Member Info for Adastra

http://www.paulzimnisky.com/roughdiamondindex Bodes well for the forthcoming sale - as diamond prices rise the metrics get better and make up for some of the unexpected delays that are a material part of mining.

The post-Brexit IPO market appears to be picking up speed after a lull - good for Newgate/Redleaf http://newgatecomms.com/newsroom/newgate-communications-advises-autins-group-ipo/

I'm not going to the general meeting as it's merely a formality to approve purchase of Redleaf stake and rubber stamp share capital reduction. I doubt any questions would produce answers as its too close to interims. Like you, I have been pressing on debt renegotiation as I think it's pivotal to sentiment change and rerate. I am assuming that progress on this priority is the factor precluding director buying by Steffan and Gavin. If this is the case, then the interims could well see a step change as debt finance is halved and directors set buy orders on interim release. If that's the case, then it would also bear out similar thinking by the block buyer. The coiled spring effect of IPO's post-Brexit is also starting to trickle through now and this should escalate rapidly into 2017 which bodes well for Redleaf and our additional 15% holding going forward. As you say, the Far East and Australian arms of Newgate are very lucrative and we should see major benefits from currency exchange in this current half. The market will be watching closely for the 2-3 month trading from end June to mid September and the current outlook. HQ overheads are benefitting from better integration under one roof and I expect more to come. Location is very important in the case of Porta being at the centre of the financial hub in the City. I would really love a name change to Newgate-Redleaf which indicates the true nature and progress of the business. A triple whammy of name-change, debt renegotiation and director buying alongside a confident outlook would light up this lacklustre period.

The General Meeting to approve purchase of another 15% of Redleaf and share-capital reduction should be preceded by or accompany announcement of interim date in week four of this month. It will be the first results period free of A+D from acquistions so we should get a clean set of figures reflecting pure organic growth as PPS and Publicasity are now fully integrated. Any Brexit hiccoughs should have been assessed and evaluated and we should start to see IPO activity starting to escalate due to pent-up demand. The appointment of several senior managers during the period will have affected bottom line initially, but the key point is that these were happy to come on board WITHOUT the need for expensive head-hunter fees. The current market conditions and outlook are the key points to note as the effect of appointments made should be increasing client size and spend. I am personally interested in the apparent focus shifting onto the insurance sector where Porta are building in expertise to attract and retain sector clients. I agree with GoTrader that a big buyer [or several] are very actively mopping up blocks of 250-500,000 shares as smaller package sells hit their purchase package requirements. Will be interesting second half to the year as these holdings rise to notifiable levels.

I am watching Falanx from the sidelines having bitten the bullet taken a loss earlier in the year. The business certainly does look a lot healthier post finals with cyber income up and overheads down but I am equally concerned re darwin. My other concern is that Falanx won the CERT UK contract "against stiff opposition" in November 2014. It was a 2 year contract and so is up for renegotiation in November, same date as Darwin. Any comments really welcome as it is certainly stopping me jumping on board at present even in a small capacity.

Eventually the quality of offerings by Porta will be recognised - look at the IPO of Blue Prism, supported and floated it is soaring. Glencore stood at 88p before Newgate took it on and its doubled in under 12 months. All this bodes well for future client engagement. Patience may actually pay off in the run up to 2017.

Volume is still thin and we appear to be consolidating around this low level. The market remains unconvinced that the cost of recent senior appointments will be reflected in increased business over the summer given the effects of Brexit. The effects on the IPO market were marked but now appear to be subsiding and should accelerate into 2017. Despite that, most of Porta's income is of a recurring nature. If Newgate in particular, can add on on its integrated management suite to existing client needs, then the business margins should escalate. The management are equally frustrated at the nadir of the shareprice and I'm sure that guided their decision to use half cash to pay for the acquisition of the extra 15% of Redleaf thus reducing the share component at this low level. Despite extending the loan debt repayment and packaging in the interest, the spotlight is on Gene Golembiewski FD. It is a year next month since he prioritised the loan debt issue and its reduction. The business 'should' now be in a far stronger position to renegotiate for a variety of reasons - cash generation, historic low interest rates etc. Since he is a beneficiary of the 'hurdle' incentive plan negotiated in May, THIS will be viewed as the test of his ability. Get it right, and he shows why he is on the scheme; inaction will certainly focus attention on him by II's at the next meeting as this is pivotal to the bottom line. September will give one of the cleanest set of accounts we have had since start-up D&A should have almost gone. If the platform of integrated and combined services is gaining traction as recent contracts appear to indicate, then we should be back on track post any Brexit hiccough.

