Good to see AL adding again. It wont influence the sp but certainly gives me added confidence in holding here
13 Apr '15
NETPLAY TV the interactive gaming company delivered its full year results to the market, which revealed a large drop in pre-tax profits, that was somewhat muddied by impairment charges and the amortisation of intangible assets. Holders of the shares would also no doubt have been disappointed by the lack of previously muted news on a potential return of some of the large £14.2m cash pile which accounts for a large chunk of the £25.5m market cap. I guess the problem the company faces and indeed the dilemma posed for investors is whether the business is capable of once more delivering growth, which in previous years had been pretty marked, but which has recently stalled. The much publicised point of consumption tax has been the culprit, being something of a dark cloud hovering over the business and in its statement last week the company added that the full environmental impact of this was yet to be seen. It went on to talk about being in a strong position in relation to mergers and acquisitions to perhaps counter concerns and that appears to be an area which would seem to be on the agenda. On a positive note, its relationship with Chanel 5 has been strengthened and its agreement now runs until 2018, while a seemingly decent final quarter of 2014 appears to have extended into the first quarter of this year. Looking at the forecasts for this year the pre-tax profit of £2.65m as highlighted by N+1 Singer gives EPS of 0.9p and a PER of 9. While given the chunky cash position that appears to look cheap, the unknowns regarding the POC tax and longer term uncertainty as a small operator are likely to continue to plague the company. The shares are back down to 8.6p and are I would guess, destined to remain subdued for the foreseeable future, although the cash should at least provide a level of support. In my last comment on the company here, I was tempted to take an interest around this price and the shares did briefly rally to 10.5p. However, even allowing for a decent yield (dividend upped by 10%) the uncertainty is for me pretty much tantamount to a mere rolling of the dice and on that basis I will not be getting involved. Having said that, Netplay may be worth keeping an eye on as further industry news unfolds, while should the shares actually retrace markedly in the short term, they may also be worthy of another visit.
As Simon has this share in his bargain shares 2015 picks, will be interesting to see his comments on these results. maybe today if not by Monday.
9 Apr '15
RE: RNS Final Results
Good Morning Alexia', Fancy finding you here ;-) Yup, 'agree...results are in line with expectations, plus... ...." an encouraging start to 2015 ".... ...." organic growth will be supported by an acquisition strategy " Dividend now paying 0.55p = 6.1%... so half way between TTR & GVC So, I'm happy to hold...( although I did top slice some of my 7p-ish stash at 10p+ earlier ) Very best regards, as ever, Blue
9 Apr '15
RNS Final Results
After all the doom and gloom around the point of consumption tax the results are acceptable to me and reinforce my earlier decision to hold here. Cash in the bank and a decent dividend plus a sensible forward strategy by the BOD. There will be plenty of pis with small investments selling with the hope of making quick easy money elsewhere IMO. I intend to top up if the sp continues to drift down from here. GLA
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