Nmcn Share Discussion Threads

[battlebus2] 01/11/2019 12:38

it all counts....

[cc2014] 01/11/2019 08:22

NMCN win a small part of this for:
building works North up to £3m and Residential Works North.

I'm not sure how much work that will add up to but you've got to be in it to win it!


Edit:

[qs99] 29/10/2019 11:53

Nice spot thanks

[cc2014] 29/10/2019 10:05

Seems to have taken a little while to reach Construction Enquirer but may account for some of the rise over the last few days

[jaf111] 25/10/2019 11:51

Sort of news.....

nmcn has called on the industry to take the next steps in the fight for digital transformation - as it moves towards a full asset lifecycle management approach.

hxxps://wwtonline.co.uk/news/nmcn-calls-for-digital-transformation-in-water-sector

[qs99] 25/10/2019 11:44

Never takes much to move this either way IMO. So little liquidity

[jaf111] 25/10/2019 11:38

Just tried a dummy trade....594 to buy, 555 to sell for 1,500

[qs99] 25/10/2019 11:06

Yup, have traded a little over the last 5 months or so as looked to be drifting, have bought more over last week for interest again....looks like it could be heading back towards recent highs IMO, but more importantly, with continued delivery then a bid could be on the cards IMO....cheers

[jaf111] 25/10/2019 10:59

Good question.....rather a wide bid / offer spread so mms seem unclear too!
Very little actual share trading being reported.....but just maybe something going on?
But as I said yesterday nmcn seems very undervalued so I will wait patiently......

[qs99] 25/10/2019 10:43

wonder if we will see another later in the day surge?

[eclair] 24/10/2019 14:29

Carry on talking - I like the effect it's having.

[jaf111] 24/10/2019 13:31

Maybe i'm not talking to myself!!!

[jaf111] 24/10/2019 12:08

Well no trading update thus far....but one never knows!

More relevantly the share price continues to move back up.....still see this as very undervalued....share price was £7+ in spring. IMO no reason why it shouldn't return to that level if trading continues to improve as management forecast......

[qs99] 17/10/2019 09:32

they had to wait for the deal to be done probably. Not sure of the rules now before a TU but like you having seen one last year effectively next week, it would be odd not to get some TU sometime soon IMO....DYOR

[jaf111] 17/10/2019 09:30

Yes maybe right....time will tell.....

hopefully at the very least the director dealings imply all is well at nmcn!

[networker] 17/10/2019 09:11

JAF
I am not expecting any announcements for quite a while. Recent director share dealing supports this view as they have to comply with the regulations to avoid any suggestions of insider trading.

[jaf111] 17/10/2019 09:05

Hopefully a trading update next week.....they gave one 24 October last year.

[qs99] 17/10/2019 08:53

Good to see some director buying and new contracts. Recent M&A looks very interesting as well. Wonder what PBT they could get out of it in the end. Good use of cash IMO....DYOR

[deanowls] 14/10/2019 11:05

Obviously doing their own properties has stood them in good stead for winning that contract.

[deanowls] 09/10/2019 12:06

The current inability of the government to have a meaningful discussion of any kind I reckon.

[qs99] 09/10/2019 11:45

Looks a bit sickly....anyone any views on why?

[eclair] 07/10/2019 10:12

Thanks for the research

[cc2014] 07/10/2019 10:02

The share price hasn't reacted. Probably because on the face of the RNS this is quite a complex deal and takes some time to digest.
I've spent the morning researching and here are my notes.

Firstly I like the acquisition because its relates to the strongest part of NMCNs business, the water sector, where they have the most expertise and steady and increasing margins. The synergies are clear in that this acquisition should be higher margin than NMCNs existing business, which they can use their cash reserves and client base to expand the business.
Secondly it says something about the company and the CEO John Homer in that they are driving the company forward. Its the same with all the long term frameworks they are winning but the market doesn't seem to have noticed this is a growth situation coupled with very clearly targeted expansion which plays to their expertise.

So, I like the acquisition very much in principle but how about the price paid and the motivation of the sellers.
First the price. Which is this year and the next two years profits + £85k + whatever they collect on £675k of specific sales invoices, capped at £3.76m. NMCN are protected in that if they don't generate profits they won't pay very much, but pay out much more if the profits are high, but it's limited to 3 years profits. Buying a company for 3 years profits appears "inexpensive" to me. I suspect this all falls of out the inconsistent profits shown at Companies House. 2018 loss for LCS £998k, but 2017 profits £909k.

And so to the motivation of sellers. It appears LCS was spun out/sold/MBO (or something similar I haven't established yet) from CEMA and as part of the deal LCS ended up owing money to CEMA as CEMA retained some preference shares. Unfortunately I haven't been able to establish the interest rate or exact purpose of these but I suspect it was a kind of funding stream for LCS which was to be paid off over a number of years. I would guess that this was a burden for LCS and with the loss in 2018 was something they would have struggled to pay off in the short term. As part of the deal NMCN get rid of all this through the buyer loan.


I perceive what it comes down to is what you often see on Dragons Den in that the current owners are doing just fine but their expansion is limited by resources, capital and the history of the deal with CEMA and whilst it may be difficult or painful to sell, they realise in the long run they are better off (financially and emotionally) as part of a large company where the directors are happy to generously reward good performance. Overnight CEMA will have access to a larger customer base and NMCN may be able to significantly leverage the turnover (and thus economies of scale)

[impvesta] 07/10/2019 09:01

Acquisition announced this morning:



"LCS is a Process Solutions Provider. The company specialises in the design, manufacture & after-care of digitally integrated factory-built, Water & Wastewater Treatment Systems, Process Software / Systems Integration."