Partway Share Discussion Threads

[hedgehog 100] 09/7/2023 13:18

The share price of tech stock GLAN has more than doubled this week, to a market cap. of c. £10.5M., on takeover hopes.
And it's share price has trebled since the start of April, after falling badly before that.

This sort of share price recovery could happen to PTY at any time.


05/07/2023 11:17 Alliance News Alliance NewsTOP NEWS: Glantus shares surge as mulls potential takeover bid LSE:GLAN Glantus Holdings Plc
05/07/2023 10:41 UK Regulatory (RNS & others) Glantus Holdings PLC Statement regarding recent share price movement LSE:GLAN Glantus Holdings Plc

"The Board of Glantus notes the recent share price movement in its shares.

The Company confirms that it is in discussions with Accel-KKR company, LLC ("Accel-KKR") and its investee company Basware Corporation in relation to a possible cash offer for the entire share capital of the Company.

Following this announcement, the Company is now considered to be in an "offer period" as defined in the Irish Takeover Rules, and the holding and dealing disclosure requirements listed below will apply. ..."




Glantus Holdings (GLAN):-

[hedgehog 100] 05/7/2023 07:38

Thanks Chris.

Why do you think that permanent recruitment is not doing as well as project delivery and managed services?

It's because the threat of recession makes companies warier of taking on permanent staff, as opposed to just contracting for the specific services they need:-

"For over 45 years we have been connecting our clients with the best data, technology and transformation talent. We place over 1,200 skilled professionals each year as well as provide fully-formed teams to deliver projects and managed services."


So I don't think that PTY is very exposed to the threat of a recession, and indeed this threat does have a positive for the company.

[chrisdgb] 05/7/2023 06:48

Thanks for the comments, certainly shows the potential, everyone just petrified of recession…

[hedgehog 100] 04/7/2023 12:21

PTY's £40.6M. of annual revenue is over eleven times its market cap., and its losses and debt are small in relation to this.

An acquirer may well feel that they can save costs if PTY is part of a larger organisation, and also benefit from cross-selling opportunities.

ECSC was also lossmaking, but that didn't stop if from being taken over, at a huge premium (170.1%): for c. £5.4M. of cash, compared to its latest interim revenue of £2.77M.

PTY also looks to have a turnaround underway, with good positive momentum, and I think that the H1 trading update (announced on 25th. July last year) should highlight this.


As regards a potential predator for PTY, I wouldn't be at all surprised if SThree (STEM) has already been sniffing around.

STEM's market cap. is c. £453.95M. (134,501,400 shares x 337.5p), compared to PTY's of £3.61M., i.e. c. 125.75 x higher.

That obviously considerably reduces the range of potential acquirers for STEM.

STEM is more likely to be an acquirer than an acquiree, and PTY looks like a very appropriate bolt-on acquisition for it, which it could easily afford.

STEM's revenue last year was £1,639.4Bn., i.e. (coincidentally) 3.61 x its market cap.
And that's at a depressed share price that is down from 600p in 2021.

In comparison, PTY's 40.6M of revenue last year divided by 3.61 gives a value of £11.25M.

So even allowing for STEM's cash, and PTY's debt, you can see that a takeover value for PTY of c. £10M. or so looks quite reasonable, considering that tech takeovers generally demand a big premium.

Especially as PTY has considerable scarcity value as an acquisition target.

[hedgehog 100] 02/7/2023 11:18

15/06/2023 13:25 Alliance News Alliance NewsIN BRIEF: Parity eyes continued momentum in year ahead LSE:PTY Parity Group Plc
15/06/2023 07:00 UK Regulatory (RNS & others) Parity Group PLC AGM Statement LSE:PTY Parity Group Plc

"Parity Group plc (AIM: PTY), the data and technology-focussed recruitment and professional services company, announces that at the Company's Annual General Meeting ("AGM") being held at 12 p.m. today, Mark Braund, the Company's Executive Chairman, will make the following statement:

"In its Annual Report and Accounts for the year ended 31 December 2022, the Company highlighted three areas of focus for investment in 2023 to support future growth.

In the public sector, the Company has been successful in opening up new opportunities with existing frameworks and adding new frameworks that further broaden the potential client base.

Engagements with new clients in the private sector have the potential to develop into material sources of income and have already seen the Company working on a number of contract assignments for these clients.

