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
  -0.50 -1.25% 39.50 14,894 13:36:09
Bid Price Offer Price High Price Low Price Open Price
38.00 41.00 40.00 39.50 40.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 4.02 -2.08 -7.20 18
Last Trade Time Trade Type Trade Size Trade Price Currency
16:25:47 O 818 40.74 GBX

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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 40p.
Pelatro Plc has a 4 week average price of 37p and a 12 week average price of 35.75p.
The 1 year high share price is 61.50p while the 1 year low share price is currently 33p.
There are currently 45,407,431 shares in issue and the average daily traded volume is 45,007 shares. The market capitalisation of Pelatro Plc is £17,935,935.25.
gleach23: 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.
rivaldo: 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": Https://uk.advfn.com/stock-market/london/pelatro-PTRO/share-news/Pelatro-PLC-Contract-Win/86211872
gleach23: 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.
rivaldo: I rather like today's interims. It seems to me that with recurring revenues now up to 70%, and $1.61m EBITDA, the company's turnaround is taking shape nicely. There is $1.39m of capitalised development expenditure, so one could argue that the EBITDA figure is a little bit of a mirage. But PTRO are investing large sums in the mobile advertising space etc which from the narrative might not take long to pay dividends. This is now a £17m m/cap which is well funded going forward and with decent, and increasing, revenue visibility. The CEO has done this all before, and whilst it's taken longer (much longer!) than hoped, these could be the first stirrings....
gleach23: hi rivaldo...I find searching for his tips a bit hit n miss but they often display eventually - Marketing re-rating potential Our small-cap stockpicking expert highlights a precision marketing software company that has been winning a raft of new contracts and could be on the cusp of an earnings upgrade cycle June 21, 2021 By Simon Thompson - Framework agreement with large Asian telco worth US$0.5m in revenue in 2022. - Two new contracts for 2021 year worth US$0.5m. - Over 97 per cent of analysts’ 2021 revenue forecasts already covered by order book. - Placing and PrimaryBid Offer raises £3.35m. Aim-traded Pelatro (PTRO:43p), a company that makes its money by providing 19 large telecoms operators with precision marketing software, has been awarded multiple contracts since I last highlighted the investment opportunity (‘Profit from big data analytics’, 19 April 2021). The company has also been increasing annual recurring revenue (ARR), thus de-risking the investment case and enabling investors 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. Having rolled out its leading mViva software platform across 23 markets, handling data of 800m clients across Asia, the Middle East, Africa and Latin America, Pelatro is leveraging its position further by announcing a framework agreement with one of its large Asian telcos, which has 230m subscribers. Pelatro's current engagement with the telco's operating companies includes annual maintenance support and ad-hoc change requests. These have been brought under the framework agreement, with a base level of man days for change requests forming part of the contract every year, thereby making them recurring in nature, along with an annual maintenance fee. Operating companies can also now access other products and services (on an agreed price list) from Pelatro without the need for price negotiation. Pelatro will be paid a fixed amount each quarter for all its base products, thus creating a valuable ARR stream. The incremental revenue for the 2021 financial year will be around US$100,000, and is expected to ramp up to US$500,000 from 2022 onwards. In addition, Pelatro has announced two contracts with existing customers worth a total of US$500,000 in revenue, one for additional modules as the client moves parts of its activities onto the group’s mViva platform, the other is for change requests. The revenue will be delivered in 2021 and means that Pelatro has already secured US$7m of house broker Cenkos Securities’ US$7.2m revenue forecast, a high proportion of which is recurring in nature as the company transitions its business model away from lumpy licence fees. The company is also raising £3.35m through a placing and PrimaryBid Offer of new shares, at 40p, subject to shareholder approval on 1 July. Around £1.5m of the proceeds will be used to leverage Pelatro's position in 'big data' analytics to enter the mobile advertising space, a market that is worth $100bn and projected to grow to $221bn by 2024. I highlighted the growth potential here in my last article. The balance of the fundraise will be used to strengthen the company's balance sheet. The point is that Pelatro could very well exceed Cenkos’ revenue forecast, which factors in 80 per cent year-on-year growth, and move into a small operating profit, so reversing the 2020 loss of £1.9m. Furthermore, the building contract momentum and ARR stream means that Cenkos’ 2022 revenue estimate of US$8m is starting to look far too conservative, especially as the directors have US$16m of contracts in the pipeline. Prospects of outperformance in 2022 is certainly not in the price. Based on Cenkos’ 2022 cash profit estimate of $3.5m (£2.53m), Pelatro’s enterprise valuation (post the placing and PrimaryBid Offer) of £16m equates to around six times forecast cash profit, hardly excessive for a company that is now generating operational cash flow and has a growing valuable ARR stream. In fact, Pelatro’s enterprise valuation to ARR multiple is less than half the average rating (eight to 10 times) for software companies operating Software-as-a-Service models. Pelatro's share price is up 8 per cent since my April article, albeit the price pulled back sharply on news of the equity raise. Once the dust has settled, I fully expect the upward trajectory to resume maintain my 100p target price. Buy.
