Made Tech Share Discussion Threads

[zoolook] 25/9/2013 08:37

In reply to QP

Of course it matters if he jumped or was pushed - either would be an indication of underperformance in some respect. Clearly he was on the market and available and been drafted in to shake things up. I value you're posts but I understand as a holder you want to give out positive vibes here but in this matter at least I think you are clutching at straws.

[cockney sparrow] 24/9/2013 19:17

To me it's an obvious "Earth control to Major Tom" SELL moment.

[paulypilot] 24/9/2013 16:47

Hi,

For anyone interested, you can meet the management of this company at Equity Development's latest Investor Forum, which is being held TOMORROW - Weds 25th Sept at Fasken Martineau's offices in Hanover Square, London.

If you want to attend, then contact details are on equity development's website under "news" here:

I'll be going, so say hello if you do attend too!

Cheers, Paul.

[quepassa] 23/9/2013 10:49

Don't really think it matters.

"Woz 'e pushed or did 'e jump". Who cares?

Those big international overseas-based corporations are full of all sorts of kafkaesque politics.

People join and exit companies all the time for all sorts of reasons.

Wilkinson's CV looks very accomplished in its own right and on a stand-alone basis.

And in my opinion you can bet your bottom dollar that if founder George Materna who owns 30% of the Company wasn't 200% certain that this was the right man for the job, he wouldn't have hired him.

ALL IMO. DYOR.

QP

[zoolook] 23/9/2013 10:11

Any background as to why he was replaced at Randstad?

[quepassa] 23/9/2013 09:57

A little more info and background on the incoming new Chairman from Recruiter magazine:-



New man certainly has a top-notch CV and excellent experience in the sector.

In my view the new managerial set-up is ideal.

George Materna will still very much be in evidence with his massive 30% shareholding/voting power in the Company. A new Chairman with strategic experience gained from industry leading firms will bring new vision and help MTEC in its growth strategy. Combined with a formidable Chief Executive who knows the Company inside-out.

Looks like a very strong top team to me.

ALL IMO. DYOR.

QP

[grahamburn] 20/9/2013 18:53

First.
Insufficient international expertise (to assist in continued expansion).

Second.
Good corporate governance does not condone progression from CEO to Chairman (especially if it's an "Executive" Chairman role) in the same company.

However, in view of your "deep knowledge" of the company, can you expand on your other reasons for selling up? This may assist myself, and others, in making a more nuanced decision on whether to stay invested.

[cockney sparrow] 20/9/2013 18:42

Having a deep knowledge of this enterprise,

What I can't understand is why gunn wasn't given the role and they chose to recruit externally.

[philo124] 20/9/2013 11:50

Thanks all; glad I kept 50% and banked £1k profit.

[quepassa] 20/9/2013 11:39

IMPORTANT.

Highly regarded NUMIS Securities have today come out with a broker note update on MTEC:-


-REITERATION

-BUY

-TARGET PRICE 544p


ALL IMO. DYOR.

QP

[brummy_git] 20/9/2013 09:33

Just released by Equity dev

hxxp://www.equitydevelopment.co.uk/doc/1123.pdf

[grahamburn] 20/9/2013 08:21

Converting debt into equity for an acquisition makes eminent financial sense, even if it has been done slightly after the event. The company has returned to a much more flexible position in terms of future funding, either for working capital as the group expands turnover or for further bolt-on acquisitions. The latter is even more likely given the changes to the executive team as the new Executive Chairman has a track record internationally. OK the placing was more discounted than might have been hoped, but for a relatively small company with lightly traded shares that's hardly unexpected. In addition, the opening price today indicates that the market is mirroring the actual dilution rather than the discounted price.

Materna is still involved but it shows signs of maturity to know when to let go of your "baby" and encourage it to grow into an adult with growth prospects.

Personally I believe this company has much more potential after today's announcements and selling is a short-sighted move, though it is never wrong to bank a profit!

[quepassa] 20/9/2013 07:39

On 8th. August in their Trading Statement, MTEC said that results were expected to be slightly ahead of previous expectations.

Annual results now due (prelims) in less than a month on 15th. October.

Lots going on here at burgeoning MTEC:-


Acquisition of Provanis
Placing
New Executive Chairman
Expansioanry plans
Progressive Div Policy
Bullish outlook.


