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Don't sweat - the FTSE250 is more representative of UK industry than 100 and it's still down despite recent rise. The 100 covers mainly stocks with big international earnings.
Just a general observation: Footsie is around 300 points higher today than it was on 1st of June, yet my portfolio is still around 12% down compared to that date. Anyone else have that sinking feeling?
The client list for Porta is both impressive and diverse and it is punching well above its current MCap weight IMO. David Wright has assembled a comprehensive group of businesses that are in the process of being 'knitted together' by Steffan into a differentiated and integrated multi-platform business. The vision is now materialising and attracting bigger clients who want a one-stop approach to marcom. The increasing emphasis on reputation management plays directly into Porta's strengths given last years inclusion of PPS into Newgate. There is certainly a level of adrenaline circulating in Skylight City Tower that's grasping the baton and ready to run with it. Let's hope the market warms to the level of client satisfaction that is on offer.
I didn't post everything I noted down. Certainly did not intend to steal your great work at the AGM. Unlike me you came prepared with a list of 7-8 questions and you certainly asked them. You covered most of my questions anyway. Share has drifted slightly today. Till this seller clears this will be an ongoing thing.
Good to meet you at the AGM GoTrader. I think you’ve covered most of the pertinent points. I was very pleasantly surprised by the increase in the number of attendees this year over last years AGM. It was a confident outlook in uncertain times post-Brexit highlighting the recurring nature of many revenue streams and the resilience of overseas earnings but also adding caution concerning the London IPO market.. Porta’s offering of integrated communications, reputation management and marketing give it the flexibility that companies are increasingly seeking. The fact that senior figures with influential networking overlaps are joining the business bodes well for the future. I note with interest the targeting of the insurance sector for increased exposure. Steffan, and also Gavin, are of the calibre that will start to attract bigger accounts as the comprehensive communications package is rolled out. The inclusion of a representative from Capital Access Group in potential client discussions also allows for and promotes cross-selling of services. Refinancing the debt at a considerably lower rate than 12% should now be possible given the positive cash-flow and emphasis on acquisition-free organic growth. None of the businesses within the group is loss-making. The gradual taking back control of Newgate Australia and Redleaf will enhance earnings as dividends will revert back to the business. The turnover of £34m makes the MCap look very undervalued at just £13.6m - Similar [but undifferentiated] businesses are valued at around 2x fee income and if the debt can be renegotiated and earn-outs reduced it will directly benefit the bottom line. Porta has succeeded in creating brand differentiation in its integrated service model; the task is now to attract more and bigger accounts. Porta’s own investor communications is recognised as lacking drive. The company needs to highlight the extremely conservative accounting policy it takes on intangibles. The increase in A&D was due to all three acquired subsidiaries in 2014 having their fair-valued intangible assets eg Customer relations and Brands amortised in a single year to Dec 2015. Steffan is ‘polishing the rough diamond’ that Porta represented on his appointment under the seasoned BoD led by David Wright. Gavin Devine should now be adding another layer to the evolving business. I would really urge the Board to rebrand the group under the internationally recognised ‘Newgate’ banner as I am sure that this would immediately enhance the profile and exposure for minimal outlay.
Not a huge trade but given last sell price looks like a buy. Let's see what happens today.
Share trades have picked up now. At 11.24 there was a 200k and 50k trade on LSE and a 200k trade on ISDX. Might explain the 8% spike here. I also wonder if more directors will buy in. Someone is stillbuying up stock here. I think the SP should really be closer to 8-10p here. 34M revenue yet a share price valuing firm at 13-14M. I doubt they would sell up below 10-15p. Share is not helped by many frustrated investors here selling up. Someone is buying up the sold shares here. I wonder how far they are off 3%?
Overall very positive. Looks like they are looking to long term refinance Porta. No acquisitions are being planned. Directors not locked out. They don't know who the seller is as they use a nominee name to sell the shares. They acknowledge the current share price is below the actual worth of the firm. More news should follow in coming month or 2.. They will focus on organic growth for now. They tend not to mention new clients as some customers don't want this. They pointed out many other PR firms are struggling with market conditions and some have issed profit warnings. They plan to announce a new hire on Monday. He apparently started on 01/06/2016. These new hires are bringing in new business. Some of the 1M savings promised are also starting to come through. I am sure Adastra can give a more thorough reply on his return. There were about 15-20 people attending. Plus directors. Overall they seem to know what they are doing.
no profits has been the problem for some time. have said a few times before they just buy when anything is generated capital wise. not surprised at the drop.
