Member Info for Pharmhall

The way FARN has gone about this (announcing a Rights Issue without giving terms) is very bizarre, but that is what company (and Advisers) have done. IMHO, the debate about "low rights price" is irrelevant. The EGM has been called to approve the issue of up to 80m shares and the desire to raise €40m. Therefore the price would need to be €0.5/43.5p. There are 120m shares in issue, therefore it would need to be 2-for-3 at €0.5 . If the price were any lower, the company would have to issue more than 80m shares , which it will not have the Authority to do, so cannot happen. Given the share price reaction – effectively going ex-rights immediately – it might be able to get it away somewhere between 43.5p and 54.5p, but this will only be tweaking at the edges. For example, at 50p it would need to issue 70m shares on a 7-for-12 basis to raise €40m.

IMO what is difficult to foresee is, on a successful right issue, what will get the share price to go back up towards the pre-announcement share price. But that is another debate. Seems that value has been destroyed over this rights issue.

Agreed, while trying to give a gentle hint about future to market, remember the CEO did not participate at all in the last funding at 9.5p, and this purchase is for only $9k, for a man that earns >$500k (cash) a year from RENX. A cynic might say that he is trying to provide some modest support now and save his fire power for another capital increase before mid-year at a deeply-discounted price. Institutions are still furious at what RENX did last September and losing >50% of their money, so it would need to be very heavily discounted to get their support again.

Hi JL, RM et al., It's been a really good day so far! Excellent interims from Ensilica (ENSI) and comfortable with FY forecasts; more good orders for Hardide (HDD) and Shearwater (SWG); and, a potential offer for CYAN (albeit indications are far too low). While I love Filtronic (FTC), I simply cannot get my head around its forecast P/E (47x 2027E EPS), so have missed the last 40p, but that's life and I was happy with my profits, I'll keep watching and waiting for it to fall back. All this on the back of good recovery in the miners. As for MSI, I still think its a sideways mover or drifter in the absence of news, so again, will watch and wait. Good wishes to all.

Really good set of results. Tribulations of 1H'25clearly behind the group and consistent EBITDA growth expected half-on-half from here. Management clearly OK with exceptional FY 2026 sales growth, after which I expect it to settle nearer to 15-20% for FY'27 and beyond. I bought into the story a little too early, but it now beginning to bear fruit.

A quick look at the Share Premium account and the Accumulated losses, suggests that around £80m has been invested into CYAN to get it where it is today. On the cusp of profitability, why sell at less than 50% of capital invested?

Agreed...far too low IMHO. JC would be selling most if his shares at a loss. Esyasoft being very opportunistic. I need to research, but it would be interesting to know how much capital has been invested to get CYAN where it is today....my feeling is far more than £35m. I'll check and revert.

RM, JL....I have been watching ASAI for about six months. Despite being main market, it is difficult to find much information beyond RNS announcements. Strong trading update today suggests it is trading on P/E of about 5x, falling to 4x in 2025 and pays a 4% yield. Only issue for me is the need to accept that its loan book (strong) is in less developed countries. (I've done a post on ASAI board)

Really strong trading update from ASAI, net profit expected to double to $57m , giving EPS of 56cents (42.5p), leaving it trading on a P/E of 5x, falling to 4x in 2026. Good loan book with few defaults. Only issue is that an an investor you need to accept that it is trading in less well developed countries. It has a main market listing which provides some comfort. One top tuck away IMHO.

Hi RM....I, too, have been in COST for years and it has moved from big losses to big gains. I am sure you are right that 200p will be comfortably seen in 2026 and, if it continues to deliver and ups its dividend, could even see 250p. But this stock also highlights another point and is one of the reasons that I love investing, and not using professionals. 1H for COST was slightly disappointing, causing it to fall 35p, but company was confident in FY forecasts. So when it came to last week's FY trading update, I was not surprised that it was "good" with the added benefit of sorting out its pension liabilities. I am seeing this trend (i.e. market not taking on board the weak 1H vs strong 2H performance and hitting FY targets) with several companies that the professional just don't seem to understand – e.g. MKS, WISE, AT., ELCO to name a few. So knowing when trading statements are due is really important and can result in some good short-term gains. Happy investing!

Hi RM...I took advantage of the rise in gold price yesterday to sell the TKO shares I bought on 4 Sept, +134%...happy days. I still have plenty of exposure to miners and metals and am leaving others to run. With TKO, I just do not like all the directors are consistently exercising options and then selling them all in the market. Leaves a bad taste when they do not keep some of them.

JL, RM...Mentioned about six months ago, did you see trading update from ELIX today? I have posted comment on ELIX board. Super company growing EPS at 20%+. Trading on 12x forecast 2026 EPS, it is not expensive at all; and I think Cavendish forecasts, especially for 2027, are too low!

