Managed Support Services Share Discussion Threads

[madmadscorpioman] 04/7/2010 12:18

The Company has been informed that on 21 April 2010 Directors in the Company
bought shares at 6.8 pence per share as follows:

+----------------+-----------+--------------------------------+
| Name | No. of | No. of shares held following |
| | Shares | transaction (% of issued share |
| | | capital) |
| | | |
+----------------+-----------+--------------------------------+
| Simon Beart | 588,000 | 1,650,501 |
| (Chief | | (1.00%) |
| Executive) | | |
+----------------+-----------+--------------------------------+
| Euan | 214,000 | 314,000 |
| McAlpine | | (0.19%) |
| (Non-Executive | | |
| Director) | | |
+----------------+-----------+--------------------------------+
| Rodney Mann | 147,000 | 282,000 |
| (Chairman) | | (0.17%) |
| | | |
+----------------+-----------+--------------------------------+
| Piers Wilson | 73,500 | 163,500 |
| (Finance | | (0.10%) |
| Director) | | |
+----------------+-----------+--------------------------------+
| Jamie | 73,500 | 205,750 |
| Reynolds | | (0.12%) |
| (Director) | | |
+----------------+-----------+--------------------------------+


They obviously knew before we did that this company has turned the corner and put some money where their mouth is which is a positive sign

[madmadscorpioman] 02/7/2010 16:02

And are trading profitably now which is good enough for me and they only cost me 6p so happy to hold from here

[richmond9] 02/7/2010 15:43

and then spent £2.8 all cash on delta

[madmadscorpioman] 02/7/2010 15:27

The Group ended the year with net cash balances of GBP3.9m and net assets of
GBP7.6m.

[madmadscorpioman] 02/7/2010 15:22

We shall see

[richmond9] 02/7/2010 14:56

I am not happy.

I think people have spent the last 24 hours looking at the numbers and have realised that they dont add up. The cash has gone, spent on top managers and directors who havnt delivered and companies that have been bought then closed at massive costs.

The city invest in winners and buy when companies they believe in are at the bottom and they can get quick returns. The lack of volume in this shows that the city, even with SB at the helm, dont believe the numbers and really dont see that a turnaround has begun.

It looks to me like the business is being supported by Llyods and needs to deliver in the current period. Lets hope the half year numbers are out quickly and they show we still have some value, but im not holding my breath.

as i said yesterday, 26m is break even and thats not good enough and wont stop this going to the wall.

[madmadscorpioman] 02/7/2010 08:21

I am happy to hold here and believe the turnaround has begun, directors buying, cash in bank, in profit, how many companies can say that these days and with a bombed out share price, GL all

[sheila16] 01/7/2010 22:32

cue additional expenditure on restructuring costs... you wonder how small the company must be given that the last 5 (?) accounts have shown ££££ worth of these - poised to be a national leader in its field with hardly any staff????

[serratia] 01/7/2010 18:33

Something I can't rationalise yet.If you add up all the figures for the companies they bought - Sales £15m,operating profit £1.133m.If you take their estimate of £26m sales and a margin increase to 27%,same admin cost as last year(£5.4m - more later)you get an OP of £2.53m.This suggests they will either need £1.4m from the old business or an increase from those they bought.Last years OP was -£1.68m so the old business would need an enormous turn around to get from - 1.68 to +1.4m.Can't make it add up.
Further comment on admin costs - In my previous post I kept admin at 2009 levels of £5.4m.I note that H2 2009 they were £3.16m ie £6.32m annualised so they need some big savings to get back to £5.4m.
Of course there should be some admin saving on merging the companies - you don't need 6 FD's! Maybe my OP figure of £2.6m is a bit generous.

[sheila16] 01/7/2010 17:18

cash in bank at 31st march = £4m

post balance sheet event: acquisition of data sound for cash consideration of £2.8m

= £1.2m left in bank??

