Member Info for daniscp1906

Indeed. Curious to see who took this big block of shares. The 5m sell on Friday was taken by Peel Hunt, can't see them taking another big block. Fingers crossed its one of Gatemore or SandGrove and they start shaking things up.

@cl2201, I came to the same conclusion unfortunately. Although they had a chunk of shares bought at 95p in Nov 2021 (~25% of their holding), not sure what the cost basis of the remaining was. Under the emergency financing, exercising warrants, they could bring it down but would still be in the red unless this recovers a lot.

The implicit equity valuation implied by this criminal emergency loan package is ~18p per share (for the £6m loan) and ~25p per share (for the additional £5m). I.e. this is the level of value that the entity loaning the amount is indifferent between receiving the 25% premium to the loan amount, or converting it to equity and selling it at the open market.

If this was in the USA there would have already been a series of class legal actions filed against the Company after the announcement.

They've historically been vocal about Management not maximising value of Sensyne and were the ones that pushed for the Nasdaq Secondary Listing to be analysed. This when the share price was at £1.40 in July 2021.

Roll-forward 6 months, share price at 20p, surprisingly sitting quietly on the sidelines up to now. Poor from a self labelled "Activist Investor" holding 5% of the share capital here.

The problem I have with ITV Management is there is a lot of talk about re-pivoting the business from Broadcasting to ITV Studios but no real progress when it comes to financials (its been a constant 40/60 revenue split between Studios/Broadcasting for various years now).

Plus, if that is the real strategy, what they really should be showcasing in all presentations is the difference in transaction multiples between Production Studios and Broadcasting. ITV is valued by the market as a Broadcasting company at (~6-7x EBITDA). The recent Studio transactions such as Banijay's acquisition of Endemol Shine back in 2020 (in the middle of COVID!) are going for at least 12x EBITDA. On a blended basis ITV should really be trading at least at 9x EBITDA but Management are just doing a terrible job at advertising its core strengths to the market.

Doubt its linked to any bid, only 0.3% of Shares Outstanding

I've topped up my holding this morning at this price, just too cheap to ignore. Seems like the market doesn't really know how to value ITV in my opinion, focus is too much on the broadcasting segment (and hence advertising revenues). In reality ITV has been focusing on switching its business model from Broadcasting to Production. ITV Studios EBITDA is now about 30% of Total EBITDA for ITV and that figure will just continue to increase. Production obviously is more value accretive than Broadcasting, I think 12x multiple for Production EBITDA is probably fair and in line with other recent acquisitions in the sector. Applying that to 2019 Figure and deducting current net debt pretty much covers the market cap at the moment, so you're effectively getting the Broadcast business for "free" (which is probably worth at least 6x EBITDA).

What are they planning on doing with all this cash? Hopefully to do share buybacks with share price depressed, if not these deals just seem clueless to me. Think they ll need to announce plans soon, otherwise investors will lose faith.

Yeah I've just start analysing IP in recent weeks and did read about the Avact situation here which seems weird (albeit I can understand how they can argue they can't time all exits right but they'll need to show track record of when they timed them right!). Divestments in Ceres have also not been exactly timed right.

Happy for them to divest of stuff to showcase they can do it (and respond to prior criticisms) but don't divest on what has potential (just because its easy to divest as there's appetite in the market!!)

All depends on the price! Think its become clear in recent months that Nanopore is really a jewel, appreciate that there were concerns in the market on the valuation of Nanopore's stake (£1.6bn at 100% is chunky) given the concentration risk at IP Group's level.

I'm hoping that Management doesn't divest its stake further in Nanopore just yet (the £22m realisation a few months ago was a sign to the market that the valuation is fair and I hope that was Management's plan when doing that partial divestment, and not them thinking that IP Group investors want lower exposure to Nanopore)