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Seems like we have run out of buyers? Seller still in background Thought we may have hit 4p after that upbeat comment by JF
I would like to see EK add to her collection especially at these prices after all JF bought slightly higher I think this stock is reasonably stable now
Strike that. Down to 1.23% now.
No. Might be correct as no trade for best part of 2-3 days. I don't know anyone at the company.
Have you put it to the company regarding the shareholding?
Director Shareholders updated. John Foley seems to of acquired 1% more of the firm. Unless this is a mistake? John Foley 2.25% Brian Tyson 0.53% Emma Kane 0.33% Gene Golembiewski 0.31% Rhydian Bankes 0.03% Other Shareholders SEC S.p.A 18.60% Hawk Investment Holdings Limited 16.26% Retro Grand Limited 6.57% Hargreave Hale 5.76% Fidelity 3.49% Gary Wyatt 3.25% Stephen Byfield 3.23% Ruffer LLP 2.97%
One impact on this merger with Redleaf will be the writedown of Redleaf 1.5M goodwill. This will have a negative impact on the results but should not be a cash one. I assume the Redleaf brand will go. We are gradually heading to one Newgate Brand. Unclear if they intend to merge 2112 and Publicasity.
https://www.holmesreport.com/latest/article/gavin-devine%27s-park-street-partners-appoints-10-senior-advisors Looks like his new agency has 10 senior advisors. Some big names in there. Plus 8 or so clients. I wonder why he could not make this work for Newgate? Perhaps wages were too high to make it work?
2112 - Total Gross Profit down 1%, Operating costs down 27%, Reported EBITDA up 175%, Adjusted EBITDA up 354%! '2112 Communications (�2112�), which after a number of loss making years since inception, went through a significant restructuring at the end of 2016; this resulted in a �0.3m EBITDA in 2017 (2016: �0.3m EBITDA loss)' So a 600k turnaround for 2112 over 1-2 years. Australia has gone from 8.5m gross profit to 15.3m in 2 years. Nearly doubled. Costs have risen in line with this. The new debt arrangements at 8% are set to offer 0.5m savings this year according to the accounts. The accounts also talk about reducing these rates as the company turns around. So maybe 4% is not impossible long term. More thoughts on UK operations. 'Newgate UK�s 2016/17 strategy of the recruitment of senior hires, launching a geopolitical practice and expanding its Public Affairs offering to drive top line growth has not been successful. Consequently, Newgate UK has been restructured to focus on the impressive and profitable work it has been doing over 2017, which was overshadowed by the carrying of significant profit compressing costs. In the interest of de-risking the business and bringing it back to profitability, the merged 13 Communications business and the geopolitical practice have been closed down, along with the removal, and in some cases replacement of non-performing costs. The result of this has been a significant reduction in the company�s fixed cost base, which on an annualised basis, represents a saving of �1.6m.' 'Similarly, a cost review has been undertaken at the Porta company level, which has resulted in the removal of �0.3m of annualised costs, as well as the relocation of Redleaf into Porta�s London premises at 50 Basinghall Street in February 2018, which will save Group rent of �0.2m (annualised).' So annualised saving of 1.6m from these changes. Plus a 0.3 reduction in costs. Geopolitical division gone. Plus 0.2m saving from Redleaf moving offices. These cost savings and stripping out of poorly performing areas are really going to help 2018's bottom line. Hopefully also with reduced costs from the 2 CEO that will have left after May 5th. Overall we know that the performance of Newgate UK is not good enough. Also CAP and teh Middle East operation which is losing money. Not suprising given the tensions in the Middle East right now. Not so sure about CAP but they own about 43% of this now. We know the Newgate Asia is doing well.So many large Australian government projects ongoing. Plus plenty of new business and projects in HK and China. Redleaf, Publicasity and 2112 are all doing well. The increase in ownership of HK, Redleaf and Aus pty will only add 200k+ to the bottom line. 2018 will include a lot of costs but i think H2 will show a strong set of figures given all these cost reductions. This should
http://www.gorkana.com/2018/05/laura-leggetter-to-lead-redleaf-residential-property-team/ Seems a pretty big hitter. 'Redleaf Communications has appointed Laura Leggetter as managing director of its Residential Property division. Leggetter�s portfolio at Redleaf will include the likes of Six Senses, Countryside, The Office Group, Ronson Capital and Allsop. She most recently led the property team at LUCHFORD, where she significantly grew the team since 2014, scooping clients including Capco, Lendlease, Lodha and Dukelease. Her career has also spanned eight years at FTI, as well as being a former mentee in the PR Week Women in PR Mentoring scheme and CIPR Young Communicator of the Year. Leggetter said: �I am thrilled to have joined Redleaf at such an exciting time. Being part of the wider Porta Group and with access to specialists across financial services, digital, research and consumer, my new role offers opportunity for sharing expertise with clients regionally, nationally and internationally.�'
For entire group adjusted pre tax profit of 1.1m.. So with 1.9m cost savings this shows promise. David Wright was paid �283k over year including 188k loss of office payment. I assume this was a payoff. Steffan was paid �372k over the year. Huge salary for a firm making a loss. Gene Golembiewski was paid �294k. Some senior accountant could easily earn this. In effect we have paid for two CEO this year. 300k taken from the bottom line. Hopefully these costs will be reduced for 2018. Uk operations - 'The bulk of the operating cost increase was in employment costs, which increased by 22% from 2016, but ultimately did not deliver the required level of Gross Profit to justify the increase. As a result of this, an in-depth review of the business commenced in Q4 2017 and to date annualised costs of �1.6m, being 22% of 2017�s employment costs, have been stripped out of the business, with a comparatively immaterial loss of Gross Profit, and hence dramatically improving the Company�s performance to date.' So they have slashed 22% of staff costs in UK. Not suprising given the below. 1.6m saved with immaterial losses. Total Gross Profit down 0.2% Operating costs up 11% Reported EBITDA down 427% Adjusted EBITDA down 182% Will look at this more later. Some of the Asian businesses have been booming.
