Attraqt Share Discussion Threads

[the prophet] 20/10/2015 11:53

nice success story here for Attraqt with Superdry:






Superdry Launches New European Sites

Superdry takes international market by storm with ATTRAQT

“ATTRAQT’s ability to maintain superior search and category performance on a totally multi-lingual basis has generated phenomenal, if not unprecedented success for us.”

(for rest of article, please follow link)

[webpax] 16/10/2015 17:03

Agreed TP re the reference client. Not sure whether they will RNS this or not so they may already have one.

[the prophet] 16/10/2015 16:30

thanks again webpax, good points re 'easy sell'.
My understanding re YUDU is that ATTQT are looking to get a reference client up and running which will then smooth the path to further sales to YUDU customers.

[webpax] 16/10/2015 16:29

Also just spotted this:

Beaufort Securities initiates coverage with a Speculative Buy.

[webpax] 16/10/2015 16:13

Indeed they won't capture them all but Brown described it as an easy sell and said that the integration was straightforward so they should be able to capture a reasonable percentage without huge expenditure. Plus of course they can then look to cross sell the whole FSM package to those clients of YUDU who are not already using it.

Investors Champion website also has some coverage, nothing I can really post here as you have to register to access but worth a look.

[the prophet] 16/10/2015 16:03

thanks webpax.
yes, I noted that with YUDU. I guess the maximum potential there is £4.4m if 100% convert, but can't ever see that happening. I have no idea what sort of number is possible, but even 10-15% conversion would be very meaningful in the context of forecasts for next year of £3.9m sales.

[webpax] 16/10/2015 15:56

Agreed TP. There is always potential for surprise on the upside. I note regarding the deal with YUDU, André Brown quoted the potential for selling to YUDU's 220 customers @ circa £20k per annum each. i.e. £4.4m potential revenue from that deal alone.

(Source:

[the prophet] 16/10/2015 15:34

cheers, webpax.

Interesting to see growthcompany's view at the end of the article in reference to the forecast of £3.9m revenues and eps of 2.2p in 2016:

' That puts the stock on a lofty p/e of 27 times with the shares at 60p. But if the growth rate continues and Attraqt starts to get traction in the US there could be a lot more to go for. Speculative but interesting.'

I always feel that it is a mistake to value companies on the first year of breaking through to profitability. The business model is scaleable, the market is global and they would appear to have good sales growth traction.
Techinvest view is that these sort of companies sell (ie get taken out) on a multiple of 5-10 times sales. With the low churn rate and high element of recurring income, imo x10 sales will be more appropriate. on next years revenues, that would value the company closer to £2.

We will see, it's all about ATQT continuing with the strong growth record they have and reaching a good level of profitability. At c £13m market cap, the valuation is hardly stretched.

[webpax] 16/10/2015 13:33

Another one:

[the prophet] 15/10/2015 15:05

article from a year ago, but still a good read to explain what ATQT do and the progress they have made




SMALL CAP SHARE IDEAS: Online merchandising firm ATTRAQT gains traction with some of Britain's biggest retailers

By Ian Lyall For Thisismoney

Published: 14:46, 27 October 2014 | Updated: 15:24, 27 October 2014

View comments

The next time you are out and about in your local shopping centre take time to pause in front of the main display window of the local John Lewis or House of Fraser.

It may help you understand the magic AIM newbie ATTRAQT Group is trying to help online retailers weave.

Stand back and take a more analytical look. At first glance you’ll see a clever, creative scene showcasing the latest autumn/winter collections.
Display window: ATTRAQT’s Freestyle Merchandising platform allows e-tailers to arrange clothing on their websites as if they were high street retailers
+2

Display window: ATTRAQT’s Freestyle Merchandising platform allows e-tailers to arrange clothing on their websites as if they were high street retailers

Only on closer inspection will you recognise the lengths the merchandising department has gone to peddle those clothing lines.

What you’ll see is a blend of new and top-selling items, accessories and some of the older, harder to shift stock all assembled together in order to maximise spend.


It is an art. And among shopkeepers there is a saying often trotted out by Top Shop’s Philip Green and his one-time adversary, Sir Stuart Rose, formerly of Marks & Spencer. It is that retail is detail.

The internet has done wonders transforming our buying habits – but it doesn’t always achieve the dynamism of the best bricks and mortar operations, where everything is arranged just so.

According to André Brown, chief executive and co-founder of ATTRAQT, the blame for that lack of inspiration online is often due to data constraints imposed by enterprise resource planning systems as well as the e-commerce system itself.

So the most exciting it gets with some e-tailers is being able to arrange clothing in order of price and gender.

ATTRAQT at a Glance
AIM ticker: ATQT
Value: £11.1million
Floated at: 50p
Current price: 53.5p


ATTRAQT’s Freestyle Merchandising platform brings that eye for detail to e-commerce sites by allowing the merchandisers to mix and match product lines in the most effective way that maximises sales.

So the buyer of a new raincoat might be prompted to also consider acquiring a new pair of boots and a bag to match.

