Member Info for Adastra

Hi mazzgd. Gotrader is an extremely good poster and researches his subject extremely well. How do i know this? Because 1] I have researched and posted on Porta since its inception. My reasons for not being currently invested are well documented as are my reasons for watching closely with a view to re-investing. During that time, one poster [Gotrader] stands out as an excellent source of news and information. He neither ramps to excess nor damps to excess, just tells it as he sees and evaluates it. 2] I have exchanged many, many views on the company and met the guy at the last AGM. His research is excellent, balanced and [as far as i can see] accurate. He has no agenda but shares the same belief that Steffan is the way forward with both approach and new management and the urgent need to rebalance debt interest at a better rate than 12%. keep up the good work GT; I still read your research with interest and we both share the same frustrations on 12% debt!! Once that goes down Porta will rerate. And yes, I do think that their results will be good and vindicate GT's optimism when I too will jump back on board.

Always moves the buy price up but the sell price stays fixed and the spread soars to 20% making it uninvestable till the 12% debt interest is resolved. All the recycled contracts in the world won't make a difference till the interest becomes more realistic and sustainable. You really do have to ask about the effectiveness of Porta FD with over three years debt interest serviced at 12% when interest rates are at an all time low and turnover has tripled. What on earth is this guys remit?

This is a 'communications' company! This is old news and has been discussed here already. Goodness, Porta really does need a shake and a wake-up call if it is to move forward. Kill the 12% interest rate on £8m debt and get geared up to communicating with both instos and II's - late news is worse than no news.

Top Tip iii AIM growth stock for your ISA. Confirms all we've said. 2017 should be a great year for submarine atmosphere control contracts, nuclear/chemical engineering and revival of oil/gas requirements. Finals in 3 weeks time on April 4th will confit progress that last two excellent trading updates indicated. Good value for a £100m company in the making.

Weekend tip for one of top 3 AIM growth stocks. http://www.iii.co.uk/articles/396767/trio-aim-growth-shares-your-isa Shares our views on strengths and outlook.

Good synopsis - agree the figures look good and I think there will be more than a few notes on very positive progress. Because of the breadth and growth of the business plus its 'sticky' technology, it is looking very strong. So strong, that I suspect it is being looked over by many a bigger player here and overseas. I'm happy to see the shareprice rise as it deters a predator at this very vulnerable time as the MoD contracts are signed off. If ever there were a time to pounce, it is between April and June, as soon as the pen approaches the paper. I want the real benefits of an independent TPG, let's keep it that way.

Hi mazzgd. As GoTrader will confirm I am very proactive and the answer to your first two questions is 'Yes' and 'Done'. As to the third question, go to the AGM post results, Steffan et al are very helpful at addressing any questions. I asked for a look round Porta last year and, with restrictions on open access due to client confidentiality, Steffan in particular was happy to run through a 'new client engagement' as an example. Obviously there are huge restrictions on what information can be divulged due to insider trading laws, but I have always found the Board to be very honorable and discreet; extolling the plus points of the business without breaching any confidential info. If the new management reflect the enthusiasm and vision of the new CEO then I know this business will be doing well, that is the frustration! Get the Morton dynasty out of the picture or kill the 12% debt interest and it will fly IMO.

Debt/Speed/Clarity. Porta needs to address three things urgently to change sentiment. 1) Get the onerous debt interest down from 12%. Depspite negotiation over the last three years not a single percentage reduction has been achieved by the incumbent FD. 2) Speed - why does it take Porta six months to get its final results out when eg WPP and Huntsworth can do it in less than three. 3) Why are the accounts so complicated that you need a degree to interpret them? Once these are resolved then all the giant leaps being taken by the fresh entrepreneurial management will become evident and the shares will rerate accordingly.

The company is stagnating with an MCap of £12m because it has £8m of loans and convertible loan notes stuck at 12% interest pa. This is masking all the excellent work being done by management who have increased turnover to £34m and rising with successful underlying organic growth. Momentum and benefits of scale are kicking in as is cross-selling over the Newgate platform. Get the debt interest down and Porta will move strongly ahead IMO as its the only thing putting off instos and PI's.

The company would be profitable if it could either reduce or divest the debt interest. Ideally it needs a combined approach by management and 'new' supportive instos to buy Hawk/BM debt but therein lies the problem; at what price? Result, the current stalemate. I am expecting Porta to have 'bucked the trend' and shown strong growth but until that success is not merely being used to service debt at 12% I can't see progress against that constant headwind. Steffan is certainly a very savvy guy, and as CEO I do expect that this priority is high on his to-do list.

