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 Shares Traded Last Trade
  -1.00 -1.64% 60.00 186,740 15:11:55
Bid Price Offer Price High Price Low Price Open Price
58.00 62.00 61.00 58.50 61.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 6.12 2.51 8.00 7.5 20
Last Trade Time Trade Type Trade Size Trade Price Currency
15:47:30 O 45,000 59.65 GBX

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Date Time Title Posts
03/12/201912:02Pelatro PLC (with charts)23
02/12/201907:30Pelatro PLC348

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Pelatro Daily Update: Pelatro Plc is listed in the Software & Computer Services sector of the London Stock Exchange with ticker PTRO. The last closing price for Pelatro was 61p.
Pelatro Plc has a 4 week average price of 29.50p and a 12 week average price of 29.50p.
The 1 year high share price is 98p while the 1 year low share price is currently 29.50p.
There are currently 32,532,431 shares in issue and the average daily traded volume is 479,760 shares. The market capitalisation of Pelatro Plc is £19,519,458.60.
rivaldo: Too early stage to be a takeover target. A modest institutional placing isn't a bad idea, but let's see the share price back up to 80p-90p when that would be an even better idea.
rivaldo: Excellent recovery. I can see the share price actually rising quite nicely as investors realise the true picture here. Finncap retain their 125p target price. They now see 4.1c EPS for this year, rising to 5.6c, i.e 4.3p EPS for next year (2020). They also note that "management seems confident that the finances can sustain the changing business model", and note "management will consider various lease financing or similar options to match costs with revenue over the >5 life of the contract and preserve cash reserves".
cordwainer: ..higher than the current share price, but hopefully not for long, considering today's trading update.
rivaldo: Penpont, thx for the comprehensive IC article. Certainly looks like the bounce is gathering strength. Finncap seem very confident about the H2 weighting being met. Given $6.3m of visibility, $4.2m is necessary from a $9.2m pipeline, with comfort hopefully being provided in mid-November. IMO Finncap (and presumably PTRO) should have set their forecasts lower at say 12c EPS this year, which would still have been a good rise from last year's 10.1c EPS. Always better to under promise and over deliver. As it is, 12c EPS this year would be a very respectable achievement. Against that stretching forecast it would be deemed a failure, yet it would make the current share price look very cheap indeed.
cordwainer: There are a number of "if's" in the above article, everything depends on new sales. Although much of these sales are to existing customers, they may still be evaluating the software for their businesses, which can take time and then even more time to assess rollout or expansion of the suite, potentially replacing existing investment and development. Telco's do after all tend to be quite large not-so-nimble organisations or at least have to tread carefully due to low margins in my estimation (feel free to counter this point if you know better). The ramp up in staffing expenses is wiping out profits unless there is an equivalent surge in sales and is either a sign of confidence or a cause for concern and probably both. For now, I feel there's a bit too much potential and not enough reality in the outlook. Despite the share price drop, I will not be topping up for now just holding and hoping.
penpont: Text of ST comment in IC yesterday: Pelatro second-half weighting spooks investors Simon Thompson Simon Thompson Investors were clearly unnerved by today’s half-year results from Aim-traded software company Pelatro (PTRO:55p) after the company guided shareholders to expect a heavy second-half weighting to this year’s results. The shares lost over a quarter of their value, dropping below my recommended buy-in price of 78p ('Pelatro: Big data, big profits', 4 Feb 2019). I feel they have grossly overreacted as the board has not changed its sales nor profit guidance and still expect to deliver the step change in profits that house broker FinnCap is predicting this year. Analysts are forecasting full-year forecast of $10.5m (£8.5m), up from $6.1m in 2018, to underpin a rise in annual pre-tax profits from $3.1m to $5.7m and a 50 per cent-plus hike in earnings per share (EPS) to 15.4¢. Moreover, both chief executive Subash Menon and finance director Nic Hellyer gave me an insight into how the company’s contract pipeline is progressing, and one that is very supportive of hitting analysts' forecasts. Big data analytics drives contract momentum Pelatro’s mViva software uses 'big data' analytics to study live streaming end-user customer data to reveal patterns, trends, associations and behavioural traits of telecom customers. These data-driven insights are then used in precision marketing so that telecom operators can be more customer-centric and not product-centric in their approach. Based on this analysis, relevant offers are then made to end users through a variety of channels such as SMS, email and apps. The offering of five software solutions offers tangible benefits to clients, boosting their retention rates, average revenue per user and share of spend from customers, so it’s not surprising that Pelatro is winning new business. In the first half, five customers in the Asia Pacific region signed contracts to use Pelatro’s contextual marketing platform including Advanced Info Services, the largest mobile network operator in Thailand, and a member of the Singtel Group, which has 1bn subscribers across its