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Would certainly help balance the disparity between Newgate Australia performance and current total company MCap. Newgate Australia increased revenue by 11% in H1; sensible to bring on the stars and continue to help escalate growth. Its an obvious platform that's growing strongly in a receptive market and could be the engine that drives the rerate all the way back to the UK.
Directors MUST be locked out for some reason. I suspect that two specific lines in the interims are relevant viz - Australia once again has turned in excellent results and plans are being implemented to significantly increase the size of the business. Growth has been strong across all parts of their business, in particular research and public affairs, for both state and federal Governments. For what its worth I think a dual listing on ASX would certainly help given the business growth and desire to increase it. I am sure that the BoD must be looking at a way round any dilution at this low level as previously stated and a dual listing would be sensible. It would also prevent directors buying at present.
The annoying thing here is our mystery buyer chirping in with all these buys is happy to let the sp drift. The results did have some positive numbers there. Marketing seems to still be posting a loss. Directors must be locked out here. Can't be acquisition. Could be refinancing?
£1.3m in cash and all parts of the business doing well post-Brexit yet the response is currently negative - bizarre. http://www.proactiveinvestors.co.uk/companies/news/166670/porta-says-the-outlook-is-improving-post-brexit-166670.html I would have expected this kind of reaction to a dire outlook not a bright one - heyho.
Most of her remaining stock is locked in. She is not the seller here now.
Do we know if Emma Kane is finished selling? Do we know if the company has shareholder approval to issue options to the new hires at these levels?
Isdx shows nearly 389k bought. None sold.
In the interim accounts work in progress has risen by 60% from £724k to £1.15m [H1 2015 to H1 2016]..... that's a 60% increase and hopefully continuing now we are in clear water.
The recent appointments of Steffan, Gavin and Charles were successively made to specifically address just that. Indications are that rapid progress is being made in integrating the 'pod' units into a cohesive and unique platform. This is most evident in Newgate PPS but appears to be accelerating across the businesses as Marketing is now benefiting from running alongside Communications to provide a comprehensive Marcom offering. It is encouraging to see that this aggressive approach appears to be gaining ground as several recent contracts have opted to take multiple rather than single options. Porta is positioning itself as a one-stop-shop for all aspects of communications and marketing and it does appear to be gaining traction. If, as you point out, this cohesive strategy is being successfully steered by these senior engagements, then the upside could be substantial given all the factors that I've highlighted below. A lot of revenue is recurring in nature giving scope for strong growth for a truly integrated group growing organically. Even static revenue at 3.5 times current MCap is making Porta look cheap if management can streamline operational cohesion. The RNS is one of the most confident I have seen for a while on outlook given Brexit uncertainties. Market concensus is that the pent-up demand for IPO's will now start to increase markedly in Q4 2016 and accelerate into 2017. This provides plenty more opportunities for continued growth. Looks promising - now management ave to show their mettle and turn the positive outlook into results. At least they now have a tailwind rather than a headwind.
Year end cash £1.7m - an extra 15% of Redleaf bought leaving £1.5m cash. Revenue of £18m in the first half with post-Brexit business now noticeably improving across the Board. Strong earnings up 11% in Australia and growing...................and a current MCap of just £10m with quality hires generating fee income "from day one of their appointments". Surely this merits a little interest from growth funds at this level.
With all these subsidiaries in the communications space, the Board have done a poor job for the parent company. Having all these pod profit centres is one thing, but they need to be joined up at group level. David Wright has had previous success accumulating pod units but at group level you need to be doing more than just the consolidation. For the last couple of years the group looks to have been rudderless, and a bit out of control. The Emma Kane share sales are symptomatic of this. Just ahead of the interims there's a big, but unknown seller around who's banging out stock with some zeal; very disquieting. Then the night before the interims it's Emma Kane; very clumsy. If the senior management can now start running this group cohesively the stock is cheap.
Hi GT. Currency effects from Newgate Aus will enhance H2 as exchange benefits only kicked in from June 23rd at close of H1. Good to see that cash resources at end H1 held up at £1.7m thats 17% of our current MCap. Just under £500k has been spent post year end on acquiring the extra 15% Redleaf but all the indications of increasing traction across the businesses look good. Porta has a prudent and seasoned Board with an increasing number of quality management hires. The note that each has been fee generating 'from day one' of appointment is testament to the networks that they bring with them. Nadir passed.......onward and upward.