One of my favourites, ELIX issued an excellent FY trading update today, with sales +34% (est +22% organic), EBITDA margin top end of 28.1-29.2% range, implying £43.6m (+39%), and strong cash generation giving net debt of -£14.1m, any £6m better than market expectations. 21% increase in dividend to 7.6p (yield 3%). Fiscal 26 has started strongly with record contracted. Target to be in the FTSE250 by the end of this year, which will cause big purchasing by index funds. An absolute core holding IMHO.

Jl...while I agree with everything you say and MSI is a great long-term play, in the short-term momentum is against it. The main reason is the uninspiring quote about lumpy Defence performance, from the CEO in the IC article, which may last up to another 12 months. IMHO this will cause the shares to continue to drift in the absence of newsflow or an M&A deal. Given that, historically, MSI only puts out about three (!) items of new a year, I have low expectations for newsflow, so it will need an M&A announcement about disposal of non-core ops to get the shares firing again. While this could just happen tomorrow, I think it will take up to another six months given what was said in the interim statement about expanding the search out to trade buyers. Consequently, I can see the shares easily drift back to the 900p level over the next three months, at which point I would be a raging buyer.

Call me a cynic, but QQ. started the year at 442p and has risen over 20% since, much of which was in the last week. While most defence stocks have been strong this year, strange that QQ. is so strong immediately ahead of its trading update! After a weak 1H'25, the latest FY guidance was 3% CER organic sales growth, margins ca. 11%, EPS growth 15-20% (from 26.1p FY to March 2025). Looking forward to tomorrow's 3Q/9M update!

IC released an article following the numbers yesterday, which concludes that MSI is a long-term buy and trades at a big trailing P/E discount to mid-cap defence peers (CHRT, CHG); can't use forward P/E because there are no forecasts! Come on Shore Cap, pull your finger out.

However, it was this quotation that caught my eye, which in the absence of any M&A news will likely dictate the share price movement: Speaking about lumpy defence contracts: "It’s not going to be a good second half, and that might run into the first half of the following year,” managing director Michael O’Connell said. This suggests that EPS will have to be bailed out by Petrol Station Structures again.

Totally agree with you, excellent presentation. Management clearly comfortable with 2H'26, and hence FY 2026, forecasts for sales of £290m and EPS of 60p. Spoke clearly and in a very informative way. Had not realised that there had been an institutional seller which depressed shares down to 870p recently, since rebounded now fully sold out, but still really good value at current levels. Quality business.

Overall, the underlying results were better than expected (posted on Monday), tempered a little by the unforecastable derivate loss at the PBT level. However, I suspect that the market will fret about the make-up. CER Defence sales were down 7.6% vs my guestimate that they would rise 8%. Forgings were bang in-line (-10%), but it was the Petrol Station Structures that saved the day, which were up about 90% (est). MSI has confused the issue by amalgamating Branding into Petrol Stations. But all the cost lines were very much as forecast, giving underlying PBT about £1m above expectations, offset the the derivative loss. Cash position stronger than anticipated. The outlook statement is pretty good. I think the sp reaction is due to the unexpected sales breakdown.

Having posted my forecasts on Monday, I felt that, in the absence of any M&A announcement, it was difficult to see where MSI might be able to beat forecasts, given the annual report and AGM comments about timing of sales recognition. Consequently, with near 1500p on offer, I sold 2k shares and will now look to buy back in.

On M&A, not much comment, but given the strong performance of Petrol Stations, it is understandable why the BoD did not feel that the offers on the table fully reflected the value they saw in the business. and held out for a better offer. Still like it longer-term.

Good 1H'26 trading update, but I, too, noticed the minimal change to PBT. I cannot find an explanation, but note that broker Cavendish was forecasting this lower PBT margin. I think much has to do with timing of sales and cost recognition. Based on FY forecasts, 2H'26 PBT is expected to be double 1H'26, and I much prefer to look at full year performance. Order book is solid and there are several near term prospects, any of which will lead to increased forecasts. The years' of investment are really coming through now. Happy to lock this one away for the long-term.

Excellent FY update. Company is nimble and clearly has a competitive advantage over the bigger advertising players. Despite this strong performance, Cavendish is not raising 2026 forecasts at this stage, waiting to see more detail when full results are published. Even with conservative forecasts, shares are trading on a P/E

Apologies....I had a thought overnight...and re-visited the prospectus. Because TEK will be converting its $2.5m loan note at the issue price, its shareholding will vary, but not too much. So, at $4.0 per share (low-end of range), it will end up with 57.1% of the enlarged share capital; and at the high-end of $5.0, it will have 61.1%.