Made Tech Share Discussion Threads

[brummy_git] 20/9/2013 10:33

Just released by Equity dev

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

[grahamburn] 20/9/2013 09:21

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 08:39

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 08:11

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 08:06

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

[valhamos] 20/9/2013 08:01

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 07:52

I suspect they may have other acquisitions lined up.

[c1d] 20/9/2013 07:51

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 07:42

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 07:17

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

[philo124] 12/9/2013 15:56

Thanks a lot; I think by 10%.

[quepassa] 12/9/2013 14:51

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

[battlebus2] 11/9/2013 17:13

Loverly new highs today :))

[quepassa] 06/9/2013 14:35

Easy and free parking inside the museum grounds.

[philo124] 06/9/2013 14:24

Thanks, been wanting to go for sometime; may do it when the weather changes after dropping my son off at school.

[quepassa] 06/9/2013 14:08

If you are in Malaga and like vintage cars, do not miss the fantastic and recently opened Museo Automovilistica!!

QP

[philo124] 06/9/2013 13:15

Yields around 3.7%, 10p Divi December.

[philo124] 06/9/2013 13:13

Was just reading it via Digital Look. Bought another 1000 which has caused the spread to widen; broker rang back- shortage of stock.
All the best from Sunny Malaga.

[quepassa] 06/9/2013 13:01

GOOD NEWS. HOT OFF THE PRESS.

Numis Securities today issue broker UPDATE as follows:-



REITERATE BUY RECOMMENDATION on MATCHTECH , and

RAISE TARGET PRICE significantly FROM 510p to 544p


ALL IMO. DYOR.

QP

[philo124] 06/9/2013 12:38

510p is about 15 x 2014 eps which I estimate around 33/34p.

[brummy_git] 06/9/2013 12:31

Updated note from Equity Development

hxxp://www.equitydevelopment.co.uk/doc/1117.pdf

[skyracer] 06/9/2013 08:50

Earnings-enhancing acquisition from existing funds. Good. I would say worth 550p now, up from 510p.

[quepassa] 06/9/2013 07:33

Not familiar with Provanis but good to see Matchtech following their growth strategy with this modest acquisition which should help to bolster one of their core strategic niche recruitment areas.

Price doesn't look high in my opinion qiven the profitability of the acquisition company.

Link to Provanis:-



ALL IMO. DYOR.

QP