Top Tweets for #lsai
Now this is interesting!
Through a Sports Direct subsidiary (itself controlled by Frasers Group #FRAS), retail tycoon Mike Ashely is taking a small stake in soon-to-be listed Sorted Group #SORT.
He's investing £0.25m at the 0.14p placing being carried out by #LSAI, for a 3.74% stake.
A mere punt in a lossmaking nano-cap, or something more strategic? No idea myself, but I'm taking it as a big positive.
The first IPO / RTO I've taken part in, in a long while:
Acquisition of Sorted #SORT by Location Sciences #LSAI, including a £2m equity raise at 0.14p (or 87.5p, post the impending share consolidation).
Sorted is an e-commerce delivery experience platform, founded in 2010. It provides software solutions to SMEs and MNCs - notable customers include ASOS, Asda, Boohoo and M&S.
The three core services of Sorted's proprietary Delivery Experience Platform comprise Ship, Track and Return.
In short, Sorted's combined services:
- facilitate carrier management and delivery tracking for platform users;
- enable post-purchase tracking and communication;
- allow automated returns management, post sale.
The Company operates a SaaS business model - predictable, recurring revenue is generated by customer subscriptions to the Delivery Experience Platform. [The current average subscription agreement length is 2.6 years.] A much smaller percentage of revenue is generated by one-off onboarding services of customers to the DEP.
In the 12 months to end September 2023, Sorted reported sales of circa £6.5m.
Since its founding 14 years ago, Sorted has raised £71.1m in equity financing, and a further £4.4m in debt financing.
It has been heavily loss making in recent years: in the six-month period to end March 2023, it recorded an operating loss of £7.0m.
Herein lies the investment opportunity. LSAI is acquiring Sorted for a nominal consideration (£67!), and is assuming £4.7m (including accrued interest) of outstanding debt.
Sorted gets access to the circa £4m net cash on LSAI's balance sheet (as at 30 June 2023); a £3m undrawn loan facility provided by one of LSAI's significant shareholders, Richard Hughes; £3.94m in outstanding warrant monies, exercisable at 0.20p / £1.25; and of course the PLC listing that can be used to raised further capital, if required.
Meanwhile, mgmt is focused on making the business as lean as possible. Subsequent to March 2023, a cost reduction programme was implemented, resulting in annualized cost savings of circa £7.6m in FY 2023.
In tandem, mgmt is focussed on restoring topline growth. Whilst no figures post September 2023 have yet been given, clearly impressive progress is being made. From the Admission Document published today:
"Sorted delivered another successful Christmas retail peak period (14 November 2023 through 8 January 2024) with shipment volume up 30 percent from the 2022 Christmas retail peak period..."
At the placing price of 0.14p / 87.5p, the shares trade on an EV/ARR of circa 1.5x. However, I anticipate some very punchy topline growth in the current FY and beyond - as the above paragraph already suggests is occurring.
My view is that the high profile nature of Sorted's SaaS customer base (= quality, predictable revenue streams) will make it a takeover target in the not-too-distant future - and I suspect that mgmt and key shareholders already have that firmly in mind, as the exit strategy.
A high risk (owing to serious cash burn), high return trade. Very happy to be involved form £6.7m mkt cap entry.
I plan to publish a proper write up once the deal completes on 16 Feb.
https://t.co/UMQDa6p3ql
$LSAI Sorted joins AIM through reverse takeover of Location Services https://t.co/ZrL7QgEPOy @locationsci $PXAMF #LSAI #PXAMF
The first IPO / RTO I've taken part in, in a long while:
Acquisition of Sorted #SORT by Location Sciences #LSAI, including a £2m equity raise at 0.14p (or 87.5p, post the impending share consolidation).
Sorted is an e-commerce delivery experience platform, founded in 2010. It provides software solutions to SMEs and MNCs - notable customers include ASOS, Asda, Boohoo and M&S.
The three core services of Sorted's proprietary Delivery Experience Platform comprise Ship, Track and Return.
In short, Sorted's combined services:
- facilitate carrier management and delivery tracking for platform users;
- enable post-purchase tracking and communication;
- allow automated returns management, post sale.
