Asian Growth Properties Share Discussion Threads

[mr.oz] 07/6/2003 13:02

Have e-mailed company , Friday afternoon , re results date - will post any clarification on receipt.

pasted this from ample board from last week press , I believe:

Software supplier AIT provides an object lesson to investors on what can happen when a good, cash-rich company takes a wrong turn. But it also shows how new management can revitalise a good business in a short space of time.

A supplier of cutting-edge customer relationship management (CRM) software to the finance sector, AIT enjoyed huge success in the late 1990s and was tipped to become a global player. Clients included Alliance & Leicester, NatWest Stockbrokers and Lloyds TSB. It also had good working relationships with original equipment manufacturers (OEMs) around the world.

However, it misread the direction of its niche market, made acquisitions at the wrong time and badly managed its cash. During the year to March 2002, it ploughed £9.5 million into the development of its new wave 'Portrait' CRM software. It also sank £13.1 million cash into the purchase of US group IMA. All of this, when added to other investments and expenses, dramatically stretched its balance sheet.

The cash crunch came in May last year when it announced that it had wrongly recognised sales revenues that had yet to be secured. Instead of reporting profits of £6 million on sales of £44 million, its board at the time horrified the market by announcing that the company would actually be borrowing £600,000 from directors to meet working capital requirements.

The cash problems were so severe that at one stage AIT's banks and creditors instructed UBS Warburg to find a buyer for the entire business within three weeks.

It was into this environment that Nick Randall stepped to save the venture. The founder of Oxford Magnetic Technology and the man behind the Aim float of Airtech in 1996, Randall realised how ridiculous it was for a company of AIT's standing to be put on the market in such a short space of time and set about raising sufficient cash to rescue it.

He put together a consortium, which included founder Richard Hicks and US-based Bessemer Venture Partners. The core consortium injected around £8.5 million of equity loan finance into AIT. This was conditional on a fully underwritten £12 million rights issue conducted by Arbuthnot Securities.

Since this £20.5 million injection, the group has been swiftly restructured. Says Randall: 'Once we secured the short-term cash position, we set about ripping costs out of the business, repositioning the software, applying vigorous cash management and getting back to what we do best – making money selling niche software to a market that is worth around £3 billion annually.'

The bulk of the value of the IMA acquisition was written off, as was more than £2.6 million of other investments. Staff numbers were reduced from 515 to 209 and the group relocated to one location in the US and the UK (its main office) and a small outfit in Asia/Pacific.

'What we have is a classic turnaround in motion. We have already restructured the debt, reduced overheads by £20 million and scaled back short-term ambitions.'

The extent of this surgery was evident in the interim figures, as the loss before tax was a galling £37.8 million. Sales slumped by more than 50 per cent to £8.4 million. For Randall though, most of the pain is out of the way, and AIT is back on the road to growth and profits.

'What many investors have missed', he says, 'is that we still have substantial, no-risk recurring software support revenues of around £6.7 million. On top of this we have projected revenues of around £12 million from supplying software and services to our 70-strong blue chip client base. Then, of course, there is the OEM market, where Unisys, amongst others, is a keen fan and promoter of our wares'.

Randall is also keen to point out that AIT's newly launched Portrait suite is enjoying a successful introduction and rollout in the States and Europe.

The pain of restructuring will ensure that full year figures to end-March 2003 will still be ugly – operating losses of £18 million are expected prior to at least £23.1 million of exceptional costs. But George O'Connell of house broker Arbuthnot says AIT could post a pre-exceptional profit in the year to March 2004, before ramping up earnings the year after.

With a market value of £3.77 million, he reckons the shares are worth buying as AIT 'shows signs of bouncing back'.

[horsetr] 05/6/2003 23:39

Below is an extract from Comdirect, although not sure on the validity - as PTS results came out before the due date as shown on Comdirect. Anyway Comdirect's date shown below below. I will give AIT a call tomorrow morning.

Name AIT Group Plc
Registered number 03358035
Head office The Malthouse
45 New Street
Henley-on Thames RG9 2BP
Telephone [phone]
Fax [phone]
IR contact Gareth Bailey
IR telephone [phone]

Year established 1986
Annual result date 13 June
AGM date 1 August
Financial year end 31 March
Website www.aitgroup.co.uk

[mr.oz] 05/6/2003 16:41

phew! - excellent day , saw me go from around -10% at open to up 10% at close.
You get back in Santangello over the last few days?
Had wondered if I had got back in too early the other day on a limit order but this time I'll hold out till results- any definite date yet anyone??

