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I'm starting to think that there may be call on some or all of the £2million from the purchasers. There was provision for this if they found nasty stuff
As detailed in the announcement dated 21 November 2023, GBP1 million has been retained by the Purchaser to set off against the expected negative working capital position of PPL as at Completion and other minor adjustments. That working capital position will be determined from a set of completion accounts that will be agreed following Completion. To the extent that PPL's negative working capital position at Completion is less than GBP1 million, the difference will be paid by the Purchaser to PHL and to the extent that PPL's negative working capital position at Completion is greater than GBP1 million, the difference will be paid by PHL to the Purchaser.
Could be significant value here, clean cash shell with £2m plus cash…dyor
Note that the RTO route may have attractions to the IPO route that may give it additional 'value' to a company wishing to float:-
• A requirement to give away less equity than in an IPO.
• Potentially more speed and certainty - an aborted IPO due to market conditions could be very expensive, and time is money.
• The 'shellmeisters' may also have attractive business acumen, contacts, and 'clout', that may be attractive to the floating company.
Remember that if the company floating is valued at hundreds of millions, then a shell value of a few £millions may be just 1% of the expanded equity, which is comparatively insignificant.
There have been some shell-RTO deals signed relatively recently where the shell has been valued at multiple times its cash balance, and multiple times the value of its original market cap. at the time it came to the market.
The positive aspects are that this business sale removes the perceived risk of PTY going bust, and creates a very attractive cash shell: with a low market cap., good cash balance, and capable directors ... and at an ideal time.
Poor stock market conditions tend to make it harder to IPO, increasing the attractions of the RTO (reverse takeover) route, and increasing the bargaining power of listed shells.
And meanwhile, the valuations of RTO targets for shells tend to be depressed.
So in summary, listed shells are in effect becoming more valuable: more capable of cutting a cracking RTO deal on great terms - i.e. a better shell valuation and lower target valuation, and great quality targets.
Moreover, listed shells are a great place to 'park funds' at the moment.
Many investors may wish to reduce their exposure to shares in companies with trading businesses, but holding cash for months doesn't give any real direct upside - certainly in the short term.
A PTY shell though will have both cash underpinning, and great potential upside - it could easily double or more from this level on a good deal.
And you don't have to worry about funds being tied up here for a while if you won't be using them anyway.
I was certainly hoping for a lot more (not that the share price was really factoring in anything more), and the buyer looks to be getting the business very much on the cheap.
But unless this deal quickly flushes out a fairly definite bid at a significantly higher price, this deal will very likely go through.
But a rival bidder would have to move quickly, as this deal looks to be being rushed through:-
"The proposed Disposal is subject to shareholder approval at General Meeting of the Company to be held on 7 December 2023 at 1:00 p.m."
https://www.lse.co.uk/rns/PTY/proposed-disposal-of-ppl-and-notice-of-gm-eccz5a1vycic7x8.html
Presumably this is a situation that only requires 14 days' notice:-
"If the directors of a listed public company call a general meeting, they should give at least 21 days’ notice except in certain situations."
https://www.rocketlawyer.com/gb/en/business/run-a-private-limited-company/legal-guide/general-meetings#:~:text=When%20can%20directors%20call%20a,21%20days'%20notice%20is%20required.
21st Nov 2023 2:43 pm RNS Proposed disposal of PPL and notice of GM
" ... 5. Strategy for the Company following the Disposal
The Company's proposed strategy, following completion of the Disposal, will be to acquire one or more companies and/or projects which are either cash flow generative or show significant potential for growth and a profitable exit.
Leveraging their knowledge and contacts, the Directors will seek to identify suitable investment and/or acquisition opportunities. At this stage, the Directors would not seek to exclude any particular sector or jurisdiction. ...
6. Use of proceeds
The Initial Consideration will be used to pay the settlement fee and agreed costs to the Pension Scheme totalling £639k, cover the costs associated with the Disposal, expected to total approximately £240k, and to provide the Company with working capital whilst it progresses with its strategy. ...
