Mr Market still seems unhappy - but generally a major down day to all markets - Severe case of Trumpitis - A very infectious disease. |
Starting to look a good but again? |
 Latest SM post:
Microlise
12,384 followers
2h Edited
A job well done is always great to hear 🏅
After speaking with our Customer Success team, an opportunity surfaced to provide the Serco team with a Microlise Refresher 🍃
With so much functionality at their fingertips, new features and people new to the Microlise system, Customer Success Manager Steven Lloyd-West designed and delivered bespoke training that would help bring some added freshness, including...
🛄 Looking at what's already in their locker - and some practical options of how it could be utilised further
🧭 Exploring potential system improvements, particularly when it came to working with their end clients
🖥️ Helping with some hands-on functionality in terms administration, user roles and reporting
📝 Plus - providing some useful 'how to' guides to take away so a further re-cap was never far away
The success of the session was confirmed when Chris Bradley, Serco's Contracts Manager, said this:
"Thank you to Steven for providing us with a really intuitive session. Both ourselves and the client took away so much from the session. I have already started to look at how we can implement the system further to drive our analytic data in 2025.
"The session was really high quality and at a pace which suited our class setting perfectly. I really appreciate your commitment to the delivery and I cannot recommend the Mircolise training enough."
Chuffed to bits! Thank you to Christopher and the team at Serco and of course to Steven and the Customer Success team for their support. |
I can't work out what fair value is for this share... |
A small retrace after the RISE , next leg up has started £1.40 to £1.50. |
Microlise are on the Mello show tonight and will be featured on the BASH...
Join us for MelloMonday on tonight at 5.30pm.
The programme for the evening is as follows:
5:30pm Company Presentation from Time Finance plc
6pm Company Presentation from React Group plc
6:30pm Educational Presentation
6:45pm Company Presentation from Hercules Site Services plc
7:15pm BASH (Buy, Avoid, Sell, Hold) Panel featuring Mark Simpson (OMG) and Damian Cannon (SAAS)
For more information, click here:
There are lots of interesting sessions and all annual pass holders and individual ticket holders will be sent a recording of the show within 48 hours of registering. For half price tickets, use code MMSTOCKO50. |
Back to 150p plus hopefully. Prospects are as strong as ever. |
I don't know who this AdamB1978 poster is since he has never posted on this thread. However his claim that "they're not remotely a SaaS business" and that "management are trying to hoodwink people via its ticker," is nonsense. They do sell hardware but this constitutes circa 25% of their business. As they themselves clearly state "We offer a globally accessible Software as a Service (SaaS) platform that streamlines the business processes of organisations with logistics operations. Our software products are licensed on a per-user or per-asset basis, which includes SaaS service, ongoing support, and access to future upgrades." |
Re SAAS: discussion on another thread
-----------------------------------
Hi Multi
re 'SAAS' the company called Microlise Group, rather than the business model SaaS. Personally I think there's an element of Emperor's New Clothes (being polite) or spin about them given the ticker.
Looking at the revenue split, they're not remotely a SaaS business. H1 revenue split:
- hardware installation: £10.5m - this is not saas
- managed services: £23.4m - this is not saas
- professional services: £2m - this is not saas
- support/maint: £2.8m - this is not saas
So it might be a great business but a managed services/hardware business should trade on ~1x-1.5x revenues or perhaps 10x EBITDA, rather than achieve a SaaS valuation.
As a result, I avoided them given that I felt that if management are trying to hoodwink people via its ticker, and are actually spending time on thinking up gimmicks like that, then they couldnt be trusted.
Obviously your call, but sometimes helpful in this constructive environment for people to present the bear case!
Cheers
Adam
Hi AdamB1978,
I am not too hung up about the ticker symbol as I don't know how or why it came to be ? I don't think they are into gimmicks - they have no need to. To me it looks like the public listing is almost an afterthought.
