralnic Group PLC (LON:CNIC), Spirent Communications PLC (LONLSPT) and Dotdigital Group PLC (LON:DOTD) are the top three shares to buy in the networking and communications subsector, according to broker Berenberg.

The trio are “very different” but what connects them is their “top-three positions in niche and highly technical markets”, with all three stocks “often overlooked because they are viewed as cyclical, too expensive or too small”.

In a note to clients on Wednesday, Berenberg initiated coverage of the three companies with ‘buy’ recommendations on each, with CentralNic given a price target of 180p that offers around 120% upside to the last close price, Dot Digital 290p and Spirent 310p, offering around 30% upside for both.

CentralNic, through operating across the entire domain name supply chain from top level to backend and via wholesale and retail channels, has 99% SaaS-based recurring revenue and “customers hardly change supplier”.

Management is using the company’s free cash flow (FCF) to consolidate what is currently a fragmented market, the analysts noted, acquiring attractive acquisition targets at near distressed multiples.

With the group’s new online marketing business offering “potential for substantial organic growth, which we think has been largely overlooked by the market, we see scope for outperformance”.

As the business “remains unknown to many investors”, the analysts said it has a P/E ratio of around 10 times, which is “highly attractive despite its market opportunity”."

and good to see a succession of buys just now at the full 700p offer.

Arden have retained their 9.3p target price on their "conservative" model:

"Our outlook remains unchanged for Dekel based on these results, given the immense strain on the sector that the pandemic placed not only in terms of the pricing environment but logistics too. Dekel have shown that their ‘best in class’ operating model is robust. Diversification through the imminent ramp up of their cashew nut plant will drive further shareholder value and reduce concentration risk to palm.

We make no changes to our target price and reiterate our buy rating at 9.3p representing an 97% upside to the current share price. Our model remains conservative given the favourable environment for palm oil prices and visibility of cashew nut revenues."

INSE have jointly produced a new guide for businesses looking to align their reporting with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD):

Https://www.edie.net/news/7/edie-launches-new-business-guide-on-the-Taskforce-on-Climate-related-Financial-Disclosures-recommendations-/

"What are the TCFD recommendations? Why does climate disclosure matter? How do you access the financial impacts of climate change? And, what is scenario analysis? This free edie Explains guide gives you everything you need to know.

-----CLICK HERE TO DOWNLOAD THE GUIDE----

The Financial Stability Board’s (FSB) Taskforce on Climate-related Financial Disclosures (TCFD) is a market-driven initiative that provides a suite of recommendations for voluntary and consistent climate-related financial risk disclosures in mainstream company filings.

However, the Taskforce and the TCFD movement are still in their infancies and as such corporate adoption of the recommendations is still relatively low. This 10-page guide outlines all the key questions and considerations that businesses need to improve climate-related data disclosure in line with the TCFD recommendations.

With the TCFD recommendations now backed by more than 500 companies globally and the G7 confirming that climate-related disclosure will be mandatory at some point in the future, now is the perfect time for businesses to examine their own practices in alignment with the recommendations.

The guide has been produced with assistance from supporting partners Inspired Energy plc and features an expert viewpoint from the company's director of client management (ESG) Rosemary De Vos on why now is the time to get ahead on disclosure.

“While transparency on the risks is what is being sought here, investors are becoming increasingly aware of companies who are working on TCFD compliance today and those who are not,” De Vos said in the viewpoint. “This alone should be a signal for CSR, ESG and sustainability professionals across the private sector to recognise the need to deliver on TCFD disclosure in their own companies before April 2022 arrives.”

The results for last year are fine in themselves, especially considering the pandemic.

But it's the prospects for the current year and going forward which are outstanding and take priority here:

"Together with Ayenouan we have a defined path in place to treble group revenues to c. EUR60million within the next two to three years. Arguably, this is a conservative estimate as it does not take into account our plans to add a third commodity to our portfolio and also the joint venture agreement we have with Green Enesys regarding the potential development of a 30MW solar PV plant and a 5-6MW biomass plant using feedstock from Ayenouan. The possible biomass plant would also add to our already strong ESG credentials, which are expected to be independently validated later this year following the completion of the RSPO certification process, which could in turn open up export markets for our palm oil."

"The momentum behind the business continues to build in the current year: our palm oil operations are on course to post another improved set of financial results for the first half; the cashew purchasing programme has commenced in anticipation of the plant at Tiebissou commencing processing in the coming weeks; the post period end long term debt refinancing has extended the maturity of our debt profile and strengthened our balance sheet; and the planned completion of the RSPO certification process for our palm oil operations later this year will potentially highlight the attractiveness of our project and open up export routes.

Takeaways from each of the above neatly sum up what we at Dekel Agri-Vision are focused on building: a highly cash generative agriculture group; a diversified portfolio of growing revenues streams; a strong balance sheet to support future growth; and a business with best-in-class ESG credentials among its peers."

RNS confirmation that the interims will be next Tuesday, with an accompanying Investor Meet presentation next Friday:

Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Notice-of-Interim-Results-Invest/85433068

Excellent news - a contract extension from Ikea:

Https://uk.advfn.com/stock-market/london/wincanton-WIN/share-news/Wincanton-PLC-Wincanton-awarded-contract-extension/85433020

" Wincanton awarded contract extension by Ikea

Wincanton, a leading supply chain partner for UK business, has been awarded contract extensions by Ikea to operate its customer distribution centres (CDCs) in Medway, Kent and Harlow, Essex, for five and two years respectively. Wincanton will continue to ensure a great service for Ikea's customers across Greater London and the South-East.

The contract extensions represent continued progress against the Group's strategic focus on its growth markets, particularly in Digital and eFulfilment. They also demonstrate Wincanton's ability to capitalise on the shift in consumer purchasing habits that have accelerated during the course of the pandemic.

James Wroath, Chief Executive Officer of Wincanton, said: "This is another important step in our long-standing relationship with Ikea and more evidence of the positive progress we are making in our Digital and eFulfilment business. We are proud to have supported Ikea in achieving significant volume growth in the past year and these extensions reflect both the success of our partnership and the underlying strength of Wincanton's broad supply chain capabilities."