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MXCP updating the previous holdings RNS to show the new percentage holding.

I have also yet to watch the video. I agree there is nothing very new in the results RNS, but it is pleasing to see that Dean Dickinson has his eye on costs and immediately addressed the right-sizing issue resulting from the change in market conditions. I think today's rise reflects investors acceptance that the drop was well overdone, and faith that the robust company is well placed to take advantage of the future contract prospects now presenting, and anticipated to flow through during the remainder of this financial year.

He is a lot of cash to the good, whilst still retaining his original pro-rata %age holding. A sensible move for him with the amount of personal equity he has tied up in MXCP.

Ian Smith is as entitled as other shareholders to take advantage of the tender offer. It may be interpreted as him not expecting to see shares at 116p for a while, and it would have looked worse had he sold in the normal course of events. I take it that he has considered that his sale will not be to the detriment of his remaining 15.5%. Unhelpful to the cause, but perhaps he has plans for the cash.

( continued ) The tender offer cash substantially came from the demerging company. Therefore if things continue as hitherto on advisory and arrangement fees, one can expect a perhaps 10% pa return on those 'free' shares (alongside the value increase or decrease in MXCP investee companies ) One must hold MXCP shares to get the others on the record date, whenever that is published. It will require a circular and General Meeting, so investors will have time to buy into that if they wish. Major shareholders, the concert party, will vote it through. In the meantime, I continue to hold all my shares, with prospects widening and improving for the company and wishing to take full advantage of the demerger, whilst thinking 95p is very much the lowest price I can put on the shares There may be some minimal support for the last thought from one or two only, responsible for the small intraday reversal this morning, bouncing off 97p. We shall see on that. And incidentally there was a marked turnaround at Adept4.

A few words on NAV ( with which investors and commentators are concerned, though in my view there should be a substantial element of forward valuation) This was last reported as 116p, from the previous reported NAV of 95p. I can take little account of private companies, last valued at £13.5m, but that will have changed, though if all is according to plan it should not unduly affect the NAV movement and basic calculation on the facts in the public domain. With MXCPs large investment in Íde, and a very much smaller one in Adept4, this is subject to swings, downwards since 116p which figure was at the height of the remaining two listed companies share prices. At 31st. August ( 116p NAV ) MXCP held as it does today, 172811125 shares in Íde, then valued at 7.35p, worth £12,701,617. At close today those same shares are worth £6,221,200. At 31st. August MXCP held 68066275 shares in Adept4, then valued at £2,416,352. At close today those same shares are worth £1,088,460. MXCP has purchased a further 7m shares, I suggest at 1.4p - I have excluded those as that is near enough the buy closing price today and the cash to buy them came from MXCP cash holdings, so is offset in relation to NAV. Taken together, the value of MXCP shares in Íde and Adept4 has decreased by £7,549,092. With a reduced number of 65,742,407 shares in issue following the tender offer, that amounts to a decrease of 11.48p per share from 116p, giving a NAV of 104.40p per share. Taking into account the £1.7mil from cash resources to fulfil the tender offer, that figure can be reduced by a further 2.58p per share to 101.82 per share. A snapshot in time, which I came to for my own purposes and decided to share for what it is worth. We can see the rises in Ide and Adept4 for what they were. Their prices were chased up. I think Adept4 has stabilised. But it will not be until Íde next updates/reports that we shall see what investors make of it. And I expect MXCP to report in November. Though evidently very important to MXCP, the company is not all about Íde. Perhaps there will be more information on the major 'new' buy and build MXLG, which was last said to have moved into ' a solid platform of monthly profitability.' And there is the Ravenscroft tie-up, which also gave rise to the recent joint venture with the Ravenscroft administered Bailiwick Investment Fund. Bailiwick and MXCP each invested £4.9m in the formation on 7th. August of a new private company, Channel Islands Media Group, holding 50% each, and bought Guernsey Press.

