New Risk • Oct 15
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 55% This is considered a major 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 Share price has been highly volatile over the past 3 months (18% average weekly change). Earnings have declined by 35% per year over the past 5 years. Shareholders have been substantially diluted in the past year (55% increase in shares outstanding). Market cap is less than US$10m (UK£7.10m market cap, or US$8.62m). Minor Risk Less than 1 year of cash runway based on current free cash flow (-US$2.5m). Reported Earnings • Sep 25
First half 2023 earnings released: US$0.017 loss per share (vs US$0.032 loss in 1H 2022) First half 2023 results: US$0.017 loss per share (improved from US$0.032 loss in 1H 2022). Revenue: US$4.42m (up 56% from 1H 2022). Net loss: US$2.85m (loss narrowed 31% from 1H 2022). Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 8.3% growth forecast for the Software industry in the United Kingdom. New Risk • Aug 20
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of British stocks, typically moving 11% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings have declined by 38% per year over the past 5 years. Minor Risks Less than 1 year of cash runway based on current free cash flow (-US$4.1m). Shareholders have been diluted in the past year (21% increase in shares outstanding). Market cap is less than US$100m (UK£8.94m market cap, or US$11.4m). Duyuru • Jul 31
BrandShield Systems Plc, Annual General Meeting, Aug 23, 2023 BrandShield Systems Plc, Annual General Meeting, Aug 23, 2023, at 12:00 Coordinated Universal Time. Location: Edwin Coe LLP, 2 Stone Buildings, Lincoln's Inn, WC2A 3TH London United Kingdom New Risk • Jul 28
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 21% 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 Risk Earnings have declined by 38% per year over the past 5 years. Minor Risks Less than 1 year of cash runway based on current free cash flow (-US$4.1m). Share price has been volatile over the past 3 months (11% average weekly change). Shareholders have been diluted in the past year (21% increase in shares outstanding). Market cap is less than US$100m (UK£10.4m market cap, or US$13.4m). New Risk • Jul 06
New major risk - Revenue and earnings growth Earnings have declined by 38% 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 Risk Earnings have declined by 38% per year over the past 5 years. Minor Risks Less than 1 year of cash runway based on current free cash flow (-US$4.1m). Share price has been volatile over the past 3 months (11% average weekly change). Market cap is less than US$100m (UK£10.4m market cap, or US$13.2m). Reported Earnings • Jul 04
Full year 2022 earnings released: US$0.04 loss per share (vs US$0.054 loss in FY 2021) Full year 2022 results: US$0.04 loss per share. Revenue: US$6.40m (up 55% from FY 2021). Net loss: US$7.34m (loss widened 16% from FY 2021). Revenue is forecast to grow 32% p.a. on average during the next 2 years, compared to a 8.0% growth forecast for the Software industry in the United Kingdom. Board Change • Nov 16
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, 1 was an independent director. The company's board is composed of: 5 new directors. 1 experienced director. No highly experienced directors. 2 independent directors (4 non-independent directors). Independent Non-Executive Director John Taylor is the most experienced director on the board, commencing their role in 2019. Independent Non-Executive Chairman Uzi Moscovich 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. Lack of experienced directors. Reported Earnings • Sep 30
First half 2022 earnings released: US$0.032 loss per share (vs US$0.015 loss in 1H 2021) First half 2022 results: US$0.032 loss per share (further deteriorated from US$0.015 loss in 1H 2021). Revenue: US$2.83m (up 60% from 1H 2021). Net loss: US$4.11m (loss widened 133% from 1H 2021). Reported Earnings • Jul 01
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: US$0.05 loss per share. Revenue: US$4.13m (up 59% from FY 2020). Net loss: US$6.30m (loss widened 91% from FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 61%. Over the next year, revenue is forecast to grow 65%, compared to a 22% growth forecast for the industry in the United Kingdom. Board Change • Apr 27
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, 1 was an independent director. The company's board is composed of: 5 new directors. 1 experienced director. No highly experienced directors. 2 independent directors (4 non-independent directors). Independent Non-Executive Director John Taylor is the most experienced director on the board, commencing their role in 2019. Independent Non-Executive Chairman Uzi Moscovici 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. Lack of experienced directors. Reported Earnings • Sep 15
First half 2021 earnings released: US$0.015 loss per share (vs US$2.36 loss in 1H 2020) The company reported a soft first half result with increased losses and weaker control over costs, although revenues improved. First half 2021 results: Revenue: US$1.77m (up 17% from 1H 2020). Net loss: US$1.77m (loss widened 219% from 1H 2020). Executive Departure • Aug 04
