Pci-pal Share Discussion Threads

[simon gordon] 26/9/2023 17:01

Volume still pretty paltry on the monthly.


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[adamb1978] 26/9/2023 16:45

Agree about some forecasts helping. I think those FinnCap revenue forecasts look about right, but I agree that the EBITDA figures are possibly high. I guess if the increased revenue comes via x-sell into the existing base then they could be hit, but I suspect that they're about 20%-30% or so too high for the reasons you mention.

Still, I think we could see approaching 10p EPS in the Jun-26 year, which given the growth and what will be meaningful net cash by them, should take the price over 200p

[simon gordon] 26/9/2023 16:04

Was looking at Diaceutics this morning, a sort of SaaS platform for drug testing. £90m market cap, chewing through about £3m per anum, turnover in 2024 forecast to be £30m with £12m cash.

We could get a PCIP 2025 forecast with the Prelims.

Way back in September 2021 Finncap speculated that PCIP could do in 2025 t/o £24m with Adj. EBITDA £7.5m and in 2026 £30m and £12.3m.

Anything close to those numbers and it will be off to the races.

Overheads could be a bit higher with inflation and additional staff.

[adamb1978] 26/9/2023 15:52

Fair points Simon. don't need to see all the rise in 1 day, however we were in the high 80s when this patent stuff came up! I guess markets are generally lower vs H2 2021, and showing their first break even period this year will also help too.

Continue to think that 200p-250p is realistic on a 2-3 year basis

[simon gordon] 26/9/2023 15:36

Hey Adam,

Lot of resistance at 60p. Could be a few stale bulls who are tired and are using this opportunity to move on. Might even be a fundie in the background wanting to reduce.

Harwood Capital recently went long in ECK.

PCIP can now start to attract fundies who were put off by the patent uncertainty.

Hopefully, once it breaks and stays above 60p it can start building toward getting above resistance at 80p.

[adamb1978] 26/9/2023 15:15

Given it sounded like a hands-down win, I'd like to think that PCIP will get the maxium agreed level back.

Bit disappointed with the share price bump today

[ppmm] 26/9/2023 15:00

Interesting to see whatlevel of damages will be awarded, particularly given how sycurio misused details of PCIP's defense and also what will now happen with the case in the proceedings in the US

[simon gordon] 26/9/2023 10:14

Tech Market View - 26/9/23

PCI-Pal declares victory in patent case with Sycurio

AIM-listed payment security and customer engagement specialist, PCI-Pal, has successfully defeated the High Court legal action brought against it by its US competitor, Sycurio (formerly Semafone). PCI-Pal has always strongly refuted the patent claim describing the legal case against it as “unfounded”.

PCI-Pal had been accused of patent infringement relating to “signal detection and blocking for voice processing equipment". The dispute relates to DTMF (Dual-Tone Multi-Frequency) masking technology which provides a secure method for processing cardholder payments by telephone in accordance with the Payment Card Industry Data Security Standard (PCI DSS).

The lawsuit alleged that PCI-Pal's "Agent Assist" secure card payment technology infringed UK and US Patents. Sycurio has been seeking damages and an injunction to prevent any further sales and marketing of the Agent Assist product. Whilst the full details of the judgment are still to be released, Mrs Justice Bacon presiding held that Sycurio’s patent was invalid due to obviousness from two sources of prior art. Furthermore, it was decided that even if the patent had been valid, PCI-Pal’s Agent Assist solution did not infringe the patent.

PCI-Pal's leadership and staff will no doubt be celebrating their success, having been vindicated in the High Court. The company plans to provide more information in the coming days, including an update on the expected timing of the FY23 accounts. The financials have been delayed due to their scheduled release being so close to the date of the UK High Court’s ruling. In September 2022, PCI-Pal's accounts included an £800k provision relating to the company’s legal wrangle with Sycurio (see: Public cloud boosts revenue and margins at PCI-Pal).

