Blue Prism Share Discussion Threads

[djbilywiz] 24/1/2017 14:20

Thanks all

[alter ego] 24/1/2017 14:18

It's a bit more complicated than that Croasdalefc. When a contract is signed, commission is paid as an "introduction fee". After that, revenue is only recognised for the expired portion of the contract, whether recurring or up front. Staff costs etc, are incurred regardless of the revenue generated.

Profits will accrue when sufficient sales revenue during the period exceeds,commissions paid and staff costs etc.

It seems likely to me that this may take some time, perhaps more than a couple of years, while sales volumes increase but it depends on how rapidly they can grow recognised revenue.

Despite that, I like the fact that 10% of revenue will be spent on R&D. It's important to keep a technical lead over emerging competition.

I'm less happy to see that they are owed approx 900K for unpaid invoices overdue more than 90 days. Perhaps it's just that some customers take liberties but it needs watching.

This company has enormous potential but let's not get ahead of ourselves with overexcited share price expectations.

[croasdalelfc] 24/1/2017 14:04

As far as I can ascertain all costs associated with a contract are invoiced at the start of the contract leaving the recurring revenues to pull in the eventual profit.Simplifying the numbers I make it there were 189 licence deals which would be expensed at the start but recurring revenues from just 40 contracts from FY15 plus prepayments and first year revenues of new license deals.So logic would suggest that only when recurring revenues overtake new contract expenses will we see a profit.

[alter ego] 24/1/2017 14:01

" The Blue Prism Group has tax losses of approximately £16,945k (31 October 2015: £2,653k) to carry forward against future profits. The tax value of such losses amounted to £3,756k (31 October 2015: £777k). The UK tax losses have no expiry date. US tax losses expire after 20 years if not utilised.



Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which temporary differences can be utilised. On the basis there is insufficient evidence that future taxable profits will be available to utilise the tax losses, the deferred tax asset (Note 14) has been released during the period, and no deferred tax asset has been recognised in respect of the trading losses carried forward."

[parvez] 24/1/2017 13:53

@hazl these articles validate the growth story here

@djbilywiz operating loss from previous years can be carried forward to future years to mitigate any tax IMHO

[djbilywiz] 24/1/2017 12:58

Other than the headline operating loss number, all looks good here for the long term IMO. With the number of employees doubling and the bringing forward of investment, its seems the business can't grow fast enough to meet the demand! Also, dose anybody know if the operating loss can be offset against future tax bills when profits are made?

[hazl] 24/1/2017 12:37

Again the losses were apparently for good reason.......demand was such that they had to bring forward work with the extra costs involved.
As article above seems to state.


IMO

[hazl] 24/1/2017 12:27

Will we end up blue?


.......

[hazl] 24/1/2017 11:43

Good luck with the rest of your shares Davros.

[davr0s] 24/1/2017 11:20

Pretty typical response from the market. Needs to make new highs to get me interested again - just in case it's put a double top in here. For the record I wouldn't remotely consider shorting it

[hazl] 24/1/2017 09:21

Amuses me how they bring out all the late trades when it suits them....both good and bad.

[hazl] 24/1/2017 09:16

Well I know I got in earlier than some so its a different scenario for me in some ways but if I thought the £ was a better investment I would take it!

Rather hold the shares at this point.
Also I am sure there are people watching with a beady eye that couldn't get in before!
IMO

[parvez] 24/1/2017 09:10

hazl, its all good stuff. I am not too worried about share price drop today. if it does drop further i will pick more up...

[hazl] 24/1/2017 08:41

'Smart businesses will evaluate now
but automate slowly as RPA matures '

[hazl] 24/1/2017 08:40

sorry meant for Parvez above

[hazl] 24/1/2017 08:36

That pdf very interesting thanks!


'Firms failing to prepare
now for the robotic revolution risk being left behind.'

[runthejoules] 24/1/2017 08:33

The one thing that concerned me was the reference to increasing competition. I don't have USA stockopedia, has anyone written any posts or read articles on them, such as Automation Everywhere (great Ronseal name) and other competitors?

[parvez] 24/1/2017 08:29

hazl, as i said i am hanging in there for the long term and agree too yes croasdale's projected figures very impressive :)

[hazl] 24/1/2017 08:28

hmm share-price recovering a bit?

[hazl] 24/1/2017 08:26

croasdale well done on your projected figures by the way

[hazl] 24/1/2017 08:19

Well be interesting to see how the share-price is by the end of the day.

The general market isn't quite so upbeat at the moment.

I am convinced this is a brilliant investment nonetheless.

[hazl] 24/1/2017 08:14

we seem to have a 6754 trader.......interesting....some kind of stake-building perhaps?

[parvez] 24/1/2017 08:12

They will drop share price to shake out. Further reading if anyone is interested...


I am hanging in there for the long term...

[runthejoules] 24/1/2017 08:10

Top sliced at 515p when it could have been 520p, but holding most for long-term.