Independent Non-Executive Director Zarthustra Amrolia has left the company On the 27th of July, Zarthustra Amrolia's tenure as Independent Non-Executive Director ended. As of March 2021, Zarthustra still personally held 1.35m shares (UK£293k worth at the time). Zarthustra is the only executive to leave the company over the last 12 months. Board Change • Jul 30
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent Non-Executive Director John Taylor was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Jun 24
Full year 2020 earnings released The company reported a mediocre full year result with increased losses and weaker control over costs, although revenues improved. Full year 2020 results: Revenue: US$2.59m (up 46% from FY 2019). Net loss: US$3.30m (loss widened 120% from FY 2019). Duyuru • Mar 18
BrandShield Systems plc Launches Image Recognition and Ocr Technologies BrandShield Systems plc announced that it has launched cutting edge Image Recognition and OCR technologies for the detection of impersonation, phishing fraud and counterfeits on Social Media platforms. This announcement follows the launch of Image Recognition and OCR in January 2021 for the detection of abuse across e-Commerce marketplaces, and reinforces the Company's commitment to the continued development of its brand protection and online threat hunting technology. BrandShield has been developing image recognition and optical character recognition to add to its arsenal of already market-leading technologies to further enhance the Company's ability to identify and neutralise actual and potential threats to some of the leading global companies in the world. BrandShield's image recognition technology detects images similar to, or identical to, other images, such as those of fake users on social media, images used by cybercriminals on phishing or fraud posts and images copyrighted by the Company's customers. The technology is able to link these images to global networks of fraudulent activity across all the leading social media platforms. Once a suspected phishing or impersonation is identified the technology will link it to other fraudulent uses, and then process their collective takedowns at the click of a button. BrandShield enhanced technology is a game changer in the detection of potential fraud networks performing scams across social media platforms and increases the Company's capabilities in the fight against the growing threat of phishing and fraud originated from these platforms. BrandShield's OCR capability for brand protection on social media platforms allows text to be interrogated that lies within images on fraudulent social media posts or pages. This adds a further layer of abuse identification for use against those fraudsters that attempt to hide brand names and product descriptions within an image of posts or profile photos rather than in separate, purely textual fields. Is New 90 Day High Low • Mar 05
New 90-day low: UK£0.22 The company is down 3.0% from its price of UK£0.23 on 04 December 2020. The British market is up 4.0% 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. Duyuru • Jan 20
BrandShield Systems plc Launches Further Technologies as Part of Its Subscription Solution BrandShield Systems Plc announces that it has launched further technologies as part of its subscription solution. These technologies are being deployed in support of existing and new clients. BrandShield has been developing image recognition and optical character recognition ("OCR") to its arsenal of already market-leading technologies to further enhance the Company's ability to identify and neutralise actual and potential threats to some of the leading global companies in the world. These technologies are now being deployed. BrandShield's image recognition technology detects images similar to or identical to those copyrighted by the Company's customers. The technology is able to link these images to global networks of fraudulent activity across hundreds of e-commerce marketplaces. Once a single infringement is identified the technology will link it to other fraudulent uses on the web, and then process their collective takedowns at the click of a button. Traditionally, image infringement identification involves the manual review of thousands of individual listings across platforms. BrandShield's enhanced technology reduces this process exponentially.
Fraudsters and counterfeiters behind networks of illegal activity seek to hide their links through the use of multiple seller accounts, differentiated store names and international ISPs and domain hosting providers. However, the ability to target these networks through image recognition is a significant and game-changing development.
BrandShield's new OCR capability allows text to be interrogated that lies within images on fraudulent listings on e-commerce marketplaces. This adds a further layer of abuse identification for use against those fraudsters that attempt to hide brand names and product descriptions within an image of sale items rather than in separate, purely textual fields. Duyuru • Dec 30
BrandShield Systems Plc, Annual General Meeting, Jan 21, 2021 BrandShield Systems Plc, Annual General Meeting, Jan 21, 2021, at 12:00 Coordinated Universal Time. Location: Central Working, Eccleston Yards 25 Eccleston Place London, United Kingdom