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 -2.67% 36.50 49,397 14:00:15
Bid Price Offer Price High Price Low Price Open Price
36.00 37.00 37.50 36.50 37.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 6.67 1.01 2.50 14.6 14
Last Trade Time Trade Type Trade Size Trade Price Currency
16:35:03 O 25,000 39.25 GBX

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15/1/202115:01Pelatro PLC (with charts)214
07/7/202009:31Pelatro PLC349

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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 37.50p.
Pelatro Plc has a 4 week average price of 34.50p and a 12 week average price of 33p.
The 1 year high share price is 72.50p while the 1 year low share price is currently 27p.
There are currently 37,032,431 shares in issue and the average daily traded volume is 74,688 shares. The market capitalisation of Pelatro Plc is £13,516,837.32.
rivaldo: Nice start to 2021 - let's hope it continues and PTRO gets back to over 80p pronto. HNY to all here.
masurenguy: Updated share register - the top 8 shareholders currently own 70.21% of the issued shares. Chelverton Asset Management: 2,154,794: 6.62% Rathbones Investment Management: 1,615,626: 4.97% Herald Investment Management: 1,561,986: 4.8% Artemis Fund Management: 1,542,465: 4.74% Hargreave Hale Limited: 1,027,397: 3.16% Maven Capital Partners: 1,005,479: 3.09% Killik & Co LLP: 944,596: 2.90% The 7 above institutional shareholders currently own 30.28% - some of them were marginally diluted by the placing to raise £2.1m @47p in August 2020. In addition to the above institutional shareholders, Bannix Management LLP, the investment vehicle of Kiran Menon, Varun Menon and Sudeesh Yezhuvath holds 12,993,553 shares (39.93%). Most recent Cenkos Note:
rivaldo: Cenkos say Buy today and see current share price levels as a buying opportunity: Here's their intro and conclusion: "Good visibility into H2E Given that Pelatro has visibility of over $5m of revenue for FY20E, we are leaving our forecasts unchanged following the interim results. The pipeline is strong and we are cognisant that the mix of business signed in H2E will have a proportionate impact on reported performance this year. Pelatro is trading at the lower end of its 12-month price range which creates a buying opportunity." "Forecasts unchanged. A new contract has been signed with an existing customer worth $1.5m over 5 years. Our forecasts are unchanged as we see this building better visibility into H2E. Pelatro's revenue performance is historically weighted to H2 and we see this proportion becoming more pronounced in FY20E at 69% (vs59% in FY19A). Pelatro's visible revenue of $5m for FY20E amounts to 68% of our revenue forecast and is stated before the positive impact from this new contract. Strong pipeline. The total pipeline of opportunities stands at $15m over the next 12-months, of which $8m is identified to fall into FY20E. $4m of the FY20E pipeline is with existing customers with an identified need, subject to sign-off, and is therefore of high probability of conversion. The delivery profile of newly won business will determine reported revenues but the direction of travel for the business is firmly upwards. On FY20E EV/sales of only 2.3x we are Buyers."
rivaldo: I had a relatively small holding here and have also been topping up at these levels. At a £12.9m m/cap: - PTRO are forecast to have $3.4m net cash at this year end - they have almost $5m recurring income - they've stated that COVID has only had a "minimal" effect, and trading is in line with expectations - COVID has enhanced trading for all the telcos and likely those supporting them, like PTRO - $3m EBITDA is forecast for this year and $3.5m for next year - investors now can buy at a large discount to the 47p paid by institutions - the shares are tightly held and volatile, so any good news should have a decent effect (the converse is also true of course!)
cordwainer: To elaborate more precisely on my post #128.. please compare its quite a brief and contrasting style :-) RE Placing to " o strengthen the sales team in both existing emerging and new developed markets o marketing at various industry conferences and events to broaden Pelatro's brand recognition and network o fund working capital for Managed Services, which the Directors believe will enable the Company to tender for larger contracts" I'm a bit worried about the business strategy and culture given the premise and wording of this proposed placing. Is this a cavalier 'win customers at all costs' top-level attitude, driven by the thrill of the sale, never mind whether its deliverable we can sort that out afterwards ? I've seen this before and would mean that PTRO could end up being owned by its customer(s). Misuse of the word "marketing" - that is specifically 'networking' only imho. I tend to only consider marketing in its broadest sense, e.g. to include a quality approach across all aspects of the business. I dislike the concept of "strengthen the sales team" as though it consists of a special class of particular persons that specialise in slick presentation skills and very little else. I would hope a sales team consists of the key software design and development personnel armed with indubitable market research and a good specialised knowledge of the CRM and BPA being addressed, and that should include the CEO. On the last point "enable.. tender for larger contracts", I'm afraid it is also meaning to say enable Company to deliver the *current* large contract, which is what one might expect working capital to be about. Otherwise it might more pointedly be referred to as investment capital? Between the lines I speculate that management are worried that the major client, for which PTRO is having to build capacity using its own finance, is capable of curtailing the contract and treating it as parallel trial. Such is the bargaining power of the buyers in this case (see Porter's 5 forces). Share price may potentially grind lower after placing until the market sees a more self-sustaining bottom line. And right now as a shareholder with a 0.9% commitment, I hope I'm completely wrong.
