|Pro Global Ins.
||EPS - Basic
||Market Cap (m)
Pro Global Ins. Share Discussion Threads
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|The circular has arrived. It looks like post-completion the Group will have circa. £1M of cash and the 30 per cent of Asta. The 8 per cent preference shares will yield £0.2M per annum but may be repaid soon which would bump the cash up to £3M.
So, how much is 30 per cent of Asta actually worth? £20m on a conservative assumption or £40m top end I would guess. If you say £30m, then this is on a bit of a discount. Suspect we may start to get dividends next year. Happy to hold.|
|Interesting news today. With the benefit of hindsight it explains the lack of news coming from Pro on their web-site and the somewhat downbeat comments. They have been working on this for a while, no doubt. Think the sale price is quite low given its pitched just above tangible net asset value.
Anyway, PROG will be left as effectively a debt free cash shell with a 30% share in a very valuable asset, being Asta Capital. So what now?
1. Asta Capital now reverses into PROG - much cleaner and would be great for holders. As a listed company, I could see a valuation of the 100% being up to £100m. Asta have won lots more business this year and so last year's £6m PBT should be beaten.
2. The company distributes dividends received to shareholders now it has no debt to service.
3. The company exits its Astra Capital stake and returns funds to holders (unlikely from today's RNS).
4. PROG ends up delisting and minority holders lose out (unlikely as the majority holder ha always done the right thing to date).
My favoured option is 1.|
|Looking at the Asta Capital 2015 statutory accounts, this associate looks a cracking business. Its expanding nicely with a £6m PBT and £4m PAT. This business alone, with a virtually ungeared balance sheet must be worth about £60m or £20m for the PRO share. Wouldn't a reverse takeover be fantastic if it ever came off! Even if it doesn't it's throwing out cash like there's no tomorrow and so should clear the Group borrowings within a reasonable timeframe.|
|All very quiet on this BB. Always a good sign. Interim results next month and could be interesting as this Group breaks into more sustained profitability.|
|Annual report is interesting. Think this company has very strong potential. In my view Asta is worth a third of £60m. It makes a £6m profit before the £1.5m preference share cost. If you say £20m less the £6m or so debt secured on it - you can see that the entire market capitalisation is supported by the Asta investment.
Then, if you look at the Pro business that has real potential - all the companies are much improved if you look at the UK statutory accounts and they have a £5m new contract in Glasgow starting. The underlying businesses excluding Asta are also worth the entire market cap in my view.
So, both ways you look at it I think this company is a great value investment. Only risk is it's majority owned but the ethics to date of Tawa owners has been good with Tawa returning some capital last year. Doubled-up my small holding.
The company gets a very poor QVM rating on Stockopedia but it's historical financials are clouded by the former Tawa business. They have only had one clean year of trading which is 2015 and 2016 promises to be a year of significant growth. In 2 years this business will have been transformed from a loss making business to a profitable group.
Cash flow is being pushed into working capital at this point given the growth in the debtor book, so no dividend just yet. Maybe a dividend in 2017 is my take.|
|Shame. PROG are not doing themselves any favours.|
|Results today were fairly solid. An odd way of announcing them though as you have to go to their website to even see the P&L and Balance Sheet. They could really do with some PR on their results. Seems to be a company that is well and truly off the radar screen, but making strong underlying progress.|
|Makes you wonder whether there is some corporate activity around the corner. Certainly very welcome that the share price has increased like this. Could they be interested in a reverse takeover of their associate perhaps? That would be very welcome.|
|I have no ideas. I am not complaining.
Have to dig out that Tawa share certificate.|
|Does anyone know what is going on here. Over the last couple of months there have been quite a few block buys of 10,000 and 7,500 shares, with the share price slowly moving, while today it jumped 20% (4p) based just on 4, 7,500 share buy. Is someone building a stake (although I'm not sure if this is possible when the top 4 shareholders own more than 85% of the share or are they the on'e buying).
I'm quite happy with the share price moving up as I have a small stake, although it would be good to know why this is happening|
|I see this is held by Church House Investments - Deep Value Fund
God knows why|
|Balance sheet is still W.I.P
There is still a decent business but the old liabilities may sink it.|
|General gist is:
2013 loss before tax £1.2m
2014 loss before tax £1.2m
Stripping out the other income and the associate:
2013 loss before tax £1.6m
2014 loss before tax £2.3m
From the notes: 2014 includes GBP0.4 million re-structuring and re-organisation costs, 2013 includes GBP0.3 million provision release.
So pretty much nothing happened other than the business contracting with revenue down from £12.4m to £11.5m.
No doubt lots of "paddling" underneath this high level summary.
On a very generous interpretation, a work in progress.|
old father time
|Interesting to see how this will develop. Still loss making but could recover well. Will study the interims a bit more. They don't present the results in a very transparent way at this point with complexity from discontinued operations and the Asta associate. Need to look at more closely.|
|Formerly Tawa plc.|
old father time
|Appologies, my mistake. ADVFN has been guilty of this in the past and I wanted to avoid putting any more strain on Execline's heart,,|
|customers not competitors|
|Erm,, allow free advertising for direct competitors?|
Chat Pages: 1