D4t4 Solutions Share Discussion Threads

[ali47fish] 30/12/2019 15:16

where's everyone here-inching up would interested in comments about potential for growth

[napoleon 14th] 11/12/2019 09:40

So who is buying now?
It's polling day tomorrow, so why rush it?

[norbert colon] 11/12/2019 08:50

Fascinating stuff and really worth a listen.https://www.d4t4solutions.com/data-capture/resources/webinars/whats-new-in-celebrus-v9-1/?CID=2019-event-promo&PLA=email-follow-up&CRE=celebrus-v9.1-webinar&TYPE=email&_cldee=ZGF2aWR3YXNoMjhAeWFob28uY28udWs%3d&recipientid=lead-16392f85ed6ce911a96a000d3a29f1fd-d75e9e066cfc4feb976d78e3099ee4ba&utm_source=ClickDimensions&utm_medium=email&utm_campaign=Celebrus%20v9.1%20launch%204th%20December%202019%20%20&esid=f1e8d4d8-7117-ea11-a811-000d3a239186

[nimbo1] 10/12/2019 15:53

I've just started buying some shares back here. Always wary of catching a 'falling knife' however sometimes decisions must be value driven.

[trident5] 10/12/2019 15:47

Wrong board.
Oops - apologies - you're posting it everywhere.

[norbert colon] 10/12/2019 14:52

hTTps://www.ii.co.uk/analysis-commentary/stockwatch-niche-tech-stock-inflection-point-ii509916

[tiger60] 10/12/2019 14:12

also see Edmund Jackson article on iii. Positive - Buy

[checkers2] 06/12/2019 18:48

Commentary from the Ennismore monthly Newsletter if anyone is interested:

D4t4 Solutions plc – UK software company (1.0% NAV)

D4t4 Solutions is a GBP 77m market capitalised, niche software company that helps customers generate value from their internal data
by providing software solutions for data collection, data management and data platforms and analytics. We think the business has
many aspects to like, including industry-leading technology, significant growth opportunity, healthy double digit operating margins
and high return on capital of more than 30% post-tax. We are convinced that Celebrus, D4t4’s key software product, is superior to
competitors in terms of real-time functionalities and data access, and we were impressed by a demo during our visit to the company’s
headquarters last year. D4t4 operates in one of the fastest growing niches of the software market, and structural growth drivers will
continue to support growth for many years to come. With only one local broker covering the shares, we think this exciting story is
clearly overlooked by investors.

In the year to March 2019, D4t4 generated 36% of its GBP 25m sales from own products (including Celebrus), 29% from third party products, 22% from support and maintenance and the rest from delivery services, with recurring revenues currently representing around a third of the total. These revenues are almost entirely generated via partners. We believe it is sensible for a small company like
D4t4 to use partners as its sales channel, and management has invested a great deal of time and effort to develop these strategic partnerships with leading data and analytics companies such as SAS, Teradata and Microsoft.
60% of revenues generated via one partner (SAS) represents a potential risk, we think this risk is significantly mitigated by the nature
of the relationship, which has been mutually beneficial for 13 years now. The relationships are true partnerships with D4t4 involved throughout the sales process of their products.

Celebrus, which D4t4 acquired in 2015, is a data capture software that allows customers to collect data from user interactions, which
can then be used for personalisation, advanced analytics and actual real-time decision making as opposed to batch real-time which can
involve delays of many hours. D4t4 differentiates Celebrus from similar software by reference to this speed and also its ability to
capture data from many sources. These features allow D4t4’s customers to obtain higher quality data which in turn has the potential to
generate more value, and the software is now used by world leading financial institutions and airlines, including HSBC, Citibank and
Qantas. In the last fiscal year the vast majority of revenues were generated outside of the UK, with the USA accounting for 69% of the
total, highlighting how D4t4’s product is well recognised in the world’s most sophisticated software markets. The high quality of the
Celebrus technology and the fact that it may be deeply integrated into the customers’ other software platforms result in a very low
customer churn, virtually zero in the last twelve months.
We are convinced D4t4 will enjoy growth opportunities, both from the acquisition of new customers and its existing customer base by
selling upgrades and upselling their products. Customers usually implement D4t4 solutions on one specific geography or business line
and may then decide to roll them out into other areas or activities. Market intelligence provider IDC estimates that nearly 30% of data
generated will be consumed in real time by 2025 versus less than 5% today, providing significant structural growth opportunities for
Celebrus. Finally, thanks to its recent version upgrade, additional opportunities will arise for Celebrus in the field of risk and fraud.
In the last fiscal year D4t4 reported a healthy 22% adjusted operating margin and achieved high return on invested capital thanks also
to the low net working capital requirements of the business. Over the past three years, D4t4 grew adjusted operating profits at an
annualised rate of more than 20%. For the year ending March 2021 we expect revenue growth of around 8%, an increase in operating
margins to around 25% and free cash generation of around GBP 6m, but these estimates could prove conservative, especially if the
investments in the USA, which have held back margins recently, start bearing fruit.