A mandatory offer must be made once a person either: Acquires 30% or more of the target's voting rights. Is interested in shares carrying 30% to 50% of the target's voting rights, and that person or a concert party acquires an interest in any other voting shares in the target. And therein lies the sole problem why Instos have been reducing their holdings rather than increasing IMO. Porta drastically needs a rebalance in its shareholder profile which is virtually impossible with Bob [and Hawk] holding so many shares AND dictating the company direct levels. Its a bizarre and odd conflict of interest since this balance is only benificial to BM. One could speculate that director pay is disproportionately high for such a small company in order to suppress a BoD rebellion. Effectively, Bob [and his holding array] control the future. As a seasoned small company investor and entrepreneur, he would normally expect a three-fold return on his investment. That looks further away than ever at this level BUT, by accumulating shares at 3.5-4p he has dropped his average price considerably unlike DW who is still at average around 9p. BM is now in his twilight years and I think his previous benevolence and support is now shifting to different Morton shoulders and that is why we have the stalemate. Two options IMO. It looks to me like the proceeds from the onerous 12% debt, which is in itself is suppressing the shareprice, are being used to buy more shares. Once that reaches 30% then a bid could automatically be triggered - at what level is anyone's guess as BM has the 12% anchor as leverage. Option 2 - just take the company private, again, same rules apply. That is why the shareprice is languishing IMO despite all the hard work being done by management and the sole reason that I'm not jumping back on board. It really will take a management rebellion IMO to shake off Bob. I'm sure that there is a mutually agreeable way forward but it won't happen till the long-standing issue of onerous debt is taken head-on.

ABLE - great company, lots of IP and huge contracts in the offing. Very, very happy to watch this continue to re-rate on quality prospects and transformation to tier 2 specialist tech engineer. Quietly and competently doing everything right. Under-promising and over-achieving. Only issuing relevant news when necessary and yet reassuringly winning new contracts and building for growth from its war chest of cash. Debt-free with a plethora of blue-chips needing its know-how and expertise. Buy, sit, wait.

Hi Guys; Having spent substantial time in the past relaying my thoughts and suggestions to the BoD [old and new] it is obvious that the issue of the 12% debt interest is the biggest contentious issue. On the one hand you have reassurances from the FD that he is ‘all over it like a rash’ and on the other hand a BoD not to pressure the issue [for fear of some kind of repercussion?? Never did get a straight answer]. Drop the debt to LIBOR + 1% and this company with its proactive hands-on management would soar. I did ask for Bobs e-mail so I could make it personally, but the then CEO suggested it was not the best way forward. I am led to believe from over 3 years interactions that all senior internal e-mail was/is cc’d to Bob anyway. Bob has been sanctioned four times by the Takeover panel to date; he’s a pleasant enough chap and without his financial support, Porta would have buckled financially several years ago, pre-Steffan. I am convinced that Steffan, Gavin and new Board members would resolve the debt by ‘buying’ it off BM if the option were there but I got the impression that it was far more complicated than it first appeared. It is bizarre that the one holding the reins on the debt is the one putting the brakes on the business! Take off the brakes and the value of the Morton/Hawk conglomerate holdings soar in value and so does the value of the holdings of long-suffering shareholders. Bob is certainly in the twilight of his entrepreneurial stewardship. Time to capitulate and let Porta fly.

Hi GT, long-time no post on Porta as I sold out into peaks. I was a very long term holder here and attended several AGMs, exchanging my thoughts as you are aware. I really thought that it was getting its act together when Steffan came on board - I really like the guy and his vision. His promotion should have shifted this up several gears and it would have done; apart from the groups inability to get the 12% loan debt down. It is like a giant anchor quashing all the leaps forward that the new BoD have made. The accounts, as I have mentioned many times, really need to be simpler to understand. Presumably that's what the FD spends all his time on as I've been promised too many times that he was 'all over the debt like a rash'. That was over 2 years ago and why I sold out. Thankfully I have been fortunate enough to recoup my losses here elsewhere but I still believe that the fundamentals of Steffans vision are correct - I just wish he and the new BoD would buy a wad of shares off Bob Mortons family and get rid of the onerous 12% pa debt. It is ridiculously onerous as I repeatedly mentioned to the Board. I am watching with a view to re-investing on any good news, but I'd rather miss the bottom than get 'stranded' here again. The WPP outlook wasn't great as a bellweather so it will be interesting to see just how Porta/Newgate is weathering the headwinds. Next t/u should benefit from healthy exchange rates from Australia but I want proof that Porta can beat all the competition out there before I pitch in again. I really really hope they can pull it off for the BoD, employees and shareholders.

Those who have been following the transformation of cash-hungry R+D led Corac into a specialist engineering company supporting critical applications in high technology sectors will be heartened by the speed of progress i all areas. Signing off of the first MoD Contract is imminent and yet we have sellers. TP Group announced on 21st March last year that the MoD had extended its annually renewed Submarine Air Purification Equipment Support Contract by a further 12 months. It was obvious to both parties that annual contract renewals for such vital, 'sticky' and embedded technology was far from ideal. The MoD therefore indicated its desire to enter into negotiations regarding long-term 'continuity of service/supply contracts with TPG as the sole-source supplier. Those negotiation s began in July last year and should therefore be signed off this month to follow-on from the above. In parallel with these negotiations, in August last year the MoD requested the same long-term contract conditions to be applied for the provision of a number of Combined Oxygen Generating Systems [COGS} and COGS system upgrades for UK submarines. This separate contract should also be signed off [probably at the same time]. Contract 1 has an estimated value of £27.5 million over 7 years [with an optional 3 year extension]. Contract 2 has an estimated value of £22.6m over 8 years. Both contracts are due to start 2017. Surely, this is one of the better times to buy during the whole transitional phase of this £100m company in the making.

