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Mxc Capital Share Chat (MXCP)



Share Price: 1.325Bid: 1.30Ask: 1.35Change: 0.00 (0.00%)No Movement on Mxc Capital
Spread: 0.05Spread as %: 3.85%Open: 1.325High: 1.325Low: 1.325Yesterday’s Close: 1.325


Share Discussion for Mxc Capital


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Raleigh
Posts: 148
Opinion:No Opinion
Price:1.325
Mxcp
Today 11:59
What we have experienced thus far indicates a need to clear whatever is holding the sp back, possibly going back to Cannacord. That said, and although it is a long time coming and indeed we are still waiting on a notification of results date together with whatever that may additionally include, there will be efforts ongoing including those in relation to Liberty Global. Aspirations will not have changed. A year ago Mxcp was seeking to achieve a NAV and justify a market cap of £100m. I look forward to future comments on how that is seen to be progressing following last year's reporting.

"This joint venture with Liberty Global marks an important step change for MXC. Investing in and advising third party funds gives us access to a sufficient level of capital to grow a greater number of assets. Across our own directly held investments and our joint venture with Liberty Global, we believe that we have visibility on around £100 million of assets. To create optimal deal flow, we do not think we need much more than £150 million to maintain a self-sustaining cycle of investment, growth, disposal and distributions to shareholders along the way. Ultimately, with a pool of assets of this quantum, the contribution to MXC should grow significantly, at the same time powering our NAV and returns to shareholders.
We take a three-year view on this "engine" we are developing to be fully firing, as it becomes increasingly self-funding through realisations and self-fuelling through accelerated deal flow, throwing off greater returns in the process. MXC is setting out on the next leg of its journey and I believe it will be a rewarding one for all of us shareholders."
 
Jayfella72
Posts: 1,209
Opinion:Strong Buy
Price:1.375
RE: MXCP
11 Nov '18
Thanks for sharing Munters.
Raleigh
Posts: 148
Opinion:No Opinion
Price:1.375
Mxlg
10 Nov '18
As to the future success of the MXLG joint venture for Mxcp shareholders, what has not been mentioned is that MXLG will have the advantage of Liberty Global's existing network and solutions, confirmed by Liberty Global, and that the services it provides are likely to be centrally consumed by Virgin Media Business, a subsidiary of Liberty Global - so it seems evident that the end result of the joint venture is likely be acquired by Virgin Media - whereupon Mxcp and partners will share 50% of the sale valuation.
Munters
Posts: 501
Opinion:Strong Buy
Price:1.375
MXCP
9 Nov '18
Part 2...

The company is starting to put its burgeoning cash pile to good use, having signed a joint-venture agreement at the end of last year with a subsidiary of Liberty Global, the international TV and broadband company. The aim is to create an IT services provider focused on small- and medium-sized business customers within the UK through a series of acquisitions. The first investment was made in April this year in a Leeds-based IT infrastructure and network specialist provider. Both MXC and Liberty invested £2.35m each.

Importantly, MXC is cashed up to do more deals with its heavyweight new partner. I reckon its pro-forma net cash pile is around £14.4m, and it also has a £750,000 receivable that is payable in January from Ravenscroft, an independently owned investment services group based in the Channel Islands with £4.7bn of assets under administration for private and institutional clients. MXC acts as consultant to Ravenscroft in its role as investment manager to the GIF Technology & Innovation Fund in which the States of Guernsey and MXC are invested. It’s worth noting that over the summer Ravenscroft paid £2.25m for a 25 per cent stake in MXC’s transactional businesses, so clearly sees value in MXC’s deal makers.

By my reckoning, MXC’s realised profit on the Castleton stake, the aforementioned call options it cashed in, and the £2.25m realised from the Ravenscroft stake sale, offsets the majority of the £8.8m paper loss on the IDE stake. This means that MXC’s tangible net asset value (NAV) of £51.7m at the end of February 2018 should be pretty much intact by my reckoning. Moreover, MXC’s market capitalisation of £43.7m is effectively fully backed by its estimated cash pile of £14.4m, the £20.25m stake in Tax Systems, the 75 per cent stake in its transactional businesses (see through valuation of £6.75m), and the £2.35m co-investment MXC has alongside Liberty Global.

