This management team have now been in place for four years and frankly the results are underwhelming. Still losing money and promises of better to come in years ahead. The only beneficiaries over the last few years have been the well paid executives. Lets hope things start moving forward positively and then maybe the long suffering shareholders may see some benefit.
Results are solid without supporting a major growth story, sounds like costs are under control and business is stable and growing nonetheless. Integration of multiple technologies and new initiatives like MaaS sound positive. Although sounds like we will need to be patient to see a return to a double digit share price.
IMO there's more on the way. This news is not significant enough to account for last week's activity.
New CFO should be a good thing and indicates(to me at least) that there's some life left in this company rather than a sell-out when the share price is low.
Hopefully good news.Large volumes so likely that something's afoot. Despite the general protection against insider dealing, a number of individuals will know if a significant deal or similar has been achieved and they may just be getting in ahead of an official announcement.
It was great to see another new client in a new region but I'm concerned to see the firm borrowing £3-400k in high interest Loan notes. I can't believe this is in any way good value for shareholders. I'm especially concerned to see some of the directors are Lending the money!
This looks interesting. Some new business rather than retaining existing clients. Combines the IP from the acquired business with their existing technology. Hopefully a springboard for growth in this area and a good validation of the strategy.
A two-year contract deal sent shares in 21st Century Technology soaring. The firm provides passenger wifi, passenger counting and CCTV for transport firms.
21st Century has agreed a two-year extension on its contract with bus company Arriva, with the option of tacking on an extra year at the end, too, which would take the partnership through to February 2020. Shares accelerated 23.5 per cent, or 0.5p, to 2.6p.
All of today's news on this is a very good read and should enable some large trades to occur.
It is so important to be able to catch any assaults on public transport these days. Well done to C21.
Arriva UK Bus has a fleet size of 5,900 buses; 1,600 in London provide 17% of the capital's bus services and the remaining 4,300 providing vital regional bus services. The safety critical CCTV systems provided by 21st Century assist Arriva in protecting passengers, drivers and members of the public. Arriva UK Bus is part of the Arriva Group, owned by Deutsche Bahn, which has transport operations across 14 European countries. 21st Century's Fleet Systems team have been providers of on-board CCTV and related IT technologies to Arriva UK Bus since 2002 and have continued to maintain and support systems throughout the almost 15-year relationship. High levels of performance and reliability are maintained through 21track, an online web service and call-centre, coordinating a network of engineering teams working overnight in depots across the UK. .
Russ Singleton, Chief Executive Officer, said: "we are delighted that Arriva UK Bus has chosen 21st Century to continue to supply and support their important on-board CCTV and associated IT systems by extending this important Framework Agreement. We will continue to invest in the development of innovative technologies and back-office processes, as part of our drive to continuously improve system reliability and performance, at the same time as reduce whole life-cycle costs for all our customers".
The insurance industry reports it uncovered £1.2Bn in fraudulent whiplash claims last year as it continues to scrutinize these claims much more and clamp down on the ludicrous number that occur in the UK - way in excess of any other country.
A spokesman said that they are definitely having success, but as a result they are seeing many more 'slip and fall' claims (I think he called them) against local councils and supermarkets. He said that there needs to be much wider CCTV coverage in order to mitigate this,
Is this a new potential market for C21, or new growth in an existing market, perhaps?
I can't see councils trying to cover every last stretch of pavement, but supermarkets definitely cannot afford to start paying out a significant amount each year in bogus claims. I would think they will move quickly to mitigate any rising cost in that area and that means CCTV coverage according to the insurance business.
Opportunity knocks? Not C21's usual market or customers, but then their existing market segment haven't been working out too well have they? They need only land one big supermarket (of six or seven?) to have a major contract on their hands, gain two or three and it could be a game changer.
5o waw, "What I am confused about is are not the owners in a closed period until the results are announced. "
Results were announced on 25th May - not sure when the purchases took place that you refer to in your post of 25th April, or if they are PDMRs actually.
As it happens, the Market Abuse Regulation (MAR) are changing in this area with effect from July 3, 2016:
"Dealings by 'persons discharging managerial responsibilities' (PDMRs)
MAR will also introduce:
detailed disclosure obligations in relation to conducting transactions on own account by PDMRs and their closely associated persons; and
restrictions on PDMRs dealing during a closed period of 30 days prior to annual and interim results announcements (this is shorter than the two month period provided for under the AIM Rules and, unlike the AIM Rules definition, does not extend to other periods when the AIM company is in possession of unpublished price sensitive information)."
Despite 5 year contract renewal with First Bus ....
One thing for sure, security issues on public transport, ticketing etc aren't going away. Are the operators not spending (as suggested) or is someone else getting the contracts?
What value of contracts has accrued from the aquisition? I saw one of £600k, another for £200k, but probably missed some - difficult to tell which are directly down to the aquisition of RSL. I think it cost £1.3m, so it will take a few contracts of that size before profits from them pay back in full.
20% plus drop on this news, *might* be a good buying opportunity if things go better between now and the end of the year. The mention of cash on hand is a little worrying ... suggests survival issues, potentially.
Longer term, government looks ready to open the purse strings on projects like enlarging public transport. Will C21 be around and in a position to exploit what will definitely be a more favourable environment in a few months and will continue to be for many years to come?
Trading Statement 19 Aug 2016 07:00:05:
"As announced on 15 April 2016, trading during the beginning of the year was slower than anticipated due to lower volumes of new vehicle orders from UK bus operator customers. It was anticipated that the slow start to the year would be followed by a pick-up in trading in H2 although this is proving slower to materialise.
