Shares of companies take cues from the latest development, and they tend to move according to the impact of the development. Here we are discussing two AIM-listed stocks which have witnessed brisk trading recently based on some announcements made by the company. Blackbird PLC will showcase its platform in the IBC 2019, while Cloudbuy PLC has managed to reduce its operating loss by 30 per cent. Below is a comparative chart of the two stocks.
(Source: Thomson Reuters)
The AIM-listed Blackbird Plc (BIRD) in the United Kingdom, which was earlier known as Forbidden Technologies Plc, provides cloud-based creation, editing and publishing solution. The company’s platform and its applications are built on Blackbird’s flexible and video codec which are lightweight, and which works in combination with Google cloud. This results in a platform which helps its users to create content and enhance user’s experience with fast loading capabilities on multiple platforms while maintaining better accessibility.
The company is expected to present in the upcoming event at IBC 2019 (conference and exhibition in Amsterdam). The company will be presenting along with Google at the event. The company uses Google Cloud to provide excellent cloud video performance, which makes it the fastest video editing and sharing platform in the market. The content available ranges from live to non-live categories for clip creation and serve to multiple platforms, including the internet and social networking websites.
The USP of this technology is that it just needs a browser to run and with lesser bandwidth. This makes this technology ubiquitous and is easy to use. The company is focusing on creating solutions for various genres such a sports, news and entertainment for efficient publishing to multiple platforms through Google cloud, eliminating the need of actual download, thereby consuming less data.
The company recently released its notice of results. According to the notice, the company will announce its interim results on 9 September 2019 for the period ended 1H (six months) ended 30th June 2019.
Financial Highlights for FY18 period ended 31st December 2018
In the year ended FY18, the company’s revenue was recorded at £870,310 as against £758,835 in FY17, reflecting a surge of 15 per cent on YoY basis.
The company’s revenue for reporting purposes was recognised from sales invoices amounting to £960,606 which surged by 34 per cent from £714,903 in FY17. The company’s deferred revenue surged by 57 per cent to £230,361 in FY18 as against £146,389 in FY17. The company’s order book (contracts to be invoiced in short-term) surged by 40 per cent to £335,743 on YoY basis.
The company’s operating costs surged by 12 per cent to £2,738,515 in FY18 as against £2,452,158 in FY17. This rise in operating costs can be attributed to further investments made in North America such as higher consultation fees with respect to customer-facing, severance and marketing costs with respect to recreating the impact of the brand Blackbird.
The company’s operating expenses inclusive of capitalised expenditure surged by 11 per cent to £3,010,869 in FY18 as against £2,705,663 in FY17. The company’s Capex was recorded at £272,354 in FY18 as against £253,505 in FY17.
The company’s loss excluding interest, taxation, depreciation and amortisation was recorded at £1,993,284 in FY18 as against £1,844,436 in FY17. The company’s net loss was recorded at £2,574,618 in FY18 as against a loss of £2,336,000 in FY17. The company raised funds successfully amounting to £5,441,271 via equity in June 2018. The company has nil debt and cash balances of £5,032,087 as at 31st December 2018.
BIRD Share price performance
While writing (as on 22 August 2019, at 11:19 AM GMT), BIRD shares were trading at GBX 9.34 per share; up by 8.85 per cent as compared to the previous day closing price level. At the time of writing, the company’s M-cap (market capitalisation) was recorded at £25.43 million.
In the last year, BIRD shares have touched a new peak on 22 August 2019 and a bottom price level of GBX 5.02 (as on 13 September 2018). At the current trading level, as quoted in the price chart, its shares were trading at 0.1 per cent lower than the 52-week high price mark and 86.05 per cent higher than the 52-week low price mark.
While writing, the stock’s traded volume before the market close, was hovering around 533,144. Stock's average traded volume for 5 days was 368,640.80; 30 days- 217,221.30and 90 days – 288,933.07. The beta as on date of the company’ s stock was 0.28, which means it was less volatile in comparison with the index considered as the benchmark.
