Share Name Share Symbol Market Type Share ISIN Share Description
Pelatro Plc LSE:PTRO London Ordinary Share GB00BYXH8F66 ORD 2.5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 5.75 5.50 6.00 5.75 5.75 5.75 54,158 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 7.3 -0.7 -2.1 - 3

Pelatro Share Discussion Threads

Showing 751 to 773 of 850 messages
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These guys still buying luxury cars with shareholder funds?
The good news is no more adverse surprises. Trading is in line and ARR is going in the right direction (slowly) - up 11% in the year to $6m. And new customers are being won, with this number up 3 to 22.

Cenkos have left their 2022 forecasts unchanged at present, presumably to update after the prelims.

Pretty uninspiring in terms of share price catalysts for the moment. The core business is looking OK, and the m/cap is now just £12.3m, but I'm unlikely to add to my relatively small holding without more contract wins and a sense that things really have turned for the better.

Cenkos summarise:

"Pelatro has won three new customers during FY21, taking it to a total of 22 telecoms customers, including Telenor, Vodafone, Axiata, and Ooredoo across 17 countries, processing data of more than 1 billion subscribers. The product portfolio including the mViva contextual campaign management solution, mViva loyalty management solution, mViva data monetisation platform, and mViva customer data platform, all aimed at driving underlying mobile subscriber engagement, retaining customers and generating incremental ARPU for telecom operator customers."

Yes rossco not much to chew on although it's fairly consistent with info provided in previous trading updates. However previous updates did often provide an accompanying contract win which I was hoping for. Not much growth in the numbers - need to start converting some of that pipeline in the much heralded mobile advertising space.
Very little in the way of numbers this morning.
Expecting a year end trading update this week and been nibbling at this level.

Market seems not to trust PTRO but hoping the numbers do the talking.

ST very quiet on this. What's next?
Get through 37.5p and looks like could run towaards 42p?
About 20% run?

Absolute shocker here, I still management are guilty of raising cash just to pay their wages, not for investing in the business, total set of bandits in charge here.
A company that the market has a distrust off, offshore and out of touch with investors!
I did the same earlier jbarcroftr. Just listened back to the Investor Meet Company presentation and along with the increasingly high proportion of ARR they are also operationally cash positive with no need for a fresh raise unless an acquisition opportunity arises.
Just averaged down
Probably foolish but seems unduly depressed
Management must consider taking it private

A significant contract win has been announced this morning.

The exact length of the contract isn't stated but if it were for 4 years that would mean annual revenue of $250,000, which makes a useful dent in the revenue growth needed to make next years forecast

Forward p/e is approx. 15.7 based on today's buying price and expected revenues and assuming the same margin as H1. I guess recent contract wins should also put FY2022 current expectations at approx $7.8m up from $7.2m expected for FY21 assuming customer retention and similar amount of change request work.

Expectations for FY21 grew steadily from about $6m to $7.2m through the year, so investors might consider some further growth expectations for FY22, say between $8m and $9m revenue. The analyst forecast I can see on Simply Wall St for FY22 is $8m but that was last updated in June.

Although the p/e seems low for a software company I guess that's because individual contract wins into the global telco market are relatively uncertain and significant and create 'lumpy' range of expectations. However, I'm starting to feel more confident that the risk is to the upside here.

I held and traded a bit since July 2019 and carrying a 15% paper loss as of this moment. The pace of sales and new contracts has been mortifyingly slow imho.

Maybe the telco market is just slow and lumbering in general. Glimmer of hope from the interims ..

"..we have engaged with one corporate in the financial services sector and hope to provide our software to analyse its proprietary data. We expect to see further progress with non telco customers in the coming months and look to the future with confidence."

Hope it doesn't just develop into an excuse for another heavily discounted placing though.

After listening to the IMC presentation, I have reservations that the CEO is involved in 2 companies. While he says that there is no conflict of interest currently, that could change in the future.
However the company trades on about 5.2 times the expected recurring revenue this year, which looks good value

Yup - it's the contract wins we need now to put momentum back into the share price - which can be (temporarily!) very strong based on past experience.