... 9. Related party transaction
The Purchaser is a wholly owned subsidiary of Pertemps Network Group Limited, a company in which Timothy Watts has a direct and indirect interest of 33.1%. Mr. Timothy Watts is a 22.8% shareholder in Parity and is therefore deemed a related party pursuant to the AIM Rules. As a result, the Disposal constitutes a related party transaction for the purposes of AIM Rule 13.
During the last 12-18 months the Directors have evaluated a number of potential opportunities to create long-term value in the business, including the acquisition and/or merger of other businesses in order to create a business of greater scale and value for shareholders.
During this period, the Directors have had exposure to the value ascribed to Parity's business by other interested parties, for example, the vendors of potential acquisitions considering Parity's equity as part of a structured deal, and the appetite amongst Shareholders to support a fundraise.
The Directors have also had three separate approaches to acquire the Company's recruitment business assets from medium to large independent businesses with verified access to funding.
Whilst comparing the potential relative values from these activities with the offer made by the Purchaser, the offer from Network Ventures represents the best available proposition for shareholders amongst those evaluated by the Directors.
The Directors have also considered the speed, certainty and relative cost-efficiency with which this deal can be executed compared to the alternative of initiating a full sale process.
Recognising the risk and the near-term funding requirements of the business, the Directors believe this deal represents the best available value for Shareholders.
The Directors consider, having consulted with the Company's Nominated Adviser, that the terms of the Disposal are fair and reasonable insofar as the Shareholders are concerned. ... "
https://www.lse.co.uk/rns/PTY/proposed-disposal-of-ppl-and-notice-of-gm-eccz5a1vycic7x8.html
21st Nov 2023 2:43 pm RNS Proposed disposal of PPL and notice of GM
"Proposed disposal of Parity Professionals Limited and notice of GM
Parity Group plc (AIM: PTY), the data and technology-focussed recruitment and professional services company, announces the proposed disposal of 100% of Parity Professionals Limited ("PPL"), the Company's primary operating subsidiary, to Network Ventures Limited (the "Purchaser") for cash consideration of up to £3 million (the "Disposal").
Overview of the Disposal:
• Under the terms of the SPA, on completion of the Disposal:
- 100% of the issued share capital of PPL will be acquired by the Purchaser;
- cash consideration of £2 million will be payable immediately; and
- a further £1 million will be retained by the Purchaser for adjustments based primarily on the working capital position of PPL at completion.
• The Disposal constitutes a fundamental change of business of the Company under Rule 15 of the AIM Rules and accordingly requires shareholder approval. If approved, the Company would become an AIM Rule 15 Cash Shell on completion.
• On completion, the proceeds of the Disposal will be utilised to remove the pension liability from the Company's balance sheet and in seeking to identify and execute a potential acquisition.
• It is also the intention of the Directors to change the name of the Company to Partway Group plc following shareholder approval and the relevant paperwork being filed with Companies House.
Further information regarding the proposed Disposal can be found below and in a Circular which will shortly be posted to shareholders and made available on the Company's website at www.parity.net (the "Circular").
The proposed Disposal is subject to shareholder approval at General Meeting of the Company to be held on 7 December 2023 at 1:00 p.m. Notice of the General Meeting and further information regarding voting and attendance is provided within the Circular. ...
The Board feels that the Group's core business is sound and Parity's position in the public sector is attractive but that it is subscale and would benefit from being a part of a larger group. The Board has exhausted a number of initiatives to source additional funding to invest in further growth, none of which it believed were in the best interests of shareholders.
For the year ended 31 December 2022, Parity Professionals Limited contributed £378,000 of profit before taxation to the Group's consolidated set of accounts. ... "
https://www.lse.co.uk/rns/PTY/proposed-disposal-of-ppl-and-notice-of-gm-eccz5a1vycic7x8.html
I thought of you when I saw the Hotel Chocolate news and wondered if you would comment. I hold here and believe that someone else will get the benefit of the recovery. I also hold PHSC and am content to continue to receive the generous dividend ,well covered, until its discount to net assets is eliminated by a predator or Mr Market.
