Member Info for Spratt1982

Nebula appreciate you creating a new account to inform us about your concerns. 😂

Https://www.thebusinessdesk.com/yorkshire/news/2133458-big-data-business-hails-successful-recovery-and-beginning-of-growth-phase

https://www.business-live.co.uk/technology/cirata-boss-hails-improvements-admits-30740519.amp

For those haven’t seen the video accompanying the RNS. As always Kelly is upfront and not sugarcoating anything..quality CEO.

Cirata PLC - Q4FY24 Trading Update #CRTA https://www.voxmarkets.co.uk/rns/announcement/58e9f7e9-4493-4aac-9dda-5be08efc450e #voxmarkets undefined

An interesting insight from another investor..

‘Existing and new II, HNW investors waiting to scale back in via a raise will now have to buy back in the open market..add that the free float is very very low will certainly make things interesting..and the shorts we discussed previously are in for hard time trying to close..’

Indeed, the holy grail of an aim company is being cash positive..that is now on the horizon at Cirata.

Trolls must be hating this.

Again for avoidance of doubt look out for the following non invested trolls:

Hastings

Meister

Walkley

Tt1982

Plus a few others I can’t be bothered to remember

The fact you’ve admitted to not being invested means no gain or loss for you here..yet here you are first thing…beyond weird..but I know your game…🤡🤡

Ofcourse Hastings ofcourse..because we’re all here for number of deals and not the SP. 🤡

Some will no doubt be disappointed with the upturn in SP..

Key takeaway’s for me :

Management does not anticipate a FY25 fundraise for working capital given its assessment of the current pipeline, the strategic actions to improve predictability and the significantly reduced cost base·      Management does not anticipate a FY25 fundraise for working capital given its assessment of the current pipeline, the strategic actions to improve predictability and the significantly reduced cost base

Strongest bookings quarter since Q2FY22

Expected annualized cash overheads reduced to $16-17m exiting Q1FY25 with actions already taken

The Company's cash balance was $9.7m as of 31 December 2024.

Short term trading receivable position increased to $3.6m as of 31 December 2024 (Q4FY23: $1.8m). Expected collections H1FY25

Great job Kelly and team - best quarter since 22 and further reduction expected with cost base.

Bring on ‘25!

Btw I’m not really sure anyone of the regular trolls here read the RNS’s…it’s stated quite clearly:

Deals have slipped from Q4 hence the revised forecast..yet some are waiting for the update for that to be repeated.

Also the reason for the December update was to inform that market that they are pulling the Q4 numbers due to the slippage..

None of the above is going to be new news at the next update…makes you wonder why people are predicting what is already been announced..do you guys not read?

I find it quite incredible that many have stated they don’t trust SK, yet feel compelled to keep posting the same over and over again..

Quite simple, if you don’t trust a CEO then why would you even consider a share…unless of course you just want a dirty trade..

Pearl, just to be clear I’m certainly not opposed to raises if done the right way they can be accretive and now we have better control of our costs under Stephen Kelly it can be part and parcel of achieving a high growth strategy.

You and TT seem to share the same one liners..multi account troll? Your concern re my trading is really touching..bless you😘. Your Local must be opening soon 🍺

Walkies, I’m glad you think 14-18 contracts is a pessimistic number..looks like you’re finally on board.

Also that wasn’t my post but a quote from Pearls post.

Meister…wet the bed again?..bless.

Also a cash burn of $2m for Q4 would mean we would still have min approx $11m in the bank, and I would expect no further raises as we turn cash positive in q1’25

Great post from Pearls

I think many are misunderstanding the liquidity levels at CRTA. In the third quarter update, SK advised that:

"- On track to achieve $20m annualised cost run rate as we exit FY24

· Cash position of $12.9m as at 30 September 2024

Guidance retained for FY24 bookings at $13-$15m, YTD $4.1m

Bookings in Q3 2024 were $1.7m (Q3 2023: $1.7m), with the business mix driven by DI growth, accounting for 82% of bookings and DevOps software accounting for 18% of bookings.

the remaining $1.7m of the prepay has been retired early."

Meanwhile in December, SK said:

"Cash overheads run rate is currently c.$5m for Q4, slightly better than expectations. Cash burn for Q4 will be dependent on the closing bookings and cash collection for the quarter once complete. It is anticipated that Q4FY24 cash burn will show sequential improvement relative to Q3FY24 (Q3FY24: c. $3.2m).

We inherited a broken business from a peak annualized cost base of $45m per annum to a company exiting FY24 with a cash overhead of circa $20m per annum. Our cash burn in Q1FY23 was an unsustainable $11m per quarter and as we exit Q4, Cirata will be on a path towards cash flow breakeven.

The Data Integration product performance has improved from -87% decline in Q1FY23 to 180% growth in the last reported quarter, Q3FY24."

In combination, I believe the following will be advised in January's update:

cash burn for Q4 2024 will come in under $2m, after all the number of employees is sharply down now [just 92 for the last quarter]. There is also the misunderstood $1.7m prepay to consider. IBM are now paying for each contract, there is no prepay anymore. In Q3 they did 8 contracts, I believe they may have concluded 14 - 18 in Q4 as it is their busiest month. The issue though is that there's always slippage, and SK advised on this so I think annual FY 2024 bookings will come in around $12m - I don't expect it to be far off the lower end, but a number of contracts are signing into 2025 for costing and accounting purposes. Forward looking, I expect SK to confirm that whilst 2024 ended at a cash flow break even level, from Q1 2025, growth is beckoning, with increased orders being signed, numerous DI deals being struck like the IBM one, and a cost base of around $20m to $17m.

CRTA are uniquely positioned in the field, this I expect them to demonstrate as the their reputation continues to come back and big buyers reconnect and start using them again. It's just waiting now for a dynamic revaluation once SK advises the FY2024 details.

Yes me too, but still have some powder in case those AT trades take it lower.

He said it in the video that accompanied the RNS at 3min,5secs in.

https://stream.brrmedia.co.uk/broadcast/675afb34139c6b2fd9c47e00

‘we expect out Q4 cash burn show a further significant improvement as we exit Q4’…

Mozax , I agree another opportunity to add thanks to the algo trades. Looking fwd to seeing the Q4 results, I believe they will show the trajectory here has changed and we will see the curve up into profitability. Also interested to see if Pearls assumption of multiple deals closed with IBM under reporting threshold holds true..certainly would tie up with Kelly’s confident quote re the cash burn being significantly reduced in Q4.