Member Info for Slickharry

We are now GiS, 100% owned. Oct is effectively the holding co. A vehicle for the reverse takeover, therefore past share price and history is irrelevant, different business entity all together - now a recognised trading co, formerly investment co. Give it time, allow New business to show transactions track record and hopefully re-rate. What would be a sensible pe? 7x ebitda to forecast a mcap, and allow for future divs?

Probably ipo broker involved in reverse takeover, still drip feeding into market...majority c60% is locked in for 1yr re: jg and dl etc

We have had one trading update (as expected) since Rto which was positive, how can you say the company is being run into the ground. Need to wait for facts to be presented in future rns. Have no basis for comments like that. However sadly share price has dropped, hopefully when management plans are proven this will rerate. Management can't control general markets

Partly agree, i'm hoping JG will address the "unknown" by releasing "detailed" quarterly updates (we know regular statistical quarterly updates will be given as per last RNS) to provide evidence to market of growth prospects as demonstrated by Q1 534k operating profit is reocurring, if not i suppose we will still have KPI's to compare to assess growth vs prior quarters - so may be enough for market?

Good thought Craig. As it stands I personally don't see GIS funding INSP as a major risk, they themselves recently secured a 3mill convertible debt facility to fund operations and development (see rns in May). If you look at note 10 of 31/03 year ends GIS not made investment that 12 months, nor any RPT note to suggest cash advance within debtors in 2014 or 2013....although it is a possibility. we did recently convert a £50k loan into shares (arguably immaterial when we generated 534k operating surplus - hope it supports theory we are generating free operating cash to utilise). Again I will keep a close eye and should this become material will reassess my holding. sure it same for many common directorships on AIM!

Probably a fair point, although i'm hoping the forthcoming news to be positive haha...my focus is not dividend return, but Capital growth, with GIS proving up its trading profitability over future quarters, through increased scale up (see admin docs) hopefully this should lead to a re-rate, we know last couple of years it has generated profit and cash albeit at small levels (see financials), following initial startup costs being absorbed and therefore know its operationally capable. Of course should trading performance dip then i would consider my holding...but way i see it is we are a profit generating co, a cash generating co, and growing year on year, this is enough for me to hold for 12months...but to put it into perspective if want divi's go blue chip, want life changing growth go with speculative minor, want slowly but surely, my decision has been to go here. What your view Dougal, dividends aside? DYOR ATB Slick

I would expect dividend to be sent up from GIS to Oct (they hold 100% shareholding) have £670k negative retained earnings as at 31/03/15 (see GIS balance sheet) therefore two quarters of £500k repeat run rate = £1m therefore could declare say £300k at HY1...Oct retained earnings are negative of £1.7m as at 31/03/15 (see Oct balance sheet) therefore would need to clear this for us shareholders of holding company to receive dividend. To conclude half year dividend at 30th Sept looks unlikely, however full year divi at 31/03/15, based on repeat run rate of 4 quarters + small amount of growth over year could very much see a maiden divi paid and recurring 6 months there after, just clearing small backlog of retained losses (hence DL shortly comments) which for any genuine investor and not trader would be short term, therefore i continue to be happy to hold for 12m.all in my opinion of course.DYOR ATB Slick

Good point! I would think that Octagonal is effectively the holding company and therefore all PLC costs are carried here, along with Goodwill for GIS and subsequent unwinding...I would think the operating profit by GIS would not include these values as effectively a "trading division", that said, directors have service contracts with GIS and i would hope no further material remuneration is paid from holding company as no tangible benefit, just paper purposes. All previous directors remunerated via Oct (see note 3 to accounts) resigned following RTO of GIS and therefore no repeat run rate here expected by me for 2016. ATB Slick

If you look at year ends to 31st March 15 for GIS you will note that reported operating profit takes off admin expenses (which includes dep'n - see note 3 to accts), therefore assuming 1st Qtr 2016 was reported by JG on same basis this would appear operating profit is net of admin expenses also..though exceptional costs i.e investments write downs for example would need to be deducted from op profit and any tax would need to be deducted (as is for any profitable generating company) to come back to retained earnings, which dividends can be paid out from..aslong as this reserve is positive on the balance sheet at year end. ATB Slick