Member Info for valpha

Thanks Lucretuis. This is the most positive I think I've ever seen you write about this company, hopefully good things coming.

Blimey - have management realised investors like it if you update them regularly?

Amazing they didn't have a presentation from the CFO at the CMD. Would be great to hear how they intend to scale margins to hit their target of being rule of 40.

Agreed. Management have it all to prove. They've done nothing but disappoint shareholders, though I will say that there isn't a SAAS company around whose 2021 targets panned out as they hoped at the time.

James needs to realise that talk is good but he actually needs to deliver now. Under promise, over deliver. It's really not complicated. Rebuild trust.

I don't see the note on their website, but that seems fully achievable. James has consistently said they expect a high-teens ARR CAGR. Getting to £50m in revenue is a 17% CAGR from 2025. They've low-balled the FY26 revenue number to try and get into the habit of beating expectations.

ARR and revenue growth should roughly mirror each other. They don't have a good answer when you ask why revenue growth is going to be so much lower in FY26 than the ARR growth they expect.

For me, the question is can they get decent margins while growing high-teens. They've said they can become rule of 40 by 2028. That would suggest low-20s EBIT margin if they're able to grow high-teens at that point. Of course, this stock is absurdly cheap if any of these targets are remotely achievable. Mgmt should really use their cash on hand to buyout Canaccord to remove the overhang of constant share sales. Doing that at this valuation would be the most shareholder friendly thing they can do.

I don't know which small caps you follow, skid, but it is a very common practice to live webcast such events and, fair enough, reserve in person attendance to institutions. Then have someone competent filter out questions that they don't think are appropriate that come from the cheap seats. Additionally, there is only a relatively small handful of institutions that can buy a company as illiquid as PCIP - I doubt there are more than 15 attendees at this thing. Whereas I personally know of retail holders that own a significant % of this company that were not invited. Shambles.

Indeed. What a massive own goal. The same institutions that have constant outflows and have no money to buy Pci-pal. I like James but I can't wait to be able to sell this dog of a stock at a reasonable valuation, if that ever happens.

Yes, well I work in the investment business and I agree - the majority of fund managers are pretty clueless too. Especially those that are stuck covering a dying asset class like UK small caps.

With all due respect to these two, I don't think they know the first thing about pci-pal. But always good to see new buyers.

Bit confused as to why the stock is up so much. What in those results was new information...?

In fairness to PCIP, I'm not sure we need to know how their internal IT department is run!

I think fortunately the big holders have too much power to allow it to be taken on the cheap like that. Canaccord, Gresham House and Octopus own over 30% between them. Remember Livingbridge went straight to the big holders with their 90p offer during the patent trial.

... less than 1.5x revenue. Biggest bargain they could possibly find is staring right at them.

They should be buying back stock rather than looking for small acquisitions! No small acquisition is going to offer better value than buying themselves at