|Business Direct Group
||EPS - Basic
||Market Cap (m)
Real-Time news about Business Direct (London Stock Exchange): 0 recent articles
|dibbs: I would guess that they are trading as normal, ie loosing money until such time as they run out of cash and then it moves out of their hands. Expressions of interest can very quickly disappear once the interested party sees a fuller picture.
I am amazed that todays news has put 60% ish on the share price. Did I miss something??
|funkyceo: Joe of course it is, unfortuantly for us all it doesn't happen over night. If this company was already making 10% ebit no doubt the share price would be upwards £0.25
I'm guessing Directors will also be in a closed period until end of year results are out next month so couldn't buy now if they wanted too. Tim Houstoun did buy only a couple of months ago|
|dibbs: MM's moving down today could equally indicate a large sell being worked, yet to be reported? Falls are not always MM games IMO.
The fears of a slowdown/ recession will impact on BDG for sure. How much I don't know, but the outlook for many businesses is less good than a few weeks ago. Less field engineers will be using parcelXchange in a slowing economy, just as volumes of products distributed for other customers will also reduce.
I sold a few days ago with these concerns on my mind, the security of more cash is comforting! With profitable quality companies looking very cheap, companies like BDG aren't going to attract much investor interest in a more defensive market.
Good luck to those of you who continue to hold. I reckon that these retain the potential to double or halve their share price in a day, so anything could happen!
|tara7: Director buying, sales contracts on the up, and profits on the way. Share price is in drift mode, however, you will, i am sure, be happy with the stock price this time next year. A bid is also on the cards, and in my view that could come any day.|
Quite a few more shares in issue now, than when these were 100p, not really a fair comparison. At a share price of a pound BDG would have a market cap of £208 million or so! Lets get to 4p first.
Results are poor, as expected. The current trading and forward statement are much more positive. Cash is the worry, although if they are now cash flow neutral or positive then things look better.
Currently the market cap is very low, plenty of scope for recovery if the next results really do improve IMO. At this sort of price I'd think that BDG could be worth buying up by a larger operator for the ParcelXchange network alone...
Problem is that since the 40p days the number of shares in issue has risen dramatically. Market Cap of the company now at 40p would be pretty meaty compared to a couple of years ago.
The only interest in this has been from RHPS in recent times. A couple of resulting spikes and a subsequent pull backs. BDG will possibly be a good recovery play longterm if they do not have to raise more funds. In a weak market as we have at the moment loss making companies with debt are not really finding it easy to make share price progress.
With the last fundraising at 3p it is not such a great surprise to see the price back to that sort of level. I suspect that there is a overhang here that needs to clear before this moves up.
|dibbs: I have these on my watchlist as a good recovery story. Medium to longterm things are looking much better. I guess the fall back in the price has been due to the fund raising being thrashed out at a pretty low market price. I reckon it may take a while for the 40 odd million shares issued at 3p to be digested by the market before the share price moves up again.
|hazelton: Its certainly thinly traded but the volume since it has been sub 30p has been noticably higher , with some of the biggest trades in the last month or so. Being a delivery company its upside from the parcel exchange would be held back by the normal trading activities which may be no bad thing as it should also limit the downside. I think that the NAV is about 1/4 of the share price at present (comments). Does anyone know if this is held by any other competent hands ?|
|english1: A good day today for BDG, price increases with some lumpy sells. Looks like this might keep going upto the results at the end of the month.|
|lasata: Tip Update: Business Direct delivers further progress
Published: March 2005
By Graeme Davies, Investment Correspondent
Logistics technology outfit Business Direct Group has made solid progress in its opening months as a quoted company, justifying the 100% surge in its share price since Citywire tipped it last month.
The £30 million company increased its turnover by £500,000 to £3.77 million and gross profits from £903,000 to £1.12 million although heftier administrative costs pushed losses from £325,000 to £1.05 million.
Its shares are unchanged at 99.5p, Citywire tipped the company at 50.5p in early February.
Chief executive Tim Houston told Citywire: 'Its all going according to plan, we are building up our sales force all the time and the box, software and operations are all going absolutely according to plan.'
Business Direct has developed technology that allows it to leave 'intelligent lockers' on various sites around the country to which it delivers parts requested by field engineers overnight in time for collection the following morning.
Its Softlocker system alerts the engineer by text when the requested part has arrived, and the engineer then goes to collect the part from a ParcelXchange with an ATM-style card, which ensures security and real-time acknowledgement that the part has been collected.
By the end of 2004 there were 195 ParcelXchanges around the UK totalling 2,600 lockers, up from 2,300 at the time of its float in August. A further 500 ParcelXchanges have been ordered and management intends to install 30 a month going forward. It believes 250 ParcelXchanges will give it critical mass and beyond that it will fill in the gaps, there are also plans to expand the systems into Ireland and the Benelux countries.
Since floating the company has acquired Concord Couriers, which gives it a bigger infrastructure, two call centres and four depots as well as customers such as Xerox, Computacenter and Cable & Wireless. Earlier this month it bought Esprit In-Night Express from ANC Limited which also delivers to engineers over night, thus removing a competitor and opening up its potential customer base further. The deal also gives Business Direct an extra 800 drops a night.
The company has £2.2 million of its £3 million banking facility unused and Houston intends to make more acquisitions this year.
Business Direct intends to continue growing rapidly this year and beyond with expansion into Europe once critical mass is achieved in the UK, where the market is thought to be worth £100 million a year. It will move into Northern Ireland this month, the rest of Ireland before the end of the year and possibly the Benelux before 2005 is out.
Brokers remain positive on Business Direct with Daniel Stewart reiterating its hold recommendation and upgrading its forecasts. It has increased its profit forecasts for 2005 from £1.05 million to £1.36 million and for 2006 from £2.2 million to £3.2 million and says it envisages upgrading its forecasts further.
Citywire tipped Business Direct as a long term buy in February and we retain our faith in the company and its growth prospects. Investors who have enjoyed the 100% rise since our tip may be tempted to cash in some profits but hold on to a residual stake for the long term.|
Business Direct share price data is direct from the London Stock Exchange