Cleantech Lithium Share Discussion Threads

[rangers99] 12/2/2002 22:19

Current cash position + property = current market cap (if you assume similar losses as interims). So if "trading profitably" for next financial year then looks worth a punt.



Press Controlp for profitability
Controlp, one of last year technology IPO, looked like it might disappear without a trace, but an acquisition today should see it trading profitably by February, writes Joanne Wallen.

Controlp (CTL) started life as ctrlp.com, and intended to use the specialist print software it had developed to offer small and medium businesses and printers a service that would match the corporate print requirements with the printer capacity.

However, chairman Warren Tayler told Citywire it soon became clear that margins in this service-based business were too low. The company therefore transformed itself to selling its software to large corporate customers and printers.

So far, Controlp has attracted five major corporate customers, the largest of which is Cannon UK, and is in discussion with several more. It has also sold its software to printers and print management companies.

Today the company announced the acquisition of Documedia, a document management services company, which Tayler said the company was elighted with?

Documedia, he said, has a good database of customers, and was looking at using Controlp software for its customers. It then ran into trouble, and Controlp stepped in to upport Documedia and take advantages of synergies between the businesses?

Controlp will pay around ?.65 million in cash for Documedia. However, some ?.2 million of this is covered by freehold property owned by Documedia. Tayler said if necessary Controlp could sell these properties and lease them back to raise further cash.

The combined businesses should have an annual turnover from the start of the next financial year in March of ?0 million, and will be trading profitably. Controlp has already managed to reach  cash equilibrium? Tayler said, and should be generating cash by the start of the year.

Before the acquisition, the company still had some ? million of the ? million it raised last May, when it floated on AIM.

That ? million was just around half of what the company was originally hoping for, and it was not long before Controlp had to scale down its ambitions and stick to building the business in the UK.

t was upsetting to wind down our ambitions after the float, but in hindsight thank goodness we did? said Tayler.
Controlp claims customers using its software are seeing savings of anywhere between 8% and 20%. The software automates much of the print procurement process, and eliminates a great deal of time and error between print purchaser and printer.

Tayler said the company has a healthy prospect list, and is keeping its eye out for further acquisitions, while focusing on conserving cash and becoming and staying profitable.

Shares were unchanged at 10p, valuing the company at just ? million. With around ?.3 million of cash in the bank, properties worth ?.2 million, imminent turnover of ?0 million and profitability, they should be worth a nibble.

[johnduffield] 21/1/2002 22:29

Thanks for this minuteman. Sorry I was slow to come back to you.

[minuteman] 17/1/2002 12:04

Victim of Dot Com bubble where institutions pushed companies to become world leaders, when in reality that was clearly unattainable, marketing costs world wide come to a hefty lump mate. In fact too much to sustain the business before it had built up a client base that could sustain their ambitions. Ambitions now are just UK for the time being, but will get foreign work due to the internet. That is why it will be a solid 10millionmturnover with, I'd say 1million profits.

I am assured the Documedia buy was "a bloody good bit of business" as only cost 400k as there was property to the tune of 1.2 million with the deal.

Now, Documedia lost only 15% of their business when they went into receivership... a very low amount... and the purchase by CTL was a clean one... i.e. No debt burden or any other ties. I am also informed that the 15% of companies they lost are now being re quoted for.

At 1 million profit (that is not taking into account revenue from core business), puts them on a forward pe of 4.

That coupled with the Controlp side of thebusiness where they have had more inquiries about their product in past 4 months than past year shows you they are moving forward very well. Cannon UK deal is the biggest but there are others in the pipeline.

You gotta do your own research but if I can help any futher let me know and I will give you my humble opinion.

Am sitting on a nice amount now and looking to by more on both strength and weekness.

Good luck

[johnduffield] 16/1/2002 23:51

If the Documedia business is so good how come they went bust?

[minuteman] 16/1/2002 16:26

Heres 1/ NAV of liquid assets = about 15.5p
Its share price is 11p. Therefor the business, which is to break even this year and go profitable on 10million turnover next year is valued at nothing at todays price.

