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was..sold a long time ago, but interested in their cash conversion and whether improving
If they were going to do that they wouldn't bother to tell the market. Anyway if they did it that way they would end up pushing up the shareprice themselves.
will surely apply? bid cannot be lower than highest sp in last 12mths which was over 50p and there is a large independent shareholder. Counter bid?
In terms of a company paying a dividend then fcf is important. For valuing a company that the CEO has said he may make an offer to buy the whole issued share capital then revenue and particularly profits and no debt are more important. No-one invests in or buys AIM shares for the dividends. They are a feature of the FTSE 100/250.
Directors don't need to buy all the issue shares at one go. They can drip buys and maintain the price around 20p. Haven't you noticed how II buy shares?
fcf matters more than profit imv...much much more ..gla
Yes AST is a case in point, well said. Your posts regarding the valuation are sensible and lets hope the market will react like we expect :)
jollyspeculator- you invested here?
but surely any argument about cash or receivables is just going to hand the company over for nothing. Profit is around £2M/£3M and that give a company valuation of a lot higher than just over £5M (at .20p). No debt. No losses. An expanding business. I would assume that any surplus cash is being ploughed back into expanding the business. SYQ have not needed to raise any cash in the last 2 years so they are "getting by". Yes the figures could be a lot higher if they were paid all they are owed but the value still lies in what they are paid and the profits they make.
possible bid ...ho hum
The results from the management accounts for the year ended 31 December 2015 are before any provision against the amounts owed by the Company's principal trading partners. At 31 December 2015 the Company had outstanding trade receivables of £11.7 million (half year ended 30 June 2015: £8.4 million) and collections from the Company's primary customer had been less than previously anticipated by the Board. At 29 February 2016 trade debtors totalled £14.2 million. As part of the audit of the Company for the year to 31 December 2015, the Directors will be discussing with the Company's Statutory Auditor whether there should be a provision for impairment against the trade receivables, which could negatively affect the profit before tax for the year. In the Company's Annual Report for the year to 31 December 2014, the Statutory Auditor raised concerns as an 'emphasis of matter' in respect of the Company's credit exposure to SyQic's two largest customers. The Directors were of the opinion, at the time, that the debts were fully recoverable and thus no provision for impairment was required.
reckon dibs is on to something..cash conversion here is horrid imv
Anyway offers usually come in at about 50% higher than the current shareprice so that would make an offer about 30p - that is unless the depressing PI's want to take the SP down even lower so they can get an even lower offer.
Art, remember not just independent directors, there is a signicant holder utilico who wont less this go cheap either..
Personally I think this has been played very fairly against the backdrop of the receivables worry and the low market cap. The CEO could have rushed in with a low-ball offer of 25p or 30p. Instead he has expressed an interest in taking this back to private ownership and the market has the chance to revalue the shareprice so an offer will reflect the true value of SYQ. While receivables are a worry, SYQ ARE declaring received revenue and profits, They have no debt. Business is expanding on several fronts and profits are going to be substantially higher than market expectations.
If CEO wants to buy the company back, he should buy shares from the open market now?
spread the word.............. Management valued the company at 62p - £14.4M (even 53p now with the extra shares) on flotation just 2 years ago. Revenue/profits have increased over 100% since then. The same management are here now and the CEO wants to buy the company back. Maybe he's just a bit sick of the persistently low AIM market cap..
There has been? Buys heavy outweigh sells.
People here loaded up then? Why no movement?
The Independent Directors won't sell the company for less than a fair offer.
The revenue they are declaring has obviously been received and they are in profit. They have not raised any cash for the last 2 years so they are self-sustaining. The valuation I am giving is for the declared revenue/turnover and not for what it might be, Yes revenue and profit could be much higher but then so would the valuation.
Debt is hocus pocus m8. Am sure it will be recovered seems an opportune time to takeover before recovery. 50p imo.
yeh but they are owed over $11mill from their one big customer and have mentioned that tthey MAY make a proviion for that debt in the next statutory accounts... here is the problem, that customer now has so much leverage and the debt equtes to the whole of thears revenue.. do you really beleive it will be satisfied...be careful
Creeping up. Still under the radar. At least this isn't a GBO if the CEO is looking to buy it back from the shareholders.
How much is SYQ worth? SYQ is trading in profit so an easy way to value is in multiples of the net profit (x P/E) Last full year profit was £1.91M and a good value is 10 x net profit which gives just over 70p per share. It looks like this year's net profit could be nearer £3M which gives a value of over £1 per share - £1.15p to be precise. At 22p the value is 2 x P/E which is an AIM valuation but no good for a takeover scenario.