Member Info for Adastra

Newgate now has global strength and recognition especially in the Far East and Australia (where it is a leader). In the UK it has absorbed acquisitions and operates under one roof whilst retaining individual specialities like Publicasity and PPS. Redleaf is UK based but also sits comfortably alongside Newgate under the same umbrella. Both the Newgate and Redleaf brands are well known, being regular award winners and frequently cited in communications. Porta, on the other hand, is much less visible, despite being the parent. I appreciate that we do not own all of Redleaf.....yet, but we own 51% and are increasing regularly so it would be a good move IMO. The rebranding would most certainly raise the profile of Porta giving it instant recognition. Our current MCap of below £15m just does not reflect a company with a 5 year increasing turnover currently above £30m pa and I feel that this is due to lack of exposure and research by potential investors. We need to raise the profile and realisation that Porta has evolved into a formidable integrated communications vehicle with a unique offering. The shareprice has languished as Sanlam/Allenbys failed to promote this transition. Citygate (David Wrights original venture) also languished for several years in the 1990's before its shareprice soared once investors became aware of what was being built. We have a seasoned BoD with excellent talent being assembled - Steffan, Gavin and Charles successively joining the leaders since last October and bringing formidable contacts with them. It is worth pointing out that these individuals joined on the merits they saw in the Company and its potential NOT via expensive head-hunters. That in itself speaks volumes IMO. The Brexit effect will have softened Redleaf due to IPO flotations being held back, but there is a lot of recurring income and the brand continues to win awards and excel. Newgate Australia will certainly benefit from the rise in the $Aus/£ alongside its doubling of operations forecast into 2017. The first 5 months of the year saw Porta exceeding expectations and I expect month 6 to have fallen back as it was Brexit month. Confidence in the London market has remained strong and H2 should see the emergence of companies who need to IPO in order to expand their businesses. Newgate and Redleaf are continuing to win clients to add to the strong recurring revenue stream which can only bode well for the medium term. Brexit may have wobbled stock market flotations but it has only coiled the spring as the appetite is undoubtedly still there.

The string of contracts of being won by Porta companies is totally at odds with the current low of the shareprice. The lack of correlation must correct at some stage as annual revenues are well in excess of twice the current MCap and growing. The appointment of Grant-Thornton as Nomad and re-engagement of N+1 Singer as broker should soon have an impact on spreading the message to a wider audience; something that has been totally absent under Sanlam/Allenby. A really good and positive broker note on progress would certainly be a step in the right direction. The appointment of Newgate by Sompo is a major milestone verifying the novel integrated approach being pursued by Porta. I really believe it is time to shed the little-recognised Porta logo and replace it with a new corporate rebranding to Newgate-Redleaf which is universally recognised and respected. I am sure that many big institutions are probably in the dark when it comes to realising that Porta is the holding company for both Redleaf-Polhil and Newgate. Time to fly a bright new flag and use the brand recognition we already possess.

Grant Thornton were appointed as Auditors in December as their size was more appropriate to the size and growth of Porta. Having signed off the annual accounts, they have now been happy to take on the role of Nomad. This is excellent news. Sanlam (now Allenbys) have done nothing to promote Porta since their appointment in October 2014 as I specifically voiced at the AGM. Great to see N+1 Singer returning to Porta as broker. This is a good move.

Good to see N+1 Singer replacing Allenby as broker alongside Grant Thornton as Nomad.

Firing79: you've actually proved my point! Twitter and FB are part of one of the multiple channel offerings that Porta offers its clients alongside a host of other financial, reputational and commercial management aspects. So many companies outsource for a variety of corporate needs. When you sit down with the CEO for an hour and actually go through the Newgate process of client engagement THEN and only THEN do you realise what a super portfolio of services that are on offer under one roof. Cross fertilisation of these resources is the key and that is why the company is addressing 21st Century needs head on. It's not just about 10 a penny advertising and exposure, this is a comprehensive company engagement package. You'll have to take my word for it, but the client list was very impressive and I can certainly see why Porta is attracting such high calibre management. It is a groundbreaking approach to the whole process of company communications - financial, commercial, reputational and public using a variety of media channels and platforms all under one roof. Very impressed.

