|Yes, things progressing nicely. It looks like integration of the acquisitions is going well and the new MD has been a good appointment.|
|Fairly encouraging interims. Modrus should bulk them up and justify increases in management expenses.|
|Trading update due Monday.Comments on increased sterling costs v cost synergies and sales [gains hopefully] are the key for me. Early days for news from the Modrus acquisition. If they make further acquisitions I do hope they have a rights issue/open offer, whatever happened to the preemption principle...|
|"Subject to General Meeting, Nasstar will acquire Modrus, a competing provider of end-to-end per user managed services including hosted desktop services and unified communication. The £13m acquisition (£11.7m cash) is funded by a £13.3m placing at 7.5p, and offers further sector specialisation in addition to increased scale, and diversity of the customer base. Additional funds raised will reduce forecast net debt, accelerating Nasstar towards an ungeared balance sheet and continuing opportunities for further consolidation of an attractive market niche."
Update from finnCap on research tree|
|Rights issues have become very expensive to present thanks to EU Law|
|Placings are never to the advantage of private investors. I always vote against giving companies the authority to do them. If the intention is to make acquisitions why can we not have a rights issue well in advance of funds being needed.|
|Read Northland Capital Partners's note on NASSTAR PLC (NASA), out this morning, by visiting hxxps://www.research-tree.com/company/GB00B0T1S097,
"Cloud software services provider Nasstar is showing the benefits of its acquisition programme and it is investing in widening the range of sectors where it has a strong market position. Contracted monthly recurring revenues have increased from £942,000 to £1.2m during the year despite the loss of a couple of large customers. Recruitment, legal and financial services are the main sectors where Nasstar has a particularly strong market position..."|
|Apologies richjp, I was referring to ThomastheTank1 who had made an appearance on both NASA & 7Dig.|
I have not posted on 7DIG as far as I know and having had a look at some of the more recent posts there briefly I could not see a user name similar to mine.
Most of my waffle is now usually where Kestrel have a stake and in particular GHT which is my largest holding.|
|Video interview with Nigel Redwood
Nasstar PLC (LON:NASA), the cloud service provider, increased adjusted pre-tax profit in 2015 and that is thanks to benefits of integrating acquisitions, its chief executive Nigel Redwood tells Proactive Investors.
Nasstar is cautious not to make acquisitions for growth alone and seeks key strategic justifications. Its most recent acquisition, VESK, in late 2015, the company found several benefits, including James Mackie, the founder whom Redwood was keen to get on board and has appointed Group Sales Director.
But organic growth is also important to the future of the business. “Hence, in 2016 we are putting a lot of investment into sales and marketing. To re-launch under one umbrella brand name which will be Nasstar,” he says.|
|Been a long term holder here as well richjp, I'm hoping the long term goal here is a takeover at 20p. I had also read FinnCaps morning note ThomasTheTank1 and look forward to a full brokers note in due course. (I have also noticed you have appeared on the 7DIG board - one for the brave but finnCap have a target of 38p and Investec 32p , so lots of uplift potential!)|
|I bought some time ago and have added today. Kestrel have a holding here and I normally follow them when I can.
There was a positive write up in Shares mag about four weeks ago or so, saying that the acquisition was in effect a reverse takeover and could transform the company.
It did say that if the results were good in April and they did emphasise "if", then things could be very good indeed in the future. It seems that the results have lived up to expectations and the fact that they are paying a divi, albeit a small one, suggests confidence in their cash flow.
I am a bit down on my initial purchase but am not bothered about that. I am not a trader and am prepared to bide my time and may possibly add again if all goes well.|
|Read finnCap's note on Nasstar (NASA), out this morning, by visiting www.research-tree.com …
“Prelims reveal performance in line with January's trading update, delivering adjusted EBITDA of £2.9m (vs £2.9mE) from revenue of £13.8m (vs £13.7mE), and net debt better at £5.1m (£5.5mE). Prospects remain strong, and board confidence is expressed through the maiden dividend, as well as investment to accommodate a deeper management layer and the initiation of an enhanced marketing plan to relaunch a single brand and maximise organic growth: FY16 EBITDA moves from £3.8m to £3.5m, while maiden FY17 forecasts benefit from the investment, delivering 31% adjusted PBT and EPS growth from 13% revenue growth…”|
|Looks a sensible acquisition. Not sure I like the amount of cash being used.|
|Kestrel upped their holding again........ Hmmmmm CSI has a lot of cash at the moment and Royde (from Kestrel) is on the board there.|
|Could this get worse? Loss of largest customer overall and loss of MS revenue from largest direct client. Any insight on this. Who is the client that was acquired in August 2014?|
Did they actually say divi in 2016 or is that just your opinion? I could not spot such a statement in the results.
This is a share where Kestrel Investment have an interest and I have usually done OK when following Kestrel. I purchased some time ago and am still down slightly, but after today's statement and the positive view from TechMarketview I think another good set of results should get the share price moving.|
|Results out - appear to beat mkt expectations. Good start. Div in 2016.|
Acquisition pays off for Nasstar
AIM-listed hosting provider, Nasstar, has completed a respectable first half, which was boosted by its acquisition of e-know.net in January. Underlying Group revenue growth (for the six months ending 30 June 2014) was up 17% to £5m. Acquired e-know.net had underlying organic growth of 19%, while the existing Nasstar UK business grew 8%. Adjusted EBITDA margin increased to 21% from 10% in the comparable period last year. The overall picture has altered somewhat since the close of FY13, when total revenue was c£2.5m (+£100k on the previous year), and when the company was loss making to the tune of almost £3m (see Nasstar remodeled for FY14).
Nasstar appears to offer fairly standard Microsoft-based services, including hosted desktop and hosted Exchange. However, its emerging focus on the legal, finance and recruitment sectors could help it to build some differentiation amongst the mid-sized enterprises it targets. Its acquisition of Kamanchi (see Nasstar recruits Kamanchi) after the close of the half-year period supports this sector focus. Northampton-headquartered, Kamanchi provides a variety of IT services, including hosted desktop and consultancy services around buying and integrating recruitment applications.
If Nasstar can start to really make a name for itself in its chosen vertical sectors, we think there is potential for it to flourish. Of course, to gain real scale, another acquisition would be required. And given how fragmented the market is, there should be plenty of choice. The challenge will be identifying something of quality that can genuinely add sector expertise and capabilities.|
Interim results - looks pretty good
|Nasstar remodeled for FY14
|£3m loss, non profit making on current ops and pays 26 * earnings for an acquisition. Clutching at straws comes to mind.|
|With a RNS today
· Released a new version of the Hosted Desktop platform
· Continued development of the technology to run from geographically diverse data centre locations
· Identified e-know.net as an acquisition target and a reverse takeover was completed post period end (10 January 2014) for a total consideration of £13m
· Strengthening of the Board of directors through the appointment of new executive and non-executive directors post period end
· Enlarged Group now has an annualised monthly recurring revenue equivalent to in excess of £9m per annum|
|No dark clouds here-just a dark horse.DYOR|