Empresaria Share Discussion Threads

[merrimac] 25/7/2018 14:46

Now there are a few nice wee trades

[merrimac] 25/7/2018 09:05

Definitely not a stock for anyone to jump in for a penny or two. A longer term hold with a careful eye on management quality. Next key date is August 22nd and they had better do a good job at their reporting.

[graham1ty] 25/7/2018 08:25

Anyone who bought on the “leak” yesterday at 76p or 77p, is scrabbling to get out and take a couple of pennies

[harrogate] 25/7/2018 07:21

I agree on debt - we need to see that coming down and some indication on that would have been good. When you look at the enterprise value with debt it is hard to get to close to £1.50 at the moment given the lack of seeming growth. You would have thought that the € and $ rates would be really helping so I think that in fact excluding currency movements the performance is not that great. The new CEO needs to pull it out in the finals and the outlook statement at that time to get us moving north of £1

[merrimac] 25/7/2018 07:00

I am guessing that the leadership is quite "technical" and not so inspirational. Based on my watching of the MELLO, they seemed sound but nothing to inspire, hence may not be thinking of the investor's concerns, nor, marketing their achievements.

Also, when people diversify too much, while they reduce risk, they also gravitate to the mean - an average company and as you mention, there may always be an excuse?

The middle east is so small and with so many issues I hope they will not expand. But they did flag things were getting sorted out there/here.

[graham1ty] 25/7/2018 06:52

Today’s RNS suggests they had flagged Japan as a problem. Yes, they mention the regulatory change coming. However, that is in a sentence that starts “particularly strong performance”. So, I did not read that as a warning in March.

It is all very well having a diversified strategy when you can say this spreads yr risk. The flip side is that there are multiple areas that can go wrong. So Pharma Strategies in 2016, Germany and Dubai in 2017, now Japan in 2018......I hope this does not turn into a company with constant excuses.....

Yes, pity they did not mention debt. At the MELLO South there was a very good slide about cash generation. EMR has always thrown off cash, and the debt could be repaid very quickly. However, as it is a worry in a few people’s minds, they could have made a comment on period end debt.

Allenby have raised their 2019 forecast from 12.9p to 13.1p on the back of the Solimano acquisition. We will see if Mr Market agrees that they are very cheap. Allenby say they have not factored in recovery in Germany and Middle East, and hint at lots of upside if those recover. But they would say that wouldn’t they.

[merrimac] 25/7/2018 06:50

I reckon it should sit around 150p but due to its small nature and volatility may trade at a discount - so 120p would be ok until they have a more consistent picture or brighter outlook stated.

[merrimac] 25/7/2018 06:41

Yes, comment on Japan in Mar 14 results: RNS 6287H

Under the Asia Pacific section.

"..particularly strong performances from Skillhouse in Japan......where the positive economic conditions.....and new legislation takes effect in 2018 which limits the time workers can be on temporary or outsourced contracts..."

[harrogate] 25/7/2018 06:36

Agreed - but you would hope that making nearly 12p this year should stop the share price going lower and if the new CEO can get the quite large German business back in shape then there could be a fair EPS increase in 2019 which is currently not in the forecast. Solid but hard to see what gets us to where we were - hard to see now why I didn't sell at £1.40!!

[merrimac] 25/7/2018 06:35

The middle east is no real worry as they are a smaller contributor (Saudi issues) according to my calculations (may have bad debt issues there too). Yes, no recovery noted in Germany. Agree with you, the Japan comment was news to me. I will look at my info to see if there are comments on Japan....something to do with temps like it was in Germany? Would have hoped for more of a comment on debt but I daresay this will come later in August. Yes, dull.

[graham1ty] 25/7/2018 06:26

The RNS is reassuring, but not much more. No nasty surprises, but no recovery in Germany and Middle East. And, had they mentioned regulatory change in Japan before ? Have loooked at Finals and the Nov 2017 trading statement, and neither mention Japan.

Net fee income flat is disappointing. I suppose the reassurance on the forecasts draws a line under last year’s problems.........but it is pretty dull

[funkmasterp12] 25/7/2018 06:06

Good update, no nasties and more earnings to come next year. ... did someone know yesterday then?

[merrimac] 24/7/2018 17:34

Update is due tomorrow

[harrogate] 24/7/2018 17:11

There was a trading update on 21st July last year so maybe something imminent. Been a while since much to cheer about here.

[merrimac] 24/7/2018 16:33

A full flurry now...hopefully something positive has leaked

[merrimac] 24/7/2018 11:48

There don't seem to be many shares available and they are tightly held - I think by the the individual owners?

[merrimac] 24/7/2018 11:47

only small trades though

[graham1ty] 24/7/2018 11:25

Has there been a leak ? Sudden flurry of activity

[graham1ty] 24/7/2018 11:25

Has there been a leak ? Sudden flurry of activity

[merrimac] 24/6/2018 04:10

ValueHustle:

I am not all that clear on the debt situation, however, I do see their debt as being covered by EBITDA and could be cleared/reduced quite quickly due to their cashflow. The pilot's bonds making up quite a bit of this commitment does confuse me somewhat and I daresay provides quite a debt risk.

On the bloke selling his shares based on the performance of Saudi; I am not sure that I would have done the same if that was my reason. Saudi (I assume is in the AusPac numbers) which while the region makes up a healthy 30+% of NFI, Saudi only makes around 1% of the total NFI.

Things I like are: their targeted recruitment e.g. high tech IT, aviation; their cashflow; and their geographic spread.

That said, they are on the AIM and I most certainly will not be sinking my riches into them, nor, will I buy more while they are down as I am no expert. But I am happy to hold, albeit on a modest loss.

[valuehustle] 23/6/2018 21:00

It's fascinating how different people can watch the same thing and have wildly differing responses. I was at this presentation and tbh wasn't that impressed. Initially sounded good but as the presentation went on I became less and less convinced. The gentleman I sat next to had owned shares previously and sold due to the poor performance of the Saudi office. The approach to debt and acquisitions just doesn't make sense to me but to each their own. Hope this is of some use to someone out there

[merrimac] 23/6/2018 07:49

Thankyou for posting that, I feel more secure with the investment. Certainly not a dynamic pair, but sounds really solid. Bit of a size contrast! Questions at the end were good too. Hopefully share price begins to recover: trading update late July.

[tomps2] 22/6/2018 13:53

Empresaria (EMR) investor presentation at Mello South 14.6.18 by Spencer Wreford, CEO and Tim Anderson, Group Finance Director



Spencer Wreford, CEO
Overview - 00:18
Why invest? - 02:17
Strategy focused on growth & diversification - 03:40
New management team - 08:21

Tim Anderson, Gp Finance Director
The business model 10:35
Cash generative business – 13:35

Spencer Wreford, CEO
Summary - 15:35

Q&A – 17:32

[graham1ty] 18/6/2018 13:02

Did anyone see EMR present at MELLO last week ?