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Im here at 6p! not much hope for me :(
Deluded or not, I am in here at 4p, and therefore must remain optimistic. It is certainly in MXCP's best interests to make a success of it - the founding partners are banking on it. But, as I have said, we know nothing of what progress may have been made, and the extent to which coronavirus or anything else may have impeded affairs.
I do think with new management, cost savings, etc., the past is indeed in the past. MXCP say the company is perfectly able to achieve market profitability, and they will get their historic and more recent money,whatever it is, back, but as you say there is nothing to go on.
Like you, I am waiting for something from the company. I have no idea what that will amount to.
Think the key is cashflow - once the onerous contracts are paid down this year (second half) then positive cashflow should be generated and a much clearer view of what this business can generate on a base case. I think this is a company where you really have to focus on what is coming up, rather than what has happened (within reason, as it was pretty appalling!)
Things like device management which had spare capacity and growth potential must surely be promising now as companies empower their staff to work anywhere and need to manage the device lifecycles? Add to this, cloud, their own network, remote working - it all just feels like the IDE portfolio of services is in a good place? As long as their end clients can still pay them!
Probably worth a gamble, which it is as we have no numbers whatsoever.
Then that would prove to be an excellent result, as in their finals on 3rd. December MXCP said, "We remain confident that we will see a complete return of our capital from IDE."
Your guess is as good as mine, without any numbers to go on.
I don't think 9-10p is a bad guess (also about what MXC needs to get its equity back in full by my reckoning).
Any thoughts on valueing the business? With the LN'S fully paid I would hope for at least 10p / share?
Interesting situation - absent any numbers, nothing more than a semi educated guess open to us.
But surely some parts of this business look very well positioned for the future and are also probably trading reasonably ok currently if peer group updates are anything to go by (e.g. Lifecycle Device Management, Networks and Remote working solutions).
I also think Andy Parker will want a success story on his first foray back into a plc Boardroom since his ignominious exit from Capita. Note he has taken a new (private equity) Non Exec role, so must feel somewhat comfortable that IDE is on the right track?
Think IDE will be sold reasonably quickly, once the provisions are paid down. Balance sheet looks clean, if stretched. Cost synergies available to any acquirer, not least losing the listing costs. MXC mentioned there are about 15 private equity backed roll ups in the sector, so if IDE is stable and modestly growing, someone will want it I am sure as part of a scale up story.
But absent any numbers it is total guesswork really!
It has taken a turn for the better - perhaps investors feel progress will be seen to have been made when Íde next reports. Should things go reasonably well, then we can look forward to MXCP selling over the next five years as they have made clear, and presumably that will mean a sale of the whole company, possibly/probably to MXLG. As a shareholder in the privatised MXCP, I think much turns on Ide's success in relation to the affairs of MXCP, and the founding partners' retirement wealth.
At a 70% loss now :( please someone help this company
In common with many and in the absence of company related positive or negative news, the price is inevitably being marked down in an attempt to stimulate trading. I expect that in this downturn the company will continue to identify and implement cost saving measures, alongside ongoing efforts to renew and gain contracts. Next published figures should not have been detrimentally impacted by global events.
25th. July 2019. "We are confident our strategy is on track and look forward to reporting continued progress throughout the current year."
26th. September 2019. "In summary, the first half of the year has shown a significant turnaround from the upheaval of the previous year. We have been successful in renewing significant customer contracts and in progressing new relationships. We continue to explore further areas where costs can be saved whilst investing in areas that will help drive growth. We are confident in the outlook for the Group and remain ambitious in securing and improving margins and cash generation."
30th.December 2019. "IDE is also pleased to announce that the success it reported at the time of the interim results in September in renewing significant customer contracts and in progressing new relationships has continued. Several additional multi-year customer contract renewals, including one two-year deal worth over £1 million per annum and a further two two-year minimum deals worth at least £1 million in total have been secured. The Company has also started working on a tech bar project (on-site technical support) which is worth over £1 million per annum and recently added a new name customer with whom it has a good pipeline of new business."