Doubtful Drew. Still funds soaking up stock. I think directors may still be locked out. Otherwise I expected an RNS. Not a huge amount of trades so far. No mention of currency in report.
I expect this will end the day in the red.
Not unexpected hit from the Brexit effect but contained at 1% due to strengthening overseas exposure, especially in Australia as predicted. Newgate Australia alone now commands a price in excess of whole company current MCap IMO given its client base and contracts. The fact that business was strong before the vote, hiccoughed, and the dip is now past is promising with outlook in all component businesses improving. It is that outlook that we were all waiting for as there are several pivotal factors occurring in H2 as a result of debt roll up and senior appointments. The ones that stand out for me are: All of our senior hires thus far have generated fees from day one The UK business was subject to some degree of slowdown in the run up to and immediate aftermath of the referendum on Brexit - However, business has picked up noticeably since. The profile of Newgate and PPS has grown in recent months - the pipeline of new client prospects and high profile hires for both Newgate and PPS has strengthened significantly in the last couple of months. Publicasity, which focuses on B2C and B2B markets, has been very solid throughout the first six months with an encouraging level of new business coming through towards the end of the first half, such as BSH Group (which includes brands such as Bosch, Siemens and Neff), and also won a large confidential piece of business from a major UK retailer. The outlook is undoubtedly strengthening all the time now that the Brexit vote is behind us, but we cannot relax our resolve in growing the business. We can say with confidence that the platform is there to continue driving the business forward............ All in all we need to see cashflow increase as bigger clients engage with Porta. Disappointed that Gene has still not not sorted the onerous loan debt and that work is needed to keep margins higher, but it does look like new hires are hitting their briefs and aggressively building the client base. We have the key people and now have scale of operations in the UK and in Australia. Given an acquisition free H2 lets make these assets sweat and drive the business forward. Key factor will now be seeing new directors buy shares as a sign of belief in their own strategies; assuming they are not excluded from buying due to pending expansion. The £10m MCap really does not reflect a multi-platform company with predicted annual revenue of over £35m.
So Asia and Australia are growing fast but London is stalling here. This bodes well with exchange rates. All parts of the business seem to be gaining clients. PPS winning a confidential retail business sounds good. Also the FTSe100 work sounds promising. I was guessing 0.3-1m loss assuming no D and A. So I was somewhat right. The new director already has 900k shares already. No director buys here but perhaps they are waiting or still locked out here. The results are not a disaster really. No one expected a profit.. 600k before D and A with a near 400k hit from distcontinued operations gives a glimpse of break even. Refinance the loans and you soon halve debt costs. The 120k hit from refinancing loan is not good. Overall debt seems to be up to 8.5m now. From what they have said second half of year seems to be much stronger. See how market reacts.
The profile of Newgate and PPS has grown in recent months, in large part due to the high profile hires we have made. As a result of these and other steps forward in the business the pipeline of new client prospects and high profile hires for both Newgate and PPS has strengthened significantly in the last couple of months. Publicasity, which focuses on B2C and B2B markets, has been very solid throughout the first six months with an encouraging level of new business coming through towards the end of the first half, such as BSH Group (which includes brands such as Bosch, Siemens and Neff), and also won a large confidential piece of business from a major UK retailer. Aus/Singapore and HK all doing very well and winning clients. In addition to Hong Kong's existing retained client base, a number of new retained and project clients were won during the period including Asiya Investments, BFAM (in connection with the Kaisa debt restructuring), Franklin Templeton, Merril Corporation, Maxnerva and Permira. Singapore won or renewed a number of retainer contracts (at higher rates and with enlarged scopes of work) for the regional property giant Ascendas-Singbridge, the diversified conglomerate Pan-United Corporation and the high-profile law firm TSMP Law Corporation. Singapore also advised on a number of capital markets transactions, including the successful takeover by Baring Private Equity Asia of locally-listed UE E&C and other confidential briefs. Out look Over the last few years the building blocks have been put in place with the result that we now have scale operations in several markets including the UK and Asia-Pacific. The potential of these operations and the platform we have created need to be driven forward through operational enhancement and further strategic development. The outlook is undoubtedly strengthening all the time now that the Brexit vote is behind us, but we cannot relax our resolve in growing the business. We can say with confidence that the platform is there to continue driving the business forward.
