Member Info for Taser

Look there is something not here beyond the debate about the revenue and PBT numbers and to everyone’s relieve I won’t repeat myself on the obvious remedial actions but what would be nice is to get some thoughts on the consistent trading patterns, chart and potential leak (no pun intended).

Buys again currently below quoted price so expect another downward movement! Wow it has been brutal and consistent. The chart is no help, falling through yearly lows and any support. So what’s up beyond a weak qtr 1? The recent Canaccord report would indicate absolutely nothing is wrong and there is a certain comfort in this as their credibility is on the line and it was written just weeks ago (even if the figures look punchy for profit lines). But this is not reflected in the market. Worst case scenario they delist from AIM and go private. Really, really hope they don’t even give this a thought and they would need 75% support, not impossible with Patrick holding 25% plus % held in Plain Sight Systems (the next biggest holder). However, we didn’t get a clear answer to the US listing and AIM has created the liquidity needed and we also didn’t get the update post conference. Maybe it is a leak of news regarding qtr 2 in which case get the numbers out there as at the moment we are getting punished twice.

Something is up anyone care to share?

‘I can't see this dropping below £50m market cap’…that aged well….

Thanks for your concern but my mental health is tip top. Just trying to stimulate educated debate and maybe get any insightful opinion. Happy with a portfolio way above industry average, but could be better if the interims here match broker report estimates

Are you for real. It is like debating with a school kid. Of course it is an estimate. That was stated clearly and of course the pnl is for the 4 months! If it is until April . Pro rata that and you get a clear disconnect without a rationale to explain where it is made up over the next 8 months. When you find yourself debating with an idiot stop. You truly haven’t a clue and again the last 4 years H2 has trailed H1.

- Profit Before Tax declined by 2% to $2.17 million (April YTD 2024: $2.21 million) from watr’s own quarterly update

- 10.2m estimate from Canaccord broker report sourced from WATR website.

Seriously?

2.17m PBT up to end of April, Canaccord (7% shareholding)estimating adjusted PBT for Dec25 10.2m. Something doesn’t add up especially when the second half of the year has always seen lower ALD revenue than the first. Discuss

Texas Acquisition - A $12m price tag for acquiring $6m of annual sales - so $1.5m per quarter. Yet ALD revenue between 1Q25 and 4Q24 is up only $1.1m. That implies zero growth on a pro-forma basis. Discuss

295p

Poor effort. I am rightly negative on this share backed by 4 years of facts. You seem to be an apologist for the company happy to see your own money used to fund shares that have decreased in value. How can that be perceived as positive. Sad that you can’t add any insight other than cutting and pasting the printed rhetoric. Scared of making any calls of your own.

The positive, as with all shares that fall to lows is the future. The valuation is fair based on quarter 1 numbers and the shock pnl number for April. However, if they can convert some leads into national contracts and get to the holy grail of recurring income then this can be turned around. It is the hope that gets you but the path is there the management just need to pivot their emphasis to actions rather than words. We need a reduced headcount in the merged hubs. We need that actioned and communicated to engender a belief that margins will improve. We need confirmation of the path to reduced renumeration outside of the Dallas network. We need the three prongs of growth talked about converted to realities. It can happen but it needs the company to acknowledge its failings and address the obvious mistakes. It can be done

302p to buy now. Someone cheer me up, preferably Patrick. Interims are my D day, given this so many chances to turn around and they have failed for 4 years. Just a sign that the strategy is working based on the PNL would be most welcome.

As stated expected end of next week/start of following one.

Share price 306. 303.20 to buy, normal games. Do WATR ever do a good news RNS outside of their regulatory required ones? Or asking for much just for once a good day…

I really don’t know how the quoted sp works for WATR. All day long 303.90 to buy. Everyday there is a mismatch .

I was looking at a presentation from April this year just as a bit of due diligence and had to laugh when one of the bulletin points highlighted was they believe the share price undervalues the firm. Firstly if so why has no director except for PS ever bought any shares? Think about it multiple times this has been said so the natural thing to do is buy some not only taking advantage of a perceived low price but also acting as an indicator to all other retail investors. Secondly, although there are many macro factors impacting the sp the main driver is the company itself - performance, investor engagement, margins, growth, cash flow etc, all of which management control so if you point out the company is undervalued also be brave enough for a bit of self reflection and honesty. Integrity and credibility go a long way to sustainability.