Looks like we are about to come out of the current mini auction @ 44-45 with only 1k currently available on the Offer so perhaps PTRO is about to embark one of those runs upwards. Fingers crossed.

Good to see another contract win - at $600k over 3 years it's relatively small, but strategically significant since it could lead to much larger business from the "large European telecom group":


Just bought some more of these, this guy appears to be a fan of this share (from Master Investor);

bwana mkubwa
Thx for the full ST tip gleach23.

Here's a new interview with the CEO - nothing revelatory AFAICS, but definitely positive vibes:


As announced today, Pelatro are presenting next week on Investor Meets Company, which gives the opportunity to ask questions as well as listen to what the company have to say

Yes, thanks reapz. Looks like it was released after the bell today so hopefully we'll see some upside tomorrow.

I wasn't able to read below the first para using the link but the article is publicly available so posted below -

Aim-traded Pelatro (PTRO:39.5p), a company that makes its money by providing 19 large telecoms operators with precision marketing software, has delivered a step change in profitability and completed its move to an annual recurring revenue (ARR) model. This materially de-risks the investment case and means investors are far more likely to attribute a higher valuation to its growing income stream.

Pelatro uses 'big data' analytics (artificial intelligence, machine learning and other analytical techniques) to reveal patterns, trends, associations and behavioural traits of telecom subscribers. These insights enable mobile telecom operators to monetise their data, boost average revenue per user and their share of subscriber spend while also reducing churn rates.

In the first half, the group leveraged its position with one of its large Asian telcos, which has 230m subscribers, whereby Pelatro will now be paid a fixed amount each quarter for all its base products (including annual maintenance support and ad-hoc change requests), thus creating a valuable ARR stream. Incremental revenue of US$100,000 from the contract for the 2021 financial year is expected to ramp up to US$500,000 from 2022 onwards under the three-year agreement. In addition, the group won a recurring revenue campaign management contract with another Asian telco that should generate US$1.5m of revenue.

Existing customers have also been active in purchasing additional modules such as enterprise contract lifecycle management (automates and streamlines contract processes during key stages) and change requests, which combined will produce US$1.5m of revenue this year. Pelatro is benefiting from its share of client revenue gains above minimum contractual payments, too.

So, with the cost base relatively fixed, and revenue scaling up, the operational leverage of the business model is kicking in. First half cash profit surged by 141 per cent to $1.66m to deliver adjusted operating profit of US$0.76m (loss of US$0.11m in first half of 2020) on 51 per cent higher revenue of $3.46m. Pelatro’s full-year guidance points to annual revenue increasing 80 per cent to US$7.2m, an outcome that more than supports house broker Cenkos Securities’ full-year cash profit estimate of US$2.5m.

On this basis, Pelatro’s enterprise valuation of £16m equates to a modest three times forecast revenue, almost all of which will be recurring or repeat business. That’s an incredibly low rating for the sector as the average rating for software companies operating Software-as-a-Service models is around eight to 10 times ARR. Furthermore, Pelatro is only being valued on nine times cash profit estimates to enterprise valuation, almost half the rating of finnCap’s Tech 40 Spec Software index. The valuation discrepancy is even more anomalous when you consider that the directors are working on a “strong pipeline that is expected to secure recurring revenue and lead to attractive growth in 2022.”

Cenkos’ expectation of 25 per cent annual revenue growth next year looks conservative to me especially as the directors are leveraging Pelatro's position in 'big data' analytics by entering the mobile advertising space, a market that is worth $100bn and one projected to grow to $221bn by 2024.

The shares have traded sideways since my last article (‘Marketing re-rating potential, 21 June 2021), and I see material upside to my 100p target price. Strong buy.

Thanks for posting the link reapz2345

The mention of one contract being paid quarterly explains the receivables if this is common practice.
the same contract ramping up from $100,000 now to $500,000 in 2022 means a substantial chunk of next years revenue increase is already in the bag and if they do announce a few more customer wins before the end of the year, it starts to look very achievable.

Simon Thompson giving a STRONG BUY to 100p. £1 incoming!
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