Microgen Share Discussion Threads

[mg1982] 18/5/2015 08:09

Bought some today. I think the fact that we have a party (ies) interested in a part or whole of MCGN speaks volumes. All the trades so far are buys despite showing as sells.

A good entry low point on the chart and looking to hold for a couple of years.

Good luck all holders

[cwa1] 18/5/2015 07:48

Lots to take in. Most of it very satisfactory, some of it very interesting(my bold):-

www.microgen.com 18 May 2015

MICROGEN PLC

AGM TRADING UPDATE

Martyn Ratcliffe, Chairman of Microgen plc ("Microgen" or the "Group"), will provide the following trading update at the Annual General Meeting to be held at 9.00am this morning.

"The Board is pleased to confirm that the results for the four months ended 30 April 2015 are ahead of the comparable period in 2014 and ahead of the Board's expectations and plans for the current year.

The Group maintains good visibility of its full year revenue with 84% of total planned revenue for 2015 already contracted and 95% of current year revenue expected to be generated from this customer base. This high level of forward revenue visibility is derived from the Group's annual licensing model.

Aptitude Software is progressing satisfactorily, with increased services demand in the year to date and a good pipeline of new business opportunities, particularly for the Aptitude Revenue Recognition Engine, an Aptitude-based finance application which addresses the IFRS 15 accounting requirements. Microgen Financial Systems has also continued its success with the 5Series Trust & Fund Administration product and has successfully completed the integration of the Unity acquisition.

Following the completion of the GBP20 million B/C Share Scheme in April 2015, Microgen has now returned GBP70 million to shareholders since October 2008. In line with the Group's seasonal cash flow cycle, the Group had cash at 30 April 2015 of GBP18.6 million (31 December 2014: GBP40.9 million) and net funds of GBP3.1 million (31 December 2014: GBP24.6 million).

In summary, the Board are pleased with the start to the year and anticipate continuing the Group's track record of resilient financial performance.

Following the Group's Preliminary Results announcement in February, the Board received an unsolicited approach from a UK private equity organisation which, following a period of due diligence, resulted in a proposal to acquire the Aptitude Software business. While the proposal provided an affirmation of the Group's market valuation and the Aptitude strategy/potential, the Board did not consider this proposal to be in the best interests of Microgen shareholders and discussions were therefore terminated."

With regard to the Board succession announced in February, Martyn Ratcliffe has advised the Board that he will be retiring as a Director after the release of the interim results in July but will remain an employee of the Group until the end of September to provide a transition. In accordance with his personal investment practice, Mr Ratcliffe has informed the Board that he will be realising his 17 year investment in Microgen and the Board will be working closely with the Company's broker, Investec, to place this holding with institutional shareholders in a timely manner. The process to appoint a new Chairman is underway and an announcement will be made in due course.

[cwa1] 18/3/2015 09:45

Just had a few ahead of the ex date for the special dividend tomorrow. Seems to be plenty of stock about though....

[2bluelynn] 03/3/2015 18:25

Cheers cool , I'm interested in others view too .

[coul909] 03/3/2015 11:48

2blue - yes, I've made your point and mine to Investor Relations at MCGN, but as usual, they cannot say anything which is not in the public domain, i.e. RNS or the 'Circular' available on their website. I presume there may be some minor advantages for the company in tweaking the figures (such as EPS figures), and the cynical side of me assumes that they have already discussed this move with the major investors (funds etc). But for Private Investors at best it will be broadly neutral and for some (who now have an enforced tax situation in this financial year) they are likely to lose. I would be grateful to anyone with better knowledge of these company actions if they can explain how this action (which must be costing a few hundred thousand) could benefit the company or investors? thanks in advance.

[filtono7] 27/2/2015 20:06

plus the divi..

[filtono7] 27/2/2015 20:04

hi folks the payout will be base on 9000 not 7000 shares

[2bluelynn] 27/2/2015 17:09

Cool909 really good point ,I've just been doing the same maths to decide what to do . I Carnt see a benefit either way and if you pay tax on it because your not in a isa or sipp then your a lot worse off . Thoughts anyone !! thanks in advance

[2bluelynn] 25/2/2015 19:31

Speedsgh Thankyou totally get it . Mine are all in a sipp so no tax implications I presume . Cheers chaps

[cwa1] 25/2/2015 16:53

Think that speeds has summed it up nice and simply. Just to add: IF you hold these in an ISA, it doesn't really matter which you choose-B or C, IMHO. However if you hold them outside an ISA, then you need to think about what your tax situation is, IE whether you want to take as capital or income.

