Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
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Avesco Group (AVS) Director name: Mr David A Crump Amount sold: 30,076 @ 149.00p Value: 44,813
Avesco Group (AVS) Director name: Mr John Christmas Amount sold: 36,091 @ 149.00p Value: 53,776
Top Director Buys Avesco Group (AVS) Director name: Mr Richard Murray-Obodynski Amount purchased: 200,000 @ 150.00p Value: �300,000
Avesco, an AIM-listed corporate services provider, said Wednesday that its Chairman, Richard Murray, acquired 200,000 ordinary shares at 150p a go, as a number of his fellow board members opted to downsize their holdings in the group. Murray's transaction was by far the largest, costing him a total of �300,000. Finance Director John Christmas sold 36,091 shares at 149.00p a time, earning him �53,776. Executive Director David Crump earned �44,813 after trading in 30,076 shares at the same price, while Graham Andrews, who holds the same position, pocketed �43,229 from the sale of 29,013 shares. Three weeks ago the company posted strong annual results for the year ending September 30th, buoyed by significant Olympics-related turnover. The group, which supplies services to the corporate presentation, entertainment and broadcast markets disclosed that operating profit was up 196% to �4.5m. Revenue was up 14% to �143.5m from �125.5m a year earlier. The group's trading profit was up 217% to �7.4m and trading earnings before interest tax depreciation and amortisation (EBITDA) jumped 34% to �27.1m.
Final results were ahead of expectations, boosted by the Olympics but with solid 9% underlying revenue growth. Despite the ‘odd year’ effect and a quiet Q1, FY13 trading will benefit from the significant FY12 investment in rental assets and our estimates are broadly unchanged. The December court verdict denying Disney’s appeal was excellent news (a successful outcome is worth 140p per Avesco share), although the appeals process is more protracted than we originally hoped. Even excluding the incremental value of an eventual Disney windfall, the share rating remains undemanding (EV/EBITDA of 2.6x), and is underpinned by an NAV of 152p.
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Broker price forcast by gecr........................ Valuation We continue to believe a core valuation of 3x Enterprise Value/EBITDA - 207p per share on our 2013E numbers - remains more than sufficiently conservative. This is before taking any account of Avesco’s interest in an on-going US litigation case - for which we attribute a further 33p per share.
Forecasts We retain our full-year forecasts, though move our year-end net debt figure up from £24 million to £27 million as a result of some accelerated capital spending. We also introduce forecasts for next year – these anticipating underlying growth and some major events mitigating significantly, but not wholly, the ‘big ticket’ event benefits of this year.
Trading Avesco noted that it has been “extremely busy”, with its work in connection with the Paralympic Games in London and the 2012 Olympics in July and August particularly “substantial”. Looking further ahead, the company notes “while 2012/13 as an „odd year‟ will not have stand-out events as big for us as those in and around London in 2012, we do expect to benefit substantially from a number of other major events”.
Financials Avesco has announced an underlying pre-tax profit of £1.56 million for its third quarter, taking the nine month figure to £2.95 million and basic earnings per share for the nine months to 11.0p – this up from 7.9p for the comparative prior year period.
Avesco Group, the provider of services to the international corporate presentation, entertainment and broadcast markets, has announced results for the three and nine months ended 30th June 2012 which continue to bear out its start of the year confidence that 2012 could be one of the biggest and most rewarding in the company’s history. With the company believing its outlook “has never been better”, the rating being attributed by the stock market continues to look materially too low.
Avesco Group (AVS) Director name: Mr Richard A Murray-Obodynski Amount purchased: 10,000 @ 159.00p Value: £15,900
Director name: Mr Richard A Murray-Obodynski Amount purchased: 10,000 @ 160.00p Value: £16,000
Valuation We continue to believe a core valuation of 3x Enterprise Value/EBITDA - 207p per share on our 2013E numbers - remains more than sufficiently conservative, and note this is before taking any account of Avesco’s interest in an on-going US litigation case in which a unanimous verdict in July 2010 put the company in line for a net approximate $60 million (c. £37.5 million) payout. This has been appealed, with it announced last month that an oral hearing of the appeal has been scheduled for 10th October and Avesco believing “that a decision is likely to follow within 12 months of this date”. There is the potential for further legal ruminations after this, but Avesco has previously emphasised that it is “comfortable that the legal argument on which this case will be determined remains favourable” to it and even discounting the potential payout for 2 years and using what seems a highly conservative 30% probability of success suggests another 33p per share. The valuation is also supported by 151p per share (£38.47 million) of net tangible assets and a likely 4p per share total dividend for this year (with a 1p per share interim dividend to be paid on 1st October and the shares to be quoted ‘ex-dividend’ from 12th September). However, a 2013 basis and $:£ exchange rate movement mean our near-term target price is reduced to 240p from 260p – though despite the shares also having risen (from 149p at the time of our previous, June, update to a current 162p), there remains significant upside to our revised price target.
