React Share Discussion Threads

[nico115] 06/2/2024 11:57

Looks a boring hood to me .In this raging bear market i will look to buy at 1.2p ..if I miss it so be it but needs to be cheaper to buy for me . Good luck ,you normally do well

[nico115] 06/2/2024 11:56

They only bought back what they sold Seem to be trading it ?

[rivaldo] 06/2/2024 11:35

There's £1.8m of depreciation and amortisation, presumably included in admin. expenses rather than cost of sales.

Cash generated from operations was £2.44m.

You can see why they want investors to concentrate on cash flows/EBITDA....

[yump] 06/2/2024 11:14

19,582 revenue
13,671 Cost of sales
5,239 gross profit
(4,988) admin
(131)Acquisition and restructuring income/costs included in
administrative expenses
251 operating profit

So where is the amortisation ?

Is that just 251 from 19mln ?!

[rivaldo] 06/2/2024 11:09

The "true" historic adjusted EPS as such is 0.19p EPS (see Note 3), and this is the P/E used by Singer (no analyst would use for their financials an EPS figure based on EBITDA).

This is not so different from the EPS figure quoted by REAT anyway of 0.21p based on adjusted EBITDA, which I agree is somewhat odd, although I can see the logic in that they're trying to get investors to concentrate on cash flows which are certainly improving and were impressive last year.

Group overheads rose by 22% like for like - Laddersfree is included for a full year rather than just 5 months, so the overall higher figure is misleading. Still quite a lot, but perhaps understandable given the rises in fuel costs, wages etc.

[yump] 06/2/2024 10:57

I don’t think Singer’s pe is comparable with “normal” pe’s, as they appear to be using ebitda and that is cheating really.

I was expecting heavy gearing to increases in revenue, but admin costs rose 30%.

The accounts are very unclear. Admin costs appear to wipe out gross profit, but then they add back amortisation. So is amortisation included in admin costs? That would be weird accounting.

9mln is a huge pile of goodwill and intangibles, which are amortised “just” as an accounting entry in theory, which keeps the reported profit very low.

Fortunately, there isn’t much depreciation, so the issue of pretending that doesn’t matter, even though equipment will need renewing, isn’t present.

[jeanesy] 06/2/2024 10:23

Shareprice is stuck in the doldrums. The only way this will rise is if it is tipped . Far too cheap but likely to stay so in these markets sadly :(

[rivaldo] 06/2/2024 10:09

Singer have a 1.9p target price. They have REAT on a current year P/E of just 9.8, falling to 8.5 next year.

They now forecast £2.5m adjusted EBITDA to this September, nicely up from last year, but reduced from prior forecasts by some £300-£400k due to additional investment in personnel, systems etc.

EBITDA is forecast to rise again at Sept'25 to £2.8m adj. EBITDA and then £3.1m the next year.

They say funding capacity could support a furher 26% of EPS increases via more acquisitions in 2024.

Incidentally, last night's holdings RNS hasn't been mentioned here - Harwood Capital/Oryx have been buying and raised their holding to 9.04%, or 96.5m shares (in November they had 92m shares):

[gipps] 06/2/2024 09:01

Well hopefully one day they will get back up to 3p these results certainly steady one's nerves

[vikingben] 06/2/2024 08:58

Brokers are still wanting more shares, can sell my entire holding @ 1.376p which would show as a buy.
Can get a quote to buy a maximum 2.5 million @ 1.395p
So a very tight real spread, with the spread having ticked back down to 1.35-1.4 suggest that a large sell will be posted later??

[dave4545] 06/2/2024 08:53

Nobody wants value stocks now.

99.9% of people are now day traders so stocks like this do not represent a chance of buying and selling same day for a profit.

Agree the results are excellent.

market has been destroyed by day traders

[jeanesy] 06/2/2024 08:09

very reassuring update. Mooted response in the shareprice so far

[microscope] 06/2/2024 07:54

Very pleased. 87pc recurring revenues and multi year contracts already underpin the year to September 2024. Free cash flow of over 2 million means, as they state, their current plans to September 2024 are fully financed, and digitalisation offers exciting future growth opportunities.

[rivaldo] 06/2/2024 07:33

Yep, the results are very reassuring:

- 0.2p adjusted EPS
- £2.3m adjusted EBITDA is ahead of Singer's £2.2m forecast
- strong momentum since the year end with record trading this year
- £1.64m net cash at the year end, again ahead of Singer's forecast
- £2.44m operating cash inflows in the year
- no need to raise further funds, as current cash enough to pay for not only deferred consideration, but also investments in systems and even further bolt-on acquisitions in the pipeline
- a whopping 87% recurring revenues
- gross margins still increasing, to 27% (from 24%)
- multiple contract wins which will benefit this year onwards

[davemac3] 06/2/2024 07:05

Nice update

[yump] 03/2/2024 13:02

At the moment all small companies will be fundraising because there isn’t any other reason for the drops.

Apart from the dire market, world affairs, worry, good news and reports being greeted with no buying, new government this year, my souffle collapsing yesterday…. Etc

[microscope] 03/2/2024 12:36

If they're after a fundraise (deramping standard bb rumour trash imho), but if they are and it proves true, fair enough, imho it'll be for an acquisition and more growth for a company with a successful previous acquisition that has bolstered prospects and results, so a proven track record.

Looking forward to results and update myself. Here for long term growth, so an acquisition would fit my aims anyway.

[superhoop2] 03/2/2024 10:06

Whatever happens I don't want to see any more shares issued ... this, I believe, is holding back the share price and will continue to do so. Also, if an acquisition is in the pipeline then give current shareholders a chance to purchase and not just the Institutions as previously!

[jeanesy] 02/2/2024 18:24

I have to agree with you gbenson. I would have thought that the shares if anything would be bought ahead of the results. If the earlier rumours created by some on here are true about a possible fundraise then i will not be a happy bunny !

[gbenson1] 02/2/2024 15:35

Totally agree rivaldo, however the sell trades come at odds to the update, I guess we'll find out on Tuesday!

[rivaldo] 02/2/2024 15:26

Firstly, we already know the results from the year end trading update, i.e that trading was "strong" with at least £2.2m EBITDA, up 130% on the prior year.

I calculate on Singer's figures that this will likely equate to around 0.14p+ EPS, i.e a historic P/E in single figures, let alone allowing for any growth in the current year.

Secondly, REAT have also confirmed that "The pipeline for the new year is healthy and we are seeing strong demand for all of our divisions".

Thirdly, if there was anything materially amiss REAT would be obliged to say so asap - i.e in today's RNS.

[gbenson1] 02/2/2024 11:12

The recent share trades don't bode well for the results due next Tuesday, wonder if someone's heard something!!

[jeanesy] 31/1/2024 19:32

is that a 2 million buy reported late ?

[jeanesy] 31/1/2024 12:51

quite a few selling today. Price getting cheaper closer to the update

[jeanesy] 30/1/2024 18:27

very odd UT at the close . I thought the buy price was 1.34. Someone paid 1.49. I think they got ripped off ?!