Maintel Share Discussion Threads

[nfs] 11/4/2016 12:25

Oh yesI forgot thatThanks

[hugodscott] 11/4/2016 11:58

nfs

On the contrary, in the latest results Maintel clearly spelt out a progressive dividend policy: "It is the Board's current intention to increase the dividend per share by 5% and 10% for the financial years ending 31 December 2016 and 31 December 2017, respectively."

[nfs] 11/4/2016 11:07

I suspect that the dividend growth will be halted until they get the debt down

[pj 1] 11/4/2016 10:19

Having a look here.

Any comments on the gearing? With £36m more debt for the acquisition and further debt available the gearing will be well over 200%, and paying a dividend. That does not make sense to me. The balance sheet looks very poor with intangibles stripped out. Somewhat de-risked by the previous good cash generation though

What am I missing?

[buffetteer] 11/4/2016 10:08

Imp
Thx for your calculations. I suspect Maintel won't be happy with profits of 1.1m on sales of £100m .there must be much more to come. After all it's the same market that they operate in but twice the size. Since Mai make 11% on sales you would assume Azzuri should be making similar levels.
With the large commitment of private funds from the 2 founders I would be surprised if the upside wasn't much greater than all the forecasts.

[nfs] 11/4/2016 08:35

I bought in todayHappy to see a 'transformational' deal for a cash generating company with a terrific record on a decent rating

[impvesta] 11/4/2016 08:25

"Buffetteer
9 Apr'16 - 12:06 - 138 of 140 1 0

Imp
835p seems still far too cheap.probably worth that before the takeover.
The directors have put their hands in their pockets for many millions .
The savings will be £4.7m at least"

Morning Buffetteer. It certainly looks a fantastic deal if the cost savings come through as predicted. Just adding the two companies' accounts together (admittedly not covering the same 12 month period) gives a combined profit of:

Maintel £4.1m + Azzurri £1.1m = £5.2m + cost saving say £3.7m (£4.7m less 20% Corporation Tax relief)= £8.9m. This would be a massive uplift on Maintel's own profits of £4.1m.

[penpont] 09/4/2016 23:04

Thanks for the forecasts Buffetteer. Do still look good value.

[buffetteer] 09/4/2016 13:42

Finncap eps
12/15 61.1p
12/16 66.5p
12/17 85.2p
That would do nicely !

[buffetteer] 09/4/2016 12:06

Imp
835p seems still far too cheap.probably worth that before the takeover.
The directors have put their hands in their pockets for many millions .
The savings will be £4.7m at least
The management have proven skills in this industry having grown earnings nearly 17% per annum while returning nearly 30% Roce for many years.
Conclusion
It should be valued on s market premium of at least 15x and more importantly worth keeping as this exciting story unfolds.
Clearly their aspirations are substantial and the market will wake up to it sooner rather than later.

[penpont] 08/4/2016 15:37

Excellent reaction. Pleased I managed to add 1000 on a limit order at £7.35 shortly after the return. Anyone seen revised forecasts?

[impvesta] 08/4/2016 14:54

"hugodscott
8 Apr'16 - 14:40 - 135 of 135 0 0

Most significantly, the three largest shareholding directors took up their subscriptions in the placing, committing £7 million between them. That is quite a vote of confidence!"

Well, yes, but you would hope the directors would have confidence in the deal they have done. On the other hand £7m between 3 directors is quite a lot of money to find!!

[hugodscott] 08/4/2016 14:40

Most significantly, the three largest shareholding directors took up their subscriptions in the placing, committing £7 million between them. That is quite a vote of confidence!

[impvesta] 08/4/2016 14:03

Placing significantly oversubscribed. £24m raised:

[impvesta] 08/4/2016 13:25

I was intrigued by this from one of this morning's many RNSs:

""Eddie Buxton, Chief Executive of Maintel, commented:

"This is a highly complementary and transformational acquisition...""

Having done a bit of digging on the Companies House website I can see why "transformational" has been used. Maintel's revenues for the year to 31/12/15, announced today, was £50.6m. Azzurri's revenue for the year to 30/6/15 was £101.2m. So Azzurri's revenue, based on the latest completed accounting year, is exactly double that of Maintel. In other words this acquisition may treble Maintel's revenue.

Profit after tax is a different matter. Maintel £4.1m, Azzurri £1.1m.

A very interesting deal and I hope Maintel aren't biting off more than they can chew.

[impvesta] 08/4/2016 11:21

"Buffetteer
8 Apr'16 - 10:45 - 131 of 131 0 0

Finncap updated price target to 1150p -shame were excluded from the placing !"

I wondered if your early morning silence meant that you were unable to comment until the placing was concluded! Obviously not then. That's a pity. Will be interesting to see what level the shares open at when the the suspension is lifted.

[buffetteer] 08/4/2016 10:45

Finncap updated price target to 1150p -shame were excluded from the placing !

[penpont] 08/4/2016 08:09

Yes, looks like excellent stuff. Results pretty much in line plus good to see a progressive divi strategy laid out. Acquisition to be earnings enhancing immediately and has high level of recurring earnings.
Will be interesting to see at what level shares return.

[glaws2] 08/4/2016 08:08

Wow - transformational acquisition - Azzuri in a different class to Maintel - only know industry reputation - no idea on financials.

[impvesta] 08/4/2016 07:58

Action stations here this morning!

Cracking annual results:




An acquisition:



Funded partly by a placing:



which means the shares are suspended until later today.

apart from that, nothing much doing!!

[penpont] 25/2/2016 12:40

Anything likely to be up here? Results can't be too far away.

[buffetteer] 08/9/2015 08:54

Yes agree . Bought at £3 and averaged up over last couple of years when the valuation seemed too low. Still think they're cheap on prospective earnings of 56p. I think the pe will increase as they grow and become more well-known . They make such high returns that they can continue to grow by acquisition and payout 50% of earnings so the future looks bright.

[impvesta] 08/9/2015 07:29

Cracking interims this morning:



"Highlights

· Revenues up 20% to £24.8m (H1 2014: £20.7m)

· Increase in Group gross margin to 38.3% (H1 2014: 35.7%)

· Adjusted earnings per share[1] up 30% to 27.4p (H1 2014: 21.0p)

· Integration of Proximity progressing well

· Strong Group order backlog for second half

· Proposed final dividend per share increased 38% to 12.8p (H1 2014: 9.3p)"

Increasing profitability and dividend yield in excess of 4%. One to tuck away for future growth IMHO.