Added to YB: 2026-06-23
Pitch date: 2026-06-20
ARC.L [neutral]
Arcontech Group plc
Author Info
Mahad is a contrarian value investor with a focus on DCF analysis and a disciplined margin of safety approach. Sign up for the newsletter.
Company Info
Arcontech Group plc, together with its subsidiaries, engages in the development and sale of proprietary software in the United Kingdom, rest of Europe, Africa, North America, Australasia, and the Asia Pacific.
Market Cap
GBP 10.4M
Pitch Price
N/A
Price Target
0.93 (+23%)
Dividend
5.16%
EV/EBITDA
4.01
P/E
12.69
EV/Sales
0.97
Sector
Software
Category
value
An Undercovered Software Firm Sitting on 71% of Its Value in Cash - Arcontech Group plc
ARC.L (pass): UK micro-cap (£10.4M) selling sticky market-data software (CityVision) to blue-chip banks (JPM, Barclays, BoE). Net cash £7M = 76% of mkt cap, 30%+ net margins, P/FCF 1.2x, EV/EBITDA 3.6x, 5.2% yield. DCF FV £0.93 (21% MoS). Risks: customer concentration (top 4 = 67%), lost client cut H1 rev 3%, cyclicality, slow sales cycles. Author passes on deep dive.
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