George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Two new project case studies up on TST's web site - here's the first:
Https://www.touchstar.co.uk/blog/touchstar-pb-foods-case-study
There's also another new case study up from 4th March:
Https://www.touchstar.co.uk/blog/wcf
With warehousing, logistics and data capture such hot sectors TST are hopefuly at the epicentre of all this.
Bleedin' asterisks!
The link is to Share eprophets (without the space!), so should be easy to find.
Just tipped as a Buy on HotStockRockets via ************* (unfortunately the full tip is subscription-only):
Https ://www.*************.com/views/60537/touchstar-positive-2021-and-performance-set-to-accelerate-buy
"Touchstar – positive 2021 and performance set to accelerate, Buy
By HotStockRockets | Friday 4 February 2022
Mobile data computing services provider to industry Touchstar (TST) has announced “the unaudited full year outcome for FY21 is above market expectations in terms of profitability and cash generation” and that it believes “the rate of growth in revenue and EBITDA will accelerate in 2022 driving further substantial improvement in financial performance”. Good news."
From today's Times - should be good news for TST:
Https://www.thetimes.co.uk/article/online-boom-brings-record-investment-in-warehouses-8g8rs6r7n
"Online boom brings record investment in warehouses
Companies leased more warehouse space in 2021 than ever before, prompting record levels of investment in the logistics sector.
Thanks to the boom in online shopping during the pandemic, 70.1 million sq ft of industrial warehouse space, equivalent to more than 1,000 football pitches, was leased or sold last year, according to Cushman & Wakefield, the property agent. That was up nearly a third on the previous high of 53 million sq ft set in 2020 and more than double the take-up in a “normal” year before the pandemic.
“As ecommerce-led demand continues to outstrip supply, we are seeing rental levels and land values reach new highs across the UK, especially in London,” Richard Evans, Cushman & Wakefield’s head of UK logistics, said. Online retail was the main driver of letting as ecommerce businesses accounted for about a third of the total take-up last year. Multi-channel retailers seeking to grow their online presence and delivery groups were also “hugely acquisitive”, the company said.
About £17 billion of deals were transacted in 2021, another record. Investors have been buying warehouses and building new ones to try to meet demand, while they also have been attracted by the stability of warehouse rents and values when other parts of the property market have suffered.
Developers built 13.7 million sq ft of space “speculatively” in 2021, meaning that they had no tenants lined up before they started construction — almost double the 7.3 million sq ft of speculative development the year before."
Intriguing partnership news yesterday on top of the excellent trading update:
Https://www.touchstar.co.uk/blog/hmkbilcon
"HMK Bilcon & TouchStar Technologies announce strategic cooperation
24 January 2022
HMK Bilcon, based in Aalborg, Denmark is as solutions provider to the downstream fuel logistics market in Europe manufacturing fuel tankers and SafeCon® fuel delivery control systems.
HMK Bilcon’s SafeCon® III is the next generation of IT control systems for fuel tankers with a modern touch screen with all the latest features. New and smarter features are constantly being developed for SafeCon® III and 24-hour support is now available. Besides managing valves, pump and other components, SafeCon® III also controls the meter system to provide easier and fast loading and delivery with an improved ability to see compartment status along with many other new features.
TouchStar Technologies, based in Manchester, England have been providing ePOD systems to the Fuel logistics Industry for over 35 years. Today this accounts for approximately 70% of fuel delivery trucks on the road in the UK & Ireland. The flagship mobile application is FuelStar, which can be integrated with back office, finance and planning systems. FuelStar is often deployed on the in-house manufactured, ATEX-rated Android tablet, the TS3200.
A recent meeting between Peter Jensby, CEO of HMK Bilcon and Mark Hardy, CEO of TouchStar plc. has led to both organisations committing to a strategic partnership.
HMK Bilcon has a large market share in Scandinavia and TouchStar has similar in the UK Ireland and beyond.
Both organisations come from two different disciplines, but high levels of integration between TouchStar’s OBTC devices and ePOD Application FuelStar, with HMK Bilcon’s SafeCon® III control system mean both Peter and Mark have identified a great opportunity for collaboration within a number of geographical target markets."
Good update, it's been a long haul!
WH Ireland's new note today leaves forecasts for 2022 unchanged at this stage, being £1.3m EBITDA, £0.5m PAT and 5.5p EPS.
They don't state where they expect the current £2.5m cash pile to be at the end of this year, other than to note that this represents 35% of the total m/cap, and that the EV/EBITDA ratio is just 3.5....
Here's the conclusion:
"WHI view:
This morning’s update illustrates the robust internal actions taken over the last few years, including the focus on increasing recurring software revenue, combined with an improving wider market outlook in core sectors and a strong tender pipeline. Although there will be challenges during the current financial year, we believe that the momentum the business is now demonstrating is very encouraging and is importantly supported by the group’s highly robust balance sheet. The FY 2022E EV/EBITDA of 3.5x and net cash representing c.35% of the present market capitalisation illustrate the potential for multiple expansion"
Lovely stuff :o))
- profits and cash above expectations
- PAT at 200% above 2020 should be around £260k
- £2.5m cash at the year end against a £6.6m m/cap, plus much improved order books
- recurring revenues approaching 40%
Most importantly:
" the prospects for the Group appear more positive and more certain than for a long time;
the rate of growth in revenue and EBITDA will accelerate in 2022 driving further substantial improvement in financial performance"
Congrats to Ian and Mark in particular. It appears the stars have finally aligned for TST....
