|"The Board of Litcomp notes the recent rise in the Company's share price and announces that the Company is in advanced discussions with a potential offeror regarding a possible offer for the Company at 33 pence per share in cash.
No final agreement has been reached and so there can be no certainty as to whether an offer for the Company will or will not be made.
This anouncement is being made without the approval of the potential offeror.|
|Down we go Down we go|
|Well in that case, as they say in Dragons den, I'M OUT....|
|New GECR note out on LIT
Litcomp Plc* Interim Results: Maintain Buy Recommendation with 165p Target Price
Total no of shares
6.0 million (14.6 million fully diluted)
£2.1 million (£5.2 million fully diluted)
12 Month Range
Jason Smart, CEO
+44 (0)14 7656 0113
Litcomp, the provider of After the Event (ATE) insurance, medico-legal reports and litigation services, has today announced strong interim results, driven by an impressive performance from its After The Event (ATE) insurance business, Elite. In the 6 months to September 30th 2008 net profit before tax rose by 140% to £0.88 million, earnings per share doubled 100% to 9.2p and at the period end the company had net cash of £250,000.
Elite insurance produced further gross premium income and profit before tax growth with the former up 248% £14.5 million and the latter up by 91% to £1.48 million. The results show that the company expanded its business at the cost of margins, but that this was justified by an overall lower claims risk. New reinsurance treaties were negotiated from 1st of April and have increased the percentage of gross premium income retained which had a positive effect on some margins but increased Elite's exposure to claim liabilities. The company intends to use re-insurance and co-insurance to increase its underwriting capacity and cover new lines of business. Tighter capital and credit markets have constrained litigation funding and consequently up front premiums. While Elite's major commercial business pipeline remains robust, claimants are delaying litigation because of a lack of funding. The company expects this situation to ease in the New Year as new litigation funders have entered the market providing the finance to proceed with litigation.
The Medico-Legal Reporting business saw revenue grow by 8% over the corresponding 2007 period to £0.87 million, but failed to carry this growth through to the bottom line with the loss before tax up by 41% to £0.6 million. While Medico only comprises 5.7% of the group's turnover, Litcomp's directors are confident new business initiatives will continue to generate revenue growth.
Litcomp's remaining convertible note holders agreed at a special general meeting held on the 10th of December to extend their redemption until the 31st of October 2009. £2,615,700 worth of 10% Secured Convertible Loan Notes remain on issue and the extension provides more time for the company to refinance the notes in the new year. With each £1 in loan notes convertible into 3.3 ordinary shares, there is a potential dilution of 8,631,810 ordinary shares.
The increased revenue and profit in a difficult market shows that Litcomp has a robust and growing business. While the margins at profit driver Elite have contracted, the fact that profitable new business continues to be written is commendable. We are mindful of the potential dilution effect the conversion of the loan notes will bring, but were this to occur the majority of the company's debt would be wiped out and net cash would benefit at the expense of earnings per share. Despite this the company maintains a net cash position and a strong earnings base and with our 2009 and 2010 forecasts unchanged we continue to recommend the stock a buy with a target price of 165p.
Year to 31st March
Sales (£ Million)
Pre-tax Profit (£ Million)
Earnings Per Share (p)
Fully Diluted EPS (p)
Price Earnings Ratio
Dividends Per Share (p)
Dividend Yield (%)
I should declare that LIT is a corporate client of Rivington Street Holdings, for whom I work.
Rivington Street Holdings|
|Anyone know what the latest is on this one? I see a bit of profit taking seems to be occuring..
|Held off as I couldn't analse their figures. You win some/miss some but will keep an eye on it|
kicking myself with this one...thought about buying, but decided I would await their listing on AIM, purely on liquidity concerns!! DOH!!
Look forward to correcting my mistake after Xmas :-(
regards to all
|The interims are due on 30th December and there has been heavy buying in the last few trading days.The share price is now up by 250% since the summer and the reasons are the acquisition,the involvement of Nigel Wray,the growth rate and the proposed move to Aim in January.The next few weeks will be most interesting for this stock and one suspects there may be some media coverage if the results and forecasts meet expectations.|
|Has anyone given a forward forecast for LIT ?|
|+40% today hopefully this should continue tomorrow.|
|No probs :-)|
Thanks for the info
|Sadly serratia those that have purchased the loan notes are high net worth individuals that probably have committed huge sums & it's all been done.
Any share purchased in the market will not qualify for EIS but does have tax advantages re CGT if held for 2 or three years, the same as AIM.
