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Started: Spades1973, 19 Jun 2024 07:21
Last post: Spades1973, 19 Jun 2024 07:21
Nice RNS reiterating increased revenues. Gentle rise Back to 0.03+ ?? On the cards
Started: Spades1973, 10 Jun 2024 08:00
Last post: Fishinggardener, 10 Jun 2024 16:16
Me Too!
BBSN is in good shape. No need to pursue a deal that bets the farm.
They are better off making organic customer wins and account development their core endeavour, and looking for bolt-on businesses in the £5m to £10m revenue space, where the existing client relationship holders are often also the owners, and who want to come for the ride with BBSN. No two deals are the same, but developing an acquisition model whereby the acquired owners receive consideration in a mix of Cash / BBSN shares and performance related deferred consideration should lead to a twin track growth strategy that can be financed within current resources and those that the bulked up business delivers.
I know that you can argue that everything is a function of price, however I would rather BSN grow their capability and customer base through cooperative acquisitions, where the buyer and seller are united in the working together towards the common goal.
FG
I’m happy BB have walked away, although a small cap this shows maturity in management - now the accounts at BB will become even more healthy as clients gradually flow into the more attractive, lean and progressive business.
Last post: ihalliwell10, 6 Jun 2024 15:34
Just looking at the share price since launch,
Why would you think you can buy TMG for half the price in six months. TMG business is robust enough to get out of its debt issues, the business is sound and in a different league to this opportunist outfit. He ho. We all have different views, which makes life more interesting so long as it does not lead to WAR! The human race needs to find world peace.
Anyway good luck here with your investment. Us PI’s need some luck to beat the greedy b******* that run PLC companies.
Walk away and buy it in 6 months for half the price, BB seem better margin wise and that will be diluted if we proceed with the buy, that said the buy does open a lot of doors to customers
Definitely agree Bazzaman.
It feels like a hornets nest.
A cheaper and more effective strategy might be for BBSN to recruit a couple of capable Account Directors, and go on the offensive to win some new business.
I wonder where I might start drawing up my list of customer prospects??
FG
Https://www.investegate.co.uk/announcement/rns/brave-bison-group--bbsn/response-to-revised-possible-offer-announcement-/8246241
Time to walk away I would suggest rather than up the offer.
GLA
Started: StockBoy, 6 Jun 2024 15:23
Last post: StockBoy, 6 Jun 2024 15:23
Goodwill 2022 circa £5m. 2023 circa £10m.
Always an interesting way to improve the balance sheet.
Started: Nimrod7, 24 May 2024 09:44
Last post: 404x, 4 Jun 2024 20:27
Imo BBSN should have walked away and instead stayed nimble growing the company organically. Mission has a decent topline which I'm sure is what's ultimately attracted the bid, but with that comes a pretty horrific balance sheet - in contrast to BBSN's with its positive NAV and minimal borrowing.
My own opinion is that the offer should not have been upped...and those that are able can crunch the numbers JM but ultimately the deal or not will not be our decision as the only vote that will count for us is to vote with our feet and leave, or we can stay with the company and see what transpires...
I don't disagree with what you are saying FG / Nimrod. Obviously it will be a few years until anyone can pass judgement on whether an acquisition was successfully integrated and a wise investment. But, that is the same for any acquisition for any other company. What we can assess right here and now is whether the price paid is a good deal for BBSN shareholders based on both companies current performance metrics. Does anyone have an opinion? I'll be honest and say I haven't yet done the math's but will do so and feedback my thoughts shortly. This is not an acquisition that BBSN can afford to go wrong if they go through with it.
Agree with Nimrod....
It will be 3 years down the line before one can look back and say that any particular acquisition was a good deal or a Pup.
Obviously finance / price / currency all play a part in that assessment, however it largely depends on how well the present management expand their team, and up their game to drive a business that is 5 times the size of their current operation.
I am all for the "More Grist to the Mill" line of argument, but that only holds for so long, until you reach the point of having to build a new Mill!.
There is also a big question as to what will happen to the Mission Operational Management, as it is they who hold the customer relationships at present. Will the Mission Management be retained, or do they go in the first few months after completion.
As relatively small shareholders it is not our place to want to see the operational plans for integrating such an acquisition, and so to a large extent it is not a question of which group of shareholders is getting the better deal, but more a question of do you back the Green Brothers, and the CFO to ensure that they get this big fish onto the bank, and then know what to do with it once its landed.
