Dm Share Discussion Threads

[jeff h] 19/5/2009 22:48

guru - I've been adding recently...AGM with a usual Trading Update on the horizon

[guru11] 19/5/2009 21:58

Suspose if one wants more than 5,000 shares then one can always ring the broker and get a quote. The MM are trying to control trades at present. If a favourable announcement was to come out then the price could firm up even more quickly.

[empirestate] 19/5/2009 15:14

guru it will happen here just needs a few buyers to come in, appears to be quite illiquid which is good if u r in at the bottom of the graph

[guru11] 19/5/2009 12:55

The bid price is slowly being moved up was 6.5 now 7.5p and you cant buy stock on line now either, but then there has only been 3 buy trades in the last couple of days.

So is there something in the wind? Are these about to move up to 9 / 10p ?

[guru11] 18/5/2009 08:24

empirestate - agree -
this one at present could turn out to be a sleeping beauty at present.
All the signs are there for a break out, and is that break out slowly but surely starting now.

[empirestate] 14/5/2009 14:13

guru may be unloved due to the lack of interest, but appears a decent play for the next 3 months with the graph breaking out, acquisitions to boost future revenues and on a low p/e

[guru11] 07/5/2009 20:51

DMP certainly falls into that catagory of unloved stocks at present.

Until we have an update or more news the share price will stay the same.

But we have proven management here who has produced the goods in the past, and DLG was already in a break even situation in January - so things should be going even better now.

So one should expect when there is news we will see a strong share price recovery.

[hamilton joseph davies] 07/5/2009 08:26

What was it that Warren Beatty said about unloved stocks?

[ted hankey] 07/5/2009 08:24

Level 2 anyone?

[guru11] 07/5/2009 08:15

Presumably the businesses are being consolidated well, as management said that DLG was in a break even situation in January. Do we have any forecasts for the coming year? What we could do with is an update statement some time as the stock appears to be flat at present with no forward news.

[guru11] 08/4/2009 21:17

Management now have a lot of work to do consolidating the two new businesses, but they have always produced the goods in the past, so it is difficult to criticise their actions. DMP has been a long term waiting game and it is again, but what is another year if the share price recovers stongly eventually.

[aa29] 08/4/2009 14:51

Guru - wasn't the 500k just a transfer ? A matching buy and sell 0.005p apart.

I think management have shot themselves in the foot here re current share price. The market price for raising funds might have been 5p or lower but as Adrian Williams has stepped in as underwriter, the 5p offer price is suggesting that management believe the market price should be lower than the previous 9.5p. The benefit he might gain from hoovering up what's left at 5p is more than outweighed by the fall in share price.

Having reread announcement, not much in the way of bad news. Trading update doesn't really update anything that's already been announced. Slight negative is that they want cash to give them more headroom in borrowing facilities (can, of course, also be viewed positively) as well as funding the initial acquisition costs.

[teh_doctor] 08/4/2009 13:38

arraws guru

[guru11] 08/4/2009 13:34

There was a 500k sell on the 3 April. Probably the market makers marked the share price down after the announcement to avoid - what they thought of a small rights issue - more possible sells and to protect their position a bit.

If DLG and PDV are merged together with DMP, as the other acquisition was which was turned around straight away from a loss to a profit situation, and it all jells together well, then in time this share price could look cheap.

But in the meantime until August, it will be a waiting game as the share price will tread water.

Looking on the positive side - DLG was said to be in a break even situation last January, and this would have been the second time that management appeared to have performed well. They do appear to be wise guys in business.

[aa29] 08/4/2009 10:22

Can't see any bad news from a quick read of the rest of the announcement. Share price seems to have reacted to the open offer price of 5p and an early 25000 sell.

[aa29] 08/4/2009 10:16

Acquisition of PDV and Open Offer of 20,788,637 Ordinary Shares at 5 pence per share on the basis of 1 Open Offer Share for every 7 Existing Ordinary Shares


The Group announces today that it has acquired PDV, an online and offline lead generation business, for an initial cash payment of £200,000 and a maximum aggregate consideration, including deferred consideration and earn-out, of approximately £1.13 million together with a fully underwritten equity Fundraising of 20,788,637 Ordinary Shares at 5 pence per share, on the basis of 1 Open Offer Share for every 7 Existing Ordinary Shares to raise £1.04 million (before expenses).




Highlights

Acquisition of PDV

Acquisition of PDV, an online and offline lead generation business for a maximum aggregate consideration of approximately £1.13 million.

Strengthening of the Group's position as a leading provider of database management services following the acquisition of DLG in November 2008.

Further step in achieving the Board's strategy to create a market leading, fully integrated online and offline lead generation and direct marketing services business.

Fundraising

Fundraising to raise £1.04 million before expenses (£1 million after expenses).

The Open Offer is to be made by way of a Circular to be sent to Qualifying Shareholders who will be given the opportunity to subscribe for Open Offer Shares pro rata to their existing shareholdings at a price of 5 pence per Open Offer Share on the following basis: 1 Open Offer Share for every 7 Existing Ordinary Shares.

