Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Last year's "ahead of expectations" trading update was on a Monday, the 23rd January. A Monday RNS normally indicates good news (as opposed to a Friday!) - let's hope this coming Monday fits that scenario....
It was certainly encouraging to see the company issuing (at 211,000 a relatively limted number of) options 10 days ago - exercisable at 95p. There wouldn't be much point in doing so at this time and at such a price if the results were going to be disappointing.
Fingers crossed :o))
There should be a TU coming next week. Progress is continuing hopefully.
Good to see the share price move up 5p after just a 2k buy. Likely not much stock around.
Happy NY Rivaldo. Good to receive a small dividend from TST. Not much sign of them buying back shares yet but perhaps that's still to come. Last year they gave a TU in January so let's hope for some good news soon.
(I saw you popping up in the SWG chat too - hopefully that's another small company on a similar trajectory to TST. I opened a small position in SWG last month.)
Great to see the newly introduced interim dividend hitting my bank account last week - a sign of the company's confidence going forward.
HNY to all TST holders - much to look forward to methinks.
TST are publicising their move into the American markets:
Https://www.touchstar.co.uk/blog/usstrategy
"Strategy Update: Touchstar Fuel Logistics in the USA
11 December 2023
Strategy Update: Touchstar Fuel Logistics in the USA
Touchstar has embarked on a strategy to extend it's market penetration to North America and Canada. As a market-leading European supplier there is already huge interest within the US market as epitomised by the recent press coverage in two leading industry magazines.
Butane-Propane News currently has a feature in it's December 2023 edition entitled "Assessing Challenges & Changes Within the Fuel Logistics Industry". The article features an interview with our Sales Director, Gordon Hyland, and can be viewed HERE.
LPGas magazine is currently running an article entitled 'Touchstar Technologies eyes North American LPG market'. This feature can be found HERE.
Touchstar will be consolidating it's strategy via an aggressive sales & marketing campaign which entails PR, extensive online & offline advertising, partnership formation and attendance at various key exhibition events. The first key trade event is 2024 Southeastern Propane Expo which is taking place at the Charlotte Convention Centre between 5th & 7th April. If you're attending and wish to meet up please contact mike.turner@touchstar.co.uk or visit this page and hit the appropriate 'want to meet up?' button."
News of a scale-up contract win with a "leading food distribution company":
Https://www.touchstar.co.uk/blog/pb-orderannouncement
"P&B Foods Select TouchStar to Support Continued Growth in Data Capture Operations
11 December 2023
UK-based rugged mobile computing providers, TouchStar Technologies, is pleased to announce that P&B Foods, a leading food distribution company, will be rolling out additional rugged mobile computers within their state of the art, Bradford based operation.
The Project
With rugged mobile computers already in place to scan, track and manage goods, P&B recognised the value of these devices in supporting efficient and streamlined supply chain processes. A recent growth in capacity and throughput meant that P&B Foods were looking to scale up their data capture operations within their picking function.
Indie Bhatoa, Owner at P&B Foods comments, “Following our continued growth, we knew we needed to make the additional investment in the IT infrastructure that would help us manage sustainable growth. Having worked with TouchStar on previous technology rollouts, we knew that they were competitively priced and offered a high level of expertise and the localised support which was of particular importance to us. Not only were they able to help us select the right hardware, but they also worked closely with us during the trial and proof of concept phase giving us full confidence that we would be investing in a reliable and futureproof solution”.
The Solution
The technology rollout recommended by TouchStar was Zebra’s TC22 handheld and their own in house manufactured TS7200 rugged truck mounted computers.
etc"
Thanks Rivaldo. Trading in TST is still pretty thin. Normally we can expect a TU in January.
New interview with the Sales Director about TST's plans for US expansion:
Https://bpnews.com/beyond-mains/assessing-challenges-changes-within-fuel-logistics-industry
Extracts:
"Gordon Hyland, sales director of Touchstar Technologies — fuel logistics division, sat down with BPN to share his views on the future of fuel logistics, the role of digitization and Touchstar’s plans for the North American liquefied petroleum gas (LPG) market. Hyland has 25-plus years of experience supporting customers with complex, field-based technology solutions."
