Shearwater Share Discussion Threads

[nw99] 28/8/2018 07:40

"We have made a great start to the new financial year, and look forward to driving further operational performance through our portfolio companies with the upside of making further acquisitions in line with our strategy."This new aquisition is another great buy top management with Previous experience really is impressive .

[opodio] 28/8/2018 06:46

£50m of hot air in the share price. Equity presently has no value

[carolyems] 28/8/2018 05:04

I am new to share dealing, but have bought quite a few shares in Shearwater as a investment for my grand children, Can anyone tell me what normally happens now to the shares, or when they willcame back

[cheekyfella] 23/8/2018 12:25

Excellent summary & worth adding that there will likely be another very interesting acquisition Q3 / early Q4. Brookcourt is this year's game-changer though. The next addition(s) will be small but very complementary proposition-led tech companies capable of adding value to the bottom line immediately.First class company.First class management.First class prospects in one of the hottest market sectors around. This week it was Superdrug announcing their digital estate had been severely compromised, who's going to be next. It's bad news for Super drug and their customers but good news for SWG as it underlines the worth of the solutions they provide.

[nw99] 23/8/2018 10:29

Brilliant post and agreed have to be in this to win it going to be a big winner and make shareholders a lot of money

[watcher13] 23/8/2018 09:49

3p looks a bit on the low side. Somewhere in the range 3.5-4p would be my guess. Interesting to crunch a few numbers. Assuming they raise £27.5m on the placing plus £1m open offer and £7.35m consideration shares, that's £35.85m of new shares. At 4p that would be about 900 million added to the 1000 million already issued. Based on the info we have on Brookcourt and Shearwater's current trading and building in a bit for growth over the next 6 months I reckon you might see group revenues of £35million (+/- 10%) and Ebitda of £5-6 million. I will leave you guys and girls to put your own multiples on those figures. A racy 'Fintech' type multiple of revenue could see the share price soar or a more mundane 15-20x EBitda would see us in the 5-6p range waiting on further growth and the next deal -= all imho of course

[mcasson13] 22/8/2018 16:57

How do you know it is 3p?

[jammytass] 22/8/2018 05:34

3 p placing

[nw99] 21/8/2018 08:41

Yes indeed

[casabella2] 21/8/2018 08:37

Cheers ,so we will have to wait until after a vote on the deal at a date yet to be announced.

[nw99] 21/8/2018 08:03

On London's junior market, Shearwater Group, which buys up cyber-security businesses which it thinks it can improve, suspended trading after announcing a £30.3m deal.It was cashing out for Brookcourt, an IT business which boasts a number of FTSE 100 and 250 clients, in what would be a 'transformational' deal. Shearwater thinks Brookcourt will increase its business capabilities, broaden its client base and act as a strong platform which can hoover up smaller rivals to become an industry leader.But the deal will count as a reverse takeover, since Shearwater is buying a business that is bigger than itself, which means shares must now be suspended.If Shearwater's shareholders approve the deal, it will then be re-admitted to the market as the enlarged group.

[casabella2] 21/8/2018 07:30

Morning.Anybody any idea as to how long we are likely to be suspended for.

[peantern1] 19/8/2018 09:35

Article in Daily Mail yesterday worth reading and hopefully get more investors interested.

[loadsadosh2] 18/8/2018 14:52

2LB
Acquiring a consultancy business such as Brookcourt is,IMO,a bit of a master-stroke for Shearwater. As SWG brings in new products what better way to market them than through your own in-house consultants?

Focussing too much on numbers - MCAP and EBITDA etc, doesn't explain why the year high for SWG is 6.25p for example and doesn't allow for potential performance.
There will be value to SWG that doesn't show up in the Brookcourt balance sheet.

With regard to the considerable competition - the simple answer is to be better than the competition - or snap them up!

So,I, for one am in for the long term.

[nw99] 18/8/2018 11:12

My pleasure

[montynj] 18/8/2018 10:24

Thanks Paul

[nw99] 18/8/2018 09:36

Approaching second year anniversary of the new Shearwater team being appointed to build a group of businesses protecting corporate data. It has made a few acquisitions, but this is the largest to date. Will quadruple revenues, cash flow positive etc

[2lb] 17/8/2018 16:39

I agree it is earnings enhancing.

Point is , there is currently a MASSIVE gulf between true value and MCAP based primarily on future potential and hope , and that gulf was always there to be filled with quality acquisitions. I would maintain that Brookcourt, at £30m, does not justify that gulf and so all that will happen is that the group will grow into its current MCAP.

That's why I expect the placing price to start with a 3 and the share price to hold that level for some time after.

It's still a great sector to focus on but they are a small player and really have to earn their stripes. As they have gone down the AIM shell route it's all about EBITDA moving forwards and focussing on low EBITDA margin consulting business with heavy competition isn't going to create material value.

[casabella2] 17/8/2018 15:43

Yes i agree with that. I think it was dropped from 6p to accommadate this takeover at this level.

[nw99] 17/8/2018 15:27

Very unlikely to go lower as this is earnings enhancing

[2lb] 17/8/2018 15:09

Doubt it - that would be such a fundamental error it would eradicate credibility for years to come.

Brookcourt has been up for sale for quite some time and so with their CF advisers seeing £ signs there will have been pressure to announce once a deal had been agreed, and part of the vendor CF job is to check that funding is secured.

With a suspended MCAP of £44m based on a loss making group then this makes them cash / EBITDA positive but likely less than £1m so that's still a forward PE of 44x before you even factor in the fund raising, share dilution etc.

I'd expect something around the 3p mark as the raise price then it will have a lot of work to do to climb from there

[cheekyfella] 17/8/2018 10:27

Spot on Husbod - SWG oozes best in class quality from every angle & digital resilience is right in the cross hairs of where people should be aiming if they want to invest in the next big trend.