Volume is extremely thin as we are in the closing weeks of the summer hols and MMs have no direction on which to fix the price. The sellers appear to be the odd frustrated or bored PIs looking for equally evasive profits elsewhere. On the plus side there appear to be signs of an Autumn resurgence in the IPO market which should strengthen markedly into 2017 as Brexit has pent up demand. Australia continues to dish up good business for Newgate Oz so September should see a decent trading update and interims. Additional expenditure on quality execs should be more than covered by their effect on business and D+P write downs should have dropped dramatically. Exchange rates should help Newgate Oz give a good set of figures. Once we own 66% of Redleaf H2 will see internal dividend income go back to Porta's bottom line and the fact that Porta paid half in cash and half shares should be viewed positively. It would also be opportune to bring Redleaf 'in house' at Sky Light City Tower like Capital Markets reducing overheads markedly. It would also pave the way for a Newgate-Redleaf' rebrand - at least I can dream.

Initial coverage brokers note showing business growth trajectory, increase in cash-flow and renegotiated loan debt all in one document. We wait in hope.

The only anchor holding back Porta from rapid progress is the legacy 12% loan debt so the real pressure is now on Gene Golembiewski the FD to resolve this once and for all. There is absolutely no excuse now to be carrying loan debt at this unacceptable rate. Porta is now generating free-cash and should be easily able to secure cash to refund the loan payment at LIBOR + 1%. That would IMMEDIATELY bounce the bottom line and, combined with reverted dividend income from the extra 15% of Redleaf would transform group earnings. This is a number one must do and has been a priority since September last year. Gene must sort this or his position will come under scrutiny. It's not rocket science now that we are generating cash; the banks have been directed by the BoE to support SME's. Let's get it sorted and start to head for that 13p hurdle.

Porta is clearly suffering from market maker apathy at present where the price is 'flipping' 0.25p on minimal [100k] trading and the 16% spread is certainly not helping. We are clearly in the doldrums despite all the positive noise coming from Redleaf, Newgate and PPS via Twitter, Gorkana etc. It will not take much to tip the balance if the new senior appointments and their effect on business starts to spread. The biggest transformational deal is in the hands of Gene [FD] who can single-handedly change the prospects with a stroke of the pen by renegotiating the onerous 12% loan debt. This would bounce the bottom line overnight and pile cash into the coffers. Come on Gene; cometh the hour......... Everyone else in the company is firing on all cylinders....go for it.

Can't fault any of your logic. Porta appear to be targeting the insurance market as a niche. The market is buoyant at present but IPO's are suppressed. I expect this to reverse in Q3 and accelerate in Q4. We have built the experience and expertise to really thrive as market sentiment returns post Brexit. Porta, Neewgate and Redleaf are all in a sweet spot for Q4 2016. You can quote me on this in early 2017 when the share price is 3x what it is now. Mark 23.25 08.08.2016.

Hi GT - it's actually very good news that we are getting more of Redleaf as it brings more profits in-house and that goes directly to Porta's bottom line rather than in associate dividends being paid out. The share reorganisation is a housekeeping exercise which could actually be helpful in a year or twos time. The main priority, and the one which will have an immediate and profound effect on the shareprice, is renegotiation of the loan debt. There is absolutely no excuse now for the BoD not to be able to get a huge reduction to around 5.75% from the current [ridiculously high 12%]. The government is pressing banks to lend to SME's so this is a perfect time after yesterday's 0.25% rate reduction. Time for Gene to really run with this as FD.

Porta acquiring another 15% of Redleaf bringing ownership to 66% and bringing more dividends in house. The share reorganisation is merely a book-keeping exercise and has no effect on existing holders. Coincidentally, It actually paves the way for the introduction of a dividend payment in the future when the board deems appropriate. Redleaf has a good recurrent income stream and is growing client numbers nicely.

Now we have separate and effective Broker and Nomad in Singer N1 and Grant-Thornton we should start to see increased investor exposure. Newgate and Redleaf are 'household' names within the City, Porta less so. It's now time to see just how effective our exposure team are at promoting Porta the company. We urgently need to get on the radar of more growth fund investors to widen our shareholder base. It's ironic that we seem to be gaining a lot of Insurance company clients but we have yet to get them on our share register. Momentum appears to be building nicely now that we have achieved the 'critical mass' that DW envisaged with his build and integrate policy. Staff incentivisation is key to capturing clients and the new integrated financial, corporate and trade offering is hitting receptive ears. The company reputation is growing in the City and it is attracting some of the best talent in the business. Key management figures are joining Porta and all are quoting the novel integrated services platform as a strong reason for their getting on board as the business scales-up. Cash generation is key and last year saw a near 40% increase in gross profit with 14% organic growth. It seems to be escaping big potential investors that organic growth has averaged over 100% since inception in 2011. More importantly, operating cashflow turned strongly positive last year to £1.3m from a previous year outflow of £3.4m. The market must soon wake up to the fact that the business is now a fast-growing operation coming from organic growth of maturing constituent companies co-operating under one umbrella. I have waved the Porta flag since inception and am exceedingly frustrated at the current low shareprice, but I have outlined the various reasons, most of which are now receding. The balance is tipping quickly this year and I expect sentiment to change equally rapidly as the next stage of growth kicks in. We have effectively been operating in 'stealth mode'..... now is the time to decloak and be noticed.

