Interquest Share Discussion Threads

[ir35] 20/6/2017 10:14

It is amazing that being quoted on AIM puts people off working for them. That doesn't seem to bother a load of other companies - like HVN. If the management keep spouting how awful the company is then it may damage them long term when clients start to either believe them or just wondering if the management are mentally unstable for running their own company down.

DO they really think that the only people that read the RNSs are shareholders - do they know customers and potential customers (and potential employees) read the RNSs as well.

[sailing john] 20/6/2017 08:58

Impressive client list at RDW


And of course the key benefits of the acquisition have still to be reflected in the financials as only acquired in August 2016. MD of RDW remains on board

As ITQ stated RDW acquisition will-
"providing the opportunity to cross sell services in the new digital economy for both businesses;

enabling the Company to expand its operations in the US with a New York platform to grow its digital, analytics and cyber security divisions in the US;

providing an opportunity for the management of RDW to continue their expansion plans into Europe; and

adding an interim service to the Company's search offering."


Edit and - "Commenting on the acquisition Chris Eldridge, CEO at InterQuest said:
"RDW is an excellent fit for InterQuest Group, strengthening our reputation in the Global consulting sector and providing a platform to grow the Groups existing business in the US. We are excited about developing the RDW brand and building on InterQuest Group's digital specialisation."

[sailing john] 20/6/2017 08:41

Another statement from Ashworth - talking his own book to try to grab the 66% he doesn't own on the cheap!

Our Independent Non Exec and former CEO of Harvey Nash is doing a great job in representing the MAJORITY of Shareholders. He has my full support.

Edit - And of course Ashworth puts out all the negative spin re consultant numbers forgetting perhaps that he has made an offer at 42p presumably in the knowledge that the business is worth considerably more than this. Just wants to keep all the real value for himself and not share with the other 66% owners!

[sailing john] 19/6/2017 13:16

Yes - a clever move imo

Of course Chisbridge/Ashworth et al unable to buy at anything above 42p without raising their offer so they are out of the game!

If Ashworth wanted to get the shareprice closer to fair value some decent purchases in the market would have helped. Sadly he chose to be greedy and try to get one over on majority of shareholders who own 66%

[dangersimpson2] 19/6/2017 13:04

Looks to me like IPConcept are defending their position by buying above the offer price in the market. It means that if you are a weak holder you have no incentive to accept the 42p offer since you can sell to IPConcept in the market for more than 42p and get your money now. Makes the 42p offer dead in the water as long as IPConcept are willing to keep mopping up any spare stock. Hopefully it means that discussions are ongoing as to what an acceptable level would be for them.

[sailing john] 19/6/2017 10:01

The offer will fail - and if Ashley offers a little more that will fail to
Most likely outcome is status quo..................
And a lot of disgruntled shareholders
The trouble here is that Ashley (edit sorry Ashworth - perhaps I confused as out of the same mould!) thinks he owns the business - and he does own 33% but remains a minority shareholder
If he wants to own the business he should either buy stock on the open market or make a more realistic offer at 80p+ (That won't happen though)

[vatnabrekk] 19/6/2017 09:05

Some people must believe that they will eventually get more than the offered 42p because they are still buying. Personally I don't subscribe to that optimistic view.

[ballardski] 18/6/2017 08:39

Now the divided has been cancelled, these shares are only headed one way
It's a disaster whoever wins. shareholders get a price they don't want or management leave just as a recession appears
what a mess

[battlebus2] 16/6/2017 22:44

Absurdly low offer by shameless individuals SJ.

[sailing john] 16/6/2017 21:45

For the record - just in case forecasts are changed!!!! (I'm pretty sure they will be - we all know how it works - especially as we keep quoting as the reason why the offer is derisory!)

Market Cap at 42p bid is £15.85m (Ashworth's share circa £5.3m)

Current forecasts - Profit after tax
2017 £2.84m
2018 £3.63m

[sailing john] 16/6/2017 21:37

Ex - I didn't include those two trades - 190k traded on the basis of first TS
One trade of 73k at 44.9p shortly after first announcement

[exbroker] 16/6/2017 19:28

sailing john
There is a lot of double counting in your numbers, 102k in fact as the 51k was given up to an arb player.

[vatnabrekk] 16/6/2017 16:49

No-one should be taken in by this dreadful negative spin. This is a disgusting blatant attempt to persuade shareholders to sell for a substantially undervalued price. See my earlier post below. Also see the brokers' forecasts. In my opinion, this business is worth AT LEAST DOUBLE what is being offered.

HOLD YOUR FIRE - FORCE THEM TO GIVE US A FAIR OFFER!

[sailing john] 16/6/2017 14:17

Trades reported between original 13.32 and amended 17.24 TS 15th June 2017
The amendment was a significant change to the criteria for the payment of future dividends

Original "dividends will only be declared in circumstances where net debt levels are below twice EBITDA"

Revised "dividends will only be declared in circumstances where net debt levels are below half EBITDA."

