RE: Countdown to FY earnings8 Mar 2021 14:15
Not sure what additional news will come out on results day, as we already know the main numbers from the Jan trading update. Perhaps some more info on what's happened since?
In my opinion, it's really a case of patiently waiting for the existing contracts to keep growing over a 3-5 year period and for the recently signed deals to keep coming on stream. This will all be seen in the ever growing volume of EUS and will filter through to cash and net profits due to the high operating margins.
They have only just turned to profit and net cash generation, the real re-rating in share price will come with the next few moves up in sales to £20-£30m, when net profit will start showing significant millions. In 2017, when the last full year sales were £2.6m, with losses of £4.6m the shares were 275p. Now with £12.2m of sales, cash profits and a 70% growth rate they are lower - makes no sense.
The main issue is that there is little coverage and the shares are illiquid. I've now been buying for months and on many days I failed to get orders filled.