The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Comments reflecting on progress up till the end of March this year. Commenting on the results, Nicholas Scallan, the Pinnacle CEO stated: "Over the last year we have seen progress in returning the business to health with a much better defined focus, costs reduced and transformational projects underway. We are proud of our recent customer successes and product developments to support the business. We said it would take time to turn the business around, as seen by these results, but we remain confident that the leaner, more focussed organisation will return to profitable revenue growth. This confidence is further supported by the recent funding round that considerably strengthens the Company's balance sheet, with the substantial investment from two of the company's existing institutional shareholders".
MXCP took their stake back in April @ 6.5p and have set about transforming PINN. So, buying 6 months later with 6 months transformation under their belt at the same price is a complete no brainier. The turn around of the business will not take a year to complete and will not take much longer before the building blacks are put in place. The recent contract wins tell you that as these were contracts that pinn were not in a position to tender for before MXCP came on board let alone compete for and win them!!. The news when it comes could be spectacular. 6 months of restructuring and streamlining will show through very soon and will be reflected in the share price. Crazy prices when you consider what mxcp paid 6 months ago.
Yes, it's actually quite a encouraging statement from mxcp that they think this will one day be a mid market sized company. It's only got a £4 mill Mcap right now and that means there is a massive growth ahead to become even a £30 mill Mcap never mind mid market. In the near term a £12 mill Mcap is very achievable and is still absolutely nothing considering what they are doing and hows all involved here. One day soon mxcp will bring pinns first acquisition and it's going to change the landscape here.
1 code, then a 500 code hmm, OK, let's see what Friday brings us.
Sells getting eaten up with buys. Very interesting. I did wonder if mxcp might have added when this bottomed out. They well be or someone might be.
Either a rns on the way or someone looking to have a holding for research or access to books etc Mind you, you don't need to own a share to provide a broker note as one's already been released here recently but for extensive research and obtaining accounts some people do buy 1 as it allows them to attend AGM's etc Could maybe be a balancing of the trades etc. Shall we opt for the RNS as that sounds more sexy?
If we base it on what MXCP are wanting to do then with Pinn I think we could see a substantial increase in the share price. For instance MXCP hope to accumulate up to 8 investments which they guide in to becoming a mid tier market capped company. Now, we know they have 365Agile, Castleton Tech and Pinnacle Tech. 365Agile is now off and running having made several acquisitions with the help of MXCP and making great strides. Castleton Tech is the furthest down the road in that respect and Pinn hasn't got going yet from when MXCP bought in to the company and outlined their ambition. Castleton have made numerous acquisitions and now established a great business model in a niche market with plenty of scope for growth. So based on that Pinn has all the growth in front of it. To date Castleton tech has done over 500% Can pinn do 500%? I don't see why not given time but right now it's nice and steady here, not making waves but the business is winning new contracts and streamlining. it's growing the bottom line and when MXCP start making acquisitions with pinn we will see some serious lift in the share price. Take a look at this from MXCP: We are focussed on building two complementary investment themes. First, we are creating a small number of principle investments – probably around eight of them - that are quoted platforms for growth by acquisition. These businesses either are or hopefully will become significant businesses in their segments with upper quartile ratings and capitalisations approaching the mid-market. So, with guidance from MXCP Pinn could become a significant business with upper quartile ratings: ie a very nice share price for those who get in and see it through it's journey. A market cap defined as mid tier is £150 mill and upwards to £250 mill. That's a lot of blue sky here and a very significant share price..
thank you for your interesting post - what is your target share price -I have been in for four years with 2m shares and a disgusting buying price
AA. Some good informative posts thanks and yes, the Cyber Security angle with Simon Duckworth is very interesting as it was with accumuli before it was sold off. Going on the price action round the mxcp stable it looks like pinn and ctp are primed for further upside from these levels so it will be interesting going forward. I expect to see more contract wins here and most of all the acquisition that was touted 6 months ago. MXCP have their house in order now and will want to get moving. I don't think we will have long to wait.
Makes sense that he is driven and focused on Cyber security, Look at his CV: Simon Duckworth Non-Executive Director Simon Duckworth, OBE DL, holds a number of non-executive positions in the public and private sectors and is currently Chairman of Barings Targeted Return Fund and the senior non-executive Board Member at the Serious Fraud Office (SFO). He was a non-executive Director of Fidelity's flagship European Investment Trust, Fidelity European Values plc, for a decade, and has sat of the Boards of a number of AIM listed companies as a non-executive director. Simon was a non-executive director of Accumuli plc from 2010 until its sale to NCC plc earlier this year. A Cambridge University graduate, Simon is a former Chairman of the City of London Police Authority and currently chairs the Economic Crime Board of the City of London Police. He worked closely with the Home Office as Chairman of the National Olympics Security Oversight Group and is a non-executive director of the Association of Police and Crime Commissioners. Simon is one of HM's Lieutenants for the City of London and Deputy Lieutenant for Greater London. He is also the Honorary Colonel of the Royal Military Police and holds a number of other public and charitable appointments.
