Made Tech Share Discussion Threads

[parob] 07/1/2024 11:06

There's this from 21/12/23hTTps://blackswanshares.substack.com/p/3-microcaps-for-20243 microcaps for 2024MADE TECH GROUP (MTEC) MC £16 milThis is a mini KNOS, software co which specializes in digitisation projects for central and local UK government. The share price has been an absolute disaster since ipo. Again, this is another human capital intensive business which hired too many expensive employees at the top of the market and coupled with normalizing demand after covid, meant a tough, loss making period in which the ceo decided to shift focus on profitable growth by cutting costs, etc. The main positive with MTEC is the net cash position. It has c £8 mil net cash and this should be more than enough to support the transition to profitability without dilution. The main weakness is that these gov contracts are on a "call off basis" ie there are no defined time schedules so the timing of contract delivery it's entirely at the client's discretion. A few delays in timing caused poor staff utilisation rates which in turn impacted profitability but MTEC never lost a client and has a contracted backlog of c £67mil so it's a matter of when, not if. Once these contracts start, the operational gearing will have the opposite effect: super profits.

[parob] 07/1/2024 11:02

Just seen your 10.50am update at the bottom of your post.MOS recommendation?

[parob] 07/1/2024 10:50

Interesting. There's one for Sarasin & Partners LLP too who went up to 5.41% on 19/6/22 Yes the 19/12/23 register update is the most useful.

[masurenguy] 07/1/2024 10:37

Parob - this is a list of current major shareholders. It would appear that the applicable date was as at 23 December 23. This can be compared to the shareholdings on 25 August 2023 in my post #458 above.

Rory MacDonald: 28.53%
Chris Blackburn: 14.50%
Hargreaves Lansdown Asset Management: 6.17%
Stonehage Fleming: 5.46%
Sarasin & Partners: 5.38%
CRUX Asset Management: 5.18%
Luke Morton: 4.03%
Interactive Investor (Manchester): 3.26%
Highclere International Investors (London):3.10%
AIM Securities in Issue:149,287,059 shares

The responsibility for issuing any RNS relating to any above threshold share transaction rests entirely with MTEC not the investor. The rules require the investor to notify MTEC and then for MTEC to issue an RNS detailing the transaction and subsequent shareholding. Since the IPO in September 2021 MTEC have only released two RNS announcements relating to this - the Premier Miton 7% investment in October 2021 and the Crux Asset Management 5.05% investment last year. Therefore it has been MTEC who have not been abiding by the AIM disclosure rules rather than the applicable shareholders.

[parob] 07/1/2024 10:05

Thanks Masurenguy.So Berenberg, Canacord and PM didn't disclose when they went under 3%.Whoever the seller was it does appear that they cleared on Friday hence why the share price broke the trading range. Let's see what this coming week brings.

[masurenguy] 07/1/2024 09:54

Parob, you are right about Premier Miton's original stake at the float but it would appear that they divested that shareholding sometime ago although without any RNS to disclose that. These were the above reporting threshold shareholders as at 25th August last year.

Rory MacDonald: 28.53%
Chris Blackburn: 14.29%
Sarasin and Ptnrs: 5.42%
Crux Asset Management: 5.05%
Stonehage Fleming: 5.04%
Luke Morton: 4.03%
Berenberg Bank: 3.38%
Canaccord Genuity: 3.35%
Highclere International Investors: 3.10%

If Premier Miton still had a stake at that point it must have been below 3% (less than 4.5m shares) where under AIM rules they would not be required to report any further disposals.

[janeann] 07/1/2024 09:36

thamks for that Parob... encouraging the directors added so many at 17p .....

[parob] 07/1/2024 09:35

Cheers langland, I wasn't aware of that. Does anyone know if they've been actively selling any other holdings of theirs?Premier Miton are not on the most recent shareholder register from December, yet all others are updated so imo they have been the sellers with the final batch going on Friday.All imo so of course DYOR but I think we are in for an interesting week ahead.All info I've mentioned below in this tweet thread:hTTps://x.com/parob17/status/1743927687226298844?s=46&t=_ybVnpe01AP_F1Pw0JqKTg

[langland] 07/1/2024 09:26

FYI Premier Miton are notoriously bad at TR1s. Frankly, a disgrace.

[parob] 07/1/2024 09:03

In terms of Director buys throughout all of 2022 and 2023 we have:2/3/22 - Non exec Director buy of 20833 shares at 48p.5/7/23 - CEO buys almost 900K shares at 17.14p17/11/23 - COO buys 310K shares at 10.4p. Max allowed under concert party rules.-----In terms of all TR1s in 2022/23 we have:17/4/23 - Stonehage Fleming go up to 5.04% but must have subsequently bought more as now showing as 5.46% on register.5/5/23 - Crux Asset management go up to 4.85%19/6/22 - Sarasin & Partners LLP go up to 5.41 and bought a smidgen more since as up to 5.46% on register.16/8/23 - Crux go up to 5.05% but have subsequently bought more since as showing 5.18% on register.So in conclusion (obviously DYOR) Premier Miten were the sellers (yet tbc) whilst Stonehage Fleming, Crux, Sarasin & Partners and the Directors have been buying.

