Empresaria Share Discussion Threads

[daneswooddynamo] 21/10/2015 09:07

yep all looking good, personally delighted to see stock being placed at 75p to fund acquisition

[aishah] 20/10/2015 19:00

Yes, forgot to mention Chairman's placing investment. These were languishing around 40p back in Jan while Caledonia were offloading. A doubler so far but a lot more to come imo. Will try to add if it weakens to near placing price.

[sailing john] 20/10/2015 17:05

Aishah - correct

And Chairman invested a further £750k at 75p!!

We could buy in June or late August at under 70p!

On that basis I think the price was reasonable

Lanzarote - I also hold ITQ and agree that is also good value

Another low PE recruiter is RTC which should see significant traction over the next few years as their Railtrack contract ramps up.

Currently a hot sector to be in!

SJ

[aishah] 20/10/2015 16:45

Price had jumped to 90p on SCSW's tip over the previous weekend. Was only 6% or so above placing price before then. So not a huge discount in normal circumstances. dyor

[lanzarote666] 20/10/2015 16:31

I may well have jumped ship too early, but recent events surrounding the placing led me to look elsewhere having made a decent return on my holding in fifteen months. I was particularly peeved that the Directors and others were able to pick up shares at 75p (against the market price of 90p) whilst private investors were ignored.

I thought taking on more debt and spending USD12m on a Company making USD0.60m was a hefty price to pay. And now I find out that EBITDA is on track for USD1.30m. So perhaps that is fair value and I was too hasty. There is still an acquisition risk.

Anyway I still like the sector, so have switched into ITQ which seems to have a similar low rating, but that price has been held back by a share overhang.

I will continue to watch closely, and if I get the chance to get back in at 60p (15p less than what the Directors paid!) then all things being equal I will.

Looks unlikely. GLA

[aishah] 20/10/2015 14:01

EMPRESARIA GROUP PLC

Completion of Acquisition

"Alongside the strategic rationale, the acquisition is expected to bolster the Group's KPIs, is profitable and cash generating. Strong demand for temporary staffing in the US healthcare sector underpinned the growth of PS in 2015, with revenue and EBITDA on track to grow to an estimated $11 million and $1.3m respectively during the current financial year ending 31 December 2015. The board of directors of Empresaria believe the acquisition will be earnings enhancing on an adjusted basis* in the first full year of ownership."

[opodio] 16/10/2015 16:05

whats with the dumpers?

are they those who got the 75p placing>

[harrogate] 15/10/2015 18:30

LOL! What an idiot ! Thanks for clarifying.

[graham1ty] 15/10/2015 18:21

Harrogate, they were 88p bid. That is different to a bid at 88p.

Chairman made 13p on 1m shares. £130,000. Nice to be part of the clique !!!!

[pj 1] 15/10/2015 16:55

scrolled through twitter and nothing there not even a rumour!

[harrogate] 15/10/2015 16:41

No I mean 88p !!

[pj 1] 15/10/2015 16:40

news to me!

[melf] 15/10/2015 16:40

Don't you mean 188p :-)

[harrogate] 15/10/2015 16:29

Hi. I hear there is a bid at 88p - why can't I see the RNS anywhere? Thanks

[melf] 15/10/2015 15:16

The chairman must be a happy bunny today £££;££££

[opodio] 15/10/2015 14:46

:))

I can confirm it will be in that order

[opodio] 15/10/2015 14:34

and then it will kiss 150p in that order

[opodio] 15/10/2015 14:25

100p will be kissed shortly

[pj 1] 15/10/2015 14:24

Doesn't seem the debt is worrying the Market today?

Broker note somewhere I assume?

[aishah] 14/10/2015 11:51

Zak Mir's Bull Call Of The Day No.1: Empresaria: Rising Trend Channel Points To 105p - See more at: hxxp://www.shareprophets.com

As far as today’s Bull Calls are concerned it can be said that we are going for the “trend is your friend” approach. An interesting point to make regarding this is the way that in the case of Empresaria Group we have a strong trend, but a relatively choppy ride. This I actually take to be a positive in the sense that it is very often the case that the strongest trends offer periodic shakeouts to flush out the weak hands. In the case of Empresaria Group we saw this with the brief August dip below 70p. However, the overall pattern here has been of progress within a rising trend channel in place from as long ago as December, with the floor of the channel from December running at the 50 day moving average now at 79p . This leads us to believe that provided there is no end of day close back below the 50 day line we could be due for significantly higher prices here over the next 1-2 months. The favoured destination is currently regarded as being the late 2014 resistance line projection currently pointing as high as 105p. In the meantime any dips towards the 50 day line can be regarded as buying opportunities.

[randomambler] 13/10/2015 22:03

I've spent some time going through the details and there are some definite pros and cons here for existing shareholders.

Pros:

- PS sounds like a decent business in a growing sector
- PS handles 100% temporary recruitment and that helps EMR increase its temp exposure
- PS CEO is signing on for incentive equity with growth goals
- Joost sounds very enthusiastic about the deal (which is quite something!)
- Should be earnings-enhancing in the first year
- Joost and Spencer aren't empire builders like the previous management
- Share count last increased in 2008 so dilution isn't an ongoing issue
- Exposure to new sectors/markets could be positive

Cons:

- Immediate dilution of existing shareholders by 10% with no chance to join placing
- Placing was over-subscribed which suggests that the discount was too high at 75p
- Maximum number of shares which could be issued by management were actually issued
- Shortfall being covered by £4.5m debt which adds 50% to current £9.9m of debt
- Cheap EMR equity is being used to buy expensive PS equity (bad for us!)
- Price seems high since 20% of EMR market cap is being used to buy an additional 3-4% of turnover
- If EBITDA of $1.3m is actually achieved for 2015 (and this is a rough proxy for operating profit) then the price isn't so crazy with 20% of EMR purchasing an extra 13-14% of EBITDA
- Free cash-flow will be constrained going forward so dividends aren't going to increase much

On balance I trust Joost and Spencer to have done their due-diligence and to believe that PS offers a real growth opportunity. So despite the fact that I'll now get a smaller slice of the profits and dividends I'm cautiously optimistic that this is a good deal. Of course the US has been a real graveyard for many UK companies so I hope that they've got their sums right!

However I do wonder how this deal compares to others in terms of structure and price being paid. Does anyone know?

[treeshake] 13/10/2015 18:02

Hardly a discount, the share price shot up yesterday ! Lordy it wasn't at 50p or anything like normal AIM dodgy deals.

[daneswooddynamo] 13/10/2015 17:20

Not entirely true...the chairman has snaffled some!

Still that is all very encouraging; if he is similarly successful with this purchase as his last major one at 36p in late 2013, the emr journey should continue to be rewarding