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Lets hope we can hold or increase the rise today on this good news
Reads very well. I think this should underline the cashflow generation going forwards if they can keep this orderbook growing.
Excellent news - trading has exceeded expectations this year, and the order book is growing nicely again.
Plus recurring revenues are rising - and of course we know TST have a very healthy £1.8m cash pile too:
"Trading Update
The encouraging trends observed across our business have continued and Touchstar's performance this year to date has exceeded our expectation. This has been achieved by favourable revenue development, an increase in margins and continued tight management of expenses.
The order book is building back, it has increased by over 50% since the year end and currently stands at over GBP750,000. Reassuringly it is beginning to include orders from sectors most impact by the pandemic.
A key focus for management is upon achieving an increasing percentage of sales from long term recurring revenue contracts. In the year to date these revenues are up 12% compared to the equivalent period last year.
We expect a strong first half performance to, at a minimum, underpin the full year results. We will more formally update expectations for both 2021 and future years when we release the Group's interim results which we expect to be announced by the middle of September."
Mozza, it should come good but i think there will be a bit of pain in the short term. Keen to see them come out and explain how they will replenish the order book.
I think you're right. To an extent there is a bigger question about how fast they can replace that order book - if they can for the time being keep new orders coming in at the same rate older orders are fulfilled that would be an acceptable compromise for the time being.
The next set of results will be the key, but they are in the right place at the right time and the low free float should make for a big rise if they can follow through with the cash generation.
Problem is the significant drop in the order book and it is now that we will start to see that drop reflected on the cash flow. They need some time to repair that order book but things should look more positive in 2022.
"at the year end the order book stood at £475,000 (FY2019: £1,200,000)"
Big thread here on why this seems to be a pretty cheap stock:
https://twitter.com/ProAIMTrader/status/1404383450170265602?s=19
I also note the 25k of shares take today/yesterday. It isn't a massive nominal figure, but it's around 1.5% of the freefloat here.
Free cash flow is the key here and if they can keep growing that, then this starts looking very cheap.
A new article from yesterday about how TST's PODStar Electronic Proof of Delivery (EPOD) system can help the food and drink sector:
Https://www.touchstar.co.uk/blog/foodsectorchallenges
Also a new case study on how TST have helped "the UK’s leading independent corrugated packing producer":
Https://www.touchstar.co.uk/blog/cepac-access-control-case-study
Most non chain supermarkets exceed that and make a clean profit in the process....should probably be taken private and shareholders released from their endless waiting for a jam laden share of a cake which never gets baked
Https://www.touchstar.co.uk/blog/fragrance-oils-selects-touchstar
"21 May 2021
UK-based manufacturer of rugged mobile computers, TouchStar Technologies, is pleased to announce that Fragrance Oils, global experts in the manufacture of perfumery essences, has selected their TS8200 handheld mobile computer as part of a real time upgrade to their picking and put away operations.
Fragrance Oils (International) Limited (FOIL) are specialists in the creation of perfumery essences and natural herbal extracts for use in the fine fragrance, personal care, air care and household cleaning sectors. Headquartered in Manchester and with a global presence that spans Europe, Russia, Asia Pacific, America’s plus the Middle East and Africa, Fragrance Oils has become one of the industry’s most dynamic and influential companies.
To provide additional support for their worldwide network, Fragrance Oils were looking to upgrade their IT infrastructure within their Manchester based Headquarters. With sales spanning over 70 countries, Fragrance Oils have become well known for their inherent values of creativity and technical excellence, but most importantly customer service. With a large global network to support, they knew they had to look at ways to remove their reliance on paper-based systems to remove the pressure on their growing operations. Going real time, Fragrance Oils are not only looking to streamline their operations, but to enable more efficient processes and reduce errors whilst enabling real time visibility of their operations.
TouchStar’s rugged TS8200 devices are set to roll out as part of a wider IT investment which will also see the go live of a new warehouse management system.
etc"
First support at 60p. If that does not hold, next one at 40p.
Lovely - and unusually small - 3p spread at 75p-78p after yesterday afternoon's move up.
A few random notes from TST's recent investor presentation FYI:
- recurring revenues were up 15% last year to £2.1m, and should be up another 15% this year
- three new customers for POD systems already this year
- Microsoft Mobile has been discontinued, so the resulting upgrade cycle will benefit TST
- TST will generate cash this year
- from here, every additional £1 of revenues should largely drop through to the bottom line
- £0.5m of last year's £0.9m drop in admin.costs should continue this year
- TST are in a trial with the NHS to distribute pharmaceuticals directly to homes. This could be a large contract assuming the trial is successful
- Access Control are trialling facial recognition in a Government department. This could also be significant in monetary terms
Any corrections/mistakes pointed out welcomed.
Thanks Rivaldo. Exactly as I expected, 2021 similar to 2020 but things to improve in 2022. Not much to see here until 2022.
WH Ireland this morning say fair value is now 100p and summarise as follows:
"Full year results robust; positive start to the current financial year
Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning the group has released full year results to 31 December 2020, in line with the robust trading update reported mid-January, and with net cash slightly better than expected.
Encouragingly, the Q1 2021 performance is also reported to have been better than the Board had previously expected. On the back of this morning’s results, we have reinstated two-year estimates; looking for a slight improvement in revenue and profitability in FY 2021E, with a step up in FY 2022E as more normal service resumes across the wider market. Whilst the shares have performed well in recent months, an FY 2021E EV/EBITDA multiple of 6.4x falling to just 4.1x illustrates the potential for further outperformance. We see fair value for the shares at 100p, which would equate to a current year EV/EBITDA multiple of c.8x."
It has dropped, but that's at the end of year and he also says the first Q has started better than expected. The headline figure for me is that costs have been cut by nearly 1 million. Imagine if they'd said regular income had gone up 1 million, we'd be over the moon.
Most importantly - "Touchstar has made a better-than-expected start to 2021".
The cash pile is up to £1.78m (increased from £1.46m at the interims) against the £7.2m m/cap.
Historic results are already known - though it's very encouraging to see the overall profit before tax (i.e a small loss in the last H2) given the pandemic. The order book at 31/12 is only a little down from the interims.
Above all, "We are upbeat for 2021", and "70% of our revenue is generated from sectors deemed as "essential"".
With almost £1m of costs taken out of the business last year, 2021 could be very interesting. Plus:
"Touchstar is well positioned as business moves to digitise and embrace an e -commerce model."
Looks like 2021 will be challenging, with order book not looking that great but hopefully, they can address that.
Need to wait 2022 for recovery.
Reckon initial spike up in share price but probably close red.
Fat fingers this morning, *Positive results considering
Pozsutice results cobsidering. Looks like dividends coming in next year maybegoing by this section?
'next year could be a time when the true value of the Touchstar business model is validated. As this goal is achieved, we will remain disciplined. Any capital deemed surplus to requirements that cannot produce adequate returns within the business will be returned to shareholders'
Well hopefully good news tomorrow. Even at this level it seems very cheap.
with keen buying this morning from someone. 40,000 shares bought in small tranches (the only way possible with TST) and the buy price has now moved up to 83.9p. Nice small 5p spread too.
Results are tomorrow - and there's a very useful new video here regarding Touchstar Fuel:
https://www.youtube.com/watch?v=E7_LGxbBZzI
Hitting a annual high today and highest we have had for years, hopefully it sticks with a decent outlook update, in particular order book. Now I am away for a tissue to stop my nose bleed at this giddy height!
I believe i can fly. Hitting £1 soon.
It’s a good quality brand which is well known amongst huge logistics companies. For the current share price it does look very undervalued. I’ve looked into this company several times and have been adding along the way.