Advancedadvt Share Discussion Threads

[blah blah] 05/11/2024 15:57

Looks to me like a seller cleared.

[northwards] 05/11/2024 15:42

Interesting. Insti interest ?

[x54v] 05/11/2024 15:08

The heaviest volume for a while.

[slogsweep] 30/10/2024 17:44

VM specializes in technology services to the public sector like the health service surely she will be eyeing up a slice of that £6B

[john09] 30/10/2024 13:28

See you at a quid

[john09] 30/10/2024 12:36

Not rubbish at all. It’s down 25p since April

It’ll drop another 25p

[puzzler2] 30/10/2024 12:23

john09 - for the sake of clarity - 'Net cash and investments on 31 August 2024 totalled £108.3m, comprising net cash of £83.3m and £25m held as an investment in M&C Saatchi plc.' Market cap today is £167m, so the attributed value of the businesses is £59m. Per the half year trading update EBITDA (for the half year) is expected to be £4M, which puts these SAAS IT businesses on an EBITDA P/E multiple of around 8, which is probably an earnings multiple of 10. I wouldn't perceive that multiple as "grossly overvalued" - probably valued at about the right level imo.

[stemis] 30/10/2024 11:00

What rubbish

[john09] 30/10/2024 10:33

Without acquisitions this is grossly overvalued by maybe 25% right now . Folks will get bored nd this will drift back to a quid

[cf456] 30/10/2024 08:21

Could do with some news to help the share price, but there's hardly any "desperate need" given the strong underlying business, significant cash balance and Vin Murria in charge.

As Puzzler2 says, best to wait for the right deal.

Interesting that you created the profile yesterday Spectemur and this is your first and only post.

[puzzler2] 30/10/2024 07:52

Better to wait for the right deal and conserve cash - I'm in no hurry.

[spectemur] 29/10/2024 19:18

This is in desperate need of acquisitive news. Until then we're drifting inexorably downwards.

[cf456] 28/10/2024 11:23

'Net cash and investments on 31 August 2024 totalled £108.3m, comprising net cash of £83.3m and £25m held as an investment in M&C Saatchi plc.'

[cf456] 28/10/2024 11:22

'Business owners in the UK have fast-tracked their exit plans over the past year, research has shown, which comes amid fears of an increase in capital gains tax (CGT) in the upcoming autumn budget.

Nearly a third (29%) of business owners have accelerated their business exits over the past 12 months, according to research by professional services group Evelyn Partners, released on Friday.'

[cf456] 28/10/2024 11:20

'Surge in business owners looking to sell for fear of Labour tax raid'

More opportunities in the current environment then for a cash-rich acquirer like AdvancedAdvt.

[x54v] 25/10/2024 12:46

VM stepping down as NED from Softcat, freeing up time to spend growing ADVT.

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"We also note that our good friend, Vin Murria, steps down as Softcat’s longest-serving NED. Murria still has plenty to keep her busy, mind you, including her own firm, AdvT."

[cf456] 25/10/2024 12:07

I think you're right - it's sectoral rather than stock-specific. Once the budget is out the way and things are clearer, the share price can take off on another run.

It's good to know that the acquisitions are doing so well and the company is awash with cash so has a huge safety buffer. Hopefully an acquisition or two will surprise everyone.

[sharpedge7] 25/10/2024 11:55

I suspect it’s just people not buying into AIM at the moment…
It had previously drifted below a level I guess long holders would regard as “fairish”; (certainly this one) and can only assume that was due to lack of news.
Obviously DYOR.
Hopefully news and/or better times around the corner.

[cf456] 21/10/2024 11:32

A bit frustrating watching the share price drifting lower for sure, especially with the company doing so well.

It'd be interesting to know why people are choosing to sell.

[x54v] 16/10/2024 16:16

Definitely undervalued at this level.

Cash = £83.3m (as per 27/09 RNS)
SAA holding = £23.9m (12m shares at 199.5p mid)
Acquisitions = £103.5m (£34.5m cost x 3 as per VM statement in Feb):

"From everything that we've seen and what we've heard to date, ignoring the cash element, we'd probably get 3 to 4x what we paid for the businesses we've got immediately. Certainly 3x - without question"



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That gives a £210.7m valuation (158.2p).

The team will have optimised the acquisitions plenty since Feb so that valuation will likely have risen further.

So the market isn't recognising the current value in the shares imo. And it certainly isn't factoring in the likelihood of further acqusitions. With a hefty cash balance there is plenty of firepower for those.

A frustrating wait, but value will out in the end. VM certainly has prior history and ADVT has a long way to go in share price appreciation if it's to catch up with Advanced Computer Software:

"Vin was the founder and Chief Executive Officer of Advanced Computer Software from 2008 until 2015 and built the business organically and through acquisition from an initial cash shell to its $1.1bn to Vista Equity Partners, delivering shareholder return of almost 1,100 per cent. The business was named Tech Company of the Year (2014) having grown to be the 3rd largest UK headquartered software business."

[sharpedge7] 16/10/2024 15:49

Saatchi been rising

[x54v] 16/10/2024 15:08

Would love an RNS announcing a chunky earnings-enhancing acquisition which could really get the share price moving. The ambition is certainly there:

"We recently made a bid for a business that just got bought by another player...and we bid a very substantial amount of money, upwards of 160, 170 million and it got taken out for 210."

"The next one is...and we're already talking to other parties. There's a combination of larger scale organisations which will be transformational plus there are smaller opportunities that will continue to be bolt-ons, so happy to do both."

"At the moment there are still some really interesting opportunities and hopefully we'll bring some of them to fruition."



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One day it will happen and those selling will be be chasing the price a lot higher to get back in again.

[elsa7878] 15/10/2024 14:54

Certainly and i’m partially responsible.