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Excellent comment Adastra. Nice also to see another 250k pop up today. One possibility is these new funds have elected not to cross 3% mark.
The government decision today to allow fracking in Lancashire is great news. PPS/Cuadrilla have been working together since 2014 to lobby opinion and operate in the arena of difficult decision-making. This is undoubtedly a real feather in the cap for PPS and since PPS is now integrated into Newgate its a great coup for the company as a whole. Spot on. Let's see how long it takes the news to sink in to potential buyers here.
Looks like all the work with Cuadrilla is paying off with fracking approval in Lancashire getting the go-ahead. wukww.bbc.co.uk/news/ http://www.ppsgroup.co.uk/case-studies/cuadrilla-resources/ This is a real coup given PPS forte is working in areas of difficult communication and decision-making. Should give real kudos to PPS in negotiating with bigger companies.
From the interims [verbatim] - The outlook is undoubtedly strengthening all the time now that the Brexit vote is behind us, but we cannot relax our resolve in growing the business. We can say with confidence that the platform is there to continue driving the business forward. - Thats a very guardedly confident statement given the cautious update pre-Brexit IMO -
Hi GT. Definitely and categorically working on the loan debt issue as I have asked all BoD on numerous occasions. I am presuming that this is why, despite the upturn and big increase in work in progress, directors have been prevented from buying. Whatever the reason for Emma Kane's sale, which I presume was for personal/family reasons, I am sure that these would have been mopped up off-market by directors. The fact that that didn't happen, and they have obviously been absorbed by an 'accumulator?' appears to vindicate that view. Fact: the company forewarned of a possible bumpy time after 23rd June vote but the interims indicated increasing progress after subdued trading around Brexit. That would have triggered an immediate rise from this low level but for the loan debt. These guys are ALL seasoned individuals with acute financial awareness - they KNOW that any resolution of the 12% loan debt will catapult the company forward. Ergo - it's a priority. Bob has supported Porta through the assembly and primary growth stages but as a rule expects to see a three-times multiple on his outlay. This must therefore be an ongoing balancing game where Porta is poised for considerable growth and we need someone like Nigel Wray or Chris Mills to sit down with Bob and work out an amicable arrangement. Bob has a lot of shares so he will be the major beneficiary of any substantial re-rate. He also realises that it is his 12% loan debt that is putting the brakes on that progress so it's a trade off. Time to sell the debt down to LIBOR plus 1%, get the rerate and bask in the sunshine of a rising MCap with a shed load of shares Bob. I'm sure it requires a little more horse-trading but there must be an entrepreneur who can see the potential now being built in to Porta. All IMO.
http://www.gorkana.com/2016/10/keh-appoints-newgate-communications/ Nice to see Charlie Chichester leading some of these clients. They have 4 people working on this one client. Humphrey Percy, chief executive officer at KEH, said: “We are pleased to have appointed Newgate as our PR agency following a competitive pitch. The team demonstrated the expertise and experience we were looking for as we seek to build our presence in the UK and beyond and I am confident that Newgate will provide us with the critical integrated communications support we require as we grow our business.”
I think whoever was in charge here would of suffered these results. As I understand it TTMV had one main client. When they lost the client they had little choice but to streamline the operation into Summit. The European offices never really gained traction and this is why they closed. Is this management? Crowded European market or just wrong people? Mix of many things is likely. Bob has supported the share in terms of buying stock and injecting money into Porta. Can't fault him there. The issue is why would he take on a new bond at 12% in last few months. He must know these are slowing Porta from making a profit. The interest on these loans alone is stacking. The shares he has bought have been paid for by the loans anyway. So far he has shown little ambition to take this firm private. £8-10m is not much for him? I agree some of the new hires could be senior staff of the future but many were bought in with roles in mind. I don't know how many years DW has left but if he was planning to resign he would of done it by now. As you say this company is in a classic turnaround situation? If that is the case why should he resign?? As you pointed out new business is up 50% compared to previous results? Note also one of the new directors hired was from TTMV and had vast years of experience. Age and management are just numbers. So it does not necessarily follow the new blood will instantly be made directors.They need senior staff to lead the clients too. Which is what Steffan will add here. Same for Gavin and others. Look at the successes in Asia. Australia, HK, China, Singapore. The downfall has been PPS and Publicasity. Both of these were meant to be making 500k or so in profit. Not sure where this has gone. Hopefully Newgate and PPS are now turning the corner. Redleaf seems to be doing very well. I think things are coming together here. My gut is the directors are locked out here or they would be buying millions of shares. Especially if this is hugely undervalued! If they are not locked out that asks big questions. Then we have to ask is our trust misguided here. See what next few weeks bring. On trade today most of the sells were buys. The mid price 3.25p trades are buys. The 250k trade is certainly a buy. Suggesting someone might now be protecting the SP. It's an interesting time to buy. Especially if you think they are working on the debt issues. See what happens.
I think any refinancing will be accompanied by a re-jig. Bob has been very supportive of Porta, hence my thanks to him at the AGM. David Wright built the group to critical mass for which he should be commended. It is his baby and the old adage of see the way, point the way then get out of the way holds true. He has effectively passed the wheel to Steffan Williams who was brought in to oversee the next phase of growth. He is showing his prowess in steering the ship into bigger oceans and successfully bringing on board influential industry players and their networks. The company cannot continue to carry DW and FD Gene at £250k pa unless they are performing 100% in line with Steffan's vision and I honestly believe its time to make Steffan CEO. David should see this and voluntarily 'retire' to enjoy the increasing fruits of his labours. He has shares and options which will both increase markedly in value under new leadership. Bob, as you say has great diplomacy and will get great kudos from overseeing this as Porta accelerates. He will also benefit from this fundamental restructure. The new lead has to come from Steffan with Gavin, Charles and hires supporting his vision which is growing the business as he takes it to a totally integrated platform. The sheer quality of new hires vindicates his optimism fro the outlook. Watch this space IMO. The measures I have outlined would herald a massive re-rate overnight as this company has a global£35m turnover held up by a miserable £10m MCap - crazy, and a turnaround in the making. Just needs the match to light the blue paper.
