||EPS - Basic
||Market Cap (m)
Real-Time news about Dawson Hldgs. (London Stock Exchange): 0 recent articles
|markt: Dawson almost doubled recently...offer...
looking round to see any other companies as attractive bid targets
ILX would make a good acquisition for another company imho...elearning etc, has products available on line for purchase incl. 'apps'. (see what apps download numbers + RNS did for Cupid share price !, 130p to 190p in a few days)
OK, ILX is not very apps exposed at present....nothing stopping new products to expand in that area...
With declared expected 1.4M PBT (see RNS)....if buy the co. and get rid of 1/2M dirs. costs, 1/2M say for AIM, 100k for other dirs, pay off the debt to save 100k ('were' paying high % , now lower, now down to approx. 1M on next accounts imho) and maybe bits and pieces to add up to another 1/2M then 1.5M cost saving maybe...
1.4M PBT + 1.5M extra profit due to cost reduction = approx. 3M.
And cap. value is only 7M. (cap. value is less than turnover, unusual imho)
CAP. VALUE/EBITDA = 2 ! Super cheap !..too cheap
And global sales. offices abroad. Rapid growth in sales. And 1.8M PBT pencilled in for next year. The price doesn't make sense to me, except that perhaps the market needs to see the actual annual results officially published before it takes any notice...
What other co. would/could perhaps be interested in a co. like ILX ?
Any ideas ? (perhaps from outside UK....not many/any bigger elearning cos. in the UK that I can think of)....there is a smaller elearning co. but I assume they could not afford ILX....
Pearson are interested in elearning and doing acquisitions...but not in the specific products that ILX currently offer I think...professional qualifications...whereas Pearson is more involved I think in mass markets sales/clients...although there is a weak link of sorts with financial sector, the FT and selling data/news ...well ILX sell financial training courses as some of the their courses...and did classroom courses for investment banks till they closed CTG
In USA I assume there must be some elearning cos.....an acquisition to provide cross selling, access to overseas sales offices...surely useful for some co. out there....|
|cockneyrebel: "by providing the certainty of a cash offer at a significant premium to Dawson's share price"
That looks like an advert to the other bidder that are about that they need to stump up cash.
17.7p is nailed on, NWS aren't allowed to back out unless something extremely material occurs, Dawsonera burning down so I'll sit back and wait for my 17.72p to come into my account and my shares to get gobbled up or I'll see another bidder move in with a higher bid.
|abc125: Commenting on the Offers, Hugh Cawley, Chief Executive of Dawson said:
"The Board of Dawson believes that Smiths News's offers, by providing the certainty of a cash offer at a significant premium to Dawson's share price, is an excellent outcome for shareholders. This follows the Board's successful restructuring and turnaround plan, which first rescued the Dawson Group from the risk of administration and more recently returned the group to profit growth, culminating in a number of expressions of interest being received from potential buyers of the whole or parts of the business.
Looks like more than one bidder was interested.|
|davydoo: Interesting point Dazzaa, I wonder how long ago the funds and PPF were first approached about the bid and possible value of an offer? makes me wonder if the announcement was rushed out a little sooner than intended to ensure there was still a premium to the market price as the share price shot up over the past few days.|
|abc125: I had been hoping for a little pullback to top up some more but it looks like its not to be. I agree with others that EPS of 2p looks in the bag for 2011 and given the potential for future EPS growth of 20%+ p.a. minimum, a present PE of at least 10 (i.e. a share price of 20p) looks right to me.|
|davydoo: Interesting point CR, and makes you wonder whether the bidder(s) should have acted quicker? the share price went from 5p to 9p on the bid news, then drifted back down to 7.5p, if theyd have come in at that point with a 12p bid, pre results, that deal might have got done. Although I guess a lot depends ont he BoD and their advisers, as to whether they would have recommended that bid, as they would have already known about the strong trading performance. At 12p already, youre right theyre going to have to bid a premium from here.|
|davydoo: thanks sportbilly very helpful. certainly suggests the tap is likely to have turned down in terms of the volume we see being sold by Schroders. I had a similar view to CR that within 2 weeks theyd be all out, but if the remainder are spread across many discretionary portfolios that may suggest otherwise.
Im still looking out for a possible large delayed trade from mid morning, when the bid suddenly dropped. If Schroders have stopped then any buying is going to have to pay handsomly to get stock, because wheres the supply? who is going to sell at 12-15p with the excellent results just announced and bid prospects still out there?
My first thoughts on reading the results were, this is a £20m co. regardless of a bid, and that still implies an approx doubling of the share price from here.|
|jailbird: looks like it Davy,
agree with the ability to sell at mid-price is a good thing for the share price.|
|davydoo: good point sb, and helps to explain why the share price is holding up in the wake of schroders selling, if they're waiting for a buyer each time.|
|davydoo: Great find, thanks CR. Having only recently bought my first ipad and ebook I am astounded at the potential for those that get it right in this space. The opportunity for colabortive learning in the academic sphere is great for Dawson.
I was looking back through reports and RNSs today. Im not worried at all now by the continued Schroders selling, when you realise how much they were selling before the price spike on the bid news. They went from 17% down to 10% over the previous year, so as speculated they either didnt rate the company, or had other reasons for selling, concentration risk, diversification etc. The pace/volume of selling has actually slowed.
Also spotted something i havent seen before in the last annual report, a commitment for executives to reach a holding of shares of an equal value to their basic pay over a 5 year period from appointment. In the past this would have represented a small number of shares or percentage of the mkt cap, but for the CEO Hugh Cawley this now represents a commitment to acquire approx 2.5% of the company (assuming the current share price) over the next 3 years.
So bid prospects aside I wonder if this is something on his agenda? though I guess 3 years ahead is a long time for this company when it looks back through its experiences in the last 3 years.|
Dawson share price data is direct from the London Stock Exchange