The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Interesting movement in ownership here, THALASSA HOLDINGS LTD have been building their stake, now holding 10.21%. We now have the concert party update where Michel Rapoport has purchased 35.5m shares and now holds 12.49% (previously he held 3.7%). The overall concert holding is now 33.35% and creates a potential offer scenario to all shareholders should they wish to purchase more shares. The total holding of the concert was below 30% prior.
So, this is a situation I’ve not been in before. Any views on how the situation might play out?
Presenting and exhibiting at Https://melloevents.com/event-mlexhib/
I can't make it to the show but it can only help the price this week.
I expect the presentation will be filmed, I'll see if we can get a link. If not I'll ask Marie Claire for a copy of any slides they use.
Got a mention today. Broken 3yr trend line. Recovery to 1.5p is the word.
https://www.share-talk.com/share-talk-bulletin-board-heroes-wednesday-6th-november-2019/
So, a good AGM today, there were 5 shareholders present to the 5 management team.
After going through all the resolutions, the meeting was opened up to questions. I and one other shareholder (robin I think he was called) raised all of the questions:
First question was are we considering a share consolidation 1:10 , 1:100 to make the share price look more reasonable - answer - at has been something that had been considered but not seriously as there have been more pressing business issues of getting the business back on the straight and narrow. It might be reconsidered (although I got the impression if it were to cost too much it would be off the table - cost was a good focus of the team).
So what is the plan - are we investing or are we slow and steady? - answer - With Graham on-board Marie Clair is now looking at the right opportunities, sensible acquisitions might be an option. R&D investment will continue but lower, growth in clocks around workforce management, growth in US absolutely.
The acquisition question raised a point around dilution if raising money by share issues, which was ruled out, any investment would be by debt considering the current share price which everyone agreed is undervalued. That said there was a resolution that allows 9.9% issuance of new shares without seeking approval from shareholders, that could dilute.
We discussed the different businesses, safetel is making money but is not a big growth play, the focus is on the electronics division. Clocks is a good money earner and, Marie Claire indicated that there will be good growth in the UK.
Graham was asked about his initiation and what he's focused on, what's his 100 days looks like, he didn't go into too much detail, he's been looking at the business structure and getting out across the country. He was asked if he is incentivised through LTIPs, he let slip the amount of options he has which I won't publish here, take it that he has a good amount of options if particular financials are hit - this is a good sign IMO.
Forecasting and more shareholder information was discussed. We wanted to know more about the companies markets and targets, key metrics and dividends. Marie Claire, positioned the IR and shareholder comms as the minimum it has needed to be whilst the company has been going through the transformation back into profit. She is going to look at this area again moving forward. She invited shareholders to pick up the phone and talk to her if they want to know more in the meantime.
In summary it had a reasonably good feel to the meeting, a corner turned and the impression that the recent uptrend in sales and therefore profit is continuing. They can't say anything definite but there were smiles and Maurice who obviously has a lot at stake seemed relaxed.
Hope this helps, will likely buy more although timing is everything :)
I'm suprised no announcement on the reid position riddler but an announcement today is a stakebuild.
I've got no idea where the market makers have got the stock from for all negotiated trades that have gone through in the last couple of weeks.
Maybe time will tell.
I can't answer your questions right now but I'll pick up anything I cannot establish in the meantime at the AGM in a couple of weeks. If there are specific questions for the AGM let me know.
I had a call with the CEO last week. Claire obviously couldn't disclose anything material but she explained how revenue growth from workforce management was a key driver and that the US was continuing its trajectory in terms of growth.
All business will add to the bottom line and she is very existed at the appointment of the new CFO. Brian the existing CFO has been at the business for 20 years and it is an opportunity for a new perspective.
I made the point that we, investors need more communication, the fact she'd speak with me is a good sign, the investors website is being revamped (at low cost), I also pointed out that shareholders need a return through an increasing share price or dividend. Management cannot just be taking the lions share whilst we make nothing, she understood the point I was making.
I added again and am now at 4.6m shares, just short of 1%.
The new report is on the website Rob. https://www.newmarksecurity.com/wp-content/uploads/2019/09/172598-Newmark-Annual-Report-As-Printed.pdf
I believe we will get a notification of the Reid family selling down again shortly. I expect that is the reason why this has not gone up. The report shows the US is flying and where all the growth is coming from. Whilst it is difficult to read into the detail I believe a lot of income is now licence based and re-occurring. I now have 4.1m shares and will be attending the AGM to ask more detailed questions about the income and growth plans. Directors remuneration is up but nothing for shareholders, again I will be asking what are the plans.
Results should be out shortly. I am expecting good things if the 1/2 year trend continues and I'd expect a 0.025p -0.05p dividend to be announced to keep the family and large shareholders happy. Profit would need to be around £0.75m or aboce as cash reserves have been hit over the last 2 years. Great that no signficiant debt has been needed. Purchased another 125k shares today. Now back up to 3.875m shares so holding is strong ahead of a re-rating to 1.5p - IMO DYOR
I'd set a sale for 500,000 shares at 1.25 that went through today. Kind of wish I'd gone higher but I'll take a profit which I am now very much in. Have just pulled the 1.5 order for another 250,000 shares, need to sit on my hands......
The AGM is going to be at the Radison Blu in Portman as on the 30th October @ 11am. Unfortunately I am in the States so cannot attend. I have asked whether there are any plans for an investor road show or spotlight in the future.
Harhoo, I hope you are right. I have been invested here since 2002. I've increased and decreased my stake and currently hold 4m shares. Fortunately I was in big before the post office sceens deal but just before that, their 'big idea' a paint loaded carry case was a complete flop. I managed to sell most shares between 2-4p but have never dropped below 1m shares. Dates being willing I will be attending the AGM. The management need to see the whites of investors eyes. I like their business but they are yet to drive significant income growth without the boom bust on profit. I am really interested and have many questions as to re-occuring licence fee income on the access software and how the distribution deals are bedding in. They need to do a proper investor road show at some point. I'd also like to see a proper management profit scheme shares based that would significantly reward the team if we doubled income and got us to £2m and then £4m profit.
After waiting and waiting I emailed Hazel at Newmark yesterday to find out where are results are. Announcement next week she informed me. So there you go, we should find out whether things have been stabilised or are still a bit of a mess. I hope it's the former. I'm in big on this one......