‘You look at e-commerce sites and merchandising is based on getting things into categories and then sorting by price or some other numeric,’ said Brown.

‘It is not about creating a mix. But for merchandising to be effective it needs to be a mix in things.’

A recent debutant on AIM, raising £1.25million, ATTRAQT is fast gaining traction with some of Britain’s largest retailers. Among its 84-strong client roster are Tesco, Boohoo and Screwfix.

Freestyle Merchandising streamlines and optimises the display, search and recommendation functions.

‘Essentially it acts as an overlay for someone who has a commerce site but is struggling to merchandise effectively. And just about every site has issues around merchandising,’ said Brown.

There are five key reasons why retailers like Freestyle like the platform and buy into it.
Among ATTRAQT's 84-strong client roster are Tesco, Boohoo (pictured) and Screwfix
+2

Among ATTRAQT's 84-strong client roster are Tesco, Boohoo (pictured) and Screwfix

The first and most obvious is it offers an immediate uplift in sales; Brown cites one firm that saw a 20 per cent year-on-year boost, which is significant if you are turning over several million pounds a year via a website.

ATTRAQT also offers three technologies in one (search, display and control over what is recommended), so the customer doesn’t have to go to multiple suppliers, giving a saving in time and cost.

As mentioned earlier there is this ability to control the minutia of how products are merchandised, while the system is easy enough to use by non-technical staff to take the IT department out of the equation. And of course there are the knock-on productivity gains.

The company makes its money from charging an installation fee and then from a monthly subscription to its software as a service based on usage.

There is an in-built mechanism that means ATTRAQT’s income grows as the site’s popularity increases.

The company is targeting a number of opportunities to expand the business including offering a wider array of services and producing additional overseas sites for international retailers.

Here in the UK, it is targeting the top 2,000 biggest online retailers – so any company with internet sales of upwards of £750,000 a year.

‘Below that [figure] we probably can’t do enough to help online,’ said Brown.

However ATTRAQT is considering developing a pared down version of Freestyle Merchandising for the 180,000 smaller operators here in the UK.

The US is also a prime market where it has its eye on a prize of approximately 10,000 potential users of its software.

As the broker N+1 Singer points out, the company is already gaining some traction there. Of the 21 new clients won in the first half of the year, five were US-based, it noted.

‘This early traction is encouraging and highlights the significant market opportunity for the group,’ said analyst Tintin Stormont.

N+1 is expecting the company to break-even in the fourth quarter of next year, moving to a pre-tax profit of £500,000 in 2016 on sales of £3.9million.

‘We are working to a plan that gets us back to break-even without raising more cash,’ said Brown. ‘And at this stage it is all about delivering on that plan.’

[the prophet] 14/10/2015 11:52

perhaps Steve Frazer of Shares mag is doing another article on ATQT

this tweeted a few mins ago......


Steven Frazer
‏@SharesMagSteve

Had a fascinating chat w/ Attraqt #ATQT CEO Andre Brown y/day aft/noon, some very clever stuff under the bonnet

[the prophet] 09/10/2015 12:00

Been having a look at the past financial performance and the forecasts

braking down the year to first half(1) and second half (2) the sales performance over the last few years is as follows:

2013 1 £737K
2013 2 £844K

2014 1 £961K
2014 2 £1125K

2015 1 £1342K

The increases, half year on half year starting with 2013 are 14%, 14%, 17% and 19%.
ie the sales are increasing at an increasing rate, in line with signing contracts of larger value and the numbers they are signing. Interesting to note margins are also on an upward trend.

Forecasts for this year are for £2776K for the year as a whole, which represents a forecast 2nd half performance of 1434K, that looks, based on past performance, a pretty undemanding 7% increase on H1 figures.

The forecasts for 2016 are for £3.852m and a maiden profit of £0.5m. That is a 39% sales increase forecast for 2016 over the 2015 figures. Demanding forecasts, but on past performance ATQT look like they are capable of that.

The original Techinvest tip for ATQT notes that take-over activity in this sector is high and the typical t/out price is 5-10 times sales, quoting a fair few examples in this range.
Based on that, ATQT could have a value as high as £40m next year, equivalent to £2 although, to be fair, any t/over could only be by agreement with the directors as they own the majority of the stock.

Bottom line, a year on from floatation ATQT share price has progressed moderately from the 50p float price, but they have performed very impressively on the sales and other financial criteria, with a move into profit/break even expected this current period. At £13m market cap and with a growing global business they look very reasonably priced.
imo, dyor.

[the prophet] 08/10/2015 10:34

recent shares mag article on ATQT.

Worth noting that although Sharesmag reckon there is no need to rush in, a break into the black could give a substantial re-rating.
My understanding is that that move into profit is happening roundabout now, so given how tightly the shares are held, it may be tricky with +ve news on a move into profits to get hold of any/many shares around current levels.

as ever, imo, please dyor.


