Teliti Share Discussion Threads

[dunk8] 01/8/2007 16:33

I also heard from HB that these have been de-listed. Sorry to sound stupid but what does that mean to me as a shareholder.

Clearly it doesn't sound like good news, but will I get anything back at all?

[bartyboy] 31/7/2007 21:27

Thanks Frank.

The exciting thing about VYKE is in my view, it's just starting to get it's legs.

I see much more upside with this stock. I have a personal 12 month target of £2.00 for the stock.

Lets see if it gets there!!

[blank frank] 30/7/2007 18:09

Thanks for that Philjeans. TEL's page on the LSE website has been removed. As the shares were suspended on 25th. January 2007 it had been over six months ... I would be interested to learn if the delisting was voluntary or enforced.

The company's website is still up and running:


Referring back to a recent post of mine:-

Blank Frank - 6 Jul'07 - 19:16 - 325 of 336 edit
"I was a bit disappointed that TEL's report did not explicitly say why Greg Hallett presented misleading finanacial info. to the TEL board, though it gives the impression that they know why. ... "


Shareholders do of course have a right to know that, added to which TEL's Chairman Lord Razzall promised that info. in his letter to shareholders of 22nd. March (posted in my post 253 above):-

"Dear Shareholder,

As some of the shareholders will be aware from coverage in the press the company has experienced a difficult time. Although the financial information presented to the Board as recently as December 2006 indicated that the accounts to 31st July 2006 would show a small profit, it became apparent in January that the company had made substantial losses. ... Investigations are taking place to ascertain the reasons why the information was incorrect and when these have been concluded shareholders will be advised of the findings. ...

Tim Razzall
Chairman"

Over four months later we're still waiting ...

Assuming that Lord Razzall is a man of his word, I would hope that shareholders will be receiving an explanation shortly. After all, wouldn't it be truly shocking for a high-ranking politician to be thought not to have told the truth?


B.F.

[philjeans] 30/7/2007 15:25

Hoodless B advise me these have been de-listed today.

[blindfaith2] 17/7/2007 13:40

Blank. Good call re AVAP ! I'm actually liquidating at the moment as I have a direct equity investment to make so need a few shillings, so not buying but good luck to you.

Re your comments on TEL "with a high level of customer satisfaction" this I fear can be achieved by anybody, but, achieving this and Shareholder satisfaction at the same time is the hard part.

We have commented before about their escalating costs and it appears that they did not learn, just kept spending hoping it would all come right. Well it 'don't' come right in my experience and, again they have had to learn the hard way. I obviously don't know this new financial chap but hope he is a tight fisted bar steward as that's what they need now, somebody to question every penny they spend. Old fashioned view I know but it's back to basics here or I'm afraid they won't last the course and will be swallowed up by one of the bigger boys chasing contracts.

BTW – I've sold SAL, getting a little rich on the P/E stakes for me but hope to see it go on and prosper, will continue to watch closely.

[blank frank] 11/7/2007 19:37

Blank Frank - 7 Jul'07 - 20:38 - 327 of 333
" ... A major purpose of the coming equity issue is I believe to help deal with TEL's remaining debt. ... "

There's quite a bit of non-bank debt, some of which is attracting interest of 15%. I get the impression that the company would like to 'clear the decks' of debt if possible, and start afresh.

Blank Frank - 6 Jul'07 - 19:16 - 325 of 333
" ... I would imagine that large investors will be seeking some very good explanations and assurances, backed up by credible figures, before they put in significant (more) funding. ... "

I don't think that such investors would put significant money into the company if it was haemorrhaging cash; it wouldn't be brave, it would be stupid.

If the fundraising is successful and the company returns from suspension, I would take that as a sign that it's a reasonable investment.

At least TEL operates in what may be an attractive growth sector for investors. The last year has been a very good period overall for the telecom shares sector:-

FTSE 350 - Telecommunications Historical stock chart:-


And the telecom shares sector has the potential to continue to perform well over the next few years: as communications systems continue to rapidly develop, and convergence between telecoms and computing grows.

TEL's trump card is that its actual business delivery seems to be excellent, with a high level of customer satisfaction. If therefore it can sort out the financial side of the business, then the company has the potential to do very well.

