Porta Communications Share Discussion Threads

[guildedge] 30/6/2016 15:38

Very positive AGM in my view. Board were very open and honest and they seem very aware of most issues affecting the firm. Including refinancing the debt long term. Directors are not locked out here. Focusing on organic growth. They state new hires are bringing in new business.

I don't think the share will reach 3p as the directors would likely pile in. Even at this price it was suggested firm was undervalued. They are aware there is a seller/sellers. They don't know who they are due to way they are selling the stock through a nominee name.

More news to follow in next week and following months. I won't go into the small details here.

SP has recovered a bit here today.

[pelliot] 30/6/2016 08:34

anyone know how to change the title of this bb thread, it doesn't seem too apt?

[markie7] 28/6/2016 14:13

size + debt + earn outs + exposure to financial PR + track record = going to get a rough ride in these markets.

[dbnout76] 27/6/2016 13:08

I think we could see 3p here soon

[dbnout76] 27/6/2016 13:07

It's going to go lower than this I'm sure.

[jefftwo] 27/6/2016 11:14

Is now the time to top up/buy?

[guildedge] 09/6/2016 17:04

Oh the investors page has now been updated. clearly nothing to read from that.

@ QS - Guess we will find out if they ever announce any acquisitions. My guess is bank or some form of merger.

[kimboy2] 08/6/2016 18:47

Newgate Australia didn't cost anything.

[qs99] 08/6/2016 17:51

how do they fund deals with share price at 5.5p below nominal value and debt and earn-outs still high and still running an operating loss? Just interested. Which bank has lent in past? Mainly Chairman funding debt at v. high coupon

And until a director buys a six figure sum, the rest is white noise. IMO

[guildedge] 08/6/2016 17:18

@ markie - Maybe they will wait till after AGM then try for more acquisitions. I am certain something is being planned due to the comments by DW and Steffan in their interviews. Making something happen is another matters and I agree they face some hurdles.

@ David - Of course they care about investors. This is a start up business that has hit a few issues with office closure and negative market sentiment. Lots of people hoping for a get rich quick scheme. (It never happens.) Reality is 13p may be a long way off here. The share give away may never happen. You are more upset that the share has dropped 50-60%. That is frustrating for all investors.

We'll see about the investors page. All guess work on my part. Probably slow updating it.

[davidosh] 08/6/2016 10:10

Guildedge you said...It's telling that the porta's investors page has not been updated yet either.

maybe they just dont really care about investors which is poor for a communications company and the share scheme kicks in at 13p which is exactly where they raised all the money over two years ago so shares will be given away just by getting the valuation of the company back to the cash level of the funding !1

A share giveaway should have been at least 40% higher than that level and not for getting that three years on would actually be a five year return on that 13p cash injection so that target is standstill after five years whilst they pick up £333k salaries.....incredible !!

[markie7] 07/6/2016 18:31

Of course they aren't locked out, otherwise BM wouldn't have been able to buy either. The BM purchase shows you acquisitions are NOT imminent. Which is obvious anyway as they have too much debt and are loss making.

[guildedge] 07/6/2016 17:55

You can hardly say the directors are not buying?? They have all bought in within last 8or so months. BM has bought in within the month. They have been locked out for most of the year up to May. Gavin and Steffan have barely been around long enough.

It's telling that the porta's investors page has not been updated yet either. They like to time their buys. It's also unclear if they are locked out now trying for more acquistions. My guess is they may wait for the AGM as a number of the resolutions could affect acquistions. So we could see more buys after the AGM statement. PR is all about timing.

As for the share scheme, from what I read, it only pays out in 3 years time if the share is above 13p. They won't get a single share till then. At 5.5p they have a lot of work to do.

[pugil] 06/6/2016 12:35

I don't think it's about confidence going forward. The Directors have just been awarded a huge share options incentive deal. They have no need to buy shares so why would they. This can't keep relying on Director buys to keep it afloat. We need to see some performance from the UK business and associated profits. It needs institutional investor buying in if this share is ever going to reach its potential.

[karm] 06/6/2016 11:31

Executive Directors have No confidence going forward.

[oldie52] 06/6/2016 11:24

Seems the only director interested in buying shares is Bob Morton. Why don't the Executive Directors use some of their inflated pay? Perhaps they don't have the same faith in the business as Bob?

[markie7] 04/6/2016 12:47

D&A is nothing to do with office closures! It is depreciation and amortisation and represents the spreading of previous capital expenditure over a longer period of time. No reason really why it should be ignored or added back. The sector concentrates on headline operating profit, which is AFTER D&A. Ins comparable basis therefore, PTCM is making a substantial headline operating loss.

[guildedge] 04/6/2016 12:22

Well you hold CLL so that is one of the reasons you post here. Although that has not hit £1 yet. Although the share price there is much more stable. The forum for CLL is not very active. Maybe that is a good sign? Looks like they have resolved their VAT.

