Member Info for RedNinja

Gordan Banham CEO gives a quick overview of business and opportunities (came out 25/5/21) :-

Https://www.brrmedia.co.uk/broadcasts-embed/60957580576c9638976d4b60/event/?popup=true

Opportunities Like :-

- Tungsten West
- Westfield + Brockwell Energy in Fife

"UK developer of consumer technology products Tactus Group is expanding into the U.S. market with investment in Pi-top, the coding and robotics firm that specialises in improving digital skills in education."

Https://www.roboticsandinnovation.co.uk/news/investments/tactus-group-invests-in-coding-and-robotics-firm-pi-top.html

I'm loving the 240p figure, but as it says on the document "Please refer to the important disclosures shown on the back page and note that this information is Non-independent and categorised as Marketing Material".

Having had another look, I see the fund is in the lowest quartile so not great performance.

When I search for the fund (TM Crux Oeic) I get :-
https://www.trustnet.com/factsheets/o/ms0t/fp-crux-european-i-acc-gbp
The performance is not as good as the reference index, but it does not seem bad.
Having said that funds have stock picking failures like we all do so a fund investing in EBQ is not a guarantee of success.

https://www.thebusinessdesk.com/northwest/news/2079493-tactus-group-eyes-further-growth-after-seven-figure-fillip-from-fund-manager

Comment from ODYSSEAN INVESTMENT TRUST PLC annual report :-

Https://www.investegate.co.uk/odyssean-inv.-trust--oit-/rns/annual-financial-report/202105281145532194A/

FLOWTECH FLUIDPOWER

Leading UK distributor of hydraulic and pneumatic components.

% NAV: 7%
Sector: Services

Performance in period

Flowtech is one of the more cyclically-exposed companies in our portfolio and as a result saw a material drop off in demand as COVID struck. Pleasingly, the business managed to trade through the worst of the pandemic whilst maintaining a full service to its customers and remaining cash generative in all months. We believe this strong performance allowed the group to marginally gain share through the period.

The group managed to continue to deliver on its operational improvement programme through the crisis with significant cost savings delivered and further cash recovered from working capital, this supported the group in driving down debt through the period despite the lock down headwinds.

Outlook

Flowtech has gone through significant change in recent periods, with a strengthening of the board, increased focus on delivering cost benefits from legacy M&A, improved investor disclosure and the identification of significant digital channel revenue opportunities.

Although COVID has been a serious headwind, we see these issues now receding and the group is well placed to bounce back should the UK stage a strong recovery. In this instance the stronger operational platform the group is building stands it in good stead to deliver improved profitability, and opportunities in digital channels offer the opportunity to accelerate growth and build share.

Can't see a trading update 2 weeks ago, but with the finals on 25/3.
I presume the earliest we'll see another trading update is end of June or July

I should have mentioned that there was a trading update in 2020 on the 9th of June so probably not next week, but the week after if VLG are so inclined to follow last years date.

Isn't a trading update due shortly ?

That is only the declared trades so far. The MM's might be working a large sale for a client which is yet to be declared.

This was a reasonably big legacy run off deal. Recently they raised $125 million dollars and the 4 portfolios come to $75 million already, but not really attracting much attention from investors is it.
I'm thinking the management have always got it right on recent dealing and sold RQIH holdings down eg Alan Quilter on 21/12/20 and 6/1/21 sold out 400k on each occasion. Obviously he knew of the change to the dividend policy and he made the right choice to sell.
Still the growth message on the Investor Meets Company website was well explained, hopefully they will recover with time.
I'm thinking the RQIG share price might need more institutional buying to shift it upwards.

DSM should hopefully do well over 2 years.
They seem to have a basket of companies with positive prospects.
I will be happier when/if they exit the RGD loan notes.

Obviously didn't have Barclays last position on RQIH as today they have come out with :-

BARCLAYS CUTS RANDALL & QUILTER PRICE TARGET TO 245 (248) PENCE - 'OVERWEIGHT'

There should be an update from Barclays on RQIH presumably with a new target price.
Barclay's last position on RQIH was OVERWIGHT and tp 239p

It makes sense to cut the dividend to fund growth otherwise you are effectively increasing borrowing just to pay a dividend.
However, around a 60% dividend cut is not so great for some who counted on the dividend and may have sold out.
Accounts not as transparent as some so I think easier to misinterpret when just looking at the overall profit figure when good progress has been made.
"Investor Meet Company" are hosting RQIH for a presentation and questions later hopefully that will make the case and calm some nerves.
How fast the share price will recover not so sure. I'm certainly feeling poorer today.

The rational for cutting the dividend is :-
"While we are in growth mode and remain capital consumptive, we are adopting a progressive cash dividend policy with a payout ratio of between 25% and 50% of our Pre-Tax Operating Profit, the best proxy for cash earnings. While the precise payout percentage may vary year on year, we intend to grow the total amount of the annual cash dividend from the FY 2020 level of 4 pence per share. This dividend policy will allow us the flexibility to carefully balance the allocation of our capital between reinvesting in profitable opportunities, providing an attractive and growing dividend to our shareholders and minimising the need to raise external capital."

It does say in the report "Intangible assets acquired in a business combination, and recognised separately from goodwill, are recognised initially at fair value at the acquisition date. This includes intangibles assets calculated by measuring the difference between the discounted and undiscounted fair value of net technical provisions acquired."

It does look like this is a consequence of acquiring legacy assets. It is not really understandable to someone who understand these terms. They do look to be good results, but the dividend has been cut from around 10p last year (although 6p was a bonus share issue) to 4p so a big shock for the market. Looks like the share price is stabilising on reflection, but old holders were used to a much bigger dividend so it is a shock, looks like William Spiegel is just some of what would have been paid out as dividend to go for growth ...

https://masterinvestor.co.uk/equities/small-cap-round-up-featuring-sureserve-braemar-shipping-keller-and-more/

Hargreaves Services (LON:HSP) – very big profit upgrades

Taking advantage of higher commodity prices, this group is now expected to do a lot better than previously stated.

James Tetley, analyst at brokers N+1 Singer, has upped his profit estimates for the year to end-May, now going for £17.6m adjusted pre-tax profits (£4.9m).

He sees earnings rising from 19.5p to 50.7p per share, enabling the company to pay out a cracking 20p per share dividend (4.5p).

He will probably upgrade his estimates for the coming year over the next few months, or so is my guess. But first of all, we should see what the company says when its reports its full-year trading update on Thursday 3 June.

The shares, now 378.5p, are doing very well indeed and look even sexier with that lumpy dividend.

I see them rising a lot higher yet.

(Profile 29.12.20 @ 263p set a Target Price of 325p*)

Maybe this it what has encouraged share buying today :-

Ebiquity PLC - marketing and media consultancy - Appoints Lara Izlan as non-executive director with effect on June 1. Is currently director of Data Strategy at FTSE-250 listed broadcaster ITV PLC