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My word, how refreshing to see a company doing well and excelling in its sector. Let us just hope they stay on course without deviating into too many other areas thereby losing focus as so many other companies do. It looks fairly clear the top bods see revenues continuing to increase thereby enabling a maiden dividend. My only reservation is whether this is too soon. Nevertheless I'm tempted to add more despite the rise today. I think this company is due a re-rating. Once these figures have been digested by the city, this could take off.
It’s a to give creditors confidence that they are solvent if you need to be technical. After applying to court and getting share holder approval they can distribute the cash as a dividend or for buybacks. Obviously the court could turn them down if they felt the business was not on a sustainable financial footing
It's not a rainy day pot of money - it is purely an accounting notion. The share premium account is cancelled in order to create a distributable reserve from which dividends may be paid.
Thanks for the info
Not watched it yet, will do later
https://www.voxmarkets.co.uk/articles/q-a-with-equals-ceo-ian-strafford-taylor-cfo-richard-cooper-6c2dc42
I see Paul Hill of vox markets and private professional investor has this morning fezzed up to this being his largest holding. Theses guys tend to be high stake rollers and has admitted to some fairly heavy losses recently. But he is pretty shrewd too . You dont make big profits without falls too. He has done a very good resume several times this year and admits to bias. Its pretty hard to find deep value in many places at the moment. So whilst it is evident from market reaction so far there is still a lot of caution out there I like this a lot and is also my largest holding along with Niox and Andrada mining. Gl all
Basically its a rainy day pot of money owned solely by the company to underwrite solvency. Upon certain criteria being met, such as the business is thought to be at least self sufficient and in rude health, they can apply to the court to have this money released to either return to shareholders in the form of a special dividend or other similar use . A bit like capital liquidity in a bank I suppose,(although you would want those crooks doing anything daft with our money). It is also dependant on shareholder approval. Anyone complaining? No, motion carried!
How does a capital reduction work? Not heard of that before. Does it reduce share count like a buyback? Is it beneficial for shareholders? Nice to see a dividend though as long as they keep up the growth investment
Capital reduction is interesting too. Niox did a similar last year . It’s hard to say how much this was directly responsible for their share price rise as nothing really happened for 3 months while at the same time they were significantly increasing cash generation. Suffice to say Niox share price has more or less doubled and we are also about to receive maiden special dividend. All good, but patience will be significantly rewarded here too eventually.
Not expecting anything from this idiot market. Agree with the cool sentiment expressed here. I suspect a largest holding for many of us. Talent and value will out eventually.
My initial reaction was "WOW". Is this the day we finally get to break out of the current range? Whatever happens today, I'm holding onto mine. This company is going places.
Once again great set of results and capital reduction of 25m. As I’ve said before it’s the only company that I look forward to results days. Well done IST and team. The maiden divi is a plus as well.
Hopefully a good day tomorrow.
Not logged in here for a while. Hopefully this set of earnings will keep us above 100p
Last posted in May, saying "I'm still sticking with £95m revenue for the year, and EBITDA will be at the top of range guess of 19-21m."
Need to tweak this up a tad, so revenue of £97m at least, and £100m is a possibility. Allowing for losses on Oonex, and going with the 20% guidance, then EBITDA will be in that order, 19-21m.
Revenue is growing at £30m a year (last year and this), even without Europe. Running the numbers for 2024, at say £130m - £140m revenue, then the leverage really comes through, with EBITDA doubling and eps nearly tripling! Then add in Europe ... ... ...
It's a case of when, not if, the market sees through to 2024 and begins to price in this growth. This time next year, the sp won't be any where near the 100p level. In fact 200p should be dust.
Update today.
https://www.investorschronicle.co.uk/ideas/2023/07/07/equals-in-line-for-further-earnings-upgrades/
GLA
The 100p barrier seems to be a challenge to stay above. If it goes higher in the next couple of weeks it must surely continue to rise. I always look forward to mulling over their resorts.and Paul Hill’s interview with the CEO. This is now tlhe largest share in my portfolio, long May it continue to rise.
Extraordinary mild but not unexpected reaction to todays news. I think the takeover was almost a formality but the speed of growth is something else without the additional business in Europe which is likely to be the same or more eventually. The pe was only around 16 which is lowish anyway for this kind of stock
A good start to the day, bought a few more @99p. A great deal of work and investment now required for Oonex, to make European expansion a success. Will probably take a while, plans have been made. Let's hope IST and the team make a success of it.
Agreed, proper job good (as we say in the South west)
Also bonkers is the likely low SP reaction. However, I'm holding for gold and IMHO this is likely to be a good investment with good SP returns and the potential for dividends in the medium term, say 5-7 years.
When we get out of the market malaise (2-3 years?), I'm personally targeting an SP of 140 minimum.
I don't think this is ramping but it's just a view.
Glalth
As I said, you look forward to updates and results with this company. Paul Hill has already been on Twitter and linked in, with his view.
https://www.linkedin.com/posts/paul-hill-a5994116_eqls-fintech-activity-7082237151702048768-jqI9?utm_source=share&utm_medium=member_desktop
You wait forever and then two RNS’s come along at once. This company is going from strength to strength. I hope these surging numbers from Eqls is reflected in a positive upwards shift in the share price today.
The whole of last years revenue exceeded in first six months of this years trading. Not many companies can say that. Incredible and Europe here we come!
Should be back over a quid at least. Long term hold for me. Great company.