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Share Name Share Symbol Market Type Share ISIN Share Description
Arcontech Group Plc LSE:ARC London Ordinary Share GB00BDBBJZ03 ORD GBP0.125
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 73.50 0.00 01:00:00
Bid Price Offer Price High Price Low Price Open Price
72.00 75.00 73.50 73.50 73.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 2.99 1.04 7.88 9.3 10
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 73.50 GBX

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Date Time Title Posts
29/6/202208:27Arcontech Group plc1,913
25/7/201413:35ARC's China Picks4
06/6/201407:20ARC; CityVision C++ API825
19/7/201114:05ARCONTECH Group PLC334
15/3/200922:23ARCELOR: A Steel a la Francaise.208

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DateSubject
30/6/2022
09:20
Arcontech Daily Update: Arcontech Group Plc is listed in the Software & Computer Services sector of the London Stock Exchange with ticker ARC. The last closing price for Arcontech was 73.50p.
Arcontech Group Plc has a 4 week average price of 69.50p and a 12 week average price of 69.50p.
The 1 year high share price is 175p while the 1 year low share price is currently 69.50p.
There are currently 13,372,811 shares in issue and the average daily traded volume is 17,992 shares. The market capitalisation of Arcontech Group Plc is £9,829,016.09.
24/2/2022
11:27
zipstuck: rading Update Arcontech (AIM: ARC), the provider of products and services for real-time financial market data processing and trading, announces that its trading performance has regrettably fallen below current market expectations due to one customer reducing its market data spend with the Company, and notification from another customer that it will not be renewing its contract from the start of second half of 2022. The two changes are unrelated and do not involve customers with Arcontech's core MVCS server-side solution. They instead reflect one customer greatly scaling back its market data team and market data requirements, and a second choosing not to renew its contract for one Arcontech product because it is switching to use a solution included in a legacy, bundled contract. The Company is consequently revising its year end market guidance to reflect this net reduction of revenue. The reductions will take effect at the beginning of the second half of Arcontech's financial year and consequently will negatively impact revenue by annualised c.GBP300K, half of which will impact in the current financial year. However, notwithstanding the above the Company senses an overall improvement in the business outlook which until now has seen growth affected by Covid. Its clients are now renewing interest in new business projects and the Company's sales pipeline continues to be healthy. The increasing opportunities to travel and cement new relationships also bode well for the future and our ability to recover lost ground. During the last year Arcontech has improved its offerings to provide more value and the quality of its solutions together with its ability to help reduce spend, positions the Company well to absorb any lost business and resume growth as the pipeline matures. Arcontech continues to be fully confident in the strength of the business and is working to leverage its cash reserves, when the opportunity arises.
02/2/2022
07:50
multibagger: Good morning all :) From 30 Jan 2022...ARC is discussed about 1:57 min into the video Https://www.voxmarkets.co.uk/articles/traders-cafe-with-zak-mir-weekend-bulletin-board-heroes-january-30-f7a8559
09/12/2021
11:32
jamessmith23: I think you'd need to take off another 1.2m for the net liabilities as well, however yes the net cash does make it look attractive. Unfortunately at this size sentiment can tend to weigh on share price far longer than fundamentals and so it wouldn't surprise me to see it drift further. Losing large revenue clients is not a good sign and won't give investors faith in this being a long term hold. Need to see some growth through new clients to replace old before we'll get any sort of share price movement, expect it to just drift along with market until then, maybe slightly lower.
25/10/2021
19:20
jonut: SP fell below £1.20 again today, so added @ 1.22, (although not completely filled), about the same price as Mssrs. Jeffs and Lewis recently. A pity that Mr Wicks didn't buy as well. https://www.investegate.co.uk/arcontech-group-plc--arc-/rns/director-pdmr-shareholding/202110151732502957P/ Growth, as the chairman pointed out in his downbeat comments, has stalled due to maintaining the sales initiative made before Covid hit and the loss of a 10% Irish customer (Ulster Bank???). On the plus side, ARC continue profitably, increasing dividends whilst adding to the cash rich balance sheet. A hint toward M&A activity in the final results too.
