Pci-pal Share Discussion Threads

[longwell] 03/1/2020 09:05

Movement at last

[babbler] 03/1/2020 08:50

Lovely for those who took my tip in Feb last year...

[this_is_me] 19/12/2019 10:04

Yes, the technology is there so we need the sales to ramp up. The recurring nature of the contracts helps a great deal.

[zipstuck] 19/12/2019 09:40

Good boost for the ACR.

[jon123] 19/12/2019 08:37

another nice contract win lets hope there are a few more in the pipeline

[zipstuck] 19/12/2019 08:17

ARR now over 4.5m - hopefully gaining some traction now

[this_is_me] 19/12/2019 07:25

This contract win will be important if it becomes the breakthrough into the USA market.

[this_is_me] 21/11/2019 07:26

It looks like excellent progress in the technology front and good progress on the business front.

[this_is_me] 09/10/2019 07:54

It all looks good including prospects for future expansion. The loan looks expensive and we will need to see losses reducing over the next couple of years and then turning into profit.

[jon123] 08/10/2019 19:39

results out sometime this week

[petersinthemarket] 08/10/2019 14:01

The share price here has been going absolutely nowhere for more than 18mths now so I am completely out at last. No more patience for this BoD's flannel. I have suffered a substantial loss, but the lost opportunity cost continues to concern me more. I'll put the remains into something in which the management actually demonstrates a seriousness about building a worthwhile business.
Best of luck to all,
pete

[this_is_me] 23/7/2019 07:47

We are definitely gaining traction and becoming a go to provider of, what is benig increasingly seen as, an essential service.

[jon123] 12/6/2019 08:15

a good RNS today shows there trying to win business

[ntv] 25/5/2019 08:15

It won another award
The complete hash they made of paying a dividend then screwing share holders( in a pumped up placing cost them a lot in reputation ) led to a change at the top
This must now have come to the attention of others in the industry
cash burn still high but guessing new holders already know that!!
they know it is a bargin now

[bullsvbears] 24/5/2019 17:05

News item.

[approach3] 24/5/2019 16:59

Anyone know what caused the buying today ?

[sharesoc] 26/4/2019 10:50

We have a growth company seminar in London on the 8th May and PCI-PAL are presenting, may be of interest to shareholders and potential investors:

[this_is_me] 06/3/2019 22:03

It is interesting that Catchpole hasn't dumped his shares after being fired.

[euclid5] 05/3/2019 21:40

P Wildey 11.51
W A Catchpole 6.92
Octopus Investments 6.27
Unicorn AIM VCT PLC 4.70
Livingbridge VC LLP 4.70
D Hamilton 3.69

[euclid5] 05/3/2019 21:38

The group has signed new contracts worldwide with a Total Contract Value (TCV) of £3.4m – 53% more than the TCV achieved across the whole of FY 2018. Within that, North American contract wins were ahead of management expectations with a TCV of £1.0m from a standing start. More importantly, we focus on the growth in recurring Annual Contract Value (ACV) of these new contracts – £1.3m (2017: £0.2m) up 136% on the ACV of sales achieved FY 2018, an impressive performance.

Post this period-end, PCIP has already sealed a new worldwide reseller contract, integrating with one of the fastest growing CCaaS providers in North America. As management comments, PCIP has indeed reached an exciting point in its development. It has a platform to reach strategic and operational objectives scaling the business on ambitious growth plans. They are right to be genuinely excited with the right strategy and team in place to take advantage of significant market

opportunities.
The shares spiked sharply to highs touching 80p a little over a year ago before the £5m placing at 45p. The price has halved again since then on the back of a general market correction, a perception of slow progress in deploying the AWS platform and some management change

Yet as we see from these results, the business’ performance has been very positive over H1: receiving all the cash from the sale of the contact centres, launching the new worldleading cloud-based platform and signing both large and high-profile contracts on it. PCIP is now in a stronger position than ever before yet the shares still languish at a low level. We feel a re-rating is imminent. Having just launched the platform, PCIP is rather early-stage to measure against peer valuation metrics as provided below