I see no reason to believe otherwise than progress is continuing ( on costs it has already culled much of its previous unproductive 500 plus workforce )
I think it unlikely we shall hear much before results for the year to December. (when MXCP will be a few months into private ownership) The company was fairly upbeat at year end on 30th.
Any thoughts on the large drop? I know the FTSE is being pummelled, along with all stock marks - do we think it's all attributable to that?
I get nervous as the last time it just started dropping like this IDE came out with a lot of bad news about a week later as word clearly starts to leak out.
IDE is a work in progress, as everyone knows. I have recently taken a small position, much for interest to follow with MXCP delisting. These rises do not always stick, but I believe the time will come when when they will. With their large shareholding and loan notes ( the Íde debt ) MXCP will be pulling out all the stops to make the very best of the company over up to 5 years, readying it for sale. I anticipated, and it might yet happen, that some of the pi's not wishing to stay with a private MXCP, may also buy in.
Any idea what is causing the rise today
From: https://www.channelweb.co.uk/news/4008628/best-worst-performing-publicly-listed-uk-resellers-2019/
IDe Group is #1 in the best and worst performing.
From the article (which requires login):
1. IDE Group
Start price: 2
End price: 4.4
Percentage change: 120
Current market cap: £17.6m
IDE was still in a period of transition when it started 2019 and actually saw its share price drop 65 per cent in H1.
At the end of June, trading of the firm's shares was suspended after it was forced to delay the publication of its audited financial results.
But these results were eventually confirmed at the end of July, with the firm's valuation climbing over 300 per cent when trading resumed.
Its share price rose further when half-year results revealed that a £7.6m adjusted EBITDA loss had swung to a £1.2m profit. Losses after tax were reduced from £35.5m to £2.9m.
The firm finished the year by revealing a number of significant contract wins, including three contracts worth at least £1m per year - a farcry from 2018 when the business could have gone bust.
Another decent rise on back of contracts and financing
A decent rise today. I wonder why the sudden interest and share price increase
I take it Ide is of the view there has been insufficient substantive change to require notification, and the MXCP RNS is a flavour for MXCP shareholders. I have no direct current interest in Ide, but indirectly through MXCP to achieve some tech diversification through their investee companies. There looks to be a way to go with Íde in controlling costs, and stabilisation and growth of a profitable customer base, but we are told progress is being made. It is a turnaround work in progress, with as you say, MXCP stating confidence in their ability over time to ready the company for their exit (presumably by sale, and possibly to MXLG)
Overall sounds positive. I guess when they're that deep in, they've got to try and be positive.
Significant renewals and contracts - then why no RNS? I guess they're not that fussed on the share price right now. And what on earth is a "general level" of churn. And if that's affecting profitability again, why not RNS it to... you know.. the other shareholders? We shouldn't be getting business updates via another company.
In the interest of updating reports on MXCP/Íde, extract from MXCP results 3rd.December.
The path to recovery for IDE has been a long and difficult one and at times it felt like one step forwards, two steps back. Nonetheless the teams within the business, both executive and operational, have worked wonders and they now have a good platform from which to grow. The business was refinanced at the beginning of 2019 by the issue of £10.0 million secured loan notes. MXC now holds £8.0 million of these loan notes plus accrued interest, alongside 43.1 per cent. of the equity of IDE. The refinancing means that IDE now has secure, long term funding and no external third-party debt as the loan notes are held solely by shareholders. Whilst there remain challenges, in recent times IDE has moved into positive territory by beginning to win significant renewals and new contracts, testament to the will, enthusiasm and dedication to customer service from the operational team. There still exists a general level of customer churn in IDE which has impacted current year revenue and profitability, but this continues to be addressed and once this ceases, we anticipate the business will have turned the corner and should achieve market levels of profitability, which it is more than capable of delivering.
We remain confident that we will see a complete return of our capital from IDE.
It's good to see the a bit of a ceanup. FINALLY removed details of people who haven't worked there for over a year. Also a bit of activity on LinkedIn which is good, although someone linking to their staging site which isn't great.
The web site looks to have been updated recently.
Looking good with a lot more information.
do we think these will go in the rite direction or are we going to see negative after negative