What is of more interest to me that SAAS holds 58% of the UK large truck fleet (500+) market, 88% of UK grocery market trucking, eddie stobart, jcb, man, hovis etc and are beginning to make inroads into Australia, NZ and France. They are delivering every day, 24/7/365 a real, tangible essential service and have been around for yonks. The CE owns over 50% of the equity...so as a minor share holder (it is hard to buy in volume) I feel that my interests are aligned. The low float always makes for good action as today with a circa 27% gain. I often like boring businesses, they are often the best from an investment perspective ! |
Microlise Group (SAAS) Stock Forecast & Price Target
Advanced Equity Forecast
Overall Consensus: Strong Buy
2 Buy: 0 Hold: 0 Sell
Data based on a poll of the past 3 months
Analysts 12-Month Price Target:
Average 245.00p (+116.09% Upside) |
Broker Comment
"Microlise has released a y/e update, which provides several reassuring data points that highlight quality and resilience of the business. Recurring revenue, EBITDA and cash are all comfortably ahead while forward looking indicators also look good. ARR grew +9% organic to £56.6m and the pipeline is bigger than before the cyber security incident. Microlise has navigated this challenging period far better than feared and trading on 1x fwd. EV/Sales, 7.5x EBITDA or a 6% historic FCF yield, the shares offer exceptionally good value. A 2025 ‘best idea’." Singer Capital Markets |
Added at the open. Excellent update. Cyber indicent not material and good cash conversion. Adding more customers too. |
Excellent update !
FY2024 Trading Update
Strong International Growth, Robust Recurring Revenue, and Resilient Performance Despite Challenges in FY24
Microlise Group plc provides an update on trading for the year ending 31 December 2024 ("FY24"). The Group expects to publish its full year results in late March.
Highlights
· Recurring revenue growth of 21.4% to £54.7m, 10.8% organic growth1
· ARR growth of 18.8% to £56.6m, c.9.4% organic growth1
· Group revenue of £81.0m, growth of 12.9%, 5.9% organic growth1
· Adjusted EBITDA2 of £11.3m, representing margins of 14%
· Cash conversion above 89% and net cash of £11.4m
Trading Update
Microlise delivered a strong performance for the 12 months to 31 December 2024, with adjusted EBITDA2 and net cash comfortably ahead of market expectations, achieving significant progress towards our growth objectives of expanding our international presence, accelerated conversion of new direct customers in the UK and accretive M&A.
FY24 marked a year of international growth for the Company. New direct customers were secured in Australia, New Zealand and France further establishing the Company's expanding positions in those markets. This was supported by strong conversion, both of new direct customers and upsell of additional products into existing customers, in the UK. As a result, recurring revenue grew 21.4% to £54.7m (FY23: £45.0m), of which 10.8% was organic, and ARR increased by 18.8% (9.4% organic growth) to £56.6m (FY23: £47.7m). Non-recurring revenues decreased by 1.4% to £26.3m (FY23: £26.7m), primarily due to a slowdown in OEM sales in H2, which is expected to be back to normal levels in 2025. This was partly offset by higher direct customer sales, driven by new customer wins and the resolution of localised vehicle availability constraints in Australia.
Overall, revenue is expected to increase by 12.9% to £81.0m (FY23: £71.7m) with adjusted EBITDA2 ahead of market expectations at £11.3m (FY23: £9.4m), reflecting an increase in margin to 14% (FY23: 13.2%). The Group's net cash as of 31 December 2024 was £11.4m (31 December 2023: £16.8m) reflecting the acquisitions of Vita Software and K-Safe earlier in FY24. The Group's cash conversion rate remained healthy at 89%, broadly in line with FY23 (91%).
Customers
The Group added 375 new customers in FY24, including WooliesX in Australia, GSF in the UK, Foodstuffs South Island in New Zealand and STAF in France, further cementing its position in key international markets. Microlise also renewed key relationships, including a five-year extension with JCB, building further upon its 14-year relationship with Microlise. Customer retention remained strong, with very low churn of 0.7%, highlighting the value of its offerings and strong customer relationships.
Cyber Security Incident
On 31 October 2024, the Group announced that it had experienced a cyber security incident involving unauthorised activity detected on the Microlise network. The Group immediately took a number of actions to limit the impact of this incident enabling the Group to minimise disruption and fully restore its network and services within 2.5 weeks. Importantly, thanks to its historic investment in enhanced security measures surrounding customer data, the Group was able to ensure that no customer systems data was compromised during the incident.
Since the Group's network and services have been restored, the Group has continued to win 51 new customers from its pipeline and has not lost any existing customers following the incident. As such the Group expects to report Adjusted EBITDA of £11.3m, slightly ahead of market expectations. The Group continues to assess the exceptional costs associated with the incident and has made a claim for these costs in full, against its cyber security insurance. The Board would like to sincerely thank its customers for their understanding and patience during this period.
Acquisition
Microlise announced the acquisition of K-Safe on 9 January 2024, and the completion of the acquisition of Enterprise Software Systems (ESS) on 11 January 2024. Both acquisitions have served to strengthen Microlise's offering and provide a wider range of services to new and existing customers, with several new contracts having been won in 2025 as a consequence.