I am also conscious of the fact that Lord Ashcroft has built a stake of c23% of the shares in this company, and to that extent I suspect that it might be him that is driving the agenda.... in which case one should do some research as to his track record in successfully integrating (or not), acquisitions in his other interests.
One doesn't know all of the facts, but to me, finances aside, this is no bolt-on. I just hope that our corporate eyes are not bigger than our tummy!.
(Six metaphors in one post!!)
Fishing Gardener
Yes, I think we can look at the offer and say whether we think BBSN or Mission shareholders are getting the better deal from this increased offer based on current company performance. Why not?
Started: BarcingMad, 16 May 2024 18:39
Last post: BarcingMad, 16 May 2024 18:39
Looks like Lord Ashcroft has further upped his stake to 23.7%!
Started: Fishinggardener, 15 May 2024 12:57
Last post: JMUK26, 15 May 2024 21:35
Good post FG. Agree with what you are saying. The offer does feel opportunistic and clearly hasn’t gone down well. Much prefer a friendly takeover where management stay on and keep their clients on board. How many clients would stay if their key contacts left? Not a lot I suspect unless there was a lengthy handover and the takeover went smoothly. We also have to consider the debt that would be taken on which is large and would take some time to pay down even in the event that brave bison turned mission around. I won’t be particularly sad to see this one fall through and hope the board don’t get into a petty war.
Some serious and thoughtful thinking there FG...'smash and grab' Yes...'Cheeky' Yes...'Gung-ho' Yes...my first thoughts were NO! and don't raise the offer for goodness sake...
I've followed BBSN for 4+ years now, and have built a 2.5m shareholding. I like the story, and I like the Digital marketing space, in terms of its growth potential. I think that the management team here, to date, have done a great job of growing organically, whilst, at the same time, integrating bolt-on acquisitions which have delivered a full menu of capability into Brave Bison, and also brought some high profile corporate logos into the customer base. The business is profitable, and has a growing cash balance. So far, so good!
However in the context of achieving further growth, my experience is that there are no short cuts to building valuable customer relationships and developing enhanced service offerings. It takes time to do a proper job. You can't just slam companies together and expect the value to be retained.
Managing a £120m business is a very different beast to managing a £20m company.
The practicalities of a £20m agency, taking on and successfully integrating the customer accounts of a £100m agency comes with high risk of it becoming all consuming and destroying the value acquired, as well as the value already developed within the current business. It would be more normal to continue with a twin-track strategy of picking off new customer wins, ensuring that no customer relationships are lost from the current base, and to look for digestible bolt on acquisition opportunities that can be financed with a blend of Cash and issuing paper. Targeting growth of 30 - 50% per annum is ambitious enough, and will make for a very valuable business.
Traditional marketing agency businesses are built on developing hand-in glove relationships with your customers over a long period of time. Therefore the most successful acquisitions tend to be those which retain the management of the acquired business, to ensure that the customer relationships purchased are retained. Their interests need to be aligned with the new combined Group.
The dimensions and All-share nature of this deal feel a bit "smash-and-grab". Maybe a little opportunistic, on what I have read about TMG.
My vote would be to see BBSN grow within their means. Acquisitions should be affordable relative to cash balances available, and in terms of Management bandwidth that is available to go through the inevitable windy process of due diligence, engagement with the acquired customers, accommodating the new work force, and the integration of the business operations.
Biting off more than we can chew presents a high risk of damaging the development of what is still a fledgling business.
Don't let egos get in the driving seat of running the business.
FG
Last post: Nimrod7, 15 May 2024 18:34
Theo and Oliver Green have a history of building up a company and then selling it on which was one of the reasons for my investing here so they are obviously very clever business people so I hold my position...
Last post: Bazzaman, 13 May 2024 18:33
It’s worth noting that Mission’s directors are open to proposals that would enhance shareholder value and deliver benefits to its own shareholders. It leaves the door open as Brave Bison engages in talks with Mission’s board and major institutional shareholders, both of whom would have to be on board for any deal to be agreed. There is also the possibility that Brave Bison’s approach could flush out interest from other bidders attracted by Mission’s recovery potential and low rating.
