Ite Share Discussion Threads

[topvest] 26/6/2018 20:27

You are probably correct - 81p versus theoretical ex-rights price of 87p. My average in-price is now 106p so I've not got the appetite to invest anymore. It should hopefully recover to around £1 in due course.

[cantrememberthis2] 26/6/2018 20:15

Those bailing, or more like reducing to buy the 7 for 4 to average down, whilst keeping their cash (exposure less)... seems sensible to me.

Good deal or no deal, the fact Banks/Underwriters have fully underwritten this tells you they have done their homework more than you and I.

ITE at 80p is a decent risk vs. reward for me.

I care not that it goes to 50p or 100p. All Rights Issues I have seen and partaken in over the last 10 years often move close to TERP and bounce off. Serco is the only one that I know of that has been disappointing. OXB blinder!

Here we have a deal you consider poor whereas I consider as revenue making...

Will keep buying!

I risked not taking part in RIGHTS Issue hoping to get in LOWER than TERP.

Here we are.

Game on.

[topvest] 26/6/2018 19:00

I've taken up my FULL entitlement under the rights issue. I'm not really very happy with merging two similar businesses, with the acquired business being valued at twice the existing one. Seems a poor deal. You can see some of the institutions that said "no" bailing today. That being said there is probably some upside if you take up the new shares.

[cantrememberthis2] 26/6/2018 18:25

Fully under written rights issue.
These are not likely to stay sub TERP for long.
Good day to buy cheaper than taking up rights.
Will add as I like the diversification. Bought 30k shares.
Another 30k in due course.
GLA

[topvest] 26/6/2018 16:43

I know that I don't have to take up the rights issue, but I think I will. I've always liked the sector, but ITE have been badly hit with their Russian exposure which is a tad unlucky. The acquisition will make them more balanced. I just think the deal was done at a poor price for existing holders and it will be a long journey back.

[typo56] 26/6/2018 14:42

I think those other examples were rescue rights and relief of survival. I don't think ITE is in quite the same position. They're more on a quest to grow through acquisition, as is SMDS.

[cantrememberthis2] 26/6/2018 14:16

Typo56 Risk vs. Reward EXACTLY like Capita to some extent.
I like their forward guidance here. Hence in.

[typo56] 26/6/2018 14:10

Point is, you could buy them today for around 10% less than it would have cost you if you'd bought yesterday and took up the rights.

I keep saying rights issues are a con trick. There's no special deal for existing holders.

[cantrememberthis2] 26/6/2018 13:57

Reducing Russian exposure from 47% to 31% is NOT a BAD THING
Also more news coming:ITE

On 15 May 2018, ITE announced its interim results for the six months ended 31 March 2018, demonstrating a strong overall trading performance. This was the first period of like-for-like growth in both yield and volume since 2014 and these results reflect revenue growth in the majority of ITE's markets as a result of early TAG Programme initiatives and focus on Core events.

ITE's TAG Programme is delivering early benefits with improved financial performance from core events delivering like-for-like volume, revenue and headline profit before tax growth for the first time in four years.

Cash conversion remains strong and the Group enters the second half with high visibility of revenues having contracted £143.5 million of revenue for the current financial year as at 11 May 2018, representing approximately 89 per cent. of market expectations for the full year. As a result of a focus on forward bookings, the Group has also already contracted £31 million of forward bookings for the year ended 30 September 2019, representing approximately 19 per cent. of consensus revenue. This is up approximately 31 per cent. on a like-for-like basis and the improved level of bookings partly reflects the ITE's focused sales initiatives on Core events, in line with its strategy. The like-for-like growth and cash conversion have allowed management to invest £1.5 million more in future period events than at this stage last year.

There has been no significant change in the current trading and prospects of ITE since 31 March 2018.

[cantrememberthis2] 26/6/2018 13:13

Same for Capita
same for PFG
Sentiment changes
Game on

[bend1pa] 26/6/2018 11:26

You don't have to take up any rights as it's clearly good money being thrown after bad. ITE have had a poor track record - falling revenues/PBT over the last 5 years years, so I expect things will only continue to get worse.