This means that MXC’s share price attributes nil value to its private equity portfolio (carrying value of £7.55m), the £4.35m current value of its shareholding in IDE, the aforementioned £3m loan it made to the management buyout team of one of IDE’s business units, and a £570,000 shareholding in Adept4 (AD4:1.55p), an Aim-traded provider of 'IT as a service' to small- and medium-sized businesses in the UK.

Of course, investors rightly have reasons to be cautious especially as a previous investment MXC made in Redcentric (RCN:84p), a UK IT managed services provider, hit major trouble a couple of years ago. But with MXC heavily cashed up, and some smart operators (Ravenscroft and Liberty Global) backing its deal makers, I see recovery potential in the shares, which are trading 10 per cent below my tangible NAV estimate of 1.5p. More cautious investors may wish to wait until the final results are released in early December, but I feel the shares are worth buying now. That’s because if the company has indeed turned a corner, as newsflow would suggest, then a decent
Munters
Posts: 501
Opinion:Strong Buy
Price:1.375
MXCP
9 Nov '18
Aim-traded shares of MXC Capital (MXCP:1.3p), a technology-focused merchant bank run by a management team that backs investee companies they represent, have been trading sideways all year and are unchanged from the level at which I rated them a recovery buy 14 months ago (‘A trio of small-cap buys’, 22 Aug 2017).

The main reason for this lacklustre performance is that one of MXC’s main investee companies, IDE (IDE:2.65p), a mid-market network, cloud and IT managed services provider, has been going through a cost reduction programme in order to create a more appropriate and profitable cost base going forward. However, some of the supplier agreements entered into previously (relating to fibre, data centres and outsourced support) have impacted IDE’s profitability in the near term, while the expected benefits of the cost-cutting programme have not been realised at the anticipated rate.

Ultimately, IDE had a working capital cash crunch and one that necessitated a rescue equity raise from its shareholders, including MXC which has invested a further £3.25m in equity (at 2.5p a share) to lift its stake to 45.6 per cent. The collapse in IDE’s share price has meant that MXC’s original stake in IDE, which had a £9.9m carrying value at the end of February 2018, is now worth a paltry £1.1m. Earlier this month MXC used £3m of its healthy cash pile to provide a loan for a management buyout of one of the business units of IDE. The loan is secured on the assets of that business and MXC will earn annual interest income of 12 per cent over the three-year term of the loan and a £75,000 arrangement fee, too.

The issue at IDE has overshadowed the good news from the rest of MXC’s investment portfolio. Most notably, the company’s shareholding in Castleton Technology (CTP:96p), a provider of technology products and services to the social housing and not-for-profit sectors, has reaped massive gains. The stake had a fair value of £13.8m at the end of February 2018, or more than double cost of £5.7m, since when MXC has offloaded the holding for total proceeds of £19m, of which £4.3m was used to increase its holding to 20.66m shares in Tax Systems (TAX:99p), a leading supplier of corporation tax software to the large corporate sector and the accounting profession in the UK. The stake in Tax Systems is currently worth £20.25m, a valuation that looks warranted in light of the company’s latest financial results. MXC also realised £1.66m by cashing in all of its call share options in Castleton Technology.