With the uncertainty associated with the First Bus contract renewal now removed, the Company can now direct more focus on a number of framework agreements, bids and tenders currently under negotiation, particularly in Fleet Systems which specialises in on-board systems and integrated systems in the Passenger Transport Authority and Local Authority markets.
As previously announced, performance in the Passenger Systems business is subject to a number of sensitivities; namely the timing of local authority spend and the adoption of ticketing technology. Whilst there remains a number of bids pending decision, the order intake in Passenger Systems has been well below expectations. Consequently the Board now anticipates that the Group's full year revenue will be lower than last year resulting in a significant loss for the full year ending 31 December 2016. As at 30 June 2016 the Company had approximately £1.2m net cash (unaudited).
In order to mitigate losses, a program to remove costs and accelerate the consolidation of operations, particularly in areas where there was duplication or overlap resulting from the acquisition of RSL Group in May last year, commenced in H1 and is continuing. As this exercise progresses the Board are considering all possible options with respect to the RSL business and will make further announcements as appropriate.
The Company expects to report its interim results for the six months to 30 June 2016 towards the end of September. "
Its now over two and a half years since the new management was appointed and changed the strategic direction of the Company. Since then the share price has more than halved, so the new strategy can hardly be called successful. Yet again it is the shareholders suffering whilst, no doubt, all the Directors are collecting their salaries and perks. Its about time the shareholders were put first.
Your observations align with mine. It's important that they don't lose any major customers this year and hopefully build on the new and expanded technologies they have acquired to enlarge their market.
The brave (and optimistic) may purchase now - I think the share price drop in recent months has been overdone. The CEO and FD have been sufficiently confident to have bought tranches of shares previously. If they buy now at this price I would be inclined to pile in. Otherwise, as I have said before, I'm in for the long haul and increasing stress levels.
I don't understand the attitude of the management at C21. The share price has been slipping for months and now, without any real information on trading in 2015, they issue a very negative RNS which drives the share price to an all time low. Am I missing something or is this just to create a buying opportunity for someone??
Only just noticed the RNS from 11 Jan which relates to Herbert Stuart Bottomley & his wife increasing their shareholding. I am reassured that someone with his credentials is investing in this stock - see the potted biography below (courtesy of Bloomberg):
Mr. Herbert Stuart Bottomley serves as a Consultant of Starfield Resources Inc. Mr. Bottomley worked initially as a stockbroker in the City of London and became a portfolio manager in 1972. He worked with the Target Group of Unit Trusts for the first 12 years, the last 4 under the ownership of Jacob Rothschild. In 1984, he joined Fidelity International in London, working for the ERISA group, focused on UK and European markets. Since leaving Fidelity, Mr. Bottomley has consulted for numerous private and public companies. He has been an Independent Director of Polar Star Mining Corporation since April 17, 2009. Mr. Bottomley serves as a Director at Verona Pharma Plc. Mr. Bottomley serves as a Non Executive Director of Isis Resources plc. He served as Non-Executive Director of African Consolidated Resources Plc from May 27, 2005 to May 29, 2014. Mr. Bottomley served as a Director of Centamin Plc (Centamin Egypt Plc) until February 2011. He served as a Director at Starfield Resources Inc. from January 19, 2007 to July 21, 2011.
Always positive to hear about wins...but only £300k relates to new business. What I don't know is how much of the £5m+ revenue they need to beat last year is recurring revenue but I imagine we're going to need 6 or 7 of that size contract to make a difference?
LONDON (Alliance News) - 21st Century Technology PLC said Tuesday it has won a contract for GBP600,000 to supply its thin-film transistor based passenger information display systems to an undisclosed UK local authority customer.
The contract includes an initial order of over 100 stretched thin-film transistor screens and associated software. The contract is the first won by its Passenger Information Systems division which was formed in April following its acquisition of RSL Group for GBP1.3 million.
The company expects follow-on orders for the installation and maintenance of the new systems in "due course."
Shares in 21st Century Technology were flat at 4.75 pence Tuesday morning
Good luck Eadwig. It's never wrong to take a profit.
For those who follow my posts you will know that I have held stock for a long time. This is the first management team for 21C that I find at all credible. It was vital to gain the support of the few big players that are under contract and they have done that.
I did top up last year but will hold on for a while. A good broker presentation once they have underpinned their aspirations with some additional technical development will hopefully push up the price this year and then I can take a further view.
On the good results today I found that I was able to sell @5.6p, a 25% profit in less than 3 months and my trading experience told me that I should do that, despite not having had time to look at the results in full.
I can't see any reason why the company shouldn't continue to improve, but given the small volumes traded and the fact that a loss was reported (though much improved), I anticipate that I shall be able to get back in at a lower price before the next trading statement. I doubt I shall get 4.45p again, but we shall see. Had I built a bigger position I would have retained a holding.
This transport sector still looks ripe for a large player to consolidate, or for a small player to do so if it can finance the M&A. C21 appear to have ambitions in that direction, so one must assume other players have too. This one definitely remains on my watch list.
My feeling chatting to the new management at the AGM and subsequently by phone is just that - they are trying to bring some innovation into a market place that's fragmented and not fully understood by those already competing in it.
So they can talk the talk but only time will tell. If these guys can't turn it around it's a dud. They have invested their own cash in the Company so they must feel reasonably confident.
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