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Real-Time news about Morson Grp (London Stock Exchange): 0 recent articles
|red ninja: I've got to say I agree. Morson has been expanded by aquisitions of bancrupt agencies and foreign offices. This expansion has hit the bottom line, but that is what you would expect in difficult times. The company should benefit when the new offices and agencies have established themselves.
The canceling of the dividend has wiped out the share price, but last results showed decent coverage of the dividend.
Thus this all looks a bit contrived with the company management getting a bargain and the small PIsbeing mugged....|
|red ninja: Copy of Darwen Lad post on iii:
The term daylight robbery springs to mind. Morson, which came to the stock market at 160p in 2006 is now being bought back by the Morson family at 50p a share.
The Morson family, in the form of chairman and his chief executive son, have overseen a dramatic decline in the company's fortunes since its flotation. Revenues have nearly doubled, operating margins have halved and staff numbers have risen four fold. Last December the company axed its final dividend with the result that the share price roughly halved from 80p to 40p.
Without the dividend cut the company's shares would probably still be trading around the 80p level and yielding around 7.5%. The company's balance sheet gave little hint of the need for a dividend cut. The company remains profitable, its interest cover is over 8 times, and a maintained 6p dividend in 2011 would have been just over two times covered. As it is the 2p interim dividend is more than 6 times covered.
However, the company has now warned that it could not even guarantee any dividend at all will be paid in the current year. No wonder the share price collapsed, and the Morson family, which owns around 45%, can buy back the company for around 4 times earnings. They are buying a business with net assets of around £60m for £22.5m. Stripping out goodwill, the price being offered its still a discount to net tangible assets. The sole independent non-exec says that it is OK.
So much for the idea that backing a family run business should encourage the good stewardship of a company's assets over the long-term. This is a grubby deal which deserves to be voted down. But given the size of the family shareholding, and the irrevocable undertakings of some lilly-livered institutional shareholders, it will almost certainly be nodded through.
Wouldn't it be great to see David Medlock, whose private Sitec recruitment business has recently taken a 6.1 per cent stake in Morson, mount a rival bid and kick out this discredited management? Sadly it is probably too late.|
|bottomfisher: What is the point of Morson issuing the following trading statement - "Despite the continued challenging business environment trading for the first six months of the financial year is line with the Board's expectations.".
What are the "board's expectations"? Do they expect profits to rise/fall/mark time? Perhaps MRN's select group of institutional sharehlolders and one or two brokers know what it means. However, ordinary shareholders do not have a clue.
I would love to believe that MRN is a sleeping beauty whose share price will one day spring to life when the UK economy finally starts to recover. However, the paucity of information from the board (small shareholders are not allowed access to the slides for the investor briefings), and the inbred nature of the board (only one independent non-exec), suggests that this is one family run business which would be better off as a private company, rather than a quoted PLC.|
|red ninja: Oh dear, Greece, a hung parliament, DOW falls all sending the share price down.
I wonder how much public sector/ defense cuts will damage Morson...|
|manchesterbill: Morson's annual results fixed for Tuesday March 23. Only three weeks to go to learn whether this company is a serial disapointer, or has a long-term future. Maintaining the divi is critical to current share price since the company has already signalled that its current year's profits (to end-December 2010) will be down on the 2009 profits it is going to announce on March 23.|
|johnsoho: Hi Whites123,
In summary what IC said about Morson was that the share price had falled as steeply as those of any recruitment business of the last 12 months but that its operation was rather different to most of them.
Morson had a database of 200,000 contractors and had placed some 9300 of them mainly with UK blue-chip companies in 2008....a third of Morson personnel are in aereospace and defence and nearly a quarter in thr rail and nuclear industries....the only obvious cyclical industry was construction which accounted for just 7%.
Most of Morson contracts are taken on what its either one of several preferred suppliers or when its the managed vendor which means it controla a companys temporary recruitment requirements....last year managed vendor agreements accounted for 50% of turnover and customer contracts tend to last between 3 to 5 years but some of Morson contracts are more than 20 years old.
The downside is that Morson pays most of its contractors weekly but has to wait some 43 days for payment from clients. The balance sheet shows trade and other receivables of £75.6M dwarfing trade and other payables of under £30m...Forecast 2009 adjusted profits expected to rise from £11.6m to £12.4m|
|a2336418: When the share price broke up out of the short term rising channel above 170 it seemed sensible to sell. It could now retrace all the way to the bottom of the medium term rising channel....that is to 90p....when I will be tempted to increase my holdings again.|
|goodgrief: Very little reaction to yesterday's results. There has been steady selling, but the share price hasn't moved south. Revenues and profits up significantly, on static revenues. I imagine Techinvest will continue to call it a 'Strong Hold'.
Some excerpts from yesterday's announcement.
Merant announced a rise in profits and revenues for the first quarter but retained a cautious outlook on earnings and revenue performance.
Q1 ended July 31, EBITDA of 1 mln usd, up from 141,000 in the same period last year, on revenue up 1.2 pct to 29.8 mln usd. Pretax profits grew to 1.2 mln usd from 0.6 mln.
Merant chief executive Gerry Perkel said profits improved despite continuing economic challenges worldwide.
The company said revenue visibility was strong and maintenance fee revenue
accounted for 53 pct of total revenue in the first quarter.
Licence fee revenue accounted for 35 pct of total revenue and included 14
licence fee transactions valued at over 100,000 usd, of which one transaction
was valued over 1 mln usd.
Merant has cash of 67 mln usd, and no debt.
Merant said the longer selling cycles that exist in the current economy make it difficult to predict and forecast overall revenues in the short term.|
|goodgrief: Citywire comment :-
Software business Merant (MRN) attracted the attention of three directors earlier this week as its share price continues to enjoy a strong run.
The biggest spender was non-executive chairman Michael Gillard who snapped up 50,801 shares on Tuesday at 124p per share, a total cost of £63,000. This almost doubled his holding in the £126 million company to 126,774 shares.
He was joined by two fellow non-executives, Don Watters and Michael Berty who each bought 12,091 shares at 124p per share, each spending £15,000 in the process. Watters and Berty have now have 24,758 shares each.
Merant has returned to favour with investors impressively over recent months. In October it dipped as low as 70.5p but has since been on a steady upward curve, hitting 123p in recent days. Last night it closed unchanged on 122p.
Its share price improvement is linked to its improved performance. It moved into quarterly profit in the middle of last year and has since sweetened up investors with a £35 million return of cash.|
|mart the bluenose: Great to see some Director buying today.
Should give the share price a boost. Any idea when Q1 results are announced?|
Morson share price data is direct from the London Stock Exchange