Porta Communications Share Discussion Threads

[oldie52] 27/4/2018 10:34

CEO out and results still not published despite being promised late April. Expect a blood bath when they’re issued

[qs99] 27/4/2018 09:59

Well two new CEOs you can bet your bottom $ they will want some big incentivisation. Although if EK has sold all or most of her shares previously, then will she use that £ to invest at these very low levels? Let's see. Not a holder.

[kimboy2] 27/4/2018 09:47

Seems very good news to me. I wonder what will happen to their exceptionally greedy 'Incenitive Plan'



Just 2 years ago and the base price was 6.38p.

[speedsgh] 27/4/2018 08:24

Goodbye Steffan Williams. Not so much as a thank you!

Appointment of New Joint Chief Executive Officers -

Porta Communications Plc (AIM: PTCM), today announces the appointment of Emma Kane, Chief Executive of Redleaf Communications, and Brian Tyson, Managing Partner of Newgate Australia, as Joint Chief Executive Officers of Porta.

The appointments mark a significant strategic step for Porta aimed at creating a more integrated global operation. Since its establishment in 2011, Porta has created and acquired an impressive roster of individual agencies across the UK, Europe, Australia, Asia and the Middle East, together with strategic partnerships in Europe and North America. The Group is now committed to bringing together the best of what it does regionally, nationally and internationally, by leveraging the expertise from its individual businesses for the wider benefit of the Group...

... Steffan Williams, who was previously the Group's Chief Executive Officer, has left the Group with immediate effect and will cease to be a director of Porta on or before 5 May 2018...

[guildedge] 23/4/2018 16:57

See what results show. I have a feeling the directors may well buy in on the results. See what positive spin they can put on a loss. They have moved the results forward for a reason?

[oldie52] 23/4/2018 12:24

Yet another false dawn?
Appears more likely to drift back to 2p than rise to the dizzy heights of 4p

[guildedge] 13/4/2018 19:05

Sadly not. I am not suprised by the move. I had a feeling when this suddenly went above 2p something was happening. I never understood the share price going below 2p. I expect revenue to be 40-42 million this year. Up circa 5m on last year. Ebidta hit by closure of Summit and streamlining of Newgate Uk division. Moving of Redleaf into HQ is another cost saving more.

Next thing I want to see is Steffan actually buy some stock in 2 weeks time. I am looking for a 1-2m share buy from him. See what Monday brings. People like Morton are certainly not restricted from buying here. Same for Hales Hargreaves. Will also be interested to see their holdings in the results. Have to wait a few days after the RNS results for this.

RNS holding from Morton's group after the results maybe?

Could well be a 4m or so loss here with depreciation/ammorisation. I expect it to be mainly paper based. They lost 1.9m in H1. Debt is what I will be looking at. Below 7.5M?

[qs99] 13/4/2018 18:10

Wtf do I know then! Momentum appears to be with this IMO/DYOr and your 4p+ could be possible GE. Hope you topped up having called it

[guildedge] 13/4/2018 18:01

29% move for end of day. From a low point but in the right direction here.

[guildedge] 13/4/2018 12:41

Not sure about 4-5p. Have to wait and see what results show. We do know that nearly 50-60% of stock is now held by 3 investors. More selling pressure will appear when Asian/Redleaf businesses are given more shares. Nearly at 100% ownership of Redleaf. So all their 500-600k profit will soon go to Porta. I do hope they are finding more cost savings on the UK front.

[qs99] 13/4/2018 12:28

Well someone is buying otherwise we wouldn't be on the movers leader board, but it is from a very low point hence the big %, but hey, as I said momentum is with you GE so perhaps a retrace to the 4-5p mark is possible. GLA heading to weekend now.

[guildedge] 13/4/2018 11:22

That's like saying for every sell someone has bought the shares? What is your point? I always assumed there was an element of floating stock. We know someone has been selling stock. We know buyers in background are now picking up sold stock.

At present there is more demand for stock than those eager to sell at these prices. If directors plan to buy on the results this will put more demand on the share and shift price up. They were happy to pay close to 3.5p before.

[oldie52] 13/4/2018 10:40

You do know that for every buyer somebody has sold Guildedge?

[guildedge] 13/4/2018 09:50

The more likely option was always that the buyers let the seller depress share so they could mop up cheap shares afterwards. Notice the pattern of odd and rounded numbers here. I think this is 2 different buyers. Morton and HH? Probably get an RNS from Morton on the results. He is close to 25%.

We know the results should be more positive than last year albeit we know they are still writing down assets. If the results were that bad peope would not be buying in that volumes. Target of 3-3.5p for the results.

Not suprised at 14% move here given the near 1.3m worth of buys here over 4 days. Sooner or later the share price had to spike more than 5%. Where are all the sellers that Markie is talking about?