New clients won including Sompo Japan Nipponkoa, Permira, Legal & General Investment Management and the Rugby Football Union. Gross profit down 1% despite the impact of Brexit, offset by organic growth in Asia-Pacific of 11%. Commenting, David Wright said: "After the first five months the Group was running ahead of budget. In our May 2016 trading statement, however, we indicated that the uncertainty caused by the referendum and the subsequent Brexit vote had a marked impact on project work in the UK where we are particularly exposed to the housing and property sectors. "We have continued to attract senior, proven staff to our team due to the quality of our platform. These hires help improve the number, quality and conversion rate of our client opportunities. "Porta is now moving into a new chapter in its development. We need to re-present the company, its strategy and to deliver greater value by building on the good work that has taken place thus far." PPS hit by housing and brexit. Australia was their star performer. In the period I was delighted to welcome Gavin Devine and Charlie Chichester in London. Gavin was hired as the COO of Porta and will help us grow the Public Affairs business in the UK and Europe. Charlie joined as Senior Partner and heads-up the financial practice in London. Both have made an immediate impact to the business. I was also very pleased to welcome Fiona Court and Nick Maher to our Australia business. Fiona, who joined us as a Director, is a specialist community relations practitioner who will work on expanding and developing a dedicated practice area in this space. Nick Maher was a former Partner of his colleagues in Australia. He is a highly experienced public affairs and communications advisor who re-joined us as a Senior Adviser. Nick recently served as a Chief of Staff for the Australian Government in infrastructure and regional development in 2013/14. He was also the Head of Government Relations for the Property Council of Australia in 2015/16, based in Canberra working on tax reform. We are increasingly attracting such talent - drawn by our integrated approach which is fit for purpose in the internet age. All of our senior hires thus far have generated fees from day one, Good progress has been made, with the business advising on several transactions, including Samsonite on its acquisition of TUMI, Glencore on the sale of a partial stake in its Agri business and Blue Prism on its IPO. Newgate also advised Third Energy on securing the first planning permission for shale gas exploration in five years. The business has also increased its focus on pensions advisory work over the last 12 months. The team, which includes public policy, media, member communications and training experts, has acted for several FTSE100 schemes.
D and A is 1.323m 387k hit from discontinued operations. So that is 1.7M worth of the loss. 310k to non controlling interests. That get's you to the 1.9m number.
Looks like a 1.8m loss. Need to work out the numbers.
Porta Communications Plc, the AIM quoted international communications and marketing group, is pleased to announce that John Foley has today joined the board as a Non-Executive Director. The Company announces that Brian Blasdale will be stepping down from the board with effect from 30 November 2016. Commenting, David Wright, Chief Executive of Porta said: "We thank Brian for his valued contribution to the Company in his time as a director and wish him well for the future." "We welcome John to the board. John brings a wealth of board experience having over 27 years of continuous involvement on various public company boards as either Chairman, CEO, CFO or Non-Executive Director." Further information on John Foley John is a co-founder and Chairman of AIM quoted niche services provider, Premier Technical Services Group Plc. John is also Chairman of Servoca Plc, the AIM quoted staffing solutions and outsourcing provider. He was previously Chief Executive of MacLellan Group plc ("MacLellan"), a facilities services company, from 1994 until it was acquired by Interserve plc for an enterprise value of GBP130 million in June 2006. At the time of John's appointment, MacLellan was loss making, with a turnover of circa GBP5 million and 50 employees. When it was sold to Interserve, MacLellan had a turnover of circa GBP250 million and a profit before tax of circa GBP9 million, with 13,500 employees. MacLellan grew through a series of acquisitions and organic growth. John is a Chartered Accountant and barrister. John holds a beneficial interest in 965,079 ordinary shares of 1 pence each in the capital of Porta, representing 0.3 per cent. of the entire issued share capital. John Robert Foley, aged 60, is, or has been, a director or partner of the following companies or partnerships during the past five years:
