Arcontech Share Discussion Threads

[davidcod] 05/4/2015 13:18

I'd welcome a share consolidation at 1p, but not down here. % movements are too great to ignore so would be nice to benefit from them before consolidating.

I'd also welcome more PR!!

[multibagger] 05/4/2015 07:15

Happy Easter everyone !

As Harebridge had suggested, I think it is only a matter of time before we have a 10 to 1 consolidation to achieve a more manageable 150m+ shares in issue, if ARC are considering a dividend payment (that all of us are looking forward to).

I would imagine that an initial dividend in the region of 0.1p per "consolidated" share would be possible and think that given the current cash position, hopefully more contract wins, that we may actually see a dividend in 2016 (if nothing untoward happens). Any thoughts ?

On another note, I too have emailed Sarah Wisbey congratulating the team and a plea that we have a more proactive communication strategy.

After a long time, I am excited that we may be actually turning a corner and that we won't be languishing at this share price for long.

Good luck all :)

[davidcod] 04/4/2015 22:29

Welcome multibagger. Hope the newsflow will be more regular!

[harebridge] 04/4/2015 07:30

Looks very promising here & there does seem to be a change of tact with the company regarding news flow.Keeping investors in the dark has got this company absolutely nowhere. The IR definitely needs improving, as does the need to consolidate the share price to make it more appealing.This 'major' contract win should get the ball rolling now.I have contacted the company regarding news flow, IR & consolidation & am awaiting a response.

[cbootle] 03/4/2015 19:28

Thanks multibagger - I've no idea what "Finncapp as the new NOMAD" means - does it have anything to do with this alert I got from Google alerts:

hxxp://www.wkrb13.com/markets/543376/arcontech-group-plcs-corporate-rating-reaffirmed-at-finncap-arc/

And what does it mean?

My hunch, and purely that, is that the previous CEO took the opportunity to divest.

[multibagger] 03/4/2015 18:41

Thanks for the updated header davidcod.

I hope that the announcement of a major client win (ie, announcement of a contract) is a departure from the established practice of leaving investors in a perennial news vacuum - which lends itself to easy price manipulation on low volumes.I wonder if Finncap as the new NOMAD has been instrumental in bringing about this change ?

My speculation is that this contract for 200 licences to start with is about £400k per year - I am hopeful it will more than make up for the loss of the other big client (if that becomes unavoidable).

When I was doing some digging, I got the impression that the contract with HM Treasury was in the region of £25k per year but no idea as to how many licences were involved. So this £400k figure is nothing more than a finger in the air.

I guess with the new year and pension changes, we may move to the region of 0.04 to 0.05p over the next quarter or so - maybe earlier if there is a slew of contract announcements on the back of this foray into a new market segment.We have been very patient and hopefully it is beginning to pay off.

The massive volumes of 239m yesterday makes me wonder where the shares came from - I hope some of the directors or funds have not been selling into the rise and that we will get a reduced holdings notice soon.

I intend to add as and when funds allow...on the basis that we

we are now profitable
we are debt free
hold over £1.291m, market cap is circa £3.3m
significant director holdings
Lion Trust / Anthony Cross holdings
recurrent revenues covering 112% of our costs,
recurrent contracts renewals, highly reputed, sticky customers
new market segment contract
the prospect of dividends on sustained profitability


....makes ARC very undervalued and appears to have the potential to go up 200-250% in share price over the next 6-12 from where we are now :)

[tom111] 02/4/2015 19:36

Seems very likely taff good spot

[taffy100] 02/4/2015 18:55

Post 190 from Harebridge - June 2014

Worth a look at Arcontech's website, explaining their real time data products.



Arcontech is a real-time software specialist helping you get your time-sensitive financial market data from source to destination fast, reliably, under control and in the format required.

Independent of any data vendor, Arcontech has delivered innovative, flexible, reliable and cost effective market data systems solutions for over 30 years.

Supported by agile development and global customer service teams, CityVision products are used by blue chip clients including government, central banking, investment banks and data vendors helping them to expand operations, streamline and reduce costs.

This new product that is being trialled at an unnamed European Bank, if successful, will be transformational for the company.

Post 379 Sept 2014 from myself

UK to widen law against benchmark rigging, aims for year-end




I´ve been wondering if todays RNS (New Client) relates to the issues identified in the above posts. If so, we can surely expect further contract wins and look forward to a truly transformational future for the company.

[tidy 2] 02/4/2015 13:48

OEX GET IN for Reserves update. Cambay now commercial and did stand at an impressive 248 billion cubic feet (bcf) what will it be this time

[tom111] 02/4/2015 13:36

on the move again afternoon session

[garykc] 02/4/2015 13:04

Been umming and amming over the last few weeks about buying in here. Looking very good moving forward as long as this licence win is the start of many. Have decided to add about 2.3m this afternoon to add to my SIPP. Only £5k's worth so worth the risk.

[mr_dross] 02/4/2015 12:15

bought a few back

[multibagger] 02/4/2015 12:05

ARC actually hold cash of about £1.291m as of 19 March 2015 and this was announced, but may have been overlooked by some.

I will be adding when funds allow :)

[lexus880] 02/4/2015 12:01

Thank you Cbootle, I've been in since about 2004, hope to see my patience rewarded.

[multibagger] 02/4/2015 11:57

Thanks Cbootle...lovely to see ARC moving up :) Fortune favours the bold and the very patient !!

[cbootle] 02/4/2015 11:25

I worked for the company, for ten years - hold it in high esteem, and bought shares at 1p at the time of the reverse takeover of KTS, then bought more as they got cheaper...

Excellent news today. For me, the greater aspect is that it's a NEW customer, not an existing one buying more seats.

Re license fees - they are negotiated on a client by client basis. It's impossible to guess, and I was not privy to any previous contracts. However, the lower end (1k per seat) sounds in the right ballpark IMO. But note this would be for a RALF (recurring annual licence fee) - forever. The company stated in its interim results recently:

"-- Annual run-rate of recurring revenues at 31 December 2014 amount to GBP2.1 million (2013: GBP1.9 million) and cover 112% of the cost base.
-- Net cash of GBP1,073,948 at 31 December 2014 (31 December 2013: GBP664,098)."

Excelerator saves money by allowing banks and financial institutions to monitor and calculate financial data (especially their own!) without the cost of traditional terminals. Arcontech supplies a huge range of associated software on the server side for supporting the financial data distribution, contribution and calculations, so the potential for upsell is huge.

Due diligence means it takes a long time for a financial institution to go with a supplier. Equally, dropping a supplier is rare too, a decision not taken lightly - though of course it happens. When they see the quality of the product, they are more likely to follow through with more seats and more infrastructure.

[tidy 2] 02/4/2015 10:49

0.4 for me come on.

[tidy 2] 02/4/2015 10:45

Big buys back

[dosser2] 02/4/2015 10:36

Looking for a good re entry price as well tidy

[sif12] 02/4/2015 09:24

But the big potential is that ince youve got one big bank as a credential its a lot easier to sell to others, plus you would have been through and be familiar with the due diligence requirements...

[sif12] 02/4/2015 09:22

Bought a few.. hard to say how mich these licences would cost.. but recently looking at software licence where each application was £8000.. this is an excel add on so can expect anywhere near as much.. but if a bank is spending months on due diligence then it has to be sizeable.. wouldnt be worth the man power otherwise.. so maybe a grand or possible 2 a year per licence?

[dosser2] 02/4/2015 09:15

Me too. Happy enough. For now.