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Well worked out Hedgie. Interesting acquisition but would have liked an explanation why the added value is significantly more in year 2 over year 1. Even so buying has perked up today which has to be good.
Added to the company's existing cash, this new facility can provide very useful extra liquidity at a very cheap price:
8th Sep 2020 7:00 am RNS Unaudited Interim Results
" ... Furthermore, the cash balance has increased from £0.5 million at 31 December 2019 to £1.2 million at 30 June 2020. ..."
https://www.lse.co.uk/rns/DBOX/unaudited-interim-results-2r1pm0zlnbd186g.html
Could it be a prelude to an acquisition?
25th Sep 2020 7:00 am RNS New borrowing facility agreed
"Funding Update
Digitalbox plc (AIM: DBOX), the mobile-first digital media business, which owns Entertainment Daily and The Daily Mash, announces that, in order to strengthen the balance sheet and aid liquidity, the Company has secured a £450,000 five year term loan facility under the British Business Bank's Coronavirus Business Interruption Loans Scheme (CBILS) from its bankers, National Westminster Bank plc (the "Facility").
The Facility can be drawn down at any point before 9 December 2020 with a 12 month interest-free period following drawdown and an interest rate of 2.48% per annum on the drawn down amount thereafter. The funds are repayable commencing 12 months after drawdown in equal monthly instalments for the remaining four years. There will be no penalty for making early repayment(s) of all or part of the Facility."
https://www.lse.co.uk/rns/DBOX/new-borrowing-facility-agreed-wjwm3gbm2caygt2.html
Well done this company to not only show a positive report but the future looks rosy as well, again well done.
All good news from the RNS. Plenty of cash to expand and revenues set to improve.
About time they acquired another bolt on company, otherwise they may as well hand some of that cash back in a nice divi ??
Rhydian did your funds suddenly become available. If not there's a sudden flurry of activity which is unusual for this stock in recent weeks. Perhaps someone's got wind of some announcements as part of the interims.
Interims due on the 8th September which the BoD have stated are above their expectations so hopefully a move up next week.
I agree. I’m hoping to invest here when funds become available. It will probably be a slow burner, but they have a solid balance sheet with cash in the bank to make strategic aquisitions that will hopefully boost revenues significantly.
Hope you're right! I keep adding a few on a regular basis thinking a profitable Company is rare on AIM. They seem to be in a growing sector and have good management. So, my theory is share price is too low currently. Well worth a medium term hold and add. That's my opinion.
The Celebs will need to come out of lockdown soon. DBOX is a good platform to take advantage of it when it starts to happen.
Somebody has confidence in DBOX,purchase of 100,000 went through this pm .
Acquisitions, extraordinary growth, & second half weighting:
2nd Apr 2020 7:00 am RNS Full Year Results
" ... We are certainly going to continue investing in our current channels - there is more to come - and we are combing the marketplace for further acquisition targets. Extraordinary growth comes from preparedness meeting opportunity. ...
Our interest in making acquisitions remains strong with the Daily Mash having proved a great success. As the market continues to offer significant opportunities, we will maintain our focus on seeking out businesses with the potential to flourish on mobile - we firmly believe this is where significant shareholder value can be delivered as the advertising market rebalances towards the mobile audience segment.
The expansion of our team and infrastructure to deliver the reverse takeover of Polemos in February has provided us with headroom to deliver significant further growth while operational efficiencies remain strong. ...
We believe Digitalbox is well positioned to navigate its COVID 19 journey and with the seismic change it brings may also come opportunity that with GBP1 million of cash in the bank at the time of reporting we will be well placed to exploit. Our business is naturally second half weighted and this may become more pronounced given the likely impact of COVID19 on H1. We nevertheless remain confident that the Group can perform well in the year ahead."
https://www.lse.co.uk/rns/DBOX/full-year-results-2lbfgd7yxa4lbra.html
2nd Apr 2020 7:00 am RNS Full Year Results
" ...Financial review
For the ten months since the Acquisitions reported on the year, the Group traded well. Revenue was in line and EBITDA ahead of management expectations as direct costs were lower than anticipated.
All of the reported revenue and gross profit in the year was generated in the ten months since completion of the Acquisitions. Revenue for this ten-month period was £2.2m. Gross profit was £1.8m.
The adjusted EBITDA for the year was £525k and our adjusted EBITDA margin was 23.4%. At the end of the year the Company had £477k of cash and no debt. Adjusted EBITDA per share for the year was 0.7p. ..."
https://www.lse.co.uk/rns/DBOX/full-year-results-2lbfgd7yxa4lbra.html
DBOX's underlying eps last year was 0.7p, compared to its current s.p. of just 5.25p: i.e. the share is currently trading on just 7.5 times underlying eps.
Plus a healthy and growing cash balance.
Earnings-enhancing acquisitions and organic growth could potentially yield eps of say 2p a share within the next few-several years.
