||EPS - Basic
||Market Cap (m)
|Software & Computer Services
Real-Time news about Touchstone Grp (London Stock Exchange): 0 recent articles
|weatherman: Would appreciate feedback on plans to resolve share price levels, and on plans to release shqareholder value through divestment or acquisition.|
|valhamos: Offer of 23p is derisory.
In the Cancellation/Tender Offer document the directors bemoan the lowly current share price and 'have little confidence the underlying value of Group operations will be fully appreciated whilst the Company retains its AIM Admission'
And yet they think 23p is a suitable exit price.
As the directors also state that the Company has rarely used AIM to raise equity and had no plans to do so, I'm not sure why the current share price in relation to its underlying value is of any particular concern to them. They should concentrate on turning the business around; it's up to us to worry about the share price. And an absence of a listing isn't going to suddenly demonstrate the underlying value; quite the opposite.
It would be better if the company kept its listing and commited to a share buy-back.
I will vote against delisting.|
|davidosh: I cannot see this whole amount being written off completely. A company must take on all liabilities in a takeover and I cannot see a court being sympathetic under contract law if their only defence is that they no longer needed the software. I can see protracted negotiations or attempts to find 'other reasons' but would expect some further payments and even interest to add on top.
It does make one wary of what has been booked and I was not pleased earlier this year with the warning a full three months after the year end. All these 'own goals' have weakened the share price and considering the company is the European leader in Microsoft reselling that does somewhat suggest that Touchstone is not making the most from its position in the market.
The topline growth is vanity...margins and cash provide sanity. The company needs to cut costs wherever possible and get back to the basics whilst holding its position. Then we will see progress.|
|glasshalfull: Bad news half hour prior to close of play on a Friday....tut tut !!!
Contract termination and Trading update (link above)
"..the Board has prudently decided to provide for the full exposure on the project. The impact of this provision, estimated at £250,000 coupled with previously announced mixed trading in the first half of the Group's financial year, will now result in a small loss at the operating level for the six months to 30 September 2008."
The remaining business appears to be holding up reasonably well.
Share price will show exaggerated fall in current climate and Management buyout looks very much on the cards at a reduced level.
Not currently holding but watching fall closely, as it will of course be overdone.
|fund1: This is the article from moneyweek taken from the vialogy thread.
One of Paul Hill's favourite small-cap tech stocks at the moment is Touchstone (Aim:TSE). Touchstone is involved in implementing business software, helping firms to be more efficient by handling customer information, cost control, and organising financial and customer data across an organisation. Clients include British Energy and Rolls Royce and organisations, such as the Bank of England.
Touchstone has teamed up with Microsoft to implement its business software system Microsoft Dynamics, which helps companies manage their finances, supply chain and customer relations. Sales of the system have achieved worldwide sales of more than $1bn, growing at a 20% annual rate over the last six quarters. The firm recently reported a 7% jump in like-for-like sales, with 30% attributable to its partnership with Microsoft.
However, the share price has more than halved over the last year, after recent contract delays and a fall in profit margins due to higher research an development spending. But these problems are temporary, says Hill the result of the firm moving up the food chain and targeting larger contracts. On a forward p/e of 5.7, it looks cheap and if the market doesn't take notice, it may not be long before the company attracts takeover interest, Hill reckons. The stock offers a dividend yield of 4.1%.
|simso: THis is interesting to see a bit of life on yej share price here. Did anyone see if it was an IC article which sparked Fridays rally? Seeing it up another 9p today may hint at something better than a short lived IC rally.|
l I make the market cap well under £13m
The last voting rights announcement at 28 Dec showed 12,235,787 shares so at £1.05/share that is £12.85m market cap which is under but not in my view well under £13m
2 profits now indicated at slightly below £3m before tax
Last year's EBITDA was £3133k with depreciation of £229k that gives EBITA of £2904k which is the adjusted profit figure as net interest income is immaterial. The trading statement says they will be slightly behind last year and I take that to mean 10-15% so I think the expectation is ca £2.5m adjusted PBT.
3 no less than (another) £3m of cash likely to be sitting in the bank at the end of next month
As I said net interest income was immaterial last year and in H1 interest expense at £34k exceeded interest at £31k. So they may have reported £2.6m cash balance at end of H1 but I don't think they can have that as an average available balance during H1.
However £2.5 EBITA on a mkt cap of ca. £13m (equal to enterprise value assuming immaterial average cash balances) gives a pre-tax return of close to 20% which is rather better than the building society 6% (likely to decline) and so I have bought a few more TSE shares based on their expectation for growing sales, profits and cash over the next 3-4 years by which time hopefully normal market multiples of 10X EV/EBITDA will be assigned again to software microcaps and the share price will be ca. 300p.|
|mrdynevor: Anyone got any idea's for the price erosion?
I suspect that there is some bad news that has not yet been released on consultancy rates, new business etc.
At this price they look good value with potential to double the share price once the current difficulties have been cracked.|
|welsheagle: Considering the first half is the weaker half, they look reasonable results - share price looks cheap.|
|britishb: Yes, the free float here is tiny. Any sustained buying will send this through the roof...but then I've been waiting 16 months for that to happen. Results 27th June and then we can start looking at next year's forecast eps of 22p. A very modest forward (considering TSE have net cash, a record order book and are Microsoft's biggest UK reseller) PE of 14 would see us over 300p. Compare with AXON (about the equivalent in the SAP market) on a forward PE of 22. I don't really see why TSE should be rated any less than AXO given 25 years of uninterrupted top line growth. So that would be a share price pushing 500p...|
Touchstone Grp share price data is direct from the London Stock Exchange