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Today's RNS refers to "over 254,000 connections".
I assume that even a mere 'notice of results' RNS, must be accurate in this regard.
aimt
I will have to correct you on that one trakm8 had 254k as the last publicly declared
What is that number now and we should be able to trend through to year end
Demand for driving tests is off the scale .....
second hand and first car prices increasing
fact.....
that rocket is on the pad ......
Microlise has 500k connections
Trakm8 has 254k connections
I can see interest brewing on trakm8 given the recent sale of matrix telematics for £60m and revenues sub £6m
Yep, KBYK, a tie-up of some kind at this point looks very likely - unless by some miracle Trak has finally turned the corner, in which case 100p here we come anyway (as a standalone company).
Having said that, I'm not counting my chickens...there's nothing certain in this game.
Meanwhile, the SP is stuck at 17.7p to buy (but limited to 20,000 shares), so the market is obviously not aware of any rumours.
I don't think Trakm8 will see another year as Trakm8 Holdings, personally.
Based on everything we're discussed and has been highlighted already, I think an offer for the company is almost certainly imminent.
Just my opinion, but I think this saga may finally be over one way or another. Whether we like the outcome (valuation etc...) is another matter, of course.
I don't disagree, I was just looking at it from the perspective that the IPO would value Microlise at £180m. If Trak is worth £1 per share then is implies it is worth 30% of Microlise - which I find hard to believe.
I absolutely think that Trakm8 would be a great addition to Microlise - especially having taken out duplicated costs etc.
As for 50p per share - whilst I think that is the lowest they would sell for, I think that a good year would exceed this without a buy-out.
dc2 - the price paid for Trak, and the value it adds for Microlise, are two different things.
For example, it could easily afford to pay £50m for Trak if that unlocked £5m p.a. of profit, largely by taking out duplicated costs.
QTX's PE ratio is shown on this website as 49. Conservatively assuming 30, say, for Microlise/Trak, those £5m p.a. of profits translates to well over £100m of value. Not a bad payday for Microlise!
50p a share may be achievable. Can't see JFW accepting anything less; although, who knows.
Also, depends what this year look is projected to look like for Trakm8. Why sell cheaply if there's a real prospect of a good year or two, ahead.
I hope Trak become part of the IPO, would think it would be more paperwork to do it after. However, if they are already talking about IPO valuation then one assumes it will not happen. Of course, this could be changed but you would think that transparency about Raza's intentions would have factored in Trak already (and as we all good leaks, Trak share price would start to reflect it). I feel £180m (with Trak) would mean that Trak is not going to get anywhere near £1 per share.
Agreed, KBYK. Also, dc2, the following extract from the article might explain why Microlise (£180m) is valued a lot less than QTX (£230m):
"Even the racier technology stocks are being scrutinised more heavily. “We are not back in the heady days where, if it has a website, price it at a super high multiple,” said a broker, a sentiment shared by other bankers. “Investors are kicking the tyres a lot more on these online businesses and their track history of losses,” one added.
To get their floats away, bankers are having to now be a bit more conservative with how they value soon-to-launch businesses. “There’s a lot of paper, therefore people are competing for attention, and one of the ways you compete for attention is by making yourself more attractive from a pricing perspective,” a senior investment banker said.
That can leave owners disappointed and Daniel Pinto, chief executive of Stanhope Capital, thinks that this is probably why a few companies, including the commodities broker Marex, have pulled their plans to float."
Once it floats, Microlise could be a better bet than QTX given the valuation disparity.
I feel that the endgame is approaching.
Absolutely agree.
Micro could well be in (informal) negotiations with Trakm8 right now. Also, it might light a fire under anyone else who has their eye on Trakm8's tech / customers. In other words, there may be more than one offer...
The £180m price tag for Microlise certainly makes Trak’s £7.5m valuation look derisory. But it also highlights a possibly unique opportunity for Microlise to snap it up.
However, it doesn’t look like Microlise will be acquiring Trak via a reverse takeover. Instead, it’ll be a straight takeover, if anything.
But when? Perhaps after the IPO is out of the way – except that, if a takeover of Trak would be sold as earnings enhancing, logically you’d do it before or at the same time, as a “selling feature” of the IPO. And since the IPO date is not set in stone, it could be put back a few months if need be.
The exact timing will depend on what N+1 Singer advise. Either way, I feel that the endgame is approaching, and that now that N+1 are involved, things should move along more briskly…
Does the £180m valuation bode well for Trak? At £1 per share that would be £50m for Trak. I had assumed that Microlise were much bigger. Also, why is QTX worth so much more?
Explains why Microlise's accounts have been "delayed" - they'll be key to a successful float, so presentation will be everything.
Thanks very much Pianista.
Good for Raza ...enough to make JFW a little green perhaps.
Let's hope it spurs some action on the Trakm8 front.
I've not taken much interest in the Microlise accounts, but it would be good to know what they base the £180m valuation on. I assume a prospectus will follow shortly, with such information.
KBYK, this is the bit about Microlise:
"Microlise, which is behind telematics technology used by haulage companies to manage their fleets, is working with stockbroker N+1 Singer on a flotation scheduled for next month that is expected to value the business at about £180 million".
That would probably make Raza worth more than £100m...
Does anyone have access to this?
https://www.thetimes.co.uk/article/london-flotation-market-more-buoyant-than-ever-despite-deliveroo-s-flop-j8rbf255p
Mentions the Microlise IPO.
Apologies, but in this age of 'internet freeness', I can't bring myself to subscribe to newspapers.