Stenprop Share Discussion Threads

[martin44] 23/10/2009 13:59

longshanks - Agreed this is a good opportunity waiting to happen....

[longshanks] 23/10/2009 12:15

I don't see it a problem particularly.

Penta are converting debt to equity. They aren't being too greedy - could have demanded an even lower conversion price - and whilst they will end up owning a good portion of the business - I don't see this as a major issue either.

Ultimately they want a decent return on their investment - like anyone. And a good return in this case would be 10,15 x their capital outlay.

Given the business will be released from a substantial proportion of their debt, not only will the balance sheet support more corporate activity (earnings enhancing acquisitions) but the market cap will be higher and be more attractive to institutional investors.

Penta may sell on some capital to institutions if demand is great enough but I believe they are looking at realising a return through a trade sale of the business for £200m+ within a 2 to 3 year time frame. That would represent a decent return for everyone.

We need to be wary of some bright spark deciding to take the business private - but otherwise it is difficult to lose with the current share price in my opinion.

[vino] 22/10/2009 21:53

what is your view on the problem with Penta Capital and the forthcoming EGM with a possible share dilution

[neguss3] 16/10/2009 09:58

Guys give peg a look over

[martin44] 09/10/2009 15:27

Taken from Comms Dealer today

1 October, 2009 - 12:13
SpiriTel has announced a strong set of results for the year to 30 April 2009, with revenue and GP up 18% and 19% respectively, underlying EBITDA up 61% to £1.5m, along with £7m cross sales secured during the period, most on long term contracts.

Commenting on the results, Chairman, Lord St. John of Bletso said: "I am pleased to report on a further year of growth and development for SpiriTel plc. The Company has made significant progress despite an increasingly tough operating environment which has seen several competitors fall by the wayside. Whilst SpiriTel's Business Division has continued to perform in line with expectations, trading remains challenging for the Technologies Division and we do not foresee a significant turnaround in its core wholesale markets. However, the Technologies Division continues to add significant value through managing our IP-based infrastructure, on which several of the Business Division's product solutions are based.

The Group now benefits from much higher levels of earnings visibility, due to the Business Division's emphasis on contracted and recurring revenues from SMEs and larger corporate customers. This, combined with a wide range of business-critical products and services, means SpiriTel is well positioned to weather the ongoing economic storm. Through a combination of further earnings enhancing acquisitions for the Business Division and organic growth, driven by the cross-selling of an integrated product portfolio, we expect to continue to increase revenue and earnings for the benefit of all shareholders."

Chief Executive, Alastair Mills added: "We operate in a dynamic sector and the Board believes that we now stand at a particularly exciting point in the Company's development. We have demonstrated our ability to enhance earnings through acquisitions, followed up by significant cross-selling successes from our range of converged products and services into both new and existing customer bases. The foundations are in place to deliver ongoing value to shareholders and I look forward to the coming year with confidence."

[rcktmn] 09/10/2009 12:01

fund raising /placing on the way ? must be something up ? I know this is a dog of a share but the share price drop is unwarranted imho !

[relishing] 07/10/2009 16:06

Yes. No so sure about the 500% dilution though.

[martin44] 07/10/2009 16:01

Sounds like some very positive news on the proposed consolidation, would all agree?

[martin44] 04/10/2009 13:11

Sure enough to keep increasing my stock holding....

[relishing] 03/10/2009 23:42

Are you sure?

[martin44] 03/10/2009 23:26

ROBROB30 agreed if it was just a 1p level we were looking for but this has much much further to go and only the last 12 months of recession has caused this one to suffer but moving forward we will see a lot lot more to come from this innovative telecoms co.....

[robrob30] 03/10/2009 13:56

As an investment this is a waste of time!

[toshibacat] 02/10/2009 21:01

1p target price. Absolutely fabulous wonderful news. Hoodless convinced me to buy these when they were 36p and no they haven't had a 1 for 10 consolidation along the way. Still I'm hoping that they will recover enough so when I retire at 65 I can sell them to enhance my pension. By the way you are all invited to my birthday party next week. I will be 15.