The bull points are that DW has NEVER issued shares below par value 10p for any acquisition. I estimate his own b/e price to be around 9.3p which is close to par. The recent share incentivisation scheme has a 'hurdle' price of 13p below which there is no payment to the three execs in question. The business hit positive cash generation this year which was pivotal in both strategy and the ability to negotiate debt restructuring with banks who will now be willing to listen. Combine these with progress to the next phase of growth and we should see 10p broken sometime by end 2016 with rapid consolidation before a new growth phase begins in earnest in 2017. I am expecting major 'events' in 2018 as the revenue breaches £50m and upwards. All IMO.

Steffan Williams MD appointed Chairman of PRCA https://twitter.com/PRCA_UK?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor Just how much progress do investors need to see with Porta before they realise the whopping networking base that is being built here???? Congratulations Steffan.

I should have added, that exactly the same pattern happened with Citigate in the 90's headed by David Wright before he grew Incepta, both with huge success. The shareprice languished unrecognised and below the radar till it finally drew attention. The sentiment changed literally overnight and the buyers appeared in droves wanting to be part of a unique, successful and strongly growing business outstripping its peers. The shareprice and MCap responded accordingly, rewarding handsomely those who had the vision to invest during the build process as organic growth kicked in strongly. The very long period of frustration should now be coming to an end. This quarter may show a Brexit hiccup but Q4 should signal a resumption of strong growth with 2017 being a real cash generator IMO.

Hi mazzgd - welcome to the conversation. We are all as frustrated as yourself that the shareprice is totally disengaged from performance at a company level. GoTrader and I attended the AGM where I presented ten specific questions, all of which were answered positively. Trading in the Jan-May period was on target and on budget, exceeding last years levels but the effect of Brexit was wisely answered with caution since its effects were not accurately assessable. The IPO market is currently down but should bounce back as pent-up demand is strong for companies to expand and float. That would affect mainly Redleaf, but their string of new contract wins from established companies appears to have increased considerably. Newgate has a lot of repeat business and its U.K. arm may flatline for the next quarter, but it too appears to be performing well. Newgate Australia is accelerating and will also benefit strongly from the exchange rate balance this quarter. It was a �1m start-up that must now be approaching a value as much as the whole company as a stand alone. I asked Porta for a look around the head office post-AGM which, as I was informed, would be difficult due to the volume of price-sensitive material which may be on desk and display. Instead, I was presented with the induction process given to new clients and the range of integrated services on offer by Steffan. It was an excellent and comprehensive portrayal of client capture using the 'unique' integrated services platform and I was impressed. It was clear to me why I would choose Newgate as a one-stop operation covering financial, communications, reputation management, client engagement etc. It was also obvious why quality managers were joining Porta as it was carving a distinct niche for itself, gaining traction. Revenue has increased strongly every year since 2011 so why the heck are we not hitting double digits in the shareprice??? Three reasons: one: Sanlam/Allenby have given virtually no investment advice/broker notes on Porta. We are still a small sub �25m MCap and really need a keyed up advisor to engage, whet and monitor investor appetite. That hasn't happened for 20 months now. The appointment of Grant Thornton as Nomad and Singer N1 as broker has given us that essential split-role combination to rectify this. Two- onerous loan debt currently at 12% from the chairman and family trust. This is far too high and should be halved to LIBOR +1%. I brought this up at the AGM. It IS a priority that could only be realistically tackled when the banks saw current strong organic growth and cash generation. I, personally, expect that to be the subject of an RNS in the not too distant future and it should have a significant effect on shareprice and sentiment. And Three: probably as a direct result of one and two, we have a persistent seller who has constantly dripped blocks of 25k shares every time the price rose for over 18 months keeping the price suppressed. This will end and so will

http://www.consultancy.uk/news/12286/global-ipo-activity-sluggish-as-companies-deal-with-uncertainties This is an excellent article that illustrates the lull in IPO's may be short-lived given investor appetite and continued low interest rates. The current exchange rate may also encourage overseas investors who see value in UK-based companies. Q3 may be weak but Q4 2016 looks a lot healthier and 2017 could well see a knock-on rash of IPO's as stability progresses and Brexit turns distinctly positive as September results season kicks in. Porta could find itself in a very sweet spot after the economic uncertainty disipates IMO. The company starts from a very strong position after 5 months initial trading and can weather a summer blip as it traditionally the weakest quarter of the year.