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results this week, what are your thoughts on how the market will react

jolly were you referring to the HY results? The company posted "Strong results for the six months to 30 June 2015" with a 39% increase in EBITDA to £609,000 and the Operating profit increased to £436,000. Cash at 30 June 2015 was up by £600k to £2.0 million in the six months. Long term loan notes may begin to drag on the share price though if growth appears to be slowing. Late last year the company announced a significant contract win worth in excess of £1 million and since year end they have confirmed a £0.8 million contract from the UK Ministry of Defence (higher than the amount secured in April 2015) With 34m shares in issue, a market cap of £4.3m it looks trememendous value from where I am sat. Bear in mind they made profit after tax of £620,000 last year. Possibility now of dividends although more likely to be pushed back to 2017.

http://masterinvestor.co.uk/commodities/commodities-a-real-recovery-or-a-dead-cat-bounce/?utm_source=Master+Investor&utm_campaign=ccff57f82b-Master_Investor_Daily_Bulletin3_10_2016&utm_medium=email&utm_term=0_25eff0bb7f-ccff57f82b-34984745

I'd love a heads up on the next one to bounce next time mate haha! You did well making on this anyway. Do you think this will level out or continue its downtrend?

Recap MBO turned over £31m in the first half of 2015, record revenue up 33% on 2014. Full Year revenue is likely to have exceeded £60m. The group turned operating profits of £220k in the first 6 months of 2015. MBO’s 6 international remittance services (IRS), were making loss making in this period and so the company discontinued them in the first half of 2015. We can deduce that had they been disposed of earlier, the headline operating profit would be higher as losses would not have impacted the £220k operating profit. Certainly in the second half the company results will benefit from the disposal of the IRS and in future trading periods. What is more important is the huge reduction in net debt over 6 months from £1,443,112 to £734,128 today! The difference in inventories + trade and other receivables (ITOR) vs trade and other payables (TOP) shows a trade surplus which provides plenty of collateral. According to first half 2015 results ITOR fell to £2,294,609 and TOP rose to £1,397,576 which accounts for some of the net debt reduction. Note the overall trade surplus is still £897,033 and can be used to repay loans or become cash on the balance sheet in future trading periods. In layman's terms, the company used more of it's inventories and collected payments (receivables) during the period whilst it's own outstanding payments due rose. However, this returned significant profits (cash) which paid down a substantial amount of debt in the period, £612,177 to be precise! The cash position is growing (around £1.7m) whilst net debt is £734,128 now. Administration costs have been falling whilst operating profits have increased. The second half 2015 results are released in June normally, followed by first half 2016 results in September. Second half performance has always been stronger on average and last year the company made impressive operating profits in the lead up to Year End. The Ringgit devaluation throughout the second half of 2015 has now reversed and back to where it was in Spring 2015. Any currency losses during the second half will have been reversed now, with the asset position increasing in value once again. There is no interest currently. The market places a value of £2.5m owing to lack of updates and weak Malaysian markets. MBO moves on little volume with the Director owning a majority stake of around 50%. The risk associated to net debt is reducing at a good pace and in my view the company will have a NET CASH position or equivalent in the September update (H116 results). Cash held is £1.7m and rising each year. Company growth through new revenue streams has been encouraging for a while now. There shouldn't be much to complain about in the next set of results.

"The Directors believe that, in order to deliver on the exciting potential of its target markets, significant investment would be required to develop the Company's sales teams in the UK and in North America, with additional investment required to expand the required production capacity to support its potential growth prospects. Although such an investment will represent a major expansion of the Company's sales force; the Board consider this necessary in order to properly capitalise on the opportunities presented to the Group and accelerate growth." SIGNIFICANT INVESTMENT into the sales force likely means increased annual costs also. Every startup needs capital to boost sales and capacity but that doesn't represent investor value return in the short term.

Net asset position vs company added value confirms this also. Current £10m valuation after heavy placing of shares. Net assets have only risen by £2.66m despite a placing of £3.3m gross which came straight out of shareholder equity value. The cash sitting on the balance sheet now won't increase from here. The company have stated "The additional funds will enable us to accelerate our growth in UK, Europe and North America and also allows us to further improve our productive capacity and further invest in our unique Freestyle Merchandising technology platform". I'm not suggesting further placings. But I am suggesting a reducing cash position in the coming year and possibly a reducing net asset position as the company spends cash on expensive platform improvements to scale up. Why would people buy into a loss-making outfit that will see reducing net asset value in the coming year. Expenditure is forecast to rise. Markets are shaky. The global economy more so. Outlook weak in my view.