[checkers2] 26/9/2023 08:47

From a LSE board poster we see patent award today for PCIPAL:

[simon gordon] 26/9/2023 07:39

Cavendish the house broker - 26/9/23

Yesterday evening, PCI Pal announced that it had comprehensively defeated the unfounded patent infringement suit brought by competitor Sycurio Ltd at the UK High Court. The judgement was handed down at the close of business yesterday, with Mrs Justice Bacon finding that Sycurio’s patent was invalid due to obviousness from two sources of prior art, and that even if the patent had been valid, PCI Pal’s Agent Assist solution did not infringe the patent. The US case is still ongoing, and Sycurio may choose to appeal, but the judgement comprehensively highlights the strength of PCI Pal’s case, and significantly reduces the risks for PCI Pal. A further hearing will determine costs related to the UK High Court case, and we look forward to an update from the company on the date for FY23 results in the coming days.

[this_is_me] 25/9/2023 22:34

This judgement is bound to make potential customers less nervous about committing to the PCIP offering as well as effectively trashing Sycurio's potential.

I would expect the 2024 and 2025 numbers to be even more impressive as a result of this judgement. the share price may well return to the heights it reached in 2021

Mrs Justice Bacon held that Sycurio's patent was invalid due to obviousness from two sources of prior art. Furthermore, Mrs Justice Bacon decided that even if the patent had been valid, PCI Pal's Agent Assist solution did not infringe the patent.

[adamb1978] 25/9/2023 20:14

Thanks Simon. I'm a bit surprised that PCIP didnt include the costs part in the RNS, unless they're not aware of the details until the full judgement is released.

Obviously if they get that cash back then even better

[simon gordon] 25/9/2023 20:00

Costs that might be awarded...

RNS - 26/4/22

During Q3, the following procedural progress was made: In the U.K., the Court process continued and cost budgets of approximately GBP1.3 million were agreed for both parties with the Court. This agreed budget puts a ceiling on the maximum amount of costs that could be awarded against the losing side, subject to the judge's discretion, should the case go to Court.

-----

Spent by PCIP on lawyers:

FY 2022 = £0.8m

FY 2023 = £1.96m (forecast)

[intoodeep] 25/9/2023 19:16

Huge news congratulations

[simon gordon] 25/9/2023 18:18

I wonder if Kevin Clancy will be the sacrificial lamb for this Total Defeat.



At least he's got his tours of Italy to look forward to.

[adamb1978] 25/9/2023 18:11

It was north of 80p before all this nonsense came up! even though markets are weak at the moment, the company is a good bit bigger than 2 years ago.

I'd have thought we get through 60p comfortably...

[simon gordon] 25/9/2023 18:08

Back above 60p? Then a debate about whether to make a run to 80p?


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[adamb1978] 25/9/2023 18:07

Will free up a huge amount of management time too. The distraction of this is crazy, and thats even before the cost

The only silver lining is that its will be deterred PE buyers. No private equity fund would have launched an offer during this, so at least PCIP are now a good bit bigger if one does land.

Really hope they stay independent for a few years yet but could do with the valuation kicking up so ward people off

[simon gordon] 25/9/2023 18:00

This will be fairly big news in PCI DSS scene.

Shocking management at Sycurio.

[adamb1978] 25/9/2023 17:57

Agree Simon - makes them look like fools. Hopefully PCIP make the most of this when speaking to customers

[simon gordon] 25/9/2023 17:51

Adam,

You'd think Sycurio would be nuts to continue in America. Then again, they were nuts to take on PCIP.

Hopefully, PCIP are awarded costs.

I'd love to be a fly on the wall on the Teams call of the Sycurio top management after this ruling.

Trashed their brand in the marketplace, lost their patent and look like untrustworthy plonkers.

[adamb1978] 25/9/2023 17:42

I like the tone to the RNS!

Will be interesting to see what the share price does tomorrow. Obviously the US case is still outstanding but this lifts a major overhang and might make Sycurio fold in the US rather than throw more money at it