Porta Communications Share Discussion Threads

[guildedge] 30/4/2018 18:38

Well the 5.5m loss was higher than I expected. We knew it was at least 2m. We knew they had been downsizing Newgate UK.

I was right about 1-2m cost savings. They expect 1.9m cost savings once plans are fully done. Did you notice 500-600k was spent on staff redundancy? (Section 3)

Amorisation and depreciation 2.3M
Restructure 0.631m
Impairments 0.511m.
H1 included 0.31m for Clydale.
Plus full cost of reduced loans now yet included. They also reduced debt in August by 2-3m. Plus reduced loan note costs.
Plus increased ownership of Redleaf. Worth 90k of their profit if it was from start of year.

The loss before tax was 2m lower than last year. If you exclude one offs they would of made a profit before tax. I work out about 3.7m one off costs there. With further cost savings to come.

Note Porta spent nearly 4m more this year on staff. Was this also to do with staff leaving or being sacked? Unclear.

Chatted to a few people about this. The view of my business friend is he think this share could pick up now. He was talking 4-5p.

Oh I think we should get an RNS tomorrow for a director buy. 2 large trades today at 20/30k.

Unclear why they marked down the share today. Nearly 2m buys here. Very few sells.

A friend tried to buy shares today on HL. He could only buy 5k volume of stock. £150 or so? Seems to be a shortage of stock and it would appear directors/Morton/HH are buying up the stock here.

Redleaf/Publicasity/2112 and most of the Newgate Asian businesses did very well in 2017. 1.4M profit in Australia. 580k in Redleaf. Not looked for the regional breakdown.

Debt is about 8.4m or so. So slightly higher.

Overall I think things are improving here. I expect Sp to rise to 4-5p short term. Maybe more long term. As share price gets higher they will start buying larger chunks of Aus.

[ny boy] 30/4/2018 15:16

I added a few more, I am not expecting fast returns, just a steady rise in the share price for the rest of the year. Just another one to tuck away, did the same recently for (INFA)

Looking forward to further news flow from the Company, that all is progressing well.

[speedsgh] 30/4/2018 14:08

Re UK operations
... The Group's other UK businesses [other than Redleaf Communications & 2112] are not yet producing satisfactory levels of financial performance and decisions have been taken and implemented to reduce the cost base of the businesses based at the Group's UK head office in 50 Basinghall Street by approximately £1.9m on an ongoing annual basis at current activity levels. The rebranding of PPS Group as Newgate Engage to offer property and planning expertise within the UK took place during the year and is already producing improved financial performance. In addition, the Group's CFO has led a programme to overhaul and improve the Group's financial and reporting systems so that reporting of key performance indicators and financial information is consistently made across the entire Group.

Impairments
On 1 January 2017, the trade and assets of 13 Communications Limited were transferred at book value to Newgate Communications Limited ("Newgate UK"). This trade within Newgate UK then ceased as at 31 December 2017 and the relevant employees and clients moved to The Playbook Consulting Limited. The Goodwill of £349,999 relating to 13 Communications Limited has been impaired to nil.

The Goodwill relating to Cauldron Consulting Limited ("Cauldron") of £138,228 has been fully impaired in the year. All original staff and clients, which were transferred from Cauldron to Newgate UK in 2014, have now left and no further revenues from this trade are expected.

Outlook
The first half of 2018 will be a period of further consolidation of the cost base and operating structures of the UK businesses and this will adversely affect revenue and profits during that period. The Board is confident that the Group is now better positioned as a result of actions taken in 2017 which began to address the Group's weakened balance sheet and has identified an appropriate senior management structure at Board level to take the Group forward. The Group is now led by experienced and proven leaders who are actively involved with their senior colleagues in the development of an operational strategy to deliver long term, profitable growth...

"One day, Rodders; one day..."

[albie two shoes] 30/4/2018 13:41

I bought here last week before the pop up and the results today, and have added a few more today.

Having been a holder way way back, the results today show that the company is bouncing back. The portfolio of companies are an exiting mix and I'm a holder for a brighter future.

A2S

[guildedge] 28/4/2018 20:00

I think that is wrong. Look at the original deal. Plus wait for the accounts. It may show both their wages in it. Takeover/merger is always possible. I think many funds could be interested here if the two new CEO can turn this around.

Porta is far from down and out. Revenue has been rising for last 3 years. profits abroad have soared. DYOR.

[oldie52] 27/4/2018 19:58

I do hope you are right Guildedge. However for HH and Morton to sell out they would have to find a buyer and I don't think there is a long queue of institutions keen to pick up their stock.
I don't think EK will be cheaper than Steffan and expect she wouldn't have taken the job for anything less than loads of cash. She lost out big time on the Porta paper she took when she sold Redleaf so will want to recoup her losses. Perhaps a question for the AGM

[geraldus] 27/4/2018 19:48

Sorry, wrong thread.

