New Risk • Mar 10
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 36% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.8x net interest cover). Earnings have declined by 25% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (18% increase in shares outstanding). Reported Earnings • Mar 06
Full year 2025 earnings released: EPS: UK£0.026 (vs UK£0.046 loss in FY 2024) Full year 2025 results: EPS: UK£0.026 (up from UK£0.046 loss in FY 2024). Revenue: UK£162.1m (down 2.5% from FY 2024). Net income: UK£2.19m (up UK£6.06m from FY 2024). Profit margin: 1.4% (up from net loss in FY 2024). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Announcement • Mar 06
RM plc, Annual General Meeting, May 07, 2026 RM plc, Annual General Meeting, May 07, 2026. Announcement • Feb 25
RM plc to Report Fiscal Year 2025 Results on Mar 05, 2026 RM plc announced that they will report fiscal year 2025 results at 7:00 AM, Coordinated Universal Time on Mar 05, 2026 New Risk • Feb 01
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended May 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.8x net interest cover). Earnings have declined by 46% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported May 2025 fiscal period end). Shareholders have been diluted in the past year (18% increase in shares outstanding). Price Target Changed • Nov 04
Price target increased by 31% to UK£1.84 Up from UK£1.40, the current price target is provided by 1 analyst. New target price is 63% above last closing price of UK£1.13. Stock is up 43% over the past year. The company posted a net loss per share of UK£0.046 last year. New Risk • Oct 21
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 18% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.4x net interest cover). Earnings have declined by 46% per year over the past 5 years. Minor Risk Shareholders have been diluted in the past year (18% increase in shares outstanding). Reported Earnings • Jul 17
First half 2025 earnings released: UK£0.04 loss per share (vs UK£0.079 loss in 1H 2024) First half 2025 results: UK£0.04 loss per share (improved from UK£0.079 loss in 1H 2024). Revenue: UK£73.2m (down 6.5% from 1H 2024). Net loss: UK£3.32m (loss narrowed 49% from 1H 2024). Revenue is forecast to grow 7.8% p.a. on average during the next 2 years, compared to a 8.7% growth forecast for the Software industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. New Risk • Jun 24
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 8.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.0x net interest cover). Earnings have declined by 71% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.5% average weekly change). Market cap is less than US$100m (UK£68.3m market cap, or US$92.4m). Announcement • Jun 05
RM plc Announces Launch of End-To-End Digital Accreditation Platform RM plc announced the official launch of RM Ava, its adaptive virtual accreditation platform (formerly known as the Global Accreditation Platform), in a major step forward for the Company's digital assessment-focused growth strategy. This follows a PS6 million investment during fiscal year24 into the platform's development, with a similar level of investment being made in fiscal year25. RM Ava brings together the Company's existing tools for assessment onto one single-sign-on cloud-based platform, designed to enable the transition from paper to digital learning and examinations and provide solutions to its customers' assessment needs. This will be a single platform that supports the full assessment lifecycle modularly, delivering an end-to-end experience from content creation and secure online learner testing, through to optional AI-driven marking and feedback. This addresses a key customer need, as RM's research has shown that access to a single platform that spans the full assessment lifecycle is key to adoption for many customers. The expanded feature-set of the platform will also allow RM to extend its product offering into formative in-course assessments and open new customer opportunities within further education and professional qualifications. The platform is built to scale rapidly to support a global customer base. It is designed to enable ongoing innovation, allowing new features to be delivered to customers more easily as needs and technologies evolve. The launch of RM Ava is a strategic milestone for RM and is in line with the Company's strategy to deliver profitable growth, which in recent years has been focused on the expansion of digital assessment and the development of this platform. The transition to digital assessment from paper provides the opportunity to drive global growth alongside expanded margins. In 2024, RM won the two largest contracts in its 50-year history with the International Baccalaureate (IB) and Cambridge University Press and Assessment to deliver their transition to fully digitalised assessments. Recent Insider Transactions • May 25
