Ecsc Share Discussion Threads

[euclid5] 24/9/2018 14:27

£25 per month fee

[timbo003] 12/9/2018 10:10

>>>>Ali

You have to register (which is free) to get the dashboard and the updates, this also gives you access to a few of the broker notes.

If you want access to all the broker notes, you will need to register and subscribe (there is a 10% discount for ShareSoc members I believe)

[ali47fish] 12/9/2018 08:26

Hi Tim- went to website reasearch tree- cant locate the dash board- please indicate how?

[timbo003] 11/9/2018 09:58

>>>>Cerrito

Unicorn are in the enviable position of being able to raise new "soft" VCT money each year, so hopefully there should be no need for them to sell in order to satisfy investor redemptions (as in OEICs)

[timbo003] 11/9/2018 09:53

Morning Ali

I use Research Tree to keep up to date on research notes, you can customize their dash board to list all the shares you are interested in and they will also send out regular updates on new research

[cerrito] 11/9/2018 09:45

Thanks timbo003 for posting that Allenby link and let’s hope for all concerned that we have a stable management in place.
I note no forward guidance, which to me is strange. The only comment is that they are moving closer to break even post period end. This does not tell me much except that losses continue being reduced.
This is key as cash continues to be a concern. I note their Going Concern is robust and they should be alright but there is not much margin for error. I note their comment that no further need for cash restructuring payments. I do not see a resumption of dividend payments in the next 18 months at least.

The Chairman was right to refer to significant progress and good to see that with increased revenue COGS was constant compared to H2 17 and a good reduction in admin/sga and operating cash flow deficit. I am reminded of the small size of the company.
I fret abit that they do not have the financial resources to do the investment in systems/AI that is required. Let’s hope that the £80k additions to Development Costs in this half year are sufficient.
Well done to those who bought sub 100p; I have all I need at the moment so will not be buying more but have zero intention to sell.
I see the next six months as a period of slow but consistent improvement in trading. Possible there could be a takeover bid for them given the industry will need to consolidate. Do not see them having either the cash resources or buoyant share price to make acquisitions.
PS
Let’s hope that Unicorn have patience and no need to sell

[ali47fish] 11/9/2018 09:27

Timbo Hi- in spite of the reasonable update the share price after a slight rise is down more than 10pc - good about allenby so how do you follow that reseach?

[timbo003] 11/9/2018 09:01

That was a nice surprise, although it's a bit bizarre the way the directors are changing jobs and then changing back again

Good to see that Allenby are taking over as broker. They make their research available to retail investors and they appear to have started today:

[maddox] 11/9/2018 07:26

Great results - looks like ECSC have found their feet and moving forward in the right direction. Mr Market was clearly very prescient in recent days. Whilst not yet at breakeven it is clearly within sight. The market post-GDPR and mandatory reporting of data breaches should mean that there are plenty of opportunity to go for.

Regards, Maddox

[maddox] 10/9/2018 14:23

Hmmmm Mr Market seems to think that the ECSC results are going to signal a more positive outlook. I wonder how he got that idea?

Regards, Maddox

[qs99] 10/9/2018 11:52

Just me on here?!

[qs99] 10/9/2018 10:17

Any views?

[qs99] 10/9/2018 09:35

Interesting moves ahead of update tomorrow I believe? Any views/

[sbs] 11/8/2018 11:46

Thanks for the update.

[cerrito] 15/6/2018 12:39

made it to the AGM.
Only three others there all of whom were ex employees/ pre float Directors.
About half the shares voted and all resolutions easily passed.
Directors very friendly and available for questioning.
Note that current market 2018 expectations as per a note their broker Stockdale put out yesterday are for sales to be £5.6m and the ebitda loss to be reduced to £0.7m from last year's £2.9 m and for net cash to be £1m. Interesting to note that these 2018 market expectations are markedly better than those given in February with revenue at £4m and ebitda loss at £3 m. Note that IFRS15 is now in force: I did not get the impact that will have.
I did not really get the chance to go into the background of the board changes of April except to learn that there was an inevitability as to what happened.


Both Mathewson and Gooch gave me the impression of being actively involved and are more high powered than one would expect to see in such a small company..indeed it's HO can most charitably be described as functional and interestingly one has to hand in one's mobile before going into the building.
Note they do not have a FD at the moment with the Chairman overseeing the Financial Controller. Given the simplicity of the finances as long as receivables are collected I am fine with that.

