Twenty Plc Share Discussion Threads

[lufc5] 05/5/2010 09:10

£4M Worth of euro lottery tickets......(only a rumour);-)

[induna123] 05/5/2010 08:48

6p on the ask. Should be 7-8p at least. And that just a modest cash valuation. I wonder what they'll do with all that money?

[ihavenoclue] 04/5/2010 09:46

Amazing to think last year this company was 0.1p a share

[induna123] 04/5/2010 08:43

Mr.K.

Assuming your figures are accurate. What are they likely to do with that £4m cash pile?

[induna123] 04/5/2010 08:24

Now back up again. Great post Mr. K. I don't think the market has woken up to this stock's true valuation yet.

[ihavenoclue] 04/5/2010 08:19

Down she goes ... LOL

[ihavenoclue] 04/5/2010 08:06

Up she goes ...

[chriscreagh2002] 02/5/2010 11:24

Read the post - it is explained there.

[sehnah] 02/5/2010 10:21

mr k

how do you come to the conclusion of potential 13.39??
and what time frame we looking at

cheers in advance.

[lufc5] 01/5/2010 01:49

Mr K. I doubt that will be topped.
Excellent post.

[mrkournikova] 01/5/2010 00:48

It's difficult to ascertain a fair value right now, but Interact, the division being sold, is estimated by the directors to have made a pre-tax profit for the 6 months ended 30 June 2009 of £877,000.

Therefore, annualised over 12 months would suggest a pre-tax profit of £1,754,000. Let's assume corporation tax of 28% (ignoring marginal relief) would take the post-tax profit to £1,262,880. This would suggest that Interact is being bought an historic earnings multiple of between 7 and 8.

At the interim stage the Group had an invoice financing facility with the Bank of Scotland, which had a drawn down balance of £1.04 at the balance sheet date. This facility must have moved to Lloyds TSB Commercial Finance, as per the announcement.

Not all of this sum would be applicable to Interact, but being disingenuous assume it is, therefore subtract this from the up front consideration of £7,239,610, would reduce this to £6,199,610.

I think net debt will have reduced from the £2,460,000 reported at the interim stage, as repayments of £430,000 were due over the ensuing 12 months. Therefore, net debt today could be around the £2,110,000 mark taking into account repayments to be made.

Subtracting net debt from the initial consideration less the invoice finance facility would take the figure to £4,089,000.

Therefore, hopefully my conservative sums should ensure that Twenty has c.£4,000,000 of cash on the balance sheet when Group debt has been paid off. Deferred consideration of £2,953,500 will be due over the ensuing 2 years.

So, in terms of valuation, £4m/57,480,000 (shares in issue) = 6.95p

+ deferred consideration of £2.953/57,480,000 = 5.14p

Ongoing businesses (Moveme/Ominor/eMaginating) say £750k = 1.3p

Potential share price = 13.39p

Keen for others thoughts on this.

Mr K

[induna123] 30/4/2010 14:44

When does this disposal happen?

[mike_f] 30/4/2010 12:33

Nice rise... WDA

[ihavenoclue] 30/4/2010 12:13

I managed to get some ...

[sportbilly1976] 30/4/2010 12:12

I'm surprised...they have been taking a few sells..

[msufi1] 30/4/2010 12:12

cant buy any

[ihavenoclue] 30/4/2010 12:08

Debts of 2.46m so after debts just under £5m cash with £1.2m per year for the next two years. Current Market Cap is £3m even after rise from 2p to 5p.

[sportbilly1976] 30/4/2010 12:07

saffy,

true...but of that £6.7mln, £4.3mln is trade payables....and £500k is finance leases

[safman] 30/4/2010 12:04

total liabilities is 6.7 million, inc creditors..

saffy..

[sportbilly1976] 30/4/2010 12:02

debt in last accounts was £2.5mln....so assuming this still the same then net 15p a share...

[ihavenoclue] 30/4/2010 11:59

Unable to buy any way with Barclays

[bones30] 30/4/2010 11:59

Dont forget the debt though.

[sportbilly1976] 30/4/2010 11:59

total consideration equates to 21.1p per share...

[sportbilly1976] 30/4/2010 11:56

BB very quiet considering...

[dubois] 30/4/2010 11:51

I based my calcs on 62m in issue. If its only 48 then that makes it 15p