Strengthening the BoD looks like a clear indication of strong growth on the horizon. Clearly, with the recent toe-in-the-water contract by General Electric, the expansion of nuclear tech capacity, the imminent large MoD contracts and recent upswing in Oil and Gas work is going to need additional capacity as the company grows. The company also needs to protect itself against opportunistic predators as the MoD contracts are signed as this is will be a secure cash pipeline running eight years ahead and makes a sub £100m company a peach buy for a bigger player. IMO TP group is doing the right thing at the right time bringing existing shareholders onto the board.

Thanks for the heads-up on that Megabux. The legacy and technical expertise of the submarine/maritime division stands TPG in an excellent negotiating position despite it being sole tenderee. The technology is both embedded and 'sticky' with many interactive contractors like BAe supporting TPG's atmosphere control systems. Realistically it is a 'done deal' with price the sole consideration. Because of the proven excellence and reliance of the embedded systems and ongoing evolution and design, the MoD will want long term contracts to guarantee security. I think we can expect news at any time but no urgent deadline. My biggest fear is that it opens a window for a predator who sees that concrete earnings stream as the icing on the cake to all the other highly valuable IP. I would like the share price to be higher as it keeps up with events. In my mind it is currently trailing it's excellent prospects. The recent General Electric contract is a notable toe-in-the-water one that I expect may be testing TPG's quality and adherence. It is excellent and could herald more orders, but the bigger picture is just how good TPG as a company is looking. A Henry Hub contract, big news on the latent oil and gas front, gearing up by Spirax microgen, or a nuclear tech contract for the newly installed facility at Dukinfield. When you add these into MoD work and overseas submarine and Thyssen-Krupp work it starts to look anything but a one trick pony; more a very active mini conglomerate growing rapidly. Oh.....and the two acquisitions at better than keen cost. The only problem I see is possibly over stretching the resources, but from what I can see the BoD have their hands firmly on the tiller on that front, expanding to accommodate requirements. With no debt and £8m in cash, there are no major funding requirements here and the quality of its client base means banks would fall over backwards with a low LIBOR revolving credit facility when/if needed. Tightly run neat little company.

Recent acquisitions were at a very keen p/e level and there are multiple fronts for TPG to grow. At present, all eyes are on the MoD contracts with no growth being attributed to the substantial oil and gas capabilities of the group. TPG has a lot of expertise in both construction and ongoing care of downstream O+G facilities which has just turned up from its down cycle.

Stunning transformation: to summarise TPG have two sole source contracts in negotiation with MoD for Submarine air purification and Combined oxygen generating systems [c£50 million]. A £1.0 million contract from an existing long term customer based in South East Asia for the supply of a submarine carbon dioxide removal system. This contact potentially forms part of a broader replacement programme. a contract to supply a new variant of its existing carbon dioxide scrubber technology to ThyssenKrupp Marine Systems GmbH ('TKMS'), one of the leading system providers of non-nuclear submarines and high-end vessels. The initial contract with TKMS is worth a minimum of £1.65 million, with the potential for multiple further units. TPG Engineering, the Group's thermal systems company based in Dukinfield, Greater Manchester, has been awarded a project to build a large steam condenser, to be installed next year at a chemical processing plant in the UK. the Group's Managed Solutions division has won a contract with the Ministry of Defence (MoD) to provide independent technical support to the Army HQ on the Land Environment Tactical Communications and Information Systems (LE TacCIS) programme. [The activity supports a £3.2bn MoD programme to provide information superiority to UK Commanders]. TP Group (AIM: TPG), the specialist services and engineering group, announces it has been awarded a contract with BAE Systems Marine Ltd. for £5.3m. TPG Engineering has been awarded a contract by GE Oil & Gas within the nuclear sector. Valued at c.£1.5m, the contract commences immediately and will be delivered by TPG Engineering from its facility at Dukinfield, Greater Manchester over the next two years. Plus the acquisition of ALS Technologies and Flexible Software Solutions to enhance existing offerings into defence, commercial and aerospace sectors. Plus, of course the two excellent trading updates in December and January. Sound progress.

Agree sam7. Everyone entitled to their own view on TP Group but the last post is indicative of little in depth research at even a fundamental level. Dar- appears not to have researched the nature and 'stickiness' of the MoD contracts and the plain fact that TPG are the sole negotiator ie no-one else is in the frame as there is no other submarine atmosphere control supplier able to install, repair and maintain existing and planned systems. The question is not one of if the contracts are signed more at what financial level over the eight year contracts. He/she also seems to be paying no attention to the many other contracts, not least with Spirax-Sarco and the maiden contract with General Electric. Whilst I do expect the share to progress upwards through a series of steps, a retrace to 3p shows just how little some contributors actually research in depth. The transformation of TP Group from Corac has been a gradual one from intensive IP protection and R+D spend to an increasingly significant niche as a specialised tier 2 engineer with recently added nuclear capability. Blatant unsubstantiated deramping serves no useful purpose other than to uncover a desire to get into a growth share at a cheaper price imo :))))