[madmadscorpioman] 01/7/2010 16:27

sheila16 Lets hope so and it should be interesting reading GL

[sheila16] 01/7/2010 16:16

so presuming the company is now trading profitably, they'll be rushing out the interims in a few months then?.....

[madmadscorpioman] 01/7/2010 15:43

serratia Thanks for that and 11p is my target so you would not be far wrong, a much higher price could be obtained once they prove their worth, GL anyway

[serratia] 01/7/2010 15:33

I don't hold but have been watching these as a turnaround candidate.Here are my thoughts but DYOR they're just my best effort so far.They had £4.135m cash at year end and say they're now trading profitably.
I've run my figures,they performed far less than I envisaged but seem on track to improve.If you double half 1 sales and add on sales for the portion of the year they held the new companies at the rate of sales quoted at the time of their purchase they should have had sales of 26m but achieved 15.3.Either the remaining part of the original collapsed or the new companies are doing less than they did at the time they were acquired.
GP was slightly better than my estimate at 24.3%.Admin rose by 1m over my estimate and were 35% sales which is way way too high.Restructuring charges came in 350k more than my guess.So all in all a lot worse than I thought.
On the upside they're looking at 26m sales with an improving GP let's say 27% vs 24%.I've assumed no more restructuring charges(though they should do something about the admin) and after a few other charges (dpn etc) I end up with a forward OP of 2.6m.Cash flow pre WIP would be about 3.6m.EPS about 1.8p giving a forward P/E of around 3.6.Cashflow/share drops down to 2p (figs pre finance costs/tax) both should be small/zero.
So what's it worth in 12 mths? Due to their history I think the market will be loathe to give them a high multiple.They took investers money invested it in failing operations and then wrote it off so they need to rebuild credability.If you say 6 then that looks like 10.8p.You could also say 5* cash flow which would also be 10p.A third view is the multiple paid for their purchases.They gave sales and operating profit so using those multiples they paid between them 13.5* OP.That would value them at 35m if my spreadsheet is correct or 35p/share.Of course they may have paid top dollar who knows ? Anyway if they perform 10p should be a possibility.
Hope this helps

[madmadscorpioman] 01/7/2010 15:07

Hi Richmond we will have to agree to disagree as i think 11 or 12p could easily be achieved from here based on the results and forward looking statement

I have been wrong before though lol but GL anyway


Group now trading profitably following losses incurred in the year to
March 2010

� Jamie Reynolds appointed to Main Board

� New operational management team

� Recent acquisitions performing well

� Strong balance sheet

� Legacy issues from original Group resolved


Commenting on the results, Simon Beart, Chief Executive said:

"The new team has achieved a great deal in a short time. We are now profitable
with a strong platform and we expect rapid growth both organically and by
acquisition."

[richmond9] 01/7/2010 15:00

i have many thousands of these shares and really hope they do ok, but looking into the results:-

- it looks like they have set up a new co. because they have no more money for acquisitions. They raised 25k by asking the new co team to buy an equity stake. Thats not going very far

- They cant spend the remaining cash in the bank because they need this to ensure they are a going concern, so would need to go to the markets to raise capital. Cant believe Lloyds will give them money for acquisitions on the back of a 4m+ loss.

- they expect turnover to recover to 26m this year and have margin of 24%. with an overhead of 5.4m they need to hit these numbers just to break even.

I dont see where the upside is. They are valued at 6.5p because thats what they are worth at least for the next 12/18 months, if they last that long.

[madmadscorpioman] 01/7/2010 14:36

In for a few this sounds like a sound little stock now GL all

[petersmith6] 01/7/2010 12:56

but nows today...and theres money to be made

[knowing] 30/6/2010 16:05

Yes absolutley

[littlemadam] 30/6/2010 16:03

Disgraceful.

[richmond9] 30/6/2010 13:26

share has lost 55% of its value in 6 months and still nothing from SB