RE: Dab80818 Oct 2019 17:07
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 :)
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