rivaldo: Here's ST's full tip with the 100p target price (given that readers will have had time to buy in by now): "Business as normal’ at Pelatro Aim-traded Pelatro (PTRO:50.5p), a company that makes its money by providing telecoms operators with precision marketing software, has issued a bullish trading update at its annual meeting. Annualised recurring revenue of US$4.7m is US$600,000 higher than when annual results were released in early April and two thirds higher than the 2019 run rate. This highlights the strength of demand for Pelatro’s software which handles and processes the data for over 800m subscribers of its 19 telecom operator clients around the world. Specifically, Pelatro uses 'big data' analytics to reveal patterns, trends, associations and behavioural traits of subscribers to enable telecom operators to monetise data to boost average revenue per user and increase their share of subscriber spend. Adopting a more customer centric approach to marketing also reduces churn rates. Admittedly, Pelatro’s share price is below my 79p entry point ('Pelatro: Big data, big profits', Alpha Report, 4 February 2019), having declined from the 70p level prior to the stock market crash. However, this is not a reflection of the operational performance as revenue visibility for 2020 backs up two thirds of Cenkos Securities 2020 estimate of US$7.4m, up from US$6.7m in 2019, and the broker’s 2021 revenue estimate of US$9m doesn’t seem unreasonable given that Pelatro has a US$18m new business pipeline and is likely to see higher demand from existing contracted work, too. The potential for Pelatro to double net profits next year as the operational leverage of the business model kicks in is significantly undervalued as the shares only trade on a 2021 price/earnings (PE) ratio of 10. My target price is 100p. Strong buy."
rivaldo: Agreed. An encouraging update today, particularly the increasing revenue visibility, recurring income and certainty that they'll meet market expectations. Management have certainly increased the bar nicely, with the aim of increasing ARR to over $10m in the next 2-3 years. Cenkos this morning conclude as follows, with fair value being double or more the current share price: "Re-rating. The $5.0m of revenue visibility covers 67% of our 2020E revenue forecast. The new ARR figure places the stock on an EV/recurring revenue multiple of c3.4x. Fair value in our view lies in a multiple range of 5-7x, ie a possible doubling or more of the share price. Buy."
rivaldo: The new Finncap note is 17 pages long and well worth a read. A couple of nice extracts: "Final thoughts The financial results do not truly reflect what a good year FY 2019 was for Pelatro. The switch from large upfront licences to smaller recurring-revenue contracts while scaling up for global sales and a managed services offering, has impacted the financials, but if we look beyond the headline numbers this is a company showing consistent growth in; customers, regions and offerings. By deepening its relationship with its customers, PTRO is building a secure base of recurring revenue and which made its name in developing regions but now beginning to challenge US market leaders in their own backyard." "Valuation view From highs of near 100p, the share price has slipped steadily over the past 12 months as the company undertook its transition from selling upfront software licences over to recurring contracts. The lower revenue growth and the reduced earnings from the required investment made investors nervous. This has been exacerbated by the sudden impact of COVID-19 on the market leaving the stock deeply undervalued. The share price, along with the market in general, has rallied since mid-March lows. The business currently trades on a forecast P/E of under 14x and an EV/EBITDA of under 6x both far too low for the growth and profitability the company has demonstrated. To that we can now add the security of starting the year with half of the expected revenue already secured under recurring revenue contracts. We continue to target 125p in the longer term as the stock and the market recovers." The list of major shareholders is stellar: Shareholders % Bannix Management LLP* 39.9 Chelverton Asset Management 6.6 Rathbones Investment Management 5.4 Herald Investment Management 4.8 Artemis Fund Management 4.7 Killik & Co LLP 3.8 Hargreaves Hale Ltd 3.2 Maven Capital Partners 3.1 *Bannix is the investment vehicle of Kiran Menon, Varun Menon and Sudeesh Yezhuvath."
rivaldo: The MMs marked the share price straight down to around 47p even before a share had been traded. This would have been based completely and superficially on the fall in EBITDA/EPS and their scant knowledge of the company, without knowing the detail re the transition to SaaS etc when this was already known by investors - and in fact today's figures slightly beat the revised forecasts. Since then the share price has only dropped a further 1p-1.5p or so. Hopefully this means the share price will stabilise around here, and at some point as the market values the recurring revenues and prospects the share price may bounce. I note that Finncap have reiterated and left unchanged their 125p target price. EDIT - mfhmfh, you beat me to it whilst I was writing!
rivaldo: PTRO actually beat Finncap's 2019 forecasts slightly for both revenues and the 4.2c EPS. Finncap have unsurprisingly reduced the current year forecast to 4.7c (from 5.6c). PTRO have already secured almost 50% of current year forecast revenues, and with that big pipeline I'd have thought PTRO would make the remainder and potentially beat it given the current boom in telecoms revenues and the desire of telcos to utilise efficiency-boosting products like PTRO's. I think cash is manageable if not exactly bountiful. The reassurance here imo is that the CEO has done it all before and knows the pitfalls. And the currency movements are helpful. The negative is the Danateq consideration. This is only due in October, so there's plenty of time. Otherwise, there are options. Perhaps this could be renegotiated into part-shares, part-cash. Business may have been good enough to enable payment without problem. Or perhaps a short-term loan facility. And I wouldn't mind a small fundraise nearer the time if at a decent price. I do like the sizeable and increasing recurring income and the nature of PTRO's services, plus the CEO's track record. With careful husbandry, a couple of contract wins from that pipeline could see things heat up nicely here.
Pelatro share price data is direct from the London Stock Exchange
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