Castle Street Share Discussion Threads

[zac_mo] 17/1/2016 10:15

Arlington...give it a rest....months of de ramping and now we are days from re listing and you are looking for the people who researched and bought this stock to many. Their track record speaks volumes and have been spot on. No need for them to post here whilst suspended. They will no doubt be back come Thursday. Looking forward to a very strong week and first stop of 50p

[zac_mo] 17/1/2016 10:10

Do your research bud.....look who has taken a 25% stake...and just look at their track record. With some serious cash in the bank and selection to be turned around this is a no brainer at 32p....look at their previous projects. ..ctp, RCN

[suneday] 17/1/2016 09:38

This is interesting as a buy and build with this management.
However, and it doesn't really matter, I am having difficulty in seeing why it should attain the, I believe, fanciful prices being touted around the place on readmission.

[arlington chetwynd talbot] 17/1/2016 02:24

In fact I haven't seen IBANS or Chimers for a while either? Where have they all gone?

[arlington chetwynd talbot] 17/1/2016 02:20

Anyway, where's TC? Haven't seen him around for a while?

[arlington chetwynd talbot] 15/1/2016 18:05

Isn't it just...

[zac_mo] 13/1/2016 17:51

Do not under estimate the value of MXCP in this deal

[mr roper] 13/1/2016 14:46

can hardly contain my excitement...

[crapcrap] 13/1/2016 14:41

5 trading days left

[mr roper] 13/1/2016 13:56

no harm dreaming...

[phenomenonnick] 13/1/2016 13:48

I think Mr Roper is being more realistic than zac - 100p would be incredible but it's £172m market cap even if no new shares are issued. Hard to see them doing an acquisition which would create that much value in six months. We can dream though!

[albert3591] 13/1/2016 13:40

who are you?

[mr roper] 13/1/2016 13:39

why does it matter to you?

[albert3591] 13/1/2016 13:30

Why on earth would anyone want to invest good money from csi into bhrd.

[mr roper] 13/1/2016 13:30

that would be nice, Zac. I'm hoping for 60-70p or so.

[brewsters_millions] 13/1/2016 13:26

You might want to consider investing in BHRD upon re-list to make your profits from here work for you ;-)No advice intended

[zac_mo] 12/1/2016 22:50

£1 before the summer

[mr roper] 12/1/2016 10:16

I reckon 45p open, zac. fingers crossed for more. ideally another acquisition shortly after listing would light the blue touch paper. They've got near 30m in cash and debt to play with so shouldn't be too tricky to find something

mxcp..always have a plan.

[zac_mo] 11/1/2016 22:08

No brainer this one. Roll on the 21st...50p opening price? ? Place your bets

[phenomenonnick] 11/1/2016 20:40

Well - looks like I properly killed the buzz on here :O

MXC has developed an impressive reputation in a short space of time. To be clear, I'm optimistic this is going to be a great investment.

[phenomenonnick] 08/1/2016 08:17

ok zac_mo highly speculative but as a successful example, Alternative Networks? £147m revenue, £202m market cap with £18m debt. Suggests enterprise value for £100m revenue business on similar profitability ratio would be £150m, say £12m debt, so £138m market cap. How do we get there? On same terms they've just paid, they need to spend around £70m. Got £16m plus the £12m of debt we're happy to end up with, so £28m. Need to issue equity of £42m. At (say) 45p a share that's 93.3m shares. Share in issue on 21 Jan is 172.5m so total shares in issue post £100m revenue is around 266m. So when we have £100m revenue and market cap of £138m we're looking at 52p a share. Good but not incredible.

This was my original point - I think they've paid a near-public company multiple for their first business. They need to buy the next acquisitions on much better terms than the one they've just bought. IF it turns out that Selection is really solid and a great platform, then it's probably worth it to have something to build on. I do think they can get (much) better terms for their next acquisitions, suggesting 52p a share is worst case. That's what it would take to get the 100-120p people are talking about.

[zac_mo] 08/1/2016 07:23

100million revenues at least within 3 years (will be a lot sooner) but can someone do the maths of the potential. Which other companies have currently have revenues of 100 million.