Bit harsh. Steffan is the MD of many of these smaller firms now. I bet he has plenty of clout here. He could well be next CEO here one day. I doubt the board is playing this out just to max out on wages. Accounts and CEO can earn a lot more than these 2 do. The main obstacle to change is Bob. He owns 15% here and controls the loans at 12%. Personally I would ditch him and borrow from the banks or other investors not looking to milk Porta to make money. I saw nothing at AGM to suggest he was hands on here. Very quiet man. Sure we post a lot about new hires and contracts. Least there is a steady stream of news. Especially for Newgate. It's the volume of new hires that is equally important. When things are going well you hire more staff. The results were impacted by historic closures and D and A. Beyond this I saw 200k loss. Many positives for H2. Especially with the pound falling. Plus current work value 50% higher than last week. We do need some news on refinancing. Few weeks off? I can dream!
Agree - excellent post Baron and hit the nail on the head. The interims highlighted a re-presentation of the company with its cutting-edge intergrated offerings. Steffan Williams is doing a first-rate job, attracting new clients and successfully encouraging ace players to join Porta. We now need to clear out the old guard to cement that change in the eyes of new investors. Time to give Steffan the reins and let him lead the company as CEO with new FD. Swingeing but necessary. It would reignite the prospects in a flash.
this before in a share, that promised so much but, delivered so little to shareholder value. the old saying , talk is cheap, springs to mind. obviously conflict amid the ranks and main holders going on
Excellent post baron.
This lot are beginning to look like a load of chumps, which we know they are not. A fairly anodyne set of results last week 'handled' by Redleaf ended up with the share price tanking further. The share sales by Redleaf MD Emma Kane were very unhelpful, and bound to unsettle shareholders. In the circumstances it's hard to know which side of the tent she's at. Plus there's no theme for investors to latch on to as to why the stock is cheap but going to get dearer, ie a lack of clear direction as to where the group is headed and how it's going to get there. One possible explanation is a lack of agreement between the four players at the centre. Who really is in charge? Morton is Chairman, the biggest equity holder and controls the company through loans, so he's empowered. Wright is the architect of this construction - the man with the vision, who's done it before and GG the CFO is his stooge, so he's has a franchise. Williams is the saviour, brought in to realise the potential and is therefore the future. An important role on which the whole Group depends. It has to be said that however visionary Wright is, he and GG have got this Group into a hell of a mess. Over borrowed. under managed, and profligate on HO costs, there hasn't been much value added to all these acquisitions. Yet I see that for their troubles Wright and GG helped themselves to a doubling of salary in 2014, adding other fringe goodies in 2015. They're probably keen to perpetuate this situation for as long as they can, which is going to be an obstacle for Williams possibly to the point where he can't implement and realise the Group's potential. If there's any truth in this then others will work it out. Possibly Emma Kane already has. Morton could just sit there, in the knowledge that if the Group continues to drift he could eventually pick it up as the biggest creditor. However, he's been a bit more proactive in the past, and he needs to be so now. So all of us stale bulls can crack on all we like about sexy hires, new accounts etc. etc., but we're not going to see anything in the share price until there's a management reorganisation, and you don't have to be Jack Welch to know how that should be configured. I am very confident though that Morton is abreast of all these events. However, he needs to take at least two decisive steps on the management front without much further delay. Otherwise Williams was brought on board under false pretences.
http://www.gorkana.com/2016/10/newgate-appoints-former-wales-office-special-adviser/ Newgate Communications has appointed Dr Tomos Davies, a former Wales Office special adviser, as associate partner within its public affairs team. Gentry added: “Having Tomos as part of our team cements our position as one of the leading integrated agencies in the UK. In addition to his hugely useful insights into the national Government, Tomos of course also knows the administration in Cardiff which is a huge benefit to Newgate’s local engagement specialists PPS Group too. It’s exciting to have him on the team.” More to hires follow? Certainly cementing the Public Affairs area of Porta now.
Still a large overhang here. Looks like the 3.35p trades are buys in a drifting market. Which is why I am waiting. The Redleaf owners may want the money if they are starting a new business? Not done a search on Emma Kane's partner. Probably business reasons of some sort.
Just topped up with a few, but I note it is listed as a sell. I wouldn't trust the buys/sells statistics on here.
That'll do for the underground extension with swimming pool and gym.
I doubt it they just got 424k from last 15%.
Let's hope they're moving house and need the money.
Okay Emma and partner down to 2.52% on investors page. So they cleared about 6.37m shares. Yes her partner sold his stake too.
John Foley has made it onto the investors page on Portas website and holds 0.3% of the company. They have not updated Emma Kane yet. Maybe this will come later?
Looks like the funds have taken Monday off. Far too quiet! Hopefully get some news in next few weeks. 3-3.5p seems way too low here.
And that's why my money is on this new raft of management to sort it quickly as its a glaring reason for this low rating given prospects. I am assured that it is a top priority.
Agreed 100% Adastra, but layer on the need to refinance loans to Bob. His 12% coupon is crippling. Fact.