Member Info for Raleigh

I am always pleased when employees are incentivised, and the LTIP does that for senior managers, whilst the scheme rewards the rank and file for their efforts. The £1.45 price from £1.25 put on the company in June last does seem rather a stretch from here, but as you have said the current price is ' out of date.' The price has moved backwards whilst the company is moving forwards. Perhaps shareholders need some reassurance and I trust that at least will come in any trading update - cross selling is continuing with extra opportunity arising from Deeplake-acquired customers, and there will be the Deeplake revenue to add for a full period, which should amount to some £400k with £150k EBITDA as reported on acquisition. No doubt the company will update in due course on success arising from the software and managed services merger to create a better platform for 'Cloud First' sales, in recognition of increasing migration to cloud. It will be an interesting update - it has been made clear more, I hope 'even' more can be expected in the current half than that which ended yesterday.

Channel Islands Media Group Ltd. is a new company, incorporated in Guernsey on 7th August 2019, and is the holding company for the joint MXCP/BIL venture. The acquisition of Guernsey Press and subsidiary from the Guiton Media Group Ltd/Claverley Group is seen as "bringing ownership home." This is the Guernsey Press' own article https://guernseypress.com/news/2019/10/01/guernsey-press-soldto-local-investors/

I had expected a Liberty Global acquisition before anything else. But other opportunities arise, and one has been taken undoubtedly after months of discussion and due diligence. Accepting the investment is a good one, and I would not be an MXCP investor if I doubted that, the real positive for me is that this is a new relationship with a quoted fund ( prepared to make 50% partnership investments), arising from the existing relationship with Ravenscroft and the GIF, Ravenscroft administrating the BIL in the same way as the GIF - thus opening up further opportunities and indeed possibly fee income ( though there is no mention of that ) Should there be fees, these will go into the proposed demerged dividend paying new TISE listed company. ( BIL is listed on that exchange also.)
https://www.ravenscroftgroup.com/invest/specialist-funds/ci/
As one would expect, Bailiwick has also published today's announcement.
https://www.tisegroup.com/market/companies/2704

hope to get more information from the circular and/or Hargreaves Lansdown, but as a matter of interest I note that Ravenscroft are themselves market makers for the TISE exchange, and deal in the exchange's own shares. I do not suggest they will necessarily trade demerged company shares ( conflict of interest at first sight )
https://www.tisegroup.com/market/trading/

On the demarger, I meant to add something more positive about holding shares in MxcUk - that I take note of what has been said ( below ) And also that Ravenscroft did not buy into MxcUk without seeing advantage to their own shareholders, and Smith, Weaver and associates plainly see advantage to themselves, with them receiving shares on a pro rata basis in the same manner as all MXCP shareholders.
"The fees from our transactional businesses flow to MXC Capital (UK) Limited ("MXCUK").  Post year end, we completed the sale of 25% of this company to Ravenscroft for £2.25 million. The investment represents a deepening of MXC's relationship with Ravenscroft, which we believe will help to grow and drive further value within MXCUK, as well as providing additional opportunities for our investment business. We continue to assess the strategic options for this valuable part of our business." ( we now know demerger is part of that ) and also,
" We are delighted that Ravenscroft has decided to take a significant stake in our transactional businesses, demonstrating their belief and confidence in the MXC model. It is testament to the excellent relationship we have built with Ravenscroft as a result of working together on the GIF and we look forward to building on that relationship to create further value for both MXC and Ravenscroft's shareholders."

The Ide results were welcome, drawing a line under things. Some seem to have expected too much too soon, but indications are that with Mxcp's 43% and loan notes, and with their usual support from Kestrel, and board representation, all parties have a vested interest in swiftly completing the remedial action, and growing the company. We are now waiting to see developments with Adept 4, and how MXCP will come out of that acquisition. And I expect MXLG to make acquision(s) soon. There is also the tender offer, which I suspect I shall find of minimal interest. In any event, if there is a choice to be made, I shall try to acquire as many shares as possible in the new demerged company. One never knows what it may lead to, and it would seem unlikely there will be anything to lose, as they come 'for free' with promises of a dividend, albeit that is likely to be minimal. But we await more information.

Your point is well made. I agree.

On what is known, I agree your sentiments. As a throwaway, it seems remarkable that instead of suffering today on the large amount of trades seemingly sales, the price has actually advanced a little. ( taking into account that one or two of the red entries are likely buys ) I wondered if there would be a large delayed buy. Secondly, there being no RNS, yet, it would seem that the shares sold by Kestrel have been bought by purchaser(s) who are not required to notify. Finally, and it does not matter until the price turns, the multitude of shares changing hands over the past year have done so in excess of the current price, and so they are largely out of play until then.