The company is starting to put its burgeoning cash pile to good use, having signed a joint-venture agreement at the end of last year with a subsidiary of Liberty Global, the international TV and broadband company. The aim is to create an IT services provider focused on small- and medium-sized business customers within the UK through a series of acquisitions. The first investment was made in April this year in a Leeds-based IT infrastructure and network specialist p
Raleigh
Posts: 148
Opinion:No Opinion
Price:1.375
Mxcp
7 Nov '18
My own translation of what he's actually saying is that investee company Ide is a work in progress under new Mxcp management. And that If his own figures are correct, MXC has £14.4m soon to be £15.15m at its disposal, and going ahead with future deals, two shrewd sets of partners in Ravenscroft and Liberty Global. The NAV is such that taking everything into account, a price of 1.5 with an added premium for future prospects would make sense, before the news flow starts.
I had pretty much worked the generality of that out for myself, and it is why I bought in when the share price bottomed out twice in June and July, in anticipation of a revigorated share price. It will happen when the newsflow starts, and there will be more to talk about when another acquisition is added to SICL.
Munters
Posts: 501
Opinion:Strong Buy
Price:1.375
MXCP
7 Nov '18
Email him at ian@mxccapital.com
I'm sure he will reply.
Munters
Posts: 501
Opinion:Strong Buy
Price:1.375
MXCP
7 Nov '18
What contact details are you using?
You need to speak to Ian Smith, he almost always replies to emails.
He will often ask for your phone number so he can call you which he does.

The Investors Chronicle will be publishing the full MXCP buy tip this Friday.
amuhith
Posts: 13
Opinion:No Opinion
Price:1.375
RE: Sp movement
7 Nov '18
So far today 13 buys and 11 sells. Is this correct?
amuhith
Posts: 13
Opinion:No Opinion
Price:1.375
Sp movement
7 Nov '18
Thanks munters/IC. Let’s hope that sentiment moves towards positive for a few days by not petering out today. I fear based on experience it might just get stagnant again.
Most of the company’s assets are in quoted securities/ cash. The company should endeavour to declare results in two months rather than three and half months. I emailed the previous CEO. Did not get a reply. Left message for the current CEO. No call back.
Anyway, no complain if sp goes over 2p this calendar year.
Munters
Posts: 501
Opinion:Strong Buy
Price:1.375
MXCP
7 Nov '18
From the IC article

"By my reckoning, MXC’s realised profit on the Castleton stake, the aforementioned call options it cashed in, and the £2.25m realised from the Ravenscroft stake sale, offsets the majority of the £8.8m paper loss on the IDE stake. This means that MXC’s tangible net asset value (NAV) of £51.7m at the end of February 2018 should be pretty much intact by my reckoning. Moreover, MXC’s market capitalisation of £43.7m is effectively fully backed by its estimated cash pile of £14.4m, the £20.25m stake in Tax Systems, the 75 per cent stake in its transactional businesses (see through valuation of £6.75m), and the £2.35m co-investment MXC has alongside Liberty Global.

This means that MXC’s share price attributes nil value to its private equity portfolio (carrying value of £7.55m), the £4.35m current value of its shareholding in IDE, the aforementioned £3m loan it made to the management buyout team of one of IDE’s business units, and a £570,000 shareholding in Adept4 (AD4:1.55p), an Aim-traded provider of 'IT as a service' to small- and medium-sized businesses in the UK."
Munters
Posts: 501
Opinion:Strong Buy
Price:1.375
MXCP
7 Nov '18
From the IC article.

"More cautious investors may wish to wait until the final results are released in early December, but I feel the shares are worth buying now. That’s because if the company has indeed turned a corner, as newsflow would suggest, then a decent share price premium to tangible NAV looks warranted. Buy."
Munters
Posts: 501
Opinion:Strong Buy
Price:1.375
MXCP
7 Nov '18
This has just been tipped as a strong buy in the Investors Chronicle.
Details to follow.
Munters
Posts: 501
Opinion:Strong Buy
Price:1.325
MXCP
6 Nov '18
The trades you see are not all sells there are in fact more buys than sells.
You cant go by the info on here and most other places don't get it accurate either.
The spread is too close and if you try to buy you can get them for 1.31 with a fill or kill or limit order.