CEO & Director recently bought UK£58k worth of stock On the 19th of May, Mark Cook bought around 58k shares on-market at roughly UK£0.99 per share. This transaction increased Mark's direct individual holding by 2x at the time of the trade. This was the largest purchase by an insider in the last 3 months. Mark has been a buyer over the last 12 months, purchasing a net total of UK£61k worth in shares. Announcement • Mar 19
RM plc, Annual General Meeting, May 07, 2025 RM plc, Annual General Meeting, May 07, 2025. Reported Earnings • Mar 18
Full year 2024 earnings released: UK£0.047 loss per share (vs UK£0.52 loss in FY 2023) Full year 2024 results: UK£0.047 loss per share (improved from UK£0.52 loss in FY 2023). Revenue: UK£166.1m (down 15% from FY 2023). Net loss: UK£3.87m (loss narrowed 91% from FY 2023). Revenue is forecast to grow 4.8% p.a. on average during the next 2 years, compared to a 8.1% growth forecast for the Software industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Announcement • Mar 12
RM plc to Report Fiscal Year 2024 Results on Mar 18, 2025 RM plc announced that they will report fiscal year 2024 results at 8:00 AM, GMT Standard Time on Mar 18, 2025 New Risk • Feb 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 7.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Earnings have declined by 77% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported May 2024 fiscal period end). Share price has been volatile over the past 3 months (7.3% average weekly change). New Risk • Feb 01
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended May 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Earnings have declined by 77% per year over the past 5 years. Minor Risk Latest financial reports are more than 6 months old (reported May 2024 fiscal period end). Announcement • Nov 07
RM plc SHS PAR 0.02285714 to Be Deleted from OTC Equity RM plc SHS PAR 0.02285714 (United Kingdom) will be deleted from OTC Equity effective November 06, 2024, due to Inactive Security. New Risk • Jul 26
New major risk - Revenue and earnings growth Earnings have declined by 77% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Earnings have declined by 77% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.4% average weekly change). Market cap is less than US$100m (UK£69.3m market cap, or US$89.2m). Reported Earnings • Jul 18
First half 2024 earnings released: UK£0.081 loss per share (vs UK£0.025 loss in 1H 2023) First half 2024 results: UK£0.081 loss per share (further deteriorated from UK£0.025 loss in 1H 2023). Revenue: UK£79.2m (down 9.6% from 1H 2023). Net loss: UK£6.79m (loss widened 221% from 1H 2023). Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Announcement • Jul 04
RM plc to Report First Half, 2024 Results on Jul 16, 2024 RM plc announced that they will report first half, 2024 results on Jul 16, 2024 New Risk • May 03
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Share price has been volatile over the past 3 months (7.2% average weekly change). Market cap is less than US$100m (UK£70.1m market cap, or US$88.0m). Reported Earnings • Mar 14
Full year 2023 earnings released: UK£0.52 loss per share (vs UK£0.19 loss in FY 2022) Full year 2023 results: UK£0.52 loss per share (further deteriorated from UK£0.19 loss in FY 2022). Revenue: UK£195.2m (down 8.9% from FY 2022). Net loss: UK£43.3m (loss widened 169% from FY 2022). Revenue is forecast to grow 1.1% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Software industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 80 percentage points per year, which is a significant difference in performance. Announcement • Mar 14
RM plc, Annual General Meeting, May 09, 2024 RM plc, Annual General Meeting, May 09, 2024. Announcement • Mar 13
RM plc to Report Fiscal Year 2023 Results on Mar 14, 2024 RM plc announced that they will report fiscal year 2023 results on Mar 14, 2024 Board Change • Feb 25
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 7 new directors. 1 experienced director. No highly experienced directors. 2 independent directors (5 non-independent directors). Non-Executive Chair Helen Stevenson is the most experienced director on the board, commencing their role in 2022. Senior Independent Director Chris Humphrey was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Announcement • Dec 14
RM plc Provides Earnings Guidance for the Year Ended 30 November 2023 RM plc provided earnings guidance for the year ended 30 November 2023. For the year, the Company anticipated that its headline results will show revenue from continuing operations of c.£196 million (FY22: £214.2 million), including c.£19 million from Consortium (FY22: £33.6 million). Announcement • Nov 25
