Accumuli Share Discussion Threads

[vasilis] 28/11/2014 09:42

Very clever of ACM to use an RNSNON in this fashion to basically 'advertise' the company's solution to a known current and serious problem. I particularly like the way Jon Inns the Director of Product Management addresses one of the main concerns of potential customers, namely cost -

"The challenge is how to minimise the impact this ruling will have on the ISPs. This will be a potentially expensive and complex requirement for them to fulfil so we have developed a solution that can deliver on the requirement with minimal overhead to address both of these concerns. DDAM is proven to be able to handle vast amounts of data, is quick to deploy and it's not going to break the bank."

And as it's a proprietary solution this also means that once a customer is signed up then there are all the exclusive upgrades and maintenance requirements (ie rolling revenues)that follow down the line. For a small company such as ACM such an opportunity could be very significant as rivaldo points out. Hopefully we'll see an RNS announcing a new contract soon.

[rivaldo] 28/11/2014 09:05

Completely agreed Adam.

Nice RNSNON earlier today - the significance lies in this being ACM's "proprietary software providing DNS, DCHP activity monitoring, archiving, reporting and analysis", i.e high margin stuff from ACM's own software.



If this is rolled out amongst ISPs then presumably this is going to bring in some very high value contracts. There must be a fair bot of competition out there, but then ACM is only a £37m m/cap company, so it only needs a small degree of success to make a material difference.

[adamb1978] 27/11/2014 16:34

Have no problem with ACM buying companies - there's not much point having cash in the bank earning nothing. Better to buying growing synergistic businesses. CUrrent multiple for these guys is very undemanding

[boadicea] 27/11/2014 15:46

It seems to me they have a strategy and it's working.
Main thing will be to keep an eye on the cash flow as with multiple deals the water gets muddy.

PS: I assume any deals reported today at 22.7p or above are actually 'buys'. All sells are near to bid price at the relevant time.

[buffetteer] 27/11/2014 14:21

Oregano
Good post thx. Intrigued to know what u think the real LFL is ?
I don't mind but to build if they're earnings enhancing and I think there have been .

[oregano] 27/11/2014 13:29

I believe the issue here is as much what they don't say as what they do. Accumuli has bought growth through acquisitions. There is a prize for anyone who can identify their underlying organic growth. Instead they use opaque statements like;

"Revenues from Support and Managed Services were 10% higher than the comparative period on a like for like basis, which, after adjusting for customer attrition and renewals at lower margins, equates to gross growth in excess of 10%. "

[boadicea] 27/11/2014 13:16

Looks to me that we have a moderate seller (another 125000 just gone through) who is using the promising results and comment to unload whatever the market will bear at around the current price.
Nothing serious I suspect - He may merely be reducing to protect a profit he is showing over the past year.

[macarre] 27/11/2014 09:28

Level 2.... ticking up.

[macarre] 26/11/2014 16:30

Have accumulated earlier this pm @22.78.

[baxter99] 26/11/2014 15:55

Investors are so impatient these days... jam tomorrow etc, can't wait. I am happy to wait for jam as it always tastes nice.

[qs99] 26/11/2014 15:41

have topped up here thanks for IC summary...

[masurenguy] 26/11/2014 15:18

Cheers hastings/rivaldo/gb. I added earlier at 22.7p which is shown by ADVFN as a sale because it was below the prevailing midprice.

[gargleblaster] 26/11/2014 12:41

IC write up - hopefully support the share price

Accumulate Accumuli

Aim-traded Accumuli (ACM:24p), a leading independent specialist in IT security and risk management, has reported an upbeat trading outlook alongside half-year results to end September 2014 which revealed a 40 per cent increase in underlying operating profit on revenues up a third.

With trading in the latter months of the period “particularly buoyant”, and given the second half traditionally outperforms the first half, then guidance is for pre-tax profits and EPS to rise by over a third to £3.4m and 1.7p in the 12 months to end March 2014. In fact, Accumuli has recently won a number of financial services sector contracts which are worth £900,000 in gross profit, the vast majority of which will be earned in the current financial year which underpins those forecasts.

Having recommended buying the shares around the current level in the spring ('Profit from cyber warfare', 23 April 2014), if anything the investment case is stronger now than it was then. That’s because the company's area of expertise is becoming increasingly critical for businesses combating the threat of cyber attacks compromising the confidentiality of information they hold and process. It’s worth flagging up that Accumuli’s Customer Intimacy programme is clearly working. The main focus here is on driving recurring revenues and increasing the amount of cross-selling of the company’s products. In the past year, recurring revenue have risen by 10 per cent and over a fifth of all customers now take more than one product from the company, up from 15 per cent a year ago.

Importantly, the valuation is attractive too: after stripping out 2.2p a share of net cash on the balance sheet, the prospective PE ratio is 13. That’s hardly punchy for a company generating double-digit earnings growth and whose shares are priced on a PEG ratio below 0.5. The dividend yield is not bad either for a software company: analyst Andrew Darley at brokerage finnCap predicts Accumuli will raise its payout by a third to 0.68p a share in the current fiscal year, implying a prospective dividend yield of 2.8 per cent.

So although the shares are marginally up on my last buy recommendation (‘Time to accumulate Accumuli’, 15 October 2014), I do feel that my 30p to 33p target price is not out of place. Trading on a bid-offer spread of 23p to 24p, I continue to rate Accumuli shares a buy.

[igoe104] 26/11/2014 11:49

Disappointing response especially for a company in a fast growing market, that a producing good results.

[rivaldo] 26/11/2014 11:43

Great stuff hastings, thanks. Good to hear that more acquisitions are on the cards, and worth noting that the top 5 holders own 53% of the company.

This is an interesting summary from Techinvest which I think can be summarised as noting a decent if mixed H1, with a strong H2 to come:

[gargleblaster] 25/11/2014 16:03

hastings - thanks for that - very useful info

[hastings] 25/11/2014 15:39

Also a few thoughts, squeezed for time as they were running a bit late after analyst meeting and calls.http://www.cambridge-news.co.uk/business/private-punter

[aishah] 25/11/2014 14:58

The U.S. Banking, Financial Services, Retail & Payment Cybersecurity Market - 2015-2020 research report says U.S. financial institutions cybersecurity market is the largest and fastest growing private sector cybersecurity market, exceeding $77 billion in cumulative 2015-2020 revenues. Based on our October 2014 survey of financial industry CEOs, CISOs and CIOs, we forecast a onetime 2015/2014 market hike of 23%. Also included with this report is a roster of 21,643 banking and financial services enterprises who are potential cybersecurity customers. 87% of the listed enterprises include corporate contact information. Provided in an Excel file, the roster is segmented into 10 U.S. financial industry sectors (e.g., Banks, Credit Card Issuers, Credit Unions, Insurance Companies, Pension Funds, Accounting Companies, Stock Brokerage Companies, Stock Exchanges, Mortgage Companies and Real Estate Investment Companies).
Read more at

Nasdaq:VDSI flying lately.

Strong statement from ACM here today. I'll be accumulating any dips. H2 will be a blow out imo.

[thepopeofchillitown] 25/11/2014 11:57

Still here my friend so not that weak! Tanking probably overdid it though.

[masurenguy] 25/11/2014 10:25

thepopeofchillitown - 1190: Now tanking. Need to be patient with these I see

A 2% fall on light volume is hardly "tanking" ! As is often the case with small caps, weak holders are shaken out on any profit reduction where they lack a proper grasp of the underlying business model.

[gargleblaster] 25/11/2014 09:45

Finn cap reiterates buy rating - price target 33p

[qs99] 25/11/2014 09:36

All looks pretty good IMO....