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.
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.
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.
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Initiation
Ian Buddery
Chairman
John Davis
CEO
Thouraya Walker
CFO
Forecast net cash (£m)
0.6
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 3.5 | 42.4 | (32.1) |
Relative | 4.8 | 37.4 | (38.7) |
52 week high/low | 6.5p/3.2p |
Recent deal flow provides further validation of Cordel Group’s product and market fit, as well as long-term revenue opportunity. The company’s new customer win in the Middle East expands Cordel’s global customer footprint, while the extension of the Tren Maya engagement in Mexico through FY24 and FY25 validates the company’s land and expand strategy. Meanwhile, Cordel’s most recent certification from Network Rail means that the company’s entire processing pipeline now meets some of the most stringent standards globally, providing an important validation of Cordel’s product set.
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 | 440.0 | 72.8 |