Member Info for Adastra

Spread tightening............. interesting and critical infection point?

Appreciate the comment and your take on it. As I've previously posted, I am not expecting the 2014 results to set the price alight as I view them as achedemic. They are a reflection of what Porta was last year. Porta was transformed by the year-end purchases of PPS and Publicasity which will not be included in the results. I'm happy if we showed EBITDA breakeven. Porta UK is set to succeed Newgate Australia as the star performer 2015 IMO with good organic growth across the business. To have Newgate as a finalist in Holmes report Emma consultancies of the year is a good indicator of progress, and the PPS and Publicasity recent wins bodes well. I doubt that all the directors would have piled in at prices of 7.5p and well above if trading was not good. Indeed, all the RNS news has been excellent; there have been no PW's or retractions of expectations. Trading volumes have been very low given the 267m shares in circulation. The Sanlam report was very comprehensive. Non-sensational, growth stock which has built very strong foundations across the globe; eager to grow further by selective acquisition, but only at a sensible price with no existing investor dilution. DW is patient, allowing strong organic growth and fee income to eventually win over new investors. It is taking longer than anticipated but Porta should prove sceptics wrong and it is the trading update on the UK operation that should pleasantly surprise IMO. As I said last week, we seem to be locked in a TR of 7.5-8.5p at present. I doubt we will drop back below 7.5p but volumes are low and the market still needs proof of progress. When, rather than if, it comes, I expect the upswing reflect the (currently underestimated) potential. Time will tell, but the accolades and recognition in communications circles gives grounds for optimism.

not picking up the newsflow and getting in now before the price tracks the progress? Patience....... http://www.holmesreport.com/events-awards/agencies-of-the-year/2015/emea/corporate-consultancies-of-the-year Roll on finals and a 4 month view on the integration/coalescence of Newgate/PPS/Publicasity - pushing the boundaries of UK communications 2015/16.

http://newsroom.newgatepr.com/newgate-finalist-in-holmes-report-emea-corporate-agency-of-the-year-award/

PPS Group generated the most income from public affairs PR during 2014 with £4.64m. Camargue Group ranked second but was someway behind in terms of revenue, posting just over £3m. Instinctif Partners rounded off the top three, banking £2.9m. Overall there were five agencies in the top 20, which generated 100 per cent of their income from public affairs-related PR.

Transformed Porta 2015!

PPS is coining it in and growing strongly. Latest PR news as you point out - Top performer - PPS Group generated the most income from public affairs PR during 2014 with £4.64m! Come on institutional buyers, wakey wakey! Look at the MCap of Porta as a whole, look at the star performer Newgate Australia and look at the transformed Porta UK 2025. If PPS can pull top income in 2014 what can it pull as part of a bigger team in an election year that plays right into its strengths - it has scheduled a big post-election meeting on May 19th at Porta HQ. In answer to the legacy seller, I still hold by my comments posted many times that it's a distressed ex employee needing regular funds and selling down here - when he clears, so will the brake on the 7.5/8.5p price and we will rise with the news. PPS and Publicasity both on a roll, and they were only acquired effectively at start this year. I agree that this price is a steal and par value 10p is the first base once we clear 8.5p glass ceiling.

And every time we get knocked back by the legacy seller(s) drip feeding 25-50k shares into the market! He must be close to selling out now and I really wish than Sanlam could invoke a new entrepreneurial institutional investor to step in and grab his slice and more of Porta. Everything is coming together this year so you really would think that a sector Insto looking for 50-100% upside and beyond would be happy to get in at this level. Patience and time will tell - once the seller goes then up we go and we'll finally leave the 7.5 to 8.5 range.

LONDON—Publicasity, part of Porta Communications, has added a new travel client, winning Saint Lucia Tourist Board, following a five-way competitive pitch. Briefed with developing and implementing a year-round, UK and Ireland consumer and travel trade public relations program, Publicasity work closely with Saint Lucia Tourist Board’s UK-based sales and marketing office. Great to see Publicasity thriving under Newgate/PPS umbrella too.

End week May for results would seem appropriate. It will also allow DW to give a 5 month update on 2015 and the integration of Newgate/PPS along with Publicasity. I'm expecting UK communications arm to be challenging Newgate Australia for star performer 2015 as the coalescence of the two mid-tier PR teams is now a formidable account winner.

60,000 just bought at full ask 8.25p on ISDX, nice to see. Has the legacy seller finally cleared??? Time will tell.

