Arcontech Share Discussion Threads

[janeann] 08/9/2017 13:40

So what has happened at 13.00 to start a sudden burst of selling?

[multibagger] 04/9/2017 08:05

Thanks for that gsbmba99 - much appreciated ! I too have accounts with HL and Halifax so knowing they reinvest the dividends is helpful.

[gsbmba99] 04/9/2017 07:45

MB, to answer your question on dividend reinvestment. I sometimes allow HL to reinvest dividends automatically in that account. They do this once a month (generally the 12th). I think what they do is they aggregate the dividends to be reinvested across all the shareholders and execute trades by type of account (taxable, SIPP, ISA etc). Not sure if they get the same price across the account types. I've never seen my "trade" print but have seen a trade at my price and time which is larger than my "trade", if that makes sense. Halifax, fwiw, usually execute automatic dividend reinvestment next business day after receipt. There's currently no dividend payment date. I was told it would be shortly after approval at the AGM.

[multibagger] 04/9/2017 06:27

Good morning all :)

Not surprising that the North Korea issue may hang heavily over the markets.

Notwithstanding that, automatic dividend reinvestment to buy shares (when the dividend is paid)could put a fair bit of buying pressure. Does anyone here know how the share brokers place orders for divi re-investment ? Do they try and get the best price by staggering when they buy, or do the buy orders just go into the market in one fell swoop ?

Recent Finncap target is 85p :)

[multibagger] 02/9/2017 08:00

Good morning all :)

Good strong close yesterday, clearly someone is keen to add in decent numbers. AC took another 25k shares or so (which was recently RNSed, so he could be back for seconds.)

Redarmy, the significance of a 70p close at the end of the day is lost on me and would be happy to learn as to why it is important.

We are making good solid progress.Good to know that cbootle is going to the AGM, anyone else planning on attending ?

[red army] 01/9/2017 19:18

Could be a double top but really needs to break above 70p at close of day.

[baticle] 01/9/2017 16:20

Well well...browsing through my stocks and seeing a bit of action here as it's usually pretty quiet, good to see the share price keeping an upward trend.

[red army] 01/9/2017 13:11

Need to break above 70p at any close

[multibagger] 01/9/2017 13:07

Buying in nice round figures - looks like someone keen to get in on the action or may be good old AC having another top up whilst eating a sandwich :)

News next week ?

[multibagger] 01/9/2017 13:02

And now a 70p trade - haven't seen that in a while !

[multibagger] 01/9/2017 13:01

It doesn't take much buying to cause a spike...rapid trades put through in someone's lunch break ?

[gleach23] 01/9/2017 12:29

Nice to see a couple more 15k trades this morning (in addition to the one on Weds), the second one at a premium to the market quote on the Offer.

Max to buy online currently just 1500 shares. Unsurprisingly meanwhile, the online Bid quote continues to strengthen, up to 64.5p for modest quantities.

[cbootle] 25/8/2017 10:11

RNS: The Company's Annual General Meeting will be held at the Company's offices at 1st Floor, 11-21 Paul Street, London EC2A 4JU on 26 September 2017 at 10.00 a.m.

[cbootle] 24/8/2017 15:22

Planning on being at the AGM

[multibagger] 24/8/2017 14:23

Yes, clearly he believes in ARC as many of us do !
Ex-divi from today....

[gsbmba99] 24/8/2017 14:22

I guess that takes Multibagger's notifiable club concentration up another 0.2%. AGM is about a month away, anyone planning to attend?

[cbootle] 24/8/2017 12:50

Anthony Cross, of Liontrust, has increased his personal holding to just over 14%, according to RN.

[multibagger] 15/8/2017 13:30

Another addition to the 3% equity club just spotted on the company website..

Clive & Sylvia Richards Settlement Trust – 460,000 (3.67%)

This 9 member notifiable holdings club (including the Finance Director) hold about 54.49% of the equity...

[multibagger] 14/8/2017 20:48

Finncap Broker Note: 14 Aug 2017

With Finncap disclaimer that it is not objective due to ARC being a corporate client.

