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Wow :o)) This company really is being turned around effectively per today's trading statement.....
https://uk.advfn.com/stock-market/london/touchstar-TST/share-news/Touchstar-PLC-Trading-Update/81673350
The order book has increased to £1.7m from £254k in a year! And net cash is up to £0.85m - pretty good against a £3.7m m/cap.
Hopefully this is just the start as the fruits of Ian Martin's work begin to show through:
"Commenting Ian Martin, Chairman, said: "The Board is delighted that the Company has had a stronger than anticipated finish to 2019 and to be entering 2020 with an encouraging order book. We expect to provide a further update on the outlook for 2020 as part of the announcement of the final results in April."
WH Ireland's update a few days ago forecasts (with "prudent assumptions") breakeven for the coming year (2020), on £7.2m revenues and a tiny £200k net debt.
It concludes:
"WHI view:
Whilst delays to orders and stock availability have impacted the outturn for FY 2019E, it does mean the group will have a strong start to FY 2020E with the order book more than trebling and we would therefore regard our revised FY 2020E numbers as conservative. Touchstar is now two years into its turnaround strategy and whilst this morning's news is disappointing, we believe the outlook for FY 2020E is more positive. We would also note that with revenues of over £7m and an EV of ~£3m, this remains an exceptionally low rating for a technology stock."
Good to see the CEO buying a further £25,000 of shares:
Https://www.investegate.co.uk/touchstar-plc--tst-/rns/director-pdmr-shareholding/201912200912236351X/
Liquidity is to tight that any reasonable buying is usually rewarded with a decent rise (and the other way of course).
The miss this year is due to external factors including stock delivery, whilst the new orders will boost 2020 performance nicely. The m/cap is just £2.5m after this morning's initial markdown by the MMs.
Importantly, cash generation is good, and the group has net cash now. And the "augur well" comment re 2020 given the strong order book etc reads nicely.
I've topped up with just a few more this morning.
Stock was EXTREMELY hard to find - I couldn't even buy 100 shares online after my purchase.
I thought this week's interims were pretty encouraging. The company is obviously on the right path now, it's just a question of time as to how fast the transformation wrought to date reaps real profitability and dividends.
Here's a couple of extracts from WH Ireland's post-results update note:
"Today’s H1 results show a pleasing +16% increase in revenue to £3.6m (+19%
stripping out the discontinued On Board business) driven by Touchstar’s next-gen
products against what remains a challenging market backdrop. As a result, the loss
before tax has reduced materially y-o-y to £224k (excluding exceptionals) from £592k a year ago. Given the usual H2 weighting, the H1 outcome puts TST well on the way to achieving our FY forecasts which we leave unchanged this morning.
Key takeaways
Today’s 16% increase in revenue halts the decline seen in the last financial year (FY revenue -12%) and is down to a large part to take-up of some of TST’s next-gen products and services. This is against a challenging market with the on/off Brexit saga leading to protracted sales negotiations not just in the mobile computing segment but across many sectors. Note that the 16% increase is slightly stronger than the 14% Q1 growth reported at the time of the FY results in May. Gross margin improved from 48.2% to 51.9% reflecting less hardware and more high quality
software/full solution in the mix. Impressively, the proportion of recurring revenue has also increased and represented approximately one third of revenues during H1.
Cash dwindles in H1 but should turn positive in H2 The balance sheet showed a
net debt position of £204k at the end of June (reflecting cash payments for
redundancies as part of the restructuring) but this will improve during H2 due to the receipt of a substantial tax reclaim from HMRC (delayed from H1 due to a processing backlog) in August amounting to £456k.
On the way to achieving FY forecasts On an adjusted basis, ie stripping out the c
£300k of exceptional reoraginsation costs, losses before tax more than halved from
£592k to £224k. This is a function of the improvement in gross margin but also the
operational gearing effect of a lean cost base. The £3.6m revenue outcome represents 46% of our FY £7.9m forecast – given the historically second-half weighting nature of the business, this puts the business well on course to hit our full year numbers.
WHI view
TST is half way through its three year turnaround. The H1 numbers show a return to revenue growth and should give confidence that all key metrics are moving in the right direction. Cash should also turn positive in H2 leaving a business with revenues of approaching £8m having an EV of ~£3m, an exceptionally low rating for a
technology stock."
It was crazy not to issue an AGM statement early in the day and then include that rather encouraging trading statement hidden away in a generic "Results of AGM" RNS after the markets closed.
It's as if they didn't want it to get any attention! Perhaps part of the strategy to under promise and over deliver and keep under the radar, but that's being generous....
Nevertheless, it's encouraging news. For the record here's what was said:
"Ian Martin, Chairman of Touchstar, said: "The Company has had a positive start to the current financial year and is currently achieving strong year on year revenue growth. A number of large orders have already been received and delivered to key customers, which gives the board confidence.
The Directors still expect the Company to show a strong financial performance in 2019 in line with expectations."
give this company a titel already - WORST PERFORMER OF THE DECADE.
THe fellla who runs it keeps mentioning "it is upto the management " to step up if TST is to perform well in the RNS. Looks like we will see his departure very soon.
WHat a disaster.
Avoid this carp.
SELL. Short - do whatever.
absolutely agree. 20p 30p soon here. not long to go. Nothing happening other making loss for another year atleast. This has been a complete disaster.