With a generous rating for an exciting growth company, the share could potentially trade at over 100p within this time frame, which could make it a 20-bagger from current levels.
28th Jul 2020 7:00 am RNS Pre-Close Trading Update
" ... Like other media companies, Digitalbox has found trading very challenging because of COVID-19. While much uncertainty remains, there are some early signs in the third quarter that advertising spend is increasing. The Company remains cautiously optimistic that a positive advertising market upturn will occur in the second half of the year. This half is traditionally the Company's strongest trading period.
James Carter, CEO, Digitalbox plc, said: "Our success in the first quarter positioned us to withstand the challenges presented by COVID 19. We quickly adapted to deal with the new environment, and our content teams made a seamless switch to homeworking. Running a largely automated commercial operation through programmatic and header bidding solutions has enabled us also to continue the trading of our inventory without disruption.
"While the lockdown has presented great opportunities for the Daily Mash to showcase the talent of its writers, the flow of news for Entertainment Daily slowed as TV production stopped and celebrities were out of view. We remain cautiously optimistic about the second half of 2020 as big TV shows return to our screens, retail opens up again, and the economy returns to a more positive position." "
https://www.lse.co.uk/rns/DBOX/pre-close-trading-update-dtzdfy2k8x3etzq.html
DBOX's profit upgrade this week is very positive news in the current pandemic.
28th Jul 2020 7:00 am RNS Pre-Close Trading Update
"Digitalbox plc (AIM: DBOX), the mobile-first digital media business, which owns Entertainment Daily and The Daily Mash, today issues a pre-close trading update for the six months ending 30 June 2020. The Company expects to announce its interim results on 8 September 2020.
Despite the impact of COVID-19, the performance of the Company in the first six months has been encouraging. As a result of the Company's strong operating margins, Digitalbox expects to report adjusted profit before tax ahead of management expectations. Furthermore, the cash balance has increased from £0.6 million at 31 December 2019 to £1.2 million on 30 June 2020.
Revenue for the six months ending 30 June 2020 is expected to be flat year on year at approximately £1 million. The two factors that drive revenue are the volume and value of advertising. The volume is reflected in the number of visits (or sessions) that the Company's websites receive from users that come to read the content. The value is the price paid by advertisers to reach these users during these sessions. The number of visits to the Company's website has increased significantly but this has been offset by the sharp fall in the value per session because of COVID-19. The executive team took measures to mitigate the impact of the lockdown to offset the revenue shortfall, which protected the profit margin.
The performance of the Company's online publishing assets has progressed during the period. Entertainment Daily which is focused on TV and showbusiness news had a strong six months. The number of sessions recorded was up 16% compared to the same period last year. In February 2020, Entertainment Daily had more than six million unique users to its site, a similar level to December 2019. December is historically the biggest month of the year for Entertainment Daily. In the second quarter, the lockdown dominated the news agenda and reduced the flow of entertainment news. As a result, revenue for the period was flat.
The Daily Mash, which the Company acquired in March 2019, has been successfully expanding its user base. The site saw record audience figures through the early stages of lockdown as the nation looked to brighten its mood. Top articles through the period included: 'School kid who didn't revise and prayed for a miracle scared of his own powers'; 'Waitrose limits food sales to people with detached houses'; and 'Your guide to holding out till midday before starting to drink'. This increase was also helped by the Mash Report TV show which aired on BBC2 through April and May. The show achieved record viewing figures as it successfully adapted its production format. Importantly, its share of the younger audience demographic grew, which is a key metric for the BBC when judging success. ... "
https://www.lse.co.uk/rns/DBOX/pre-close-trading-update-dtzdfy2k8x3etzq.
Hi I have been buying this up also - it won’t set the investor world on fire but solid business, profit, cash and growth in traffic in these markets. Ad spend will be dented but also throw up some acquisition opportunities.
Only gripe is directors need to get moving on the strategy and liquidity sucks - I guess MM want this low to feed of the bones of any raise.
I’ve just bought a few £k in this company. Is a profitable business in a fast growing market and think they will be doing well in the current lockdown and have already announced record traffic in the first week of the lockdown. Will be interesting to see what they invest £1m in cash on
Anyone else following this stock who has a view on the results. I'm a novice on social media economics but the overall numbers seem to be sound and the post year end progress seems excellent. Any thoughts?
No worries at spread, it will paper loss at the beginning. This is a profitable stock with cheap price.
Don’t be surprised if u see it near £1 in few years
Spread is 15%, way too high. Staying away for now.
Can't find their 2019 balance sheet...
nice Update- all seems very positive. Think I will have to hold long term but seems set to offer something here
First trade on Full Ask lets bump this up again.
Ip 50% only to close up 21% is this a clue for the next few days? Possible more gains!!! Been out of the loop a while what is going on