Https://uk.advfn.com/stock-market/london/touchstar-TST/share-news/Touchstar-PLC-Full-Year-Trading-Update/87079017
"To create retail interest it is essential TST determine a future dividend policy, especially now they look like they are in a position to generate cash surpluses in the coming years." I posted this nearly a year ago and it still applies! Happy new year TST.
Chelverton Growth Trust has a £637,000 stake in TST (21% of its portfolio). It's just released its results to 31st August, and had this to say about TST:
Https://www.investegate.co.uk/chelverton-grwth-tst--cgw-/rns/final-results/202111161351105675S/
"Touchstar continued to develop its focused and streamlined business. It reported an improving position in its recent interim results and has built up strength in its balance sheet. It is expected that the results for 2021 will show further progress and that 2022 will really start to reflect the strength and quality of the revitalised business."
after three buys this morning totalling almost £20,000. It seems someone's quite keen (assuming from the same buyer).
Good to see the spread reduced to a mere 5p too.
Good news:
Https://www.touchstar.co.uk/blog/qefacilities
"22 October 2021
Manchester, UK. 25th October 2021: QE Facilities select EPOD system from Manchester-based Touchstar Technologies
QE Facilities is a well-established wholly owned subsidiary company of Gateshead Health NHS Foundation Trust, based in the North of England. The company is a separate legal body set up to provide a range of non-clinical Estates and Facilities services.
Due to its ongoing success, QE Facilities has also expanded into a number of exciting projects that are delivering significant savings and efficiencies. In this very difficult economic environment the expanding business is providing a unique alternative to traditional full third party outsourcing....
......Initial dialogue took place with Touchstar business analysts to develop a detailed scoping document that identified QE’s specific requirements. It was apparent that a high level of integration with existing NHS systems would be required, a stipulation that would have been impossible with a standard ‘off the shelf’ product. Fortunately, one important facet of the PODStar offering is the Evo-link integration product. Designed as a dynamic interface tool, EvoLink can link the PODStar software to almost any other system, enabling the automatic transfer of data from a separate system into the EPOD software. Supporting the population of multiple systems, errors are reduced by the removal of manual re-keying of data. Utilising the power of Evo-link, Touchstar personnel established a secure flow of data between several legacy NHS systems....
.......Following a robust trial the PODStar system is now fully ‘live’ and delivering the key benefits. Overall we're very pleased with the system and, as we continue to expand, we look forward to continuing our relationship with TouchStar and contemplating further bespoke enhancements”
Haven't looked at this in a while. Was lucky to buy in at a great time.
Just look at that order book: "Order book as of the 10 September 2021, stood at £836,000."
30th June was £621k.
Year before was £519k.
Plus the margin on that is 56.4% and rising.
Yes, happy to be here. And appreciate all your input and info Rivaldo, as ever!
Robert & Virginia Millington are new major shareholders, with 3.1% or 8.48m shares:
Https://www.investegate.co.uk/touchstar-plc--tst-/rns/holding-s--in-company/202110201225586948P/
They appear to be these guys - a rather impressive background:
Https://constancepam.com/index.php/who-we-are/
"ROBERT MILLINGTON
FOUNDING PORTFOLIO MANAGER
Robert has over 30 years experience in financial analysis and portfolio management including with BZW, Credit Suisse and Government of Singapore Investment Management. Robert has a BA in Philosophy, Politics & Economics from Lincoln College, Oxford"
"VIRGINIA MILLINGTON
CO-FOUNDER
Virginia has extensive experience in the Retail industry in Europe and Asia and played a leading role in the expansion plans of a major UK multiple in Japan"
HotStockRockets says Buy this afternoon (subscriber-only):
Https://www.*************.com/views/58026/touchstar-interims-and-expects-full-year-ahead-of-expectations-buy
"Touchstar – interims and expects full-year ahead of expectations: BUY
By HotStockRockets | Friday 17 September 2021
Mobile data computing and managed services company Touchstar (TST) has announced results for the first half of calendar 2021 and that it “has traded well in recent months, as a result we now expect full profits to be ahead of our previous expectations”. Sounds good......"
Finished listening to TST's H1 results presentation via WH Ireland.
Glad to hear a certain underlying tone of confidence coming through. A few quotes from the CEO:
"comfortable with" WH Ireland's newly increased forecasts
"there's a confidence in the business I've not seen"
"stronger team than we've had in a number of years"
Also worth noting that Ian seemed happier with the possibility of making acquisitions than in the past imo.
