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Although Ian asks us to be patient (again), there are snippets of good news hidden within the report. I am pleased they got the goodwill impairment out of the way, which as they say has no implications on cash flow. "Touchstar has a number of customers now using the Transport back office solution, PODStar. This system has been supplied into the generic transport sector, a new and extensive opportunity for us, as well as two new customers adopting the package in the fuel logistics sector, where traditionally we are strong. We now have 7 customers (2016: nil) with over 200 vehicles (2016: nil) operating on the platform. Touchstar recently deployed an integrated back office and Mobile point of sale system for an international 'flag carrier' airline. The project from kick off to going live took around 3 months. Faster deployment afforded by the cloud-based system resulted in much reduced demand on resource when compared with an on-premise system and in turn putting both companies in a position to realise revenue earlier. We now have 3 airlines (2016: 1) using the 'NOVOStar' back office system." 0 to 200 vehicles is significant. Ian has the products, the money and the conviction. Somehow,
Mountfield Group, Ticker: MOGP Current MCAP: �3.8million; Shares in issue: 254million; Shares not in public hands: 55% Area of Operation: Provider of flooring systems to main contractors and corporate end users Specialises in the nationwide installation of data centres and wind turbine projects Client List includes Vodafone, Mace, ISG Plc, Skanska, 2BM, McLaren, BP, HP, Linklaters, Merrill Lynch, Reed Smith, BBC, Standard Chartered Bank, UBS, Henderson Global and Unilever Diversifying customer base and more recently, been negotiating contracts overseas. Financial: Over �11million of contracts announced since August 2017 Net profit before tax for the first half of 2017 was �305k. Net profit for the period YE17 (12months) is likely to exceed that achieved in both the first half of the year to 30 June 2017 and the second half of the year to 31 December 2016. Noticeable improvement to the Group's working capital position as they target higher margin contracts Other Notable Points: Directors hold a significant portion of the shares and hence, interest aligned with shareholders. Resolution to convert �3million of Loan notes to Founder Shares approved at previous AGM. Founder shares redeemable if aggregate consideration arising on a sale of company/entities, exceeds �20million. Board meeting with brokers to raise company profile and detail significant progress achieved since restructuring. Nice gap on the chart above 3p
Board members recognise the lack of rerate and will be meeting with brokers in coming weeks to raise company profile and get the message out. Hopefully, rerate not too far off. MCAP still 3.5million despite multi million contract wins and significant increase in trading profit.
That RNS was definitely a kick in the teeth, esp after i bought another 30k two weeks ago. I completely agree with Rivaldo that this may have been overdone and hopefully, we can look forward to positive news relating to IDS and CD4. Couple of points: I would advise anyone concerned about an equity raise to contact the company. It takes just a phone call or an email to discuss your concerns with the company. What we could potentially see though is the company agreeing to increase the overdraft facility. My understanding is that the directors are in closed period. News on IDS seems imminent, based on RNS wordings. Slightly disappointed that broker numbers won't be available for at least a month, unless someone can confirm otherwise. The shares here used to be quite tightly held (VCTs) and I recall liquidity was a major issue, esp when Richard was buying. It will be interesting to see how the shares move hands over the coming days.
Added 30k on Thursday. Trading update this month, with the company continuing to "work on a number of fronts".
J O Hambro literally just bought themselves a big portion of the cake: https://www.johcm.com/uk/about-us J O Hambro Capital Management (JOHCM) is an active investment company regulated by the UK�s Financial Conduct Authority (FCA). From our investment offices in London, Singapore, New York and Boston, we manage �31.1 billion of assets across a range of award-winning equity funds and segregated portfolios, with expertise in UK, US, European, Asia ex Japan, Japanese, Global/International and Emerging Markets Equities.