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[hedgehog 100] 14/5/2024 16:50

Fft,

If you look back to 2005, you will see that Treatt (TET) didn't actually issue a trading update at all between its interim results (23.5.05) and its full year results (12.12.05), so NWT is ahead of TET on that score.

And you can't expect enormous detail in a full year trading update issued just two weeks after the company's year end.

So you either wait until more detail is available, or you tell investors 'the basics' ASAP, rather than keeping them hanging on.

But NWT's final results are always wonderfully detailed, including a break down by business type and geography, and very extensive commentary.

[fft] 14/5/2024 16:39

Yes, I have done ok, but that is way more luck than judgement. At one point over exuberance meant I had about 1% of the company. But the results last year and this have led me to cut back. With the info I have - and I don't mean the PR stuff put out by the company - I don't really have a handle on where the business is. For example I was expecting higher grovesnor business. But we are told that they and safe tell both contributed to growth. So, imho, both didn't really take off. Not compared to the PR puff pieces put on this board at regular intervals But.... Someone, somewhere does believe, or has more info, because the price has been rising, and that doesn't happen without someone buying ! They must have modelled better prospects than dab, because 20% a year revenue growth doesn't really get me too excited when cash flow is fairly neutral (except the one off gain on selling inventory). Inventory in tech products tends to date quite quickly. Have they had to write some down ? When does operational gearing kick in ? We now have to wait for 3 months plus for the real data. Far larger companies do it in less.

[fft] 14/5/2024 16:24

Hedgehog, I suggest you go back to 2005 and have a look at the information contained in the treatt filings. Way more info than NWT. Oh, and a nice dividend, and 3m plus profits etc etc. something for a potential investor to get their teeth into. They even flag up one off profits, and concentrate on the underlying growth. It would be interesting to know how much the one off inventory sales improved cash flow and /or profits.

[hedgehog 100] 14/5/2024 16:00

fft 29 Oct '23 - 13:09 - 206 of 493 0 0 0
"Whilst proving estimates to brokers may be thought of providing rope to hang yourself, that is one of the main things about being a quoted company. ...
If not, then unfortunately, the company becomes almost uninvestable unless you like guessing. ..."



Well done on your locked-in NWT profit (of c. £5K.) Fft.

To have doubled your money on an 'almost uninvestable' share, in bad markets, isn't bad going!

[hedgehog 100] 14/5/2024 15:41

Note that Lord John Lee of Trafford, the UK's first ISA millionaire, is a big fan of 'family' businesses ... and flags up one in particular that has worked a Treatt:-






Treatt (TET):-

[dab2] 14/5/2024 14:31

Thanks pldazzle, I'll clarify. Call at 3.45 today.

[arthur_lame_stocks] 14/5/2024 14:29

I've just been reading the comments and looking back at the old accounts and my feeling is they're possibly busy fools and the company never really generates any real cash. Arguably very expensive at the current price. Still, daddy's little princes gets £300k a year.

[pldazzle] 14/5/2024 13:09

As I read it, *net* debt is down by £1m, meaning total cash swing is £1m (not £2m) and gross debt is unchanged from a year ago.

"Banking net debt at 30 April 2024 was £2.0 million (30 April 2023: £3.0 million)."

[dab2] 14/5/2024 12:36

I've sent the above to Marie-Claire. No doubt we'll have a call as I also speak for Benedikt and between us we hold around 7.5% of the business. If anyone else has anything useful to add please post it. I have 350,000 reasons why I want this to succeed so let's keep going...

[dab2] 14/5/2024 12:33

Hi Marie-Claire,

Congratulations to you and the team on today’s trading update.  It is fantastic and our approaching £10m valuation is deserved.

Here’s my highlights of todays announcement played back.  I’ve also been in touch with some other investors today, so there is some feedback from them as well.

Revenue >£22m. This is an important statement.

Revenue for 2H 2023 was £9.7m. So 2H 24 at £11.6m is 20% higher. The issue with a 2H comparison is that we cannot see when in Q3 UKG stopped so this is somewhat more impressive than it appears.  1H 24 revenues stood at £10.4m, so 2H 24 revenues are up 12%. It appears we have steady growth embedding at around 5% a quarter.  If we continue on this basis revenues for FY 25 will likely be in the region of £26.8m! As the £22m is a minimum revenue number, we have to wait for the results to see how much higher this projection will go!

Subscriptions to £2.9m (28% growth). This is a fantastic result. We need more information on the length of these subscriptions and forward projections but this is now 15% of revenues and growing.  This is guaranteed income (less a customer goes into administration, or cancels for which there will be penalties?).  Our investor presentations should be looking to forecast the growth of this model out at least 5 years, let’s show how it underpins our business.

The statement of winning three new customers earlier in the year, which contributed to a stronger H2, is a powerful one.  More growth to come from these, again how can we get this across to shareholders?  I’ve been chatting with Benedikt Bessmann (via X).  He is keen to know which three HCM partners we have, can we talk about them, do we have any giants like Paychex?