The Company operates a SaaS business model - predictable, recurring revenue is generated by customer subscriptions to the Delivery Experience Platform. [The current average subscription agreement length is 2.6 years.] A much smaller percentage of revenue is generated by one-off onboarding services of customers to the DEP.
In the 12 months to end September 2023, Sorted reported sales of circa £6.5m.
Since its founding 14 years ago, Sorted has raised £71.1m in equity financing, and a further £4.4m in debt financing.
It has been heavily loss making in recent years: in the six-month period to end March 2023, it recorded an operating loss of £7.0m.
Herein lies the investment opportunity. LSAI is acquiring Sorted for a nominal consideration (£67!), and is assuming £4.7m (including accrued interest) of outstanding debt.
Sorted gets access to the circa £4m net cash on LSAI's balance sheet (as at 30 June 2023); a £3m undrawn loan facility provided by one of LSAI's significant shareholders, Richard Hughes; £3.94m in outstanding warrant monies, exercisable at 0.20p / £1.25; and of course the PLC listing that can be used to raised further capital, if required.
Meanwhile, mgmt is focused on making the business as lean as possible. Subsequent to March 2023, a cost reduction programme was implemented, resulting in annualized cost savings of circa £7.6m in FY 2023.
In tandem, mgmt is focussed on restoring topline growth. Whilst no figures post September 2023 have yet been given, clearly impressive progress is being made. From the Admission Document published today:
"Sorted delivered another successful Christmas retail peak period (14 November 2023 through 8 January 2024) with shipment volume up 30 percent from the 2022 Christmas retail peak period..."
At the placing price of 0.14p / 87.5p, the shares trade on an EV/ARR of circa 1.5x. However, I anticipate some very punchy topline growth in the current FY and beyond - as the above paragraph already suggests is occurring.
My view is that the high profile nature of Sorted's SaaS customer base (= quality, predictable revenue streams) will make it a takeover target in the not-too-distant future - and I suspect that mgmt and key shareholders already have that firmly in mind, as the exit strategy.
A high risk (owing to serious cash burn), high return trade. Very happy to be involved form £6.7m mkt cap entry.
I plan to publish a proper write up once the deal completes on 16 Feb.
https://t.co/UMQDa6p3ql
@HaraldHadrada2 @Smudgedann @Blowster85 @Momentous_UK @Belcourtoi Hoping #LSAI will be the one that bucks the trend, everyone involved put in near £4m at 0.2p, if it comes back at or below this level, it should be a goer IMO
#LSAI https://t.co/APxPVOLOmc
Revenue is not far off minimum wage levels…so you can see why they pivoted….as to whether that’s them sorted …it’s impossible to judge🤷♂️
Last of the training clips!
We did some bigay tama before we left \o/
@salmon_sachimi's exhausted at this point so we did it slow and light lol
#arnis #Lsai #Leskas
More training clips with @salmon_sachimi!
Lightning Arnis 16 striking combinations ⚡️ lol it's a lot and i'm not sure if I got the order right 💀
(there are more vids but not sure how im gonna edit them yet)
#arnis #Lsai #Leskas
We had time to train/recap before @salmon_sachimi went home!
Lightning Arnis 13 basic strikes and 12 methods ⚡️
(will post the other videos once I get to editing them)
#arnis #Lsai #Leskas
#LSAI activity behind the scenes with this RTO - highly illiquid pre suspension, if deal structured in the right way, it’ll remain highly illiquid on its return - could be a decent move in this one especially if it gains press attention with the likes of who is involved
What happened at tech’s poster boy Sorted? - BusinessCloud
#LSAI Kamani, Hughes and Wilkinson clearly see the potential in this one, could be some turnaround play potentially being bought for a snip of what has been invested, net assets of £24m+ sept 2022 https://t.co/Wq14pGNoF1
#lsai suspension and Proposed acquisition of Sorted.
Finally.
https://t.co/aqQ0z8wtwO
#LSAI sorted🤔 https://t.co/aTNk36EyN9
It’s taking them a while ..to not get sorted👇….penny share nonsense involving Turner Pope etc
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