You posted a loss of £200k so I was highlighting the true picture here, that losses were heavier hence the cashflow breakdown. Like I said " If they had lost £200k as reported then you would expect a cash position nearer to £3.4m but instead it is £3m" So the placing costs and a little extra account for the missing asset value which reinforces the point that losses were significantly more than £200k In other words, that the company only received net £2.97m of the £3.3m raised from the share placing is therefore already factored into the £0.73m loss. Cash burn is a killer, there is no hiding it here

Agreed, we seem to be struggling to break that 3 month trend channel, but we are sitting at the top of it so fingers crossed in the coming weeks we touch the 90s :) Will be running through the results in detail today but on first glance there are no nasty surprises

Incredible reliance in current market "The Company expects that Profit before Tax will be higher than market expectations and significantly higher than for the previous year. Turnover is expected to be in line with market expectations." Profit Before Tax was £84k last year and turnover was £1.2m. At the half year PBT had climbed to £60k. For the year it should be around £150k. Cash position rising slowly. Safe little earner but looking expensive now with a market capitalisation of almost £14m

benjaminvh1 - Low volumes moving the stock is fantastic for traders. For holders nursing losses you need a move to profitability exactly as I've said previously which is why I posted the figures to illustrate despite progress there is veyr little hope of the company breaking even this year. Perhaps the markets will bounce on something unexpected and investors will load up IMTK stock. The company reputation is tainted somewhat now that RT has been involved in dubious holding activities so question is whether support will hold at this level in the face of continuing losses and placings to come. In the vast majority of cases shares will retrace further but I may be wrong. Good luck with your holding. I'll be watching to see signs of a turnaround :)

We would have to be extremely unlucky to pick a 'dodgy' one that gets caught out and goes under. The accounts and updates coupled with returning interest to Malaysian based operators, weakening pound there suggests we will see gains in the year ahead if the trend runs. A BREXIT would be favourable for these foreign based small-caps also. Not keen on the Chinese stocks one bit however, there is a world of difference between Commonwealth markets and the one mentioned before.

graham-wales: I seriously hope you've done your due diligence properly! This company lost far more than £200k last year, you are quoting EBITDA... "30 November 2015, raising £3.3 million (before expenses)" The cash position previously was £310k so even they broke even there should have been £3.61m in the kitty. If they had lost £200k as reported then you would expect a cash position nearer to £3.4m but instead it is £3m What the company reported which you chose not to mention is that " Losses before tax were reduced to £0.73m" £730k begins to tell a more accurate picture of the previous trading period. Worse still - "In FY 2016, the investment of the proceeds of the fundraising in expanding sales, marketing and production (detailed further in the section below) are expected to lead to EBITDA losses increasing in the short-term, reflecting investment in the Group's operational expansion"

Whats the appeal here? Last set of results read terribly, net asset position falling considerably, loss making, limited trading progress

Nice one spotting that bounce! With results due in 10 days its time to make up your mind, whether to punt in or out. The market is clearly expecting depressed results with the company valuation having fallen from roughly £18m pre-HY results down to £10.5m today (even lower earlier this year). You have to ask yourself is there going to be any forward looking news that will strengthen the company's future appeal. Given the collapse in shareholder value following previous statements I see no reason why people would choose to pile in on the next set of results. Net debt is still £6.9m and whilst profits are improving and likely to see further gains now the GBP:USD exchange has moved further to benefit PTD, the global economy is weakening every day. Revenues were trending lower. If you look at the balance sheet at the HY it all looks rosy thanks to the placing which raised £5.3m They used £1.7m of this to fund the purchase of the freehold at Yeovil and took out a loan of £2.1m So where did the remaining £3.6m funds of the placing go? Straight into the inventories it looks like. Whilst the company have next to no cash on the balance sheet they do have additional loan facilities to draw down on. Ofcourse this is all pointless if the business is not increasing sales. They have 'value' held up in inventories that can't be shifted and could well be written down in the future such is the nature of this type of business. "Looking ahead, the indications are that the world market for finished leather products will be suppressed in the short term, impacted by slower growth in emerging markets notably China and Russia and the risk of wider economic uncertainty causing further financial market volatility..." "The current order book is below our expectations and reflects the lower level of demand that has become evident during July and August. This trend was confirmed at the major international trade fairs attended recently, where it was clear that activity levels in the leather industry are currently depressed and likely to remain so in the medium term." One to avoid until further guidance confirms otherwise IMO

Seems a heady valuation considering still loss making and reliant on increased contracts just to break the placings addiction. Better to watch and wait

I don't know about PTD or OMIP but yes this looks ready to move on the next piece of news. MMs took it down trying to fill that sell, like CNR when an ii offloaded a shedload. RCI is topping out now in my view. MBO still asleep...

Surely not, it's prevalent across AIM. As if by magic, yesterdays hype has faded and we are back down with a sell below 2p.

I'm reposting as a reminder to who called this right 9 months earlier. Those who tried to claim this was cheap back in July and shout me down are nowhere to be seen. Look at where the price is now. The main reason the price went up and subsequently fell is another reason why you should avoid the likes of IMTK. Allowing RT and his sheep to manipulate a smallcap at the expense of other private investors is ridiculous but noone here saw it coming. The price continued to fall even after his departure because despite 'progress' the company are not making anywhere near enough to cover expenses. There will be further placings / loans required. Your attempts to gloss over these facts, presumably because you're holding at a higher average is typical of nervous investor syndrome. Yesterdays move was good for some though.

http://asia.nikkei.com/Markets/Commodities/Firm-crude-fuels-gains-US-rate-hike-commodity-prices-blur-prospects http://www.fxnewscall.com/malaysia-ringgit-bulls-to-remain-in-control/1935210/