The Open Offer is fully underwritten by Adrian Williams, Chairman of the Group, at nil cost to the Company.

Net proceeds to be utilised to satisfy the immediate and short to medium term cash costs of the Acquisition, as well as providing additional capital to strengthen the balance sheet of the Group. This will provide additional working capital for the Group and significantly increase DM's covenant headroom.

Irrevocable undertakings from the executive Directors of the Group to take up their Open Offer Entitlements, representing 71.11 per cent. of the Group's issued share capital prior to the Proposal.

Application will be made to the London Stock Exchange for the Open Offer Shares to be admitted to trading on AIM. Dealings are expected to commence in the Open Offer Shares on 28 April 2009.

The Circular to Shareholders setting out details of the Open Offer, accompanied by the Application Form (if applicable), is expected to be posted to Shareholders today.

[guru11] 09/3/2009 11:28

Write up in the IC last Friday. Appeared to be a bit muted, saying that they had no forecast for the coming year, and much depended on the consolidation of DLG.
However management has always come up with the goods in the past and I am sure that management will do so again.

[aa29] 09/3/2009 10:11

Some extra points after a first read of the full announcement:

During Jan 09, DLG was already approaching break even, considerably ahead of their turnaround plan.

Net debt appears to be c£8m with new term debt taken on to fund the acquisition and dividend.

H2 profitability of the old business appears to be down around 10% year on year - how much of this is the recession and how much down to a small management team diverting its focus onto the DLG acquisition is not clear.

[plast] 09/3/2009 09:15

interesting times ahead.

[aa29] 09/3/2009 08:41

Full link to the announcement



Party Gaming also setting up a gaming site for DM

[aa29] 09/3/2009 08:39

FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2008

DM, the direct marketing group specialising in customer recruitment and database management, announces its final results for the year ended 31 December 2008.

A Transformational Year

Established UK market leader in its sector, announces robust trading figures including like for like profit after tax up 4 per cent.;

Like for like operating margin at a record 31 per cent. (2007: 27 per cent.) calculated on operating profit (excluding acquisition) before exceptional costs;

Critical mass achieved in database activities via transformational acquisition in November 2008 of DLG, one of the UK's largest owners and providers of consumer lifestyle data to the direct marketing industry;

Following reorganisation into Customer Recruitment and Database Management divisions, DM is now a fully integrated customer recruitment and database management business with extensive operations across the core media of post, phone, mobile, email and internet;


Major expansion of Group databases to now include, approximately:

-
Postal details: 23.1 million (2007: 7.5 million)
Telephone numbers: 5.4 million (2007: 2.2 million)
Email addresses: 5.9 million (2007: 0.1 million)
Mobile phone numbers: 6.5 million (2007: 0.7 million)

Gross profit of £8.57 million, up 8 per cent. (2007: £7.93 million) and gross margin improving to 47 per cent. (2007: 40 per cent.);

Full year turnover down 9 per cent. to £18.27 million (2007: £20.01 million) following reduced first half gamecard volumes. Record second half turnover of £10.78 million following acquisition of DLG;

Consolidated Group EBITDA of £4.50 million, down 19 per cent. (2007: £5.58 million);

Exceptional and restructuring costs in relation to Strategic Review and acquisition of DLG of £613,000;
Adjusted earnings per share, excluding DLG reorganisation costs and exceptional costs of Strategic Review, up 3 per cent. to 2.57 pence (2007: 2.49 pence). Basic earnings per share down 9 per cent. to 2.15 pence (2007: 2.37 pence); and
£5.08 million returned to shareholders by way of a substantial interim dividend of 3.5 pence paid on 23 December 2008. Total dividend for the year ended 31 December 2008 of 3.5 pence (2007: 0.3 pence).

DM Chairman, Adrian Williams said:

'2008 was an exciting year for DM. Despite the market turbulence we delivered a robust trading performance, including like for like profit after tax up 4% and operating margin up to a record 31%. We were also presented with unmissable opportunities, which culminated in the acquisition of DLG, one of the UK's largest owners and providers of consumer lifestyle data to the direct marketing industry. DM is now a fully integrated customer recruitment and database management business with extensive operations across the core direct mail media of post, phone, mobile, email and internet. We look forward to the future with great expectations.'

[poppadom2] 09/3/2009 08:36

Was I right or was I right. excellent results depite an acquisition that was going to cost them a bit. Lovely growth nevertheless and super dividend (maybe missed by most)

[guru11] 08/3/2009 21:24

Results tomorrow or Monday 16th ??

The forward pe makes these cheap, but a lot depends on how well they do with intragrating DLG, but then management does have a proven track record, but I have reservations (not if but) when the share price will actually kick off.

A waiting game, but the all important forward trading announcement will be very important to the share price.

[poppadom2] 06/3/2009 23:59

This is going to be fun. DM has positioned themselves in their sector as market leader. The new ceo has shown commitment like very little c.e.o.'s dfo these days by buying £ 1.5mln worth of shares. I get the message and possible one or to of you out there will agree this is going to be as good one. Nice for a change !!