The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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I believe so but maybe should double check that, or they can sell sufficient shares to keep below 30% which I've seen before in that situation. It's the % held that matters rather than how they get there.
And what if the threshold is reached due to share buybacks increasing their % of voting rights rather than further market purchases? Still required to make an offer?
StraightAIM - yes, 30% trips the wire for the takeover code to apply and they then have 28 days to make a firm offer or withdraw any intent (for 6 months). I'm not aware of any exceptions that would apply here. But that could be some time away unless they speed up their rate of acquiring shares (ha – see today’s RNS just published as I was typing!).
I'm not personally convinced they will go the whole way, but a key point from the RNS yesterday is that they have now crossed over 25% (for the first time I think?) so they can now block any special resolutions which require 75% to pass that they may not agree with, including someone else trying to complete a full takeover.
ScottAJ - KAPE situation was different so not a comparable. IIRC the major holder had even more than that previously but it dated back to pre-listing?, different to someone accumulating shares to perhaps cross over 30% for the first time. But yes, 30% only gives the obligation to make an offer (or rescind) with no certainty it will be accepted, over 50% gives Board control but not the right for a full takeover (75%/90% required depending).
I’ve generalised a few points to keep it brief and please anyone correct if I have any of that wrong. Some very dry reading in the following link if you want to:
https://code.thetakeoverpanel.org.uk/tp)
Or I find this one gives a good although still quite lengthy summary, also with a summary about various key shareholding levels and not just for takeovers (with credit to Baker McKenzie):
https://resourcehub.bakermckenzie.com/en/resources/global-public-ma-guide/europe-middle-east-and-africa/united-kingdom/topics/before-a-public-takeover-bid
I don't think so. I was a holder when KAPE was taken over and delisted. The major holder launched their takeover offer when they had 54.8%. You need more than a simple majority to take over or delist a company. I don't remember them making an offer before that either.
At 30% they're required to make an offer?
Also AIM and the elephant in the room, what will they do with all those shares in treasury!
Kestrel moving ever close to the magic 30%, with interests now at 25.09%.
I give it no more than 12 months
It's still not entirely clear from the outside how their business model works (for the marketing side). I think that probably puts off a lot of would be investors.
I can only think the market doesn’t believe the business model, and/or its sustainability. It may take several years of solid growth to convince the doubters.
The share price action in CNIC/TIG is baffling. Steady growth, top tier clients, solid management. But sp continues to languish at the bottom of the 115-130 range.
Eventually this will be trading at much higher levels, but trying to predict the timeframe is tough. Thankfully patience is all that is needed.
Nice and cheeky RNS! A bit annoying as I was going to add a few on Friday’s drop but didn’t.
Today's RNS with a rather anodyne title might mean some miss the excellent news below, confirming a record Q4 performance and once again stating that results will be "at least" in line with expectations:
"Prior to this, on Monday, 29 January 2024, we will release a comprehensive Trading Update. This update will highlight a record performance in Q4 2023 and FY 2023, demonstrating that the Group continues to trade at least in line with current market expectations."
Https://uk.advfn.com/stock-market/london/team-internet-TIG/share-news/Team-Internet-Group-PLC-Announcement-of-Key-Financial-Reporting-Dates/92975485
Down ~10% for the week. Happy new year...
At least the buybacks are coming at an increasingly attractive price!
30th Jan last year.
Haven't seen anything but imagine it'll probably be mid Feb
Has any date been given for next Trading Update?
Mark Slater notes that he's been buying into TIG as a new position in his Fund in this new interview - listen from around 6 minutes in:
Https://www.youtube.com/watch?v=ZXVDGBL1nm8&ab_channel=interactiveinvestor
Lost complete faith in Mark Watson Williams after losing significant sums in Anexo and Inland Homes.
Although, after 3+ years here, I had scaled out most of my holding and sold the rest of my shares here yesterday.
There's patience, and there's a slow death.
The question still stands, what are they going to do with, as of today “Company now holds 19,559,958 shares in treasury”?
Are they going to be cancelled, used for free smarties for the board. Who knows, but I would like to. The buy back at the moment really means nothing until this is addressed imo.
Mark Watson-Williams on Master Investor is still very keen per his post last night:
"The Q3 report from Team Internet Group (LON:TIG) obviously disappointed some investors, with the shares easing back to 116p from 127p last Thursday.
I spoke at some length with Billy Green, the group’s CFO, on Monday morning and remained totally assured that the group’s shares are still undervalued.
It has been quite a transformation for the group this year as it moves convincingly away from the strong M&A programme of the last few years, to now reflect its concentration upon utilising the various strengths of those previous acquisitions to build up the massive cross-selling opportunities, especially that this globally operating group now has within its organisation.
The ‘share buyback’ programme still has another £13m to go, which I compute should take it into mid-February 2024 to complete.
The average buyback price this year has been 124p, the shares closed at 118p last night.
I still see them going a great deal higher yet."
Yes I lost contact too which was annoying. Disappointing to see Billy operating from the spare room, but at least he's got his Christmas wrapping paper!!
New Edison note raises this year's EPS by 1.4% to 21.4c EPS, rising to 24.7c EPS next year.
Net debt is now $80.9m at the end of this year reflecting the buybacks etc, falling to just $35.1m next year.
They summarise:
"Team Internet Group Q323 results
Diversity delivering resilience
Team Internet’s results for the nine months to 30 September 2023 (9M23) showed good, continued progress, with revenue, adjusted EBITDA and adjusted EPS growing 16%, 11% and 28% y-o-y. Online Presence continued its return to form, with 20% growth over the period. While the weak advertising market and a strong comparative period was reflected in a moderation in growth in Online Marketing (15%), this still implies outperformance of the overall market. Management expects full year
results to be at least in line with consensus. We make no material changes to our P&L estimates and continue to see scope for upside. We have increased our year end net debt forecast (previously below consensus) to reflect higher capital investment in content and software development, acquisition costs and working capital than previously modelled. In our view, the company’s value P/E rating of 7.1x FY23 dropping to 6.1x in FY24 is in stark contrast the company’s growth track record and prospects."
"Valuation: Resilience, growth prospects not priced in Given the weak advertising market and strong comparative period, these are creditable results. We make no material changes to our P&L estimates. Entering the peak Q4 period, we see good scope for upside this year and our FY24 forecast, which calls for 9% revenue growth, look prudent. Our year end net debt estimate increases from US$59m (which was below consensus) to US$80.9m, reflecting the accelerated share buyback plus higher capex, acquisition costs and working capital outflows than modelled. We see this as a one-off adjustment and expect the business model to continue to generate healthy cash flows. In our view, the company’s value P/E rating of 7.1x FY23 dropping t
Got cut off during the Meet the company meeting, however I did add today and will continue too. Just have to wait for the meeting to be published. Wonder if/when MS is coming online?
The UK markets no longer accurately reflect fair value which is why more and more of our better companies are, and will continue to be snapped up by overseas predators especially as sterling is so weak. Once again our politicians have been too slow to react to the capital outflows and to introduce fiscal policy and regulatory enhancements to make UK equities more attractive for investors. Share buybacks are an obvious way to deploy excess capital to enhance EPS, and whilst it is difficult to be critical of this strategy due to undervaluation of equity, I would much prefer to see surplus cash being used for both organic and inorganic growth. Our management appear very competent which is a comfort and let’s hope we see their hard work and talent being rewarded in the fullness of time. I will be adding at these levels.