IT Security Visibility, Control, Optimised Security At Pinnacle we understand that every customer is different and that a one-size-fits-all approach to security doesn’t work. That’s why we work with you to address your security challenges and support your business goals. We listen to the issues you are facing and select the products and services that will best fit your requirements. With many top tier accreditations and years of experience, we can provide tailored solutions that fit you and your budget. Working with the world’s leading IT security vendors to offer products, deployment, training, support and managed services to help customers address their security challenges. Rather than stifling businesses with unmanageable security, we give them the freedom to work when they want, how they want! Our approach is to help you to achieve the three main goals of consolidating, simplifying and reducing TCO within your existing IT security infrastructure whilst proving you with greater visibility across the business, ensuring a return on investment and helping improve operational efficiencies.
You mentioned the cyber security in your post last night and I didn't realis the Baxter contract was basically a Cyber security contract by definition. If PINN are going down this road as Accumulia did under the guidance of mxcp then that's a very good sign. The next acquisition will be very telling and if Cyber security is on the agenda then we may well see some disposals here too? I would assume mxcp will be best placed to judge of course but that would be a logical thought. This is from the Baxters RNS Pinnacle will unify its operations, reducing costs through simplification and increased visibility, while utilising a single pane view across multiple applications and environments that will provide important data insights on performance going forward. Pinnacle will implement advanced anti-virus, anti-spam, malware protection and harmful internet content monitoring solutions on Baxters' behalf, all of which are expected to significantly increase its business efficiency. Pinnacle's Business Development Manager, Ian Stoddard said: "We are excited to be providing those solutions to Baxters, providing it with the simplest and most cost-effective way to protect its data from digital threats. "We believe our solutions will promote increased efficiency, ease-of-use, and peace-of-mind during a period of major transformation for Baxters." Pinnacle CEO Nicholas Scallan, said: "This agreement is another demonstration of our on-going commitment to offering clients a level of security and peace-of-mind that will significantly enhance their organisation by allowing them to focus more energy and time on building a sustainable and successful business. "Cutting down on hardware deployment and configuration tasks through the cloud means more time can be spent on meaningful security tasks - assessing, monitoring, and remediating issues in real time."
Only £4 mill, room for three times that once the news flow starts working through and even a £12 mill Mcap isn't a lot to justify when looking at how others in the sector are performing. Still need to see some more solid contract wins but to date 02 and Baxters contracts are very positive and will help to grow the Mcap when they start to filter through.
Nice little relief rally happening here, nothing major just a correction after the shake out and ready for the next run up. Nice buying over the last couple of days.
AA Thanks, took a look at the new website and it looks great and the info on what they want to do with pinn is very telling. What's more interesting is the ability mxcp have to make pinns first acquisition via loans to get them up and running. Looks like there was an almighty shake which bottomed out and buying has resumed. Correct about Simon Ducks too, He was the guy that built accumulia for mxcp before that was sold off at a handsome profit. The appointment of him also points to cyber security being developed by pinn and becoming a standard offering. Could move quite quickly back to the 10p area imo
Just looking in on MXCP to add on from my earlier post and their website has been updated and they had this to say about their strategy and about pinn: We are focussed on building two complementary investment themes. First, we are creating a small number of principle investments – probably around eight of them - that are quoted platforms for growth by acquisition. These businesses either are or hopefully will become significant businesses in their segments with upper quartile ratings and capitalisations approaching the mid-market. We are also building a number of high potential, highly desirable, smaller investments that are fast growing and probably first generation managed. We hope these businesses may become quoted or may in due course have a better future under different ownership. We will actively manage these businesses in partnership with their management, seeking to build value quickly. The size of MXC’s interest in its investee companies may change and the statistics in this section will be updated at the beginning of every quarter. Pinnacle focuses on the business market across the UK. Driven by leveraging organic opportunities as well as through targeted acquisitions, Pinnacle provide a wide range of converged managed solutions including Managed Support Services, Unified Communications and Collaboration, Communications and Mobility, Software as a Service (SaaS) and Infrastructure services.
They appointed Simon Duckworth. They did a similar thing with coms before they handed the reigns over to DB. If you right about no placing then getting in a the same price as intis and MXCP is going to be more than worth a punt. Need a bit more meat on the bones for me but I do know MXCP can deliver and since they have not played their hand yet I will reserve further judgement.
Well, it can't be a placing at 5p because MXCP took them at 6.5p in the last placing. plus they stated they are making money now. MXCP would not allow a placing to dilute their holding so I think it's a shake before news. The most likely outcome is loans from MXCP to fund an acquisition. MXCP paid 6.5p Makes you wonder if it's good enough for them then what gives? I mean didn't they appoint one of their main men to the board here?.
Why indeed? - I cannot see any reason to buy if what we suspect, is coming
why buy now?
has done excellent job in keeping this going down! Glad to sell off before the rot sat in.
Will give PI's a chance to make money if 5p holds but it depends how many shares they create. If they double what's in circulation then I don't think the 5p level will hold. I expect news of a placing one day next week and will wait to see how much dilution is attributed. Not one for the faint hearted at these levels though/
Probably worth reading these posts again. Scally's "No Reason RNS" on 28th July was without doubt the time to sell or short. Well done to those who banked their profits at that time. However if a placing is on the way then even selling now could be a smart move.
Is the most likely outcome. They need a lot of money thrown at them imo
much better volume today , all sells though :>)