RM plc Announces Closure of the Consortium Business Part of the RM Resources Division RM plc announced in line with its strategy to be a leading global educational technology, digital learning and assessment solution provider, that the Board has taken the decision to close its loss-making Consortium business, part of the RM Resources division. As announced by Mark Cook, CEO, at the half year results in August, focus in the second half has been on the development of a strategic roadmap for RM to create a simpler, more profitable business. This included a detailed review of RM’s portfolio to identify core areas of the business which were best placed to capitalise on the substantial EdTech opportunities. Full details of its strategic roadmap will be provided as part of RM’s full year results announcement in the New Year. The Consortium business, the provider of education supplies and resources to schools, has experienced an extended period of underperformance following the negative impact of the rollout of a new ecommerce platform in 2022. Company announced that it has taken the difficult decision to close this business from the end of December. The decision to close Consortium is in line with the future strategic direction for the Company and has been made with the full cooperation and support of its lenders. The decision will also enable RM Resources management to focus on its successful TTS business. Announcement • Oct 10
RM plc Announces Executive Changes RM plc announced the appointments of Carolyn Dawson OBE and Jamie Murray Wells OBE as Non-executive Directors with effect from 1 November 2023. Carolyn brings significant experience in the technology and education sectors. She is currently CEO of the Founders Forum Group, the business services group for entrepreneurs, supporting businesses at the forefront of the tech ecosystem. Prior to this role she spent over 20 years at Informa Group plc, the international events, digital services and academic knowledge group, working in a range of leadership roles, including founding London Tech Week and most recently as President, Verticals and ESG, Informa Tech and on the Informa Tech Executive Board. Jamie brings leading digital product expertise to the Board, having worked since 2013 for Google, where he has held roles defining new platforms and ecosystems, including as Head of Digital Platform Experiences and Head of Extended Reality (XR) Platform Enablement. Prior to joining Google, Jamie founded and led Glasses Direct, a digital-led retail business, before taking it through a private equity transaction with Cipio Partners. He recently served as a non-executive director of DD Group, the wholesale supplier to the dental sector, helping evolve the online proposition and steer the business through two private equity backed deals. In addition, Patrick Martell, Senior Independent Director and Remuneration Committee Chair, and Charles Bligh, Non-executive Director, have notified the Board of their intention to step down with effect from 31 December and 31stOctober 2023 respectively. Upon Patrick's departure at the end of the calendar year, Chris Humphrey, Non-executive Director, will take over as Senior Independent Director. Additionally, Chris will also take over as Chair of the Remuneration Committee effective immediately. Following the previously announced departure of Vicky Griffiths, Non-executive Director, from the Board on 30 September 2023, Jamie will take over her role as Chair of the ESG Committee. Reported Earnings • Aug 10
First half 2023 earnings released: UK£0.041 loss per share (vs UK£0.071 loss in 1H 2022) First half 2023 results: UK£0.041 loss per share (improved from UK£0.071 loss in 1H 2022). Revenue: UK£87.6m (down 13% from 1H 2022). Net loss: UK£3.46m (loss narrowed 41% from 1H 2022). Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 8.4% growth forecast for the Software industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. New Risk • Aug 09
New major risk - Revenue and earnings growth Earnings have declined by 41% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 41% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.4% average weekly change). Market cap is less than US$100m (UK£46.6m market cap, or US$59.3m). Announcement • Jul 08