Having set a target to develop our permanent recruitment capability further in 2023, the uncertainty in the economy has made it more challenging to build on the achievements from the prior year. Despite these challenges, the Company continues to believe that permanent recruitment will be a future area of growth for the business.

The Company expects to continue to build momentum, and with the groundwork laid in the first half of 2023, continue to grow our pipeline of opportunities with existing and new customers. The Board remains committed to returning the business to growth." ..."




That looks to me like a pretty positive update; in summary:-

• Public sector work (2022 revenue £22.6M.) is doing well.

• Private sector work (2022 revenue £18M.) is doing well.

• Permanent recruitment (2022 revenue 0) is not doing as well as the above two.


But the third area is a new venture that is more for the future than the present, and is more reliant on economic recovery:-

16/05/2023 07:00 UK Regulatory (RNS & others) Parity Group PLC Final Results LSE:PTY Parity Group Plc
" ... We established in 2022 a small permanent recruitment team with a mix of experienced permanent recruiters and graduates from our academy training programme. The team has started to build momentum and we are focusing business development resource to further develop the pipeline and conversion to revenue in 2023. ..."



The company looks relatively well-funded to me, and at just 3.5p, market cap. £3.61M. (103,075,633 shares in issue) looks hugely undervalued.

Until the middle of June, its all-time closing low was 4.5p, but this week it closed at 3.25p for one day, before recovering slightly.

I would think that at this level it could attract the interest of a predator, and could easily get taken over for 10p/share or more.


The recent takeover of ECSC shows the huge premium that can be required to acquire a quality company like this from a depressed s.p.:-

31/03/2023 11:55 UK Regulatory (RNS & others) Daisy Corporate Services Trading Ld Recommended Cash Acquisition LSE:ECSC Ecsc Group Plc
" ... The Cash Consideration represents a premium of approximately:
o 170.1 per cent. to the closing price of 20.0 pence per ECSC Share on the Last Practicable Date;
o 138.0 per cent. to the volume weighted average price per ECSC Share for the three month period ended on the Last Practicable Date; and
o 46.0 per cent. to the volume weighted average price per ECSC Share for the twelve month period ended on the Last Practicable Date. ..."

[diku] 30/6/2023 21:19

Well it has survived for over 22 years since boom and bust of Y2000...just plodding along...think it is only listed for PR purposes...

[its the oxman] 30/6/2023 21:08

How long can this co survive? And does it deserve to given the track record.

[owenski] 27/5/2023 08:19

It's always been recovering.

Bargepole

[diku] 27/5/2023 07:36

Recovery story since Y2000???...

[chrisdgb] 16/5/2023 07:12

Finals out, look worse with late payment and goodwill write off but an optimist could sniff a recovery story here...????

[tomzimerman] 12/5/2023 06:07

This is good stuff, I'm learning lots ta!

[chrisdgb] 11/5/2023 07:12

Still no results.....................?

[+eysenck] 27/4/2023 16:19

The Final Results were published at about this time last year. I can't see any notification of dates in any previous RNS.

[diku] 27/4/2023 07:08

Under statement...

[chrisdgb] 24/4/2023 08:55

Depressing.......

[owenski] 13/4/2023 10:52

Wasn't this another company that Gerald Brandon was involved with?

[insideryou] 13/4/2023 10:35

Criminal what the board are doing here. Why Ron banks when you can do it legally without the risk of incarceration

[diku] 13/4/2023 07:59

As said before this compnay only listed for PR ploy to win contracts...

[chrisdgb] 13/4/2023 07:11

Results soon, directors need to make a statement of intent for the market as we drop below 5p........

[onjohn] 29/3/2023 12:41

Won’t surprise to see it go bust

Looks rudderless

[dusseldorf] 29/3/2023 12:17

With a 90% confidence level I'd suggest these guys will eventually pull their AIM listing and go private hence drop.

[diku] 28/3/2023 14:47

Post 6989...what is the purpose of being listed company...if hardly any shares get traded...maybe just to win contracts...a PR ploy?...

[diku] 27/3/2023 21:55

Think buying shares in this company is like supporting insiders life style...

[+eysenck] 27/3/2023 14:21

Down on an up day in general. Zero volume. Says it all really.

[diku] 07/3/2023 21:17

Sell the company...