Member Info for shylock

"I got the information from my own moles." ===== Thanks for clarifying. Discussion about non-attributable allegedly inside information tends to be fairly short, for obvious reasons so probably best to wait for hard news. "I've neither seen nor heard anything to suggest the Chairman has experience of running plc company overheads - I can only assume that you know him personally hence your view." ===== John Grant has limited experience of running a plc; but he is simply the figurehead put in place by the activist shareholder, Hawkwood Capital who have a vast bank of relevant experience for him to call upon. But you knew that, I'm sure.

"£2.1m is a lot more than many would think would be possible for a loss making business, but it's a lot less than the price tag that KPMG put on the metering business" ===== 30silver, I don't remember seeing the KPMG valuation published anywhere. Could you help out with a link? "How about the rumours of significant bonuses being paid to directors / senior management involved in the deal process" ===== Can't remember seeing these rumours anywhere either. But if they are true, perhaps they are a form of "golden goodbye"? Clearly, a number of former staff, managers and possibly even a director or two, will now be surplus to requirements. "Utiligroup will now have to bear all plc costs, not just a (1/3?)" ===== The key question should be: what overheads will we be carrying going forward? Clearly they will be a lot lower than they were with a significantly reduced head count, reduced chairman's remuneration, no CFO remuneration and no rent, rates and maintenance on the former HQ building. We don't know how much has been saved but I trust our chairman to ensure that the overheads will be commensurate with the scale of the Utilsoft operation - even if the full listing costs now have to be borne on narrowed shoulders. More news coming on the overheads front, I expect. And let us not forget that we will now be able to cash in some or all of our accumulated tax credits, simply by virtue of making a profit at last. I note that at least two-thirds of today's trades so far have been buys. I often find it takes the market a while to see what I can see in a nanosecond.

lancashire72, the sale price of £2.3m is approx £2,299,999 more than I was expecting. What we have left is the crown jewels plus an unexpected bag of cash and no debt. This is why I invested here so today's news makes me a very happy camper. You may have a different agenda, I suspect.

EdwinSanchez1, why don't you check the last interims and FY accounts? They will assure you that Utilsoft is a sizeable and growing business with a current run rate of circa £6m pa turnover and rising, with profits of circa £1m pa run rate, and rising. It's also a golden goose with circa 75% of its revenues recurring. Once the market wakes up, I think the SP will double to reflect the profits and growth in that business. But everyone has a price and it's not inconceivable that the BoD might recommend selling if we got got an offer of £20m+. Whether shareholders agree or not would have to be put to the vote. But one of the largest shareholders is occupying the chairman's seat so whatever is best for him is likely to be best for us. Of course, the former chairman and still the largest shareholder could block a sale so the terms would have to suit him too. All things considered, I therefore don't see a sale of the remaining business being likely in the short term. But there is allegedly more news imminent according to my moles.

"I suspect the next step in the strategy will be a disposal of the Utiligroup business." ===== Leaving a shell plc? I don't think so -- albeit there is certainly a chance that the PLC will be sold.

Bingo! Exactly as foreshadowed in the half-year results. And £2.3m is a bonus imho, albeit less than asset value. We are now a profitable business in a growth sector, with no debt. This from the interims for the 6 months to Sept 30 2013: "Utiligroup’s performance was ahead of our expectations in the period and the business continues to see strong demand for its software and services. Utiliserve has had a particularly successful six months and was over 25% ahead of budget and has delivered a profit in the 6 months to 30 September 2013. Turnover increased by 63% to £2.97 million in the six months ended 30 September 2013 (2012: £1.82 million). Recurring revenue in the period was £2.38 million (2012: £1.61 million)"

Who is "bailing"? Under £1,000-worth of shares traded today and the SP is marked down 10%. It's just a bit of fun.

Spex, if that should turn out to be the case then I will be happy as the best-case scenrio for me when I invested here was that we would be left with just Utilgroup and its profits. Much of their turnover is on automatic repeat every year so low overheads, high margins and secure revenue streams are precisely what I want.

