AT Communications Share Discussion Threads

[welsheagle] 03/11/2008 07:22

Contract Wins and Subsidiary Interest (AT Communications)




RNS Number : 2398H
AT Communications Group Plc
03 November 2008




ATCG.L


AT Communications Group plc
("ATC" or "the Group")

ATC is an award-winning supplier of Information and Communication Technology ("ICT")
solutions

www.atcommunications.co.uk

Multi-million contract wins & potential interest in subsidiary

The Board of ATC is pleased to announce a series of new contract wins for its ATC
Solutions and Servassure divisions.

These wins include a two year Network Services Voice Contract with Carpetright, Europe's
leading carpet and floor specialist retailer.
The contract will result in significant cost consolidation and streamlining of Carpetright's
entire UK and Ireland estate of nearly 600
stores. It also represents another major client win for ATC Solutions' retail portfolio, which
includes HMV and Somerfield.

In addition, the Group's Servassure division has won a three year voice and data estate
maintenance contract with BT for Comet, the
electrical goods retailer. The contract which covers over 250 stores, distribution centres and
head office sites across the UK is worth in
excess of £1million over the period.

Both contract wins are working capital positive and are expected to make partial
contributions to the current financial year but will
make full contributions in 2009 and beyond.

ATC also confirms that it has received unsolicited potential interest in a subsidiary of
the Group. Since the Group's continued priority
is to reduce debt levels, the Company is exploring this interest, together with its advisers.
Discussions are at a very early stage, and a
further announcement will be made in the event there are material developments.

Alex Tupman, CEO commented:-

"I am delighted that our recent investments have delivered these multi-million contract
wins, which will help underpin the Group's
future revenues. In addition, an approach for one of our subsidiaries is currently being
considered with initial discussions underway.
Shareholders will be updated on this development as soon as appropriate.



The Board remains confident of the Group's long term prospects, which are underpinned by a
solid new business pipeline, and I expect to
announce further new contract wins shortly."

[qs9] 03/11/2008 07:15

new contract, more to be announced according to statement AND interest in a subsidiary.....all looks as though this could move materially North IMO.....DYOR etc

[westcoastrich] 02/11/2008 08:23

The fate of Britain's small businesses is now political dynamite
In 15 years banking with NatWest, Rebecca Liddell's burgeoning South Wales caravan park company has never once missed an interest payment or defaulted on a loan. It has been a treasured relationship.

By Philip Aldrick, Banking Editor
Last Updated: 10:43PM GMT 01 Nov 2008

Small businesses employ more than 13 million people in Britain and are becoming political dynamite
After all, she says, without NatWest's £3m loan her third-generation family business would never have expanded to a fourth site. Ms Liddell repaid the money not just on time, but early.

Last month, though, she was left in despair after her years of loyalty came to nothing. At the annual overdraft renewal negotiations, her NatWest manager broke the painful news. "He said he knew we'd never had a facility charge for the overdraft before, but he was now imposing 1.5pc," Ms Liddell said. "He also doubled our interest rate over base and reduced the size of the overdraft facility. Then he told us, 'If you don't like it, leave.' "

Those few words added £100,000 to the company's annual costs – about a third of its profits. With the business going strong despite fears of recession, Ms Liddell had been planning to employ five more people – adding to her 25 staff and 15 sub-contractors. "We have a development programme under way but that's now been put on hold because of this," she said.

[westcoastrich] 14/10/2008 19:17

All the banks are saying they are not going to renew facilities and/or if they do then only on higher margin. I think this could see a lot of further downgrades,not just here but in other companies also. LIBOR has also stayed high and will have killed many.

[staymour] 14/10/2008 18:18

j28

As far I can make out there seem to be concerns about the level of debt and ability of the company to actually convert its trading operations into enough cash to significantly reduce the debt level.

so I think there is a bit of sitting on the sidelines until there are some figures to chew over or a reassuring trading statement.

I have sold the bulk of my holding down taking a real hit in the process.

So it would be nice to get back in again and start recouping some of those losses.

Just my thoughts for what their worth

[jasper28] 14/10/2008 16:10

Are we looking at a serious bargain here or a complete flatliner, been in from the off on this one and my value now at 1/4 of what it was, when originaly purchased. Must stay in now till the death and hope for a miracle.

[whiterussians] 14/10/2008 11:31

new low?> not much trades tho

[davidosh] 06/10/2008 11:21

Mas...Those were my thoughts too !

