We have 2 reports for you today. Graham's is taking shape here, plus this one of course by me (Paul).
In case you haven't seen it, I did a Part 2 report last night, covering 5 more companies: XL Media, Lakehouse, Murgitroyd, Kalibrate Technologies, Advanced Oncotherapy, Blue Prism. That report is here.
We understand that readers prefer to have 1 report, with our work combined, but it causes all sorts of technical issues. I managed to destroy Graham's report last night, when editing it, but thankfully then managed to retrieve it. Therefore I decided it was safest to write my own, separate report.
(At the time of writing, I hold a long position in this share)
Capital markets day - I'm going along to this event at 2:30 pm today. The other weekend I did a trawl through the list of recent floats, and this company struck me as looking potentially interesting, hence why I picked up a bit of stock.
The product is innovative conference call software, based in the cloud. The company has moved into profit, although care is needed with the numbers, because it capitalises a fair bit of development spend. By my calculations it's really around breakeven right now.
What's interesting though is that organic growth has been consistently around 35% p.a., and gross margin is high at c.75%. So running a few numbers, you can easily arrive at rather exciting profits & cashflow a few years forwards. That's got to happen, because the current market cap of c.62m (At 152p per share) looks very expensive based on the historic numbers.
As with FreeAgent Holdings (LON:FREE) (another recent float that I bought at the same time, and for the same reasons), I've trialled the software myself. In both cases, the product is terrific, and very easy to use.
With LOOP, customer churn is actually negative - i.e. existing customers use the product more, and thereby generate enough revenue growth to more than offset customers who stop using the product.
Anyway, I'll report back tomorrow on how the capital markets day goes. I think it's important that newly floated companies get out there and talk to investors. This is necessary because liquidity in the shares has to be built from scratch. The way listings are done in the UK usually means…