[horsetr] 05/6/2003 15:30

Oz
Cheers for that. I have just set up a Comdirect account as well although have not traded on it yet. I have been using Halifax thus far although need to use both as often can't get the volume through Halifax.

I am really looking forward to this run up to next weeks results. The price is starting to reflect what the share is worth.

[mr.oz] 05/6/2003 11:55

NMS is under ADVFN fundamentals/ quote info and is calculated evry so often( 6 months?)so rarely reflects the true situation when trading in a share is different to "normal"
I deal online with ComDirect and am quoted a price and a max size for that price - hence I can gather whether stock is short/in good supply , at the brokers over time and multiple quotes.Often, I may be told that my requirements are outside the max size online , so then have to speak direct.
Is that what you meant?

e.g. at the moment am quoted 27.6p to buy max 10k / 26.5p to sell max 25k
(NMS at 2000 is irrelevant)

[horsetr] 05/6/2003 11:45

Thanks for that mr.oz
How do you find out what the NMS is, without keeping on trying to buy and being told to go route to dealer and ammend trade? Are you on L2?

[kingtrade] 05/6/2003 11:13

This train has left the station!!!

[mr.oz] 05/6/2003 10:17

HorseTR
NMS for AGP is just 2000 ( as stated by ADVFN... but this is now probably out of date and nearer 10k? )

I guess your trade will involve many times the NMS figure . I believe if it is six times NMS , the report of the trade will be delayed by 1 hour. If your trade is taking time to fill , it may only be reprted at the close ,

-"NMS -Normal Market Size is the number of shares the market can comfortably trade. The figure will vary from company to company and time to time. In reality, the NMS should make little difference to the private share dealer but in some cases your broker may take more time to fulfil an order if you purchase an amount well above the NMS. "

[brain duffy] 05/6/2003 10:02

and the pattern continues - up, aup, up, down, down, up, up, up - and up we go again - we'll see 35p from this shoot...

[horsetr] 05/6/2003 08:54

What is up with ADVFN trade report this morning? I have have bought a fair volume this morning although my trades are not showing? Anyone else experiencing similar? Someone doesn't want to see the buys going through?

[goggin] 03/6/2003 00:53

How far will it retrace, to about 25p - what do you think?

[santangello] 02/6/2003 18:30

Chaps, I am out.
But will be back in massively if 25p is bottomed out pre-results.
My info is still on course, so no worries there.
The natural drop off is pure magic for someone like me......wonderful buying opportunity around 25p, so long as it is pre results.

Good luck.

[fouroaks] 02/6/2003 15:55

Goggin - ok, fair enough, just wanted to make sure I hadn't missed anything in the press maybe. I certainly wasn't complaining - just being cautious ;-)

Although I bought into AGP a short while ago following a reccommendation from a trusted source, I haven't yet had time to 'do the research' for which I wholeheartedly appologise to all you long-term AGP fans. If someone has a short precis of the expectations of results (are they due June 13th?) I would much appreciate it.

If anyone's still interested in L2 we have...

Buys - 30k @ 27p & 52k @ 26p

Sells - 50k @ 29p & 32k @ 30p

...and thats the lot.

[mr.oz] 02/6/2003 15:23

I'd go with that goggin - any details on L2 , Chaps?
Another buying opportunity may be about to present itself

[goggin] 02/6/2003 14:38

F.O. -- Why are we retracing? we need time to breath man, this has risen from 9.5/10p to a high of 32/34 last week, its natural to retrace, in fact, I go so far as to say it is healthy.

We need to retrace to get the next foot on the ladder, no bad news then my friend.

[fouroaks] 02/6/2003 13:37

May I reiterate Horse's question - is there evidence of results on June 13th? It was around that time in 2000 and 2001, but mid august in 2002.

[fouroaks] 02/6/2003 13:35

Goggin - my question would be "why are we retracing"? Have bad rumours got out about the results? Or is it just pre-results jitters?

[scotty500] 02/6/2003 09:12

L2 3 v 1 !

[horsetr] 01/6/2003 21:57

Pls can someone confirm if the results are actually due on 13 June as shown on Comdirect?

[tonyleongson] 30/5/2003 08:14

morninG ALL. CHECK OUT APC.ONLY 5 TRADES SO FAR COULD ROCKET

[scotty500] 30/5/2003 08:12

Their it blows again - Probably be a load of trades reported late as yesterday.

[tech] 30/5/2003 08:10

Up again. Must be news shortly.

[scotty500] 30/5/2003 08:02

Early tick up L2 3 v 2

[tech] 29/5/2003 18:09

Somebody bought 82k @ 34p.