Minorplanet Systems Share Discussion Threads

[goldenmember] 06/8/2009 12:04

IMHO, this seems like a last throw of the dice. From reading the document, it looks like £3m is nowhere hear enough to gurantee survival of this business as they have accrued a huge amount of creditor backlog. I am not holding anymore but if I was, I would rather bet the money at 5000 - 1 on the 3 legged donkey running in the 3-10 at Redcar!

[red imp] 06/8/2009 10:36

The second share consolidation in less than four years. Todays 1/20 follows the 2005 1/125, i.e. anyone holding 2500 shares in 2005 will now have one. How long before its back down to 2p again?

[tom306] 06/8/2009 10:02

And so it goes on.....

The need for the new financing has been placed firmly at the door of the current recession and its problems will be solved when trading conditions improve. Is that really the case? In its recent trading statement, Trafficmaster commented upon the tracking market as follows - "Our fleet tracking business in the US has achieved some notable national account successes in the first half of 2009. We continue to make good progress in both the US and the UK, and we expect results for the first half to be ahead of the prior year. Sales prospects are encouraging; however, the longer sales cycles referred to before are continuing, with some smaller fleet owners delaying purchase decisions"

Not the same tale of woe there. Perhaps the difficult conditiond have more to do with MPS's poor reputation. Anyone thinking of sinking more of their cash into this company should look at their past record and think again.

[andre] 25/7/2009 00:08

Why bother. Just pick up the pieces. The company seems to be in denial thinking that it can turn around in this climate. Expect news of asset/partial sales IMHO.

Remember them supposedly having a 40p per share offer last year which they advised against. How stupid must they feel at this point? 3p and no offers tabled now.

[bearstalker] 21/7/2009 12:29

Dead cat bounce didn't last long - now lower than ever!

Will cyh take them out or just wait for them to die?

[davidlloyd] 04/6/2009 13:07

Woofer? (A dog)

[andre] 01/6/2009 16:55

The two relevent statements in the accounts as far as I can see are -

"The Directors have concluded that the combination of these circumstances
represents a material uncertainty that casts a significant doubt over the
ability of the Group and Company to continue as going concerns. Nevertheless,
considering the cost reduction programmes already completed, the continuing
support from creditors and the fund raising initiatives currently underway, the
Directors have a reasonable expectation that the Group and the Company will have
adequate resources to continue in operational existence for the foreseeable
future. For these reasons, they continue to adopt the going concern basis in
preparing these results."

"Potential litigation
As previously reported in 2008 the Company was notified that the debt
purportedly owing from the Group's former Spanish subsidiary to Banco Popular
Espanol SA, and allegedly guaranteed by the Company, had been assigned to Asbury
Park SA and the latter has commenced proceedings against the Company. The Board
has obtained legal opinion that it has good prospects of defending the claim."

Firstly, they have doubts that the company can continue and are all but begging for a bailout.

Secondly, absolutely NO mention of their Spanish subsidiary until the statement at the end. Then a sneaky, oh, by the way, we are about to get sued now by the Spanish. They have been operating more recently in Spain under a different name, I hear (on the grapevine although I may be mistaken). To try to recover something from the wreckage. But this is still coming back to bite them after years of no progress on the lawsuit being noted in accounts. The Spanish are loading the guns and MPS have to do battle - which is never cheap in International cases. This alone could take them down permanently IMHO.

The doors are closing for the last time IMHO. The writing is now on the wall. By the way, it wasn't their fault. It was the credit crunch that got them - honest guv.

[vision88] 29/5/2009 22:01

If there's a will then surley the will will out,FOR THY WILL WILL BE DONE ON EARTH?as it is in Heaven and the truth will set you all free

[sdavis] 29/5/2009 21:32

Not good!

Take out the goodwill and the balance sheet is less that 0!!

Re selling parts of the business: others will want the good bits (CYH) but who will buy the rubbish?

New financing: how much cash will be required in the next 6 months to keep MPS afloat, and are the equity shareholders going to stump up? I think not.

Directors loans: may be the only option, but have they got enough folding stuff?

So, not sure how this will go, but I think they will either sell some good bits as a last attempt to survive and then fold soon after, or look to merge with a better financed business. Goodbye MPS.

[tom306] 29/5/2009 16:06

Read the bit about going concern in the statement, that looks like the reason for the delay

[dirk07] 29/5/2009 14:33

a number have already fell or have slashed their workforce

[cheshiremoggie] 29/5/2009 14:10

Some 'highlights':

The Group incurred a pre-tax loss of GBP2.5m in the first half (2008: profit of
GBP0.3m) on a turnover of GBP8.8m (2008: GBP11.3m).

net cash outflow was restricted to GBP1.5m..!

Immediate priority....secure additional funding

Net assets fell to GBP1.7m at 28 February 2009, compared with GBP4.7m at the
start of the financial year

sales to SME sector in the UK down 40%

____

Not the best results I have seen.
I wonder what(if anything) that means for other telematics providers?

CM

[cheshiremoggie] 29/5/2009 09:58

Maybe they'll 'quietly' release after 4:30pm today?

[tom306] 28/5/2009 18:11

So why haven't they told the markets?

[goldenmember] 28/5/2009 14:00

Apparently they will now be announced tomorrow

[tom306] 28/5/2009 10:11

MPS usually put out results when the RNS service opens so this is a change from the normal. That usually is not a good sign!

[red imp] 28/5/2009 09:00

I can imagine the conversation in the MPS boardroom:

'If we don't put out our results until 5pm everyone will have forgotten the bad news by the time the markets open again on Friday morning'.

[goldenmember] 28/5/2009 08:51

Well where are they?

[martin44] 26/5/2009 21:02

Just 1 more long day to wait, breath held and fingers crossed for the right statement!

[martin44] 25/5/2009 22:00

I am a holder

[andre] 24/5/2009 20:56

I think you are dreaming martin44. The last trading update did indeed include the above. I highlighted at the time that it didn't make logical sense. It still doesn't.

Please explain -

(referring to the upturn in corporate) "more than offset by a
marked downturn in revenues from SME businesses, particularly in the UK"

added to -

"As a result, the Group will be loss making in the six months"

The whole thing is nonsense. If the upturn in corporate 'more than offset' the loss of SME then you wouldn't be left with a much lower figure than the market was expecting and a loss, now would you? Have they suddenly landed much more big corporate business - in which case they should have announced it - but they didn't. Expect a loss and a jam tomorrow statement on the 28th. They have been doing this for years IMHO.

What is your position at MPS martin?

[martin44] 23/5/2009 20:54

Equally from the last trading update - Substantial progress achieved in larger corporate sales, which increased by 169%
in the UK on the comparable period last year, has been more than offset by a
marked downturn in revenues from SME businesses, particularly in the UK. The
restricted availability of lease finance for Minorplanet's customers in this
sector has had a profound impact on revenues in the period. Significant order
volumes have been received by the Company which it has been unable to complete,
as customers have not been able to obtain finance from third party leasing
providers.

The Board is pursuing new funding options for the Group's products in
all its key markets.

A new route to allow sales through to completion will 'win' much more business, good news will cause the stock to rise significantly next week!