[qs99] 13/4/2018 09:04

Well to be fair to you Guildedge, despite my misgivings about value, the shares have bounced from their all time low. Whether they can get back to 3-4p before the results, all depends on whether people believe the next RNS will be more than positive, OR perhaps the new guys on board will want to take it private at a premium or something.....let's see...DYOR and GLA over and out

[guildedge] 12/4/2018 12:06

Another 200k bought today. Share up again.

I think the main seller has cleared their stock. There is not a huge queue of sellers. Management, morton and HHargreaves seem to be buying them out. I think the share will climb back to circa 3p before the results.

[kimboy2] 11/4/2018 20:23

We know what the numbers are because they are in the TS. IMV they are not terrible but just not pushing forward.

In reality many parts of the group are doing well, in particular Asia, but are being held back by Newgate UK.

There was a substantial director buy at nearly twice the present price 2 months ago.

PTCM needs to get into profit after all costs. I seem to remember there was one half about 4 years ago, but no progress since then.

[markie7] 11/4/2018 20:01

Yes the problem is the huge queue of sellers . Hence the chart. See what happens

[qs99] 11/4/2018 19:55

Only the next RNS/trading update/numbers will give us any view otherwise it is all guesswork. Many have said "seller cleared" all the way down from the top!

[guildedge] 11/4/2018 18:59

The fall in share price was clearly related to someone who had been clearing their holding. It's possible that has now been done. The large 1.2M trade was clearly a part of this. Could it be linked to the notification of HH new holding? Maybe not.

Few other possibilities here.
1. The results are terrible or below expectation and that is why share price has fallen. I don't think the likely seller would know the results. We know the Asian business is making a huge increase in profit now. Plus a new office in China. Porta said they had a strong second half. We know there will be costs relating to Summit and expansion of China, Aus and Leeds office.
2. The share price dropped to allow a stale investor to exit. The buyer who I expect is Hales Hargreaves was happy to let share price drop to reduce their average here. Been 3-4 reasonable sized buys in last 1-2 days. Can't tell if private or HH/someone else already involved here.
3. The directors wanted share price to drop so they could buy large volumes after the results. They'll want to buy in cheap if they have a turnaround story to tell. Why would John Foley buy 4-5M shares if things are going that badly? Makes no sense.
4. They are happy to see price drift so they can take firm private or SEC can buy out firm cheaply. Pay off debts and make money from selling off the firm. I doubt this as Hales Hargreaves would not buy 6.5M+ shares just for this to happen. share price was up last 2 days.

The results and financial state of Porta have not really got worse compared to last year. Revenue still rising 5-8% a year. SEC clearly see something in Porta to take a 20% stake last August. SEC have also just released a TU showing revenue increasing healthily. They talk of new clients which hopefully Porta is helping with? Let's see what happens here.

Also note lack of RNS about cash calls lately. We have only really had holding RNS lately.

[markie7] 06/4/2018 10:18

quite. no sensible basis for 4p. the results have clearly leaked.

[qs99] 06/4/2018 09:29

OK so on your calcs c.£6m net debt + market cap so say £14m EV for arguments sake. Need clean numbers to work out what EBITDA to put against it, but let's say they do manage £2.5m is just under 6 a fair reflection? If not why should it be double that as you suggest if it was going to be around 4p? DYOR etc.

[guildedge] 27/3/2018 23:34

Not sure that is right. They raised 3m to pay off debts. So I would expect debts of 7.5m. They have cash or cash equivalents of 1.7m too. Directors buying in at 3-4p here.

I don't think the company is struggling financially. They are making record profits in Asia. With 5-6 senior hires leaving in the UK that will cut wage bill hugely. it does appear they have been doing some cost cutting in London. They are still winning new contracts and picking up a few awards. Plus saving money on Redleaf rent too. Reduced loans too at 8%. Most losses posted have been paper ones.

Also note Hargreave Hale Venture has shown up on one site with a new 6.5M share holding. 1.42% of holdings. On top of 5.82% they already have. They are still buying it seems.

I do wonder why they are letting the share price drift here. HH if they are the current buyer may be picking up shares to slow fall and to reduce their average price. Likely they have arranged to buy out a stakeholder here? Pretty sure it is mostly one stakeholder selling here. I don't think the 630k trade was a PI. Likely a stakeholder from an acquired firm. These two parties have been trading shares for a while now.

See what tomorrow brings. I just wish they would do one big transaction here.

Company should be 3-4p here at least.

[qs99] 27/3/2018 12:15

£8m market cap, net debt at half year was c.£10.5m.....trading update.....suggested adjusted EBITDA to be £2.5m so an EV of £20m still with EV/EBITDA (albeit adjusted) 8.....DYOR but is that about right Markie?