RM plc Announces Board changes RM plc announced the appointment of Christopher Humphrey as a Non-Executive Director with effect from 7th July 2023. Christopher will become a member of all Board Committees on appointment. Christopher brings extensive technology and software expertise to the RM Board. He is an experienced Non-Executive Director and is currently Chair of AIM-listed Eckoh plc, a position he has held since September 2017. He also served as Senior Independent Director and Audit Chair at AVEVA Group plc from 2016 to 2023, was Senior Independent Director at Videndum plc from 2013 until 2022 and was a Non-Executive Director at SDL plc from 2016 to 2023. Christopher has had a number of leadership roles during his career, including the position of Group Chief Executive Officer of Anite plc from 2008 to 2015, having joined the company as Group Finance Director in 2003. In addition, Vicky Griffiths, Non-Executive Director, has notified the Board of her intention to step down from the Board with effect from 6th October 2023 due to other commitments. Announcement • Jul 06
RM plc to Report First Half, 2023 Results on Aug 09, 2023 RM plc announced that they will report first half, 2023 results on Aug 09, 2023 Announcement • May 24
Rm plc Announces Executive Changes RM plc announced that Simon Goodwin has been appointed as Chief Financial Officer. Building on over 15 years of experience in finance leadership roles, Simon will be central to the Group’s transformation strategy and helping to drive value across the business. Simon is joining RM from MTI Technology where, as Group CFO, he has been responsible for its finance and administrative functions with operations in the UK, France and Germany. He has also held senior finance roles in Getronics, the Dutch ICT business, and Sopra Steria, the digital services and software development consultancy. After qualifying as an accountant, Simon worked in a number of finance and commercial roles for Warner Bros and Marks and Spencer PLC. Simon will join the Company and the Board on 29 August 2023, and he will replace Emmanuel Walter, Interim CFO, who will be leaving the company later in the year. Reported Earnings • Mar 30
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: UK£0.19 loss per share (down from UK£0.05 profit in FY 2021). Revenue: UK£214.2m (up 1.6% from FY 2021). Net loss: UK£16.1m (down 484% from profit in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.0%. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the Software industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 85 percentage points per year, which is a significant difference in performance. Announcement • Jan 12
RM plc Announces Chief Executive Officer Changes RM plc announced the appointment of Mark Cook as CEO, effective from 16 January 2023. Neil Martin the current CEO will remain an Executive Director of RM to ensure an orderly handover until the preliminary results have been released for the financial year ended 30 November 2022. With a background in business process and technology, Mark brings extensive experience in business transformation and creating shareholder value. After qualifying as an accountant and working in several finance roles, Mark moved into consulting, joining Xansa PLC, where he led transformation and systems implementation programmes for clients including the BBC and Boots. Following this, Mark joined Getronics Group in 2010 taking the business from public ownership under KPN Telecom NV into private ownership under Aurelius Investments. As Group CEO, Mark and his team led the growth of Getronics, having refocused the portfolio and created a global technology digital services business, prior to its sale to a U.S. investment consortium. In 2019, Mark joined Capita plc as CEO for the People Solutions Division and latterly the Technology Solutions Division, a £650 million revenue business, spanning Capita’s cloud, connectivity and resourcing solutions for the public and commercial sector. Mark is currently non-executive Chairman of Searchlight Consulting. Board Change • Jan 04
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Vicky Griffiths was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Price Target Changed • Nov 16
Price target decreased to UK£0.53 Down from UK£1.03, the current price target is an average from 2 analysts. New target price is 39% above last closing price of UK£0.38. Stock is down 80% over the past year. The company is forecast to post a net loss per share of UK£0.19 compared to earnings per share of UK£0.05 last year. Reported Earnings • Aug 23
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: UK£0.05 (down from UK£0.092 in FY 2020). Revenue: UK£210.9m (up 12% from FY 2020). Net income: UK£4.19m (down 45% from FY 2020). Profit margin: 2.0% (down from 4.0% in FY 2020). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 57%. Over the next year, revenue is forecast to grow 3.2%, compared to a 21% growth forecast for the Software industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has fallen by 41% per year, which means it is performing significantly worse than earnings. Price Target Changed • Aug 23
