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A week since I wrote and not even had an acknowledgment yet…
Just spoke to the cleaner (Hans) - he assured me the company was clean but said he couldn’t understand why all the whiteboards in the CEOs office had the same message “Behandle die Aktionare wie Pilze” Moral to the story - for all the best dirt talk to the cleaner.
Just spoke with the broker (Stephen), he re-assured me that company is absolutely doing everything to get this audit sorted and accounts published. He also further stated that if there was anything wrong or found to be wrong "they" are duty bound to inform the market - even if they are suspended. Moral of the story "pick up the phone and enquire".
I also wrote but was a little less subtle than you - I simply asked if they are still solvent and if so when the accounts will be released to prove it. I don’t expect either of us to be afforded the courtesy of a reply.
I wrote to them today - see below. The more of us that express our concern the better.
"I want to add my voice to the many, many shareholders that are unhappy about the much delayed 2022 audit and the seemingly endless share suspension. I increased my shareholding in HEIQ just a few days before the share suspension came into effect as the tone of your announcements suggested that this was a minor and temporary matter. Many months have passed with very little in the way of updates from management. What can we conclude apart from the fact that there is something rotten within the company’s accounts? You have a responsibility to keep shareholders informed which you are neglecting. Please update us without further delay.
It's nice to hear your optimism MMB007 but the longer this audit delay drags on the more it looks like there is something rotten within the company.
And now another 3 months have passed and there is still no sign of the audited accounts. This is starting to look like a very serious problem. Will the company's suspension ever be lifted or are all shareholders - myself included - looking at a total write off?
It's very poor that after almost 4 months they've not given any indication of when the shares may become tradable again. I've written to them today to ask for an update so I guess we'll see if I get a response shortly... Suggest everyone else asks the same!
Another month without updates - total contempt for shareholders. Anyone know if they are still actually operating - have there been any redundancies, are staff still being paid?
Another good article on the MAS investment. Shame no details of the percentage they bought, but whatever it was, the valuation of AeoniQ is still a multiple of the HeiQ market cap.
https://www.forbes.com/sites/brookerobertsislam/2023/07/05/mas-holdings-and-heiq-take-sustainable-plant-polyester-mass-market/?sh=d64ffd812cb8
LP89... you may have missed these, but since the suspension they have made 2 announcements:
https://polaris.brighterir.com/public/heiq/news/rns/story/r74d71r/export
as well as todays which is posted below...
Regrading your comment, the CEO and management own 24% of the shares. Anyone can make a 'offer' for the company at a price to the main shareholders - but it has to be in the interest of the shareholders - Given the potential newsflow, I doubt many shareholders would want to sell their shares at anything other than a multiple of what the stock price was at suspension...
CEO owns 10.3% of the company, this is a long way off any sort of offer to go private, dont they need 40% to force anything like that through?
I wouldn't be surprised if the directors or a competitor try a low ball offer to take this private again .
I don't trust the management they look like cowboys and spivs.
I agree 9 weeks post suspension and no update is poor showing.
I contacted the investor relations and them replied with pretty much a carbon copy of the RNS announcement.
Even an announcement to say we are still working on the audit etc etc we expect to publish in 4-6 weeks. Or something to indicate the timeline we are dealing with.
Kind of frustrating having capital tied up without updates
Very positive announcement on AeoniQ this morning: Another investor signed up - manufacturing this time which is positive: https://polaris.brighterir.com/public/heiq/news/rns/story/rd1538r
Great to see that John Lewis customers will sleep better on their anti-allergy pillows but it would be nice to see the same progress with the much delayed Audit. You can't help but smell a very large riparian mammal and wonder what has happened to all the cash raised and the value of the numerous acquisitions made. Hopefully I am wrong, but at the very least the Heiq non-communication department needs to overcome its allergy to keeping shareholders updated.
That's more like it, certainly better than the uninteresting grey Hugo Boss polo shirts at £140.