Half dreading half anticipating the interims. Let’s hope for one of the three drivers of growth referenced by Canaccord kicks in (also note Canaccord is a notable shareholder, if only independent brokers covered this as well we might get some analysis free of any agenda)

No set date but expect at the end of next week.

The question about the listing in the US got a rather garbled reply from Patrick. Credibility is at a low. They need to deliver. Just at a loss as to their treatment of investors. They gleefully pointed us in the direction of the Dowgate broker report a few months back in terms of expected revenue and a share price prediction of 800+. Now Canaccord cuts that way down and not a single word on the subject from the board. They seem to have no ability to self reflect and own the situation. Anyway we wait and see but CEO can say he can’t see this going under 50m mkt cap but if the interims are bad then why not.

We may now be in a closed period for directors but if no purchases post publishing then you got to ask the question why not. The answer maybe unpalatable.

Anyway fingers crossed.

305p to buy.

So interims in a few days and obviously we never got the promised update of the back of the Canaccord conference. I still maintain they have to up their game in terms of building shareholder value. Have we had no new contracts of consequence since the last announcement in Feb 2024?

The share price dropped to lows and never bounced. Over 4 years as markets hit records this has been an unmitigated disaster in terms of returns. The only good thing is Knell is way off getting his options vested and rightly so.

Again when they announce the interims watch out for the trick they play every time. State franchise income is down due to repurchases but don’t say revenue is up at company level due to their integration. Texas alone should lead to an extra 1.5m a quarter in revenue so be wary of comparisons. We need to see real growth and as to rolling out the ‘Dallas template’ to increase margins elsewhere well that is mostly explained by lower labour costs not some magic formula. Good luck cutting salaries and building a motivated workforce.

Just by the law of averages they must be able to get something right. The interims will be interesting but only if we get the detailed picture.

Correction: One other annoyance is they are quick to point out why franchise revenue has fallen due to purchases by the company but don’t note the positive affect to revenue of bringing it in house. The market, investors are not stupid!

Also tell us why H2 2025 will buck the trend. Let investors weigh up the information and reason for the seasonal disparity and why it will be diffferent this year. We need more information. We need a management that values shareholders, we need a management that can enhance investor relations, one that can expand the investor base and gain credibility by building shareholder value. How can they fail so badly when all that is needed is common sense. I could so a better job and they are the ‘experts’

Hung the shareholders out to die. No update forthcoming and so we blindly need to wait for the interims and cross our fingers rather than have anything substantial to hang our hat on. Also no bounce of lows means any further bad news will see us fall through any weak support we have at £3.

One other annoyance is they are quick to point out that franchise revenue has fallen but don’t note the positive affect to revenue of bringing it in house.

The Dallas franchise was doing 6m revenue, 1.5m a quarter and yet for quarter 1 we saw less than that rise from prior quarter. No growth! With 29m revenue to the end of April pro rata would get us to 87m. My issue is the last 4 years have proven H2 is weaker than H1. They are going to need to turn that around and some.

They have completely lost investors whether existing or potential purely from poor decisions.

Hi, yes I own and I post out of frustration. I have other shares doing well and I leave those and watch from afar. This one however seems to cause me the most annoyance and I apologise for the boring posts but to be fair I expect very few people read them!

My average is over £4. The issue here is the potential - sector, market size etc. it should be a winner. I hold because one I hate to crystallise a lose ( and that’s completely my fault not acting on my stop loss - all me) two because each time I think it can’t get worse it does. It is not rocket science simply engage with investors and potential investors, report the wins however small, if the directors state on multiple occasions they believe the shares are undervalued it makes sense that would be actioned upon and purchases made. They can turn it around just stop the bs interviews, deal with the facts and publish some investor presentations. And if you promise an update straight after a conference do it - so easy.

So I will not post again. I understand the numbers. My concern is margins will only tally with Dallas with wage cuts. My way round that is to initially gain from synergies and cut admin costs from merging hubs which they seem to be belatedly doing. This should also reduce admin headcount but again no official news on numbers.

