AT Communications Share Discussion Threads

[anteos] 05/1/2009 17:00

thanks for the update MG. I was annoyed at the positive spin they give in the interims, when the debt actually rose. I've been burned with RBS and MPH, so I tend to be very sceptical about what CEO's actually say.

[davidosh] 05/1/2009 13:58

The new phone system at Carpetright does seem to work well....All the stores are on 0844 numbers.

[masurenguy] 05/1/2009 13:37

Why such pessimism ? This is not a consumer facing business and they are able to offer both consolidation and a streamlining of services, with attendant cost savings, to their existing and potential customer base.

When they announced their new Carpetright and Comet contracts a couple of months ago Alex Tupman stated that "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."

The key issue here remains the objective of achieving a significant reduction in current debt levels and this might be accelerated if they are subsequently able to conclude a deal to dispose of the subsidiary (one assumes it must be Rocom) to the third party who made an 'unsolicited' approach in November.

[anteos] 05/1/2009 12:48

They've been quite quiet recently. I'm expecting the next bit of news to be a profits warning? Has this already been factored into the share price as its dropped so much?

I'd also like to see the debt paid down, but that could be a pipedream!


(holder of atcg, hoping for the best, expecting the worst)

[jasper28] 04/1/2009 20:08

Not a deal going on here then, i hope the new year brings all holders something to brighten up the gloomy outlook.

Just need to sit tight on this i think for the next 6month at least, before we see anything like a bit of movement...

Unless the sale of Rocomm is to be considered.

[rivaldo] 09/12/2008 15:28

Intriguing 50k buy earlier pushed the price up. Let's hope there are straws in the wind.

ATCG are hopefully also benefiting from the huge decreases in interest rates via the amrgin over LIBOR (see the earlier discussion).

EDIT - perhaps no straws then!

[masurenguy] 07/12/2008 14:55

Contract Wins and Subsidiary Interest
RNS Number : 2398H
AT Communications Group Plc
03 November 2008

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 £1m 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 an 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."

[anteos] 07/12/2008 13:50

every few days I log onto this page expecting to see the company going bankrupt. Is there any more info?

Is it me or has the news page changed:



I'm sure they had an article about a contract win and possible interest in a division.

[welsheagle] 06/12/2008 15:03

From November's 'Company Refs', when price was 9.5p:-
a/ Prospective PE ratio of 1.66.
b/ Forecast growth in eps of 1.92%.
c/ Dividend of 11.6%.
d/ Price to sales ratio of 0.07.
e/ Net asset value of 35.4p per share.
f/ Turnover up from £11.6m to £88.4m in last five years.
g/ Gearing of 54.9%

[rivaldo] 10/11/2008 14:10

Moving up 0.5p on each 10k buy it seems.

EDIT - maybe tomorrow then!

[rivaldo] 09/11/2008 21:15

Mas, having looked at the 2007 accounts the previous facilities were all at 1.5%-3% above LIBOR, and the new facilites were on much "improved" terms. So as you say it's not unreasonable to assume that ATCG should benefit from the 1.5% interest rate cut assuming LIBOR comes down..

[moob] 09/11/2008 09:58

i think they are fixed, in which case, no, hence they are having to sell divisions to survive??

[masurenguy] 09/11/2008 09:50

"Incidentally, is anyone aware of whether ATCG's borrowing costs will reduce given the 1.5% base rate cut"

The refinancing through HBOS, announced back in April, was for a 5 year term loan of £16.5m and a revolving credit facility of £7.5m. No mention was made of the actual terms although one might reasonably assume that they would likely have been linked to LIBOR. If so then interest expense would be reduced in line with reductions in LIBOR following last Thursdays rate cut.

[rivaldo] 09/11/2008 07:52

:o)) Hey, two out of three ain't bad....

More here FYI - again the speculation is that it's Rocom that will go. Incidentally, is anyone aware of whether ATCG's borrowing costs will reduce given the 1.5% base rate cut (haven't had a chance to look yet myself)?



