Pinnacle Telecom Share Discussion Threads

[leedsu36] 28/1/2016 11:26

Using is the word you're looking for Pat,5p and we're back in.

Guffaw,guffaw.

[arlington chetwynd talbot] 28/1/2016 11:07

You are teasing me leeds, stop it.

[leedsu36] 28/1/2016 11:00

I'm not greedy 5p will do,we'll let the mxcp boys have the really cheap stuff,lol.

Guffaw,guffaw Pat.

[leedsu36] 28/1/2016 10:58

Oh and how ignorant of me,yes I have around £50k here @ around 7pish average held in my sip,but be my guest at bringing it down,could do with some more in there and abit of trading in tother.

Guffaw,guffaw Pat.

[arlington chetwynd talbot] 28/1/2016 10:55

You can call me Pat if yer want leeds, not me name though. Infatuated? Hmmm, wouldn't go that far. Use me? I don't drive stocks lower, you conflate me. I am not worthy leeds, I'm a drinker, glance at stuff. No threat to a living soul, it's all in the mind leeds.

[leedsu36] 28/1/2016 10:47

No Pat,it's just soooooooooooooooooo good you're still infatuated with us,keep up the sterling work.you'll know when we use you again.

Guffaw,guffaw.

[arlington chetwynd talbot] 28/1/2016 10:36

What's the story here leeds? Need I ask?

[bumpa33] 28/1/2016 10:33

Strange - offered all around the tracks in size, 150k, 100k, not much on the bid. Can't imagine why people aren't buying at a 100% premium to 70% of the stock...?

[leedsu36] 28/1/2016 10:14

Then why do you follow him full of?

You are in these shares because you hang on chimers every breath and know nowt yourself,you try your best to entice him back with your little innuendos,stick to guessing full of,we'll let you know the real deal info when good and ready,you just carry on being led by the ring through your nose.

[crapcrap] 27/1/2016 15:21

and you know because...... ah yes, you've been chatting to the ceo again!

[bumpa33] 27/1/2016 10:14

Mm's offering all around the blocks 100k, - bid works in small only.

[crapcrap] 26/1/2016 14:32

there must be something in the pipeline that's stopping this from crashing
to 4.2p!!!!

[freddie01] 25/1/2016 23:47

Pinnacle just getting started with double buy


SME provider swoops on Leeds-based VARs Ancar-B and Weston

The channel's newest buy-and-build outfit, Pinnacle Technology, has acquired its first two resellers – and is on the lookout for more targets with £2m to £5m revenues.

Pinnacle says its acquisitions of Leeds duo Ancar-B and Weston represent just the opening gambit in its strategy to consolidate the "highly fragmented" market for SME-focused IT services providers.

The acquisition drive is part of new backer MXC Capital's strategy to refocus Pinnacle and return it to profitability.

Having invested in the London-listed telecoms, IT services and security provider outfit last April, MXC is leading a £4.5m placing of new shares to fund Pinnacle's purchases of Leeds-based duo Ancar-B and Weston.

MXC has a pedigree of investing in loss-making resellers and services firms before using them as the basis to execute a successful M&A roll-up. However, annual results released on Friday underline the scale of the challenge MXC faces at Pinnacle, as the firm's net losses for the year ending 30 September hit £1.3m on revenues that fell to £7.9m. It was also announced that Pinnacle CEO Nicholas Scallan intends to step down in March.

The first two acquisitions, set to close on 11 February, will add almost £5m to Pinnacle's turnover.

Ancar-B, which is being acquired for a consideration of £3.5m, is a Leeds-based provider of IT support services to SMEs with revenues of £2.2m.

Fellow Yorkshire-based business Weston is a provider of telecoms and IT support services to SMEs, councils and universities and has revenues of £2.8m. Pinnacle is buying it for £1.5m.

The two firms will create a hub for centralised support functions, Pinnacle said.

The price is right

The firm said it will continue to review future acquisition opportunities, adding that companies with £2m to £5m revenue, 50 to 60 per cent recurring revenue and local offices and support centres that can be streamlined top its hit list.

Opportunities in the north of England will be viewed favourably in the short term, partly due to labour costs, Pinnacle said, although it added that in time it aims to have a national presence.

For its fiscal 2015, Pinnacle saw net losses narrow from £1.8m to £1.3m year on year on revenues that fell six per cent to £8.4m. The firm said its ongoing losses and cashburn – which it attributed partly to the after-effects of an ill-informed acquisition strategy at the turn of the past decade and to "previously reported acts of wilful misconduct" – "show the business is in need of a change of strategy".

At the same time, the market of "smaller, sub-scale IT servigavin-new-2-2ces providers" is highly fragmented and ripe for consolidation, it argued.

Pinnacle said the multiples payable for SME-focused providers will typically be lower than those larger, more established providers command.

Ancar-B made an EBITDA of £0.57m last year, meaning its acquisition by Pinnacle carries an earnings multiple of 6.8. Weston's EBITDA of £0.22 mean its acquisition commanded an earnings multiple of 6.1.

