Science Share Discussion Threads

[johndoe23] 07/2/2023 19:19

SAG is so under the radar it is at the bottom of the sea!

[life of crime] 07/2/2023 17:39

Good to see the slimming down of TPG continues with the sale of another non-core asset, via Westek. They only got £800K but I assume the main objective was to reduce the firm down to the parts that SAG feel have the real potential.

Obviously Westek did not fit that bill and it would have been a distraction, so best to let it go. At least most of the employees should keep their jobs. It was encouraging that the last update indicated SAG believed TPG was going to be net cash generative this year and any monies raised from disposals only helps.

It is good to see SAG back to £4, so onwards and upwards!

[johndoe23] 31/1/2023 12:30

Cannacord reducing

[johndoe23] 31/1/2023 12:21

Increased buying here past couple of days

[johndoe23] 20/1/2023 10:47

In a very tight range, wonder what might move this? Might have to be an "ahead of"

[johndoe23] 21/12/2022 19:30

Agree with pretty much all you say!

[life of crime] 21/12/2022 15:45

It has been a couple of months since I last checked on SAG and I see a lot has happened!

The long expected takeover of TPG has taken place at a good price, much like FST. If they can have the same success this time around as then it will look like a steal. Their method seems to work, i.e. buy a large stake, really get to know the business then move in.

The update was encouraging and it is no surprise the consumer facing parts of the firm, e.g. FST, are impacted by the slowdown but the rest of the business looks strong. It is still one to hold for the longer term and I think they will be the target of a takeover themselves in the future.

Enjoy what's left of the Winter Solstice. It can only get brighter from here, literally and metaphorically!

[secretsqu] 17/12/2022 20:13

You're still right Arthur after 145 days, it's still on that slow burn and still in the wrong direction. But hey ho, lots of shares are.

[johndoe23] 15/12/2022 20:03

Yes, usually when SAG announces positive news it takes the market a week or two before there is any volume or movement. Happy holding

[truffle] 15/12/2022 13:19

The free float is still relatively small as far as I recall. If an investor wants to build a position he has to be patient and/or pay up.

[thebeast1] 15/12/2022 12:50

weird that an ahead of expectation update is not bringing any volume at all to the stock or any significant movement in share price

[truffle] 15/12/2022 11:48

A very encouraging update with a strong cash position.

Allowing for all the problems with TP Group over the past year or so the final comment comes as no surprise and is also good news - earnings enhancing in 2023

''Since the TPG acquisition is funded through existing cash resources (with minimal shareholder dilution), if completed as now expected, the Board anticipates that the acquisition will be earnings enhancing in 2023''

[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 09:20

Should be a trading update imminent

[truffle] 28/9/2022 08:37

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 20:56

Would have thought thr strong dollar would help matters here