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Death by a thousand cuts
That Andy Parker is a tough cookie, but sometimes too busy to check closet enough on his hires. I guess the fact that the CFO had such a lot of jobs on his LI cv flattered to deceive. Or IDE’s revenues flatters to deceive (us). Time will tell.
Yeah I'm surprised they haven't delisted before... they've openly said about the cost of being on AIM (which is a lot if you look at the current value of IDE).
Looking ahead, I don't think they're actually going to go under yet. And Mxc have to work out how to get the best out of it for themselves. To start with, stage by stage, there can be little reason to remain listed.
Also I have to mention this with a smile (what else can we do?) was SquirrelFeather optimistically saying the company wasn't a goner because "The new CFO would hardly want to be associated with a failing company "
This company is the gift that keeps on giving! Six months in the role.
whoops !
1 for 100 consolidation cant be far away surely.....quickly followed by the administrators. Utter shambles.
Difficult to read good into it for us lot, though I have a feeling Mxc and Co must have something in mind to better their own position from what it appears to be, loan notes and the rest of it.
Lol what an absolute disaster of a company. POS share.
They indicate no concern at all, but I thought it worth a mention.”
“Section 656 of the Companies Act 2006
It has recently come to the attention of the board of directors of the Company (the “Board”) that the value of the Company’s net assets has become less than half of its called-up share capital. It is a requirement of section 656 of the Companies Act 2006 that, where the net assets of a public company are half or less of its called-up share capital, the directors must call a general meeting of the company to consider whether any, and if so what, steps should be taken to deal with the situation. This is termed a serious loss of capital.
Accordingly, the business to be conducted at the AGM will also include consideration of whether any, and if so, what steps should be taken to deal with the situation. The Board is of the view that the serious loss of capital does not pose any risk to the solvency of the Company and, therefore no specific measures are proposed to deal with the serious loss of capital and no resolutions in relation to this matter are being proposed at the AGM. The Board, however, welcomes dialogue with shareholders on this issue and the AGM will provide a forum for such discussions to take place.”
https://www.idegroup.com/wp-content/uploads/2021/07/175153-IDE-Group-AGM-Circular.pdf
Unusual ( to me ) unitemised mention at the end.
“Section 656 of the Companies Act 2006 – serious loss of capital.
To consider, pursuant to section 656(1) of the Act, whether any, and if so what, steps should be taken to address the fact that the net assets of the Company have fallen to half or less of its called up share capital.”
I imagine it came up on audit, and the act requires the directors to convene a meeting for discussion. I do not know, what, if anything, it may translate to in practice for the business, taking into account the detail in the final results and ongoing support if required from Mxc.
eyups
Agreed. I bought in at various points. I've had the value all wiped out. I will just hold them until I am eventually put out of my misery. It would be nice to recoup just SOMETHING from this.
I'm not buying or selling. Lost interest really. Anything just seems like padding until disposal, as Mxc will do eventually.
Having now read the full RNS (that helps) it's clear they have spent a lot of time separating the connectivity and managed service businesses - even novating contracts between them. A year ago it was a split between partner and direct, but they seem to have changed that quite rapidly.
Still that gives clear understanding of how both are operating and to me selling the connect business is almost a given considering that activity and their other statements.
The managed service piece is performing nicely. Small, but nicely. It's a tale of two halves for sure.
The Nimoveri thing is a bit odd, as why is it still a trading brand and their MD owns and runs it according to LinkedIn?
Thanks jimbren. I admit I saw the names and thought that was the end of the RNS, I completely missed all the detail underneath.
Still don't think it'll make much difference though in how the results will be perceived.
Dog of a company this, SP performance indicative that it's going down the pan, utter POS
“£21mn loss”, goodwill writedown. Not a cash item. Plenty enough detail today if you read the RNS, eg the goodwill writedown.
Managed services has always been MXC's game and the connectivity market is a bunfight where scale is vital, so that makes sense to look at separating them out. But it does make IDE lacking much scale in anything.
£21m loss on £24m revenue though, that ain't going to go down well. And I do love the optimistic slant on "We don't have any debt apart from all that debt".
Will be good to see the full report when out.
Report reads a lot better than share price performance justifies. Cash generative at operating level, neutral overall. Prospects seem very bright for half the business, manageable for the other half. MXC support most welcome as they look to maximise their investment. At £5mn market cap it looks very cheap.
Someone stepping in to restore order. Or just index buying on a big AIM up day?
You have me at a loss there. Who is conjecturing what with which you disagree?
I think conjecture about the timing of the tender offer and IDE share price is unfounded. If you look at the take up of the offer it shows almost all shareholders took it. Smith and Weaver are the biggest share holders by far and must have taken their allocation so no skullduggery going on.