Gavin Lyons (pictured), an MXC partner who recently became executive chairman of Pinnacle, said: "We believe that strategically there is a market opportunity for Pinnacle to become the leading provider of 'IT as a service' to the UK SME market, despite a number of operating challenges to address, by embarking on a buy-and-build strategy and focusing on higher margin services.

"The acquisitions of Ancar-B and Weston are the first steps in consolidating a highly fragmented market and I look forward to ensuring the organisation is focused on creating both customer and shareholder value".


hxxp://m.channelweb.co.uk/crn-uk/news/2443107/pinnacle-just-getting-started-with-double-buy

[piotrslab] 25/1/2016 12:17

GUYS CAN ANYBODY TELL ME PLEASE HOW I CAN FIND COMPANY RESULT/REPORTS ON ADVFN??? I HEARD SOMEWHERE IN NEWS BUT I CAN SEE IT I WOULD LIKE TO READ I KNOW HEY HAD FINAL LAST WEEK PLEASE LET ME KNOW I WOULD RATHER READ IT HERE TO SEE HOW ''HIGHLIGHTED PHRASER WORK'' THANK YOU

[smithie6] 25/1/2016 08:49

Im not a holder..

But

Can I encourage shareholders to join together and VOTE NO

And force a new deal

- at 4p still but shares to ALL shareholders pro rata to existing holdings..

Hence MXC Capital ( dodgy geezers imo. They always do these type of deals breaking the Company Act 2006)..would not get half of the new shares at a cheap price.

The LAW says
- PRO RATA
- EQUAL treatment of all shareholders

Imho by law the votes of parties that will be allowed to get new shares at 4p ish do NOT count since they are related parties set to unfairly benefit...so other shareholders can still vote NO and force a new deal that includes them.

[freddie01] 25/1/2016 08:31

We know about the issues being addressed, , but going forward, an extract from the article:-

'Pinnacle said the Ancar-B acquisition is for a total £3.5 million consideration, comprising £2.75 million in cash and £0.75 million in new shares priced at the placing price.

Ancar-B notes in most recent abbreviated accounts filed with Companies House covering the 2014 year to July, it had net assets of £1.42 million.

Pinnacle said Ancar-B generated £2.2 million in revenue in the 2015 year to July.

The Weston acquisition is for a £1.5 million total consideration, “to be satisfied in new Ordinary Shares at the Placing Price”.

Weston Communications noted in most recent abbreviated accounts covering the 2015 year to March 31, total assets less current liabilities totalled £239,716, up from £110,311 the prior year.

Pinnacle said Weston, which provides telecoms and IT support services to SMEs, councils and universities, generated revenues of £2.8 million in the 2015 year to March.

Pinnacle said Ancar-B generated earnings before interest, tax and other costs of £0.58 million (unaudited) in the most recent financial year and Weston generated earnings of £0.22 million (unaudited).

Pinnacle executive chairman, Gavin Lyons, said: “We believe that strategically there is a market opportunity for Pinnacle to become the leading provider of 'IT as a service' to the UK SME market, despite a number of operating challenges to address, by embarking on a buy and build strategy and focusing on higher margin services.

“The acquisitions of Ancar-B and Weston are the first steps in consolidating a highly fragmented market and I look forward to ensuring the organisation is focused on creating both customer and shareholder value.”

Read more at hxxp://www.dailyrecord.co.uk/business/business-science-technology/pinnacle-technology-unveils-plan-raise-7224605#Ve1vBdeLHrrZFqgC.99


posted by Aphrodite on lse

[duxy786_2] 25/1/2016 07:15

Ouch....gotta hurt eh, when your fellow investors do you over by getting in at half the price.

[mr roper] 23/1/2016 10:08

rob, I find the placing price to be pretty distasteful. The two acquisitions look useful and should contribute to turning the earnings situation around. Lyons and the team have their work cut out to turn this around but I'm pretty confident they'll get there in the end.
I got stopped out of a chunk of my holding at 12p earlier in the week, so I can class that as a near miss. Going to have a good read through the finals this weekend and will wait for I add again.


Placing price was a disgrace though. MXCP have blotted their copybook with that behaviour.

[xxx] 23/1/2016 00:10

This management team has a successful history and therefore I was pleased they were appointed to run our company.

However, raising £4.55m via a placing to chosen participants at 4.2p, whilst only allowing shareholders to apply for £0.25m on a 1:10 basis is transferring significant value, from existing shareholders to the chosen ones and is a clear abrogation of the principal of pre-emption.

It is legal, but unfair.

We are the shareholders and we should be offered new shares first pro rata, with new institutions underwriting the issue which would help set a realistic issue price, reflecting market demand. If getting institutional investors onboard was felt to be desirable, we should not be subsidising them. Perhaps a £3.5m placing and an underwritten 1:2 rights would be a reasonable compromise.

This has not occurred, with the result that the issue price of 4.2p does not reflect the price the company could have issued the shares at, but reflects a price they could get away with issuing shares to the chosen few, guaranteeing a significant profit and ensuring that existing shareholders proportionate interest is diluted to a much greater interest than was necessary.

I will be contacting the company and if you agree with the issue I raise, perhaps you will do similarly.

Whatever happened to fiduciary duty or integrity? If you see them no doubt, looking lost somewhere, please let me know.