D4t4 Solutions Share Discussion Threads

[dave2608] 30/11/2017 13:49

I will put my last post a different way. The products are in continuous use and not lumpy but the project work is. And i will add that the foreseeable pipeline is one of GUARANTEED lumpiness as existing clients look to increase their footprint.


Also don't forget that firms need to be GDPR complaint by May 2018. this could be a big winner for D4t4

[dave2608] 30/11/2017 13:49

I will put my last post a different way. The products are in continuous use and not lumpy but the project work is. And i will add that the foreseeable pipeline is one of GUARANTEED lumpiness as existing clients look to increase their footprint.


Also don't forget that firms need to be GDPR complaint by May 2018. this could be a big winner for D4t4

[yump] 30/11/2017 13:31

I know analytics projects can be quite large and they're not always continuous, but they do need repeating (often annually), although most I've seen are relatively continuous. Think I may have found a source of info. anyway - indirect client.

[dave2608] 30/11/2017 13:22

"I need to look into the nature of the projects that makes them so lumpy, unless someone knows. Would have thought that the products, if liked, would be in relatively continuous use and therefore not very lumpy and certainly not with big gaps inbetween the finish of one and the start of another."

As I see it revenues are made up of 3 parts. Projects, software sales, and recurring revenue (managed private cloud environments). The projects will probably be always lumpy. Not sure as there's a way round it. The recurring revenues are increasing.

[yump] 30/11/2017 13:10

I need to look into the nature of the projects that makes them so lumpy, unless someone knows. Would have thought that the products, if liked, would be in relatively continuous use and therefore not very lumpy and certainly not with big gaps inbetween the finish of one and the start of another.

Perhaps the extensions are so large that they all need a breather gap inbetween.

[dave2608] 30/11/2017 12:50

Depends which way you look at it. It's not a warm handshake for investors who held for a year prior to these results. It is for those who climbed aboard Tuesday onwards. They must be licking their lips.

"I'm slightly puzzled by contracts in negotiation apparently being classed as project work." - Because that's exactly what most of them will be, "project work"

What makes it more compelling is that the firms quite obviously do like the products as they are looking (I quote again from the interims) "to INCREASE either the footprint of D4T4's software or extend the use of their managed private cloud environments" I mean they would hardly be likely to increase their footprint if having used the product it had proved to be rubbish would they? The fact of the matter is they've used it and it's giving them a significant competitive advantage, hence why a few of them don't want D4t4 revealing that they are clients. We're talking multi-nationals here too as well. Increasing footprint could be a roll out to a continent!

[yump] 30/11/2017 12:27

Yes, its not exactly a warm handshake for investors, whichever way you look at it.

I'm slightly puzzled by contracts in negotiation apparently being classed as project work. If they involve an increase in use (because they are liked), then I don't really get why there is actually going to be a big gap (say 9 months ?) between the end of the initial contract and the start of these delayed ones, if its the same clients. Unless the clients have very lumpy marketing initiatives, which of course is quite possible.

Perhaps their wording is just a bit off.

Do clients pay a big sum up front each time they start a new contract and then a smaller monthly amounts while the contract progresses ?

I can't say I'm that familiar with the model.

[dave2608] 30/11/2017 12:11

Yump. This is the way I see it. Project work is lumpy. Completion of projects feeds into an increase in recurring revenues.

However as they say in their interims.
"Many of the contracts currently in negotiation (>80% by value) are with existing clients, who wish to INCREASE either the footprint of our software or extend the use of our managed private cloud environments."

So once these contracts are sorted bigger lumps will come back into the soup which will lead to more recurring revenues. Repeat process.

As they also say in their interims
As experienced in some previous years a higher proportion of our business is expected to close and be delivered in H2 2017

If this happens then it's an increase in profits. Lots of investors I'd imagine saw the headline figures, didn't buy the timing issue and ran for the door thinking it was a profit warning when in hindsight it could be the complete opposite. What narks me and probably a few others is that we saw the potential here and invested at higher levels then see the johnny come latelies grab a bargain.