"The European market has widely adopted a digital strategy that proves there are cost savings and efficiencies to be generated through fewer miles driven; accurate identification of tank storage locations; efficient routing and scheduling coupled with a real-time view of what happens in the field back at the planning office; and reconciliation of invoices and other issues, often happening the same day.
How does the European fuel logistics sector differ from North America?
The most obvious difference is the geography. European countries are smaller than the United States or Canada. This tends to result in areas of denser population, which creates differing requirements for fuel distribution networks.
What this has meant, though, is that the adoption of digitization of field-based processes has come quicker in Europe. Most large fleets now have in-cab mobile computing systems. Any that don’t are the rare exception. This is not yet the case in North America.
Digitization offers immediate legislative benefits by managing the data that a business needs to prove compliance with industry regulations.
It also brings practical operational benefits, such as instantly sending a driver a digital manifest in the morning, updating it in real-time if plans change, and not having to worry about lost, incomplete or damaged proof of deposit (POD) slips, without which a company won’t get paid.
Digitization means that drivers can capture a client e-signature on the glass of a connected handheld, along with the geo-coordinates of the driver at the time of delivery, for a complete POD. An invoice can then be generated within minutes of POD for improved cash flow."
Interesting new article by TST's sales director about digitalisation and decarbonisation in the O&G sector:
Https://fueloilnews.co.uk/2023/10/downstream-future-decarbonisation-collaboration-and-digitalisation/
Extract:
"A perfect example is the national energy supplier, Flogas. Flogas has sought to break down silos and promote collaboration across its supply chain. Previously relying on fixed delivery cycles or an algorithm that predicted when they were going to need gas, the company has now invested millions implementing tank telematic systems, providing regular readings of their customers’ consumption and tank levels. By obtaining this vital information in real-time, Flogas has been able to centralise its orders, meaning it can now draw volume at quieter times, outside of peak periods.
By investing in a computer-based scheduling system, Flogas is also able to implement seven-day, rolling scheduling, increasing visibility. Additionally, demand sensing enables Flogas to fulfil requests across its forecasting operations, while also taking a more detailed look at customer consumption to extrapolate three months of rolling forecast data.
The Fuelstar on-truck computing system, supplied by Touchstar, ties all this together. Scheduled routes go out to the driver and, when they complete a job, an invoice goes out in real-time. If Flogas doesn’t deliver on that day, it goes back to the order pot for immediate rescheduling.
This increased efficiency automatically delivers decarbonisation through fuel and resource savings as well as the significant benefits of going paperless. We estimate that our existing client base saves 83 million sheets of paper (the equivalent of 20,000 trees) simply by eliminating the hard copy POD and invoicing.
Unexpected benefits
In addition to decarbonisation other benefits include:
Improved cash flow and better oversight of productivity levels
Enhanced safety and easier-to-manage compliance
Customisable tools and reliable data transmission
Increased customer satisfaction"
RNS - another 25,000 shares bought back at 96p. That's 275,000 bought back to date:
Https://uk.advfn.com/stock-market/london/touchstar-TST/share-news/Touchstar-PLC-Transaction-in-Own-Shares-and-Total-Voting-Rights/92512912
Good to see some upward movement after a long period of inactivity. No announcements are due so perhaps there is some positive news behind the scenes?
The shares look in demand online at present - currently you can only buy a maximum 5k shares at 98.5p, whereas you can sell 12k at 91p.
Touchstar will also be presenting at MelloLondon soon, apparently likely on the 30th November but not confirmed as yet.
The event will take place at the Clayton Conference Centre, Chiswick on Wednesday 29th and Thursday 30th November,
Https://www.tickettailor.com/events/melloeventslimited/1030981
For a £7.4m m/cap company (with around £3m net cash) this would be transformational....
What's good to see is that TST are doing this on the back of a sound rationale given that the European market is ahead of the USA's, and also that they're doing this in a careful way via partnerships rather than incurring big expenses.
Plus TST already have the brand recognition in the USA via the name Touchstar:
Https://www.lpgasmagazine.com/touchstar-technologies-eyes-north-american-lpg-market/
"TouchStar Technologies eyes North American LPG market
October 30, 2023
An established technology solutions provider in Europe has its sights set on the North American LP gas market.
TouchStar Technologies Ltd. plans to bring its experience, expertise and technology to customers in North America. The U.K.-based company has been supplying mobile computing solutions for oil and gas distribution for almost four decades. It supplies hardware, software, middleware integration services and full pre- and post-sales technical support to its clients.