[speedsgh] 25/2/2015 15:25

2bluelynn - Think you may have misunderstood the situ here. Part of the company is being returned to shareholders in the form of cash. There is no option for receiving more ordinary shares instead of cash.

The return of cash is being effected thro the issue of B and C shares. The only decision you have to make is whether you wish to receive the cash return via B shares (cash return will be treated as a capital gain for tax purposes) or via C shares (cash return will be treated as income for tax purposes). If you don't make an election, you will automatically be allocated C shares + the cash return will be paid out as dividend income.

After the return of cash, you will hold the same number of shares in a smaller company. However, in order to maintain the share price at roughly the same level as prior to the return of cash, the company is also proposing a 7-for-9 consolidation of the ordinary shares. So, if one was to own 900 shares prior to the consolidation, post consolidation the share price would remain the same but you would own 700 shares (the difference in value between your shreholding pre/post the share consolidation is being returned to you via the Return of Cash).

Hope this helps. Not sure I can explain it more simply.

[2bluelynn] 25/2/2015 14:55

So is it best to take the dividend as cash ?or take the 7 for 9 shares im puzzled ? Any views out there from you clever people ... I have 7500 of these so want to make the right choice I take it once the shares are issued the share price will drop by approx 22% due to the consolidation so to a £1 ish area Any advice out there ,maybe NTrader has a view ,I seem to think he has a load of these tucked away . Many thanks in advance

[speedsgh] 25/2/2015 10:57

See copy of circular here -

Looks like Record Time is close of trading on Weds 18 March so to be safe would suggest that you need to be holding at close of business on Tues 17 March in order to qualify for the return of cash.

Cash return to be made by 1st April.

Hope this helps.

[persevere2] 25/2/2015 10:47

What date for holding MCGN shares does the return of cash apply ?

Thanks

[speedsgh] 25/2/2015 09:17

EI - Will the return of capital not be broadly neutral seeing as there will also be a share consolidation will occur alongside the return? I note that the final dividend has been maintained at the same level as last year.

Struggling to get my head around whether MCGN is a decent investment or not. Share price performance in recent yrs has been disappointing.

"the Board is proposing to return to shareholders approximately £20 million in cash, equivalent to 27 pence per share, ("Return of Value") by way of a B and C share scheme ("Scheme"). The Scheme provides shareholders (other than certain overseas shareholders) with a choice of receiving the cash in the form of income or capital provided that the Return of Value is completed prior to 6 April 2015. The Return of Value will be accompanied by a proportional share consolidation to maintain broad comparability of the share price and return per share of the ordinary shares before and after the creation of the B and C shares."

[essentialinvestor] 25/2/2015 07:08

27 pence a share )

[jakedog2] 24/2/2015 20:50

shauney2 ref how much will they return?

Based on 74m shares& return amounts mentioned .... i'm expecting....

£15M return = 20p / share

£20M return = 27p / share

Will soon see....

Cheers
JD2

[essentialinvestor] 24/2/2015 18:50

The company clearly state the net cash figure, so not sure why
that even merits a mention.

The major cash generation and future potential of Aptitude
appears key to the valuation.

Aptitude is still at a very early stage, with hopefully a big payback
over the next 2-3 years, all IMV only.

[speedsgh] 24/2/2015 17:22

Worth a read...

Microgen: High Margins And Cash Rich But Not For Me -

[cwa1] 24/2/2015 16:59

Afternoon

FWIW, I've picked up a handful of these as a punt myself. Good luck all.

Re results. They said this in their last update: Microgen plc ('Microgen' or 'the Group') anticipates issuing its preliminary results for the year ended 31 December 2014 in late February 2015

So really has to be this week.

[shauney2] 24/2/2015 16:34

They normally flag the results up a few days before.

Interesting how much they give back to holders if they stick to that plan.

[jakedog2] 24/2/2015 16:31

EssentialInvestor - agree.

results were on 25th & 26th Feb in the last two years, so will hear something this week

[jakedog2] 24/2/2015 16:26

Biggest volume in 12 months traded today.....

2 x 560K sells gone thought at 123p.


Chart looking ripe for a move up IMHO

[essentialinvestor] 23/2/2015 15:07

Results and details of the cash return may be released this week.