Contrary to the theme of my post before last, MXCP bought 7m shares in Adept4 last Friday. We shall see if they intend to buy sufficient to maintain 15% following BGF dilution, or whether they progress further. It does at the very least show their faith in the new management, and Adept4 prospects. It may be that the business will be taken further than the reselling position occupied by Cloudcoco, and certainly they are excellent salespeople.

Adept4 is a relatively small part of the MXCP portfolio. As a broad brush, today's 30% or so loss at Adept4 would have the effect of reducing Mxcp's market cap by less than 0.75%. That is the upside of investing in the less exciting 'fund' of MXCP companies, with the current option of investing at no additional cost in the future demerged, dividend paying transactional company.

This is not a comment on Cloudcoco future. BGF were always likely to exercise their options. And there are many remaining. From an MXCP perspective the percentage of Cloudcoco held will slowly drop. They have done well to make something out of the previously ailing Adept4 - now taken over by a sales team of resellers. It is only my opinion, but I do not think MXCP will be overly interested in that as it stands. Of the listed companies, their interest must be focused on Íde, with at least a return from Adept4 from the loan notes.

I hesitate to speak too soon, but the share price is very slowly trying to head upwards. I suspect that things will move a lot more quickly once at least some of the contracts they are bidding on come to fruition. From what we know about Castleton, it seems inevitable. The company has some early movers, and the recent referenceability that goes with them.

The strategy, of preparing for cloud migration, cross-selling and working towards larger multi year contracts ( primarily from the existing 600 customer base) has not changed. One-offs having waned, the trading update appears to indicate that the promised material improvement is likely to relate to additional contracted recurring revenue, fulfilling management's aspiration of gaining greater visibility of forward earnings. The trading update and 40% loss came as a complete surprise. But the strength of the company in the social housing market remains unchanged. A loss for holders, but still a very positive outlook.

The tender offer and loan notes are finalised. MXCP's 15% of Adept4 is currently worth about £1.47m. The terms of the loan notes have improved for Cloudcoco, insofar as there is no early redemption payment as with BGF. ( and not as with Íde, where all fees and interest to end of term become payable on redemption ) And Mxc warrants are cancelled. But BGF now holds options over 50m. shares, rebased from 6p to 0.35p ( in exchange for writing off £1.5m in loan notes, and selling the £3.5m remaining to MXCP. If full term, the £3.5m now remaining in loan notes will become £6.17m in 5 years, a return on investment for MXCP of £2.67m. We can now expect an early step to be the demerger of MxcUk ( into which advisory fees flow ) and the award of shares in the new company on a pro-rata basis to shares held on the circular record date in MXCP. MXCP has said current cash will be fully invested within a few months, and I hope news of that will be published. I would expect that further cash will in due course be found for future investment, likely by sale of an existing investment.

They do not all show on this website. Someone has sold and someone has bought. I have a vested interest, but can easily see the truth of FinCaps statement that the worst thing that can happen now is that Castleton is acquired ( at a premium ) for its tech and 600 customers. I am therefore firmly on the side of the buyer.

Adding to what you have said, firstly I am bound to say this is a strange situation. On the basis of what the company and FinCap published, these are more of my thoughts. I do not know, but suspect the largely generic suppliers, a few of whom partner with Castleton and use Castleton EDRM and Agile mobile on their implementations, must have been affected in a similar way. It is difficult to comprehend how this downturn can suddenly in a 3 month period affect Castleton alone. They are all private companies apart from Capita and so we hear little. We have no easy comparators. But on the positive side we know Castleton relatively recently secured contracts with housing associations for full end-to-end managed services and also full suite solutions, providing part of the referenceability you mention. In the year ending March cross-selling went well, with the number of customers taking more than one individual solution increasing from 40% to 50% and their customer satisfaction survey ran at 96%. There is nothing wrong with that, quite the opposite. Despite the poor trading update, I cannot come up with anything 'wrong' with the company, which has been performing in line right up to the last trading update, and nor apparently can the NHF. It's products have stood the test of time. We have an innovative, responsive management, who as an example are pioneering the Alexa solution with a customer, and Castleton develop and market their own new products in response to changing customer requirements. Castleton Community is just one such. I therefore accept that the situation indeed represents a 'short term challenge' (as described by Dean Dickinson, with broker explanation) which will be overcome once the sector starts moving again, in the direction for which the company has planned. I think this price would react very positively on contract news. We can but wait for more information.