[geraldus] 27/4/2018 19:46

PR Week reports Foley as happy with recent events and the right team is now in place.All that and SEC waiting in the wings.Could be a good turnaround at last.

[guildedge] 27/4/2018 19:01

They have 24 senior staff left. More than enough. Plus they have Redleaf staff too. Their non senior staff peaked about 42-45. Down to 35 according to their website. Guessing each of them was on 20-30k. Senior staff maybe 40-100k+. Some big numbers here. Redleaf rent too save. Reduced loan costs. Plus an increased share in Redleaf and Aus. These numbers will all add up. C;ydebank loan facility too at circa 4%.

If they can get share to 5-6p+ they may opt to merge with Sec? or look to be taken over. I could see them issuing shares for remaining share of Newgate Aus if a fund came forward. All adds to the bottom line.

If things were really bad HH and Moton would of sold out by now. They must see something here. Anyway happy to be back above 3p.

[geraldus] 27/4/2018 18:57

Phoenix rising or a dead cat bouncing.Must admit I had nearly given up on this after investing on the back of DW's track record.Results due Monday? should be interesting. GLA.

[qs99] 27/4/2018 18:29

Interesting and cost savings with senior hires may provide a boost to bottom line, let's see. But can they keep the top line going without the senior people? Let's see. But momentum seems to be with you GUildedge on this one so don't rule out a continued rise next week....DYOR and good weekend none the less. Maybe every do has its day!

[guildedge] 27/4/2018 16:59

I get that some are still negative about this share. It has been a dog of a share for many reasons. I always thought this valuation level below 3p was crazy given revenue was still rising and huge growth in Asia.

It's clear they have made wholesale cutbacks to the UK operation including many of DW's hires. Anyone not paying their wage seems to be out the door. I count 6-8 senior hires have left with 10 or so other Newgate staff too. Steffan was on 300k. Hopefully saving 1-2m. Steffan for a firm struggling to break even was paid way too much.

Overall I think the 2 CEO are the best people for the job. Emma Kane has done a great job with Redleaf. Same for Bryan Tyson in Australia. Both these businesses have grown hugely and are highly profitable. If this can be turned round to a highly profitable business then things could really take off in terms of a takeover. Both SEC and the directors have all bought in above 3.5p or so.

Up 61% today. I wasn't far off with my 3-4p prediction. I was laughed at for this.

I think results will show a loss but will be lined with promise of a more leaner Newagate to come. Clearly parts of the business have great traction. Debt, the UK HQ costs and a overstaffed UK office have been the main issues here.

Not too worried about the lateness of the results. They seem to gradually be reversing this.

Seller is still in background here but you would expect some to sell at these prices. See what Monday brings. I don't think it will rise too quickly to 5p on Monday.

Could see an RNS from Morton on Monday if he is one of the buyers here. I think so. Along with Hales Hargreaves. I doubt EK will buy any stock. When Redleaf takeover is complete she will have 8-9m more shares. No incentive to buy more. maybe other directors will?

[qs99] 27/4/2018 16:18

Maybe 5p isn't a silly first target at this rate then? DYOR

[fillipe] 27/4/2018 14:55

Hi QS99.

A bit like HNR....also one in waiting.

f

[qs99] 27/4/2018 14:43

Fillipe that was my point, if no volume and up nearly 50%, what happens if a few decent size buyers return? DYOR

[fillipe] 27/4/2018 14:42

Wow!....This blast from the past,(which I still hold from much higher then!) - it's certainly shot up today and all that rise on really small. How much more of an uptick if some truly meaty buyers arrive....

f

[oldie52] 27/4/2018 14:29

I have been trying to think of an example of Joint CEO's proving to be a good idea.
It only makes sense if they are planning to split the business

[qs99] 27/4/2018 14:23

well, the interesting thing is that the MMs have marked it up with zippo volume no? Why do that?

[speedsgh] 27/4/2018 13:58

With just 7 trades so far today, I'm not convinced that more than a handful of people are even aware that PTCM exists. And if they do, they probably decided a long time ago that the proverbial barge pole should be employed when it comes to Porta. Suspect it will take more than a change at the top (which has happened previously with no resulting change in fortunes) to convince people otherwise. Aimho

[qs99] 27/4/2018 13:29

Blimey, market likes it IMO...DYOR

[qs99] 27/4/2018 13:08

So with two sensible operators on board, can the share price "start again" and as a start, retrace to previous 4-6p levels before future strategy / finances are set by the new team? Let's see...DYOR

[qs99] 27/4/2018 13:03

Yup, kitchen sink history, but a few buyers nudging this higher, wonder if she will use the £s on sale of shares to buy a shed load more at a much cheaper price?

[markie7] 27/4/2018 12:00

"moved the results forward for a reason"

yes, the reason being that six months was ridiculous, and 3 months is the norm.

CEO being removed prior to results being released isn't usually a good sign.