Price target decreased to UK£2.03 Down from UK£2.63, the current price target is an average from 2 analysts. New target price is 282% above last closing price of UK£0.53. Stock is down 76% over the past year. The company is forecast to post earnings per share of UK£0.043 for next year compared to UK£0.05 last year. Valuation Update With 7 Day Price Move • Jun 08
Investor sentiment deteriorated over the past week After last week's 21% share price decline to UK£1.09, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 35x in the Software industry in the United Kingdom. Total loss to shareholders of 52% over the past three years. Valuation Update With 7 Day Price Move • May 19
Investor sentiment improved over the past week After last week's 16% share price gain to UK£1.49, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 33x in the Software industry in the United Kingdom. Total loss to shareholders of 33% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£2.97 per share. Price Target Changed • Apr 27
Price target decreased to UK£2.63 Down from UK£3.15, the current price target is provided by 1 analyst. New target price is 101% above last closing price of UK£1.31. Stock is down 44% over the past year. The company posted earnings per share of UK£0.05 last year. Board Change • Apr 27
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non-Executive Chair Helen Stevenson was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • Apr 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non-Executive Chair Helen Stevenson was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • Mar 21
Price target decreased to UK£2.63 Down from UK£3.38, the current price target is provided by 1 analyst. New target price is 77% above last closing price of UK£1.49. Stock is down 33% over the past year. The company is forecast to post earnings per share of UK£0.18 for next year compared to UK£0.05 last year. Upcoming Dividend • Mar 10
Upcoming dividend of UK£0.03 per share Eligible shareholders must have bought the stock before 17 March 2022. Payment date: 29 April 2022. Payout ratio is on the higher end at 93% but the company is not cash flow positive. Trailing yield: 3.8%. Lower than top quartile of British dividend payers (4.8%). Higher than average of industry peers (1.9%). Reported Earnings • Feb 16
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: UK£0.05 (down from UK£0.10 in FY 2020). Revenue: UK£210.9m (up 12% from FY 2020). Net income: UK£4.19m (down 50% from FY 2020). Profit margin: 2.0% (down from 4.5% in FY 2020). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 57%. Over the next year, revenue is forecast to grow 3.9%, compared to a 29% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Reported Earnings • Feb 16
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: UK£0.05 (down from UK£0.10 in FY 2020). Revenue: UK£210.9m (up 12% from FY 2020). Net income: UK£4.19m (down 50% from FY 2020). Profit margin: 2.0% (down from 4.5% in FY 2020). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 57%. Over the next year, revenue is forecast to grow 3.9%, compared to a 29% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Buying Opportunity • Feb 09
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be UK£2.18, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 3.6% per annum over the last 3 years. Earnings per share has declined by 17% per annum over the last 3 years. Upcoming Dividend • Jul 15
Upcoming dividend of UK£0.017 per share Eligible shareholders must have bought the stock before 22 July 2021. Payment date: 27 August 2021. Trailing yield: 1.4%. Lower than top quartile of British dividend payers (4.0%). In line with average of industry peers (1.5%). Reported Earnings • Jul 08
First half 2021 earnings released: EPS UK£0.057 (vs UK£0.018 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: UK£96.1m (up 21% from 1H 2020). Net income: UK£4.72m (up 213% from 1H 2020). Profit margin: 4.9% (up from 1.9% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Executive Departure • Apr 03
Executive Director has left the company On the 31st of March, David Brooks' tenure as Executive Director ended after less than a year in the role. As of December 2020, David personally held 440.88k shares (UK£968k worth at the time). A total of 3 executives have left over the last 12 months. Recent Insider Transactions Derivative • Mar 19
CEO & Executive Director exercised options and sold UK£53k worth of stock On the 16th of March, Neil Martin exercised options to acquire 24k shares at no cost and sold these for an average price of UK£2.15 per share. This trade did not impact their existing holding. For the year to November 2019, Neil's total compensation was 64% salary and 36% non-salary. Since June 2020, Neil's direct individual holding has increased from 115.42k shares to 200.07k. Company insiders have collectively sold UK£435k more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • Mar 12