Financial position. Cash at £1.1m is up £1m in the 2H. Debt down by £1m. This is a £2m swing. Suggesting the balance sheet will be improving significantly each period. Some of this will be inventories running down but cash in the bank is good.

Profit - So no doubt there will be a significant profit. Inventory levels dropping have added to the cash flow but should also add to the profit as less new inventories have been purchased. Last year there were references to under deployed resources, what might be good about that is revenue growth falls straight to the bottom line. I’m predicting a profit in excess of £1.2m-£1.5m for the 2H. So £1.1m to £1.4m for the FY 24 (taking into account £0.1 loss in 1H 24.  But FY 25 is looking like £3m+ and thus a PE of 3 on a business growing at 20%+ a year.

Outlook, one of our investors sold 10,000 shares today.  Whilst not many it was on the back of the fact that we are acting like a private business and just not promoting our story enough.  We need to be more confident in our outlook and provide forecasts.  I’m with them, there is a big opportunity to further promote ourselves, consider what would we be doing if we were a US business?  Driving our social media reach to investors, reaching out to Investors Chronicle, Proactive Investor (I’ve seen Ian’s coverage but it is matter of fact), Motley Fool etc. etc.

A market valuation of £20m, 200p is in reach this year if we get this right.

Happy to chat as always.

Regards

David 

[fft] 14/5/2024 12:21

For.completeness, I will also post what I put on LSE. Dab808, thanks for the update.However, the reductions in inventory, and thus conversion to both cash and profits will probably be a one off, unless they still have excess inventory in which case it will be a 2 year one off (if you get me !). The underlying cash and profits increases will be a lot lower.Again, the TU gave no indication of 2025 activity and new sales/contracts going forward. Lots of nebulous puff comments. I have written to them before about this, but they seem intent on running it as a private business.

[dab2] 14/5/2024 12:08

Just popped over from LSE and I have posted what I posted on there. Totally get you want more detail. I'll work on that the next time I speak to Marie-Claire. For a trading update it could have been so much worse and sparce. I'll take what was delivered today as a significant improvement from the past. Well done on taking some profit fft100, highest price for a sale in 7 years. I'm keeping my shares though.

[dab2] 14/5/2024 12:03

Early thoughts on today's trading update.

Revenue >£22m. This is an important statement.

Revenue for 2H 2023 was £9.7m. So 2H 24 at £11.6m is 20% higher. The issue with a 2H comparison is that we cannot see when in Q3 UKG stopped so this is more impressive than it appears. 1H 24 revenues stood at £10.4m, so 2H 24 revenues are up 12%. It appears we have steady growth embedding at around 5% a quarter. If we continue on this basis revenues for FY 25 will likely be in the region of £26.8m. The £22m is a minimum of, so we have to wait for the results to see how much higher this projection will go.

Subscriptions to £2.9m (28% growth). This is a fantastic result. We need more information on the length of these subscriptions and forward projections but this is now 15% of revenues and growing.

Financial position. Cash at £1.1m is up £1m in the 2H. Debt down by £1m. This is a £2m swing. Suggesting the balance sheet will be improving significantly each period.

Profit - So no doubt there will be a significant profit. Inventory levels dropping have added to the cash flow but should also add to the profit as less new inventories have been purchased. Last year there were references to under deployed resources, I don't see that as an issue at present, what is good about that is revenue growth using this capacity falling straight to the bottom line. I predict a profit in excess of £1.2m-£1.5m for the 2H. So £1.1m to £1.4m for the FY 24 (taking into account £0.1 loss in 1H 24. But FY 25 is looking like £3m+ and thus a PE of 3 on a business growing at 20%+ a year.

STRONG BUY

[arthur_lame_stocks] 14/5/2024 08:29

Why bother commenting, it doesn't actually tell you much of any use.

[fft] 14/5/2024 07:58

How about some thoughts on the TU ?

[hedgehog 100] 13/5/2024 17:17

Hedgehog 100 21 Jan '24 - 10:48 - 318 of 479 Edit 0 0 0

" ... some more 'stock-&-roll' analysis from myself ...

Track listing, Side two:-

1. "Break On Through (To the Other Side)" (from "The Doors")
- NWT powering towards the 100p+ level. ..."




See, this 'stock-&-roll' analysis really works, LOL!

[hedgehog 100] 12/5/2024 15:21

Safetell success at Stonehenge,
With all the latest trends.
A project so legendary,
It lingers in memo-ry,
And wins so many friends.


"Stonehenge
Protecting Britain’s Heritage"

[hedgehog 100] 12/5/2024 10:27

"National Limerick Day
May 12, 2024

National Limerick Day, a whimsical celebration of wit and rhyme, tickles our funny bones annually on 12th May. Whether you’re a seasoned wordsmith or simply enjoy a good laugh, this day is dedicated to the playful art of crafting limericks and revelling in their delightful absurdity.