Hope this helps.|
I've been watching these for a while and have seen the announcement.A couple of questions you may be able to help me with? Obviously I could buy the shares but I was interested in the loan note statement. If I understand it correctly they have issued loan stock at 10% convertible at 3p at a date in the future,are these available to the public to purchase? There is a comment re EIS relief I assume this is for holders of LitComp pre flotation or does a share quoted on OFEX qualify for EIS relief?
|although acquistions & start up have previously been on a lower scale, both have been hugely successful in performance....management is good here.|
|FOR IMMEDIATE RELEASE 7 OCTOBER 2005
ACQUISITION OF FAIRMONT HOLDINGS LIMITED AND PLACING TO RAISE
The Board of LitComp Plc ("Litcomp" or "the Company"), a national supplier of
medico-legal and psychological reports, announces that it has conditionally
agreed to acquire the entire issued share capital of Fairmont Holdings Limited
("Fairmont"), the holding company of Elite Insurance Company Limited ("Elite").
Elite has not traded but is at an advanced stage of applying for a licence in
Gibraltar as an insurance company, pending satisfactory funding, and intends to
specialise in After the Event Insurance (AEI).
In order to provide the necessary funding, the Company has, through its broker,
Daniel Stewart & Company Plc ("Daniel Stewart"), raised GBP3,605,000 of 10 per
cent. convertible secured loan stock 2008 ("the Loan Stock") The Loan Stock is
convertible into new ordinary shares at a price of 3 pence per share and will be
secured by various charges over the Company's assets. The Company will post a
circular to shareholders today setting out details of the acquisition and the
Loan Stock as well as seeking shareholder approval to the necessary increase in
share authorities at an EGM on 31st October 2005 immediately after the Company's
AGM, which is also to be held that day.
The Loan Stock has been placed with institutional and other investors including
Nigel Wray, who has invested GBP1,000,000, representing 28% of the total funds
raised, in the Loan Stock and will be entitled to approximately 21% of the share
capital, assuming conversion of the Loan Stock. Directors and Senior Management
have committed to subscribe for GBP150,000 of the Loan Stock.
Of the funds raised, GBP200,000 will be used to pay the consideration for
Fairmont with the remainder used for the necessary funding of Elite and required
The Company intends to seek admission on AIM at the earliest opportunity, and
the Company and Daniel Stewart are confident that this can be achieved in early
An Incentive Option Scheme for Directors and Senior Management will provide for
Options of 3 pence to be granted; 7 million Options will be granted upon Elite
achieving annual net profits of GBP1.5 million in any of the 2 years to 31st
March 2008, rising to 14 million options if those profits exceed GBP2.4 million
Commenting, Jason Smart, CEO of LitComp said: "This fundraising and acquisition
represents a major step forward in the Company's strategy of becoming a leading
supplier of financial, medico legal and other services to the litigation sector.
Following the integration and initial development of Elite, the scale of the
Company's activities will be significantly increased."
LitComp announced turnover and profit before tax of GBP3.195 million and
GBP0.197 million for the year ended 31st March 2005, an increase of 32% and 49%
in comparison to 2004.
The Directors of the issuer accept responsibility for this announcement
Jason Smart, Chief Executive Officer Tel: +44 (0) 147 656 0113
Paul Lavender, Finance Director Tel: +44 (0) 20 8500 4044
DANIEL STEWART & COMPANY PLC
Lindsay Mair Tel: +44 (0) 20 7776 6550
BISHOPSGATE COMMUNICATIONS LIMITED
Maxine Barnes Tel: +44 (0) 20 7430 1600
Notes to Editors:
LitComp is a national supplier of medico-legal reports through its subsidiary
Perfect Consulting Limited, which trades as Legal Reports and Services. These
reports are required by solicitors and insurers to quantify personal injury
claims. Each medical report includes the details of the accident, the claimant's
medical history, treatment and care requirements and the effects of the incident
on the claimant's work and social life.
Subsequent to the acquisition of Cox Associates, a leading provider of expert
psychological reports, LitComp now supplies reports not only to the Personal
Injury market, but also to the Family and Criminal market.|
They are clearly looking ato acheive £2.4 million profits, or it simply wouldn't be there in the Newstrack announcement.
And I would suggest that, this is one reason why a mega £3.6 million has been raised for a £1.25m mkt cap.....incredible.
The share price will make gains from today until it gets to AIM in my opinion & then this lowly valued company should start to reflect it's true worth, much better than some of the dross that has gone to AIM, qaulity & Nigel Wray can see it.
