Main menu
Edison Group
  • Home
  • Equities

    Equities

    View All Equities

    Equities by Sector

    MGI – Media and Games Invest

    MCap

    EUR235m

    Last close

    EUR1.50

    ▲ 0.35 (30.21%)

    Melrose Industries

    MCap

    GBP8,167m

    Last close

    GBP6.70

    ▲ 74.80 (12.57%)

    Pan American Silver

    MCap

    USD6,794m

    Last close

    USD20.63

    ▲ 2.00 (10.74%)

  • Sectors

    Sectors

  • Investment Strategy

    Investment Strategy

    View All

    Latest

  • Thematics

    Thematics

    View All Thematics

    Latest

  • Audiovisual

    Audiovisual

    View All Audiovisual

    Latest

Cordel Group (LSE: CRDL)

Last close As at 11/05/2024

GBP0.05

— 0.00 (0.00%)

Market capitalisation

GBP9m

Cordel Group offers a patented cloud-based platform for master data management and business analytics, together with specialist hardware and software for capturing, analysing and reporting on large datasets within the transport sector, employing sophisticated AI algorithms.

Equity Proposition

Cordel Group (AIM: CRDL) is a UK-listed, international technology company that applies machine learning (AI) to substantial data sets captured along rail corridors, automating mandatory inspections. Creating safer, more efficient and sustainable railroads around the world is core to the company’s mission. Cordel provides an end-to-end service, from data capture and management to automated rail corridor analysis, generating meaningful insights for its customers, including rail clearance, vegetation, ballast profiling, geometry analysis and so on.

There are five key reasons why Cordel represents an exciting investment case.

  • First, Cordel has won substantial, multi-year contracts with major railroads and rolling stock companies globally, including Amtrak, Network Rail, ARTC and Angel Trains, demonstrating a strong market fit. With a strong pipeline, management is hoping to double the company’s customer base over the next 12 months.
  • Second, once embedded within an organisation, the group becomes a data management beachhead, enabling stickiness and unlocking up- and cross-sell opportunities by leveraging data it has already processed. The sale of one additional use case can potentially double the value of a contract, alongside efficient and low cost delivery.
  • Third, with considerable investment in sales and delivery now complete, Cordel is well-positioned for operationally geared growth, especially in the substantial target North American market where the company has seen significant pipeline expansion. The company’s established partner network should support more global growth.
  • Fourth, globally, infrastructure digitalisation and spatial computing trends present significant market opportunities as sensor proliferation expands collectible data volumes. Cordel’s automated solution helps railroads derive value from data that might otherwise be siloed and unusable. Substantial government funding and initiatives in the group’s key markets are also driving customer adoption.
  • Finally, at 1.3x FY24 EV/sales, the valuation overlooks the expansion potential with the company’s top tier clients, as well as the potential to double its customer base in a short timeframe by executing on the current pipeline. Key re-rating catalysts are proving additional use case demand, upselling contracts and winning new clients, especially in the US. Cordel has a £10m mid-term recurring revenue target, where delivering this with the current cost structure would provide strong validation for the current strategy.

Cordel offers a compelling railroad solution, as shown by its impressive client base of major railroads worldwide. With an established footprint among existing customers and a growing pipeline of new customers, Cordel is well-positioned for rapid top-line growth and margin expansion.

Latest Insights

TMT | Flash note

Cordel Group — Positive steps towards ambitious FY24 goals

TMT | edison tv

Cordel Group – executive interview

TMT | Initiation

Cordel Group — Railtech play with scalable potential
Visit Website

Sector

TMT

Equity Analyst

Dan Ridsdale

Head of Technology

Key Management

  • Ian Buddery

    Chairman

  • John Davis

    CEO

  • Thouraya Walker

    CFO

Balance Sheet

Forecast net cash (£m)

0.6

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 26.8 3.5 (33.3)
Relative 23.3 (3.2) (36.5)
52 week high/low 6.8p/3.2p

Financials

Cordel’s Q324 update shows progress towards the group’s FY24 revenue expectation and other objectives, supporting our forecasts. Doubling the customer base by year-end is a key milestone, which encouragingly looks set to come in part from tier-one US railroads, offering the greatest scope for large seven-figure contracts from its target markets. Additionally, on 25 April, the group announced its first ever agreement with a major national railway in Asia Pacific via a 12-week paid trial with management expecting the customer to expand the trial into a roll-out across their broader locomotive fleet. This trial potentially opens a new market for the company and the opportunity for further revenue diversification. Developments with Amtrak, as Cordel moves to the five-year service phase, and Angel Trains in the UK provide positive indicators for stable recurring revenue and upsell opportunities.

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A 2.3 (1.0) (1.1) (0.67) N/A N/A
2023A 3.0 (0.3) (0.4) (0.20) N/A N/A
2024E 4.7 (0.6) (0.8) (0.39) N/A N/A
2025E 7.0 0.2 0.0 0.01 450.0 74.4

Research

thematic

TMT

MediaWatch – Targeting the opportunities

thematic

TMT

MediaWatch – Vision On
Digital Marketing and Internet Media Technology Platform

thematic

TMT

MediaWatch – Screening well

thematic

Consumer

IPO apocalypse

thematic

TMT

ESG, moving beyond the box tick

thematic

TMT

Direct tech investors

thematic

Consumer

Circular economy business models

thematic

TMT

Quantum dots – all the colours of the rainbow

thematic

TMT

Micro-LEDs – small is beautiful

thematic

TMT

Semiconductor winners – European companies with strong positions

thematic

TMT

The small satellite market – Small is beautiful

thematic

TMT

European video games: A safe haven in troubled times

thematic

TMT

Blockchain adoption: Implications for the financial services sector

thematic

Consumer

Illuminator: August Update

thematic

TMT

European video games

thematic

TMT

Diversification and scale for online success

thematic

TMT

5G – Strategic importance, but lacking a near-term commercial driver

thematic

TMT

UK video games – Heterogeneous not homogeneous

thematic

TMT

Mobile ecosystems

thematic

TMT

Mobile ecosystems

thematic

TMT

Mobile ecosystems

thematic

TMT

NZ – Edison talks tech

thematic

TMT

AUS – Edison talks tech

thematic

TMT

Mobile ecosystems

thematic

Consumer

Deutsche Börse Eigenkapitalforum 2014 Research Guide

thematic

TMT

Mobile ecosystems

thematic

Energy & Resources

ASX Spotlight Conference – London, 6 March 2014

thematic

Energy & Resources

ASX Small to Mid Caps Conference – London, 7 March 2013

thematic

TMT

The third pillar

thematic

TMT

The real disruptor

thematic

TMT

Merger mania is back