13/10/2021
07:24
ih_670411: Court Appoints Receiver, Mwenya Andrew Mukupa to Manage Assets of Arc Mineral’s Subsidiaries in Zambia. It’s unfortunate the shareholders are never told the truth and there is a lot more coming. One would expect listed companies to respect the disclosure rules of the AIM but this is not the case with Arc Minerals.
07/9/2021
14:43
multibagger: It appears that ARC may have been tipped in a Simon Thompson piece in the Investor's Chronicle. Another of my holdings CYAN apparently finds a mention too....
29/7/2021
16:03
multibagger: Thanks jonut - I seem to recall that there was some frenzied buying resulting in the late Feb spike in ARC following the IC article. A fair few spikes over the years in ARC have been due to tipsters and then the share price drifts down and finds a base for sideways movement.
22/7/2021
11:44
jonut: I also expected the TU today. 15Jul last year, 11Jul the year before, so later than usual. Hope it's good news causing the delay. The share price has lifted 3p on 2 buys total £5000 this morning. ps. ARC has 4 years of RNS's on a single Investegate page.
23/8/2018
07:13
multibagger: Arcontech Group PLC Final Results 23/08/2018 7:00am UK Regulatory (RNS & others) Arcontech (LSE:ARC) Intraday Stock Chart Today : Thursday 23 August 2018 Click Here for more Arcontech Charts. TIDMARC RNS Number : 6173Y Arcontech Group PLC 23 August 2018 ARCONTECH GROUP PLC ("Arcontech", the "Company" or the "Group") Final Results for the year ended 30 June 2018 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 2018. Financial Highlights: -- Revenue of GBP2,519,699 (2017: GBP2,307,751) -- Adjusted profit before tax* of GBP626,856 (2017: GBP441,996) -- Profit before tax of GBP575,632 (2017: GBP373,263) -- Cash balance of GBP3,210,058 (2017: GBP2,636,471) -- Fully diluted earnings per share of 7.09p (2017: 3.68p) -- Final dividend of 1.3 pence per share (2017: 1.0 pence per share) *Adjusted for share-based payments Operational Highlights: -- Secured two clients for the new Desktop software solution, different uses and global deployment -- Proof of concept trials at six more Tier 1 banks -- Secured first client on the African continent -- Continued investment in sales & marketing -- Healthy injection of new contracts through expanding server-side infrastructure solutions and new Desktop software solution to existing customers -- Strong cash generation and recurring revenue Commenting on the results, Richard Last, Chairman of Arcontech said: "Arcontech is a well-run business where costs, including continued product investment, are well controlled such that increases in revenue materially improve profitability. Our focus is, therefore, on winning new business. Whilst we believe the opportunities for increased sales exist, the sales cycle is unpredictable and remains longer than we would like. Our prospects are positive, albeit they need to be tempered against uncertainties in the investment banking and finance sectors, as a result of the low interest rate environment and issues following Brexit." The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014. Enquiries: Arcontech Group plc 020 7256 2300 Richard Last, Chairman and Non-Executive Director Matthew Jeffs, Chief Executive finnCap Ltd (Nomad & Broker) 020 7220 0500 Carl Holmes/Simon Hicks To access more information on the Group please visit: www.arcontech.com Chairman's Statement Arcontech Group plc ("Arcontech" or the "Company") is pleased to report another year of good growth, with profit before taxation for the year ended 30 June 2018 of GBP575,632 (2017: GBP373,263), a year-on-year increase of 54% and ahead of expectations. Arcontech achieved a profit after tax of GBP915,084 (2017: GBP470,251) for the year, this included a deferred tax credit of GBP270,000 arising from recognising previous tax losses due to the improving profitability of the Group. Turnover for the year increased by 9% to GBP2,519,699 (2017: GBP2,307,751). This was achieved mainly through additional annual licence sales to existing customers. During the year we redeployed our Hong Kong based salesman to the UK to focus on our Desktop software solution which was launched in late 2017. Since the year-end we have taken on additional sales resource to drive new sales activity whilst continuing to provide excellent account management to existing customers. Fully diluted earnings per share for the year ended 30 June 2018 increased by 92% to 7.09 pence (2017: 3.68 pence). Although we have invested in additional sales resource we have maintained tight cost control throughout the year. Investment in product