Last close As at 05/08/2026
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GBP27m
Research: TMT
Cordel has announced two new customer wins, with Aurizon Holdings, Australia’s largest freight operator, and Southeastern, one of the UK’s biggest rail operators. The company’s customer base has more than doubled since the start of 2024 and these deals indicate that Cordel is now seeing some network benefits from this expansion. We believe that Cordel is well placed to sustain its 40%+ growth rate, as its customer base increases and the company expands its use cases and revenues from existing customers.
Cordel Group |
Contract win momentum continues
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Software and comp services |
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13 November 2024 |
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Cordel has announced two new customer wins, with Aurizon Holdings, Australia’s largest freight operator, and Southeastern, one of the UK’s biggest rail operators. The company’s customer base has more than doubled since the start of 2024 and these deals indicate that Cordel is now seeing some network benefits from this expansion. We believe that Cordel is well placed to sustain its 40%+ growth rate, as its customer base increases and the company expands its use cases and revenues from existing customers.
Customer base more than doubled in CY24
The first contract, with Aurizon, Australia’s leading rail freight operator, involves the deployment of Cordel Connect and the Clearance module. It covers a segment of Aurizon’s 5,100km track network and is a bring-your-own-data (BYOD) engagement, whereby Cordel will analyse data it has already collected as part of its engagement with network operator ARTC. The upsell opportunity is to expand the implementation across Aurizon’s wider network or add new use case modules. The contract with Southeastern involves working with both Southeastern and Network Rail to generate measurement data through automated LIDAR data and AI processing to help optimise the accessibility of planned new trains. This new use case may create opportunities with new train designers or specifiers looking to optimise their designs for specific network environments. While both contracts are entry point deals, they have the potential to expand, and highlight how Cordel’s growing customer base (in these cases with network operators) opens opportunities with others.
Well placed to sustain 40% growth
Cordel reported FY24 revenue growth of 46% to £4.4m earlier this month and the company looks well placed to sustain a strong growth rate, as its customer base expands and it builds its footprint with existing customers. The company’s recent £1.0m placing provides additional resource to invest in enhanced 3D object recognition capability to support a US opportunity in Positive Train Control systems. Excluding investment in that product (c £400k), management expects close to break-even in FY25. Sustaining this growth rate into FY26 should scale the business into profitability.
Valuation: Modest given growth potential
Cordel’s valuation of 2.2x EV/sales is modest given the forecast growth rate and strategic opportunity. We also highlight that Cordel has many attributes that we believe will be key success factors for vertical AI companies, supporting both growth prospects and strategic value. These include access to unique data sets, a cloud platform and deep domain expertise in turning data into actionable insights.
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Consensus estimates
Source: Company data, consensus estimates |
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