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On 17th February Investors Chronicle (there being no option of tendering shares back to the company at a price nearer NAV ) advised smaller shareholders to sell at what Simon Thompson said was an artificially depressed price, or take the Hobson's choice of holding shares in an unlisted company for 5 years. The company proposes pricing shares at NAV for scheduled returns. Thompson gave his estimate spot NAV as £1.03. If he was correct, then today, with Ide's rather strange ( I think ) downwards movement on what is MXCP's last day of H1, it now stands at £1.

A mite late with that holdings RNS in my view, with Smith just having to inform himself. One would expect it the same day or the next. There was not much reason for him to buy a few shares from the cash he took from the tender offer, but looking only at insider deals listed on this site, it appears it might have been in the interests of one or two of the others to average down on their last purchases.

It is in my judgment a question of operation in a less-regulated environment, substantially locked in, with little information, balanced against returns at net asset value as investments reach maturity and are sold off, hopefully at a further premium to current book value. On that basis alone, the shares are currently trading at about half the minimum sale value and return over the period. Although far from ideal for some, others may view it as an opportunity, particularly at this price.

Mention of revenue earlier. CloudCoCo generated revenue of £1.02m. over 11 months to 31st August 2019, a start-up moving quickly from loss to profit-making during that short period. The combination on a very bad year for Adept4 means growing out of historic base revenue of something in excess of £8.3m., with the benefit of cost and other synergies. "There are significant opportunities to improve performance by increasing customer satisfaction through improved customer service, combining CloudCoCo's proven and experienced salesforce with our existing operations. This will enable more sales to the existing customer base as well as driving new customer sales, and this is already being evidenced by new business wins and a growing sales pipeline. We can now look forward with renewed confidence."

IDE is a work in progress, as everyone knows. I have recently taken a small position, much for interest to follow with MXCP delisting. These rises do not always stick, but I believe the time will come when when they will. With their large shareholding and loan notes ( the Íde debt ) MXCP will be pulling out all the stops to make the very best of the company over up to 5 years, readying it for sale. I anticipated, and it might yet happen, that some of the pi's not wishing to stay with a private MXCP, may also buy in.

Apologies. I now see your earlier post and you have already sold.

I post as I see it. Others may do so. Perhaps you will decide to sell and have done with it.

This was always likely to be a finite investment - it would cease on Smith and Wheeler retirement, whereupon they and the concert party extract their original cash and profit. The same will apply to the rest of us. It is anticipated investments held in about 5 years time will be at the top for them, or become so during the next 5 years. This is a way out for them. There is more to it, but generally investors will see returns based on NAV over time, and cash at the end. Also a matching facility. Return should be far greater than now - we are well below NAV. I regard this as a nuisance - but in my view panic selling based on this substantial change is not the answer. Indeed, there appears to be money to be made ( certainly from here )if one is prepared to hold and go through the motions, as management will have to - as I indicated before, NAV is substantially higher. The business itself is the same today as yesterday. This comes as a surprise, but I shall work with it with a view to ultimate profit, as the concert party are doing.

An observation only. MXCP has dropped back to approaching the price at share consolidation in February 2019. In May 2019, the company reported a NAV of 97p per share at 28th. February. Ide then stood at 1.55p, and Adept4 at 0.9p. If matters are proceeding as planned as investors here will have banked on, then reported NAV should not prove to be less at half year end this month. Investors Chronicle previously optimistically suggested a premium to NAV. Pending update here I sense that investors may be watching the fall of the two listed companies from their inflated high prices, rather than considering the business progress being made over the year within Ide and potentially whatever Cloudcoco may eventually show by combining it's reselling business with Adept4. Great effort is going into Íde, and something had to be done with Adept4, so it was. But the eventual aim is to secure exit from both companies, to concentrate on the substantial existing and future private investments and fee-paying relationships. I cannot know, but postulate that MXCP may be trading at a discount of around 30% to NAV., but the true position will only come with results.

In the absence of anything else from the company, and whatever the reason for selling, these ongoing trades and the Long Path holdings at least indicate that those better placed to make enquiries see value at this price and higher. Let us hope their judgment is sound, and that the suggested material improvement materialises at year end. My take on that is, with its established position in the social housing market, Castleton will make quite considerable ground when the providers start making decisions on the larger public/private cloud solution contracts. ie not so much if, as when. And in the meantime, there are the lesser though important stand alone products, such as Castleton Community.

Not in time for the AGM though.

"The Board believes that the value of this division is not fully reflected in MXC's NAV and hence, as we announced in September 2019, we are looking to separate it from the broader MXC Group. We hope to announce further plans regarding this demerger in the new year."

