Pci-pal Share Discussion Threads

[adamb1978] 19/9/2024 08:52

Its just that the auditors will be saying that some part of what PCIP previously reported as recurring revenue (and which the same audit firm also agreed was recurring revenue!) is related to services/support and isn't recurring.

So ARR will be a bit lower - as you saw this morning - but overall revenue isn't.

[yousif] 19/9/2024 08:47

I am not able to read what is behind the scene following this RNS!
My feelings that they are hiding something but hope am wrong.
I am surprised that the share price has not crushed.
It is a good business but not sure how well it is managed.

[adamb1978] 19/9/2024 07:33

Yes, the reaction doesnt surprise me. It doesnt look like there is anything of substance though, just optics. Business is performing well and they handled all the lgal nonsense well, but they've scored a couple own goals over the last 3-4 years too

[dr biotech] 19/9/2024 07:27

Delayed audit is always going to lead to a fall. Unfortunately only question is how far

[adamb1978] 19/9/2024 06:34

Helpful statement. Looks like the ARR figure has been reduced as a result of the auditors work, though the TACV hasn't (which is logical). Weird thing is that its the same auditors as the year before

[powlert] 17/9/2024 13:03

At what point shall we start discussing what exactly "mid-September" means? lol

[simon gordon] 28/8/2024 20:25

Thanks, Adam.

Been fun on here with you and the PCIP journey.

Maybe, we'll meet on another share in the future!

Xx

[adamb1978] 28/8/2024 20:06

Best of luck wherever you move to Simon!

[simon gordon] 28/8/2024 19:20

Adam,

I've decided to move on and sold out completely today, my sales contributed to the fall from 15 August.

I wish you and holders a prosperous future in PCI Pal!

[simon gordon] 28/8/2024 16:16

Bloomberg - 28/8/24

The World’s Call Center Capital Is Gripped by AI Fever — and Fear

The experiences of staff in the Philippines’ outsourcing industry are a preview of the challenges and choices coming soon to white-collar workers around the globe.



-

Bloomberg Big Take Asia podcast - 28/8/24

Humans and AI Bots Blur in the World's Call Center Capital

Call centers in the Philippines, the world’s second-biggest outsourcing center after India, are embracing artificial intelligence - and it’s radically changing what it looks and sounds like to work there.

On today's Big Take Asia Podcast, host Rebecca Choong Wilkins demos the Sanas AI app and talks to Bloomberg's Saritha Rai about the industry's rapid transition and what it might mean for workers around the world.

[adamb1978] 28/8/2024 12:01

I'm with you Dr B. Hard not to believe that *someone* knew something, but equally hard to prove. Up to others whether they want to risk going to prison if they have inside info. Not a risk I'd take!

I'm likely to add a few more too. With the fall plus having a decent year so far (touch wood) I have a small gap to my position limit

[dr biotech] 28/8/2024 10:47

So anyone else think the 10% fall recently was someone knowing before us?

Decent enough recovery today - could have done without the earnings miss behind the headline. Would be better to under promise and over deliver than to keep falling short.

I'll continue to hold though.

[loglorry1] 28/8/2024 09:54

I added a few more at 53p. This is a sticky SaaS business as should be valued at a multiple of ARR. Although they didn't give that figure I think it has grown nicely. Also its good to see a nice clear honest statement today which lays out what is going on. Onwards and upwards methinks.

[simon gordon] 28/8/2024 08:24

It looks like someone has been asleep at the wheel of PCIP.

Maybe, the new CFO will move auditors as BDO has a poor track record according to this report:

FT - 15/8/24

There are still “unacceptable” numbers of flaws in the work carried out by the largest US audit firms, the industry’s regulator said on Thursday, after its inspections showed a surging rate of deficiencies at mid-tier firms BDO and Grant Thornton in particular.

Among the Big Four, the deficiency rate — which leapt higher after the pandemic — stabilised in 2023, the Public Company Accounting Oversight Board said.

At BDO, 86 per cent of audits inspected by the PCAOB were found to be deficient, meaning that the firm had failed to collect enough evidence to support at least part of its audit conclusion. At Grant Thornton, a little over half of audits inspected contained flaws.

“These inspection results point to some small signs of movement in the right direction,” said PCAOB chair Erica Williams. ̶0;Still, overall deficiency rates are unacceptable, and firms must do better. Now is the time to double down on efforts to improve and deliver the audit quality investors deserve.”

[adamb1978] 28/8/2024 08:14

If I were ECk or Sycurio, I'd try to sell the company to PCIP with a story based around migrating customers to PCIP's platform. THey wont get a premium price but would recover something.

The FY24 slippage is careless rather than more than that in my view. Perhaps with a permanent CFO in place they might have been stronger with their auditors?

[adamb1978] 28/8/2024 07:43

Would be intriging to know which partner that is/was Simon, but yes, not surprising if resellers are ditching companies with dated offerings like Sycurio.

I'd imagine Livingbridge are working on the next plan to recover some value from their disasterous investment in Sycurio. The new CEO joined in April (just seen that the Livingbridge partner on the board also changed) and CFO left in May. So the latest revolving doors there, which probably delays them further. Problem that companies with old technology have is that they're constantly spinning their wheels to put lipstick on the pig whilst the market moves further away from them

[simon gordon] 28/8/2024 07:10

ECK and Sycurio are losing the battle for partners, what's the point of someone buying ECK? Is Livingbridge in for ECK?

"Post period end, the Company has signed a major new global reseller contract with a US headquartered business communications vendor that has extensive CCaaS and UCaaS operations across the globe. The new contract, which follows a lengthy procurement process by the partner to refine their focus to one single provider for secure payments, has immediately resulted in the signing of the partnership's first customer. The partner will now go through a full on-boarding process which will include a phased launch process of the integrated solutions across the next six months."

[hastings] 28/8/2024 07:06

Poorly handled by the company, but the early fall looks overdone. The story hasn't changed and as previously mentioned looks cheap against peers.

[dr biotech] 28/8/2024 07:03

Any accounting issues will cause some to sell. Hopefully only a short term drop.

[adamb1978] 28/8/2024 06:51

From a valuation perspective, we're on less than 2x FY25 EV/Sales whereas the Eckoh offer I believe is around 3.5x. Still feels very cheap

[adamb1978] 28/8/2024 06:48

Hi 'This is me'

I've sat on a few boards over the last 5-10 years and auditors have been increasingly fussy. They increasingly covering their own rear ends and take more risk averse positions as they dont want to be the subject of law suits.

There's accounting rules which basically say that if a customer has a right to return/reject etc then you can't recognise some/all etc. I assume that is what is the case here - a clause in the contract which provides some reversibility to the revenue.

But to your point, this sounds like a technicality given the customer is presumably happy having paid in full.

[simon gordon] 28/8/2024 06:46

Cavendish - 28/8/24

Changes to forecasts – As we show on p3, we reiterate our FY24E net cash of £4.3m, while revising our FY24E revenue by 6% to £18.0m, adjusted EBITDA to £0.9m from £1.7m, and adjusted PBT to -£0.6m from +£0.1m. We then reiterate our FY25E net cash of £4.8m, and upgrade our FY25E revenue by +1% to £22.4m or +25% yoy growth, upgrade FY25E adjusted EBITDA by +£0.5m to £2.5m, and upgrade adjusted PBT by +£0.6m to £0.8m, where FY24E adjusted PBT was positive pre-deferral.

[this_is_me] 28/8/2024 06:44

"the customer has paid in full and, in the Board's opinion at the time, the Company had delivered the services and revenue could be recognised in FY24"; so what is the auditors problem? It is, however, going to help 2025 results.