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
  -0.25 -0.71% 35.00 95,021 13:00:02
Bid Price Offer Price High Price Low Price Open Price
34.00 36.00 35.25 35.00 35.25
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 6.67 1.01 2.50 14.0 13
Last Trade Time Trade Type Trade Size Trade Price Currency
16:26:50 O 50,000 34.00 GBX

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Date Time Title Posts
21/9/202016:33Pelatro PLC (with charts)142
07/7/202010:31Pelatro PLC349

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Pelatro (PTRO) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2020-09-22 15:26:5134.0050,00017,000.00O
2020-09-22 15:24:1135.203,0001,056.00O
2020-09-22 12:12:0435.205,6561,990.91O
2020-09-22 10:36:3434.8812,0004,185.00O
2020-09-22 09:58:0035.3920,0007,078.34O
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Pelatro (PTRO) Top Chat Posts

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 35.25p.
Pelatro Plc has a 4 week average price of 35p and a 12 week average price of 35p.
The 1 year high share price is 78p 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 131,700 shares. The market capitalisation of Pelatro Plc is £12,961,350.85.
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: At the current 50p you must have bought at around the all-time highs at almost 88p.... With a contract win/wins and an upgrade or two the share price should be back there pronto imo.
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!
albert89: But then why is the share price going down...especially today?
bookbroker: Sharw - post 180, this is post 46, you been smoking that wackybacky, $270K, why do they need cars that cost a hundred grand each, is that for show, better off buying them a Rolex Submariner each, at least they go up in value. It’s pathetic, freeloaders, that is why the share price is tanking again!
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.
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?
Pelatro share price data is direct from the London Stock Exchange
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