Arcontech Share Discussion Threads

[red5] 22/8/2019 08:20

really stomping results

[gsbmba99] 22/8/2019 08:16

32 page (!) finnCap note out. 20E Rev £3.2m (from £2.9m), adj PBT £1.0m (from £0.8m), adj EPS 8.0p (from 7.1p). New 21E Rev £3.4m, adj PBT £1.1m, adj EPS 8.9p. Bringing new meaning to "comfortably in line"

[multibagger] 22/8/2019 07:56

Won't be surprised by a 10-15p increase in share price today. The strength of cash conversion is pretty incredible.

Progressive dividend and the jump in dividend is almost "alarming" by the very conservative ARC standards. Quiet confidence.

One of my favourite investments has moved up several notches higher :)

Good luck all and expect an positive and eventful day !

[gsbmba99] 22/8/2019 07:55

There's no mention of annualised recurring revenue but there was a large sequential uplift in 2H19 revenue to £1.596m (from £1.371m in 1H). If we annualise 2H, it's approaching £3.2m. Very large drop in current liabilities which would include deferred revenue. Last time it signaled a contract passed the renewal date but was under negotiation. Looking forward to reading finnCap note.

[boros10] 22/8/2019 07:30

Wow. Much better than expected. Significant growth from customer #4 (up to £361k from £96k) and one new client signed up for desktop/Excelerator. Management keen to point out the benefits to profits of the reversal of cost accruals and the adoption of IFRS15, but don't mention share based compensation charge (£53k) which most companies add back to adjusted profits. You've got to like that.

[isa2020] 22/8/2019 07:14

Excellent RNSs

[multibagger] 22/8/2019 07:04

Phenomenal results !!!!


Arcontech Group PLC

22 August 2019

ARCONTECH GROUP PLC

("Arcontech", the "Company" or the "Group")

Final Results for the year ended 30 June 2019

Arcontech (AIM: ARC), the provider of products and services for real-time financial market data processing and trading, is pleased to announce its final audited results for the year ended 30 June 2019.

Financial Highlights:

-- Revenue increased by 18% to GBP2,966,788 (2018: GBP2,519,699)
-- Profit before tax of GBP1,057,143 (2018: GBP575,632)
-- Revenue and profit before and after tax increased by GBP125,426 on adoption of IFRS 15
-- Cash balances up 27% GBP4,063,484 (2018: GBP3,210,058)
-- Fully diluted earnings per share of 8.35p (2018: 7.09p)
-- Final dividend of 2.0 pence per share (2018: 1.3 pence per share)
Operational Highlights:

-- Doubled number of paying desktop software solution users to 90
-- Sold 300 Excelerators taking total users to 1,410
-- Building a RESTful interface to provide access to more data sources
-- Added new pre-sales resource
-- Strong cash generation and recurring revenue
Commenting on the results, Richard Last, Chairman of Arcontech said:

"As a business we face a number of uncertainties: Brexit and changes taking place in the financial markets, as well as with our competitors. However, against this backdrop, our customer relationships remain strong. We are a global business and believe we offer excellent levels of support and operational flexibility as well as significant competitiveness, hence, we would expect to see continued growth, despite the macro climate. Our pipeline of prospects remains positive, albeit, as we have consistently noted, the outlook needs to be tempered by the traditionally long and complex sales cycles that are a feature of our business."

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

[cockerhoop] 11/7/2019 09:53

Cash is £0.5m ahead of FinnCap forecasts YE2019 of £3.5m (& already £0.2m ahead of the £3.8m forecast for YE2020)

[xajorkith] 11/7/2019 09:12

Stockopedia currently has FY 06/2020 eps as 7.1p, so forward PE around 20x adjusting for the 4m cash.

I imagine “comfortably in line” will translate to a small beat come 22/8/19, so maybe a similar size upgrade to FY 2020 to follow.

With no “ahead” statement, not surprised to see a modest pull-back, but strong LTBH for me given the high leverage & effect any contract win will have on the bottom line.

[gsbmba99] 11/7/2019 08:38

ARC is only covered by finnCap, the house broker, so market expectations are the finnCap forecast. As at 27 Feb, finnCap forecast for FY19 was Rev: £2.7m, Adj. PBT: £0.8m, and Adj. EPS: 6.5p. You can register to view finnCap research on their website. I haven't seen a new note today so I assume new expectations for FY20 will be set after FY19 results are announced.

