Member Info for Hedgehog100

16 Aug 2002 7:30 am RNS Newmark Technology (NWT) Acquisition

"... Newmark, a specialist integrated security provider, is to acquire
Grosvenor Technology Limited ('Grosvenor') for a maximum consideration of up to
£6.787 million in cash. The initial consideration will be a maximum of £3.287
million with a maximum balance of £3.5 million being paid over the next 48
months subject to an earn out. ...

In the financial year ended 31 October 2001 Grosvenor's pre-tax profit
was £547,000, more than double the figure for the year 2000. Turnover in 2001
was £3.016 million compared with a 2000 figure of £2.820 million. Grosvenor
currently has assets of approximately £2 million which includes £1.2 million in
cash. Current trading remains strong with a growing world-wide market. ..."

https://www.investegate.co.uk/newmark-technology--nwt-/rns/acquisition/200208160730050538A/

With Grosvenor Technology poised to generate perhaps c. £18M. in revenue for the year ending 30.4.23 (with over half of that in the USA), this would constitute a c. six-fold increase in its annual revenue since NWT acquired it just over twenty years ago.

Clearly a very impressive growth story, and one which seems to have accelerated more recently with the expansion into North America.

It seems more than incongruous therefore that NWT's current market cap., £4.45M. at 47.5p, is less in real terms than just the initial consideration paid for GT all those year ago.

Plus of course NWT has its Safetell subsidiary as well.

But those aren't MY words Mls.

You are falsely trying to attribute words from someone else to me.

In fact, I don't think I'd ever even mentioned that c. US$9M. court claim before you did yesterday, and it's never formed part of my investment considerations here.

That said, the c. US$6M. (US$5.3M. + interest) part of the c. US$15M. being claimed (though not yet in court) does look pretty clear cut, because it is simply a debt owed, which does not appear to be in dispute.

I posted this about it just over two weeks ago:-

Hedgehog100 Posted in: ZEN Posts: 2,759 Price: 0.625 Strong Buy
RE: Tilapia update 17 Feb 2023 12:36
"Paul,
The best solution may be a negotiated settlement and compromise.
Congo will know that the monies are owed, and if they act 'above the law' it won't help foreign investment into the country.
Either way though, ZEN has more than enough going for it elsewhere, so the Congo issue is now really just a distraction."

And MarketGunslinger the said this about the c. US$6M. later that same day:-

MarketGunslinger Posts: 700 Price: 0.625 No Opinion
RE: zen 17 Feb '23
"I don’t see that there is going to be any issue with collecting the money owed from the SNPC as there has never been any argument that it was not actually owed. In my opinion, the reason that it has been delayed is because it was always assumed by everyone (Zenith and the Congolese) that it would just disappear when the license was granted – ie the exact figure that was owed to Zenith would be the amount of money that the government charged as the signing bonus when the license was granted.
Now that the license has been given to somebody else the money is still owed and it will have to be paid. If Zenith have no luck in the local courts (they may not even bother going there) then they will just take it to an international court and will win the case there. Obviously, it would be better to get it settled amicably first but this is only because it would be a quicker process than going via international courts. This money will definitely have to be paid, it is just a matter of how long it will take to get it."

I haven't said that it is, so please don't say that I've said things I haven't.

No one's even mentioned the court case today: I was just addressing this bizarre and silly nonsense about ZEN being a binary bet. How unsurprising that you should defend that bizarre and silly nonsense ...

I course I haven't said that no element of ZEN's business has any degree of uncertainty: no share on the London Stock Exchange can say that, but most of them aren't binary bets, are they.

And who's investing here on the basis of the court claim anyway?

Not me, or anyone who's been posting here that I can see.

NWT certainly believe that the USA could deliver a real step change in the Group's business:-

10 Sep 2021 7:00 am RNS Final Results

"... The future

In 2021, we have invested in our business, bolstered our strategy and built the momentum we need to push for growth in the year ahead.

Although we expect to see some progress in Access Control, and the business is in a good place, the biggest opportunities are likely to come in our HCM businesses. We have ambitious growth plans in the UK and the EU, where we have onboarded new clients, with more good prospects lined up.

