Avesco Share Discussion Threads

[quepassa] 03/10/2016 11:07

Dividend received on account today @ 2.5p per share.

Thanks Avesco!

Keep 'em coming please.

ALL IMO. DYOR.
QP

[qs99] 03/10/2016 09:16

more to come imo i agree

[sailing john] 03/10/2016 09:11

Don't forget the balance sheet!
Equity of £44m (Mainly rental assets and net cash) at the last count (and no silly intangibles!)
MC still only £62m at 325p
Add to that profit expectations discussed above
GL - SJ

[qs99] 03/10/2016 09:01

be interesting to know EV/EBITDA levels though and free cash being thrown off as that will provide a view on yield and acquisitions etc...IMO

[interceptor2] 03/10/2016 08:33

Significant news on Friday now being digested :o)

30th September was the year end and the last ahead trading update was issued just before the paralympics in Rio, AVS don't issue many trading updates, but I wouldn't be surprised to see another one soon.

Still good value on a current year PER of 13 which is likely to be lower imo.

[qs99] 03/10/2016 08:22

I'll go with what is on my Barclays screen....but MM blog helps put into context even if there is an error! EBTIDA is key me thinks to market and this sale helps move things along IMO...DYOR but nice opening today

[gdjs100] 03/10/2016 08:16

In your blog you haven't taken off tax when going from operating profit to EPS - tax rate will be around 40pc for CT US.

[qs99] 03/10/2016 08:15

creeping up again

[michaelmouse] 03/10/2016 07:34

Next few days should be interesting.

[qs99] 01/10/2016 15:42

Ill be happy with his £8 target if taken out! Thanks for posting

[michaelmouse] 01/10/2016 09:41

Some quick maths this morning. Looks even better than I thought:-

[qs99] 01/10/2016 08:25

onwards and upwards next week IMO as the market fully digests this news....as you say, yield IMO is great cash generative, $:£ helping translation of profits IMO, let's hope we get some further coverage....

[deanowls] 01/10/2016 06:15

Thanks mm, that's round about where I have it.

[bones] 30/9/2016 23:02

Little piece from the other side of the MBO:

[michaelmouse] 30/9/2016 19:43

deanowls - The interims state cash and cash equivalents around £23m. They have received an additional £5m in cash from the announced sale of Presteigne and they usually add £2m additional cash in the final 6 months (possibly more this year given that they traded comfortably ahead). £23m+£5m+£2m = £30m.

Debt at the interim stage amounted to around £26m. Unless I'm missing something then the company should be net cash at around £4m-£5m. Of course they could use a big chunk of the cash to pay down the debt again. Whatever they do it's a fabulous balance sheet though, and a very profitable, cash generative growth company.

In fairness it does say that the net proceeds from today's sale WILL be used to pay down more debt, but it makes no difference to the net cash position.

[interceptor2] 30/9/2016 19:16

Markets does seem a little slow to react to today's news, it is very welcome news that they are selling a not particularly profitable non core division and are receiving £5.0m cash to pay down the relatively small amount of borrowings. Will be in a net cash position soon and also benefit from a further reduction in finance payments which will help the bottom line further.

AVS are now a very profitable company and focussed in a successful niche market, so chances of further re-ratings are likely.

[qs99] 30/9/2016 17:00

Monday should be interesting as not sure market has fully woken up to this yet...IMO

[deanowls] 30/9/2016 16:41

Where do you get 30 m from mm?

[michaelmouse] 30/9/2016 15:25

Last post from me today and then I'd better go and do something useful.

Just to illustrate how cheap the company still is even after today's small rise.

The market cap. is about £58m, after today's announced sale and referring back to the interim results, I'd guess that cash on the balance sheet is around £30m. So cash makes up more than half of the market cap.

Creative Technology is highly profitable and cash generative.

Ridiculous valuation still.

[the big fella] 30/9/2016 15:15

:). Nice break north now. Plenty of blue sky ahead.

[michaelmouse] 30/9/2016 15:10

Wish I was always that accurate. Sometimes prophetic and occasionally pathetic. ;)

Such is investing.

[michaelmouse] 30/9/2016 15:07

Yep my thoughts entirely sailing john.

I did post this back in January 2015 which (if you don't mind my saying) now seems quite prophetic:-

[sailing john] 30/9/2016 14:57

Michael - I agree
Murray holds 27% and might be ready to enjoy the financial benefit of all his hard work at some point in the not too distant future.

[michaelmouse] 30/9/2016 14:56

Possibly BIG FELLA.

The next few months should prove interesting though.