development and enhancement continued at similar levels to the previous year, which we expect to sustain going forward. We also expect to invest in additional marketing of our MVCS and desktop software solution in the coming year. Financing As at 30 June 2018 Arcontech had no debt and cash balances of GBP3,210,058 (2017: GBP2,636,471) after paying a maiden dividend, an increase of 21% reflecting increased profitability. The business continues to be well financed and has a robust balance sheet. Dividend I am pleased to announce that subsequent to the year-end we agreed to propose, subject to approval at the Annual General Meeting, to pay a dividend of 1.30 pence per share for the year ended 30 June 2018 (1.0 pence per share for the year ended 30 June 2017), an increase of 30%, to those shareholders on the register as at the close of business on 7 September 2018, with an ex-dividend date of 6 September 2018. Employees I would like to thank our employees and my colleagues on the Board for their hard work, continued support and dedication, which is greatly appreciated. Outlook Arcontech is a well-run Company where operational gearing is such that increased sales will have a material positive impact on our profitability. We have added additional sales resource to increase our focus on new business growth and while this will add to our cost base we believe it will generate positive results in the near future. Our pipeline of prospects remains positive, albeit they need to be tempered by the traditionally long and complex sales cycles that are an enduring facet of our business. Richard Last Chairman and Non-Executive Director Chief Executive's Review I am pleased to report that during the year we maintained our focus on expanding and delivering on the sales pipeline, whilst continuing to control costs, which resulted in a profit before tax of GBP575,632 (2017: GBP373,263), an increase of 54% compared to the previous year and a creditable performance by the Group. The year under review saw two global clients that were trialling our desktop software solution signed up as paying users. Pleasingly, they have both rolled out our solution internationally. We also have six other clients running trials and secured an additional client for our cache product in Africa, our first client on that continent. The majority of our business during the year was a result of expanding our existing client relationships. Significantly, we renewed a multi-year agreement with an existing global client who is moving from a traditional market data platform to an open-source solution. As an integral part of the overall solution we expect the relationship will grow as the new solution is rolled out globally across the business. Other installations and upgrades, such as Windows to Linux, continue without issue. We relocated our Hong Kong based salesperson to London, where we believe greater opportunities exist both within the UK and also by using it as a base from where we can target other regions. We have also recruited another salesperson to help accelerate sales growth further. Learning new products and building new relationships in our domain takes time and we expect to see an increasingly positive impact towards the latter part of the current year. Our participation in the FinTech community, where we both add and receive value, continues to be beneficial for all parties. We have retained our membership of the OpenMAMA steering committee and changed our membership of the Symphony Foundation to now become a development partner with Symphony LLC. As these organisations evolve we will benefit through exposure of our solutions and the ways in which we can meet market data needs to the broader financial community. The outlook for the business remains positive and unaffected by the wider uncertainties surrounding Brexit. The length of the sales cycle has been longer that we would like, however, we believe the expanded product offering and sales capability should improve the frequency of sales. Coupled with the excellent work of our development and support teams, we continue to build on our strengths whilst working with our clients to help meet their ever-changing needs. Our overriding focus remains on sales growth and continuing to build our pipeline. We are also exploring opportunities with other organisations that will complement our offerings, whilst continuing to look for strategic acquisition opportunities that will benefit the Group. We look forward to continued growth in the year ahead. Matthew Jeffs Chief Executive Strategic Report The Directors present the group strategic