At the time of writing, the shares of the company were faring above the 30-days and 60-days simple moving averages, which depicts an uptrend from the current trading levels.
In the past 3 months, BIRD shares have delivered a positive return of 45.96 per cent. From the beginning of the year to till date, the company’s stock surged by 2.08 per cent. In the past year, the company’s stock has delivered a positive return of 64.90 per cent.
The stock’s RSI (Relative Strength Index) was recorded at 71.34, 82.82and 88.79for the 30-days, 14-days and 9-days respectively, while, the stock’s RSI was recorded at 97.77 (3-day).
The AIM-listed Cloudbuy PLC (CBUY) provides cloud-based software which brings buyers, product and services, and sellers on a single platform to trade in a safe and convenient manner. The buyers can analyse their purchases, product data, spending patterns, cost reduction. The company caters to startups, corporates and public sector bodies. The company also provides other services such as incorporation services, company secretary services, and filing annual returns, using its proprietary software platform. The platform can be used to extend solutions and creating new applications.
On 21st August 2019, the company announced results for the first half (H1) ended 30th June 2019.
Financial highlights for H1 FY19
The company has made significant progress with an increase in revenue from operations and a constant focus on optimising cash usage while cutting costs. The company’s revenue surged by 11 per cent to £538 thousand in H1 FY19 as against £485 thousand in H1 FY18. This rise can be attributed to revenue generated from PHBChoices. The company’s existing customer base of e-commerce continues to drive growth for the organisation. The company’s administrative expenses were exclusive of equity-based payments reduced by 15 per cent to £1,174 thousand in H1 FY19 as against £1,374 thousand in H1 FY18. Cost-cutting was quite evident during the reported period. The company’s operating loss exclusive of equity-based payments were reduced by 28 per cent to £652 thousand in H1 FY19 as against £924 thousand in H1 FY18. Overall, the company’s operating loss plunged by 30 per cent.
The company’s net cash outflow (operations) inclusive of Capex plunged by 23 per cent to £675 thousand in H1 FY19 as against £874 thousand in H1 FY18. The company was able to attract fresh investments from Roberto Sella during H1 FY19 worth £500 thousand. The company had cash balances of £1,031 thousand as at 30th June 2019. The company expects a rise in revenue stream from PHBChoices to drive growth in the short-term for the company.
The company is getting a positive response from public sector bodies in the United Kingdom with respect to its product suite. The company expects to reduce losses from operations while maintaining a check at cash outflows.
CBUY Share price performance
While writing (as on 22 August 2019, at 11:25 AM GMT), CBUY shares were trading at GBX 2.5 per share; up by 13.63 per cent as compared to the previous day closing price level. At the time of writing, the company’s M-cap (market capitalisation) was recorded at around £2.88 million.
In the last year, CBUY shares have touched a new peak of GBX 3.80 (as on 05 February 2019) and a bottom price level of GBX 1.80 (as on 04 July 2019). At the current trading level, as quoted in the price chart, its shares were trading at 34.21 per cent lower than the 52-week high price mark and 38.88 per cent higher than the 52-week low price mark.
While writing, the stock’s traded volume before the market close, was hovering around 125,000. Stock's average traded volume for 5 days was 265,515.80; 30 days- 124,137.67 and 90 days – 204,955.24. The beta as on date of the company’ s stock was negatively correlated in comparison with the index considered as the benchmark.
At the time of writing, the shares of the company were faring above the 30-days and 60-days simple moving averages, which depicts an uptrend from the current trading.
In the past 3 months, CBUY shares have delivered a negative return of 6.38 per cent. From the beginning of the year to till date, the company’s stock surged by 10.00 per cent. In the past year, the company’s stock has delivered a negative return of 27.87per cent.
The stock’s RSI (Relative Strength Index) was recorded at 56.67, 78.38 and 87.75 for the 30-days, 14-days and 9-days respectively, while the stock’s RSI was recorded at 99.17 (3-day).
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