[parob] 07/1/2024 09:02

This weekend I have been going through all the RNS since the business floated in 2021.

Shareholder info is up to date as of 19/12/23 on their website, so very recent:



Interestingly on floatation Premier Miton owned just over 7%, there have been no holdings RNS from them since, yet on the current list of shareholders they aren’t listed as a 3%+ holder.

I think they were the seller that dragged the price down to under 10p (they had over 10M shares) and it wouldn’t surprise me to see a TR1 with their name on soon.

As mentioned in my post yesterday, the overhang seemed to have finally cleared on Friday.

———

This makes sense as the price just couldn’t get beyond 11p over the last 10 weeks or so despite buying demand being there. The seller imo was still unloading.

[colinroberts] 07/1/2024 08:35

Yeah its a bit of a mystery to me too. I thought it was just down to the phasing/payment dates of contracts so I bought a while ago at an average of 18p. Obviously they then continued dropping, so I lost interest. The recent pick-up has got me looking again - I'm fairly confident they'll come back to the 20-30 range in time, but not confident enough to increase my holding. This whole concert party thing unnerves me a bit...

[takeiteasy] 07/1/2024 06:03

Can anyone explain to a newcomer here why this has dropped so far - if folks were happy to pay 1.22 in 2021, something fairly extraordinary must have taken place surely and what is the current position as you look at the website and it seems quite a straightforward/sensible business = what are we missing?

[cyberbub] 06/1/2024 23:48

I would think that a fair price today for an industry buyer that can strip some costs out, taking into account 6p in cash, would be something like 25-30p?

[parob] 06/1/2024 08:52

FYI30/09/21 RNSAdmission Highlights-- Made Tech raised gross proceeds of GBP85.4 million at a placing price of 122 pence per share.-- The oversubscribed fundraising raised gross proceeds of GBP15.0 million for the Group, and GBP70.4m for certain selling shareholders.

[parob] 06/1/2024 08:41

Perhaps management already have some potential suitors lined up.Or maybe they will do a management buy out whilst they consider it cheap. Let's face it Rory and Chris have plenty of cash from the IPO in 2021 when the business was floated with a market cap of £180M. Now it's £17M. They could then look to sell further down the line and make a decent profit.Either way it's very interesting that the CEO and COO are up the max amount allowed under concert party rules ie 43.03%.--17/11/23 RNS:Further to the Company's announcement on 23 February 2023, Chris Blackburn and Rory MacDonald (together, the "Concert Party") are permitted to acquire ordinary shares in the Company such that the Concert Party's fully diluted shareholding does not exceed 43.04% of the Company's issued share capital (as agreed with the Takeover Panel). Following the above purchase, the Concert Party's fully diluted shareholding in the Company is 64,245,033 ordinary shares, equivalent to 43.03%. Further details on the Concert Party are included in the Company's Admission Document dated 27 September 2021.

[parob] 05/1/2024 18:22

1890000 trade now showing from this morning so almost 8M traded today.Perhaps that was the last of the overhang, hence shackles off today.

[cyberbub] 05/1/2024 17:08

I think the recent heavy buying by the 2 directors to their absolute maximum permitted levels is a screaming signal that they intend to sell out to a bigger fish, who can strip out central costs and create a positive cashflow. Just my view of course.

[dr biotech] 05/1/2024 16:41

Well it’s not profitable at the cash level. Adjusted earnings don’t count - too easy to manipulate. Whilst I retain a very small holding here management have it all to prove.

I learned my lesson about adjusted vs cash earnings when a company I held made “adjusted “ £10m but actually was deep in the mire and went under.

[cu5hty] 05/1/2024 16:32

£20M market cap£8M cash£0 debtOnly 148M shares in issueProfitableWhat's not to like?

[lawson27] 05/1/2024 16:27

One of my better investment decisions today, nice strong finish, have a good weekend all.

[qs99] 05/1/2024 16:08

Full offer being asked now...

[parob] 05/1/2024 16:07

5M volume hit for the day and full ask of 13p to buy currently.

[dr biotech] 05/1/2024 15:58

It was a 2023 nap at 24p so I doubt many more would pile in. Their new year tips were fairly hopeless.. in fact their Jan edition last year was awful. Also tipped Lbg at 105[now 85) and SND at 60p(now 5p)ENSI at 90p (38). Main tip dotd dipped but recovered. Whilst it has given some great tips in the past, it’s recent record has been mixed. And I’m a subscriber..

[hamidahamida] 05/1/2024 15:56

Mind boggling how low the valuation has dropped considering company still growing no debt bucket loads of cash and now profitable