DYOR
There has been yet another 'sweet' takeover today at a huge premium: a premium of c. "169.8 per cent. to Hotel Chocolat's share price of 139 pence at the close of business on 15 November 2023, being the last Business Day prior to the date of this announcement."
LSE % Gainers Top Lists
EPIC Name %
HOTC Hotel Chocolat +162%
16th Nov 2023 7:00 am RNS Recommended cash acquisition
https://www.lse.co.uk/rns/HOTC/recommended-cash-acquisition-4qephxjgzxlee8x.html
And another likely takeover at a huge premium RNSed today:-
LSE % Gainers Top Lists
EPIC Name %
SPE Sopheon +87%
"Sopheon shares surge as receives Wellspring takeover interest
Tue, 31st Oct 2023 14:10 Alliance News
(Alliance News) - Sopheon PLC on Tuesday said it received a possible takeover offer from Iops Buyer Inc, a subsidiary of Wellspring Worldwide Inc.
Sopheon, a Surrey, England-based enterprise software provider, said the takeover offer was for GBP10.00 per share, valuing the company at around GBP114.9 million. This is more than double the price of the closing share price of GBP4.90 on Monday. It said it would back an official bid if one was made on those terms.
Sopheon shares jumped 90% to 929.00 pence each on Tuesday afternoon in London, giving it a market capitalisation of GBP98.9 million.
Wellspring Worldwide is backed and controlled by Resurgens Technology Partners, a technology-focused private equity firm based in Atlanta, Georgia, US. Wellspring is a provider of software solutions and data systems for managing technology transfer and intellectual property and innovation activities.
Sopheon said discussions relating to the possible offer are well advanced, with its board intending to unanimously recommending the takeover, should an official bid be made. It would be subject to regulatory clearance, which Sopheon expects to receive in or before mid-December.
"The Sopheon board remains highly confident in Sopheon's standalone prospects as an independent company over the medium to long term, and is pleased with the progress made over the last few years in advancing its strategic priorities. The Sopheon board has however, in summary, concluded that the possible offer presents an attractive valuation for Sopheon, and a compelling liquidity opportunity not currently afforded by the public markets," Sopheon said.
It added that it has the support of key shareholders that represent 37% of Sopheon's issued share capital, with Barry Mence, a 17.8% shareholder, and Rivomore Ltd, a 19.5% shareholder, supporting the possible takeover. Barry Mence is a non-executive director of Sopheon, a founding member and has served as executive chair of the company.
By Tom Budszus, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved."
https://www.lse.co.uk/news/sopheon-shares-surge-as-receives-wellspring-takeover-interest-okutffxytm1e5dm.html
LSE % Gainers Top Lists
EPIC Name %
FA. Fireangel Safety... +210%
27th Oct 2023 7:00 am RNS Rule 2.7 Announcement
"RECOMMENDED CASH OFFER
FOR
FIREANGEL SAFETY TECHNOLOGY GROUP PLC
BY
INTELLIGENT SAFETY ELECTRONICS PTE. LTD
Summary
The Boards of Intelligent Safety Electronics Pte. Ltd ("ISE") and FireAngel Safety Technology Group plc ("FireAngel") are pleased to announce that they have reached agreement on the terms and conditions of a recommended cash offer to acquire the issued and to be issued share capital of FireAngel not already owned or controlled by ISE (the "Offer"). ISE is a company incorporated in Singapore and wholly-owned by Siterwell Electronics Co., Ltd ("Siterwell"), a leading manufacturer of intelligent security protection for life and property which utilises an advanced smart security ecosystem technology. ISE currently holds approximately 17.46 per cent. of the issued ordinary shares of FireAngel Safety Technology Group plc.
