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  • Writer's pictureMark Watson-Mitchell

D4t4 Solutions - speed up the contract negotiations please

This AIM-listed data solutions provider will be holding a virtual Capital Markets Day for investors and analysts in the last week of November. That is when the group’s interim results to end September will be declared.

We now know that its H1 revenues will be £5.09m against £8.84m previously, which is what the management were expecting.

Just how the second half now underway will show through is very much in the laps of the Gods, until current contract negotiations are concluded.

But what id did like to see in this week’s Trading Update was the fact that annual recurring revenues were over 55% compared to the end March 45.2% figure.

Furthermore, end period net cash was a healthy £12.08m (£11.24m).

Boss Peter Kear stated that "Overall, we are in a good position with a number of contracts in final negotiation and a strong pipeline with an increase in new opportunities. Based on our organic business, H2 annual recurring revenues and the depth and quality of contracts in final negotiation coupled with a strong new business pipeline, we remain confident about our prospects for the full year."

We have had a good run with this group’s shares over the last seven months, peaking out at 248p at one stage, after its 120p low in late March.

Now at 198p I have a sneaking feeling that we could be in for some good news and another run up in price.

(Profile 09.04.20 @ 170p set a Target Price of 215p*)


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