Partway Share Discussion Threads

[a2584728] 19/4/2017 11:18

Adding ridiculous drop on such a small sale.

[insideryou] 12/4/2017 00:14

About time this thing moved. Terrific results.

[inbrackets] 11/4/2017 22:11

Not sure that much can be counted on as far as a sale of Inition if anyone is hoping that that will fill any piggy bank. Should be in a position if all goes well over the next couple of years and may be of interest to externals if their future looks promising enough.

[kemche] 11/4/2017 22:09

mod,
:)
Gone greyer still!

Hope all is well with yourself.

[a2584728] 11/4/2017 19:50

That article is nonsense and written to encourage the share price down. This share price will go only one way and quickly

[modform] 11/4/2017 19:09

Blimey kemche you're still holding from the days of CR thread. Hope your patience is well rewarded

[kemche] 11/4/2017 17:33

Questor a tad lazy with "although the stretched balance sheet means this remains a very risky play." He forgets to mention that they could generate £4m in cash during the year which will put paid to the substantive part of the debt - and that is without counting on any contribution from the sale of Inition.

[inbrackets] 11/4/2017 14:56

Pretty fair to me.Thanks to QuestorShares in small-cap consultancy and recruitment specialist Parity are up by more than a fifth since our first look at the shares in February, but last month's full-year results suggest there could be more to come if the turnaround plan continues to develop apace. Chief executive Alan Rommel has further strengthened the management team, bringing in John Conoley, former boss of Psion, as non-executive chairman.This new team will hope to build on the early encouraging progress as Parity tries to recover from a failed acquisition spree and rebuild both its profit margins and balance sheet in the process. March's full-year figures read well in this respect, as the company returned to the black and reduced its net debt to £4.4m from £7.4m.The company is not out of the woods yet as the pension deficit rose to £1.8m but improved cash flow and the decision to put a non-core asset up for sale should help to strengthen its finances. Two long-term contract wins provide some welcome visibility to the profit and loss account.If debt keeps falling and profits keep rising, Parity's £12m market cap could start to look low compared with its £90m-plus in annual sales, although the stretched balance sheet means this remains a very risky play.

[chrisis33] 11/4/2017 14:50

I assume the comments were generally positive about the prospects at PTY?

[a2584728] 11/4/2017 11:43

Well run and managed company and that in AIM can only be good.

[interceptor2] 11/4/2017 11:28

Wasn't aware of comments in DT, perhaps both items have had some influence?

[inbrackets] 11/4/2017 11:24

Could be due to Questor comments in DT.

[interceptor2] 11/4/2017 11:06

Rise today could be due to the positive trading update from RWA, a recruitment company for professionals, so similar in part to PTY.

RWA which is 50% UK focussed reported net income fees from the UK at +27%, bodes well for PTY which is 100% UK focussed.

I am warming to this sector again....

[a2584728] 05/4/2017 12:23

Where is this going next, is it falling to support level or gonna bounce? Chartist help please

[chrisis33] 31/3/2017 10:01

The proposed Inition sale may also provide a boost, but I'm unsure how much it might generate. I bought here because of the price:sales ratio and the potential for small margin improvements to make a big difference on the bottom line.

[interceptor2] 31/3/2017 09:53

Pleased to see yesterday's reaction to last weeks results continue today.

Because reported EPS at 0.87p was slightly lower than estimated 0.94 I think the initial reaction was cautious, but apart from the more positive outlook sentiments expressed I think the large reduction in net debt and the likelihood of reduced finance charges was overlooked. It could make a significant impact to the bottom line on top of continued improvement in trading imo.

[chrisis33] 30/3/2017 09:42

Starting to react as it should have done upon the upbeat results IMO.

[malcontent] 29/3/2017 16:06

I think that the paltry market cap may be keeping this one off of a few radars- possibly and hopefully once we start to climb a bit- the valuation may start to normalise a little- and to be fair, this one has taken a fair while to turn around.....

[kemche] 24/3/2017 21:51

abergele,
Job would be proud of the patience we have shown!

But I am sure, that as always, value will out.

I think it is not inconceivable that they could easily be achieving anything between 1.4p to 1.8p earnings, which would put them on a rating of between 6X to 7.7X this year.

As always I have not seen any projections from the broker and the IR department seem to be missing in action.

[abergele] 24/3/2017 21:38

Kemche,
I like all you say,and can't better it,
it's just time,perhaps a few T trades expecting a rush of 5p and getting out,
we can sit here longer term.thanks David.
gla.lth's

oh and chart is still fine by me

[kemche] 23/3/2017 13:34

The cashflow yield on this company is just too silly for words. The company generated £3.4m in cash from operations during the year. At a market cap of circa £11.5m the company is trading at a miserly 3.4X cashflow.

That on its own should be enough to whet the appetite but there is more. The yearly figure hides the true strength of the turnaround in progress: of the £3.4m cash generated in the year a substantial £2.3m was generated in H2 alone! (H1: £1.1m) - a 100% more cash generated in H2 than H1!

On an annualised basis the extrapolation from the H2 figures would imply that could generate circa £4m in cash for the year. That would make a sizeable dent in the £4.4m net debt at the year end (excluding whatever can be achieved from the sale of Inition).

"We are confident that the business provides further enhanced growth opportunities, positive cash flows and shareholder value."

I look forward to bolt-on acquisitions in the consulting space with the internally generated cashflow in due course.

[chrisis33] 23/3/2017 12:44

Also bought here pre- and post- results.

[interceptor2] 23/3/2017 12:42

Bought in here today, surprised I could buy lower than the open after a few sellers appeared.

Put PTY on my watchlist after the positive trading update in December, today's results have increased my conviction that the turnaround strategy is gaining strength.

Cashflow was very strong and they said that cost control will continue, borrowing reduced about 15% which is a trend that is likely to continue, this will make a significant difference to finance charges and feed straight to the bottom line this year.

The basic figures look good by themselves with EPS at 0.87p and shows that H2 was very strong, agree it will be good practice to get away from highlighting the EBITDA figures now.

[kemche] 23/3/2017 12:09

For the first time, in a very long time, I can actually believe a BOD! I never thought I would be writing such a thing.

These results are shockingly good on virtually every metric one cares to look at:
PE, especially PCF, Net debt/Ebitda, cashflow, net margins, divisional contribution, debtor days etc.

Notice that they state that going forward they will use operating profit as the key KPI - which is a tacit admission that they will be ditching the dreaded "adjusted EBITDA" measure - and therefore one suspects that we shall be not be seeing the awful "non recurring items" which somehow always recurred.

The standout is surely the consulting side with its attendant margins and I would not be surprised if they beefed this up either organically or via acquisition from the hoped for contribution from the sale of Inition.

Surely the cashflow is the star in these results and if that continues, especially with the sale of Inition, then we could be looking at the wipeout of debt by the year end?

All IMHO and DYOR etc.

[dusseldorf] 23/3/2017 08:28

Looks like price movement is liquidity driven (more sellers than buyers). It's a cracking set of results across all fronts IMO.