Under the terms of the Offer, the shareholders of FireAngel ("FireAngel Shareholders") will be entitled to receive:
7.40 pence per share in cash for each FireAngel Share
• The Offer of 7.40 pence per share in cash for each FireAngel Share (the "Offer Price") values the total issued and to be issued share capital of FireAngel at approximately £27.68 million.
• The Offer Price represents a premium of:
• approximately 252.38 per cent. to the Closing Price of 2.10 pence per FireAngel Share on 26 October 2023 (being the last Business Day prior to the date of this announcement (the "Announcement"));
• 46.53 per cent. to the price per FireAngel Share of 5.05 pence, being the price at which FireAngel undertook its £6.1 million (before expenses) equity fundraising in June 2023; and
• 198.20 per cent. to the volume-weighted average price per FireAngel Share of 2.48 pence for the last three months to 26 October 2023 (being the last Business Day prior to the date of this Announcement). ..."
https://www.lse.co.uk/rns/FA./rule-27-announcement-misavpjdczidvwl.html
So another takeover, at a huge premium, for a company whose s.p. has fallen massively this year on trading headwinds.
Earlier this week, SCS announced a takeover of itself at a 66% premium:-
24th Oct 2023 7:00 am RNS Recommended Cash Offer
https://www.lse.co.uk/rns/SCS/recommended-cash-offer-ncz5uktj7z3n5d4.html
PTY could be next.
Last December, PTY sold just its name for nearly a million pounds.
If the name alone was worth that much, then how much are PTY ten's of millions of revenue etc. worth?
29th Sep 2023 7:00 am RNS Interim Results
" ... In spite of the lower H1 performance, the business has improved its working capital management and reduced net debt to £0.7m as at the 30 June 2023 (compared with £2.3m net debt as at 31 December 2022).
With market conditions not expected to improve in the near term and a key commercial client in the private sector signaling a shift towards a more global supply chain, Parity is prioritising resources to exploit its strengths and opportunity within the public sector, and in particular the new RM6277 framework. As a consequence, the new business initiatives targeting the private sector, which included permanent recruitment services, were scaled back, with a resultant reduction in headcount.
Historically, Parity's core business, servicing contract recruitment within the public sector, has been one of the most resilient areas when recruitment markets turn down. The Company sees this as a core strength of the business and will be looking at how the Company can leverage this.
As we consider the scale of the business, its strength and value in public sector, we continually review the Company's businesses to determine the best medium and long-term direction for Parity for the benefit of its shareholders. ..."
https://www.lse.co.uk/rns/PTY/interim-results-cqb8gpbtvuda4ab.html
The phrase "As we reflect on Parity's position in the market" has an almost philosophical ring to it: perhaps indicating an air of resignation to PTY's days as an independent company being numbered.
PTY's H1 revenue of £17.634M., and an operating loss of just $446K., despite the current temporary market challenges, will likely be very attractive to a range of potential acquirers.
PTY's depressed s.p. means that an acquirer can pay a large premium to enable a takeover, but still get excellent value for money.
And PTY's need to raise funds means that its directors may feel obligated to accept an offer.
The situation here is similar to that of ESCS in Q1, which was taken over at a huge premium (170.1%):-
31st Mar 2023 11:55 am RNS Recommended Cash Acquisition
" ... Background to, and reasons for, the recommendation
... In addition, whilst the outlook for ECSC's strategy is favourable, it will require scale to take full advantage of the opportunities available, and to fulfil its full potential. ECSC may also need to access additional growth capital to strengthen its balance sheet. ..."
https://www.lse.co.uk/rns/ECSC/recommended-cash-acquisition-olawyw041qneodn.html
29th Sep 2023 7:00 am RNS Interim Results
"INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2023
29 September 2023
Parity Group plc ("Parity" or the "Group"), the data and technology focused professional services business, announces its half year results for the six months ended 30 June 2023 ("H1 2023").
Headlines
• In spite of challenging market conditions, revenue for the first half of 2023 was just 10% lower than the second half of 2022.
• Close to break even on an Adjusted EBITDA basis for H1 2023.