Approx 190k shares traded in this period as detailed below

15-Jun-17 16:49:20 42.543 51,000
15-Jun-17 16:45:51 42.50 -51,000
15-Jun-17 16:45:51 42.50 51,000
15-Jun-17 13:33:39 44.90 73,428
15-Jun-17 15:00:30 42.00 7,000
15-Jun-17 14:50:09 41.02 2,082
15-Jun-17 13:59:20 42.50 30,000
15-Jun-17 13:52:11 42.50 6,000
15-Jun-17 13:49:16 42.50 15,000
15-Jun-17 13:33:27 44.00 5,000

[sailing john] 16/6/2017 14:06

I can't see the original trading update on Investegate (sys error) or is it possible to withdraw statements?
Anyway still listed above so for the record I have copied full RNS below and in the following post the trades that were reported between the original and amended TS

Original TS
Time stamped 13.32 15/6/2017 above
"15 June 2017

InterQuest Group plc

("InterQuest" or "the Company")

Trading update

InterQuest Group plc (AIM: ITQ.L), the specialist recruiter in the technology, analytics and digital market today announces the following trading update ahead of its interim results for the six months to 30 June 2017.

The executive management team and Independent Director concur that the Company, whilst benefitting from solid sector fundamentals which underpin the business in the longer term, has been experiencing weaker trading in recent months, particularly in its core contractor market. Whilst it is still early, the Company recognises signs of potential challenges ahead in the political and trading environment resulting from BREXIT, the result of the UK election and the subsequent hung Parliament. The Company continues to restructure its business in order to focus on the future technology markets it services.

Mindful of these risks, together with the impact of one off costs on net debt levels, the Company considers that a more prudent policy on dividend payments is necessary and has agreed that dividends will only be declared in circumstances where net debt levels are below twice EBITDA. This amended policy does not affect the dividend previously announced by the Company on 14 March 2017 which will be paid on 16 June 2017 to shareholders on the register on 19 May 2017.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

Enquiries:

InterQuest Group Plc"

[keit4h] 16/6/2017 13:19

@sailing john,

I agree. I would say that Ashworth, who is at retirement age, reckons that he will be able to take the company private for 50p per share (or not much more) then sell it on for north of £1 in two years' time. With some leverage he and Luke Johnson will make an excellent return.

Outside shareholders need to make sure Ashworth pays up and give us a reasonable share of the upside.

[exbroker] 16/6/2017 13:06

The market price says it all, 44p is not the right price, well done the Non EX and also the shareholders who stood up and said no publicly. I own a small position and will not accept, happy to hold and may well buy more when the bid fails.

[sailing john] 16/6/2017 12:41

Duss - you could be right!
My view is that Ashworth wants to cash out - he tried to sell the business in late 2014 when the shareprice was in the 110 - 120p range but failed for whatever reason (too greedy?)
When I first saw this derisory offer I thought it was just a market signal that business up for sale to the highest bidder
Now I'm not so sure and don't know what the hell is going on
Other than Ashworth appears to be trashing a business in which he owns 33% of the stock!
(Edit - I assume the plan now is buy it cheap and sell on?)

[sailing john] 16/6/2017 12:35

Thanks Keith
A sad indictment of our Executive Directors
And can I offer a vote of thanks to our Non Exec for standing up for the MAJORITY of shareholders.
I have no intention of selling any

I see there are costs attributable to Interquest of £280-470k for legal and financial advice relating to the offer. What a waste!!!!

I have some serious concerns about how Exec Director time (and remuneration) is being allocated between Interquest and Chisbridge!!!! And a number of other matters.

I and I'm sure many others will be at the next AGM (or EGM!) whatever the outcome. They might need to book a much larger venue!
SJ

[dusseldorf] 16/6/2017 12:31

I'm not a shareholder but well done Dave Higgins - a champion of the shareholders...though part of me suspects this is some big conspiracy to table a higher revised offer (which was intended all along) to make offer acceptance more palatable.

[keit4h] 16/6/2017 11:46

Defence document is now out:

[sailing john] 16/6/2017 08:18

Did they read my post above and change their minds - or is it simply that they can't even get the basics right?
Either way!!!!!!!!!!!!!!!

[keit4h] 15/6/2017 20:01

After hours the Company has put out an RNS saying that the earlier trading statement contained an error and that: "The reference to twice EBITDA should have read half EBITDA."

This is beyond absurd. The company has paid out dividends every year, at least back to 2011, and (as far as I can see) in every year net debt has always been above EBITDA and often about double EBITDA. Apparently the board has suddenly decided that all their dividend decisions for the last 6 years were recklessly imprudent.

I wonder whether the sole surviving independent director, who is meant to represent the Company and its shareholders as a whole, was allowed any input on this latest announcement.

[sailing john] 15/6/2017 16:42

Re divi - idle threat imo
Final results 2*EBITDA (ex except) was £7.9m and Net Debt was £5.6m
Current forecasts suggest EBITDA rising and net debt falling unless Ashworth buys something which is unlikely given current circumstances!

Re trading - I believe hung Parliament likely to be better for business with softer Brexit and less austerity.

And whilst they state weaker trading in recent months they also say "benefitting from solid sector fundamentals which underpin the business in the longer term"

Forecasts in the market are for a PAT of £2.8m 2017 and £3.6m in 2018 PEs of 5.7/4.5

[dangersimpson2] 15/6/2017 16:35

They must have had this RNS ready for ages waiting for a general market sell off!