report for Arcontech Group plc and its subsidiaries for the year ended 30 June 2018. Principal activities The principal activities of the Company and its subsidiaries during the year were the development and sale of proprietary software and provision of computer consultancy services. Review of the business and prospects A full review of the operations, financial position and prospects of the Group is given in the Chairman's Statement and Chief Executive's Review on pages 2 to 3. Key performance indicators (KPIs) The Directors monitor the business using management reports and information, reviewed and discussed at monthly Board meetings. Financial and non-financial KPIs used in this report include: Financial KPIs: Revenue GBP2,519,699 (2017: GBP2,307,751; Measurement: 2016: GBP2,141,630) Revenue from sales made to all customers (excluding intra-group sales which eliminate on consolidation) Performance: Continued growth driven by increased sales of our product offering Adjusted profit GBP626,856 (2017: Measurement: GBP441,996; 2016: GBP329,260) Profit before share based payments and tax Performance: Continued growth reflects increase in revenues whilst continuing to maintain tight cost control ----------------------------------------- Cash GBP3,210,058 (2017: GBP2,636,471; Measurement: 2016: GBP1,633,159) Cash and cash equivalents held at the end of the year Performance: The Group intends to maintain cash balances at this level subject to any exceptional items or acquisition opportunities that may arise ----------------------------------------- Non-financial KPIs: Staff retention rate (net) 92% Measurement: (2017: 100%; 2016: 93%) Net movement in joiners and leavers as a percentage of the number of staff at the beginning of the year Performance: Staff morale from our dedicated employees remains strong, reflected in the small net decrease Principal risks and uncertainties The Group's performance is affected by a number of risks and uncertainties, which the Board monitor on an ongoing basis in order to identify, manage and minimise their possible impact. General risks and uncertainties include changes in economic conditions, interest rate fluctuations and the impact of competition. The Group's principal risk areas and the action taken to mitigate their outcome are shown below: Risk area Mitigation Competition Ongoing investment in research and development Responding to the changing needs of clients to remain competitive Loss of key personnel Employee share option scheme in place Approved on behalf of the board on 22 August 2018 by: Matthew Jeffs Michael Levy Chief Executive Group Finance Director Group Income Statement and Statement of Comprehensive Income For the year ended 30 June 2018 2018 2017 GBP GBP Revenue 2,519,699 2,307,751 Administrative costs (1,958,176) (1,942,430) Operating profit 561,523 365,321 Finance income 14,109 7,942 Profit before taxation 575,632 373,263 Taxation 339,452 96,988 Profit for the year after tax 915,084 470,251 --------------------------------------------- ------------ ------------ Total comprehensive income for the year 915,084 470,251 --------------------------------------------- ------------ ------------ Earnings per share (basic) 7.14p 3.79p --------------------------------------------- ------------ ------------ Earnings per share (diluted) 7.09p 3.68p --------------------------------------------- ------------ ------------ All of the results relate to continuing operations. Statement of Changes in Equity For the year ended 30 June 2018 Group: Share Share Retained Total capital premium Share option reserve earnings equity GBP GBP GBP GBP GBP Balance at 30 June 2016 1,541,732 2,024 119,692 568,831 2,232,279 Profit for the year - - - 470,251 470,251 Total comprehensive income for the year 1,541,732 2,024 119,692 1,039,082 2,702,530 Issue of shares 20,944 7,778 - - 28,722 Share-based payments - - 68,733 - 68,733 Balance at 30 June 2017 1,562,676 9,802 188,425 1,039,082 2,799,985 Dividend paid - - - (125,760) (125,760) Profit for the year - - - 915,084 915,084 Total comprehensive income for the year 1,562,676 9,802 188,425 1,828,406 3,589,309 Issue of shares 88,638 46,579 - - 135,217 Share-based payments - - 51,224 - 51,224 Realisation of share option reserve - - (183,283) 183,283 - Balance at 30 June 2018 1,651,314 56,381 56,366 2,011,689 3,775,750 -------------------------------------------- ---------- --------- --------------------- ---------- ---------- Balance Sheet Registered number: 04062416 As at 30 June 2018 Group Group 2018 2017 GBP GBP Non-current assets Goodwill 1,715,153 1,715,153 Property, plant and equipment 