However, the real step change for Grosvenor Technology could come in the US, where we will grow our business with existing partners and look to onboard new Tier 1 clients with a compelling offering that encompasses a combination of market-leading technology, products and services. ..."

https://www.investegate.co.uk/newmark-security-plc/rns/final-results/202109100700053342L/

As I said recently, NWT's USA expansion has all occurred since Marie-Claire Dwek took over as CEO in 2013, and that is where NWT'S biggest and most exciting upside lies, so you have to give her a lot of credit for that.

It was a bold strategic move to expand into America, and one which was the function of a clear long term vision, requiring enormous time, effort, and resources.

But this is clearly now paying rich dividends, with the company in a most enviable and exciting growth trajectory position in the world's largest economy.

You also clearly don't know what the phrase "binary bet" means, Beardozer.

A binary bet is an 'all-or-nothing' gamble on one uncertain outcome.

ZEN in contract has multiple projects in different countries, with large turnover and a pre-tax profit underpinning the current share price.

So it doesn't fulfil either of the main binary bet criteria, i.e. concentration or uncertainty.

A better description would be that ZEN is an investment with the upside of a binary bet, but without the downside and risk.

"Can't argue with you except a new 52 week low would indicate there are problems with ZEN which the Management have failed to address. And "fundamental analysis" is largely based on unrealised hopes."

Beardozer,

You're completely wrong on both points.

The low stems from one project disappointment only, in Congo, which has no impact on ZEN's cashflow. That's very clearly stated in the relevant RNS, so would you please stop posting false information.

And ZEN's large, multi-million pound revenues, with an interim pre-tax profit, was reflected in its fundraising discount of just a few per cent to the pre-existing s.p.
Companies without revenues, &/or haemorrhaging cash, are finding it far less easy to raise funds.

I would add that considering new 52 week lows/highs have their place, but it's just one piece of technical analysis info. to be set alongside all other technical analysis, and of course fundamental analysis.

I think that the fundraising has set a rough bottom, which is higher than the current s.p., and that there should be little appetite for selling at this level when the near term outlook looks so exciting, with multiple bullish s.p. catalysts to be expected quite soon.

And technically, you have to consider how much 'life' there is left in a chart direction, and whether it is getting over-stretched.

Well Beardozer,

A major reason is the institutional investment RNS this week.

28th Feb 2023 7:00 am RNS Institutional investment in Zenith
https://www.lse.co.uk/rns/ZEN/institutional-investment-in-zenith-443cyzkax6xzhbk.html

So about half a million pounds of additional ZEN director share buying just made.

With about £149K. of that from ZEN's chief financial officer, a profession which tends to be quite financially cautious and conservative.

In fact, I can't off hand remember a bigger CFO share buy than that: indeed it's not unusual for them to restrict themselves to a buy of a few/several thousand pounds, if indeed they buy at all.

So that has to be seen as the strongest of strong buy signals.

Allied to which the company is now cashed up to move full steam ahead on multiple project fronts.

ZEN has large revenues, which have grown explosively, and reported a first half interim pre-tax profit, though the profit isn't yet huge, so there's no inconsistency with that and the need to raise significant project finance, which was to be expected.

That's the very antithesis of a 'dead loss' on a business level, but I would agree that this has yet to be reflected in the s.p., which creates a buying opportunity.

I would expect a very busy period of ZEN newsflow over the next few weeks.

The big one should be Benin: nearly two months now since ZEN announced a three month exclusivity agreement to negotiate and finalise a production sharing contract here, and the first in the 'use of proceeds' list in Tuesday's institutional investment RNS was this:-

" Negotiation and planned finalisation of a Production Sharing Contract for Block 1, Sèmè oilfield in Benin "

So this looks to be well on course, and I think that we're now entering the 'sweet spot' where positive news on this could drop at any time.

The award of a PSC here would certainly justify a doubled s.p. to a penny or so from this lowly level.
Or am I being too pessimistic?!

Grosvenor Technology, branded as GT Clocks in America, has just moved to a new American HQ.

It looks to have located its new US HQ shrewdly, avoiding the most expensive locations, but with top-notch accessibility.