So, having placed buy recommendations on both companies when I recently covered their respective annual results, I continue to feel that their shares are undervalued are worth buying at the current level. Even though Mission’s earnings are expected to recover this year and the board is looking to pay down debt, the company is priced on an enterprise valuation to cash profit multiple of 3.6 times and prospective price/earnings (PE) ratio of 3.9 for the 2024 financial year.
Brave Bison’s track record is more impressive in recent years, hence why its shares enjoy a higher enterprise valuation to cash profit multiple of 5.9 times, and trade on a cash-adjusted PE ratio of 7. Buy.
That's a word salad that could mean anything.
Typical of the scribblers to try and mean anything to anyone.
Not helpful.
Conclusion: A Strategic Forge Ahead Amidst Challenges: Brave Bison's FY23 results illustrate a company on the rise, marked by strategic acquisitions and robust financial performance. Yet, the failed bid for MISSION Group demonstrates the challenges of M&A in a market where value perceptions can diverge sharply. As Brave Bison continues to adapt and evolve, the broader market will watch keenly, assessing whether its ambitious growth strategies will indeed cement its standing in the dynamic landscape of digital marketing and technology services.
https://lemminginvestor.substack.com/p/brave-bison-plc-1b7
Thanks Baz....for non-subscribers though could you possibly please give a very brief snippet of the report...thanks
Started: alfista, 13 May 2024 16:37
Last post: alfista, 13 May 2024 16:37
As a Mission holder, this looks more like an attempt to de stabilise than a serious offer.
Mission has a weakness in over borrowing, but, in all other respects, would contribute far too much to the enlarged group to settle for the pittance suggested. I don't think this oddly named outfit has deep enough pockets, but we'll see.
Started: BarcingMad, 12 May 2024 13:53
Last post: Alans55, 13 May 2024 09:40
This company does seem to be having great progress. Long may it continue
Big article today ‘ Brave Bison eyes bid for rival agency Mission Group’ Mission group Mcap currently £21m.. revenues of £86m last year! Also says that Lord Ashcroft now owns 20% of BBSN! Mission Group Would be an incredible acquisition… fasten your seat belts!
Started: ihalliwell10, 7 May 2024 11:42
Last post: JMUK26, 12 May 2024 10:40
Rumours circulating of a very large acquisition of mission group for circa £22m. Might be interesting tomorrow.
I heard their name in one of my customers recently regarding a pitch for some business, just hearing their name made me purchase some more shares, if this is representative of the businesses they are going after and they can demonstrate wins and capabilities , then I think this year could be transformational/
IMHO, I think this is a X bagger
Started: DellaDella, 22 Apr 2024 07:54
Last post: BarcingMad, 29 Apr 2024 23:19
Thanks for sharing Bazzaman.. IC are well researched and respected so there posting reinforces my belief in this company’s ability to grow and deliver .
Update from Simon at IC
https://www.investorschronicle.co.uk/ideas/2024/04/29/back-brave-bison-s-influential-social-media-business/
GLA
Well, they have stated that like for like performance for Q1 is ahead of prior year, so they will be looking for a beat, but have been cautious in their outlook which is fair enough. Most marketing companies are struggling at the moment so they are still doing very well. If they manage to meet y24 expectations - which are conservative imo - and have increased net cash to "in excess" of 9m as suggested, that will be a third of the market cap in cash. That makes the business very cheap and could lead to a series of acquisitions, dividend, or buy-backs to bolster SP. Plenty of upside here.
Not sure what happened to my second point below!.. gone AWOL.
Point I was making is that the reported market expectation for FY24, is not very stella. Slight increase in revenue, and lower Adj EBITDA than that achieved in FY '23. PIs are invested on the back of a growth story, and with a target of £4m of new business for this year, the market expectations need to be raised. We should be looking for 15% to 20% growth per annum, else the SP will hit the doldrums.
Another good year of acquisition integration, New customer wins, whilst meeting expectations with financial results.
I am a supporter / believer, and have used the opportunity to add this morning.
Two points come to mind though;
1) The results are bang in line with the Trading update issued on Jan 22nd. Back in the day, when I lead a similar sized business, (not Public), I always strived to deliver results 3 - 5% better than my last update.... It kept my investor community positive. Doing exactly what they say they are going to do, is better than a "Miss", but it is always good to hold back a little upside. What happens between a Management Trading Update, and the Final results?... The Auditors come in. I hope that they haven't reversed an item, and as a consequence, taken a shine off what might have been a TU beating result. At this stage in the development of the business, the Management Team can not afford to deliver a Miss.