Becoming debt neutral would be an important milestone, leaving more cash available for return to shareholders, or to invest in growth - but as it is the balance sheet will support acquisitions now should the company identify an opportunity. Either way, if it comes about as forecast it is an enviable position from which to go forward and compete. I am also hopeful that with the appointment of the new managing director in Australia righting the wrongs of his predecessor, that inroads are being made into 'lost' business there and may at least start to show during this financial year. But I would really like to see some managed services contracts coming through based on the new data centre and hybrid cloud sales.

There we are. Kestrel. 3% exactly. The buyers have paid at least this price. It will be interesting to see if there is now a buyers RNS, such as BGF, or whether the shares have gone to holders under 3%.

Obviously someone is selling and someone buying. I would be unsurprised if Kestrel is selling from 13.82% . I would expect an RNS now if that is the case. Similarly with any other shareholder obliged to notify. Should there be no RNS either selling or buying, I conclude these transactions are down to under 3% holders. FinnCap are very optimistic for the year. I trust this half will show an inline with expectations outcome. It may be better, with the continued cross selling and integration mentioned. It seems a long time coming, but I still think that cloud/managed services contracts will arrive.

It is my opinion far too much emphasis has been placed on NAV. That is probably because in recent times MXCP has set its first target at closing the gap between share price and NAV, something repeatedly mentioned in updates. But the situation has changed, with Íde and Adept4 being given long overdue attention, by the appointment of a heavyweight board at Íde, and the acquisition of Cloudcoco at Adept4, bringing what appears to be a growing company with an aggressive management team into the mix. In addition to those two, MXCP has it's private companies, which include the Liberty Global joint venture, investments on its own account in others, and also through its relationship with Ravenscroft and the GIF. The value of the transactional company will now be fully recognised through the new listing, with Ravenscroft owning 25% and we MXCP investors due to receive pro rata shares of the 75% we own on the relevant date (but we await the circular ) The company has £21.5m which we have been advised will be invested over the next few months. Undoubtedly there will be acquisition(s) into MXLG, and there is a strong hint that there will be a GIF follow-on fund giving yet further opportunities for investment, and the fees from their work for the fund, as well as those fees coming from the Liberty Global co-investors. The way the investments with Liberty Global are structured means that more, or larger acquisitions can be made achieving greater economies of scale. It appears that the next few months will be a newsworthy period, making investments to grow MXCP capital return. They benchmark themselves against a 2.2x return over 4-5 years. The Castleton buy and build, which is the only recent one which possibly compares to the Liberty Global ( starting to show profitability after 3 acquisitions ) buy and build, achieved a 3.3x return over 3 years. And 'size and scale' indicates the intention to build a far larger company. The next few months should further consolidate the investment base. And in my view the activity, and potential for sizeable returns justifies a premium to NAV. That would be normal for a progressive company, let alone one where most of the share price iwill be backed by assets.

We are now waiting on
Circular(s) with full details of demerger, and tender offer
Circular re. Adept4 acquisition of Cloudcoco, giving terms of loan notes and hopefully transparency on shareholdings.
Details of further investments/acquisitions, anticipated over 'the next few months."

£9m.

In view of the few buys today, I wonder if the full implications of the RNS have registered. The value of the trading arm at £10m has previously been unrecognised. That is no longer the case, with the value now being recognised in a new company, and MXCP shareholders rightly having that value transferred by the grant of new dividend paying shares, in a £10m. company.

And to a much lesser extent, " Dialogue has commenced with the shareholders of the GIF about a follow-on fund leading to potential further management fees in the future."

This is what I am talking about. Headway being made with MXLG as a trading company, and building. "With respect to our partnerships, LGJV successfully completed two additional transactions and now has a solid platform of monthly profitability. Additional deals continue to be reviewed."

It is nice to see things are proceeding as planned with them. That is of itself a successful recovery exercise. Íde will feature, I believe, in future plans. Adept4 may also. But in relation to MXCP I think it has for the time being a tendency to yesterday's news. MXCP have other fish to fry, in the shape of Ravenscroft and Liberty Global, and it has been made clear cash will be invested on other acquisitions over the next few months.

MXCP value our shares, as we stand today, at 116p.

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MXCP/14218009.html

Excellent, straightforward update highlighting the benefits accruing to investors, with further updates indicated on future investments. Cash intact for investments, confirming no chance of dilution as company adds to its portfolio.