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D4T4 Solutions (D4T4) – Close at 345p

D4T4 released a disappointing set of Full Year numbers yesterday with profits contracting despite a jump in revenue.

The ‘big data’ company said pre-tax profits had slipped 11.88% to £4.45m on an adjusted basis despite a rise in gross profit margin from 60.7% to 62.4% and a 4.6% year-on-year increase in revenues to £22.8m.

With D4T4 having a high PE multiple (43.5 on a forward basis), the shares were punished by the market and short-term momentum has been damaged. Hence we’re going to take our profits and wait for the dust to settle to see if D4T4’s valuation can reach more attractive levels.

Gross profit = +54%

D4T4 Weekly Candle Chart