rivaldo: Given the mobile advertising opportunity I'm not surprised to see the fundraising. However, the discount at 40p is awful.....it's no wonder the institutions were "delighted" to take part. The apparent lack of director participation is also disappointing, although at least they do have extremely large shareholdings in total. Paleje has summed it up well. I too see the opportunities ahead and the value in a high recurring revenue business, but management need to get past the missteps and deliver on a consistent basis. The CEO has done it before and I believe can do it again, although the short term share price will suffer with this news - but after all it was at 40p back in April anyway.
theoldcodger: Well, against my better judgement, I've subscribed for a few via PrimaryBid. In the relatively short time PTRO has been a listed company, I've gained the distinct impression that it's run more for the benefit of the management rather than shareholders. The large discount of the placing also tells us something rather unpalatable about potential investor's enthusiasm for the issue and the share price is sure to crash when the market opens tomorrow. However, I still believe that the company has a potentially exciting future, so have given it the benefit of the doubt, but their results now need to start reflecting progress and any further fundraising before that would be a bridge too far in my opinion and have me heading swiftly for the exit. All just my musings and very much not investment advice in any way. I hold, TOC
gleach23: Looks like typical PTRO share price movement. Surely not a move to low 40s after the recent news updates? I have an investment holding here but trade it with spread bets. My repeated experience is to take out a SB too early mid-drop which has meant holding on to SB losses (sometimes for months) before eventually exiting at a profit as happened last month. Am looking for another entry point now but trying to time it better this time.
rivaldo: Excellent news re PTRO's entering into a much expanded Framework Agreement with "a large Asian telco group with about 230 million subscribers". Not only substantially more ($500.000 per annum) revenue in future years, but lots more highly valued recurring income and also a very positive validation of PTRO's services and their quality: Https://uk.advfn.com/stock-market/london/pelatro-PTRO/share-news/Pelatro-PLC-Large-Asian-Telco-Group-Enters-Framewo/84996196 "We will be able to sell many new products and services to them during this period and Change Requests, which have been repeating in nature, will become recurring revenues."
rivaldo: Cheers - good to see EK buying in heavily here. Here's a direct link: Https://masterinvestor.co.uk/evil-diaries/evil-knievil-taking-the-plunge-with-pelatro/ "Nobody knows what the advertising revenue will be but on a three-year view $15m p.a. is posited as possible. If so the profits thereby generated will be massive – perhaps as much as $10m p.a. This contrasts with the current capitalisation of PTRO of c. $28m at a share price of 53p. TNAV is perhaps a few million USD. The managers have been successful before and I therefore think it is wise to back them now. I bought 300,000 shares at 60p last week but quite accept that the price can retreat a bit. If so, I do not mind since this stock is for the patient. (If PTRO fails there will be very little left.) I do not know what the target price should be but by end June, say, it should be smartly higher and on a three-year view we can get anywhere."
Pelatro share price data is direct from the London Stock Exchange
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