2) They are highlighting that FY24 results will be ahead of market expectations. But the numbers suggest that this is
Started: BarcingMad, 26 Apr 2024 20:44
Last post: BarcingMad, 26 Apr 2024 20:44
Does anyone know if the last 2 trades are buys or sells?
Last post: Troajan, 23 Apr 2024 16:38
10 mins in....https://www.youtube.com/watch?v=5CZby_R1sEo
Started: TurtleHead, 22 Apr 2024 11:50
Last post: TurtleHead, 22 Apr 2024 11:50
Misread on slater they're new
Started: TurtleHead, 22 Apr 2024 11:48
Last post: TurtleHead, 22 Apr 2024 11:48
Offloading positoins, until Slater and Merchant f'eck uff this sp will drift between 2 and 3p
Started: exactamundo, 22 Apr 2024 10:45
Last post: exactamundo, 22 Apr 2024 10:45
Very good presentation from the BB team this morning.
Two points I scribbled down; 1) other than £0.2m govt Covid loan, there is no debt. 2) aiming to double new business to £4m this year
*happy to be corrected if I misheard either of these points
Started: maddogmcree, 22 Apr 2024 08:41
Last post: maddogmcree, 22 Apr 2024 08:41
May even end the day blue
Started: exactamundo, 22 Apr 2024 07:17
Last post: exactamundo, 22 Apr 2024 07:17
Fantastic results - congratulations
Started: exactamundo, 18 Apr 2024 06:37
Last post: exactamundo, 18 Apr 2024 06:37
I missed this from last week;
10/04/2024 "Seasalt appoints Brave Bison for paid social as part of UK clothing brand’s overseas expansion push"
Started: BarcingMad, 16 Apr 2024 18:08
Last post: BarcingMad, 16 Apr 2024 18:08
Correction: bought 200k shares.
Started: ihalliwell10, 27 Mar 2024 09:54
Last post: BarcingMad, 16 Apr 2024 18:06
Been in for years now and love the steady and consistent growth of this company.. bought another 400k shares as I believe results will be good and more good things to come!
Full year FY23 results out Monday first thing.
Trading update issued in Mid January gives you an idea as to where the numbers are going to be.
Look at the equivalent releases for last year, and you will get a feel for the growth trajectory.
At c£35m market cap, it is still a SmallCap company, but it is growing, and in the right space in terms of tech advertising.
Based on fundamentals, SP should go north of 3p. Test will be to see if the IR team can widen the circle of interest, so that any gains are locked in.
Best of luck
A flurry of buys coming in .is there news coming in.
I've heard that this company is in many large orgs bidding for work, AI & Marketing is about to revolutionise how companies push content out to their visitors and Brave seem to be at the centre of it.
I'm in the industry and Brave are mixing with the big boys and if they can land some deals then this is going to move north nicely.
IMOO
Started: Fishinggardener, 18 Mar 2024 16:54
Last post: Fishinggardener, 18 Mar 2024 16:54
This is a company going places, and at this price it is currently under-valued.
Last Trading Update at the end of January '24 sign-posted EBITDA for Financial year ending 31-12-23 as being £4.3m up 43% on the previous year (FY22), which was 70% up on FY21. These numbers should be confirmed in their results announcement due out end of next month.
They also had c £6.8m of net cash in the bank at the year end.
The business is a Centre of excellence for Digital Marketing.... Helping well known brands get the best return from their advertising spend on social media platforms. So pretty leading edge / contemporary activity. Arguably it is a "Tech" business, albeit asset lite, and focussed on acquiring and managing customers.
Management have plenty of skin in the game, owning c20% of the share equity between the Green Brothers and the Finance Director.
If it were put up for sale tomorrow, on a multiple of 10x EBITDA plus cash, the price tag would be £50m. The current growth trajectory only pushes this number north.
Current Market Cap is just shy of £30m. - so a 66% upside in a growing, profitable, cash generative company operating in the digital space.
That's why I topped up today!
Big afternoon buy again today at full ask
Hopefully IC article inspires a few more
Tide turning and about to break up?