Full year 2020 earnings released: EPS UK£0.10 (vs UK£0.23 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: UK£189.0m (down 16% from FY 2019). Net income: UK£8.41m (down 56% from FY 2019). Profit margin: 4.5% (down from 8.5% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Mar 12
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) missed analyst estimates by 3.8%. Over the next year, revenue is forecast to grow 2.9%, compared to a 9.4% growth forecast for the Software industry in the United Kingdom. Upcoming Dividend • Mar 11
Upcoming Dividend of UK£0.03 Per Share Will be paid on the 30th of April to those who are registered shareholders by the 18th of March. The trailing yield of 2.6% is below the top quartile of British dividend payers (4.5%), but it is higher than industry peers (1.8%). Recent Insider Transactions Derivative • Feb 18
CEO & Executive Director exercised options and sold UK£169k worth of stock On the 12th of February, David Brooks exercised options to acquire 82k shares at no cost and sold these for an average price of UK£2.05 per share. This trade did not impact their existing holding. For the year to November 2019, David's total compensation was 65% salary and 35% non-salary. Since June 2020, David has owned 440.88k shares directly. Company insiders have collectively sold UK£343k more than they bought, via options and on-market transactions in the last 12 months. Major Estimate Revision • Feb 16
Analysts update estimates The 2021 consensus revenue estimate increased from UK£188.4m to UK£194.5m. Earnings per share (EPS) estimate was lowered from UK£0.15 to UK£0.11 for the same period. Net income is expected to grow by 13% next year compared to 4.1% decline forecast for the Software industry in the United Kingdom. The consensus price target of UK£3.40 was unchanged from the last update. Share price is up 2.4% to UK£2.16 over the past week. Reported Earnings • Feb 10
Full year 2020 earnings released: EPS UK£0.10 (vs UK£0.23 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: UK£189.0m (down 16% from FY 2019). Net income: UK£8.41m (down 56% from FY 2019). Profit margin: 4.5% (down from 8.5% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Feb 10
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) missed analyst estimates by 3.8%. Over the next year, revenue is forecast to grow 2.9%, compared to a 7.1% growth forecast for the Software industry in the United Kingdom. Valuation Update With 7 Day Price Move • Dec 08
Market bids up stock over the past week After last week's 15% share price gain to UK£2.39, the stock is trading at a trailing P/E ratio of 14.3x, up from the previous P/E ratio of 12.4x. This compares to an average P/E of 43x in the Software industry in the United Kingdom. Total returns to shareholders over the past three years are 39%. Valuation Update With 7 Day Price Move • Dec 04
Market bids up stock over the past week After last week's 17% share price gain to UK£2.42, the stock is trading at a trailing P/E ratio of 14.5x, up from the previous P/E ratio of 12.3x. This compares to an average P/E of 39x in the Software industry in the United Kingdom. Total returns to shareholders over the past three years are 41%. Major Estimate Revision • Dec 04
Analysts increase EPS estimates to UK£0.10 The 2020 consensus revenue estimate increased from UK£173.6m to UK£184.9m. The earnings per share estimate also received an upgrade from UK£0.092 to UK£0.10 for the same period. Net income is expected to shrink by 23% next year compared to 7.3% decline forecast for the Software industry in the United Kingdom. The consensus price target increased from UK£3.38 to UK£3.40. Share price is up 17% to UK£2.42 over the past week. Is New 90 Day High Low • Nov 27
New 90-day high: UK£2.06 The company is up 10.0% from its price of UK£1.88 on 28 August 2020. The British market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is down 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£1.06 per share. Valuation Update With 7 Day Price Move • Nov 18
Market bids up stock over the past week After last week's 16% share price gain to UK£1.91, the stock is trading at a trailing P/E ratio of 11.4x, up from the previous P/E ratio of 9.8x. This compares to an average P/E of 33x in the Software industry in the United Kingdom. Total returns to shareholders over the past three years are 26%. Is New 90 Day High Low • Sep 19
New 90-day low: UK£1.82 The company is down 24% from its price of UK£2.40 on 19 June 2020. The British market is down 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£1.56 per share.