It has been a long Sisyphean struggle but, as I have stated many times, Porta now appear to have reached the critical mass to achieve the goals set. It is now an integrated multi-platform communications, advertising and marketing company offering a one-stop operation for clients large and small. It has differentiated itself from competition by offering a range of ten or so complimentary functions in a single package. No other company is currently offering the same focus, preferring to concentrate on one or two channels. That is why people of the calibre of Steffan, Gavin and now Charlie are joining Porta. They are following the potential and helping to realise the future.......their lead will be followed by the money as bigger investors start to wake up to the quality that is being amassed under one roof. The networking circles that these guys bring in should not be under-estimated, especially at a time when post-Brexit industry is looking for guidance. Porta has very specialised knowledge in its portfolio companies such as PPS and its strengths in reputation management.The landscape is changing rapidly in PR and communications and Porta is setting itself firmly in that rapidly moving stream. Certainly one to watch and follow given the depth of talent and very competent management that is now coalescing.

Don't sweat - the FTSE250 is more representative of UK industry than 100 and it's still down despite recent rise. The 100 covers mainly stocks with big international earnings.

The client list for Porta is both impressive and diverse and it is punching well above its current MCap weight IMO. David Wright has assembled a comprehensive group of businesses that are in the process of being 'knitted together' by Steffan into a differentiated and integrated multi-platform business. The vision is now materialising and attracting bigger clients who want a one-stop approach to marcom. The increasing emphasis on reputation management plays directly into Porta's strengths given last years inclusion of PPS into Newgate. There is certainly a level of adrenaline circulating in Skylight City Tower that's grasping the baton and ready to run with it. Let's hope the market warms to the level of client satisfaction that is on offer.

Good to meet you at the AGM GoTrader. I think you’ve covered most of the pertinent points. I was very pleasantly surprised by the increase in the number of attendees this year over last years AGM. It was a confident outlook in uncertain times post-Brexit highlighting the recurring nature of many revenue streams and the resilience of overseas earnings but also adding caution concerning the London IPO market.. Porta’s offering of integrated communications, reputation management and marketing give it the flexibility that companies are increasingly seeking. The fact that senior figures with influential networking overlaps are joining the business bodes well for the future. I note with interest the targeting of the insurance sector for increased exposure. Steffan, and also Gavin, are of the calibre that will start to attract bigger accounts as the comprehensive communications package is rolled out. The inclusion of a representative from Capital Access Group in potential client discussions also allows for and promotes cross-selling of services. Refinancing the debt at a considerably lower rate than 12% should now be possible given the positive cash-flow and emphasis on acquisition-free organic growth. None of the businesses within the group is loss-making. The gradual taking back control of Newgate Australia and Redleaf will enhance earnings as dividends will revert back to the business. The turnover of £34m makes the MCap look very undervalued at just £13.6m - Similar [but undifferentiated] businesses are valued at around 2x fee income and if the debt can be renegotiated and earn-outs reduced it will directly benefit the bottom line. Porta has succeeded in creating brand differentiation in its integrated service model; the task is now to attract more and bigger accounts. Porta’s own investor communications is recognised as lacking drive. The company needs to highlight the extremely conservative accounting policy it takes on intangibles. The increase in A&D was due to all three acquired subsidiaries in 2014 having their fair-valued intangible assets eg Customer relations and Brands amortised in a single year to Dec 2015. Steffan is ‘polishing the rough diamond’ that Porta represented on his appointment under the seasoned BoD led by David Wright. Gavin Devine should now be adding another layer to the evolving business. I would really urge the Board to rebrand the group under the internationally recognised ‘Newgate’ banner as I am sure that this would immediately enhance the profile and exposure for minimal outlay.

Looking at the surge in activity on Newgate Twitter and meeting activity it would appear that communications are being thrown into the spotlight with Brexit as industry bosses and bankers try to unravel the implications. This could really work massively in Porta's favour as markets stabilise and grasp the opportunities. I think that fate has played into the hands of Porta in that it now has the critical-mass team in place to address the needs of our industry and commerce.