Hi Toad. I doubt Emma Kane would have been privy to any information other than through her role at Redleaf. Whilst she heads the Redleaf team she is NOT on the board at Porta so would not be privy to tomorrows interim RNS. That's what makes this more intriguing since the other operations and their performances will only be known to operations directors individually and the Board collectively. As GT points out, this could be part of a partnership sale where tax liabilities and HMG gains payments are being paid off this tax year. It could also be driven by a move to bring in a new institution whilst allowing her to retain her holding at a previous level I'd circa 5m shares. Frankly I don't know, but I do know that the last trading update in June stated that revenue was ahead of the first 5 months in 2015. Despite caution over Brexit, there has been no indication of any significant downturn (10% would merit an RNS in most companies). There will be more than a few raised eyebrows if this sale appears to have been 'opportune' so I sincerely doubt that Emma Kane has any prior knowledge of the contents of the interims save for her own watch. It could also be that the enhanced Newgate public communications team and operating officer is repositioning Redleaf in the integrated services platform with a possible difference of direction??? We'll soon know. A nice clean set of interims with a manageable loss and accelerating outlook would be acceptable. If the loan debt has indeed been replaced by FD Gene then I'll be impressed on two counts. I don't do sleepless nights in companies that are not one-trick ponies. Porta has a variety of complementary businesses with a high level of recurring revenue so should weather any hiccough like the current post-Brexit uncertainty.
I can't get past the fact that Emma Kane has sold the shares at this price. She must surely have been privvy to the draft release for tomorrow and presumably this gave her reason to sell at just over one third of their face value. Would you sell your ten pound notes for £3.70? Only if you knew that was as much as anyone was going to get. The rest of her holding would be limited to an arranged sell. Despite all the speculation on this BB and others that this share has huge potential the RNS today is not commensurate with that optimism. Sleepless night ahead.
The shares Redleaf could sell were 6,998,050 shares. These were spread over the 3 stakeholders of Redleaf. Emma Kane has cleared 4542434 shares here. Leaving 2.4 or so million shares with other stakeholders. One had no reason to inform the market if he did sell. We know we had 1.7m shares sold here around same time as the sell order for 4M shares. That makes around 5.7m shares. So could it be possible that Emma Kane and her partner's shares were held in one account and they simply asked a broker to sell them? I have counted circa 9.4m buys here since 19th Sept. Albeit some could of been actual sells. We had 1.75M sells since Monday. So other sellers could be at work here. That 950 share sell today hints the seller around May time could still be about. We have horse traded nearly 4.5m shares since the results in May up to 14th September. These small sells of 900-3000 shares were a signature of one of the seller. It's not clear this seller ever finished clearing their stake. So overall in 4-5 months sellers have clear 12-15m shares. Who has been buying up all these shares? I suspect tomorrow that question will be answered. PR timing. I wonder if someone is actually offering to buy out stakeholders?? Take over?? I agree with Adastra we need to wait till the results to see what is really going on here.
So many contradictions which will hopefully be clarified in tomorrow's interims. New appointments of Steffan Williams, Gavin Devine and Charles Chichester in the past 12 months should be ramping up growth. Emma Kane of Redleaf held 4.5m shares, collected another 5m from sale of a further 15% of Redleaf and then sold 4.25m to leave her holding an increased 5.25m but less control in Redleaf. So.......did Ms Kane need the cash to cover costs or I what. We know that Steffan and Gavi were brought in to streamline Newgate management etc but has this overlapped now to Redleaf. Redleaf appears to be weathering the Brexit changes well, but we should get a clearer picture come tomorrow. Could we be flying a Newgate flag rather than Porta? I suspect a big shake-up in the business helping increase productivity but new appointments may hold back the bottom line. As long as cashflow is still positive and rising and the outlook good, then we should start to see more interest from institutions which is the lifeblood to get Porta's MCap rising. Whatever the outcome, the timing of this transaction and today's RNS certainly doesn't help, whatever the reasoning.