• Net debt significantly reduced.
Mark Braund, Executive Chairman of Parity Group plc, said:
"The team has completed the task of rebuilding the core recruitment business after years of underinvestment, to position Parity as a recruiter of strength in the UK's public sector, at a time when there are increasing headwinds affecting the broader recruitment market.
Whilst our business in the public sector has been resilient, we too have been affected by these headwinds in areas where we sought to grow such as the UK's commercial private sector.
The changes made to the business have enabled Parity to act quickly, tuning itself far more rapidly than before to operate at a fit-for-purpose scale and cost base.
As we reflect on Parity's position in the market, we continually review the Company's businesses to determine the best medium and long-term direction for Parity for the benefit of its shareholders." ...
Overview
After years of underinvestment and neglect, the team has completed the task of rebuilding the core recruitment business to position Parity as a recruiter of strength in the UK's public sector.
In the year prior we had removed the substantial overhead associated with the previous management team's failure to build a profitable consulting business and reinvested a small portion into re-establishing Parity's heritage as a well-recognised recruitment brand.
In line with many others within the recruitment sector, Parity has seen market conditions become more challenging with economic uncertainty resulting in clients and new business opportunities deferring hiring decisions. As a result, first half revenues were 10% lower than that achieved in the second half of 2022.
During H1 2023, Parity successfully won a place on the coveted public sector RM6277 framework, which has an estimated spend of circa £2bn over the next four years, though it is not possible at this stage to quantify what level of revenue might accrue to Parity. This framework, which went live on 25 July 2023, represents a significant opportunity for Parity to expand further into the public sector at a time when there are increasing headwinds affecting the broader recruitment market. ..."
https://www.lse.co.uk/rns/PTY/interim-results-cqb8gpbtvuda4ab.html
What's grim, JAdams5000, is your spelling ability.
A need to raise funds is just a technical uncertainty if they are readily available.
And some companies can actually place at a significant premium: I once had two of my shares do that on the same day: IRON & STAR (since renamed TRAC), on 22nd October 2021, which closed at 1 & 2 on the top risers board:-
LSE % Gainers
Top Lists
EPIC Name %
IRON Ironveld +52%
STAR Starcom +32%
29th Sep 2023 7:00 am RNS Interim Results
" ... Going concern
The interim financial statements have been prepared on a going concern basis. The Directors have reviewed the Group's cash flow forecasts for the period to 30 September 2024 and have considered possible changes in trading performance including a further reduction in contractor numbers.
The Group continues to rely upon its asset-based lending (ABL) debt facility from Leumi to manage its short-term cash requirements. This facility is in place until October 2025 and requires the Group to meet two covenant tests on a monthly basis; a positive three-month rolling EBITDA; and a positive headroom of at least £400,000.
The twelve-month cashflow forecast to 30 September 2024 indicates that the Group can continue to meet the three-month rolling EBITDA covenant but will need to raise additional funds to meet the headroom covenant from January 2024. The Directors are actively discussing a number of funding options and based on progress to date, believe that the Group will be able to secure sufficient funds to continue to meet its headroom covenant over the next twelve months.
Whilst acknowledging that there is material uncertainty regarding the Group's funding position, the Directors remain confident of securing the additional funds required and consider it appropriate to prepare the unaudited interim financial information on a going concern basis. ..."
https://www.lse.co.uk/rns/PTY/interim-results-cqb8gpbtvuda4ab.html
Going concern statement
Grim
4th Aug 2023 7:00 am RNS Trading Statement
"Parity Group plc (AIM: PTY), the data and technology-focussed recruitment and professional services company, announces a trading update for the six months ended 30 June 2023.
During H1 2023, Parity successfully won a place on the coveted public sector RM6277 framework, which has an estimated spend of circa £2bn over the next four years, though it is not possible at this stage to quantify what level of revenue might accrue to Parity. This framework, which went live on 25 July 2023, represents a significant opportunity for Parity to expand further into the public sector at a time when there are increasing headwinds affecting the broader recruitment market.
