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[assagai] 12/8/2018 08:02

Hi trident, what time is it where you are?

[trident5] 12/8/2018 06:50

Pru Dent - I wouldn't get too carried away - first half profit was £39k.

He ought to be sorting out that lousy performance before running off and diluting the hell out of us by buying another company.

And he ought to know that he's got his major shareholder onside.

He looks accident prone to me.

[assagai] 11/8/2018 22:31

Homeboy, that is a very odd post. Are you a shareholder or just just an interested bystander?
I don't think the Board are motivated by issuing knock down paper in the slightest.

[assagai] 11/8/2018 22:24

Pru dent, you seem to be very well Informed or very prudent! Either way that was a very well presented post (IMHO) and I think sums up the situation perfectly.

[homeboy] 11/8/2018 21:55

are they going to keep issuing paper at knockdown prices, all sounds a bit iffy to me, bill this bill that, are you going round his house for tea?

[monty68] 11/8/2018 15:42

Prue Dent I couldnt have put it better myself!!!!!

[pru dent] 11/8/2018 09:29

I hate clichés but I think we all need to wake up and smell the coffee! The Board is facing a situation where they must be questioning just who is running the company, who is dictating policy, who decides on future planning? Bill Mawer and his team have done a great job over the last few years. On the defecit, they have had one major order go pear-shaped and had to deal with an awkward investor sell out at a bad time. Neither of these things were as a result of poor management. On the flip side Bill Had got the share price up to 13p less than a year ago prior to these events. The purchase of Todd it seems to me was the outcome of two years of planning, to integrate an instantly positive contribution and more importantly the smooth cash contribution of maintenance contracts which are a joy to any tech company add to that the open doors to a whole bunch of new customers to approach for IGE's current offerings. This was a real opportunity to grow the company in all our interests. The share price closed at 4p on Friday. Bill really needs our support and whilst my holding is not large I will make sure it will be lodged firmly in favor (if we ever get to the Sep 4th meeting) My real concern is the worst case scenario which would be Bill questioning how much longer he should bang his head against the wall. Trying to run the company with one shareholder calling the shots. What would the company be worth without Bill?
Looking back to the bad old days when we had a share price of 1p we had poor management and poor prospects. If the desire is to return to that then let's make sure we have enough ammo to shoot our feet clean off!

Bill needs our support and we need him in place.

[monty68] 08/8/2018 12:35

I think this was a great deal and hope that Rise sees the potential. The prospect of JT having an influence here is worrying. I thought that the two companies would be a great fit and would make good sense and use of existing channels of disrtribution.

[assagai] 08/8/2018 12:31

Trident, yes i get that but surely after the Indonesian order the company needs something stimulating. I am too old to wait for the organic growth required to get back to 2017 numbers. It would be a very long journey!

[trident5] 08/8/2018 11:28

Assagai
yes - and first off its latest reported profits were £393k - so the pe multiple is nearer 9 than 5. They've put a shine on that.

Secondly, its 2018 margins are well down on 2017. In 2018 the ratio of sales of goods to services were up - so I'm guessing that the sale of product is less profitable than supporting the sold products.

I can't tell whether TR will be a good fit with IGE - but I'm surprised that given IGE's size and apparent strong market position that it needs to risk a £3.5m acquisition at this stage. I'd much prefer seeing non-dilutive organic growth.

[assagai] 08/8/2018 10:12

Diver , I'm not sure that's correct about JT. I believe RS is an investment vehicle with one HNW owner. JT advises only, i believe. That does not mean he decides.....

The placing represented a small part of the overall acquisition, the loan element made up for that. The "diluting shares" as a percentage of the whole Capital were relatively small.

Trident, did you look into what Todd does and where they sell?

This would have added INSTANT value to IGE. The buy price brought in a company at a PE of 5 to a company with a PE of 15. That's just the maths. The commercial door opening would bring IGE into new safe markets.

Surely anyone with a real interest in this should speak to WM , or email.

As a significant shareholder I had a very clear picture of this and entirely supported it. My holding plus a couple of funds and the board is on a par with RS let alone the countless other holders with 1, 2% who were also with the program.

A poster yesterday flagged up that the lack of support may have been an unflagged last minute reversal. Once again try asking the company if this might be so.

[owenski] 08/8/2018 09:57

Rise aren't doing this to benefit ordinary shareholders.

But in what world is it ok to have ones holdings diluted by this amount and not being able to do anything about it.

"The Placing Price represents a 27.3 per cent. discount to the closing price to the closing price on 16 July 2018"

Most PI's have to just sell or suck it up, good to see an institution wanting clarity.

[trident5] 08/8/2018 09:53

Pru dent

Most acquisitions are costly mistakes. It was hard to see this being any different.
Not having the largest shareholder on board is a very basic, visible failure of the CEO - leaves me wondering about the competence of the operational management.

The acquisition seemed very much at odds with the growth story being spun here - it's a very small company - can it not grow organically from this low base?

[owenski] 08/8/2018 09:52

"I think not and frankly anyone clucking round the heels with thankyou's for saving us has no vision at all"

Wot, no X ray vision. lol

[pru dent] 08/8/2018 09:30

Having spent all of yesterday at 38,000 feet I am so gutted to come home to find what happened to IGE. What a total disaster. The problem is that one shareholder has so much power they can practically dictate policy. Was this decision for the company's benefit - I think not and frankly anyone clucking round the heels with thankyou's for saving us has no vision at all and no desire to see the business go forward. That is rather surprising as I imagine most who post on here are shareholders too. This would have been a fantastic merging of business opening doors for IGE's future. I just hope that sense will eventually prevail especially as we are now actually at 4p!!!!!!!!

[diver999] 08/8/2018 08:30

Interesting to note that Jerry Tang (owner of Rise Step) is also PSc (majority shareholder) in Metrix NDT, run by Nick Fox, founder and former CEO of IGE. Untidy...

[gnnmartin] 07/8/2018 23:33

I'm grateful to Rise Step too. I thought the placing price too low. However, today's fall suggests the market assumes that 4p was a fair price after all!

[assagai] 07/8/2018 16:44

I placed my proxy vote by choice.
The point is that for this vote (75%) required, that whichever way RS voted would decide it unless the other 77.36% all voted differently , so that is every single shareholder, even those holding a couple of thousand shares. Impossible to organize.
You probably need to ask the Company if the no vote was flagged up in good time...

[waggle] 07/8/2018 16:30

A, were you asked for your proxy vote by the company? i wasn't....from this i can only surmise that all appeared to be in order and that they got ambushed.

[assagai] 07/8/2018 16:23

Agreed Waggle, Cantors should have ticked all the boxes, they did'nt. Right from allowing the raise price to be 4p

[trident5] 07/8/2018 16:10

No, CEO is to blame.

[waggle] 07/8/2018 16:03

i must confess to being gobsmacked that the company had not got its largest shareholder "on side" before the meeting. Cantor are as much to blame as anyone.

[trident5] 07/8/2018 15:21

2nd fiasco in a few months.

[pugugly] 07/8/2018 14:53

I just wonder is Rise Step are using query to drive shre price down and then come in will a lowball take out offer? After the CAR fiasco anything might be possible (imo0

[owenski] 07/8/2018 14:07

I think it's great that Rise have called the company out to explain dilution policies. IGE is too small and with an insignificant capital base to start down the acquisition road map. So clarity is needed.

Shame more funds didn't do this.