Arcontech Share Discussion Threads

[bones] 16/9/2018 21:51

Spann, looks mostly like the £270k credit on deferred tax (an accounts adjustment recognising past losses brought forward) and the £135k increase in debtors at the balance sheet date meaning they had a larger amount of cash to collect from customers than the year before. Other differences are small being other movements between the two balance sheets.If you ignore the tax credit you get a good picture of performance.

[spann_703] 16/9/2018 17:51

Is there anything significant behind the reduction in cash flow here?

From the latest report, I see net cash generated is down to £552k from £974k.

This results in a correspondingly smaller increase in cash on the balance sheet.

Thanks,
Spann

[multibagger] 11/9/2018 11:43

Looking perky again :)

[hpcg] 10/9/2018 09:51

Possible to own both BKS and ARC shares of course ;-)

[apad] 10/9/2018 08:27

Thanks cbootle. Your current analysis seems to be spot on. However, looking further ahead I suspect that Platform as a Service and Infrastructure as a Service offerings might be the way out of legacy software issues for a decent chunk of the industry - probably not the ones that lay down shorter cables to increase speed!

Beeks looks to be a genuine business to me - I note that IG offers its VPS free to those who maintain a balance of more than £5000.
Unfortunately Paul Scott has rated it and so there are a current band of fans.
I've asked my IT wealth manager pal to give an opinion.

apad😎

[cbootle] 09/9/2018 22:00

Not exactly - ARC puts their infrastructure inside top-tier investment banks' own data centres, and adds software to their trading systems.

BKS on the other hand, is cloud based, providing to a certain extent a replacement or equivalent to the big banks' systems, allowing (relatively) smaller financial companies to trade. BKS brings in datafeeds (and has to pay for them) whereas ARC uses the banks' feeds - whichever the banks have paid for.

I might be wrong, but I believe top-tier investment banks won't touch 3rd party "cloud".

BKS share price has been rising sharply, any thoughts on the fundamentals? If I read it rightly, one director (only!) owns about 60%, worth £34m.

[apad] 09/9/2018 14:26

Is this likely to evolve into something that will compete with ARC?



apad

[baile50] 06/9/2018 10:09

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[ramridge] 25/8/2018 15:36

Boros10 - Good of you to give us the added dimension of the quality of the management. At this stage of the company's development, how well the management and in particular the CEO steer the ship is as vital as any hard metric.
One point not mentioned so far is the cashflow. By my calculation the percentage of Free Cash Flow (FCF) to sales is 21%. That is also mighty impressive.

[janeann] 24/8/2018 21:34

multi - you are right - we have doubled since start of the year...... I bought a few more on 29 March for 64p;

impressive and good to see serious investors joining the fray.

[bones] 24/8/2018 20:48

Cbootle, AGM info is in the final results RNS:"The Annual General Meeting of Arcontech Group PLC will be held at the Company's offices, 1st Floor, 11-21 Paul Street, London EC2A 4JU on 27 September 2018 at 10.00 a.m."

[multibagger] 24/8/2018 16:40

Welcome Leon !

I post under this name - we have chatted about ARC and the contact in Chicago re BXVP.

Good to hear your views and I do hope you'll be pushing ahead to a formal disclosure threshold in ARC :)

Solid performance today....

Edit: Are you coming to the AGM ?

[boros10] 24/8/2018 16:19

WilmdavDavid, thank you for posting your excellent graphs. A picture speaks a thousand words so by that count you must be up to around 20k!I started buying after the interims and meeting Matthew (in the 60-75 pence range). I doubled up my position after the trading update (buying from the mid 90s onwards) and added another 30% to my position yesterday.Matthew immediately struck me with his intelligence, good sense and measured ambition. I was particularly impressed at the turnaround he had engineered since joining the business. I sensed from our meeting that the business was at a potential inflection point which could lead to a step up in the rate of sales growth. Although growth was modest in FY 2018, a higher level of sales growth looks a distinct possibility given the strong pipeline announced yesterday (6 tier 1 trials).I was particularly drawn to the operational gearing within the business which was borne out by yesterday's results which saw a relatively modest 9% increase in sales convert into a 54% increase in operating profits. Clearly risks exist, not least its reliance on one customer for 25% of its sales and two other large ones. Operational gearing in reverse is as ugly as positive operational gearing is beautiful. It's early days for me in this stock and I am still learning but so far so good.

[multibagger] 24/8/2018 15:58

Many thanks David :)

+15.5p mid today on just 81k volume ? - amazing but scary. Liquidity can be a double edged sword, but I am relaxed as I am in for the long haul :)

I think we have more than doubled since the start of 2018.

[wilmdav] 24/8/2018 14:54

Hi multibagger. You can see all my current holdings in the dropdown menu of the site's home page. A few of them are primarily income stocks.



The only one I don't currently hold is JDG, which I regret selling.

[multibagger] 24/8/2018 13:19

Many thanks Wilmdav for your time & effort in sharing :)

If I recall correctly you had tipped this sometime ago ?
Anything else you are looking at ?

[wilmdav] 24/8/2018 12:54

Results in graphic form below. Click on the sheet tabs at bottom of screen to see bar charts.

I have used Finncap's forecasts as quoted by gsbmba99 in post 1551. 2020 PBT at £0.8m looks questionable to me (same as 2019).

[bones] 24/8/2018 12:37

hpcg, my ONLY gripe was that GN did little more than look at the press release as it was clearly his last port of call for the day. I am totally relaxed about his decision! His loss as it happens. I enjoy the SCVR like many but to say they concentrate on only value propositions is totally inaccurate these days. PS in particular is mostly into internet retailers with potential explosive top line growth. GN seems to be mainly into fund management companies!

If PS himself took a look at ARC, I think he might see value to be honest. Or would have done at the interims stage before the share price took off.

I'm happy to close this debate on here anyway. :)

[multibagger] 24/8/2018 12:20

Good to hear that the deep pockets of Leon are being put to good use in ARC :)

[panic investor] 24/8/2018 10:45

Blimey I share two stocks with him now - not on the same scale though :-)

[gleach23] 24/8/2018 10:09

Leon Boros tweeting earlier says he was busy adding to ARC yesterday and that he now holds 2.5%.

[cbootle] 24/8/2018 09:07

I'll be at the AGM - would be great to catch up with others here if they can make it. Didn't spot 27th Sept, where did you see it?