The directors buying would confirm the last paragraph and at the same time maybe even nark a few on here. You would think they'd know that the revenue would be significantly down in H1 (we wasn't privy to that info) and that the share price would take a clump. What a fantastic buying opportunity! I mean you'd have more respect if they'd have bought at close of business on the Monday. To some this would smack of opportunism using the info privy to them. Would they be cynical for having such a view?

I'm guessing by management speak that the contracts are pretty much sorted bar tying up a few loose ends. Assuming this to be true then it's a bit of a slam dunk for the investors who have climbed aboard Tuesday onwards.

Not saying I'm right, I could be wrong, but that's how I see the picture.

[rcturner2] 30/11/2017 10:48

yump, it is a requirement of their listing that they inform the market as soon as they know that they are more than 10% away from forecasts. It certainly does not look like that happened here.

[gerdmuller] 30/11/2017 10:03

This occurs due to the fact that the majority of income is made up by project work. In the first half this has fallen to £1.5m after it was £6.2 in H1 2016.

So I'm hoping that this is just a timing issue as they seem to say. The fact that directors are buying at these levels does at least give some credence to this and I suppose that this is a problem of being listed in that you have to think short term to keep the market happy. Hopefully the long term outlook will improve.

[yump] 30/11/2017 09:59

Trying to get my head around this:

At finals:
Project revenues: £9.47mln
Licence fee revenues: £3.71mln presumably pretty reliable year on year ?
Recurring revenues: £4.49mln

So that's a total of just over £8mln for what you could call repeat, reliable revenues ?

and this half total revenues were £4.75mln, which means there is either nothing from projects, or there has been a dip in what I thought were reliable revenue streams...

[yump] 30/11/2017 09:50

So you have a group of shareholders who have all invested in your business and who therefore are part owners.

But, you just do what you are obliged to do wrt guidance and no more - sticking to the letter of the rules.

That's not unusual, but there are plenty of businesses who do at least make some comment as soon as they see contract slippage, especially if that means that revenue is lumpy.

I'd also like to see some explanation of the lumpiness, because I thought the revenue flow was aiming to be more even. Perhaps I had not researched enough though.

[blockchain] 30/11/2017 08:47

finnCap disclosed D4T4 Solutions Plc (LON:D4T4), supporting its price target at 200.00GBX earlier today

[blockchain] 30/11/2017 08:46

nice to get these so cheap

[amt] 30/11/2017 08:40

gdjs100 really very surprised about that. I refer to the announcement part

[gdjs100] 30/11/2017 08:21

amt - they are still on track to meet FY expectations. They are under no obligation to guide as to H1 results.

[blockchain] 30/11/2017 08:20

NICE BIG DIR BUY

[eagle eye] 30/11/2017 08:12

MM playing a crafty/dishonest game here early doors.
Opening spread 122-129p but bid slipped to 120p, yet online quote was 123.6p.
MM trying not to appear keen, but they are!

[amt] 30/11/2017 07:51

It might help restore confidence but when a company suddenly produces a shock like this one its going to take a good set of numbers to recover the situation. There was an AGM in late July so why didnt they indicate there was a risk of shortfall then. Its very poor to drop a bombshell like that, they should have given an update in early October at the latest although not sure if that is necessary on AIM market. Its an absolute shocker.

[gerihatrick] 30/11/2017 07:48

3 directors and myself all feel that the market response was an over-reaction!

[renalrod] 30/11/2017 07:26

£246k seems significant to me

[ali47fish] 30/11/2017 07:22

macdowell dir buys 200 0000 shares -is this sgnificamnt to follow him

[dave2608] 28/11/2017 16:31

2nd Aug 16? Excuse me for being thick but how is that relevant?

[vatpaul] 28/11/2017 16:13

2 Aug '16 - 06:26 - 20 of 496 0 0
NED sells 500k shares, hopefully we see who the buyer is.

[dave2608] 28/11/2017 16:08

Another director buying in. Peter Simmonds has bought 50,000 shares.