UK 02:31 Sunday, 27 September 2026
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Mirada plc (MIRA) has announced interim results and “a big step following the company's successful rollout of our iris SDP modules in Peru”. It is all good news.
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Comments
Steve
Posted this on the hotstockrockets site and is equally relevant here…
Even more importantly and I’m surprised it was omitted from this article was the first guidance given by Mirada on revenue from the undisclosed Tier 1 contract that was won earlier this year and was confirmed to be nearing commercial launch prior to the end of 2014. It was stated as a minimum of $15million in license fees over 3-5 years – this will be almost all if not all free cashflow.
These interim results showed that Mirada was almost operationally cashflow neutral bar around £350k per year in interest expenses. Investment activites in first half used £600k so total cash burn is currently around £1.5million per year. Assuming that the Tier 1 contract produces a little over the minimum stated and is slightly weighted towards the early years, Mirada from this single contract can produce free cashflow of £1.5million per year for the next three years and carry on the current level of investments. With £1.2million cash currently on the balance sheet, all short term debt can be quickly repaid and the associated interest payments can be reduced. On top of this there is the supplementary OTT contract with the same partner potentially offering a further £1million per year. This is without factoring any income from the Peru deal announced – although I expect it is more a foot in the door at this stage rather than significant from a revenue perspective.
This should be valued at 20p based on current prospects – I think the next catalyst will be the announcement of commercial launch and naming of the Tier 1 partner in December which could indicate $15million in licence fees is a very conservative estimate and it could be close to double this.
One or two more wins of that size as well – it could be phenomenal.
I picked this up from Shareprophets and while currently the price is no gain, I think this will prove to be a fantastic tip.
wildrides
I agree ……….. it looks to be a stonking tip provided ( as always on aim ) that the RNS are not economical with the truth regarding contract income certainties / uncertainties . I am in anyway , so heres hoping all will come to pass .