[zac_mo] 08/1/2016 07:21

So MXCP up almost 50% on the back of CSI deal. They hold almost 25% and it is their biggest holding to date so they will make sure it delivers. Relist price around the 50p mark. Anything less than that and i will be having at least another 5k that I am freeing up currently. Take a look what they did at NORTHGATE before they got swallowed up....They have been here and done this before so the business model works and will reward shareholders handsomely! There words not mine.

[mr roper] 07/1/2016 10:04

Castle Street Investments to buy IT services firm for £35m
Edinburgh-based Castle Street Investments is set to buy the IT and cloud services provider Selection Services Investments in a £34.8 million deal.

The AIM-listed investment firm, which was created by chairman Bill Dobbie following the sale of his Cupid online dating business, said it has conditionally raised £30m through an over-subscribed share placing which will fund the proposed reverse takeover acquisition.

Tech investment firm MXC Capital will take a 24.9 per cent stake in Castle Street Investments and MXC partner Andy Ross will become Castle Street’s chief executive.


Mr Dobbie said: "It has been our stated investment strategy to seek investment into a profitable and cash-generative business with an experienced management team, good revenue visibility and growth opportunities.

“We believe that in Selection we have identified a business that meets these criteria and look forward to an exciting future."

Mr Ross said that the high degree of fragmentation in the smaller end of the IT services sector provided an “exceptional opportunity” for a buy-and-build platform focusing on IT solutions and cloud services.

“The combination of a strong balance sheet, the new management team we are building and MXC’s proven track record in the sector is a powerful one that will set us apart and presents a great opportunity to deliver value for shareholders,” he said.


Selection Services, which has offices in Reading, Bristol, Bromley and Croydon, has over 500 customers and annual revenues of around £35m.

The acquisition has to be approved by shareholders at a meeting on January 20.

[mr roper] 07/1/2016 10:03

Castle Street Investments to raise £30m to buy IT outsourcing firm
13:21, 6 Jan 2016
By Scott McCulloch


The Edinburgh-based company notes in a statement to the AIM market it proposes to acquire the entire issued share capital of Selection Services Investments Ltd, in a proposed £34.8m reverse takeover

An investment company set up after dating website firm Cupid “realignedR21; in 2014 is proposing to raise £30 million from investors to acquire IT outsourcing firm Selection in a reverse takeover.

Castle Street Investments, created in December 2014 after Cupid offloaded the last of its dating websites on Christmas Eve 2014, began trading on the junior AIM market in January 2015.

Prior to its “realignment” as an investment firm, Cupid had had the largest fall in market value of any Scottish AIM-listed company in 2014, with its shares having plunged 70 per cent before the last of its assets were sold.

Castle Street Investments Plc was registered as a newco with Companies House on December 8, 2014.

The Edinburgh-based company notes in a pre-Admission statement to the AIM market on Wednesday it proposes to acquire the entire issued share capital of Selection Services Investments Ltd in a reverse takeover.

Bromley-based Selections' most recent accounts, covering the 2014 year to June 30, show a pre-tax loss of £4.88 million on sales of £36.3 million.

The company had reported a £3.88 million pre-tax loss on sales of £33.4 million in restated 2013 accounts.

The 2014 accounts show Selection ended the year with net liabilities totalling £8.24 million.

Castle Street Investments proposes to acquire the business for an aggregate consideration of £34.8 million “on a cash-free, debt-free basis”.

It proposes the £34.8 million consideration will be “payable as to the £34.4 million in cash and as to the balance by the issue of 1,353,810 new Ordinary Shares to certain key executives of Selection”.

Castle Street Investments proposes to issue 172,55,803 Ordinary Shares of 2.5 pence at a price of 30 pence per share, with “anticipated market capitalisation on Admission approximately £51.8 million”.

On admission, Guernsey-based corporate finance firm MXC Capital will be the largest shareholder with a 24.92 per cent stake.

Investment firm Kestrel Partners LLP will remain the second largest shareholder in Castle Street Investments with a 16.36 per cent stake.

Kestrel Partners chief execute Matthew Royde is currently a non-executive director to Castle Street Investments.

Cupid co-founder Bill Dobbie will be the third largest shareholder with an 8.51 per cent stake post admission.

Also holding stakes post Admission will be Coltrane Asset Management (6.44 per cent); Elevage Ltd (3.86 per cent); Liontrust Asset Management (3.58 per cent); and Henderson Volantis (3.22 per cent).

Castle Street Investments expects the new shares to be admitted on January 21.