Some sizable director buys at this level would be nice. The last lot were too small to justify any confidence with Alex adding less than 1% to his holding for example

[masurenguy] 06/10/2008 11:15

Someone is bullish paying almost a 10% premium to buy 99,433 shares @15p on a day when the markets are down by more than 6% !

[davidosh] 05/10/2008 00:53

The company only renegotiated their loan about nine months ago and are paying the interest without any problem and not breaching any covenants so unlikely that the bank will recall it. I am sure they have far more loans at risk currently than this one but will be just as shareholders should be monitoring the situation.

[westcoastrich] 04/10/2008 21:01

The problem as I see it here is that the banks can call in their loans on demand. In the present climate companies with debt are susciptible to go bump in the night, without warning.

[welsheagle] 04/10/2008 19:10

Can you give us the jist of what Edison said, Jaknife.

[cpm] 02/10/2008 16:50

Received mine 9/9 with TD Waterhouse.

[anteos] 02/10/2008 09:00

I received mine from selftrade on the 17/9?

[whiterussians] 29/9/2008 13:07

anyone know when the debt is due to be renegotiated/facility renewed?

[carlos panda] 29/9/2008 12:51

Anyone else not received the recent dividend yet?

edit: Apparently the bulk cheque to Barclays Stockbrokers has been 'lost in the post' and a replacement is on the way! Amazing - have they never heard of electronic transfers!!!

[scburbs] 22/9/2008 14:03

Whilst "if" is a very small word, it is very LOUD in the above posts, as it has been on all posts about ATCG cashflow for sometime.

I continue to hold but definitely think it is time for management to back up the words with some actual cash!

[staymour] 22/9/2008 12:30

Agreed, if they can demonstrate working capital management and deliver reduced net debt, then the price will respond favourably, and as you say could become very tempting to a predator.

[jwe] 22/9/2008 09:44

Quite a lot of buying activity here recently(since the fall) and support when there are sellers.I`m just wondering a couple of months ago there was a report in the press of a possible management buyout,which was subsequently denied.Perhaps at these levels there is now some interest either as a MBO or a preditor.
The reason we are down here is purely because of debt and,if that were now to be coming down sharply(and the management would know) then these are way too cheap

[moob] 18/9/2008 13:09

Have lehman given them their dough?

[penpont] 15/9/2008 12:22

IC have updated their share tip and reiterated Buy:

Big seller hits AT Communications shares

Created: 12 September 2008 Written by: Nigel Bolitho
In today's febrile stock markets big share sellers can knock smaller company share prices hard. Following the latest AT Communications results for the half year to the end of June 2008, the sale of 200,000 shares seems to have cut the share price by 30 per cent (to 12p). But that vendor may have been precipitous because the figures are better than they seem.


On the surface, describing the half-year figures as a 'robust performance' seems slightly disingenuous. After all, the profits halved, net debt rose £2.77m to £22.24m and working capital (defined as inventories plus trade receivables less trade payables) jumped £10m to £17.28m. But there were offsets. For starters, AT spent a net £800,000 setting up a new business to provide engineering maintenance to non-BT customers - it has already generated £45m of pipeline orders and enquiries. Secondly, the increased debt seems to be due to slow paying from a major customer. If a number of costs, such as amortisation and share-based payments are ignored, underlying half-year operating profits rose 9 per cent to £3.4m. Indeed, to counter scepticism, the company reports that "long-term prospects remain very encouraging" as it sells internet-based communications equipment both directly and via resellers.

Brokers don't appear to have changed their views that 12 months' sales should top £100m (£88.4m) and underlying operating profits could double.



SHARE TIP UPDATE
Buy

The move to develop business with telcos other than BT makes a lot of sense. Following last week's price collapse, the shares are now a recovery buy.

Last IC view: Buy, 32.5p, 14 Apr 2008


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[moob] 15/9/2008 10:45

directors have prob just paid themselves a bonus out of the kitty and invested it in today? what was their take home and also bonus lastyear??



edit :

page 24

last year their bonus was 258k - lol
the ceo's total remuneration was 392k

[davidosh] 15/9/2008 10:32

I certainly think a show of confidence and investment was needed by directors at these low levels just not so sure that a few thousand was quite the level I had hoped for. It may be that their own finances are now stretched but to increase their holdings by less than 1% of their original position in the case of AT and 3% in the case of SK is far from confidence boosting. All credit to the new FD though in terms of doubling his financial stake at cost no doubt.