WH Ireland have today raised their fair value to 115p (from 100p). They now see
3.5p EPS rising to 5.5p EPS next year, and £1m EBITDA rising to £1.3m next year. They summarise:
"Interims illustrate continuing momentum – FY 2021E forecasts raised
Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning, the group has released interim results to 30 June 2021, which illustrate positive momentum across the business. In the six-month period, revenue was 8.9% lower as expected but the meaningful 640bps increase in the gross margin reflected the growth in recurring software income, while a tight control on costs remained.
Looking ahead, the order book is reported to presently stand at £836k and despite the well-flagged wider supply chain challenges, the Board now expects results for the year to 31 December 2021 to be ahead of current market expectations. As such, we now look for FY 2021E PAT of £250k (previously £100k), while at this stage maintaining our FY 2022E forecasts of £500k for the time being.
Although the shares have performed well, an FY 2021E EV/EBITDA of 5.2x falling to just 4.1x illustrates the potential for multiple expansion and further outperformance. Reflecting the uplift to forecasts, we increase our fair value estimate for the shares to 115p (from 100p), which would equate to a current year EV/EBITDA multiple of c.8x."
Nicely positive H1 results today. In particular, the order book has been rising strongly and is up 36% since June - and TST now say the full year outcome will be ahead of expectations.
Recurring income - which the City loves - is also rising nicely and is now 39%.
The company is very well funded now, with £1.3m net cash against the £7m m/cap.
With the economy now opening up, and development of the Podstar and other products now largely completed, you can see the potential for a serious scaling up of the business, as evidenced by the large government contract won for this year and "Several large users presently running successful pilots".
The expectations is for 2022 to be transformational. If this happens then the current £7m m/cap might just be very, very good value.
Odd.... Something must be going on though. The bid is up.
Two trades of 60,571 shares each at 89p - 9p above the 80p offer price - just reported?!
Looks really good - wouldn't need many sales to makes a material impact on sales:
https://www.touchstar.co.uk/blog/touchstar-introduce-facestation-f2
"TouchStar ATC Introduce Suprema’s Contactless FaceStation F2 to their Time and Attendance Portfolio
12 July 2021
Manchester 12th July 2021. TouchStar ATC provide best fit time and attendance solutions including hardware, data management and mobile app’s for both local and remote workforce management. Following a period of development, they are pleased to announce that Suprema’s FaceStation F2-DB is now fully enabled on their FastLane back-end solution, enabling fast integration of the device into core business systems such as HR and Payroll.
The launch of Suprema’s FaceStation will mean that TouchStar will be able to offer their end users, partners, and system integrators a new best-in-class and contactless multimodal time and attendance hardware terminal. Offering credential options of face, card, and mobile access, the FaceStation is one of the most flexible devices available on the market. Further development by TouchStar will shortly see the fingerprint enabled FaceStation F2-ODB added to their hardware portfolio.
The integration of the FaceStation F2-DB into the TouchStar’s time and attendance hardware portfolio follows a successful period of development and coincides with the company’s recent brand refresh. Lynden Jones, Managing Director at TouchStar ATC comments, “We are delighted to announce the addition of the FaceStation F2 to our product portfolio with Suprema already well known for delivering new and innovative identification and authentication solutions to the market. The launch of this fantastic device has also provided us with an excellent platform to introduce our new refreshed brand, a fresh light blue colour scheme which reflects the new innovative developments that we are now able to promote. We believe that the FaceStation is real game changer, it delivers exceptional authentication accuracy and anti-spoofing performance by the fusion of visual and infrared face recognition technology. With the demand for contactless devices on the rise, it provides the mission critical identity management and health and safety capabilities that businesses need today to get employees back into the workplace.”
Designed to be simple and intuitive, the FaceStation drives operational efficiencies, automating key workforce management processes and reducing costs. Not only does it provide a secure and compliant working environment, but it also provides real time management visibility. With its huge memory capacity, the FaceStation can easily handle large numbers of users, accommodating up to 100,000 users*, 50,000 image logs and 5,000,000 text logs.
The FaceStation is suitable for use across a number of sectors and environments, from Healthcare and Education, through to Retail, Warehousing and Commercial.
etc"
Yes, I spotted that. Odd... Might be leaky, but one would think there would be more chatter if so.
Quite a few small buys in succession coming in this lunchtime after 12.50pm, including a 5.5k buy at 90p....I can't see a specific catalyst, but good to see.
well i call that a good day .
WH Ireland conclude this morning that they see 100p as fair value here for the moment, having left their forecasts unchanged for the moment:
"WHI view:
This morning’s update from Touchstar illustrates a positive period for the business and with c.70% of sales having previously been deemed as essential, it is encouraging to note that an improvement in those sectors impacted by COVID-19 is beginning to be seen, alongside the overall increase in the order book and growth in recurring revenue.
As such, an FY 2021E EV/EBITDA multiple of 5.6x falling to just 3.6x is undemanding in our view. We see fair value for the shares at 100p, which would equate to a current year EV/EBITDA multiple of c.8x."