Arcontech Share Discussion Threads

[zipstuck] 27/2/2019 07:52

ARR up to £2.78 plus the new business wins on excelarator products underpins FY with potential for new wins.

[spann_703] 27/2/2019 07:04

Interims out this morning.

[bones] 14/2/2019 08:47

Interim results were issued on 22 February last year so expect to see this year's perhaps next week?

[bones] 06/2/2019 12:02

Zipstuck, I agree as I think the RNS could be interpreted as a disguised “likely to exceed expectations” notification for 2019.

[zipstuck] 06/2/2019 11:19

Not one to be selling. We know the FY is underpinned and 5 months of the year still remaining.

[bones] 04/2/2019 14:32

D65, there was a 10p drop the other day on even less. It's the way of this very illiquid share...

[diplomat65] 04/2/2019 14:28

Seems to me this share price moves on news since today's volume of 62,000 wouldn't justify a 10p or 8% rise. So can we have some more positive news like today's please?

[bones] 04/2/2019 11:40

I am unsure which month the new multi-year agreement was signed in 2018 but this RNS says:

”Under a new multi-year agreement reached in 2018, the latest user count in January 2019 shows the Excelerator user base to have grown by just over 100% since the end of 2018.”

There is either a misuse of the phrase “end of 2018” or the increase has all happened in January 2019 in which case, the potential for a strong acceleration of take up in user numbers in 2019 is nailed on if 100% happened in January alone!

[melody9999] 04/2/2019 11:35

the user base has increased by 100%. my guess is that this is the level of contract billing anticipated - but that within the contract there is the possibility if flexing the user numbers down (or up) by a %. but ARC are reporting the revenue increase based on maintaining user numbers at current level.

[bones] 04/2/2019 10:31

Thanks for your thoughts, gsbmba99. As you say, the outlook is conservative but will surely increase markedly if one or more of the Tier 1 banks pipeline converts to contract.

[gsbmba99] 04/2/2019 10:09

Bones - my reading is that the doubling of the user count equates to £200k per annum in revenue if all the new users use the product for an entire year but this is not certain as the number of users can vary. The contribution to this year is about £100k since the increase in user count occurred half way through the year. I've always read board expectations and market expectations as the same. The market expectations are where the board chooses to set them. The finncap research report text from Aug '18 reads: "... we have upgraded our existing 2019 PBT forecast by 25% from £0.60m to £0.75m. We have introduced a 2020 forecast for the first time, which implies PBT of £0.82m ... So, £0.75m is £0.8m and £0.82m is also £0.8m because the forecasts are only displayed to 1 decimal point. As a result, PBT growth looks flat.

[janeann] 04/2/2019 09:39

well bamboo; it appears you got the direction of the move correct - Im not overly fussed if you are a day or so out!

[bones] 04/2/2019 09:35

How to interpret this?:

”Whilst the agreement has some flexibility to adjust Excelerator user numbers during the term of the contract, maintaining the current user base will result in an annualised increase in revenues of approximately £200,000 per annum, underpinning the Board's expected financial performance for the Company for the financial year ending 30 June 2019.”

Regarding user number comment, what does the adjustment of such numbers refer to? Are they saying if they increase over certain levels, the fees can be adjusted upward or is there some kind of ceiling above which ARC cannot benefit from extra fees?

Regarding the Board’s “expected financial performance”, do we know what it is? I think Finncap’s most recent numbers are pretty conservative so I would imagine the Board has more ambitious targets.

Overall, I’ll take this RNS as a positive given that they felt an obligation to publish it! The market likes it anyway.

[bamboo2] 04/2/2019 08:50

janeann, I had the potential turn pencilled in for 1/2/2019. I am losing my touch!

[janeann] 31/1/2019 17:38

Welcome aboard bamboo - I added a few a couple of days back at 125. Risky one to try and trade though a sit moves quite quickly on little volume

You'll be getting some ZTF as well no doubt soon>!!

[bamboo2] 31/1/2019 16:31

Bought a few this pm.

[petersinthemarket] 29/1/2019 19:10

Cheers mad. I hope you are right - I'm overweight here.

[madmix] 29/1/2019 17:15

Just an illiquid share IMHO, Peter.

I used the opportunity to add to my holding.

Interims were on 22nd February last year, so not long to wait for an update.

[petersinthemarket] 29/1/2019 14:14

This looks to be headed for 115 - what caused that?

[bones] 31/12/2018 13:16

I think the future is bright for this company.Happy New Year to all that are sailing in ARC, and everyone else!

[skara brae] 10/12/2018 09:07

Wakey, wakey everybody...significant re-rate in progress methinks. News imminent?

[diplomat65] 04/12/2018 21:12

Thank you! Very encouraging news GLA

[fredahad1] 04/12/2018 14:38

Diplomat, I think safe to infer today's share price rise is highly correlated to Leon Boros disclosing his stake. He is a highly respected private investor, achieving status of one of the first "ISA millionaires". Perhaps some are expecting similar success with ARC which Leon achieved with his call years ago on BVXP - Bioventix. You can see Leon interviewed here.
hxxps://www.piworld.co.uk/2017/11/08/leon-boros-on-achieving-exceptional-investment-returns-interviewed-by-tamzin-freeman/

[soft t] 04/12/2018 14:22

looks like sopheon