In line with many others within the recruitment sector, Parity has seen market conditions become more challenging over recent months with economic uncertainty resulting in clients and new business opportunities deferring hiring decisions. As a result, we are expecting first half revenue to be 10% lower than that achieved in the second half of 2022.
In spite of the lower H1 performance, the business has improved its working capital management and reduced net debt to £0.7m as at the 30 June 2023 (compared with £2.3m net debt as at 31 December 2022).
With market conditions not expected to improve in the near term and a key client signalling a shift towards a more global supply chain, Parity is prioritising resources to exploit its strengths and opportunity within the public sector, and in particular the new RM6277 framework. As a consequence, the new business initiatives targeting the private sector, which included permanent recruitment services, have been scaled back and with a resultant reduction in headcount.
Historically, Parity's core business, servicing contract recruitment within the public sector, has been one of the most resilient areas when recruitment markets turn down. The Company sees this as a core strength of the business and will be looking at how the Company can leverage this to maximise value for shareholders.
Contacts
Parity Group plc Tel: + 44 (0) 20 8171 1729
Mark Braund, Chairman www.parity.net
Mike Johns, Chief Financial Officer
Allenby Capital Limited (Nominated Adviser and Broker) Tel: +44 (0) 20 3328 5656
David Hart / Dan Dearden-Williams (Corporate Finance)
Tony Quirke (Sales and Corporate Broking)"
https://www.lse.co.uk/rns/PTY/trading-statement-6cx2yutlh9ux4wl.html
More good news for the sector today, with RTC more than doubling on good interim results:-
Top Risers
Share Price Change
Actual Experienc... (ACT) 1.425 +147.83%
Rtc Grp. (RTC) 37.50 +108.33%
26th Jul 2023 7:00 am RNS Interim Results
"Interim Results for the Six Months Ended 30 June 2023
RTC Group Plc (AIM: RTC.L), the engineering and technical recruitment Group, is pleased to announce its unaudited results for the six months ended 30 June 2023. ..."
https://www.lse.co.uk/rns/RTC/interim-results-77sxqz9w0vu3k2a.html
25th Jul 2023 7:00 am RNS RESULTS FOR THE SIX MONTHS ENDED 31 MAY 2023
"RESULTS FOR THE six months ENDED 31 MAY 2023
Resilient performance in H1 driven by our contract business
SThree plc ('SThree' or the 'Group'), the only global pure-play specialist staffing business focused on roles in Science, Technology, Engineering and Mathematics (STEM), today announces its financial results for the six months ended 31 May 2023. ..."
https://www.lse.co.uk/rns/STEM/results-for-the-six-months-ended-31-may-2023-c9nn4bdhjvd76hv.html
The market seems to like STEM's interim results today: the share is up 15p so far today (4.3%), to 364p.
And PTY's H1 trading update should be imminent.
The s.p. of tech stock GLAN has more than doubled this week, to a market cap. of c. £10.5M., on takeover hopes.
And it's s.p. has trebled since the start of April, after falling badly before that.
This sort of s.p. recovery could happen to PTY at any time.
5th Jul 2023 10:41 am RNS Statement regarding recent share price movement
"The Board of Glantus notes the recent share price movement in its shares.
The Company confirms that it is in discussions with Accel-KKR company, LLC ("Accel-KKR") and its investee company Basware Corporation in relation to a possible cash offer for the entire share capital of the Company.
Following this announcement, the Company is now considered to be in an "offer period" as defined in the Irish Takeover Rules, and the holding and dealing disclosure requirements listed below will apply. ..."
https://www.lse.co.uk/rns/GLAN/statement-regarding-recent-share-price-movement-oqbrxty28vjvm7t.html
PTY's £40.6M. of annual revenue is over eleven times its market cap., and its losses and debt are small in relation to this.
An acquirer may well feel that they can save costs if PTY is part of a larger organisation, and also benefit from cross-selling opportunities.
