The Market Age Share Discussion Threads

[james 2] 03/8/2004 15:52

the symbol is now IIR

[energyi] 03/8/2004 15:52

New symbol?

[hamidahamida] 28/7/2004 20:03

RNS Number:7529Z
Market Age PLC
15 June 2004


Independent International Investment Research PLC
(formerly The Market Age plc)

Chairman and Chief Executive's review

Highlights

* Revenues up by #189K (78%)
* Operating overheads down by #401K (36%)
* EBITDA break-even (on a month by month basis) achieved in February
* Re-branding complete
* Positive signs from Bloomberg and FXCM relationships
* Encouraging indications for equities research activity

Chairman and Chief Executive's Review

I am pleased to report on a year in which the Company has made much progress.
Since publication of the Report and Accounts for 2003 and the Interim report for
2004.


Financial Results

Despite the substantial draw on management time over the year required by the
re-organisation of Group finances, a focus on new business opportunities and
continued attention to the cost base has generated substantial improvements in
our performance. Turnover for the year to February 29, 2004 was #430K (2003:
#241K). Operating loss for the year to February 29, 2004 was #386K (2003:
#980K).

Furthermore the net cash outflow in the year to February 29, 2004 was down to
#25K (2003: #415K). The Balance Sheet has been strengthened through an
agreement with the Group's loan note holders to reduce the amount due to them
from #704K to #70K, in exchange for the transfer to them of some Ordinary
Shares. The consolidated Balance Sheet deficiency as at February 29, 2004 was
#19K (2003: #310K) and group net debt was #104K (2003: #718K).


Operations

I reported last time on good progress towards increasing revenues from key
customers, and I was pleased to announce subsequently in February 2004 the first
of a number of expected contract "wins" with a major global participant in the
foreign exchange markets. Together with this client, we have designed and
implemented a new level of service, "Pronet Premium", which provides all of the
clients' sales and trading staff (and soon, selected customers as well) with
access to a dedicated team of Pronet's expert FX analysts. In this way, the
client is effectively out-sourcing its technical research requirement, to
Pronet. The Group can accommodate a further two such clients before engaging
any significant additional costs, and negotiations and sales discussions are
underway.

The impact of new revenues from this first Pronet Premium client is minimal
during the year to February 29 2004 since it includes only two months of fees.
Most of the benefit will be seen during the current financial year.

I also reported last time that we have signed a contract with FXCM, one of the
leading on-line currency transactions firms, who are offering their clients the
facility of having their discretionary accounts managed according to trading
strategies originated by Pronet. Work is still in progress to roll out the
facility widely, and revenues generated so far are not significant but early
indications were sufficiently positive for FXCM and Pronet to agree in April
2004 an extension of the collaboration to include Greater China and SE Asia.

I reported last time that we had negotiated a variation to the exclusivity
provision in the terms of contract for the supply of the TradeSmith service to
our original client, releasing us from an exclusivity provision in the contract.
We have commenced discussion with a major banking group who are evaluating the
service with a view to sharing revenues with us.

Finally, I indicated last time that the Group had received an approach from a
major market data provider wishing to carry our service to its clients. I was
pleased to subsequently report that we have signed agreements with Bloomberg LP
and completed the initial implementation work. The Group anticipates that this
will lead to new business revenues during the second half.


Independent Financial Markets Research Ltd ("IFMR")

During the year, WTV (Media) Ltd changed its name to properly reflect the core
activity of the company.

In late 2002, the New York Attorney General Elliot Spitzer, together with the
SEC and NASD, announced an agreed settlement of conflict of interest charges
against ten major broker-dealer firms (investment banks). As part of the
settlement these ten firms alone are obligated to spend $432.5 million during
the next five years to buy independent equities research which they will provide
to their retail clients. This settlement is referred to as "the Global Research
Analysts Settlement".

Product development has continued in close association with key figures involved
in implementation of the Global Research Analyst Settlement, and the market for
this service has been fundamentally changed - for the better - by these events
in the United States.