HeiQ now for sale in the UK.... John Lewis : https://www.johnlewis.com/search?search-term=HeiQ%20Allergen%20Tech
This is what the company said in the RNS before the share suspension:
"The Directors anticipate that the Company will be in a position to publish the audited report and accounts in the coming weeks. The Company will provide further market updates around the expected timing of the annual results publication once its financial reporting and the audit work is sufficiently progressed.
This is starting to drag on. Weeks are turning into months. Should we be worried?
I bought Heiq for the same reason as you, albeit, in retrospect paying too much. But I don't believe 5X too much. I am up for buying some more but suspect there is not great rush.
A similar pattern emerged at Equals, although fintech rather that materials technology. I that case the reports were slightly disappointing but the underlying growth of the quality corporate business was visible. Nevertheless, the market knocked it from 116p to 25p, since when it has recovered in a fairly steady line from Jan 21 to now at 92p. Plenty of time to see the continued progress and market sentiment catching on.
I think Heiq has great potential and, because of the current lack of support, there should be time to see clear operational improvement before the market price increases significantly. In other words, one for the watchlist but probably no rush today.
I would agree with the premise that this should bounce post the suspension
I have had a couple occasions where auditors have changed and new enterprise accounting software is being implemented. Both cause drlays to the normal course of business
The recent rns was pretty clear it was a process / procedures issue. Had Deloitte identified a " black hole " in the numbers this would have had to be annouced . Even if only at a potential risk level
My expectation is accountscwill get issued in the next couple of weeks alongside info about how the supply chain is working through the excess stocks in thevmarketplace
It was that that caused the drop from 50 p ish . Also expect expect an update on the cost control program. When that lot lands logic says the stock will rerate upwards
I originally got interested in Heiq because of its IP and 10 year plua track record of sales and profit . The fundamentals dont change once the current problems are worked through. Aa a result i am minded to think this is a buying opportunity at an depressed price . Could of course be wrong but nothing ventured nothing gained
ATB LTH
Anyone considering a HEIQ buy after the return from suspension may be interested in this research:-
"What to do when one of your stocks warns on profit
We discuss how share prices react in the aftermath of a profit alert
06 June 2019|Feature
... RECOVERY FROM A WARNING DEPENDS ON CIRCUMSTANCES
A study by UK finance professors George Bulkley, Richard Harris and Renata Herrerias looked at 455 profit warnings issued between 1997 and 1999 and tracked the stocks until 2001. Unlike some of the other studies that we discussed, this study looked further ahead. It tracked future earnings announcements that were released to the market.
It found that between 12 and 24 months after a profit warning, the average cumulated excess daily returns of these stocks was a positive 23% relative to the market.
In other words, the stocks showed strong signs of recovery between one and two years after the warning. This can be explained by analysts being slow to change their opinions, even in the face of new information. ..."
https://www.sharesmagazine.co.uk/article/what-to-do-when-one-of-your-stocks-warns-on-profit
The period of a year gives sufficient time for the s.p. to deflate, and for business recovery to take place and be sufficiently reported.
And it's also partly psychological: the one year period gives sufficient time for 'emotional healing'; and there's an element of 'self-fulfilling prophecy' re standard expectations of the common time period before recovery.
A good recent example of this 'one year rule' working well is NWT (Newmark Security).
After its 15th. October 2021 trading update the company's s.p. nearly halved over the following twelve months.
But since its 27th. October 2022 trading update, its s.p. has more than doubled (from 25.5p to 56.5p), on improved trading.
Newmark Security (NWT) 56.5p Market cap. £5.3M.
https://www.lse.co.uk/SharePrice.asp?shareprice=ARA&share=Aura-Renew-Acq
LOL Yorker!
Delaying the suspension date does seem a bit strange. Could it mean the audit issue is purely technical in nature rather than a signal that a black hole has been found in the accounts? Or am I reading too much into this. Anyway, I took the gamble of topping up at 18p. Let's see what the next few weeks has in store.
It would have been better to suspend trading straight away rather than give notice.
It obviously doesn't take much to be "CEO of The Year" in the textile world!