They issued the bulk of these last February. I can’t remember if there was a lock in period if so looks like it has expired.
Fantastic news. I echo previous sentiments. Grateful to TB for the part he played in the rescue but disappointed in the way he conducted his exit. Gone now and retate started already. Expecting day after day of upward movement fed by steady flow of good news re debt renegotiation, shed purchase, revenue growth, admin reductions.
The MMs have decided that a 50% profit on his warrants is enough for clever Trevor.
First time we’ve seen trades below 0.05 for a while but almost all buys today.
More likely a sign that TB is continuing to sell. He hangs round the neck of the sp like a millstone. The sooner he sells up the better. His presence as a constant background seller is one of the main factors holding back the sp.
From the H1 numbers and with the forecast of fy eps of at least 2p, fy revenue should be about AUD80m, fy EBITDA AUD10m, fy earnings AUD6m. Growth H1 to H2 is about 40%. Assuming a slowing of the growth rate to ‘only’ 20% annual and with reduced pro rata costs associated with revenue increase plus savings on reduced debt plus further savings from integrating the 2 parts of the business plus further savings from buying the shed we could easily be looking at figures for fy 2018/19 of EBITDA AUD14m and earnings of AUD10m. Converting into pounds that’s EBITDA GBP8m and earnings of GBP6m. A takeover valuation of 12 times EBITDA would look cheap. That’s a MCap of GBP100m. Fully diluted is an sp of 50p.
For a TO at this MCap. Will take a few days for the slide rules to confirm the value available then expect to see some big positions being taken.
EPS is a very conservative way of reporting figures. EBITDA for current full year is looking to be around GBP 6m. That’s massive compared to current MCap. Coupled with business growing and debt reducing this is easily a GBP 75m company.
You beat me to it. Debt is at levels that are entirely in line with the business model (plant hire companies need to invest in new plant). The projected profits will reduce debt significantly. The one negative about the debt is the historical Hermes facility but I don’t see a problem in that being renegotiated to much more favourable terms with a mainstream funder with the positive fundamentals we know there will be.
Sp is at about the same level as a month ago and same level as 2 months ago during which time there has been positive noise re sales and we await formal confirmation of this which will then be reflected in a move upwards. In the background there has been a bit of a hiccup in the preparation of last years accounts which has no meaningful impact. Chill. All is looking good.
I'm with you there. Can't believe many bought in based on what last year's accounts might look like. Its 2018 sales and onward that are the atraction here.
Presto, thank you for your kind words. I have been here since pre suspension and I am very positive about the prospects for MRS. I strongly believe the sp should be multiples of where we are now. The re rate should have started after the December rns but the sp has been held back by having a large seller present. TB has already sold about 6m shares over the last 2 months and still has many more which he is probably also looking to unload. The consistent round number sells look like he is continuing to sell. As draft points out, this is good for the newcomers as they can get in at unrealistically low prices but for long term holders it is frustrating that the sp continues to be held back. I’m no doubter but I may well be a numpty....
Wave goodbye folks. There goes clever Trevor. As predicted our erstwhile Director continues to unload at knockdown prices.
50% spread. Either we are looking at a big move one way or the other or a very quiet day in prospect. Maybe the weekend has started early.
4p on the bid and no takers in sight. Another strong day in prospect.
Rock solid support at these levels though volume a bit thin. When I bought in back in December I was half expecting a top up opportunity at the OO price but that is looking increasingly unlikely now. Also the ‘good news’ RNSs have started earlier than I had expected. All very positive.
With the delayed trades from this morning we have now had about 2m of big round number sells since the last TR1 RNS. Expecting another telling us TB is now below 3% which will take him off the radar and allow the sp to move up to nearer fair value.
HL quoting me 3.655 to sell. True spread 3.65-3.75. Shouldn’t take much to get through 3.80
MMs are looking for TB’s next stop loss. This is going to carry on until he sells out. Let’s hope he is quick about it so we can then get on and re rate without a huge seller looming over us.