[farthet] 02/10/2009 00:58

1p price target says it all

[martin44] 01/10/2009 16:12

SAGEM - Excellent news and I am sure more to follow....

[sagem] 01/10/2009 15:54

AND THE BUY TIP AND PRAISE FOR THE COMPANY JUST CONTINUES

Thursday, October 01, 2009

Hoodless Brennan Daily Small Caps News Flash ......Spiritel,

Spiritel (STP, 0.65p, £3.84m), the business communication group, reported prelims to 30 April 2009. Revenues up 18% to £19.7m (2008: £16.7m), normalised pre-tax profit of £0.24m (2008: -£2.4m). Over the past 12 months, the group have illustrated they are able to enhance earnings through acquisitions. Net debt at the year end was reduced to £11.0m (2008: £13m). Since the year end, the group have agreed to further planned restructuring of the indebtedness to Penta Capital Partners. The proposals include Penta converting up to £6.9 million of debt into equity at a price of 0.6p per ordinary share. The Directors consider that the proposals will significantly strengthen the balance sheet and better position the Company to raise capital for acquisitions. Trading remains challenging for the Technologies Division and a significant turnaround in its core wholesale markets is unlikely. The group's wide range of business critical products and services provide helps it weather the storm. The business continues to seek complementary earning enhancing acquisitions. The market estimates pre-tax profit of £1.4m and EPS of 0.2p in 2010 – this puts it on a prospective PER of 3.25x, a discount to the market. Hence, we initiate with a BUY recommendation and a target price of 1p.

[martin44] 01/10/2009 15:42

I am sure further good news to come....all worth waiting for....

[sagem] 01/10/2009 15:42

AND SO SAY ALL OF US..EXCELLENT RESULTS AND NOW TOTALLY UNDERVALUED AS A COMPANY

SpiriTel posts strong results
1 October, 2009 - 12:13
SpiriTel has announced a strong set of results for the year to 30 April 2009, with revenue and GP up 18% and 19% respectively, underlying EBITDA up 61% to £1.5m, along with £7m cross sales secured during the period, most on long term contracts.

Commenting on the results, Chairman, Lord St. John of Bletso said: "I am pleased to report on a further year of growth and development for SpiriTel plc. The Company has made significant progress despite an increasingly tough operating environment which has seen several competitors fall by the wayside. Whilst SpiriTel's Business Division has continued to perform in line with expectations, trading remains challenging for the Technologies Division and we do not foresee a significant turnaround in its core wholesale markets. However, the Technologies Division continues to add significant value through managing our IP-based infrastructure, on which several of the Business Division's product solutions are based.

The Group now benefits from much higher levels of earnings visibility, due to the Business Division's emphasis on contracted and recurring revenues from SMEs and larger corporate customers. This, combined with a wide range of business-critical products and services, means SpiriTel is well positioned to weather the ongoing economic storm. Through a combination of further earnings enhancing acquisitions for the Business Division and organic growth, driven by the cross-selling of an integrated product portfolio, we expect to continue to increase revenue and earnings for the benefit of all shareholders."

Chief Executive, Alastair Mills added: "We operate in a dynamic sector and the Board believes that we now stand at a particularly exciting point in the Company's development. We have demonstrated our ability to enhance earnings through acquisitions, followed up by significant cross-selling successes from our range of converged products and services into both new and existing customer bases. The foundations are in place to deliver ongoing value to shareholders and I look forward to the coming year with confidence."

[longshanks] 01/10/2009 09:27

perhaps you should change your name to "Waiting" then... :)

[knowing] 01/10/2009 09:16

This is worth the wait.

[sagem] 01/10/2009 08:44

Nobody is selling either...staying put...STP is a very good growth stock

[gerri-c] 01/10/2009 08:39

Buying is being made less attractive by the mark-up and the spread.

[sagem] 01/10/2009 08:32

Why is nobody buying....these results were good and just what we had been waiting for

[longshanks] 01/10/2009 07:55

that is my reading of it too: big corporate deal coming.