Cello Health Share Discussion Threads

[marksp] 01/3/2006 22:44

G2

Any chance of a header with some info on

What it does
Shareholders
Things in its favour
Risks
Future Plans
Buy/Hold/Sell ......and why
Timescales we are looking at ie is a short term punt, months or.....whatever


Cheers

M

[cootuk] 01/3/2006 22:40

Acquisitions since July 2005.

Leapfrog t/o £3.3m, profit b4 tax £0.3m, bought for £1.74m cash+loans and 1m shares, with potential £3m up to 2009 with max 75% shares.

Value Engineers t/o £3.7m, profit b4 tax £0.6m bought for £2.2m cash+loans and 1.9m shares, with potential £2.7m over next 2years

RS Consultants t/o £9.6m, profit b4 tax £0.1m bought for £1.2m cash+loans and 1m shares, with potential £2.4m over next 3 years

OMP possible buyout for £1.8m

Field Management £0.54m cash+shares and potential £0.3m

TMI t/o £4.9m, profit b4 tax £0.3m for £2.3m cash and 600k shares, with potential £1m over next 3 years.

At interims there net funds of £5m cash, and the above make an extra £1m+ profit b4 tax. The only thing to watch for is the share dilution effect on the bottom line for eps.

[beaufort1] 01/3/2006 22:26

Hi Cootuk, join the Cello ensemble!

(Well that's post no.9 for a thread record)

[grahamite2] 01/3/2006 17:48

Very welcome indeed cootuk. Just one more post after this and this will become the most popular Cello thread of all time!

I also like the slow steady buying. We only need to see a move part of the way towards EVO's target and we shall have made a wise decision.

[cootuk] 01/3/2006 17:09

Three of us now if I may join your thread.

I like the way they are quietly buying up profitable companies and keeping everything almost too low key. I don't expect astounding results, but do expect a pretty healthy profit.

[beaufort1] 01/3/2006 11:56

Ooh look, a tick up. Results on 14 March.

[beaufort1] 24/2/2006 09:57

Just bought in at 114p.

[beaufort1] 24/2/2006 09:12

Yes I noticed there were some hefty trades yesterday. I don't see how they can really be sells, as in such a thin market that would have sent the share price plummeting. Am tempted to take a few in advance of 14th - no sign of a run-up to results day as yet. This is just the sort of share that could get tipped in Shares Mag or a tipsheet (and then get tipped in IC in about a year's time when the share price has doubled!)

[grahamite2] 23/2/2006 17:40

Good to see you Beaufort1.

Some hefty trades today, apparently all sells - but it may be the first 5 (sic) are rollovers with the broker taken care of through a fee rather than a spread. It remains interesting that the last sell, which was substantial, has not affected the quoted share price at all. That must mean something, surely?

Anyway happy to hold and see what the 14th brings.

[grahamite2] 09/2/2006 17:52

Why is this so completely overlooked? Two threads, one with one post, the other with just 8 after a year and a half. Of course it doesn't help that neither has charts to let you see at a glance the state of play.

Evolution's latest note shows a price of 117p and target of 165; since then it's even gone slightly further down.

The directors have impressive backgrounds at top Media firms.

The 2005 results are expected to be announced on 14 March.

[grahamite2] 09/2/2006 17:46

Came to AIM with a £15m placing in November 2004.

Originally 3 divisions: Insight, engaged in healthcare market research; Leith, Scottish Advertising Agency of the year 7 years running up to 2004 with clients like Irn-Bru and Standard Life; and Target, engaged in direct marketing and database management for charities and companies focussed on the elderly, such as Saga.

2005 acquisitions: Leapfrog (consumer research), RS Consulting (quantitative B2B), The Value Engineers (brand and marketing consultancy), TMI (training advisory consultancy), Oomph (specialist advisory firm), FML (market research)

Major shareholders:

Richard Gilmore 3,218,906 9.92%
Buckmore Nominees 2,966,771 9.14%
Artemis Special Situations 2,251,837 6.97%
Octopus Asset Management 1,754,250 5.41%
Pension Services Limited 1,125,000 4.08%

Executive Chairman K Steeds, a Chartered Accountant who helped build Incepta and was formerly Chairman of Media Square, and Chief Executive M Scott, who was with WPP before working for private equity firms, each have 675,010 shares.

