Science Share Discussion Threads

[johndoe23] 15/12/2022 07:24

Pleasing update

[johndoe23] 02/12/2022 11:01

Looking weak, can't think why?!

[johndoe23] 17/11/2022 18:22

It's a risky acquisition, but if they can weave their magic a la frontier, the future is brighter

[truffle] 15/11/2022 10:49

I agree with your comments which is essentially what I was saying in my previous post on 31st October.

SAG have now decided they know enough to justify a full takeover and I suspect from now on we will see a gradually more positive scenario developing with TPG.

[illiswilgig] 15/11/2022 09:11

Interesting. If I remember right SAG followed a similar course with Frontier, making an offer that was refused and then coming back with a lower offer? Took a couple of years to turn if around.

At the moment it doesn't look like the results will be as good with TPG but who knows?

They are paying £12.5 for the 72% they don't own. Perhaps a tad less if they keep picling up shares in the market. Have already paid £12.8m. Total just over £25m.

In the recent H1 results the TPG services consultancy business had 14.3m revenue, £1.5m (adj) operating profit and grew at 12%. Discounting growth and doubling for the FY gives £28.6m and £3m (adj) annual operating profit.

Put the other way around they are paying 8.4x (adj) op profit for the growing consultancy business.

Looks like a good deal for access to markets - aviation safety and defence - that they don't currently have?

And places zero value on Westek and Maritime. If they do succeed in turning around Maritime in a couple of years time it has the potential to make a good deal look very cheap indeed with nothing to lose in the meantime?

Looks a good outcome for SAG?

cheers

[secretsqu] 14/11/2022 15:01

Yes your words are indeed vindicated, it's slow burning, but the wrong way.

[truffle] 31/10/2022 12:23

I think SAG will benefit.

They have effectively had the opportunity of a second look at TPG over the past year and in spite of getting it wrong first time around I think they have decided there is still good value in the remaining businesses.

The wording about the status of the Maritime contracts is typically cautious but reading between the lines I expect this side of the business has reached a nadir and might improve somewhat from now on.

They wouldn't have agreed the takeover unless they were confident the worst was over.

IMHO

[varies] 31/10/2022 11:52

It is difficult for us as outsiders to see much value left in TPG after the losses on its maritime division contracts but Mr Radcliffe and his colleagues are clever chaps with the time and money to sort these out.
No wonder that TPG's directors were so reluctant a year ago to open their books !
Whether TPG will ever prove to be worth the £25 million paid is another matter.

[rjohna] 31/10/2022 11:23

SAG overpaid earlier TPG "investment" (at 6.5p) and I seem to remember due diligence was a bit murky. I don't think this will be as easy as Frontier.

[kaizenkid] 31/10/2022 11:14

Hopefully SAG are about to create plenty of value from the TP Group deal in the same way they did the Frontier acquisition.

[johndoe23] 18/10/2022 08:20

Should be a trading update imminent

[truffle] 28/9/2022 07:37

Agreed.
It has always been my understanding that the company benefits from a strong dollar through its dollar earnings. This may become apparent in due course if there is a trading update at some stage

[johndoe23] 26/9/2022 19:56

Would have thought thr strong dollar would help matters here

[life of crime] 19/8/2022 16:45

Your words have been vindicated, Albert. Nice tick up from the lows of February and a very good update in July.

This is a well run business and any clouds on the horizon are beyond their control, e.g. a possible global recession. One to tuck away for the longer-term and enjoy the dividends. Good luck to fellow holders.

[albert arthur] 25/7/2022 23:16

Not really, just a slow burner..

[secretsqu] 25/7/2022 18:07

The market thought otherwise.

[albert arthur] 25/7/2022 06:37

Nice results.

[albert arthur] 23/7/2022 12:40

Not sure if anyone noticed this:Last update: The Board is closely monitoring the impact of materials, energy and wage inflation but is benefitting from a broadly offsetting effect due to the strengthening of the US Dollar relative to Sterling. You can still win in this marketThe Group has had a good start to the year, with performance through April slightly ahead of the Board's expectations. It is therefore anticipated that the Group will report adjusted operating profit ("AOP") for the first half of 2022 around 20% higher than in the same YOY #SAGhttps://twitter.com/albert__arthur/status/1550822274781020160?s=21&t=PEdyhYbsJlX_ZQXAOP7Uow

[albert arthur] 22/7/2022 07:42

Monday, results:SAG results Monday... gross cash 34% up, net funds up 70%, EPS51% operating profit up 48%Should have a good day.

[life of crime] 14/7/2022 12:10

TPG have confirmed the sale of Sapienza has been completed. They got £2M with half going towards paying down debt and the rest staying within the business. It's not a lot of money but every little helps.

I would not be surprised to see SAG make a bid for TPG once the restructuring is completed and I take the point about the drop in TPG's share price, which makes a bid more attractive to SAG.

Happy Bastielle Day to our French cousins!

[johndoe23] 11/7/2022 12:51

Trading update due on Friday?

[rolling ronnie] 11/7/2022 08:54

"I wonder if they will bid for TPG once destroying the share price is complete. Enjoy the long bank holiday weekend to all."

FTFY

[life of crime] 03/6/2022 15:27

It looks like the SAG executives on the TPG board are making their influence felt, following through on their intention to slim down the business:

a-consulting-ltd

I wonder if they will bid for TPG once the restructuring is completed. Enjoy the long bank holiday weekend to all.

[life of crime] 22/5/2022 16:58

Agreed, the results for April are encouraging, given the backdrop of the Ukraine war and surging inflation all happening In the weeks leading up to then.

My only concern is that Frontier's earning may dip in the second half of this year, as consumers cut back on discretionary spending, i.e. DAB radios, to cover the essentials. That aside, I think the share price has held up well and but for the emerging economic woes and the continuing war, I think SAG would have been £6+ by the year's end, but that looks less likely now.

This is still one to hold for the long-term, though, IMO.

[johndoe23] 20/5/2022 09:54

Very pleasing trading update this week. Slightly disappointing share price reaction, but this is the current climate!Someone has picked up 140k worth of shares this morning