The company has a very strong balance sheet, with a GBP 11m net cash position at the end of September, which may be used for bolt-on acquisitions, and management is aligned with the CEO owning more than 4% of the share capital. We believe that the recent share price decline following the announcement that the
transition to Software As A Service could be happening faster than expected creates an opportunity for long-term investors, as although this would reduce short term profits , it would increase the visibility of earnings and, on a net present value basis, could be a positive impact. We believe a highly profitable, high return niche growing business like D4t4 deserves a multiple of 17x enterprise
value to operating profits after tax to March 2021, which points to an upside versus current share price of around 45% over the next 16 months.

[deanowls] 05/12/2019 11:00

We look forward to keeping you updated on contract wins as we progress through the second half of the year.
As a result of this the Board remains confident in delivering a solid finish to FY20, in line with market expectations.


Taken from the half year report which is why I expect updates as they happen.

[norbert colon] 05/12/2019 07:56

Unless material (ie impacting current forecasts) they don't need to RNS contract wins.Please note they do use RNS reach on some occasions:hTTps://www.investegate.co.uk/d4t4-solutions-plc--d4t4-/rns/new-contract-wins/201802220700085836F/hTTps://www.investegate.co.uk/d4t4-solutions-plc--d4t4-/rns/new-contract-wins-in-key-vertical-sectors/201712270700072502A/

[amt] 05/12/2019 07:07

They don't tend to publish contract news so probably be in the dark until next trading update. They have never failed to meet or beat expectations so there is going to be a great opportunity here to top up. Just hoping for further falls.

[tudes100] 05/12/2019 02:32

Hi Dav, I think the reason you don't get much of a response is frequent repetition of the same perspective. Fair to say you don't see a positive outcome here, others who perhaps have a longer timescale feel differently. Anyone looking at the monthly chart for D4T4 back 5 or 6 yrs would have every right to feel smug about their investment here.
If you are communicating new news then I suspect your thoughts & contributions would be more valued. Expecting other people to mirror or share your investing approach / philosophy and railing against them when they don't is difficult to understand.
Apologies but just how I see it.

[daz] 04/12/2019 23:14

I think the earnings estimates for the next year are totally meaningless, the brokers can't have any real idea because the company itself can't predict the erratic timing of orders, so to talk of a slowdown may be premature.

All you can say that for the lest few years, things are going in the right direction and take a view of where the data science industry is going in the next few years. I think it's still growing quite quickly and would expect D4T4 to grab a slice of that, although for reasons given in a previous post, I'm perhaps not as bullish as perhaps the company is, as to how big a slice they can take.

With the shares on a ex cash p/e of 10 and support on the chart going back a year or so, I think the shares look good value at current levels and have added.

[davr0s] 04/12/2019 19:34

Yeah ALGW is a dam good shorting opportunity

[jammydodger1] 04/12/2019 19:28

Tonight you people need to research ALGWBIG PLANS 100,000,000 million. Credit facility about to be approved and signed by a leading UK asset managerMcap of this company is only 5m nowWill be multiples And way past 20pDnt be left out in the cold

[davr0s] 04/12/2019 19:28

Yeah thumbs down as expected - no one interested. You just keep buying a falling share with decelerating earnings growth. At least my short is in profit

[napoleon 14th] 04/12/2019 16:02

I know this company from 3 years back.
I don't disagree with comments here.
I'm just watching the chart.

[trident5] 04/12/2019 15:27

That's a forward PE of 13? Assumes the 2H comes through.

[dave2608] 04/12/2019 15:09

Plus. At the time of typing this is trading on a p/e ratio of 12.754. Strip out the cash and the p/e falls to 10 something. Seems low to me.

[norbert colon] 04/12/2019 11:43

Mgt are confident about H2 and the full year. No trace of uncertainty whatsoever.

They have hit their numbers before with H1/H2 swings and I see no reason why they won’t do the same again as you state.

The fall away in valuation is simply because the market doesn’t like wild H1/H2 swings (understandable) and because there is a firm move to a SaaS model now which will bring some uncertainty in the short term but longer term we will have a much more valuable company.

Mr Market has decided that a company that is operationally doing excellently should be cheaper due to factors that do not relate at all to the underlying business.

Opportunity!

[deanowls] 04/12/2019 11:26

I believe they will update as these contracts are signed which will see the shares respond appropriately.

[alotto] 04/12/2019 11:17

Close to the pre or port results announcement?

[zeus19] 04/12/2019 10:02

Literally a copy of a few years back when they were heavily H2 weighted. This will fly back closer to the full year results