“We are developing partnership opportunities as well as direct end-user engagements,” says Gordon Hyland, sales director of TouchStar Technologies – Fuel Logistics Division, in a company-generated information piece covering the future of fuel logistics, the role of digitization and TouchStar’s plans for the North American LP gas market. “We believe that our technology will enhance the offering of all LPG distributors, large or small.”
Specifically, TouchStar is introducing its FuelStar suite of products to North America. This includes in-cab hardware, front-end application and back-office software. The solution has full integration capabilities with third-party software (e.g., enterprise resource planning) and ancillary hardware (e.g., digital registers and in-vehicle Bluetooth devices).
TouchStar sees a natural progression into North America because many of its European customers already have offices here.
The digitization of field-based processes has come quicker in Europe, Hyland explains, as most large fleets have in-cab mobile computing systems. The company hopes more customers in North America will realize the same benefits.
“The European market has widely adopted a digital strategy that proves there are cost savings and efficiencies to be generated, through fewer miles driven, accurate identification of tank [and] storage location, efficient routing and scheduling, coupled with a real-time view of what happens in the field, back at the planning office, and invoice reconciliation and issue often happening same day,” he writes....
The company looks to become more visible to the U.S. market in 2024, with plans to attend next April’s Southeastern Convention & International Propane Expo in Charlotte, North Carolina.
etc"
I've topped up recently in the 80p's - looking very cheap again. The online share overhang has now disappeared.
The forecast is 6.7p EPS this year, rising to 8.7p EPS next year.
TST had £2.8m net cash at 30th June, forecast to rise in the seasonally better H2 to £3.3m. This equates to 40p per share in cash alone.
At the current 89p, the ex-cash P/E is therefore just 7.3, falling to 5.6 from the upcoming January.
And that's with around 40% and rising recurring income. Plus:
- prospects of international expansion
- potential acquisition activity
- booming end markets due to Microsoft legacy software replacement
The drop in SP yesterday explained today by 60k in shares being sold shown today. TST still have a buyback budget left makes you wonder why they did not buy the 60k shares!
Sounds good:
"the ideal rugged handheld device to take warehouse and logistics operations up a gear"
Https://www.touchstar.co.uk/blog/ts8200-scanning
This one also looks pretty chunky:
Https://www.touchstar.co.uk/blog/metsec
"voestalpine Metsec select EPOD system from Manchester-based TouchStar Technologies
20 September 2023
Voestalpine Metsec plc is the UK’s largest specialist cold roll-forming company providing products for the construction and manufacturing industries. The company focus is on adding value through expert design, precision manufacturing and on-time in-full product delivery.
The company’s origins can be traced back to 1854. ..
... As a key organisation within the €10 billion voestalpine group, Metsec has continued to flourish and its range of purlin and framing systems have been utilised within many of today’s landmark UK construction projects including The Shard, Queensferry Crossing, Canary Wharf Crossrail Station, the Wimbledon Centre Court roof as well as substantial international projects such as Nakilat Damen ship yards (Qatar).
The Project
With its publicly declared focus on ‘on-time delivery’ the company maintains a policy of continuous improvement regarding delivery performance and is constantly refining, and investing in, new systems and processes. This search for a ‘best of breed’ delivery and tracking system led the Metsec management team to adopt the PODStar system from Manchester-based TouchStar Technologies.
Metsec do not run their own delivery vehicles but rather delivery work is carried out by 3rd party hauliers. These hauliers equip their drivers with a variety of different mobile devices and smart phones. With this in mind, one of the key system requirements was to have a front-end application that ran equally well on both android and iOS operating systems. The PODStar system is browser-based which means that it is entirely ‘OS neutral’.
The Cloud-based PODStar system offers a 'Planning and Optimisation' tool that automates existing manual processes. Using real time job information, clients are able to drag and drop jobs onto the relevant vehicles. The PODStar system has been fully integrated with Metsec’s existing sales order processing systems, via XML file transfer. Once a manifest has been created it is then automatically sent out to the drivers remotely in the field. To further enhance the efficiency, via a click of a button, jobs are automatically allocated vehicles in the most efficient order and display the route on a map saving Metsec fuel and time on the road...