I am invested here through MXCP. It seems to me that though many would have liked to see immediate news, there is no great rush for that as far as the company is concerned. The share price will settle, I think at this level, and if nothing before there will be update and results in Spring. On what I read, there will be increasing revenue. MXCP has provided a working capital facility, and must be content that in due course profitability will permit repayment of the loan notes as the company build its customer base.

I take it Ide is of the view there has been insufficient substantive change to require notification, and the MXCP RNS is a flavour for MXCP shareholders. I have no direct current interest in Ide, but indirectly through MXCP to achieve some tech diversification through their investee companies. There looks to be a way to go with Íde in controlling costs, and stabilisation and growth of a profitable customer base, but we are told progress is being made. It is a turnaround work in progress, with as you say, MXCP stating confidence in their ability over time to ready the company for their exit (presumably by sale, and possibly to MXLG)

In the interest of updating reports on MXCP/Íde, extract from MXCP results 3rd.December.

The path to recovery for IDE has been a long and difficult one and at times it felt like one step forwards, two steps back. Nonetheless the teams within the business, both executive and operational, have worked wonders and they now have a good platform from which to grow. The business was refinanced at the beginning of 2019 by the issue of £10.0 million secured loan notes. MXC now holds £8.0 million of these loan notes plus accrued interest, alongside 43.1 per cent. of the equity of IDE. The refinancing means that IDE now has secure, long term funding and no external third-party debt as the loan notes are held solely by shareholders. Whilst there remain challenges, in recent times IDE has moved into positive territory by beginning to win significant renewals and new contracts, testament to the will, enthusiasm and dedication to customer service from the operational team. There still exists a general level of customer churn in IDE which has impacted current year revenue and profitability, but this continues to be addressed and once this ceases, we anticipate the business will have turned the corner and should achieve market levels of profitability, which it is more than capable of delivering.
We remain confident that we will see a complete return of our capital from IDE.

'It is the intention of the Company to continue this theme in the forthcoming years, rewarding loyal shareholders with a dividend-like payment whilst also enabling other investors to exit in whole or in part either by way of the tender offer or by the EBT acquiring more shares in the market. It is expected that this will lead to further consolidation of the shareholder base so that in time, the business may look and feel more like a family office rather than a classic public company.'

My first thoughts were that 12% is enough in the EBT. Having said that, the company is intent on putting the squeeze on tradeable shares ' in forthcoming years ' through tender offers ( shares cancelled ) and the EBT, as part of their effort, alongside private investment, to increase and stabilise the ongoing share price closer to NAV. From the wording, I wonder if there is consideration of a complementary mechanism of returning cash to those not wishing to take part in a tender offer - the ' dividend like payment.' But perhaps others read it differently.

There are no surprises, with matters apparently proceeding as planned - though it seems that cost-effective possible acquisitions for MXLG are thin on the ground. The RNS is more a concerned with setting out the Mxc stall for the future, with their exits in due course from Íde and Adept ending smaller investments in quoted companies, whilst MXCP itself will remain listed affording the opportunity for investors to participate, alongside the demerged dividend paying company on the Gueernsey exchange ( further details in New Year, I imagine in time for AGM )

Subsequently, there is a probability of comment from Investors Chronicle, and a possibility of director buying.

forms 6% of the Bailiwick Investment Fund.
https://www.ravenscroftgroup.com/media/1908/bailiwick-investments-factsheet-september-2019.pdf

Should previous timing be followed, annual results and guidance can be expected at the end of this month. We may hear more about the demerger, and circular, with the AGM then being only perhaps 2 months away. Ravenscroft affairs will continue to be ticking over, particularly as they have bought 25% of the demerging company. 3 acquisitions have so far been made into MXLG, which was last reported as achieving a solid platform of monthly profitability, the clear inference being that the intended large company is coming together well ( for purchase when complete by Liberty Global ) I doubt we shall hear any more about Íde beyond their own September RNS. And Adept4 will be a matter for their new management, though I expect MXCP will express their pleasure at the Cloudcoco 'acquisition' and prospects for their investment. There has been a further notable move in the formation of Channel Islands Media Group jointly with the BIL, involving the significant sum by MXCP standards on the single acquisition of Guernsey Press.
'There is a fabulous opportunity to make the GY4U portal the go to destination for all things Guernsey. As a captive market, unlike the UK, we can create a single source for news, user specific content, loyalty schemes and of course the obvious Automotive, Housing and Jobs market. The media landscape has changed significantly in the last decade and technology has been at the heart of those changes. We are looking forward to being part of such a respected Guernsey name and helping it to further embrace technology so that it drives value for both users and investors.'
MXCP bought the business from Claverley Group, who continue to run the sister press in neighbouring Jersey.