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it will recover but at least .have to wait more than a year .
I've just bought 500k at 0.39p. Seems a good recovery play. Results were poor but to still make a profit (albeit tiny) in this environment is not bad for a company which now has a mcap of just £1.0m
Spread still too wide to trade.gl
57.14 Spread!Forget it.
The spread here is too wide.we buy shares and show loss straight away.gl.
Yes, I think that's what clobbered it on the 15th. Priced in now?
Tempting here but put off by this para in the accounts:
"The Group's current secured order book is £9.3m, most of which will be completed in 2020. This figure is materially lower than it was at the time that the 2018 Accounts were released (£16.4m). The Board does not expect that a substantial amount of new turnover will be won and delivered by this year end and that the result will be a significant drop in the Group's performance for 2020 as compared to that in 2019"
On the basis that they fulfil that £9m of order book in the year with not much else then that will only give them around a £1m gross profit and with current overheads an overall loss, with the result of eating into the cash buffer
It seems like there is little hope in the pipeline, any thoughts ?
People are happy to rush into buying companies with zero revenue and a glimmer of hope. When you notice a company like this:
-- Profit before tax GBP840,740 (2018: GBP1,109,332).
-- Turnover : GBP21.0m (2018: GBP16.2m)
-- Operating profit : GBP850,851 (2018: GBP1,129,173)
-- Earnings per share : 0.262p (2018: 0.268p)
You have to say it's Cheap ! Market Cap £1.53M
What now?
Finance
The Group is financed from the cash it generates from its operations, with the support of a bank overdraft facility of
£250,000 at a group level and £700,000 at an individual company level; the group also had a term loan however this
was repaid during the year. Post year end the group also entered a supplier financing facility of up to £500,000.
SO even in these poor times they managed to pay back the term loan of £71,558, maybe even benefited from furlong employee govt incomes.
Ridiculous mcap - 2m
Decent order book.. Cash in the bank.. Proven business model.. Last business update wasn't that bad!
Buy and hold for 6 months.
It's a real shame they had gotten to 21m turnover, 800k cash, must have been clearing a profit of almost a million. Would have been at least 4p without covid.
I've put too much in here, including just a week or so back, but I wish I could do more. It hasn't bounced like so many other shares, and with its data centre flooring work it's in a sweet spot: the internet has been so utterly essential recently, has struggled, and the chancellor has promised £5bn for upgrading it. 5G coming along too. Meantime the sp is half what it was 5 years ago - or 2 months ago.
Something brewing here? no explanation for rise
Seems to be more interest being taken in MOGP in recent days.
Worth a more than just a looksee, I reckon.
Net sales of £1,210 leads to 6.25% fall?
Under the radar here, increased revenue, cash position improved, debt reduced.
There is a detailed report on Mountfield's recent AGM which can be found in our members area here: hTTps://sharesoc.ning.com/xn/detail/6389471:Comment:53290
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I am not a member and can access it. Useful read, thanks for posting it.
I assume only Sharesoc members (like myself) can access the link below, but I may be wrong?
https://storage.ning.com/topology/rest/1.0/file/get/3275568644?profile=original
The lack of research coverage is holding back wider attention. Either or both of a start of coverage by the likes of Edison and meetings with PIs via Mello or Sharesoc for example would be a good start.
The m/cap remains just £4.7m, with over 50% owned by the Board. It shouldn't take much attention to lift the m/cap by the 50% which would result in the more realistic £7m valuation as suggested in the AGM report.
That's an excellent summary of the results and prospects - it sees £7m as conservative fair value compared to the current £4.7m m/cap:
Https://cube.investments/mountfield-group-cashing-in-on-a-5g-bonanza-mogp/
Conclusion:
"In summary, I am very pleased with today’s results which show great operational progress and a very positive outlook for 2019. Since April 2019 the share price has also gathered some upward momentum rising almost 50% from 1.35p to 2.0p.
This seems like a business operating in a sweet spot and I perceive the Group to still be undervalued despite the rerating of recent months. Excluding the non-recurring tax charge the Group is on a net cash adjusted PE of <6 and I maintain my short-term valuation of £7 million which is likely to be conservative given the positive outlook. With ROCE / ROIC at circa 20% this is a very small but quality business that I am happy to be invested in.
I encourage any investors to attend the AGM in July, show their support and meet the management team."
https://cube.investments/mountfield-group-cashing-in-on-a-5g-bonanza-mogp/
Also some interesting info here from JLL re: 5G and he data centre boom:
https://www.us.jll.com/en/trends-and-insights/cities/how-5g-is-set-to-spur-new-data-center-construction
Sorry for spam internet slow....
Great RNS, market slow to respond but steady buying now. :)
Great RNS, market slow to respond but steady buying now. :)