The original is a pdf document that I am unable to post...technical issues and hence this is the meat of the report.

Ticking along nicely

Prelims to June are in line with expectations, with sales and adj. net income up 8% and 24% respectively. Cash conversion was also typically robust at 181% (FCF/adj. PAT), resulting in year-end net cash of £2.6m. We leave FY18 forecasts essentially unchanged – suggesting top-line growth of 9% and, in combination with continuing margin expansion, EPS +13%.

Maiden FY19 forecasts reflect a continuation of this theme and form the basis of our valuation methodology and as such, we increase our target to 85p – equivalent to an undemanding 8% FY19E FCF yield.

Financials – excluding a contract cancellation in FY16, underlying growth was stronger than prelims suggest at c.15%, with success being driven by Arcontech’s ‘server side’ products (MVCS, Symbol Mapper and Cashe). Costs, meanwhile, continued to be well managed, despite an expanded sales force and this meant a 70% ‘drop-through’ rate from sales to EBITDA, which in turn grew by 34%. EBITDA of £0.5m compares against operating cash flow of £0.9m – a result of the typical positive working capital movement Arcontech enjoys thanks to advanced receipt of licence fees. This left £2.6m of debt free net cash, which comfortably covers a maiden dividend of 1p/share.

Operational progress – the most significant achievement in FY17 was arguably the first commercial deployment of Arcontech's new desktop software solution by a global Tier 1 bank, which was previously trialling the software. Despite this initial order being relatively small, we believe this is nonetheless a significant milestone as this client provides up-sell opportunities and this contract provides validation of the software, which may in turn help Arcontech convert other 'trial phase' customers.

Separately, we believe that Arcontech’s new position as a Steering Committee member of OpenMAMA (a Fintech-focused open source project) has also been a beneficial source of new business links, which have subsequently resulted in new commercial relationships.

Valuation – trading at a 12% FY17 FCF yield, we believe Arcontech is undervalued given the the company's growing top line, scope for further operational gearing, strong cash conversion and revenue visibility, and the significant potential of Arcontech's new desktop software solution.

An 85p target equates to 3x FY19E EV/Sales and an 8% FCF yield.

[multibagger] 14/8/2017 14:12

Hi folks,

Just back from hols in Iceland and Sweden....good to see my stable of shares doing very well :)

Finally confirmation of the 1p dividend that has been anticipated for a while !

Good luck all :)

[taffy100] 14/8/2017 12:44

Broker Forecast - finnCap issues a broker note on Arcontech Group PLC

Monday, August 14, 2017 - 09:30
finnCap today reaffirms its corporate investment rating on Arcontech Group PLC (LON:ARC) and raised its price target to 85p (from 70p).

[gsbmba99] 14/8/2017 09:04

Results seem a bit mixed to me. I guess they hit the EPS forecast but only after excluding share-based payments. Cash very strong (though we don't yet know the deferred income offset). Two new customers appear in customer concentration with £357k and £309k. These two customers grew very strongly from below 10% of 2016 revenue to 15% and 13% of 2017 revenue respectively. Geographic disclosure suggests they lost £100k revenue in North America and £170k revenue in Asia Pacific (think this was the early termination). Not sure why these would decrease given they said they had not received "a single contract cancellation". "The Group intends to maintain cash balances at this level subject to any exceptional items or acquisition opportunities that may arise". Suggests potentially large future dividends in the absence of M&A opportunities or "exceptional items". Would love to see them find an acquisition that brings new customer relationships given how difficult it seems to be to acquire new customers. Curious to hear what FinnCap has to say.

[janeann] 14/8/2017 07:31

Very pleased with that; and a good solid 1p dividend to start. Like the fairly short ex dividend date too.

[baticle] 14/8/2017 07:15

Well Final Results are here and all is looking very good !
Modest growth but at a stable rate and most importantly 'Cash generative'. & New Contracts added.
As mentioned in an earlier post I suspected a maiden dividend of 1p would be on the cards as that would have been most appropriate leaving a good amount of headroom in cash for further growth if opportunities were to arise.
Well done Arcontech !