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Real-Time news about Lit Plc (See LSE:DBAY) (London Stock Exchange): 0 recent articles
|mr hangman: "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.|
|anna faelten: 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|
|high noon: 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.|
|outsider: Incredible announcement
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.|
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"|
Lit Plc (See LSE:DBAY) share price data is direct from the London Stock Exchange