Your board believes that the effect of the Settlement will impact on the
industry generally and that many firms will need to embrace its provisions by
supplying independent research to clients. Over time, this development is
likely to cross the Atlantic and take hold in European investment banking
culture as well.

This effectively creates a new, enlarged market for independent research. IFMR
is now reaching the final, but critical, stage in defining a substantial list of
global companies on which it will provide research coverage for broker-dealers
(investment banks) that fall both within and outside the Settlement. The Group
has a key competitive advantage in supplying non-US company research coverage to
the US investment community: through its Pronet unit, the Group has expertise to
provide currency analysis so that investors can properly consider the risk (or
opportunity) of buying and selling shares which are not denominated in US$.

Current indications of our prospects in securing substantial contracts are
positive, however the success of this activity depends upon final selection of
the Group as a supplier. The Group expects to make a further announcement in due
course.


Staffing and other costs

The continued operation of the group during a difficult year has been achieved
largely through a very tight control over costs. The necessary reductions in
staff levels were made during the previous year and the transformation of the
Group's cost base was completed in September 2003 with a move to more affordable
premises.

As a result, the monthly run rate of costs (excluding depreciation and interest)
was only #45,000 by February 2004, marginally below the gross profit earned
being earned from revenues at that point.


Post-balance sheet events

In April 2004, The Smith Trust (which is the main shareholder) made a loan of
#60,000 to the Group in order to redeem short term loan facilities, to provide
working capital and a capacity to deal with unforecast expenses.


Protection of intellectual property

In our Trading Statement issued on 6 April 2004, it was noted that Google Inc.
were intending to launch a service by the name of Gmail, and that the Group has
had a similar service since 2002. The Group has been working together with a
firm of London based solicitors with a highly regarded Intellectual Property
department, and has recently written to the founding directors of Google on the
subject. We await a response.


Shane Smith
Chairman

[james 2] 19/7/2004 08:34

me me - look at post 724 and follow the link to the new thread (in new name).

rgds j2

[me me] 19/7/2004 08:29

whats happened here hold a few have they gone bust or what

[james 2] 16/6/2004 09:29

I've put up a new thread, when I get chance this evening or at the weekend I will update and add relevant links etc.



rgds
j2

[[e-mail]] 16/6/2004 09:02

VERN

NEARLY BROUGHT MONDAY DECIDED ON IDD

[skjimey] 16/6/2004 08:43

Sorry to show ignorance. A mate suggested I keep an eye on this one. But I didn't realise they were changing name!

S.

[tomgiles] 16/6/2004 08:21

no market today?

[james 2] 16/6/2004 08:15

LOL - try IIR !

rgds
j2

[skjimey] 16/6/2004 07:52

Any idea why there are no details showing on Moneypm? Has this share been suspended???

S.

[elsworth] 15/6/2004 22:11

Do agree james 2, but level 4 is something a shaggy investor would need to take note of....otherwise the head and shoulder formation could change to hip and knee formation with double joppers on the right. Both lines are above the other lines and that means the other line is still over the middle centre.

Marcos Van Shagger le Jigjig.......bringing live financial data to the bedroom..

...Marcos Shagos waiting for the drip below 10p.......

[capricorn_1] 15/6/2004 21:41

James 2 - Had a busy day since my last post, hence why I'm only posting now. The IC article on TMA from April had the heading "TMA nears profitability"....I guess I didn't read closely enough and assumed profitability was going to reported already up to y/e Feb '04. The current market that we are now in is quick to punish losses, hence why I bailed at the open. I am persuaded by TMA's business model, and will rejoin the party shortly. Like you say this is highly illiquid, and will quick rise back up and beyond on the annoucement of those much awaited big deals, IMO.

[james 2] 15/6/2004 17:55

Here is the full paragraph to avoid confusion !