And the trebling of space further supports NWT's vision of trebling Group revenues:-

"GT Clocks Powers Up with Strategic Office Move

Colin Leatherbarrow
Managing Director

3 February 2023 1 min read

GT Clocks Soars to New Heights with its new Florida Headquarters: In-House Fulfillment, Total Control, and a Growing Team at the Ready

Get ready for GT Clocks’ game-changing move to its brand-new Florida headquarters! Located in Cooper City and accessible from both Fort Lauderdale and Miami airports, this state-of-the-art office boasts three times the space of its previous location. With in-house warehousing and customer order fulfilment now at the team’s fingertips, they’ll have full control over operations and delivery. And that’s not all – new team members are joining the GT team to keep up with growing customer demand and the exciting expansion of their product offerings.

Brian Hack, VP of Operations, commented:

“With demand reaching new heights, our brand-new headquarters will power us to even greater success. By taking control of our operations, we’ll have an eagle-eye view of fulfilment, guaranteeing fast delivery and the unparalleled level of service our customers know and love. This is a pivotal moment in our growth journey, and we can’t wait to see what the future holds.”

With decades of hands-on experience, our cutting-edge technology is developed and distributed from our UK headquarters and supported by our Florida office and teams worldwide. Our unparalleled expertise in the field allows us to continually revolutionize the industry with innovative hardware and software that prepares you for today and the future. Trust us to deliver responsive customer support, in multiple languages and across all time zones, as we help you manage your human capital and secure your assets on a global scale.

Unlock the full potential of your workforce and safeguard your success with GT Clocks – a global leader in human capital management (HCM) solutions and access control. Explore the full range of products and services from GT here."

https://gtclocks.com/insights/gt-clocks-powers-up-with-strategic-office-move/

GT looks well on course to exceed £10M. in North American HCM revenues in its current year, ending 30.4.23, with perhaps c. £18M. total GT revenue.

With NWT's Safetell subsidiary revenues adding a further c. £4.5 - £5M., to give perhaps c. £22.5 - £23M. of NWT Group revenues for the year ending 30.4.23.

So a trebling of NWT's North American revenues would constitute a step change in the Group's overall business.

dab808 Posts: 118 Price: 45.00 Strong Buy
AGM (part 1) Today 11:10
" ... Questioned around the 2 to 3 x revenue in the next 3-5 years. Marie-Claire stood by this statement in the AGM and repeated it in the Proactive presentation. ..."

From NWT's current revenue level of c. £20M. p.a., this would to c. £40M. - £60M. p.a. in the next 3 - 5 years.

This sounds quite a tall order, though in actual fact, annual revenue growth of just over 24% p.a. for five years, compounded, results in a trebling of annual revenue.

And Paycor HCM (NASDAQ: PYCR), Grosvenor Technology's largest North American partner, recently reported Q2 29%year-over-year revenue growth:-

"Paycor Announces Second Quarter Fiscal Year 2023 Financial Results

February 8, 2023 at 4:15 PM EST

• Q2 Total revenues of $132.9 million, an increase of 29% year-over-year, while expanding margins

• Q2 Recurring revenue of $125.0 million, an increase of 22% year-over-year, and the fifth consecutive quarter of achieving our long-term target of sustainable 20%+ revenue growth

• Raises FY’23 revenue and Adjusted operating income guidance $11 million and $10 million, respectively, year-over-year at the top end of the range ..."

https://investors.paycor.com/news-releases/news-release-details/paycor-announces-second-quarter-fiscal-year-2023-financial

With Paycor's sales growing like gangbusters, its important hardware partner (& NWT subsidiary) Grosvenor Technology should see its own sales continuing to arise in tandem.

A bit like in "Bagpuss", but in this case we should rather be 'bagging a purse'!

"And when Bagpuss wakes up all his friends wake up too"
http://www.smallfilms.co.uk/bagpuss/intro.htm

"Insights | Human Capital Management
Paycor & Grosvenor Technology: A Powerful Pair
Paycor’s Product Manager, David Goodwin, explains why they selected Grosvenor Technology as their hardware provider
“ ... The Grosvenor Technology team is an amazing partner. The collaboration and communication as we worked on the development of our software was great. ...” ..."
http://www.grosvenortechnology.com/insights/paycor-grosvenor-technology-a-powerful-pair/

Also,

Could you please explain why this poster has been banned from LSE, and all their posts deleted, if they were such a wonderful poster?