The share price would have to reach circa 6p for anyone to consider converting the options, to my mind that will be easily done of those sort of projections hinted at....on AIM I think it will easily surpass that level.|
|Hmmm, a few trades just lately including a 100,000 purchase today.
Wonder if the aquisition is coming soon?|
|A bit more activity Tony, looks like a 50k buy to me.|
|Nice to see it move at last Tony, I suspect when we get nearer winter Oct onwards this price will be nowhere to be seen, but even before that they hint of an aquisition, the last one was on a very low p/e & earnings enhancing, so all bodes well.|
|A slight nudge up today. This is very thinly traded and any good news will send this rocketing. I bought 40k the other day-the first trade on these for a couple of weeks!|
Litcomp beats forecasts
Litcomp's* CEO, Jason Smart is a man who clearly knows his numbers and will quite happily delight anyone who is happy to listen. And quite rightly so, as his company's numbers stack up very nicely indeed. Unquoted enjoyed a fine feast this afternoon, hosted by what is fast becoming one of OFEX's more convincing growth companies. Though if the medico-legal reports specialist had hoped that the lavish luncheon would sway otherwise unconvinced journos to the beauty of its proposition, its gastronomic efforts weren't required. The company today unveiled a solid set of numbers for the 12-month period to March 31st, which stand on their own as a testament to its single-minded, profit focussed strategy.
Pre-tax profits of £197,478 were almost 50% higher than the previous year as earnings equating to 0.377p per share also represented a near 50% rise over a year earlier Sales of £3,195,249 showed a 32% increase over sales for the corresponding period last year, as the company said it was confident that the progress would continue into the current year. With an additional 40 new clients coming on board since the end of September, it isn't difficult to see why Litcomp remains a convincing proposition.
In an industry which is being forced to adopt the IDS adage of "unite or die", the medical reports specialist is continuing to win business in a market that is being forced to consolidate. Litcomp's management team were today forecasting that the medico-legal reports sector to be on the verge of a period of major consolidation. Though anyone with hopes of a quick turn from the OFEX traded company falling prey to a rival better think again, as this management is convinced it can continue to grow the Litcomp proposition further, effectively ruling out an early sale. Indeed, finance director Paul Lavender told Unquoted this afternoon that going forward, he regarded Litcomp as the acquisitor rather than the acquired. Indeed, following the success of the Cox Associates acquisition, which incidentally was responsible for attracting 5 out of the 40 new clients brought aboard since September; one would hope that Litcomp would follow up with a similarly earnings enhancing transaction.
Meanwhile, Litcomp continues to retain the support of Cattles Invoice Finance Limited, with its facility recently increased by 30% to £1.3 million, providing more than adequate working capital facilities to support the Company through its anticipated short-term growth. And what of its possibilities for growth in the coming year? Smart hinted that news was in the offing. Indeed, from conservations this afternoon, it would sound very much like the company will diversify into a new, but complimentary area of business in the short term. Value added services to the solicitors Litcomp already serves would appear to be the most likely possibility, though through which medium it will enter this latest arena, is not immediately apparent. Any hopes of an early move to AIM should be forgotten, though with serial AIM company NOMAD and broker, Daniel Stewart on board as adviser, Litcomp is clearly leaving its options open.
Today's results comfortably beat our expectations. With the prospects for continuing growth looking good for the year ahead coupled with the prospect of some encouraging newsflow in the short term - possibly a whiff of corporate activity - shares in Litcomp remain undervalued. With shareholder funds of £1.037 million - largely stemming from financially solvent debtors - the share price is, somewhat unusually for an OFEX company, well backed by meaningful assets. At 3.375p, Litcomp's growth prospects and possible corporate activity are not reflected in the current market price. The company is capitalised at a paltry £1.327 million and is one to "buy"|
|This company with a constant record of 50% growth is on a prospective p/e of 5 after today's results|
|Here's the news I don't think folk have cottoned on to:
LitComp plc - Change of Adviser
LitComp plc Newstrack Announcements 15/03/2005
15 MARCH 2005
APPOINTMENT OF CORPORATE ADVISER
The Board of LitComp Plc, the provider of medico-legal reports, is pleased to
announce that it has appointed Daniel Stewart & Company as its Corporate
Adviser, with immediate effect.
Daniel Stewart will to my mind at least, be taking this company to AIM, this share won't stay on a prospective p/e of 5 or better on AIM, expect about 125% increase if I am correct & I warn it is my speculation, having said that it's dirt cheap & solid anyway.|