So plans to purchase rest of Redleaf, and various chunks of other firms Porta part own. So Redleaf, Newgate PTY and Newgate HK. ' Newgate Communications Pty Limited (Newgate Australia) in consideration for the acquisition by Porta Communications Plc of a further 4.43 percent of the shares in Newgate Australia; (ii) allot equity securities to the vendors of Redleaf Communications Limited in consideration for the acquisition by Porta Communication Plc of a further 19 percent of the shares in Redleaf Communications Limited; and (iii) allot equity securities to the vendors of Newgate Communications (HK) Limited in consideration for the acquisition by Porta Communication Plc of a further 20 percent of the shares in Newgate Communications (HK) Limited' Worth reading options 7-10, Which includes share buybacks, political donations and the above.. Not read through the 114 page report on the accounts yet. The report as of 4th April shows no changes to major shareholders. Albeit we know Hales Hargreave is buying shares under a venture Capital firm.
Appears to be a lot of buy and sell test trades here and on NEX.. I wonder if more directors will use this lower price to buy in. If HH is the buyer here and the seller still have millions of shares they will want price to drift before buying high volumes. See what tomorrow brings.
I have been critical in the past but you do know your onions. keep the good work up
As predicted 2 trades yesterday was a director. Emma Kane buying shares. Perked up share price by 9%.
Very nice shows faith
Good summary as usual Onwards and upwards Can’t believe what I am saying after my criticism of the BOD only a couple of months ago
If you exclude one off which includes about 500k for redundancy costs I think they actually made a profit before tax. Also the 300k for the new loan facility and other A and D costs. They have cleared a lot of the bad news in these results. I think 4-5p here is very possible. Results on Monday as they plan a few director buys during week. Build up the hype.
All three trades happened within a minute of eachother. That was my logic. They could also be the reason for the 66% jump last Friday. In which case more likely HH or Morton. If directors could be someone else. They do appear to be sorting out whats left from all these purchases David Wright made. That much gives me confidence. Emma Kane has shown great business sense here. She knows what she is doing.
Could be anyone buying After all it appears the tide has turned Long way to go but my confidence has returned with this new BOD
Just noticed a 20k/30k trade. These could be directors. Out of sync with the normal trade patterns. See what happens.
https://www.prweek.com/article/1463326/porta-boosts-full-year-earnings-amid-senior-team-reshuffle (Google article if it won't display.) Porta result also state - The financial performances of Newgate Australia, Newgate Singapore, Newgate Hong Kong, Redleaf Communications, Publicasity and 2112 were all either excellent or much improved during the year. Publicasity PRWeekly suggest gross proit down 8% but ebidta up 20%. Which menas better margins. Redleaf revenue was actually up to 4.3m with profits up 80k. '2112: Following a business restructure in Q1 2016, 2112 improved its financial results in 2017, with adjusted EBITDA up 354 per cent ' (PR Weekly.) Newgate UK. 'Although Newgate Communications brought in 72 per cent of Porta�s gross profit, its financial performance was disappointing overall, with total gross profit down 0.2 per cent and operating costs up 11 per cent, primarily down to employment costs.' (PR Weekly) This has always been the big whale in the room. If Redleaf can make 580k profit on 4.3m why is Newgate UK not doing the same? Too much management? Is small beautiful. So overall there are many divisions here doing well. Just need to get Newgate UK back into a healthy state. That and sort out Capital Access Group.
Revenue circa 40m up from 37m. (19.44 in H1) Cost of sales 6m down from 7.4m in 2016. So improved margins? How did they reduce this by 1.4m? H1 was under 3m. Ammoritisation and Depreciation 2.3m Lots of write offs including Summit ,13 and a smaller operation. Impairments 511k Restructuring costs of 611k. These 3 account for 3.4m of the loss. 1.4m tax charges accounts for the rest of it.. Reported ebidta 2.8m vs 1.16m in H1. Operating and admin costs up nearly 4m on 2016. Overall they are throwing in quite a lot of admissions that previous purchases were not great. 13, Summit and Capital Access Group. CAP are eating cash and making a 300k loss. They impaired this to value of 863k. Redleaf lower revenue but higher profit. Redleaf profits up 81k. Newgate pty revenue now at 14.1m. Profits at 1.357M. Up nearly 500k. Debts at 8.4m. So cash in the business has not changed hugely. Still issuing shares here to 3rd parties. Overall they are closing non profitable elements of the business but even with this revenue up by 3m. Suggestion revenue could be hit and costs from further restructuring in 2018. I guess see what happens. They seem to be gradually managing the costs of the UK operations. Which explains all those staff leaving as I previously pointed out. Worth reading section 25. The Company received a two year rent free period as a lease incentive. The total minimum lease payments are allocated over the lease term evenly and therefore rent charge recognised in the Statement of Comprehensive Income is different to the contractually committed cash outflow. So longer they stay there the cheaper the rent? Lots to work out here. You never get clean figures from Porta. It's working out what cash the business is making and how much of the losses are purely write downs of brands etc.
A lot has been done to sort this company out - and no doubt the figures will include the kitchen sink. The new appointees plus a top class chairman and all the dead wood gone - this is now a fitter, leaner company in which the chairman bought 4.7 million shares (cash not options !) at 3.5p in January - my fiver would be on excellent profits and a 7-10p share price within 12-18 months
5.5m loss after 3rd party dividends. 1.9m cost savings in UK. Australia the star here. UK element gobbling cash.