And contrary to what you are saying, I believe that he actually only started attacking ZEN a couple of years after if floated in early 2017, when it's s.p. has already collapsed by about three quarter from its highs.

So perhaps he wasn't quite the prescient 'guardian angel' that you are making out ...

"Yeah,he used to warn people and i presume after his GGP/ARB fortune is sitting in the lap of luxury ... "

Kam,

Did he also warn people about GGP, which collapsed nearly 99%, from 4p in 2011 to about 0.05p in 2016.

Before subsequently more than 700-bagging to over 35p in 2021?

Thanks and well done on that excellent write up, Dab.

It certainly underpins my confidence here, and should for any sensible investor.

A stronger H2 profit would make sense given the recent half-on-half trend, and if it's much stronger so much the better.
This could/should mean full year eps in double figures, for NWT's financial year that ends next month.

That could be an ideal time for a broker buy note on NWT, which could then be distributed to the investment press.

And I agree that more frequent RNSes with positive business news would be helpful. The company used to sometimes RNS contract wins separately, but hasn't recently, instead just leaving it to the results statement and presentation.
Ideally you don't want to be going a few or several months without news, and with the company now on the up there's far less excuse for not doing so.

Considering the headwinds faced the company is doing brilliantly, and as as those headwinds diminish the performance could become spectacular.
I always feel that if you buy a share that is doing well in challenging times, then in the good times it should be even better.

It's also good to know that some sort of USA fundraising should be seriously considered, and hopefully we will hear more on this is due course.

28th Feb 2023 7:00 am RNS Institutional investment in Zenith
https://www.lse.co.uk/rns/ZEN/institutional-investment-in-zenith-443cyzkax6xzhbk.html

So about half a million pounds of additional ZEN director share buying just made.

With about £149K. of that from ZEN's chief financial officer, a profession which tends to be quite financially cautious and conservative.

In fact, I can't off hand remember a bigger CFO share buy than that: indeed it's not unusual for them to restrict themselves to a buy of a few/several thousand pounds, if indeed they buy at all.

So that has to be seen as the strongest of strong buy signals.

Allied to which the company is now cashed up to move full steam ahead on multiple project fronts.

ZEN has large revenues, and reported a first half interim pre-tax profit, though the profit isn't yet huge, so there's no inconsistency with that and the need to raise significant project finance, which was to be expected.

At current exchange rates, ZEN's CEO has just invested the equivalent of a further c. £348K. into ZEN.

And ZEN's CFO has just invested the equivalent of c. £149K. into ZEN, which is his initial investment.

28th Feb 2023 7:00 am RNS Institutional investment in Zenith

"Zenith Energy Ltd. (LSE: ZEN; OSE: ZENA), the energy company with proven revenue generating production, exploration and development assets in Africa, the Middle East and Europe, is pleased to announce that it has completed a fundraise in the United Kingdom (the "UK Financing"), and in Norway (the "Norwegian Financing", collectively, the "Financings").

The Financings have attracted the participation of existing institutional investors, including Premier Miton Investors, as well as Directors and employees of the Company, to raise an aggregate total amount of approximately £2,300,000 or NOK 28,484,580, resulting in the issuance of 437,728,088 new common shares.

Issue Price

The issue price of the Financings was £0.0054 for the UK Financing and NOK 0.067 for the Norwegian Financing.

Use of Proceeds

The proceeds of the Financings will be used to provide additional funding for the following:

• Negotiation and planned finalisation of a Production Sharing Contract for Block 1, Sèmè oilfield in Benin

• Technical and managerial appointments in view of planned operations in Yemen

• Additional funding for the development of Zenith's Tunisian oil and Italian natural gas production portfolio

• Business development activities in Africa and the Middle East

• General working capital ...

The Company has issued 113,679,538 share purchase warrants exercisable at a price NOK 0.094 for a duration of 3 years from the date of issue in connection with the Norwegian Financing. ...

The Company has issued 13,888,889 share purchase warrants exercisable at a price £0.0076 for a duration of 3 years from the date of issue in connection with the UK Financing. ...