We know that Castleton is a successful and growing company. It's products are valued, obtained as a result of the acquisition of other companies and their best in breed solutions. It has grown to be the largest pure social housing IT provider from a virtual shell company, in the face of competition from large and established providers.
The recent RNS and FinCap comment when read together indicate that the company was in a sense the victim of a change in market conditions, which has resulted in associations not buying one off solutions and carrying on with what they have whilst they consider the move to the cloud, full managed services, and what I can call ' bigger' and more integrated full suite technology. The one-stop shop. Castleton has prepared for that. I had expected one or two larger deals to be coming through, based on the referenceability Castleton now has from it's first movers. They may still be. In any event, associations have a need for modern technology and someone has to provide it. But there is something in the pipeline. I doubt Dean Dickinson would otherwise have spoken of 'material' improvement in the second half. In any event, associations have a need for modern technology and someone has to provide it. I believe Castleton has positioned itself well for the future.

That will follow from talking to Dean Dickinson. A temporary setback, explained, and Castleton we know has positioned itself with a new data centre for cloud migration. A temporary setback. And still a high target of £1.30 - not in the least in line with today's price movement.

I do not diminish the setback. But this is a sound company, a very successful one, built sensibly over the years and growing. I do not regard today's RNS as anything other than a temporary state of affairs in it's life cycle. Disappointing, yes. But certainly not defining having regard to its rich set of products, and firmly established position in the market in which it operates. In my view, the future remains bright. Hence I have been a buyer this morning.

There is no disguising the facts, seemingly first affecting the second quarter. A setback is a setback, and there is one. Trying to look on the brighter side, net. debt is reduced, management were always transitioning to longer term contracted repeat revenue ( now more important ), and the company views events as 'short term challenges.' I would like to believe them. Dean Dicknson will manage change. But we shall need to see improvements during this half, and other revenue replacing the one off revenue.

Like many, my notice regarding the tender corporate event came through yesterday. There is no charge for administering that. Everyone will have different circumstances, and make different choices. The notice prompted me to reconsider. 116p. is not to be sneezed at. I think it unlikely we shall see that price this year. In my personal circumstances, I can wait for better, and for me alone my last post stands. The theory is the price may rise following the cancellation of shares. It may be helped by those taking advantage of the tender offer in one way or another, and then buying back in. I do not know. But in my perceived scheme of things, the offer is not for me. And I do not discount a follow-up tip, giving further opportunity to trade as before, hopefully after the pro-rata assignment.

I did not invest to take advantage of a tender offer at 116p. The price has already touched 115p. If I did not expect the price of my entire holding to exceed 116p. over the next year I would not be here now. I may be wrong, but I doubt MXCP will let us have our cake and eat it. IWe shall see on that. My priority is to ensure I have as many shares in the demerged company as possible on the pro rata basis. It is the to be demerged company which is paying most of the tender offer, through fees from the joint ventures with Ravenscroft and Liberty Global. MXCP say that Mxcuk is generating over £1m a year in fee income. In fact, results for the 6 months to 28th February show £707k in fees over £296k for the previous corresponding period. MXCP say the revenue streams have continued into the current year. The demerged company is throwing off cash. Ravenscroft has seen fit to buy 25% of it. As far as Ravenscroft is concerned there is dialogue about a follow on fund to the GIF, and MXCP say "The MXC board believes that additional partnerships like the ones entered into this year (referring to Ravenscroft and Liberty Global ) will become available to us in the future." I have a feeling the fee receiving business will grow, so will hold those MXCP shares I have, unless something happens to change my mind.