.... The Outcome
Ian Hemsley (Metsec Production Director) comments: " We have the PODStar system installed in four of our divisions. In TouchStar we’re happy that we’ve found an organisation whose professionalism extends beyond the product itself, right through to the installation and support aspects of the project. Our drivers appreciate the simplicity and user-friendliness of the system and it has also ensured that we're legally compliant. Overall we're delighted with the system and, as we continue to expand, we look forwar
By the time theyve gone through the whole design, development and test process, it certainly means a good chunk of additional billable time.
That is excellent news!
The FY results statement in April mentioned that TST are looking into international expansion (2 unnamed countries were mentioned as being near-term targets, while being aware that these things can take time), so most likely this Calor Ireland deal is one of them.
The phrase "major system upgrade" is pleasing :)
It is also great to read in the 100+ Logistics press release, they mentioned "secondary benefits" of using Touchstar's systems, and the TST team are "developing one or two bespoke enhancements."
This is great for 2 reasons: firstly, the additional team has expertise to customise their offerings to suit clients' needs, and secondly these probably have high margins.
This Calor Ireland contract win looks very tasty:
Https://www.touchstar.co.uk/blog/calorireland
"CALOR IRELAND – Major system upgrade TO OPTIMISE DELIVERY AND BOOST CUSTOMER SATISFACTION
13 September 2023
CALOR IRELAND – Major system upgrade TO OPTIMISE DELIVERY AND BOOST CUSTOMER SATISFACTION
14th September 2023, Manchester UK – Touchstar client Calor Ireland make a further significant investment in ‘Fuelstar’ system
About Calor
Every day, Calor supplies LPG, BioLPG, LNG and Autogas to its customers: homes and businesses off the mains gas grid. Calor provides an energy that is easy to transport, store and use, which has many versatile uses, and a limited environmental impact compared to popular alternatives.
Calor Ireland are the leading supplier and distributor of Liquefied Petroleum Gas (LPG) in Ireland, allowing customers who are located off the natural gas grid use LPG gas for power in their homes and businesses. The company is expert in LPG procurement and commissioning, bulk gas storage, cylinder filling and storage, LPG transport and delivery, installation and maintenance. The company also actively develop and innovate new LPG powered products such as the Calor Mini-BBQ and new lightweight cylinder.
Calor Ireland employ 284 staff in 6 sites located throughout the island of Ireland serving circa 50,000 customers across residential and industrial commercial sectors.
etc"
And also:
Https://www.touchstar.co.uk/blog/100pluslogistics
"100+ Logistics select ‘PODStar’ system to enhance delivery operation
12 September 2023
100+ Logistics select ‘PODStar’ system to enhance delivery operation"
" After extensive research and evaluation of the latest available technologies, the management team at 100+ Logistics have commissioned an electronic proof of delivery system from Manchester-based Touchstar Technologies. The ‘PODStar’ system will solve the current challenges of a large paper trail, ensuring manual processes are optimised, credit control issues resolved and customer service improved.
The integrated PDA and web-based back-office solutions will allow 100+ Logistics to manage their operations in real-time and remove the problems associated with paper-based processes. "
" Client Reaction
Scott Partridge, Managing Director of 100+ Logistics, is excited by the potential for the newly acquired system to transform their supply chain operation: “We were impressed by how the Touchstar team rapidly understood our business needs and by the overall capabilities of the software. We can readily drag and drop jobs onto runs and distribute seamlessly to the driver’s mobile devices. We’ll be able to plan routes and receive ETA information in real-time which will optimise our deliveries and improve our service to our clients. There are a lot of secondary benefits to the system such as automating our vehicle checks and the Touchstar team are developing one or two bespoke enhancements
Bought a few more; can't ever remember UK small/micro caps being so unloved, but value will be recognised eventually.
Not too worried about the fall in margins given that software and hardware margins will be vastly different so sales mix seems a reasonable explanation at this stage.
Hopefully we will see some more buybacks as these are very value enhancing at these SP levels.
Interims look good. Nice to see maiden dividend and confirmation of ongoing share buyback programme.
Usual H1 cash outflow (and horrible typo in the cash flow statement - should be (860) trade and other payables movement - but these remain extremely cheap given the net cash position.
Be interesting to see if the market starts to re-rate them.
Otherwise looks okay
Yes Interim results should be released anytime in the next two/three weeks.