Director Dealing/ PDMR Shareholding

Mr. Andrea Cattaneo, Chief Executive Officer & President of Zenith, has subscribed for 64,695,672 common shares of no-par value in the capital of the Company in connection with the Norwegian Financing.

Upon the Norwegian Financing Admission, Mr. Cattaneo will be directly beneficially interested in a total of 167,163,912 Common Shares in the capital of the Company, representing 7.24% percent of the total issued and outstanding common share capital of the Company.

Mr. Luca Benedetto, Chief Financial Officer of Zenith has subscribed for 27,726,716 common shares of no-par value in the capital of the Company in connection with the Norwegian Financing.

Upon the Norwegian Financing Admission, Mr. Benedetto will be directly beneficially interested in a total of 27,726,716 common shares in the capital of the Company, representing 1.20% percent of the total issued and outstanding common share capital of the Company. ..."

https://www.lse.co.uk/rns/ZEN/institutional-invest

Well done and thanks on that excellent work MG.

I think that anyone reading those transcripts should be imbued with huge confidence in ZEN's future, especially in light of today's institutional investment into ZEN.

It's easy to overlook ZEN's Italian business with all the excitement over Benin and Yemen, but this is a timely reminder of what great, low-risk potential this has.

I was certainly interested to learn that Italy is only producing 10% of the gas it did ten years ago.
Considering the country's significant gas reserves, it looks like there is huge scope to increasing this significantly, and with ZEN playing a leading role in this.

And as an Italian company with management management, in this case at least any advantage to natives of the country will work for ZEN, rather than against it!

28th Feb 2023 11:45 am RNS Result of AGM

Newmark Security plc (AIM: NWT), a leading provider of electronic and physical security systems, announces that at the Company's annual general meeting ("AGM"), held earlier today, all resolutions were duly passed. The proxy votes received from shareholders on each resolution are set out below. ...

https://www.lse.co.uk/rns/NWT/result-of-agm-pb9aedzdblct1f6.html

28th Feb 2023 7:00 am RNS AGM Statement

Newmark Security plc (AIM: NWT), a leading provider of electronic and physical security systems, will hold its Annual General Meeting ("AGM") today at 10:30 am (UK).

At the AGM, Maurice Dwek, Newmark Chairman, will make the following statement:

"The Board is pleased with the Group's return to profitability in the year to date. The Company entered FY23 with a strong sales pipeline driven by high-margin recurring income in the human capital management business.

"As we focus on the optimum product solutions to meet today's market demand, we are expanding our offering globally. We will continue select investments in product development and new workplace ecosystems to remain ahead of the market, increase the share of existing clients' wallets and tap into new markets where we see commercial opportunities.

"We are pleased with our business development in the UK market, where we have gained blue-chip clients and kept expanding our client base. With a strong balance sheet, adequate finance and an efficient organisational structure, we are well placed to continue growing, returning shareholder value".

For further information:

Newmark Security Plc
Marie-Claire Dwek, Chief Executive Officer Paul Campbell-White, Chief Financial Officer
Tel: +44 (0) 20 7355 0070
www.newmarksecurity.com

Allenby Capital Limited (Nominated Adviser and Broker)
Tel: +44 (0) 20 3328 5656
James Reeve / Lauren Wright (Corporate Finance)
Amrit Nahal (Sales & Broking)

About Newmark Security plc

Newmark is a leading provider of electronic, software and physical security systems that helps organisations protect human capital and provide safe spaces seamlessly and securely.

From our locations in the UK and US, we operate through subsidiary businesses positioned in specialist, high-growth markets.

We foster an open and inclusive work environment amongst our c.100 employees, serving hundreds of blue-chip customers.

Our product portfolio consists of Human Capital Management and Access Control Systems providing both hardware and software and Physical Security, installations and maintenance to various sectors.

Newmark Security plc is admitted to trading on AIM (AIM: NWT).

For more information, please visit: www.newmarksecurity.com

https://www.lse.co.uk/rns/NWT/agm-statement-v3n9d3iexwx5sw4.html

"I also note that NWT's new investor presentation still is on their website"

That should of course say still ISN'T on their website.