You have to do the best for your personal situation but I kinda know what's going to happen here.
Sit tight would be my advice but I have a long long experience of the people running this company and have spoken to them often.
Phone them or email them yourselves and you will get a better feel of things.
Gluk.
amuhith
Posts: 13
Opinion:No Opinion
Price:1.325
Share trades
6 Nov '18
Just looked back to Oct 2018 trades. There were 67 sell and 1 buy in the month. People living in this planet are surely not interested in it. If someone or some people are so confident about its future why no one is buying?
Middleman
Posts: 18
Opinion:No Opinion
Price:1.325
Stagnant
5 Nov '18
My comment was based on the state of the share price and the number of trades in recent times.

Your optimism is not shared by many!

10p?.....are you sure it’s me that’s on a different planet!
Munters
Posts: 501
Opinion:Strong Buy
Price:1.325
MXCP
1 Nov '18
What planet are you on?

MXCP have been doing a significant amount of work recently since founder Ian Smith took back control as CEO.

Since July the 31st there have been 20 RNS which is more than 2 a week on average.

This year alone they have set up the Liberty Global deal.

They have bought the first company for the liberty global deal.

They have become advisors to Ravenscroft Ltd

They have had a 25% investment in the holding company from Ravenscroft Ltd

They have cleared out IDE Holdings and stopped the rot.

They have invested heavily in IDE's recovery.

They have sourced top city legend and big hitter Andy Parker ex Capita to become Chairman of IDE.

They have built up a considerable cash pile for their upcoming plans worth over £16m in cash.

They have divested their CTP investment at the top which was very wise and smart.

They have taken a larger holding in TAX Systems.

They have initiated and completed to all intents an EBT and bought 135 million shares in MXCP to hold in trust for future employee benefits and rewards.

I can't think of many companies listed on AIM that have been busier.

And I fully expect a raft of announcements going forwards.

This company is on the turn and with the multi multi billion pound backers and support we have, I can easily see this way past 10p in due course.

Gluk.
Middleman
Posts: 18
Opinion:No Opinion
Price:1.325
Dead
1 Nov '18
I couldn’t agree more.....absolutely stagnant.
amuhith
Posts: 13
Opinion:No Opinion
Price:1.325
Dead
31 Oct '18
Not a single buy transaction in the last 10 (may be more) days or so. Year end was 31 August. No result declaration date yet. Management asleep? Nobody seems to care other than sufferers like me.
Raleigh
Posts: 148
Opinion:No Opinion
Price:1.325
MXC Capital
19 Oct '18
(Much) further to drop? I think not. Potential to rise? I think so.
And they now have contracted responsible partners. With multiple acquisitions foretold, I had expected aggressive further investment before now, but will wait, albeit with growing impatience. In the meantime there will be interest and fees coming in. And presumably the EBT will continue to buy incentivisation shares at this price - shares which 'employees and certain directors ' have their eyes on, and must surely be linked to at least modest success.
Gordie1962
Posts: 30
Opinion:No Opinion
Price:1.325
RE: Buy back
18 Oct '18
Long term shareholder here bought all way down to 2p Raleigh is right but saying that I 've probably lost more at bookies and the betting slips are worth zilch where as here who knows??
Inchpo
Posts: 2
Opinion:No Opinion
Price:1.325
RE: MXCP
15 Oct '18
Appreciate the clarification - it was not spelt out too well in the release !!
Munters
Posts: 501
Opinion:No Opinion
Price:1.325
MXCP
15 Oct '18
£75k is the arrangement fee.
MXCP get 12% interest on the loan plus payback in full within 3 yrs.
The will earn roughly £360k in the first year from interest only repayments plus the £75k.
The following 2 years the loan will be reduced each month but roughly £600k will be paid in interest.
So MXCP stand to earn over £1m and get their money back at the end of it.
Inchpo
Posts: 2
Opinion:No Opinion
Price:1.325
RE: RNS
15 Oct '18
£75.000 x 36 = £2.700,000 somewhat confusing !!!
Rocka999
Posts: 6,494
Opinion:No Opinion
Price:1.325
RNS
15 Oct '18
What a mess, at least its getting cleaned up now




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