Accounts for 05/05/04 (incorporation) to 31/12/04 show T/O £9.4m, GP £3.9m, PBT £1.3m, P £0.8m.
Accounts for Y/E 31/12/05: T/O £52.1m, GP £26.6m, PBT £4.2m, P £2.9m

EDIT 16 March 2010 - the above information was prepared quite some time ago and has not been updated - please DYOR

[cootuk] 12/1/2006 00:28

LONDON (AFX) - Cello Group PLC said as projected, trading in the second half
of the year was significantly stronger than the first half and it expects results for the year to Dec 31 2005 will be in line with its expectations.
In a trading statement Cello said that since its listing in Nov 2004, and in line with its stated strategy, the company has more than doubled in size through a combination of good organic growth and selected acquisitions.
The outlook for 2006 remains positive with all three platforms showing good
revenue growth and forward visibility. This, together with increasing
cross-group opportunities which are emerging, gives the group confidence for the future, Cello said.

[cootuk] 03/1/2006 19:30

Anyone still interested in these?

So far we've had

Leapfrog t/o £3.3m, profit b4 tax £0.3m, bought for £1.74m cash+loans and 1m shares, with potential £3m up to 2009 with max 75% shares.

Value Engineers t/o £3.7m, profit b4 tax £0.6m bought for £2.2m cash+loans and 1.9m shares, with potential £2.7m over next 2years

RS Consultants t/o £9.6m, profit b4 tax £0.1m bought for £1.2m cash+loans and 1m shares, with potential £2.4m over next 3 years

OMP possible buyout for £1.8m

Field Management £0.54m cash+shares and potential £0.3m

TMI t/o £4.9m, profit b4 tax £0.3m for £2.3m cash and 600k shares, with potential £1m over next 3 years.

At interims there was £5m cash worth about 14p/share.
Six month diluted eps of 2.5p therefore gives p/e of about 20, though earnings heavily weighted to 4th quarter for Target so could expect full year eps of 5-10p?

The interims gave a good boost to the sp, but, despite all these buyouts since, the share price has floundered...why?

[timbo003] 17/7/2005 18:42

Cello get a plug in todays Sunday Telegraph, see link below

[frances2] 24/5/2005 09:28

capital radio said advertising was down 20% last month

[entj] 12/1/2005 16:17

Which one should I put £25k into?
and when?

[timbo003] 10/12/2004 18:49

I suspect quite a bit of Venture Capital Trust (VCT) money went into Cello for the flotation.

I own shares in a number of VCTs, one of them "Eclipse", have just sent me an update on their recent investment activities. Eclipse have around £25M to spend on AIM and unlisted companies (£5K of which is mine) and they've put £0.75M into the Cello IPO. This is what they had to say about Cello in their recent investors update:

Cello Group

This is a new AIM listed marketing services company. focused on market research and direct marketing in the healthcare and charity sectors

Our investment of £750,000 formed part of a £15M funding round, to finance the acquisition of three smaller, profitable businesses. The enlarged company now has combined revenues of £35M. The management teams of these smaller companies have been heavily incentivised to continue to grow their respective business and the Cello management team has significant experience of building similar companies through acquisition.

Sounds okay to me, but I guess I only have a £150 stake, held indirectly through Eclipse VCT

[funkycarly21] 11/11/2004 14:37

These look like a safe bet, does anyone have anymore info on them?

[brainbox100] 11/11/2004 12:34

Cello is a newly formed company made up of different highly profitable media companies. It has three strings to its bow. In advertising it has purchased bought Leith advertising based in Edinburgh. This is a company I know something about. It has maby blue chip clients and is highly respected in the industry. It has just expanded into London and I have it on good authority that it is having its best year ever with goiod new business and expansion with existing clients. It produced the phenomenol Irn Bru ads expected to scoop all the awards this year. The other two companies are a direct marketing and market research company. The new owners have told staff to expect plenty of investment and rapid expansion.
I think the aim launch was not designed to raise money. The finance has come from other sources. It will, I think, be a future avenue for raising money to take the company further. If you believe that media is about to undergo a renaissance then this may be worth a punt.

[daza75] 11/11/2004 11:37

NO - MY BROKER TELLS ME IT MIGHT BE WORTH A PUNT THOUGH

[niccwright] 11/11/2004 11:35

Does anyone know much about cello? their float seems to have passed with not much interest. any ideas why?