[topvest] 26/6/2018 11:10

Well that's very interesting. 35% of votes were cast against the acquisition and rights issue. I'm inclined to agree that this was a bad deal for existing shareholders. We have been forced to put more money in at an absurdly low price which undervalues the existing business by an enormous amount. The acquired business may be good, but we have given our original business away. All smack of an empire build, re-set policy from a new baseline of £1. I will take up the rights issue as I have little choice, but I would be interested to hear why they thought this was such a good deal. To me it looks like they struggled to get the support from institutions for the rights issue and had to drop the price and terms accordingly. The share price indicates that there may be a large block of shares being sold out, so not great!

[cantrememberthis2] 26/6/2018 09:40

No sweat... not long to wait, they'll end up picking up slack from those who didn't take up rights!

Game on

[typo56] 26/6/2018 09:36

Actually the rights issue isn't complete, merely trading ex-rights. They're not fully paid until 11 July.

At this stage we don't know how well the rights will be taken up. Priced at 56.2p it seems unlikely the underwriters will have to pickup stock, but who knows what Trump will tweat between now and then!

[cantrememberthis2] 26/6/2018 09:30

Rights Issue completed.
Im in... looking for recovery, finance secured

[topvest] 06/6/2018 20:30

Well the rights issue price is 56p. Surprisingly low. Massive dilution, but it doesn't really matter if you take up the rights is the way I see it. Bit of a reset. Looks like the post rights issue price will be about 90p-£1. Any thoughts?

[deadly] 13/2/2018 10:07

A forgotten share.

But trading looks good:

On a like-for-like basis revenues for the quarter are 5% higher than the comparative period. Two top 10 events ran in the quarter, collectively delivering double digit like-for-like revenue growth.

Outlook

As at 19 January 2018, the Group had booked circa GBP113m of revenue for the 2018 financial year (20 January 2017: GBP99m) representing circa 70% of market expectations for the full year. On a like-for-like basis, these revenues are 16% ahead of this time last year and on a volume basis are 7% ahead reflecting the impact of earlier bookings and ITE's focus on core events following the launch of the early TAG initiatives.

[asagi] 30/7/2017 09:50

Sunday Times says that ITE is selling Moda, the UK B2B fashion event for £30m. Looks like something may have leaked on Friday!

Asagi (long ITE)

[topvest] 13/7/2017 21:09

Best update for a long time here. Recovery at last?

[topvest] 16/5/2017 20:27

Yes, it looks a long haul with this one. Looks like a sensible strategy adopted by new management, albeit maybe a tad dull. Think this is still a good value stock if you take a 3 year view. Happy to hold, but not inclined to add any more.

[bend1pa] 16/5/2017 16:36

Not great results. Slight optimism but the worst seems to be over for its main market in Russia. However in their other global markets things still look rather bleak for ITE considering there has been something of a boom in global economies over the past 6 months, yet ITE are failing to capitalize on it. The big rise in the Russian rouble has saved these results from looking worse than they already are. At least the cashflow statement looks decent and net debt is starting to fall. So the company is living within its means. But overall recovery still looks a long way off after 3 years of falling revenue eps and PBT.

[baggytrousers] 16/5/2017 08:57

Interesting RNS (Strategy Update) out this morning on ITE Group Plc. Looking to start a 'transformation' programme.

This video with the CEO about today's RNS is worth a look...

[topvest] 26/1/2017 09:00

Slightly negative RNS, but think we are getting much closer to recovery here. Very happy to hold.

[bend1pa] 18/8/2016 14:50

The huge rise in the ruble against £, some 35% since Jan is going to help ITE along nicely considering it still derives most of its trade through Russia. IMO the share price still has a long way to climb despite its volatile recovery since March. If the Russian economy continues to improve we could see another 50% on the share price within a year from now.