17,941 33,825 Deferred tax asset 270,000 - Trade and other receivables 141,750 141,750 Total non-current assets 2,144,844 1,890,728 ---------------------------------- ------------- ------------- Current assets Trade and other receivables 310,123 175,496 Cash and cash equivalents 3,210,058 2,636,471 ---------------------------------- ------------- ------------- Total current assets 3,520,181 2,811,967 ---------------------------------- ------------- ------------- Current liabilities Trade and other payables (1,889,275) (1,902,710) ---------------------------------- ------------- ------------- Total current liabilities (1,889,275) (1,902,710) ---------------------------------- ------------- ------------- Net current assets 1,630,906 909,257 ---------------------------------- ------------- ------------- Net assets 3,775,750 2,799,985 ---------------------------------- ------------- ------------- Equity Called up share capital 1,651,314 1,562,676 Share premium account 56,381 9,802 Share option reserve 56,366 188,425 Retained earnings 2,011,689 1,039,082 ---------------------------------- ------------- ------------- 3,775,750 2,799,985 ------------------------------- ------------- ------------- The profit dealt with in the financial statements of the Parent Company was GBP1,076,709 (2017: GBP1,418,859). Approved on behalf of the board on 22 August 2018 by: Matthew Jeffs Michael Levy Chief Executive Group Finance Director Group Cash Flow Statement For the year ended 30 June 2018 2018 2017 GBP GBP Net cash generated from operating activities 552,111 974,800 --------------------------------------------------------------- ---------- ---------- Investing activities Interest received 14,109 7,942 Purchases of plant and equipment (2,090) (8,152) Net cash generated from/(invested in) investing activities 12,019 (210) --------------------------------------------------------------- ---------- ---------- Financing activities Issue of shares 135,217 28,722 Dividend paid (125,760) - Net cash generated from financing activities 9,457 28,722 --------------------------------------------------------------- ---------- ---------- Net increase in cash and cash equivalents 573,587 1,003,312 Cash and cash equivalents at beginning of year 2,636,471 1,633,159 --------------------------------------------------------------- ---------- ---------- Cash and cash equivalents at end of year 3,210,058 2,636,471 --------------------------------------------------------------- ---------- ---------- Notes to the Financial Statements For the year ended 30 June 2018 Status of financial information Arcontech Group plc is a public limited company incorporated in England and Wales whose ordinary shares of GBP0.125 each are traded on the AIM Market of the London Stock Exchange. The Company's registered office is 1st Floor, 11-21 Paul Street, London, EC2A 4JU. The Board of Directors approved this preliminary announcement on 22 August 2018. Whilst the financial information included in this preliminary announcement has been prepared in accordance with International Financial Reporting Standards ("IFRS") as endorsed by the European Union, this announcement does not itself contain sufficient information to comply with all the disclosure requirements of IFRS and does not constitute statutory accounts of the Company for the years ended 30 June 2018 or 30 June 2017. The financial information set out in this announcement does not comprise the Group's statutory accounts for the years ended 30 June 2018 or 30 June 2017. The financial information has been extracted from the statutory accounts of the Company for the years ended 30 June 2018 or 30 June 2017. The auditors reported on those accounts; their reports were unqualified and did not contain a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006. The statutory accounts for the year ended 30 June 2017 have been delivered to the Registrar of Companies, whereas those for the year ended 30 June 2018 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. Operating segments: The Group reports internally to the Chief Operating Decision Maker (CODM), who is considered to be the Board. Intersegment license fees and management charges are not included in the reports reviewed by the CODM during the year but are calculated for statutory reporting purposes and therefore are excluded from the following revenue and operating profit disclosures. 