The D and A is due to office closures. So that is why I don't take it so seriously. We know TTMV and the European offices have closed. Part of reason we are at 5.5p. I still think the price is undervalued for a higher growth firm. Look at the Hong Kong business making 450k profit as a start up. Autralia 1M. Redleaf nearly 450k. You only have to repeat that in the UK and you have a very profitable business. We know eventually the loans will be refinanced as the firm grows.

I believe PTCM has been over sold by frustrated investors. Including Paul Scott. I expect new backers to appear in next few months. Someone is buying up the sold stock here and doing it in a way where they get the cheapest price possible. Eventually they will trigger the 3% mark and be forced to reveal their hand. You buy from scared investors and sell to greedy ones!!

Unfortunately Porta over the years has done so many share issues we have a lot of smaller funds/inst involved here. Many who may just want to move on. That being said Ruffers and HH have stopped selling now. Maybe they have seen something others have missed? Check the latest VCT accounts. None of that has been sold.

September should be the first real clean figures as it will include full year of all companies since acquisition. No hidden revenue from PPS, Publicasity and Redleaf. Hopefully no additional costs from office closures in 2015. A chance to see how the firm is really doing. Also how the

I think Porta Communications is here to stay. I think as the bank start to lend them money the business will grow in revenue quickly. The next step for me is to grow the business through larger acquisitions/mergers. More growth in Australia, Asia, China, acquisitions in Europe and America. Build up a large financial PR firm and then merge with a firm with strengths in other areas. Looking at the accounts they are gearing up for this.

One of the issues from the annual report that Porta are now looking to fix is taking back control of the Asian business including Australia. Plus Redleaf too. Getting a higher stake in these reduces the annual 900k+ dividend to non controlling elements. Reading from the annual report it looks like this may involve a share issues on both. Pay 100-200k now may save money on dividends later. Taking control of the 3 main profitable businesses making 2m a year adds 1M to the bottom line. In Redleaf's case taking 15% back will remove 70k of dividends a year. Also 80-90k a year from Newgate pty. DYOR.

I am still positive they will turn things around here. If we can break even in September that will be a start. The new management should start to bring in more business too. Bigger clients like Blu and BNY mellon can have a huge impact.

[qs99] 03/6/2016 19:15

mate you miss the point. Turnover is irrelevant it is gross profit that counts in these types of businesses so £27m is the better figure to look at....and underlying EBITDA continually being bandied around misses the point that they don't ever have "clean" figures. Indeed Warren Buffet used to say that even depreciation should be seen as a proper cost not added back as you have used company cash to buy that asset.....anyway I digress....directors pay has gone up massively yet share price has reflected the destruction of value in the group IMO...market cap is c.£15m plus debt plus earn-outs, yet "underlying" EBITDA is still v. low and it is still losing money on a net basis....unless it can generate around £3m+ of clean no add backs EBITDA why should it have a £15m market cap and EV much higher? DYOR....not sure why I am posting here I don't have a holding!

[guildedge] 03/6/2016 17:27

To be fair QS that was on the original report. Mostly due to D and A. 2.7m and exceptionals 1.5M. Not forgetting the 0.9M to non controlling elelments. The headline figure here is very misleading. Plus other confusing figures here and there. You will need to wait till September for clean results.

Even so for a firm turning over 34M it's current market cap is very under valued.

As for the FD pay. He joined Porta in July 2013. So that explains why he was only paid £125k that year. The jump from 250k-333k does need explaining. From his desciption on the website it sounds like his job covers more than just accounting.

'Gene started his career as a Certified Public Accountant in the U.S. at Touche Ross & Co., switching to marketing services when he joined Omnicom-owned Ketchum, eventually becoming International Finance Director responsible for growing its international network through acquisitions. Ten years on saw Gene become worldwide CFO and COO of Gavin Anderson & Company to help drive forward the firm’s global development, culminating in the international merger of Gavin Anderson & Company with another firm. Gene left Gavin Anderson & Company three years later, becoming Porta’s Group Finance Director in July 2013.'

I need to have a delve through the report later. I will try to do so objectively. Not just because I want to try and find some good in the report.

We got no RNS for that 500k trade a week ago. I assumed Bob but no RNS. So someone is still buying shares here. 380k this week and 500k last week.

See what news we get at the AGM.

[davidosh] 03/6/2016 16:23

Is he the best FD on AIM ?? He has gone from £125k to £250k and now £333k per year.

He is using a very clear percentage calculator for the increases too lol

[qs99] 03/6/2016 15:36

wow that is outrageous.....IMO...so much for corporate governance from NEDs and rem. committee....also reading the accounts Asia-Pac makes £2m and UK loses £4.7m....finance costs were around £1.3m....so despite the big increase in revenues, only directors are the winners with their pay as business is still loss making and shares are around a 1/3rd of the placing price a few years ago....mad times

[markie7] 03/6/2016 14:33

£62k pension contributions each. up from last year. and the business didn't perform.

the risk section is interesting, including risks on financing availability. Worth reading to any bulls, if there are any left.

[oldie52] 03/6/2016 13:21

Report & Accounts on the website. I am delighted to see that the FD was the highest paid Director getting a package of £333K last year.
Anyone who can rush out results in a mere 5 months must be something special! Bet the employees (the fee earners) are delighted