global operations. The AIS acquisition highlights how Pelatro is winning business in other territories from large telecom operators as it now serves two of the seven markets of the Singtel Group. Pelatro now has 18 telecom operators across 17 countries. The company is also monetising the data it analyses; Tele2, the Central Asian subsidiary of a Western European telco, which has more than 6m customers, signed up for the company’s data monetisation platform in the first half. It’s worth noting that of the aforementioned six new contracts, four are recurring in nature and have a contract value of $5.4m (£4.4m) over the next three years. The other two contracts are licenses which will contribute $1.9m of revenue in 2019. Moreover, of the $2.7m revenue reported in the first half, three-quarters was repeat business from existing customers (change requests, revenue gain share contracts, managed services, and support), thus highlighting the shift towards an annuity style business model. In the first half of 2018, recurring revenue only accounted for a third of the total. So why the share price drop? The reason why the share price was marked down is because Pelatro needs to book $7.8m of revenue in the second half to hit house broker FinnCap’s full-year forecast of $10.5m, up from $6.1m in 2018. The second-half weighting clearly increases execution risk. That’s because having ramped up investment in the business, mainly additional headcount, Pelatro’s profits are operationally geared to rising sales. To put this into perspective, and after factoring in a slight decline in operating expenses in the second half as the directors forecast, then first-half adjusted operating profit of $200,000 on revenue of $2.7m surges to a second-half operating profit of $5.6m on revenue of $7.8m, given that a high proportion of incremental revenue will be converted into profit on relatively a fixed cost base. Bearing this in mind, the $7.8m second-half sales target, Pelatro has booked a further $2.5m of revenue in the third quarter, and has visibility over $1.1m of additional revenue. This leaves $4.2m of revenue still to book from a near-term pipeline worth $9.2m, split $3.7m across three new customers and $5.5m from eight or nine existing customers. Mr Menon told me that all of these existing customers are repeat customers’ already, which clearly improves the chances of landing new contract work with them. It also explains why the directors remain confident that they can book the $4.2m of outstanding revenue needed to deliver on FinnCap’s full-year forecast. If they do then the shares are simply too lowly rated on a price/earnings (PE) ratio of 4.5. Furthermore, around 50 per cent of Pelatro’s revenue is repeat business, and the directors are targeting contracts with more than 20 new customers worth $9.2m in additional sales opportunities, excluding the $9.2m near-term pipeline. Conversion of only a small proportion of that pipeline, in addition to the growing repeat revenue stream, would set the company up for another year of growth in 2020. The directors’ optimism looks justified. Buy.
theoldcodger: I'm with you hiranlha, marginal misses by smaller companies seem to be severely punished these days. I failed to act immediately when another of my holdings reported slightly disappointing results a few days ago and the share price then tanked over the course of the day. Lesson learnt, I pulled the trigger on my PTRO first thing this morning, getting a very good price for the day, but still a horrible 25% loss overall. The Company is currently undergoing a rapid expansion phase, that could bring rich rewards, however, the execution risks are substantial and I just felt that until we have more clarity on what that's going to mean to the bottom line, it was better to be out completely. I will continue to monitor and hope all comes good for current holders. TOC
hiraniha: I'm noticing a trend in the markets where increasingly a lot of companies are releasing updates that have marginally missed targets, and the share price subsequently takes a thorough beating.I mean, do these results deserve a quarter of its share price knocked off?
rivaldo: After the March contract win, visibility was "approximately $6m" for this year. I assume change requests etc then increased this to $6.3m, and that the $1.5m contract win a week ago is additional to this as otherwise the maths doesn't work. Presumably the $6.3m was as at the end of May, in which case PTRO is now at $7.8m (or say $7m+) for this year. I agree with rgmgo's point above - if PTRO were to achieve only 11.4c EPS this year, i.e 9p EPS (compared to the forecast 15.4c), then at 80p the share price would still look very cheap, especially given the growth potential. Perhaps Finncap should be underplaying this year's growth, allowing PTRO to over deliver, rather than building in this expectation of fast growth, which is welcome and certainly achievable, but could be derailed by just one mis-step. EDIT - mikeh30, sorry, my post crossed with yours.
rivaldo: Finncap retain their 125p target price and 15.4c EPS forecast, and conclude as follows: "Undervalued: The share price has bounced from its lows but remains very cheap. The finnCap Tech40 and Next50 indices are currently trading on average forward P/E multiples of 23.9x and 18.7x respectively. In contrast, Pelatro is on just 6.6x FY 2019 while consistently profitable, cash generative and demonstrating high growth (turnover jumping 161% in FY 2017 and 95% in 2018). We feel there is much more value to come."
Pelatro share price data is direct from the London Stock Exchange
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