So, after nexts years estimate at £1 million profit (not my estimate, the chairmans), puts this stock on a forward pe of 4

Hows that grab you for a software company??

There are many more, but you asked for one.

[will02p] 16/1/2002 15:31

Question.....One good reason why I should invest money into his company.

[minuteman] 15/1/2002 15:50

There are no significant options and they are to be taken at between 10-15p, so would add to value if taken and represent only 6% of equity.

More I look, more I like

[minuteman] 15/1/2002 14:14

Emailed Mr Tayler and recived a very amiable reply.

He said he was very dissapointed to see the share price slide after Cannon announcement.

Sees Documdedia as an excellent syngergistic purchase to complement CTL

Says, they are being very careful with cash using it to give "value adding" investments,

Also he says as far he is concerened, nothing they have said about becoming profitable next year March 2002-Feb 2003 has changed and is on track.

He also said of the dot com bubble that to fight the institutions and how they feel about .coms is pointless until they have enough newstock holders at the new prices, to gain stability.

He invited me to call him, for which I will do. If any of you have questions lets me know.

[rangers99] 15/1/2002 04:42

Anyone know how many stock options/warrants are outstanding. Are they significant?

[minuteman] 15/1/2002 00:15

Thanks NJB.

What a list of Blue Chip Clients eh??

[minuteman] 14/1/2002 13:52

Have just email, Warren Tayler, to try and capture his thoughts for the company.

have you all read the press releases on their site

www.controlp.co.uk

The aquisition of Documdedia, looks like creating another 40 jobs at Bury St. Edmunds as of 13th December. Definately not looking to consolodate then... growth, growth growth.

The more I read, the more I am delighted to be in these, had another 15k on friday.

[minuteman] 14/1/2002 11:32

Why do you keep writing the same thing... stay on the same thread aswell, man.

[empirestate] 14/1/2002 08:14

this specialist print solution provider currently valued at net cash should see some added value from the business valuation shortly

[njp] 13/1/2002 23:22

Link to their website . Last update 9/01 and no mention of recent events...receivership..acquisition.

[minuteman] 12/1/2002 13:59

Where one sells, another buys, only £5k anyway.

Where is investor relations page??

Thanx
M

[minuteman] 12/1/2002 00:41

As of last years results yes. You have not priced any of the future earnings by Documedia or Cannon contract

All you have done is say, that Cash = share price

It would be fair to say, even by the most conservative of estimators that the company is worth more than the cash in hand given the changes and contract wins.

IMHO 50% more + 15p per share at least, in the very short term

[reetus] 12/1/2002 00:22

£4 million in the bank, 40m share in issue = 10p a share approx. So looks as if it's fairly valued for the time being.

[minuteman] 12/1/2002 00:17

Not the share price.... turnover up 1000%!, my bad, I know in the title.

As for low price.. Basically looked as if nothing was happening with the company except cash burn... you only have to look on here to see how many posts are about on them.

Like I said... undiscovered. The cash burn will slow and it looks like a company that is totally changed, for the good.

[aghumra] 11/1/2002 16:37

MM sell at the end, what's that all about?

[internet bubble] 11/1/2002 16:21

Some good points........Hope that t/o of £10m doesnt have £15m operating costs to run it, would be better to have some idea of the running costs.

Incidentally had a look at documedia's web site , Ive attached what i found on investor relations page.

[internet bubble] 11/1/2002 15:02

"Currenty trading off a negative pe, to change this year.. Chairman stated he expected to turn to profitability this year. (Can he be trusted? who knows), but looks good IMHO."

This statement was made before the Documedia acq. is it still attainable ? What does the accounts for Documedia show profit/loss ? Why did it go into receivership ?

Any answers before I part with my cash

[aghumra] 11/1/2002 14:44

Turnover predicted to be £10m this year, that's a 1900% rise!

[minuteman] 11/1/2002 14:22

About that spread LOL, 5%