B.F.

[stemis] 11/7/2007 07:37

If the cash proceeds of the disposal of Westcom "enabled TMG to repay in full all borrowing from the group bankers", why are they planning a fund raising? Implies to me that they are still haemorrhaging cash.

Only for the very brave, I would have thought.

[blank frank] 10/7/2007 18:57

'Anything BF2 can do, BF can do too.'


Just under a month ago BF2 tipped SAL on this thread at 140.5p; it's currently 200p, a gain of 42.35%.

Two days ago I tipped AVAP on this thread at 50.5p; it's currently 76p, up 20p today, and a gain of 50.5% on my tip price.



Did you get any BF2?

B.F.

[jonwig] 08/7/2007 16:25

BF2,

you can download the AiM Rules of the LSE here:



Page 13:

The Exchange will cancel the admission of AIM securities where these have been
suspended from trading for six months.

A close one coming up (25 July)!

They also have until August 20 to set up a website having all relevant investor documents (Page 40). Another tough one.

Suspension is a holding period giving the company time to sort out its affairs.
They are still a listed company, and - as I see it - will need to release relevant RNSs by the time suspension is lifted.

They have, in fact released three RNSs since 25 Jan, though the results announcement seems to have been overlooked.

[blank frank] 08/7/2007 14:50

About three and a half weeks ago Blindfaith2 tipped SAL on this thread at 140.5p; it's since rocketed up to 202p.

As it's good manners to return a favour, I will attempt to do so on behalf of readers of this thread. My tip is AVAP, currently 50.5p.

Note though that the company leases out aircraft, which may be a negative consideration for 'deep green' investors.

B.F.

[blank frank] 07/7/2007 20:38

It's worth pointing out that TEL's loss is of course even worse than expected following the two profit warnings in late January, and by quite a way, even excluding the massive exceptional items.

22/01/2007 14:22 TFNF Telephone Maintenance sees FY loss of around 1 mln stg LSE:TEL Telephone Maintenanc


25/01/2007 10:51 TFNF Telephone Maintenance shares suspended on AIM; sees FY loss doubling LSE:TEL Telephone Maintenanc


Which I think means that the results are also a third profit warning: a self-contained one, relating to the results themselves.

There are some non-retail investors in TEL included in the "Substantial shareholdings" section of the company report.

I doubt that TEL needs or wants to raise as much as £2M. A major purpose of the coming equity issue is I believe to help deal with TEL's remaining debt.

Once that has been done, and with the poorer non-core areas of the business dispensed with, then the company should be a more attractive target for takeover.

The fundraising arrangements seem to be going OK, and an open offer doesn't mean that they're going badly.

For the moment at least, the CEO and Chairman are needed to run the business.

B.F.

[kimboy2] 06/7/2007 21:21

Are there any large investors ? The whole company was only worth £2m when it was suspended.

I don't quite see why they haven't sold the remainder off to someone. The original strategy was to acquire companies in a fragmented industry on low p/e's. That has completely failed.

What do they do now ?

Are they raising money to have another go at acquisitions ? The fact that they are going to offer it to PI's suggests that the fund raising isn't going very well anyway.

I can see £2m being raised at 10p/share maybe.

I am fairly astonished that any of the management has remained. Perhaps their resignations will be part of the rescue fund raising.

[blank frank] 06/7/2007 19:16

I was a bit disappointed that TEL's report did not explicitly say why Greg Hallett presented misleading finanacial info. to the TEL board, though it gives the impression that they know why. Of course, with Greg's subsequent departure, and considering his previous record with company failures, people may have their strong suspicions, but that is a bit different.

In my opinion, the company needs to be more ruthless in directly outing who was responsible. Or as Marlon Brando once said, what people would call ruthless, but what is actually just seeing what needs to be done, and doing it. If not, there's a risk that the company itself will be blamed, and tarnished, for the failings of one person.

Unless people know why they were mislead, and what's been done to ensure that it won't happen again, then investor trust may be less than otherwise.