ECSC was also lossmaking, but that didn't stop if from being taken over, at a huge premium (170.1%): for c. £5.4M. of cash, compared to its latest interim revenue of £2.77M.
PTY also looks to have a turnaround underway, with good positive momentum, and I think that the H1 trading update (announced on 25th. July last year) should highlight this.
As regards a potential predator for PTY, I wouldn't be at all surprised if SThree (STEM) has already been sniffing around.
STEM's market cap. is c. £453.95M. (134,501,400 shares x 337.5p), compared to PTY's of £3.61M., i.e. c. 125.75 x higher.
That obviously considerably reduces the range of potential acquirers for STEM.
STEM is more likely to be an acquirer than an acquiree, and PTY looks like a very appropriate bolt-on acquisition for it, which it could easily afford.
STEM's revenue last year was £1,639.4Bn., i.e. (coincidentally) 3.61x its market cap.
And that's at a depressed share price that is down from 600p in 2021.
In comparison, PTY's 40.6M of revenue last year divided by 3.61 gives a value of £11.25M.
So even allowing for STEM's cash, and PTY's debt, you can see that a takeover value for PTY of c. £10M. or so looks quite reasonable, considering that tech takeovers generally demand a big premium.
Especially as PTY has considerable scarcity value as an acquisition target.
15th Jun 2023 7:00 am RNS AGM Statement
"Parity Group plc (AIM: PTY), the data and technology-focussed recruitment and professional services company, announces that at the Company's Annual General Meeting ("AGM") being held at 12 p.m. today, Mark Braund, the Company's Executive Chairman, will make the following statement:
"In its Annual Report and Accounts for the year ended 31 December 2022, the Company highlighted three areas of focus for investment in 2023 to support future growth.
In the public sector, the Company has been successful in opening up new opportunities with existing frameworks and adding new frameworks that further broaden the potential client base.
Engagements with new clients in the private sector have the potential to develop into material sources of income and have already seen the Company working on a number of contract assignments for these clients.
Having set a target to develop our permanent recruitment capability further in 2023, the uncertainty in the economy has made it more challenging to build on the achievements from the prior year. Despite these challenges, the Company continues to believe that permanent recruitment will be a future area of growth for the business.
The Company expects to continue to build momentum, and with the groundwork laid in the first half of 2023, continue to grow our pipeline of opportunities with existing and new customers. The Board remains committed to returning the business to growth." ..."
https://www.lse.co.uk/rns/PTY/agm-statement-x42eyfhm9di3ve8.html
That looks to me like a pretty positive update; in summary:-
• Public sector work (2022 revenue £22.6M.) is doing well.
• Private sector work (2022 revenue £18M.) is doing well.
• Permanent recruitment (2022 revenue 0) is not doing as well as the above two.
But the third area is a new venture that is more for the future than the present, and is more reliant on economic recovery:-
16th May 2023 7:00 am RNS Final Results
" ... We established in 2022 a small permanent recruitment team with a mix of experienced permanent recruiters and graduates from our academy training programme. The team has started to build momentum and we are focusing business development resource to further develop the pipeline and conversion to revenue in 2023. ..."
https://www.lse.co.uk/rns/PTY/final-results-ubxcqw0g2f2mwqy.html
The company looks relatively well-funded to me, and at just 3.5p, market cap. £3.61M. (103,075,633 shares in issue) looks hugely undervalued.
Until the middle of June, its all-time closing low was 4.5p, but this week it closed at 3.25p for one day, before recovering slightly.
I would think that at this level it could attract the interest of a predator, and could easily get taken over for 10p/share or more.
The recent takeover of ECSC shows the huge premium (170.1%) that can be required to acquire a quality company like this from a depressed s.p.
Lol Chesh!
your only saying that cus he never Tweeted bout Parity........!
lol
All the best (just for fun Argylerich......! :()
At least they've finally dumped the Brandon embarassment, aibeit with free money for Feb and March
If you strip out the income from the trademark then it doest look like much progress has been made.