2018 2017 GBP GBP Revenue by segment Software development and licence fees 2,519,699 2,307,751 -------------------------------------------------------------------- ---------- ---------- External segment revenue 2,519,699 2,307,751 -------------------------------------------------------------------- ---------- ---------- Operating profit by segment Software development and licence fees 1,126,932 854,981 Unallocated overheads (565,409) (489,660) -------------------------------------------------------------------- ---------- ---------- Total operating profit 561,523 365,321 Finance income 14,109 7,942 Total profit before tax as reported in the Group income statement 575,632 373,263 -------------------------------------------------------------------- ---------- ---------- 2018 2017 GBP GBP Segment total of assets Software development and licence fees 4,090,852 3,547,110 Unallocated assets 4,140,338 3,802,083 ---------------------------------------- ------------ ------------ 8,231,190 7,349,193 Less inter company debtors (2,566,166) (2,646,498) Total assets 5,665,024 4,702,695 ---------------------------------------- ------------ ------------ 2018 2017 GBP GBP Segment total liabilities Software development and licence fees 4,318,229 3,890,649 Unallocated liabilities 137,212 658,560 ---------------------------------------- ------------ ------------ 4,455,441 4,549,209 Less inter company creditors (2,566,166) (2,646,499) ---------------------------------------- ------------ ------------ Total liabilities 1,889,275 1,902,710 ---------------------------------------- ------------ ------------ 2018 2017 GBP GBP Additions of property, plant and equipment assets by segment Software development and licence fees 2,090 8,152 ----------------------------------------------------------------- ------ ------ Total additions 2,090 8,152 ----------------------------------------------------------------- ------ ------ Disposals of property, plant and equipment assets by segment Software development and licence fees - 2,699 ----------------------------------------------------------------- ------ ------ Total disposals - 2,699 ----------------------------------------------------------------- ------ ------ 2018 2017 GBP GBP Depreciation of property, plant and equipment assets recognised in the period by segment Software development and licence fees 17,974 19,112 Total depreciation 17,974 19,112 ------------------------------------------------------------------------------------------- ------- ------- Non-current assets by country 2018 2017 GBP GBP UK 2,144,844 1,890,728 Total non-current assets 2,144,844 1,890,728 -------------------------------- ---------- ---------- Geographical information - External revenue 2018 2017 GBP GBP UK 1,669,949 1,600,027 Europe (excluding UK) 796,468 652,894 Africa 22,562 - North America 28,488 27,830 Asia Pacific 2,232 27,000 2,519,699 2,307,751 --------------------------------------------- ---------- ---------- During the year there were 3 customers (2017: 3) who accounted for more than 10% of the Group's revenues as follows: 2018 2017 Value of % of Total Value of % of Total sales sales GBP GBP Customer 1 620,630 25% 612,998 27% Customer 2 477,258 19% 357,327 15% Customer 3 375,219 15% 309,232 13% ------------ ---------- ----------- ---------- ----------- 1,473,107 59% 1,279,557 55% ------------ ---------- ----------- ---------- ----------- These revenues are attributable to the software development and licence fees segment. Profit per share 2018 2017 GBP GBP Earnings Earnings for the purpose of basic and diluted earnings per share being net profit attributable to equity shareholders 915,084 470,251 915,084 470,251 ------------------------------------------------------------------------------------------- -------- -------- No. No. Number of shares Weighted average number of ordinary shares for the purpose of basic earnings per share 12,821,702 12,396,220 Number of dilutive shares under option 77,699 367,595 -------------------------------------------------------------------------------------- ----------- ----------- Weighted average number of ordinary shares for the purposes of dilutive earnings per share 12,899,401 12,763,815 -------------------------------------------------------------------------------------- ----------- ----------- The calculation of diluted earnings per share assumes conversion of all potentially dilutive ordinary shares, all of which arise from share options. A calculation is done to determine the number of shares that could have been acquired at fair value, based upon the monetary value of the subscription rights attached to outstanding share options. Dividends A final dividend of 1.3 pence will be proposed at the Annual General Meeting but has not been recognised as it requires approval (2017: 1.0 pence). Annual General Meeting 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. Annual report and accounts Copies of the annual report and accounts will be sent to shareholders shortly and will be available from the Company Secretary at the Company's registered office at 1st Floor, 11-21 Paul Street, London, EC2A 4JU or from the Company's website at www.arcontech.com This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. END