Fundamentals Attraqt’ion

STEVEN FRAZER

Sep 28, 2015

Retailers are increasingly looking at multi-channel opportunities and international expansion to win customers and retain loyalty, and specialist platform start-up Attraqt (ATQT:AIM) looks well-placed to benefit.

The company only joined AIM last year (19 August), raising £1.25 million from investors at 50p for a £10.3 million launch market valuation. The shares are currently trading at 17% premium to the float price at 58.5p

While the digital commerce space has been littered with flops during the past 18-months or so, including Mporium (MPM:AIM), the old MoPowered business, Attraqt is rapidly building a customer base, signing 24 new deals in the first six months of this year to 30 June, both in the UK and overseas. This has taken the total to more than 100.
Around 20% of those customers are pure online businesses, the bulk being bricks and clicks organisations looking to e-commerce to bolster their traditional store sales. This means Attraqt can leverage its Freestyle Merchandising platform from the ground up, becoming a trusted digital partner to many otherwise traditional businesses.

But what makes Attraqt arguably stand out from other e-commerce hopefuls is that management demand cash generation from the business and are not simply chasing top line growth. Chief executive officer (CEO) Andre Brown is ‘very determined on cash positive and break-even,’ explains Panmure Gordon technology analyst George O’Connor after meeting management.

This cuts the risk of future fund raisings simply to keep the business going despite having just £190,000 net cash on the balance sheet. ‘We believe the group is on target to reach EBITDA (earnings before interest, tax, depreciation and amortisation) and cash break-even on a recurring monthly basis during the second half as planned with no further requirements for cash,’ spell out analysts at house broker N+1 Singer


There seems no rush to dive in right now but ongoing signs of that vital break into the black could spark a substantial share price re-rating down the line.

BROKER CONSENSUS
Buy1

[b1ggles] 08/10/2015 08:15

Last time that happened, they said it was a mistake, so I should hurry
;-)

[the prophet] 07/10/2015 16:00

surprisingly the current October 2015 issue of Techinvest can be downloaded
here:



Don't know if this is a mistake or a generous offer, so be quick whilst stocks last, as it were.

The ATQT write up is on page 6.

[the prophet] 07/10/2015 11:31

this was the well respected TechMarketView on ATQT's recent interim results. Well worth taking note of the last paragraph, as I have not seen those comments or similair elsewhere.


ATTRAQT continues its eye-catching performance


Michael Larner, 09:46, 09 September 2015


ATTRAQT (the provider of visual merchandising, eCommerce site search and personalised recommendation technology) continued its momentum in H115 with revenues growing 40% yoy to £1.34m. The company’s gross margin increased to 85% (from 79% in H114) leading to the EBITDA loss improving from £310K to £180K.

The company singed 24 new deals in the first six months of this year (including All Beauty, Joules, StylistPick.com and Vix Swimwear) with the average value increasing by 31% yoy to £2,322 per month. North America is becoming an important market for the firm with the addition of six new clients in H1, bringing the total clients in the region to 15. At the end of June the total number of clients stood at 100 and by adding 22 client sites ATTRAQT now has 113 live sites.

Usage of the Freestyle Merchandising platform surged with a 57% increase in page impressions to 4.2bn and a doubling in the number of transactions. ATTRAQT is expanding its engagements at existing clients with follow-on project work, such as implementing responsive web design.

Going forward ATTRAQT is confident that the current success can be maintained thanks to low client revenue churn of 6% coupled with a strong pipeline in both the UK and North America. The fact that is becoming more entrenched among its clients and has been able to grow average contract values bodes well for the future.

ATTRAQT's vision is to become the visual merchandising platform of choice for multichannel retailers. The company acknowledges that the firm won’t be able to deliver the vision by themselves. The business plan includes developing strategic partnerships (both in the sales and technology fields) in order to accelerate client growth and expand their product offering. There’s unlikely to be a shortage of potential tie ups.

[the prophet] 06/10/2015 10:29

Hi cyberbub

The techinvest article gave a thorough review of the interim results in a very positive fashion -eg, 'continued sales momentum', 'revenue growth of 40%', 'US operations performed well' etc etc.

it's bottom line comment was:

'Attraqt continues to gain traction with leading retailers in the UK, Europe and North America, having signed some important new clients in the first half. Increased average deal size as well as growth in the volume of client renewals and service upgrades, is further evidence of excellent progress'.

They rate the shares a 'strong hold', although its worth pointing out they say that a 'hold' means that someone who bought in close to the tip price is advised that the shares are worth holding, even though they could still be a worthwhile buy'

[cyberbub] 05/10/2015 22:16

What did it say in a nutshell, Prophet?

[the prophet] 05/10/2015 11:29

Have bought a few of these the other week, like the recurring revenue and the strong growth.
Looks a good'un.
Decent write up in techinvest over w/end

[battlebus2] 30/9/2015 17:46

I hope so!!

[cyberbub] 30/9/2015 16:32

Wow nice close... Could we be heading for 100p in the not too distant future?

[cyberbub] 28/9/2015 15:44

More large delayed trades... seems we do still have a block seller, but he's being taken higher by buying pressure ?