Made Tech Share Discussion Threads

[quepassa] 29/9/2013 17:13

At the recent Equity Development presentation, CEO Adrian Gunn said that it was Matchtech's vision to be the leading specialist engineering recruitment Company in the UK.

The full and impressive presentation is available at the website of conference host, Equity Development.

ALL IMO. DYOR.

QP

[paleje] 29/9/2013 11:28

Aside from the debate about senior appointments, there's an interesting article in todays ST which highlights the skills shortages in the UK and set to get worse as the economy improves, assuming that's what happens of course.

Alastair Cox, Hays CEO, came up with some numbers:-

Within 8 yrs 2.4m of UK's 5.4m working engineers will retire.
On conservative estimates the sector will create a further 330,000 jobs.
British Unis only churn out about 25,000 engineering grads each year.
The upshot, according to Hays, is that 2.7m positions..roughly half the country's engineering workforce...will need to be filled.

That's a lot of future business for MTEC and others in this sector, regardless of who's at the helm:)

[quepassa] 25/9/2013 10:53

It will behoove readers to look again at the relevant recent RNS and to pay careful attention to Mr. Gunn's words in the final two paragraphs.

Leaving a company most certainly does not indicate per se underperformance in any respect.

I view the Top Job as that of CEO not as Chairman.

ALL IMO. DYOR.

QP

[zoolook] 25/9/2013 09:37

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 20:17

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

[paulypilot] 24/9/2013 17:47

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 11:49

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 11:11

Any background as to why he was replaced at Randstad?

[quepassa] 23/9/2013 10:57

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 19:53

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 19:42

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 12:50

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

[quepassa] 20/9/2013 12:39

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 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!