Forecasts We retain our full-year forecasts, though move our year-end net debt figure up from £24 million to £27 million as a result of some accelerated capital spending. We also introduce forecasts for next year – these anticipating underlying growth and some major events mitigating significantly, but not wholly, the ‘big ticket’ event benefits of this year. Valuation We continue to believe a core valuation of 3x Enterprise Value/EBITDA - 207p per share on our 2013E numbers - remains more than sufficiently conservative. This is before taking any account of Avesco’s interest in an on-going US litigation case - for which we attribute a further 33p per share.
Avesco Group Update from GECR 11th September 2012 Strong results for the three and nine months ended 30th June 2012 Avesco Group, the provider of services to the international corporate presentation, entertainment and broadcast markets, has announced results for the three and nine months ended 30th June 2012 which continue to bear out its start of the year confidence that 2012 could be one of the biggest and most rewarding in the company’s history. With the company believing its outlook “has never been better”, the rating being attributed by the stock market continues to look materially too low. Financials Avesco has announced an underlying pre-tax profit of £1.56 million for its third quarter, taking the nine month figure to £2.95 million and basic earnings per share for the nine months to 11.0p – this up from 7.9p for the comparative prior year period. Trading Avesco noted that it has been “extremely busy”, with its work in connection with the Paralympic Games in London and the 2012 Olympics in July and August particularly “substantial”. Looking further ahead, the company notes “while 2012/13 as an „odd year‟ will not have stand-out events as big for us as those in and around London in 2012, we do expect to benefit substantially from a number of other major events”.
"The long-term outlook for the group remains very positive and with management focused on capitalising on this year's success, maintaining strong underlying growth and generating cash, we believe that the outlook for the group has never been better." Cash and equivalent at the period end totalled £6.0m, compared to £5.4m at the same date in 2011.
pre-tax profit fell from £2.3m to £1.0m y/y, while earnings before interest, tax, depreciation and amortisation (EBITDA) for the three month period dropped from £7.5m to £7.1m. Unsurprisingly, the firm was keen to focus on the nine rather than three month period to the end of June. This longer period delivered an increase in revenue from £97.4m to £105.8m, leading to pre-tax profit of £2.1m, compared to £1.7m the same period the previous year. Richard Murray, Chairman, said: "The Avesco Group has enjoyed another period of strong revenue and profit growth over the nine months ended June 30th 2012. "When this financial year started, we knew that it had the possibility to be one of the biggest and most rewarding in the group's history. As we approach the year-end our early optimism appears to have been well founded and we can look back on some outstanding accomplishments.
Avesco Group, a provider of services to the corporate media markets, disappointed its investors after posting a decline in trading profit and earnings per share (EPS) for the three months ended June 30th. Trading profits fell from £2.9m to £2.1m year-on-year (y/y), although comparisons were negatively affected by the impact of £1.2m in profit on the sale of fixed assets during the quarter in 2011. The firm said the decline "masks substantial profits on the sale of equipment". The adjusted basic EPS for the quarter were 5.9p (Q3 2011: 9.3p), however for the nine months to the end of June EPS were 11p, up from 7.9p in the same period the previous year. Trading profit in this period came in at £4.1m compared to £3.2m in the same time frame the year before. Third quarter revenue rose from £35.4m to £38.3m, while the cost of sales increased from £23.2m to £25.5m y/y. Gross profit totalled £12.8m, up from £12.1m the same period in 2011. However, an increase in operating expenses, from £9.4m to £11.3m, resulted in a decline in operating profit to £1.5m (Q3 2011: £2.8m).
Valuation: Still a play on the Disney windfall Avesco shares have performed well over the past year, helped by profit upgrades. Taking the average of FY12e and FY13e profits the current P/E and EV/EBITDA of 12.5x and 2.5x respectively still look reasonable, despite the tough economic backdrop. The shares are underpinned by a 152p NAV but particularly, by the hopedfor share of the Disney/Celador proceeds (worth US$60m to Avesco, or 140p per share). The oral arguments for Disney’s appeal are scheduled for 10 October with a decision likely within 12 months (although further appeals are possible and hence the timing of any payout remains unclear).
Richard Murray, Chairman, commented: The Avesco Group has enjoyed another period of strong revenue and profit growth over the nine months ended 30 June 2012. When this financial year started, we knew that it had the possibility to be one of the biggest and most rewarding in the Group's history. As we approach the year-end our early optimism appears to have been well founded and we can look back on some outstanding accomplishments. The long-term outlook for the Group remains very positive and with management focused on capitalising on this year's success, maintaining strong underlying growth and generating cash, we believe that the outlook for the Group has never been better.