21/4/2018
20:28
multibagger: Courtesy of, and thanks to Xajorkith for kindly sharing....pasting the article in case the link gets corrupted. Sounds very upbeat ! We know ;) How Low Can You Go? March 20, 2018 | CJ Exposure Research Arcontech (LSE:ARC) are a microcap technology company, with an incredibly low market cap of c.£10m, however, our belief is that their prestigious client base is more representative of a large cap software services provider than a fledgling provider due to the premium nature of the consumers, which include JP Morgan, Citi and the Bank of England. They are the leading provider for the niche segment that they operation in, which is for real-time market data management solutions, where they specialise in market data distribution and trading systems based on their award winning CityVision product suite. Arcontech are helping the Tier 1 and Tier 2 names to stay at the head of the digitalisation trend, with real-time market analytics, which we believe is a trend set to gain momentum and visibility given the end-market demand for real-time data. Source: Arcontech We see a growing appetite for the application of Arcontech’s products and expect that we are in the very early stages of their growth story. Currently valued as a microcap company, we expect Arcontech’s shares to see significant upside as they are able to grow their own prestige; offering more services to their current customer pool, increasing revenues from these clients, expanding to further Tier 1 names, and gaining more Tier 2 clients as the rest of the marketplace catches up on the digitalisation trend with the end-market consumers increasingly demanding real-time data, as previously mentioned. The impartial nature of the business, being vendor independent, also adds a great appeal for Arcontech to be the provider of choice for regulatory bodies, as demonstrated during the client engagement article on their website relating to the application of CityVision MVCS to a Central Bank. The other worked examples of Arcontech’s solution include the integration and expansion of their API capabilities, combined with the Excelerator functionality for a Tier 1 trading desk query, with the end product spreading to all 20 of the client’s multi-asset trading desks. These examples display the intense level of cooperation and innovation that Arcontech holds core to its capabilities and offering, and is crucial to our belief that Arcontech will be able to expand their niche and advanced services to a larger client pool to continue to add significant value to their proposition and share price. Arcontech are able to collaborate with, and resolve the queries of, the highly demanding top tier financial institutions and given their level of ingenuity and product applicability, we believe that Arcontech will be able to continue to expand and adapt their product suite to a large range of clients who are all more than willing to engage with Arcontech in order to simplify their data needs in a world that is pushing towards more cost-efficient business. Arcontech initially gauged our attention while screening small cap tech companies for large cash piles relative to market cap, strong returns and growing revenues that aren’t priced into the shares. Arcontech fit these criteria to a tee, with net cash currently making up c.30% of its market cap and a PEG ratio of 0.67 implying that future revenue growth is only 67% priced in. Arcontech turned profitable in 2014 and have since built on their bottom-line year on year, with the expectations that this trend will continue. We see Arcontech as a huge long-term opportunity due to the innovative and compatible nature of the business; we believe that the share price will begin to reflect this as they continue to build on their impressive client base, profitability and investor exposure. Disclaimer: This article is entirely my own opinion and I am not receiving compensation for it. I am not a financial adviser and as all investments can fall in value, you may get back less than you invest and I am not responsible for these losses.
Arcontech share price data is direct from the London Stock Exchange
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