While rivals trade on 2.2x Cal 2020 sales, PCIP is at an earlier stage with superior cloud based offering and growing faster with exciting prospects. We therefore target an EV/Sales multiple of 2.7x FY 2020 sales to justify our 50p target price for PCIP

[euclid5] 05/3/2019 21:28

Finncap Broker note dated 21 Feb 19 - keeps TP 50p
_ ______________________________________

Management is pleased with the sales progress in H1 and feel the company is on track for FY results. H1 has seen strong sales performance on the back of the launch of the AWS service. With early adopters going live on the AWS platform, Total Contract Value (TCV) signed, and the critical recurring Annual Contract Value (ACV) on contracts signed, have soared; both are significantly higher in this first half than achieved across the whole of last year on the old platform. This contracting success highlights the attraction of the new AWS offering to call centre operators and helps to underpin our growth expectations.

Results review: The AWS platform was launched last year and is now the core sales driver however this is still relatively early stage when compared to contracts now being signed. Under IFRS15, H1 revenue grew by 28% YoY to £1.2m but the recurring revenues increased by 23% to £1.0m. Gross margin increased from 41% to 51% with greater scale and the new platform, thereby delivering a £0.6m contribution, up 50% YoY. However, the overheads jumped 47% YoY in developing the North American business. This saw an adj. LBT of £2.0m (2017: £1.6m) ahead of £0.3 of exceptionals. Cash is key and FCF of -£2.3m was offset by £2.1m received in a final payment from the 2016 sale of the contact centres to leave £3.5m net cash.

Thoughts: This first half set the stage for growth as PCIP builds a platform to address global opportunities in the North American region in particular. The business changed fundamentally with the sale of the contact centres; the management has been restructured and the last proceeds from the sale have been received, closing that chapter. Now the new cloud based platform has launched and sales contracts are ramping rapidly through rapidly developing channel partnerships.
Forecasts: With the company’s adoption of IFRS 15, we switch to our previously disclosed IFRS 15 forecasts. These are lower as up-front fees are spread over the length of contract, increasing the loss. There is no cash impact.

Forecasts: With the company’s adoption of IFRS 15, we switch to our previously disclosed IFRS 15 forecasts. These are lower as up-front fees are spread over the length of contract, increasing the loss. There is no cash impact.

The UK’s PCI-compliant payment solutions market is comparatively advanced, but
Europe is less so and the huge but under-served US market offers a very exciting
opportunity – for PCIP in particular due to its light-touch cloud approach, which allows
relatively easy deployment globally.

Investment case
We identify numerous key investment points:
The AWS solution is cloud-based software and does not require hardware provision;
neither installation nor ongoing maintenance in far-flung regions;

This allows rapid deployment and rollout anywhere in the world opening up new underserved regions such as North America and Australasia as well as appealing to large
multinational customers;

The cloud-based software provision facilitates a channel approach. PCIP has already
integrated with several channel partners and is planning to deploy with more over the
coming year. Once integrated in one deployment, it becomes easier and swifter with
subsequent sales;

Hard experience from its own contact centre management - unique amongst suppliers -
has significantly assisted the development and support of the solution;
The new AWS platform brings higher margins;

PCIP is very secure and well-funded with a strong balance sheet and ongoing revenue
from a growing list of long-term contracts from large blue chip customers; it is well run by
an experienced and committed management team.

The key risk in this stock is the relatively early stage of and small scale of operations,
suggesting some time until profitability. On current forecasts, the company is funded
through to cash profit thanks to the fund-raising early last year and the receipt of
proceeds of sale of the call centres.

While there are clear drivers for PCI-DSS adoption is not yet mandatory and it is
acknowledged that full global compliance will take time, albeit assisted by laws such as
GDPR.

[this_is_me] 21/2/2019 15:20

I am a holder who recognises that there is a very good chance that the rapid increase in revenues and increase in operating margin will mean that the company will be profitable before the cash is all invested.

[this_is_me] 21/2/2019 07:27

Great progress which will need to continue to reach profitability before cash runs out. That seems very achievable given the obvious traction in sales.