[spann_703] 11/7/2019 08:26

Not disagreeing with any of that multibagger. My point was more that a statement saying that trading is "comfortably in line with market expectations" doesn't really provide much information unless market expectations are known.

On further musing it occurred to me that any statement which provides status as a comparison with market expectations thereby alters those very market expectations themselves. For example, "trading is worse than market expectations" presumably lowers market expectations, so would trading then be in line with those lowered expectations?

All very confusing. Probably best to ignore my fevered ramblings.

[multibagger] 11/7/2019 08:16

ARC is a very conservatively managed company with a solid and profitable business model. This is not an high adrenaline stock, though prone to spikes/drops on small volumes due to very limited liquidity.

I don't think that ARC is covered by independent research analysts, so difficult to know what the independent/consensus view on market expectations are.

I am a long term holder and I would read the RNS as we are growing about 8-10% yoy. I would expect dividend payable to increase conservatively.

Good luck :)

[spann_703] 11/7/2019 08:08

Comfortably in line with "market expectations". Anyone know exactly what "market expectations" are at this point?

[multibagger] 11/7/2019 08:04

Trading update with key word "comfortably in line" making an appearance with further consolidation of cash position to £4.05m.



RNS Number : 1521F

Arcontech Group PLC

11 July 2019

ARCONTECH GROUP PLC

("Arcontech", the "Company" or the "Group")

Trading Update / Notice of Results

Arcontech (AIM: ARC), the provider of products and services for real-time financial market data processing and trading, is pleased to announce that profit for the year ended 30 June 2019 is expected to be comfortably in line with market expectations. Unaudited net cash at 30 June 2019 amounted to GBP4.05m (At 30 June 2018, GBP3.2m).

Financial expectations noted above are preliminary, and subject to year-end financial close and audit review processes.

Notice of Results

The Company's results for the 12 months ended 30 June 2019 are expected to be announced on 22 August 2019 and the Directors look forward to updating shareholders with further details at that time.

Enquiries:

[gsbmba99] 08/7/2019 13:47

Missed this previously. Symphony recently raised new money. Article says user count doubled to 425k in the last two years. ARC is a Symphony partner (one of many).

[cooltools] 05/6/2019 15:28

Indeed! Some dates for your diary: last year we had a trading update on 10th July indicating "comfortably ahead of market expectations" based on preliminary results, and the results themselves (to end of financial year, 30th June) presented on 23rd August. The AGM was on 27th September.

Looking forward to the announcements over the summer, and seeing folks at the AGM again.

[bones] 05/6/2019 15:22

Market seems to be anticipating positive data in spades.

[multibagger] 05/6/2019 15:15

ARC surging on no news - but I am not complaining :)

[redartbmud] 15/5/2019 20:28

zip

The client list may be small, but the key then is stickability.
How much would it cost existing clients to switch to a rival, and how easy/hard would it be?
Conversely, is that hurdle making it difficult for new clients to switch?

[zipstuck] 15/5/2019 19:53

In order to make the step jump made ARC needs another good contract. probably not there this year.

Scotty always worried about the small number of clients.

Fully values at these levels imho

[cheeky13] 15/5/2019 10:38

Well I just took a £1000 out.

[multibagger] 15/5/2019 10:31

Not at all is the short answer in my view - Richard has been invested a long time and nothing wrong is locking in some profits and recouping investment.

He is still holding the remaining 90% or circa 1.5m shares !

[diplomat65] 15/5/2019 10:17

Do any other holders share my view that this morning's RNS advising the Chairman sold 10% of his holding as the share price hits an all-time high sends a negative message? Suggests he felt the share price due to fall back IMHO.

[nchanning] 13/5/2019 10:56

Simple investment case here- operating expense has remained constant for the last 5 years while turnover continues to rise slowly . This operational leverage is causing small increases in turnover to translate into dramatic rises in profit. If turnover growth were to accelerate would see a multibagger very quickly here .

[xajorkith] 10/5/2019 13:21

Good to see Mr Boros continuing to add.

Hope we see a similar sustained rise as happened with BVXP.

Great company, so every chance we will.