We need a real strong trading statement at the AGM on Thursday. I suspect that the need for corporate communications just actual escalated rather than slowed. Time will tell.

One: whilst there is no reliance on new tender contracts as they are spasmodic and 'have been EKF Achilles' Heel' in the past', it has been a considerable time since one was won ie Saudi Arabia last year. Two: Is the excess inventory received back from the dreadful Mexican fiasco, whilst written-down, also suppressing output from Barlaben? I am just trying to understand why Henderson sold 4.5m shares having recently taken their holding above 12% and now below it. Chris Mills dutifully picked them up which is excellent price support, but I would have expected the two to work together [Bidco??!] to hit 30% and allow Chris to take private. Just a set of thoughts.

Apologies on that last post, typed quickly as I was on phone and didn't notice. The original audenshaw@mail.com was correct, and Yes, I do have one from yourself. Anyone wanting questions to BoD at AGM I'm happy to accept from shareholders unable to go. It is mail.com on this one, NOT gmail.com.

Hi GT; I agree it certainly looks like Redleaf have spotted a valuable niche in the sector. I am going to the AGM with a colleague next week so if you have any burning questions to ask let me know. Thanks to those who have already posted to me incidentally. Please mail any relevant questions to audenshaw@gmail.com if you are a shareholder who is unable to attend and I will try to put them to the BoD on the day.

After a lot of thought and lack of replies from management to my questions I bit the bullet yesterday. Market volatility means that I can use the cash elsewhere. I hate taking a loss, but the lack of answers to fundamental questions makes it just too tenuous. Good luck to all holders, November is the critical horizon as the CERT UK is up for a 2 year renewal and cash is also low at that point. I really do hope that some big contracts come in for those who have flown the flag here, it's just too big a risk with lots of promised events still not happened.

Nice little turn in a short space in current uncertainty.

This is an excellent piece outlinining the precipitating effects of a Brexit vote https://newgatecommunications.wordpress.com/2016/06/09/brexit-what-happens-next-if-we-vote-to-leave/ Thanks to Gareth Jones Newgate

I'm hoping to attend the AGM with a colleague on June 30th. I am compiling a list of questions to ask the BoD so if you've any to add any please e-mail them to audenshaw@mail.com

I can't fault your logic Dibs, and if past experience is a guide, your punt will see a good profit as you called it 'spot-on' for the rise and fall previously. The fact that the valuation of the business is now around £3m if you strip out cash means that any good contract will have a disproportionate effect on the shareprice. It really is crunch time where all the spiel has to start to produce. We know that lead times are prolonged but we are now at the nine month stage from announcing pending contracts with 'leading European financial institution' and others. Ther is a definite upswing in 'Falanx' presence in government departmental risk discussions but that means little if no revenue streams result. I've averaged down and don,t have a 'big' exposure here but remain convinced that by way of a medium-term punt it could be very lucrative. It has a six month window to perform.......period.

The more you study them in depth the more prudent Gene Golembiewski FD becomes. Unlike a lot of AIM companies where acquisition assets are repeated dumped into and stored in intangibles, Gene has been acute in writing them down over very short time-frames. I feel I must apologise for the disservice I made that the accounts were 'muddy' - they are just complicated by the nature of the businesses where revenue and profit margins are unlike other industries. On scrutiny, there is excellent and ongoing impairment testing using CGU's for each aspect of the business which ensures constant value monitoring. The company has been criticised for its high amortisation and depreciation costs without the understanding that acquired customer relationship values are being amortised at a rapid rate - 4 years in 2014 and 3 years 2015 - hence the almost £2m amortised. This will have hugely beneficial effects over time as the write-down increasingly bounces the bottom line. The bond renegotiation has effectively pushed out the 'term-loan' to April 2019 despite the onerous interest rate, but that interest is only payable on redemption so should give medium-term benefit. I am sure that the company will be examining all avenues of early redemption possibly by bringing a new II on board. Interesting times ahead. Given the recent appointment of Gavin Devine to join Staffan and DW on the Board, I expect a regular flow of positive news to follow the EU vote.