It looks like they have massively overpaid for their acquisitions, disgraceful given the salaries they have awarded themselves. Managament failure on a grand scale.
Will see what they say at AGM. Starts at 11. Adastra should be on his way. Yes I saw that post too.
As someone highlighted on another board - £43m spent on acquisitions over 5 years and we now have a market capital of £12m. Now that is what I call creating shareholder value. This has turned out to be another dreadful aim share where I have seen my initial investment decimated!! Note to management - pull you fingers out and start delivering shareholder value please. Note to self - don't touch aim with a ****ty stick.
It would look rather arrogant if they didn't mention the Brexit at all. All companies are uncertain about this. On positive side the weaker pound will help with profits from Australia, HK/China, Singapore and Abu Dhabi.I suspect we will find out more from the AGM. 5-10% drop in pound could be worth 100-200k to Porta in terms of profits made last year there. 5/6th of Revenue for 6M last year would be about 14.4M. So six months could be 17.5M+ if they match these figures?
They don't sound very optimistic.
Well that didn't really tell us anything. We knew about Brexit and the pound dropping already. Considering cutbacks they made last year looks like fee income has recovered to at least match that. Strong underlying trading does not indicate if the firm is making or close to making a profit. Hmmm.
AGM Trading Statement Porta Communications Plc, the AIM quoted international marketing and communications business, will make the following trading statement at the AGM. After five months of the current year to 31(st) December 2016 underlying trading remains strong and fee income is running slightly ahead of this period last year. The run up to the UK Referendum and the subsequent outcome created and continues to cause uncertainty. Our geographically diversified businesses covering not only the UK but the Middle East, Far East and Australia are well placed in this context. Moreover the non-UK businesses will on consolidation be beneficiaries from the sharp drop in sterling. Meanwhile we continue to build for future organic growth and our strategy to hire senior proven talent, particularly in the UK, remains in place. Whilst the Board remain confident that our growth strategies will deliver results in the longer term forecasting the short-term outcome in all the current uncertainties would be unwise.
I think they knew whatever happened the AGM would be timed perfectly. So no panic announcements here. I don't believe the SP has any true reference to how the company has done in last 6 months. Fingers crossed for AGM. Keep us posted Adastra.
Looking at the surge in activity on Newgate Twitter and meeting activity it would appear that communications are being thrown into the spotlight with Brexit as industry bosses and bankers try to unravel the implications. This could really work massively in Porta's favour as markets stabilise and grasp the opportunities. I think that fate has played into the hands of Porta in that it now has the critical-mass team in place to address the needs of our industry and commerce.
Fair to say this share is tanking. If we have a mystery buyer they are only willing to do so at bargain basement prices. We also have someone dumping shares each 1-2 days. My guess is small investor or fund? Unless lots of small investors are selling up?? Doubtful as ISDX is not that busy. Also we keep getting these rogue 1000-2000 share trades. Brexit has clearly not helped here. The big downside will be lack of IPO in the UK. This uncertainty could last 1-2 years. Fortunately Porta is not just based in the UK. Overall Porta needs to attract new investors here or use it's own funds to buy back shares. It can then issue them to buy back parts of Aus and HK business as per the AGM resolutions. I am guessing the directors are still locked out.
We need a real strong trading statement at the AGM on Thursday. I suspect that the need for corporate communications just actual escalated rather than slowed. Time will tell.
I thought it wise to clarify. SP seems to be drifting here. I expect a strong trading update based on comments from results. See what happens next week. Redleaf news feed seems very positive. All eyes on Newgate London.
Apologies on that last post, typed quickly as I was on phone and didn't notice. The original audenshaw@mail.com was correct, and Yes, I do have one from yourself. Anyone wanting questions to BoD at AGM I'm happy to accept from shareholders unable to go. It is mail.com on this one, NOT gmail.com.
Your email has now changed? Probably why you got not many emails.
Hi GT; I agree it certainly looks like Redleaf have spotted a valuable niche in the sector. I am going to the AGM with a colleague next week so if you have any burning questions to ask let me know. Thanks to those who have already posted to me incidentally. Please mail any relevant questions to audenshaw@gmail.com if you are a shareholder who is unable to attend and I will try to put them to the BoD on the day.
Insurance comms specialist, Simon Hayes, is joining Redleaf Communications‘ senior team as director. http://www.gorkana.com/2016/06/redleaf-appoints-simon-hayes-as-director/ Looks like Redleaf are making a push on the Insurance sector. Especially after that award for their insurance campaign. My guess is Redleaf seems to be doing very well here.