A Top 20 UK communications/PR company by end 2016. The combination of Newgate and PPS has put together 2 mid-tier groups under a single roof in central London alongside Publicasity. In a stroke, David Wright has achieved his ambition to create a communications operation that should comfortably move into the Top 20 ranking over the next 18 months given the growth in fee income. Potential investors have been sceptical of the buy-and-integrate policy due primarily to a delay in the acquisitions of PPS and Publicasity which took longer than expected. In retrospect, it would have been better not to telegraph the intended purchases to the market in March 2014 when they were captured in November and December. The delay was probably due to the keen prices paid and retention of quality management . The facts are clear that from January this year, Porta [in particular the UK Newgate/PPS arm] became a significantly transformed operation capable of chasing much bigger projects. Newgate Australia is the current star, already outperforming expectations and growing rapidly, but the UK operations should now start to dominate as 2015 rolls on. Low cost start up operations in Abu Dhabi, Qatar and Bejing are gaining footholds joining Singapore and Hong Kong. As the realisation finally hits home with institutional investors that Porta is gaining real traction, we should start to rerate and the legacy seller will finally leave the playing field. DW has future acquisitions in his sights [Paris?] but will not dilute existing shareholders at this [ridiculously] low shareprice. So we have a defined route to Sanlams initial target of 11p, which, when it starts, will focus more and more growth company investors to give Porta a second look. The result could be a strong upswing as the potential here is realised. 2014 results plus a pivotal 2015 update on the combined UK ops should start the ball rolling and they are due in May.

Spot on Gotrader - no more to add.

It's frustrating that so little attention is being paid to NOW, ie 2015 and current trading as it is totally transformed from year 2014. With PPS and Publicasity now centralised with Newgate we have a combined communications team that jumped from 58th in 2013 to 46th last year and should leap close to the top 20 by rating in 2015. Porta fee income is increasing at a rate way above all its peers and the combination of organic growth and acquisitions should make 2015 pivotal. We are a growth company and the underlying growth is strong whatever the share price may be, there appears to be a major game going on to disengage the price from the prospects. 2015 is the year DW sees all the parts working cohesively together; the results from here on will speak for themselves and reflect the tapestry he has been weaving since 2011. I believe we now have all the pieces in place to be the £50m communications business that he envisaged. We will continue to grow organically and by acquisition and should jump rapidly into the Top 20 PR firms next year. All IMO but the strong foundations are in place.

Like to keep it in a 7.5/8.5 trading range at present till next RNS. Would love Porta to throw a wild card into the news at this unexpected time as we await finals 2014 and - more importantly - a 2015 update! ..

119000 shares traded in total on LSE and ISDX out of 267m and we're marked down 0.5p........................ Why??? A decent buying opportunity IMO.

No sweat - we're all learning; it never stops. My post below indicates why I'm invested here - the prospects for this year 2015 are excellent. The integration of the UK businesses including the year end acquisitions into a single head office is the key transition. Newgate PR is poised to rise from position 46 in the rankings to just above the Top 20 as Newgate PPS. Verification of the 'much higher than peer fee income growth' will come with the achedemic 2014 results in mid to end May and our rerate should proceed rapidly as the market wakes up to the bigger group.

http://www.prweek.com/abr2015/uk150 If you wonder why DW is exasperated at the low share price given our soaring fee income check Portas against its peers since the table gives 2013/14 comparators. Portas is excellent and growing stronger than all. Also note page 5 - Newgate rose 12 places from 58 to 46 and just below PPS at 48. Combine the two, add synergies of centralisation and co-location of Publicasity and we have a 2015 business that will blast about 25 places up the table to just outside the 'Top 20' UK Agencies.......... Tasty, very tasty. I agree with DW, we deserve a rerate!

GoTrader: there will be little revenue attributable to PPS and Publicasity in the 2014 results as they were only incorporated at the year end. Digital Print and Design and Redleaf Polhill were both acquired early 2014 and should add about £0.8-1m. Pretty achedemic really. What I am looking for is the 4 month integration and synergies of the two new groups into Newgate. They seem to be winning some good contracts and that should be getting them noticed on two levels. They bring £1.25m historic profits (pro forma) into the business and I expect that to rise strongly this year as the election plays strongly to PPS abilities and centralised cross-selling and synergies kick in. Newgate Australia should have continued winning significant market share and I expect the middle and Far East offices to have shown good growth. All in all, 2014 a solid year, 2015 heading strongly cash generative as we shed LLP costs and benefit from centaralisation of UK ops. I think the UK will be the star performer 2015, overtaking Newgate Australia despite its stellar rise. Right time, right talent, right place.

Thanks for that info. Ties up a few loose ends. We appear to have been subject to a couple of legacy sellers rather than one, which is why it has lasted longer than I anticipated. I believe Paul Foulger has sold to help fund his venture in EKF Diagnostics where he is FD having left Porta in 2011 and Graham Herring has been selling down his remaining holding to help progress his IFC ambitions. He effectively dropped below the notifiable 3% in September last year and should be clear soon. That will allow Porta to re rate to reflect its progress to date as the dual overhang has taken time to place with buyers. I expect Sanlam to be highlighting the possibility of a gap jump to potential institutional buyers given the fee income growth that Porta is achieving. Things just got a lot, lot better and more interesting as the year rolls on and it all comes together IMO. What we need now is one of the unhappy Huntsworth Instos to jump in here whilst the price is sub par - the upside could be pretty good if we can attract them - come on Sanlam, time to step up to the plate.