To me it is easy. So that’s why I post. The contradiction between the companies actions/inactions and the obvious remedies winds me up.

Anyway let’s hope 300 is bottom and the tide turns. It can and should.

Just to add that the numbers Dowgate published and maintained even after qtr 1 results, I expect, were strongly influenced by WATR mgmt. These have now been revised down by Canaccord but what it does show is the over promise and under deliveries of 2023 and 2024 failed to stop them from repeating the same mistake again. It is this pattern, rather than an anomaly which feeds market sceptism and detrimentally impacts the share price.

it is not a widely held stock or even one that is on many people’s watch list. It is illiquid and can move either way very quickly. Just a nod to investors and the market would not go amiss. Now let’s see their latest update and maybe a ‘good news’ RNS would be most welcome

The problem is qtr2 may well see a continuation of the issues. Although revenue was up (still below original broker numbers) profit is a big worry. As per article below

‘Crucially we are also treated to an April YTD set of numbers. This was shared by WATR presumably with the intention to encourage and build a stronger business case. It had the opposite effect for me. The numbers are weak. Considering the expenditure on buying back Franchises a 2.5% increase in ALD revenue in the stronger half of the year (vs the 2024 average) is a disappointment. Product income down a sixth vs 2024 is a real disappointment, and while its international business at +21.6% is a bright spot that is only a +$0.5m increase in revenue and perhaps +$0.1m profit outcome, and only half of my own forecast number that I was expecting.

April is described as “strong” and “significant”, but the truth as I see it is that it smells strongly and is a significant disappointment. Just because you use words like strong don’t just make it so.

If you strip out the 1Q25 result, yes, revenue is 10% higher compared with 1Q25 ($0.7m higher to the monthly average in 1Q25) but profit falls by over 50%. April delivers just a $0.27m PBT. I’m glad they shared the additional April data, even if they didn’t intend for it to sound the alarm.’

Dallas high operating margin is largely down to labour costs. So depending on unions or contractual restraints that may get passed to other areas, but when struggling to find sales staff and resentment from current employees productivity may suffer. But the biggest factor you are missing is for the last four years the second half of the year is considerably weaker than; the first. They may well turn it around but again whilst we are waiting and hoping the market is waiting and waiting. If we were able to say look directors are buying, look we have these new contracts that will contribute x to revenue and the bottom line we give potential investors tangible actions to initiate a recovery but what can’t do is rely on rhetoric when prior years it turned out to be nothing but bluster.

I hold and I hope. But it would be so easy to change the momentum here. It has huge potential but ….

You are just regurgitating the company literature.

The buyback policy and contracts are extremely relevant to our situation.

You seem to skip a lot of the history and why promises today are not necessarily have much credibility. We were told in 2023 and 2024 that we were in the investment stage and we would reap the rewards in the second half of 2024 onwards when the integration with Salesforce and new training hub were complete. We didn’t and the deliverables were expensive and late. Now they are plugging TES as the new company winner. It may well be but those that have been here a while would not laud it too quickly.

Your opinion is not aligned to the markets opinion. We have seen a fall from over 400p to 300 odd in a matter of months. Not due to the overall small cap market but to a continued underperformance. Yes we are growing but not enough to risk wider investment to mitigate lack of dividend. A growth company also needs a growing PBT and if you care to look at 25E to 26E by Canaccord (the house broker) growth is absolutely minimal.

I agree I didn’t think it would sink so low and I see a way back but that will come through great interims or signs mgmt back their own predictions with purchases. It is the companies fault at the end of the day.

Seriously what on earth are they doing. Still persist with token buyback that is doing absolutely nothing. There are such obvious solutions and yet their neglect and actions border virtually on share price destruction in my opinion. Close to calling it a day. Sector great, market scope great, company ####.

Director buys, cease share buyback unless cancelling the shares, investor presentation - where is it?, less bs and more tangibles.

Canaccord reported estimated 26 figures very conservatively and correctly. Stating any one of WATRs three prongs of growth would have a material impact but we have not had one standalone RNS regarding contract wins sins Feb 2024! Just so far off what the market demands to get this rerated.