Personally, I remain highly optimistic about the prospects for MTEC.

ALL IMO. DYOR.

QP

[quepassa] 20/9/2013 07:11

AND, George Materna continues about new man Brian Wilkinson:-

"Brian's complementary skills will be a tremendous asset as he works with us to capitalise fully on the opportunities that are in front of us, and to deliver significant further growth in value to shareholders over time."


I like the words " SIGNIFICANT FURTHER GROWTH IN VALUE TO SHAREHOLDERS OVER TIME".

The CV of Wilkinson is clearly that of an industry heavy-hitter and especially with good experience in M&A.

Matchtech have clearly got plans to grow , that is unless it gets taken over in the meantime.

The placement gives a small amount of dilution but not much. Minor discount. At the same time, it demonstrates the strong market appetite for equity in MTEC.

Once the market absorbs the impact of Mr. Wilkinson joining MTEC, shares should further move forward in my view.

ALL IMO. DYOR.

QP

[battlebus2] 20/9/2013 07:06

Why would they not use a placing to fund the new acquisition instead of a reversal on Provanis?

[valhamos] 20/9/2013 07:01

Agreed. Further expansion planned.

"I am delighted that Brian Wilkinson has agreed to succeed me as Chairman. There is clearly good existing momentum within Matchtech Group, but the Board and the executive team share an ambitious plan to build a significantly larger and more profitable group. I am therefore certain that now is the right time to bring in someone with the external perspective and international experience that Brian has developed over his career, including within one of the world's largest recruitment firms."

[wjccghcc] 20/9/2013 06:52

I suspect they may have other acquisitions lined up.

[c1d] 20/9/2013 06:51

Disappointing that the placing is at an 8.7% discount - would have hoped that they could have persuaded people to pay more.
With my optimistic glasses on though, it could be encouraging that they have decided to raise more cash as generally contractors are paid weekly by the agency but the client pays the agency according to normal credit terms. So turnover growth leads to an increased borrowing requirement. Maybe they are seeing good growth in the business and want to rebalance their financing between debt and equity to keep it at a conservative level? Just my thoughts - DYOR!

[battlebus2] 20/9/2013 06:42

Could be the cash will have another use?? Had a great run with these so will take the profits now, good luck all remaining holders.

20 September 2013

Matchtech Group plc ("Matchtech" or the "Company" or the "Group")

Cash Placing

Matchtech Group plc (AIM:MTEC), one of the UK's leaders in specialist engineering, technology, professional staffing and employability & skills recruitment, today announces a placing of 1,050,000 new ordinary shares of 1 pence each (the "Placing Shares") at a price of 405 pence per new ordinary share (the "Placing Price") raising £4.3m (approximately £4.1m net of expenses) (the "Placing"). The Placing Shares will represent approximately 4.3% of the enlarged issued share capital. The Placing has been fully underwritten by Numis Securities Limited.

The proceeds of the Placing will be used to repay the drawdown on the Group's existing lending facility which was used to fund the acquisition of Application Services Limited, trading as Provanis, for a total cash consideration of £4.0m, as announced on 6 September 2013.

The Placing Price represents a discount of approximately 8.7% to the middle market price of 443.5 pence per ordinary share at the close of business on 19 September 2013, being the latest practicable date prior to the date of this Announcement. The Placing Shares will, on Admission, rank pari passu in all respects with the existing ordinary shares and will have the right to receive all dividends and other distributions thereafter declared, made or paid in respect of the issued ordinary shares.

Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that admission of the Placing Shares to AIM will become effective, and dealings in the Placing Shares will commence on AIM, at 8.00am on 25 September 2013.

[philo124] 20/9/2013 06:17

Not anymore. Placing, bit confused about this. Makes the acquisition not funded by existing facilities.

[philo124] 12/9/2013 14:56

Thanks a lot; I think by 10%.

[quepassa] 12/9/2013 13:51

Good article in Shares mag today about MTEC's acquisition of Provanis ( Application Services)last week for a consideration of £4m.

Page 19.

Article says that market has failed to recognise potential benefits of this acquisition and house-broker Numis forecasts that the deal will boost 2014 earnings by 7%.

ALL IMO. DYOR.

QP