Outlook
Microlise has maintained its strong track record of year-on-year growth and expects to report FY24 adjusted EBITDA ahead of market expectations. The Board is positive about the Company's prospects for FY25. The business pipeline has continued to grow since the cyber incident, positioning the Company well, particularly in the international markets where it gained strong traction during FY24.
Nadeem Raza, CEO, Microlise said: "The business demonstrated growth across all geographies, and the addition of newly acquired products enabled us to provide more solutions to existing customers. We have signed several new TMS contracts, following the acquisition of ESS at the start of the year, which is particularly pleasing. The business responded well to the cyber incident in October, resulting in minimal impact to the forecast FY24. I would like to thank all our staff for their hard work and dedication in restoring services for our customers, and our customers for their patience and understanding during this period. The outturn for 2024 shows a strong business with a healthy pipeline and puts us in a great position to take advantage of opportunities in 2025." |
Where do we think this will go in 2025? Up? Down?? Sideways?? |
My interpretation...A buy signal. |
20 December 2024: Jonathan Lee, Non-Executive Chairman, purchased 19,417 ordinary shares of 0.1p in the Company at a price of £1.03 per Share. |
There is no "contradiction" in my investing style. I occasionally take some profits from a partial sale of a core long term hold in order to recover either part or all of my original investment. I don't necessarily announce it if I plan to keep my options open to either add some back, repurchase the full disposal amount or add even more shares in the future at a lower price. If I mention the sale at the time some people may assume that I no longer rate the stock and that I am gradually selling out.
I only concurrently announce share sales in a core asset if I partially sell with no intention to add back in the future (eg. BKS) or if I completely sell out (eg. EQLS) with no intention to reinvest again. With my non-core smaller holdings I very often never announce any partial or complete share disposals because they do not constitute any significant component within my portfolio. |
Hi masurenguy...you mention you sold 40% in August after the July trading update yet your posts on the day of that update...
"Excellent update with sales and EBITDA ahead by 15.4% and 13.4% respectively." and
"This is a long term hold for me so I'm quite happy with performance to date and forward prospects."
No mention of any sales from what I can see. Are you able to clarify this apparent contradiction? |
Microlise is currently nearly 30% below its IPO three and a half years ago, 43% below its high earlier this year and less than half of its ATH of 220p in September 2021. The valuation at the current price is much lower than the IPO or ATH. It is also not far off its ATL at 90p almost exactly a year ago when it then subsequently shot up by 89% over the following 3 months to 170p. There have been no share sales by the top 7 institutions listed in the header or by the CEO who holds just over 50%. This just illustrates that it is totally driven by sentiment and not conventional valuation metrics.
It is still a rich valuation but this is a niche company with quite a strong moat, which will inevitably be a target for a predator at some point in time. The PER of circa 70 does not bother me in this context - I'm also invested in BKS which has a PER of circa 85 on a similar niche basis with a moat. I will continue to add around this level.
Good luck to you too in 2025. |
Brave man - Market still seems unhappy - OK probably an operational "Must Have" but still (imo) hangover worries about cyber risk - Personally interested but - Stocko still ranks as a falling star and projected revenue growth and yield not too exciting.
So still watching-
Best of luck to you in 2025. |
I banked some profits by selling 40% of my holding at circa 135p, in August after the July trading update. The shareprice has fallen by 43% since its April high of 170p and subsequently by 25% following the cyber attack at the end of October.
After the positive September interims - sales up 15%, EBITDA up 16.8% and net cash at £8.9m - Nadeem Raza said "We are seeing improvements in our sales pipeline both in the UK and in target geographies where our brand is becoming increasingly recognised. With the appointment of a new Chief Revenue Officer, we hope to be able to accelerate the growth of our pipeline while improving its conversion into contracted business. The Company looks to the future with confidence and expects to meet market forecasts for the full year." There should be a year end trading update issued towards the end of next month.
Since the company stated some 6 weeks ago that it "does not anticipate any material adverse impact to its trading forecasts and financial position for FY24" following the cyber attack I've been gradually adding back in modest quantities as the shareprice has continued its downward slide. Made another small top up of 2500 @98p today and will continue to add if the shareprice continues to decline. |
Thanks damodamod. |
Also to add to my previous post. All my personal data from pre outage is on my personal app. |
I just jumped on this board out of interest as I'm a truck driver. *I've NOT read through the board. Data from my company went missing (camera footage that was needed for an internal investigation). It is my understanding that this footage has been recovered. I hope this helps everyone on this board |
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
Hot Features
Premium
