Coms Share Discussion Threads

[benson01] 26/5/2015 12:40

Good news?

Selling off your best assets which don't even cover a small overdraft?

Left with £2m debt, a low margin business which will find it hard to generate cash to pay off this debt.

We all know contracts won at Redstone are good revenue but poor profit

[eric moreorless] 26/5/2015 10:52

Really hope you are short.

You clearly were not expecting this good news.

Recovery starts here.

[eric moreorless] 26/5/2015 10:34

Benson, you are very boring.

Redstone been winning some huge contracts apparently, Probably why they kept it!

Now trot on pond life, the recovery just starting here.

[munkychunky] 26/5/2015 10:04

lol Benson - why are you here then? Talking it down lower?

I'm invested here for a couple of years and have topped up numerous times sub a penny, I'm sticking with it. I think most of the mess is being sold. But each to their own.

A placing now would be crazy - for what? To gain a few million quid to pay down the overdraft (I doubt they are in the market for acquisitions) - think of the cost of implementing such a placing - would be crazy, I really don't think that is happening.

[eric moreorless] 26/5/2015 09:09

At the cost of not having to do a placing.

Expect high volume of newsflow now, this really is great news today.

[benson01] 26/5/2015 09:04

There intial overdraft facility was £2.5m, now they seem to have extended it to over £3m, at what cost?

Not a viable investment for me in the short/Med term, still a lot of mess to sort out.

[munkychunky] 26/5/2015 08:51

No way imo would they consider a placing. There is no urgency to pay off the overdraft at all - the rest of the business is profit making essentially, so they will just pay it down when they can I think while growing the business.

[benson01] 26/5/2015 08:50

No placing, I think they may need one to pay off the overdraft and provide funds to improve the balance sheet in the short term

[eric moreorless] 26/5/2015 08:46

And they keep Darkside, worth a fortune alone.

Redstone is the area they can really grow the business.

Great news today and no placing.

[munkychunky] 26/5/2015 08:42

Not to pick hairs but it is clear that they are paying off more than £1m of the overdraft (currently over 3m - going to below 2m), plus there is UP TO a further £1m to come based on performance.

Looks like back to growth to me as they will be ditching the part of the company that is responsible for the losses. And I don't think the redstone business is actually low margin.

All imo, dyor.

[benson01] 26/5/2015 08:34

So £2.5m cash, and only £1m paid off the overdraft.

Now left with a low margin business, how on earth are COMS going to pay off this overraft?

[munkychunky] 26/5/2015 08:26

Really good news to get shot of the portion of the business which essentially counted for the losses reported by coms in the last report. Onwards back to profit now.

[susiebe] 26/5/2015 08:00

"I appreciate there has been no communication from the board since early March 2015 as we reviewed the Group and its strategy. Coms was a complicated business with too many disparate operations and it did not exercise sufficient control over the Telecoms business. As a result it took us longer than expected to effect this transaction. The Telecoms disposal now draws "a line in the sand' with the past, enabling the Group to operate with clarity and focus going forward.

The process to identify a Group Chief Executive has been underway for a period of time and we are currently engaged with a number of shortlisted candidates. The Board expects to make further announcements relating to this and other matters in the near future. "

I think the market will like this especially the last sentence of first paragraph.
I like that they are taking their time over appointing a CEO,looks like a few interested candidates.
All bodes well imo

[loftus16] 26/5/2015 07:59

Good news for a change.

[eric moreorless] 26/5/2015 07:58

All worth waiting for.

Great news, story starts here.

[skinny] 26/5/2015 07:50

Coms (AIM: COMS) announces that on 23 May 2015 it exchanged contracts to dispose of the business and certain assets of its telecoms operations ("Telecoms") to Timico Limited ("Timico") (the "Disposal") for an initial consideration of £2.5 million payable in cash. Completion of the Disposal is expected to take place on 31 May 2015 ("Completion"). Following the Disposal the Group will comprise its infrastructure business, Redstone and Darkside Studios.

The consideration for the Disposal comprises an initial cash payment of £2.5 million and deferred consideration of up to a further £1 million, payable in cash, based on the trading performance of Telecoms in the period to 30 November 2015. Coms will retain the benefit of its trade debtors. Timico will assume responsibility for all key supplier arrangements in respect of trading following Completion but Coms will retain certain liabilities, including the two leasehold properties occupied by Telecoms. Under a transitional services agreement, Coms is required to retain the Stokenchurch offices for up to six months post Completion.

The Board of Coms plc believes that the Disposal is in the best interests of the Company and all stakeholders. In particular, the Telecoms customers will benefit from the extensive product delivery capability that Timico can offer. Coms management will assist in the handover process to ensure a smooth transition to the new owners is achieved.


more....

[eric moreorless] 22/5/2015 12:16

Dial the number, and simply ask the question.

'Hello, can you tell me who the current CEO is please'.

[eric moreorless] 22/5/2015 12:15

Pick up the phone.

[eric moreorless] 22/5/2015 12:14

No my friend Frank is the Chairman.

If you want to know who the CEO is simply phone the company.

[teapig] 22/5/2015 12:02

Let me make it very clear here ok.

COMS have never heard of Keith Cornell.

OK.

They have NEVER heard of him .

Frank Beechinor IS the CEO and remains the CEO for the time being.

[eric moreorless] 22/5/2015 11:53

Simply phone the company if you wish to know who the CEO is.

[susiebe] 21/5/2015 07:20

EricYou must think the rest of us are stupid or blind.You alone are enough to give COMS a bad name.