30silver, I haven't spoken to my moles since my last post - but "coming soon" is not a very precise term. My impression was that news would come this month but that was based on nothing specific. Not sure if the change in registered office address is significant or not. It's just a legal address and is often hosted by lawyers or accountants rather than the company concerned. Looking forward to having something substantive to talk about.

I gather from my moles that it's all hands on deck at the moment and news will come soon.

I know nothing about their business Kamel... except that it appears to be more of a Forex play than anything else - and they seem to be on the wrong side of that equation. That can swing the other way but who knows when? And the directors own just a token amount of shares. What are they waiting for? And one II seems to own over 50% of the company so PIs concerns will never count for much.

Not too bothered about the lack of business news: Jan/Feb have often been quiet months for that kind of news - and we have already been told that the business is out-performing management expectations. OTOH, March/April have often been good months for business news so I'll be asking some questions myself if we haven't been thrown some scraps by then. Lethargy is not likely to be a problem in my view. The man at the top is representing a 10% shareholder and morale must be higher now than it was under the old regime. However, it's possible that the sale of the metering business and other corporate matters are taking up a disproportionate amount of management time. I'm still convinced that at least one buyer - for the whole business or just the metering operation - has been in the wings since the start. But time will tell. More patience needed here...

"The disposal of the metering business is a given, however the lack of any updates or developments on the other parts of the business is perhaps of greater concern." ===== Kamel, the electricity providers are mounting a last-minute campaign to have the smart metering program changed, reduced or deferred and I would assume that any buyer of our metering business would prefer to wait for final clarity - and possibly pay a bit more for doing so. http://www.telegraph.co.uk/finance/newsbysector/energy/10613535/Energy-giants-call-for-review-of-smart-meter-roll-out-to-save-consumers-1.8bn.html One assumes that this campaign is self-serving. I suspect they are worried that consumers will be able to switch too easily to a cheaper tariff - or even switch off smart appliances which were previously powered up 24/7. However, the ball is rolling and HMG are committed: http://www.smartgridnews.com/artman/uploads/2/UK_second_annual_report_smart_meters.pdf

G'day, Kamel. I usually try not to post unless I have something to add, a question to ask or a burning desire to correct some of the codswallop posted by the uninformed or terrorists. But life is treating me very well, thank you and I am extremely comfortable with my portfolio. Of course, I attach as much significance to the recent SP rise as I did to the previous SP fall. Today's RNS was a curate's egg: bad news that cash flow is tight, good news that we are still credit-worthy and potentially very good news if we can get a decent price for the meter installation business (although I don't attach much weight to the CEO's little teaser yet). Still waiting for the bigger news - but I'm good at that.

It never was JJB was it? http://www.bsmartenergysolutions.com/bsmart-helps-retail-giant-cut-carbon-footprint/ I think that your accuracy score on that point may raise questions about the accuracy of your other points/"rumours". I do know that the new chairman made a point of visiting all key clients soon after his election and those meetings went very well AIUI. More a pond of little sells, I would say, plus some buys of course. Extremely uninteresting but it gives the MM an excuse to play with the SP while we wait for further news.

Same to you, Kamel, et al. All quiet on the western front.

Apart from a wee top-up last month, I haven't bought any since August. (Nor have I sold any.) But I'm poised to pounce again once the waters clear a bit. Apart from the potential growth areas here, the cost reductions and the unlocking of value through restructuring, I particularly like the high level of recurring revenues they have from service contracts. If I see any sign that the recurring fees are growing further I'll be splashing out again.

Looks like a rollover, Kamel, ie a sell and buy-back - hence no effect on the SP.

If you want certainty, you'll have to wait 6 years: that's when the legal right to bring a claim for wrongful dismissal expires. However, NK would be ill-advised to twiddle his thumbs for long since he would be expected to mitigate his claimed loss - either by getting another job or by bringing his case to court promptly. But based on what I have heard from a trusted source about the reason for his dismissal, I would be surprised if he wanted to air any grievance in a public court.

It's still possible - but gets less likely with the passage of time. Why delay?