This effectively creates a new, enlarged market for independent research. IFMR
is now reaching the final, but critical, stage in defining a substantial list of
global companies on which it will provide research coverage for broker-dealers
(investment banks) that fall both within and outside the Settlement. The Group
has a key competitive advantage in supplying non-US company research coverage to
the US investment community: through its Pronet unit, the Group has expertise to
provide currency analysis so that investors can properly consider the risk (or
opportunity) of buying and selling shares which are not denominated in US$.

Current indications of our prospects in securing substantial contracts are
positive, however the success of this activity depends upon final selection of
the Group as a supplier. The Group expects to make a further announcement in due
course.

[james 2] 15/6/2004 17:53

Elsworth - LOL that one is good even by your standards. the funny thing about the report you have posted is that equities research is relatively new for TMA and as such no impact on current numbers or future anticipations.

So the fact they are even in talks for major supply contracts & expected to make an announcment in due course is enougth to send this stock upward viagra style.

Keep the analysis coming anyway the last time you updated at around 15p or so it went to mid 20's !

rgds & all the best

j2

[james 2] 15/6/2004 15:20

about 20% judging by the header.

See the news piece below from 1st June, it wasn't posted on here but they gained the top ranking in the "FX week" research performance league, the first independent firm to gain the top-spot.



rgds
j2

[tomgiles] 15/6/2004 15:12

what is the free float?

[james 2] 15/6/2004 15:08

tomgiles - in all fairness it works the other way as well (100k of trades sent it up 60% a couple of weeks back).

What dosen't make sense imo is why people would sell on today's news, even a hint of another contract announcement shortly !

rgds
j2

[tomgiles] 15/6/2004 15:05

44,000 shares traded and 28% drop,just does not make sense

[lossman] 15/6/2004 14:10

Your calculations seem reasonable assumptions. Thanks for that, james 2.

I too hold, so would also produce biased comments.

However, on the +ve side, the price reduction means that I am still paying more than I did when I bought a few months ago, so topping up would not even mean an averaging down.

It is as risky as any share at the moment, but if they do pull in the business, then profitability is just around the corner. With Bloomberg as a client, then it is a very good sign.

Just need to hold a bit longer.

GHA
KD

[james 2] 15/6/2004 13:08

Lossman, info taken from results and is only my initial thoughts / notes so please take with a pinch of salt and disagree where necessary.

Following the Feb results TMA became EBITDA breakeven.
Admin expense run rate = 45k per month
Gross margin is 73% (so COS 27%)

So a simple forecast based on Feb contracts would mean the following forecast for this year - assuming all thing being equal.

Turnover 745k (by difference)
Cost of sales 200k (assuming 27% which is pessimistic !)
Admin expense 540k (using monthly run rate of 45k from results x 12)
Operating Profit 0k.

From results turnover grew 50% in the 2nd half versus 1st half (so H1 170k means H2 258k) assuming same growth gives £1,032 which maybe topside so the 745k above looks realistic.
I have assumed that the Cost of sales remains at 27% but this is very pessimistic, an example of why is in the results where you can read that Pronet can take on two additional clients/revenue before incurring additional cost.

Now to consider post Feb contracts & activities that have not been included in my calc above , all data taken from todays results :

FXCM Contract - currently being rolled out.

Bloomberg agreement - revenues expected in the 2nd quarter following the succesful rollout in April.

Tradesmith service being evaluated by Major banking group.

Independent financial markets research (IFMR), to quote the results :

"Current indications of our prospects in securing substantial contracts are
positive, however the success of this activity depends upon final selection of
the Group as a supplier. The Group expects to make a further announcement in due
course."

All simplistic and off the cuff, but given that TMA Mkt cap is only around £3.1 million on current mid it looks good value to me in the medium term all the more interesting that we can expect a further announcement in due course.

Would welcome your thoughts/research, all the above is imo and off the cuff + I hold so may be a little biased ;-)

rgds
j2

[james 2] 15/6/2004 12:31

Lossman - The results were as expected. the markdown is due to liquidity (fine when it is a rising share price) on a few £££ of shares sold. Will take a more in depth look when I can and post something on here to discuss.

rgds
j2