And that would be a shame, because I think that there may well be a good core business here. And now that the poor non-core stuff has been stripped away, the cost-cuttings will hopefully allow the company to move into a decent profit next year. The good news is that the recent cost cuttings, and the costs of implementing them, will have taken place before the start of TEL's next financial year on 1st. August. So results for the year ending 31st. July 2008 - which will hopefully be out within about sixteen months - will hopefully be good. I think that in theory, a company with turnover of the size and type of TEL's, and with TEL's number of staff, should be able to deliver good profits from that turnover.

I would imagine that large investors will be seeking some very good explanations and assurances, backed up by credible figures, before they put in significant (more) funding. That funding, perhaps complemented by investment from TEL's directors, will probably provide the amount required from the fundraising. The open offer to exising shareholders may be more of a courtesy to small shareholders so that they can invest on similar terms to the large investors should they wish to do so.

B.F.

P.S. SteMiS - I've got no idea why the results haven't been announced to the stock exchange. Perhaps there's some sort of exemption if a company's shares are suspended?

[jannief] 06/7/2007 12:32

Anyone who puts more money into this disastrous company needs their head examining. I don't believe anything they say anymore. Their track record of delivering against what they say is extremely poor. I for one will not be wasting any more of my money.

[stemis] 06/7/2007 07:39

Why have TEL not announced their results to the stock exchange?

[blank frank] 05/7/2007 19:50

From page 5 of TEL's report:-

"Internal control
The directors acknowledge their responsibilities for the Company's system of internal control. ... the directors believe that there is room for improvement within the established systems for internal control in the company."

They can say that again ...

I note though that Lord Razzall in his Chairman's statement refers to Mark Godfry as the new Interim Director of Finance (he's previously been referred to as the new Finance Controller). Hopefully a sign that he's doing a very good job - TEL certainly needs it.

B.F.

[blank frank] 05/7/2007 18:53

Today I received in the post TEL's financial statements for the year ending 31st. July 2006.

Group turnover increased from £4,719,000 to £5,434,000.
Operating loss was £4,395,000 from an operating profit of £118,000 the previous year.
Pre-tax loss was £4,652,000 from a pre-tax profit of £34,000 the previous year.
By far the largest proportion of these losses is accounted for by non-trading items. There has been substantial write down and write-offs. £2.233M. of the losses are shown as being exceptional items.

Three subsidiaries (one non-trading) have been placed in liquidation/administration.

The interim results to January 2007 will show a further loss. Thereafter, the impacts of cuts and restructuring after January will [apparently] mean a dramatically better second half to July 2007.

The core business has apparently performed well. It has retained all its major customers and service provided to those customers has been excellent. CEO Jeff Williams has personally visited many of TEL's clients and explained the Group's position. The response and commitment has been superb, and sales activities are back in line with forecasts.

There is also news of award of a substantial contract with a prestige hotel group; and TEL has once again won the coveted top reseller by Splicecom a leading telephone system manufacturer in the United Kingdom.

TEL is arranging an equity fundraising which is currently in advanced stage negotiations; it will also make an open offer to existing shareholders on similar terms.

The impression I get is that the fundraising should enable the suspension to be lifted.

B.F.

[lgw] 29/6/2007 20:38

thanks for the update BF.
If only STP was'nt stuck in a rut at no 18.
Still anything can happen esp with small telcos like STP so I am still hopeful to finish strongly.

[tenapen] 29/6/2007 20:11

Thanks for the update BF.

you could not have gone far wrong by having a few pounds on each of the above.

------------------------------------------
Get a voice, visit Loober.com

[blank frank] 29/6/2007 19:32

The last year has been a very good period overall for the telecom shares sector:-

FTSE 350 - Telecommunications(UB6500):-


Much more so in fact than for the other main tech shares sectors:-

FTSE 350 Software & Computer Services Index(NMX9530):-


FTSE 350 Technology Hardware & Equipment Index(NMX9570):-


FTSE 350 Pharmaceuticals & Biotechnology Index(NMX4570):-


And the telecom shares sector has the potential to continue to perform well over the next few years: as communications systems continue to rapidly develop, convergence between telecoms and computing grows, and growth in developing countries continues apace.

B.F.