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It’s been a long time since IDE created any interest. Doing so now.
Still waiting on some form of loan repackaging, probably in view of Kestrels conversion ( won’t be odd ones out in my view) accompanied by some extent of debt for equity swap.
Summary and Outlook
On the 28(th)September 2018 this Company reported a damning review of the
Company by its Executive Director and representative of the largest
shareholder, MXC. MXC, along with other shareholders committed to resolving
what was a terrible situation for all shareholders and backed that with new
money inviting all shareholders to participate.
It has taken three long years to turn this company around, but I am truly
delighted to say that at last, with the expected sale of Connect, we have a
meaningfully profitable company with excellent prospects.
This thankfully is now in the past and with the Company entirely focused on
its partner revenues through Manage we have an exciting future ahead of us. At
both a trading, post central and PLC costs we have a profitable business. Our
focus is now entirely on growth, continued organic growth and the possibility
of acquisitions. Our experience of right sizing this company and moving old
style working practices into new, more efficient ways of delivering service
mean that we can operate profitably and decrease the cost to serve for our
partners. It's a hackneyed phrase but a true Win - Win.
The Company is now seriously looking at options to remove the debt overhang
and is liaising with the debtholders to ascertain the best way to resolve this
and finally allow the company to prosper for all shareholders.
the Company announced a major contract win with an existing
partner in January 2021 that would deliver revenues of £22.5m in the
subsequent 3 years with a possible extension to 5 years.
I'm delighted to say that this relationship has deepened and extended quickly,
indeed the unfiltered pipeline for this division now runs into north of £60m
albeit this has two major contracts within it.
Financial highlights for the expected continuing operations
· Revenue* of £7.6 million (H1 2020: £6.8 million)
· Gross profit* of £3.6 million (H1 2020: £2.5 million)
representing an improved margin of 47% (H1 2020 37%)
· Adjusted EBITDA** profit of £2.1 million (H1 2020: 0.5 million)
on the run rerate
mannan: what?
: £17M Debt
Troajan
Good
https://www.**********.co.uk/articles/traders-cafe-with-zak-mir-bulletin-board-heroes-october-10-2b61b01
Management will get on with what they said now. In truth, I expect they have already agreed what’s going to happen on the debt. Just not telling us yet.
It may not be pretty, on the various loan notes, but next bit of information will get rid of doubt and ‘clear the decks’ - to a better extent for the company anyway - and then we’ll be waiting on something, hopefully more positive than we’re used to.
Well, I’m at 2.5 now for my sins. Not holding my breath short term, but there’s a chance.If the others convert some on the same terms as Kestrel that’ll be the price it’s done at.
Course, you have to think of dilution and so on.
Haven’t worked it out.
See what happens. It’s low liquidity.
Agreed. I'm pretty relaxed about it now. I've lost virtually all of it. I see I paid 29p five years a go for my first lot, then just kept digging each time it went down! So I'll just wait and hope something comes allows me to claw a bit back!
Presumably their future actions are aimed at a better financial position for the company, themselves, and hopefully pi’s. That’s what they tell us. I think I shall be fortunate to get my money back. I don’t care how they do thar for me, as long as they do.
Acquisitions was definitely their approach with these roll ups... I just worry that IDE is too small to do anything meaningful in the M&A space. I guess we'll see.
They’re an enigmatic lot, Mxc.
Despite all the problems here, and Ide is not out of the woods yet, they’ve continued to throw everything at it. They are significantly invested, and partner Smith went in to manage it. The pressure must be on to make something of it before they hang up their boots in 4 - 5 years and draw their last payout from the ongoing sale of Mxc assets.
In December 2019, IDE price 2p ish, in reporting to shareholders at the time they were taking themselves private, Mxc said “We remain confident that we will see a complete return of our capital from IDE.”
I was already in but bought substantially when Mxc price tanked tanked on privatisation ( moans and groans from pi’s ) Pretty much in the dark now, invested in a private company. But they must be doing things right, because returns on tender offers against NAV, despite IDE, have increased and are pretty good (so far ) in my own book.
Now, it’s all in the outcomes ( the eventual sale of this ) and not the promises, isn’t it. But they have time limited themselves and can’t afford to be laggards.
With that last in mind, and there’s been a lot of dark water under the bridge, there was a time when this board was full of conjecture about IDE being used as a vehicle to satisfy Mxc’s arrangement with Liberty Global to build a company “of size and scale”. And sell it to them.
I thought that dream was over. But you never know with these things.
On a slightly different tack, spending cash to grow is also in mind.
“Our focus is now entirely on growth, continued organic growth and the possibility of acquisitions.”
There you go.
My last on this. It must have been subject of debate by all for some time. So there may be a clue in Kestrel’s earlier conversion. Very unlikely anyway to be other than part of the scheme of things.
https://www.lse.co.uk/rns/IDE/conversion-of-loan-notes-and-issue-of-equity-03ct1h7obr0x2nm.html
It would seem, punters at large are unconvinced. Perhaps, like me, they are wondering how the debt-holders, Mxc et al, are going to get at least their capital back ( interest is currently being rolled up for payment at end of term) Mxc will have a cunning plan - that is where the partners hold their shares - and they are looking to have sold off all the assets in 4 - 5 years.
Andy's last bonus from Capita would have bought almost a quarter of IDE a couple of days back!
I agree with you on MXC. They are sharp, and if anyone knows and can sort out this sort of company it's them. I just still fear for me as an average joe investor. But, the damage is done for me. I've been wiped out. I just sit around and hope for some return some day.
Though invested ( and losing ) I have become more of a casual observer.
Andy Parker says, "This day has been a long time coming but for the first time in three years we can confidently look forward to a positive and rewarding future for IDE shareholders."
You would think he might buy some shares. Perhaps he will.
I'm an Mxc shareholder. Done well (so far ) since they delisted. They're rather sharp in my view. If anybody's going to come out on top, it'll be them.
They blame a lot on the old management, but they've done the odd thing like literally buying Nimoveri last year for £200k which carried on trading independently, and now selling it and the entire rest of the connect business for £250k!
"They're liaising with themselves." Very true. Talking to themselves about their own debt, to return value to themselves!
I can only see this as further dilution, surely? Whether private investors will ever see much of a return is one thing, but it was by far the most bullish they've been in an RNS in drawing a line underneath the past. There was actual proper growth in the managed business too by the look of it.
I detect posters are keeping they're powder dry. Don't blame you.
And we start at +18%
Very positive sounding RNS.
"The Company is now seriously looking at options to remove the debt overhang and is liaising with the debtholders to ascertain the best way to resolve this and finally allow the company to prosper for all shareholders."
They're liaising with themselves.