It has been more than 6 months since I left my message here. I see things haven't changed one like I predicted. i have a feeling TST is going to go private listed soon like many other AIM listed companies who have run away with people's hard earned money. I will be suing the company very soon.
Very poor business and expecting further lose in trading updates. I can't sell. As soon as I get to sel, I'm going to get rid of this absolute DOG of a share. Only problem is I am overweight. frustrated holder. Ian if you are reading this - get contracts and show me the money.
Positive update on website, wish they had RNSed it. TOUCHSTAR ACHIEVE HIGHER THAN EXPECTED SALES FOR PODSTAR PROOF OF DELIVERY SYSTEM http://www.touchstar.co.uk/blog/recordsales
Amazing price he got, he was very lucky
I agree and have been surprised by the resilience we've seen in the share price. I don't expect positive news in the immediate term nor a quick turn around. Having said that even if costs increase and profits are squeezed I'm interested to see if there are any shoots of growth in the next trading update
"From the first day I spent at Touchstar I was struck by a very customer focussed business, it cared, and its customers trusted the company. What was missing then was energy, an excitement that comes from introducing modern solutions, seeing customers' positive reaction and forward momentum. I ask (again) for shareholders to be patient in 2018 - we are working hard to scale the business, this requires time and investment. In the short term, there will be additional costs ahead of profit - 2018 will be somewhat of "an act of faith" period - harder evidence will only begin to emerge later. The success of the fund raising at the start of the year gives us the financial ability to execute our full plan. Whether we succeed or not is down to us, we have to be braver and more ambitious, the upside if we get this right could be considerable. We are focussed upon making this happen." TST CEO asks investors to be patient in 2018. Short term will be additional costs. So no value revenue creation here. 30s soon. Maybe mid next year things may improve
Thomas William George Charlton has increased holdings to above 9%. The 18k on Thursday was his.
Share price drop is quite depressing.
Another 30k buy today.
Ian bought another 32k.
pretty dead here after shambolic rns
Another 32k buy today after that 12k buy yesterday. Anyone claiming them?
I am not deramping Sam7. Just annoyed and very bitterly disappointed in the last 6months progress within the company. I expected lot more after the recent appointment of the new management. This has got to be my worst share at this time as I had high expectation for 2018. It is saddening to hear straight from the BOD that they are not expecting anything this year at all. Furthermore, I am worried about addtional cash call to the market in the near future. I am just a frustrated shareholder. I am bit perplexed that nobody shares my concern.
get a grip man/woman, you are hysterical. dont go hitting any small children in your fury. if you are not contemplating a sell then forchristsakes stop deramping like a deranged lunatic. from what i can see they are still very much profitable and cash generative. the write off is just that. what on earth is all the fuss about....exciting times ahead. pretty basic really, software services out trump manufacturing in the uk simple truth leave rugged handhelds to the chinese to manufacture, do what we do best.
Knowing current market conditions I foresee continuous drop until something substantially comes from the company which I highly doubt will be released in the coming months. By going by todays financial accounts, It will take atleast few years for Touchstar to get to start creating revenues. The BOD has summarised it perfectly written waffle with cherry on top. "From the first day I spent at Touchstar I was struck by a very customer focussed business, it cared, and its customers trusted the company. What was missing then was energy, an excitement that comes from introducing modern solutions, seeing customers' positive reaction and forward momentum. I ask (again) for shareholders to be patient in 2018 - we are working hard to scale the business, this requires time and investment. In the short term, there will be additional costs ahead of profit - 2018 will be somewhat of "an act of faith" period - harder evidence will only begin to emerge later. The success of the fund raising at the start of the year gives us the financial ability to execute our full plan. Whether we succeed or not is down to us, we have to be braver and more ambitious, the upside if we get this right could be considerable. We are focussed upon making this happen." Touchstar management is making it crystal clear that 2018 is write-off and additional costs are to be expected. This smells more placings and fund raising and is asking investors to be patient (AGAIN)!!! The company recognises they have failed shareholders here over and over again and no light in sight by the looks of it. And finally to top it off, 2018 is period of faith. Are you serious??!!!! So shareholders are asked to pray for their support and hope their investment doesn't erode away this year. Brilliant....NOT. I am contemplating to sell the rest of my holdings. I am just absolutely shocked of todays news. Ni
TST made profits last year, much of the right offs have no impact on real profits so they are still making money. Not so shabby for a company intent on changing the way it operates. This next year may be tough and profits may fall, but I will wait and see for those before jumping ship , holding or adding. New contracts along the way would make that decision much easier.
sam7, have you seen the results. Touchstar are making and made huge losses compared to last year. I am not sure the sums vouch for the business they have brought in which is hardly anything. You talk about being on AIM - yes there are high risks involved in this market but there are many more profit making companies on AIM. My worry and for all future investors who are considering - todays statement by the company " we have arrived to a point of no turning back....a scary decision" is frankly damaging to say the least. It adds no reassurance but more a uneducated and very amateurish business decision. I suggest you re read todays news and statement along with the financials. The more I read it - the more shocking it gets. I would not be surprised if all hell breaks loose here in few months and the company release a statement "by the way the risk we took, well, it didn't pay off, see you later and thanks for all your hard earned money". I do wonder what and how they have used recent placing money. Absolutely disgusted!!
Anyone claiming the 12k buy? Rivaldo/Norbert?