The message the Board sent was that quietly things are getting back on track; I was also encouraged to focus on contract wins in the Managed Service Division- where of course the visibility is much better-than in the consulting business.

I have been concerned about their cash position given that as far as I can see they have little flexibility ie no overdraft with Barclays and they have been draining cash. I note the Going Concern Statement was quite robust. Suffice it to say they are comfortable with the cash position, and I came away more comfortable.
One area that their relatively tight cash position does concern me is how much they can spend on R&D , given innovation is important ; last year was only £124k. I did not get a very clear answer on that.
The Brisbane operation under review; never understood why a company which has minimum ex UK revenues needs an Australian operation.
They have, as known, a broad range of customers covering both the public and private sector where the emphasis is on SME sector and there more M than S. I got good eye contact when they assured me that they never lost a deal because of their financial strength.
Given they have so many clients covering such a wide range of industries , the Board looking as to whether they should focus.

This area of the IT market is so atomised that they do not feel they have direct competitors per se; often in the managed services business they do not know who they are competing against though do come up against NCC. Too bad I did not ask what their selling points are when trying to close a deal. Also I should have spent more time on their marketing approach. I saw comment on telesales in the AR..I would have thought people would like a more personalized approach.


The fact that there are so many companies in this field means that consolidation is likely to happen ie eat or be eaten. I personally cannot see them doing acquisitions in the near future; they have no access to debt financing; their share price is low and they need more management and board stability.
Indeed if I had had my wits about me I would have asked if they were not surprised that no one made them an offer when the price was low in April.

They are aware of the lack of liquidity in their shares and the wide bid offer spread; this of course is the flip side of their stable shareholder base..all the more stable because of the EIS investors.


This lack of liquidity is one inconvenience in owning this share; the other for me is that one does need to press the flesh given the nature of the company. I do not sense they will have an active IR activity with retail shareholders- I can understand that given their current shareholder base, size and fact that in the immediate future have to get the business on track so they have a good story to tell. This means a time consuming trip to Bradford- something happy to do yesterday as had never been there before and was able to get a feel that in its heyday it must have been an impressive place.
Went away comfortable that the business back on track but they cannot afford any more Board/Management changes.

[mustau] 14/6/2018 11:46

Very quite on a upbeat day?

[timbo003] 06/6/2018 08:25

>>>Cerrito

I had not come across Crossword either (before I was offered shares in the March Placing). I am hoping that a switch to AIM (assuming it happens) will generate a bit more investor interest in that one so I won't be a Billy no mates at next year's AGM.

[cerrito] 05/6/2018 18:19

I read your post on the sharesoc website timbo003 with interest and thanks for that and I had never heard of CCS.
I am planning to go to the ECSC AGM but have yet to buy the train ticket. I do not have much in ECSC and joined up after the last AGM but it seems one of those companies you need to see the whites of Management's eyes.
I know from past experience that being the only retail investor at an AGM is hard work and lonely.
I agree that today's news rather flimsy and the modest share price increase is appropriate.

[timbo003] 05/6/2018 07:47

Today's news sounds very encouraging, but very thin on details.

I would like to attend the AGM again this year (Thursday June 14th), but it's a long way to travel (Bradford) and it causes a bit of a dairy clash.

I went to the Crosswire Cybersecurity (NEX: CCS) AGM last week, there is a report on the AGM on the ShareSoc website (need to join up to access):


CCS are currently quoted on NEX but will probably transfer to AIM later this year:

[sweepie2] 16/4/2018 22:18

Back on the watch list, this was a better update today

[cerrito] 16/4/2018 18:47

And also await the review being done by the Directors

[red ninja] 16/4/2018 12:17

It sounds positive, but the fact the share price has not moved suggests the market wants to wait and see.

[cerrito] 16/4/2018 08:35

Not sure what to make of this morning's news

I know nothing of EG and appreciate comments on anyone who knows her but interested to see that Payne who left the ECSC board last week was a member of the eg board so must have bought her in.
I guess the question is her arrival worth more than Hammell's departure? and if the boil of personal tensions had been lanced may all work out in the long run.