"Rocom sale rumours spark channel interest

Broadliners ready to swoop as AT Communications admits it is in talks to sell one of its subsidiaries

Written by Doug Woodburn

CRN, 07 Nov 2008
Broadliners have begun circling voice distributor Rocom after its parent company, AT Communications (ATC), admitted it is in talks to sell part of its business.

ATC revealed last week that it had received unsolicited interest in one of its three subsidiaries, but has refused to confirm speculation that Rocom is formally up for sale.

The alternative investment market (AIM)-listed firm also owns reseller ATC Solutions and services firm Servassure.

Richard Carter, managing director at Rocom, said offloading part of the firm would help ATC cut debt, but said a sale of Rocom is not a certainty.

"People have put two and two together and come up with five.
We have received interest in various parts of the group and our strategy is to see if we can take it further," he said.

"In these times the City views gearing as an important factor, so reducing debt is important."

A senior distribution executive said his firm would be interested in acquiring Rocom, but refused to go on the record.

Andy Gass, managing director of broadliner Computer 2000, said: "Given the current demand environment, there is going to be a lot of consolidation in the coming year. Rocom is one of the first distributors to come into play and many distributors will follow in the months ahead."

Meanwhile, the prospect of ATC breaking up was greeted by some as another nail in the coffin of the hybrid channel model.

Scott Dobson, managing director of distributor VComm, said: "Rocom is a box-shifting voice distributor and does not sit well in the group. It has been proved yet again that the hybrid model does not work.""

[scburbs] 04/11/2008 13:26

LOL! I would have preferred it if the analysts pointed to either the ATC Solutions, Servassure or Rocom businesses as there is nothing like hedging your bets in the current market!

[rivaldo] 04/11/2008 11:35

Small mention in the Times today FYI:



"AT Communications rose 2.5p to 12p after the internet protocol group revealed it had received potential interest in one of its subsidiaries. The company did not name the unit but analysts pointed to either its Servassure operations or its Rocom business."

[valentine] 03/11/2008 18:45

'Multi-million contract wins & potential interest in subsidiary'

Multi-million what? Are they talking currency or number of calls? Pounds, Dollars, Zimbabwean dollars.. what?

Tadpole Technology, Symphony and Eckoh used to use the same terminology and it certainly did not refer in hard cash income.

[rivaldo] 03/11/2008 15:06

Bought a few back first thing this morning to see what happens, especially as this seems like the bottom - if they do get more than or even anything like £17.6m back for Rocom the Group would be transformed. According to this it's Rocom that's being sold (though they're in error in noting that the RNS said it was Rocom...):



"ATC Group Ready to Sell Rocom - 03/11/2008"

[jwe] 03/11/2008 09:06

Not sure they would get that much for Rocom.I would think for that sum they could buy the whole company with ease

[masurenguy] 03/11/2008 08:16

L2 currently 2 v 1 @35k v 3k.

[masurenguy] 03/11/2008 08:13

"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."

It could be Rocom that is potentially in play. The two new contracts announced today were obtained by ATC Solutions and Servassure, their direct sales and service/technical support divisions. Rocom, effectively their wholesale division, last year contributed 47% of sales but only 27% of EBITDA. However they are a rapidly expanding division with major contract wins from Ericsson, Avaya and Amazon announced over the past 9 months.

Most of the current group debt relates to the purchase of Rocom for £17.6m just over two years ago. If an offer north of £20m was made for this division it just might be tempting to the board since it would still leave them with a very profitable business with sales of circa £50m and no debt. Interesting to see if anything develops along these lines over the next few weeks.

[nickcduk] 03/11/2008 07:49

I would guess its Rocom that has generated the interest. If they managed to sell it for what they paid then they could pay off most of their debts. That should trigger a re-rating but any disposal would likely to be earnings diluting. Need more detail.

[moob] 03/11/2008 07:39

Group's continued priority
is to reduce debt levels

[welsheagle] 03/11/2008 07:23

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."