This special day commemorates the birthday of Edward Lear, the masterful poet known for popularizing the limerick form with his collection of “A Book of Nonsense.” With their distinctive rhythm and cheeky humour, limericks have charmed readers for centuries, offering a brief escape into the realm of nonsense and mirth.

To honour National Limerick Day, let’s unleash our creativity and conjure up some jovial content ideas for your social media and digital platforms. ..."




So it's National Limerick Day 2024 today.

So just for fun, here's a humble contribution from myself:-

He Safely Tells with G&T,
Of unicorn-like NWT.
He says it's HeSaaS,
That's why it's going so fast,
And it made stock exchange his-story.

[hedgehog 100] 09/5/2024 11:36

Recent Share Trades for Newmark Security (NWT)
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
09-May-24 10:28:55 95.00 2,000 Buy* 85.00 95.00 1,900 O

Name Symbol Market Type ISIN Description
Newmark Security Plc LSE:NWT London Stock Exchange Ordinary Share GB00BNYM9W73 ORD GBP0.05
Change % Chg Cur Bid Offer High Low Open Volume Chg Time RN NRN
2.50 2.78% 92.50 90.00 95.00 92.50 90.00 90.00 2,260 10:29:00


So NWT has gone blue again this morning ... and it's not the only one, LOL!

[hedgehog 100] 08/5/2024 12:27

New on Grosvenor Technology's website, another excellent article from Paul Smith, Head of Quality & Compliance:-

"Insights

Compliance as a Catalyst: How Regulations Shape Our HCM Solutions

In today’s rapidly evolving digital landscape, compliance with data protection laws has become ever more vital.

Paul Smith
Head of Quality & Compliance

In today’s rapidly evolving digital landscape, compliance with data protection laws has become ever more vital. But despite the swift and severe consequences of breaching those regulations, many organisations still fall foul. A recent report suggests that UK businesses faced over £42 million in GDPR fines in 2022. And while some of those incidents will be malicious, many are due to data mismanagement, poor processes and misunderstanding obligations.

So, we find ourselves examining the growing importance of robust data protection measures and how these regulations are driving innovation in our sector.

The Global Regulatory Landscape

Regulations around data privacy exist in all corners of the globe – from Europe’s General Data Protection Regulation (GDPR) to the stringent Biometric Information Privacy Act (BIPA) in Illinois to the newly tightened California Privacy Rights Act (CPRA). Navigating these regulations can present a tangled web of legislation and requirements, particularly as many have varying degrees of data protection, differing consent requirements, and even conflicting rules between jurisdictions. For those businesses operating across the globe, there are many challenges to maintaining compliance. That is unless they adapt and invest in technology that can ensure they remain compliant wherever they do business.

How Regulations Impact Technology

Compliance fundamentally shapes how technology is designed and developed. Understanding the needs of the outcome creates the environment for development. For example;

• GDPR’s ‘Privacy by Design’ puts data protection through technology design front and centre. This concept led to a swathe of encryption solutions and secure data storage strategies – it is now far more common to see data protection hard-baked into products and services.

• BIPA’s Influence on Biometrics: While data capture caused waves, biometric data collection created a tidal wave of questions and concerns. The challenges led to innovation—some of which are at the heart of our HCM solutions—in facial recognition and fingerprint technology.

• Flexibility with Function: Since many businesses investing in HCM solutions work across different regions, their tech needs to provide a way to manage differing regional compliance requirements. The ability to adjust data protection levels, consent procedures, and other aspects based on the location of its users is quickly becoming critical.

Strategies for Success

Companies can’t afford to take a passive stance when it comes to compliance.
Besides legal obligations, a duty of care to your employees needs to be a driving force behind your active approach to data security.

To ensure adherence to applicable compliance regulations, a business should consider:

Legal Expertise
Invest in guidance from specialists in data privacy laws to ensure you have all the right information. Compliance regulations are shifting sands, and professional support can keep you in the clear.

Invest in Technology
While duty of care will always remain with the data controller, technology like our HCM solutions, can provide a simple and secure way to manage your data while maintaining compliance with differing regulations.

Robust encryption, secure data handling, and auditable processes all present a compelling solution to the data compliance problem.

Compliance Super-Charges Change

There’s no doubt that compliance is a headache – a necessary but challenging obstacle to global business. But these obstacles present our industry with a catalyst for innovation – a space for us to demonstrate our expertise and excel where it matters. In delivering HCM solutions that address the data privacy issues of today, but with a keen eye on tomorrow.

At Grosvenor Technology, we understand the vital role compliance plays in the success of businesses worldwide. We designed our solutions to help simplify the complexities of data protection regulations.

To discover more about our HCM solutions, click here."