Tekmar Share Discussion Threads

[gogoneko] 26/3/2009 21:33

It could be a replay of the share price action on announcement of last year's results: A sudden rush of enthusiasm and then a gradual sell-off.

I think to avoid a repeat performance the company needs to keep good news flowing because they haven't done enough to instill complete confidence in their ability.

[loverat] 26/3/2009 20:32

These shares went up by close to 50% yesterday. But looking at the trades, no one would have made a profit if they bought and sold yesterday.

A boring, dull and uninteresting stock.

[gogoneko] 26/3/2009 20:23

Despite reporting losses there were some very encouraging signs in yesterday's announcement.

The PTMS division certainly seems to be delivering good revenues and improving overall margins so there's plenty to be excited about there. Elsewhere things still aren't looking good - the £5.8m external revenue shortfall in the space of a year in the vehicle installation services, which resulted in losses negating the profits from PTMS, would require more than a £0.2m restructuring to assure me that the losses from this division won't be exceeding £1m annually. Actually there doesn't seem much point in it being considered a non-PTMS entity if increasingly more than 60% of the work undertaken by the division is PTMS work.

I'm also cautious about expectations of £2.7m falling onto the doormat from a property sale. As discussed in a previous post - even if the potential purchaser eventually receives redevelopment planning permission I think that it should be expected that due to the deterioration in commercial property values, and in the midst of a recession, the purchaser is likely to attempt to drop the price further or walk away. It'd therefore be a question of either failing to sell the property or requiring another write-down to spoil future results.

There are also, sadly, reminders of managerial failure to deliver (bad loans, bad strategic decisions, etc) to highlight that their ability to underperform should never be underestimated. It would be nice to think that the bad decision days are behind them.

In the absence of problems the next interims should be a pleasure to read, but trusting this management is such a big ask. I'd say that the shares are fully valued at 5p for this year as I think there's enough potential for another property write-down and more restructuring costs arising in the installation services division.

[qut] 25/3/2009 22:35

Should also be noted that these results have been posted in the midst of a recession - makes them outstanding! Bar any nasty surprises, I think it can be safely said that this company has been turned around. Debt-free, orders in the pipeline...

[aspex] 25/3/2009 22:24

Since the header for this board is obviously far too large and well out of date, could one of the frequent users start a new one????
Otherwise I will.

[rivaldo] 25/3/2009 13:47

Good coverage, although no mention of the excellent performance pre one-off write-offs:



"Wednesday, March 25, 2009

Telematics group TG21 says good fourth quarter performance continues in current year

Vehicle telematics specialist TG21 PLC reported a loss in the full year to end-December 2008 mainly due to impairment and restructuring charges, but noted that record performance of its Public Transport Monitoring Systems division in the fourth quarter has continued into the first quarter of the new financial year.

Chairman Peter ward commented: "For the first time in over 10 years, we have achieved a net credit position with the bank and coupled with results in the first quarter of the year currently exceeding our expectations we are looking forward to 2009 with a position of strength and optimism."

Investors took kindly to the group's upbeat tone, sending the shares soaring in morning trade. By early afternoon, TG21 was up nearly 43 percent over yesterday's close.

The group made a pretax loss of £800,000 in the full year, hit by one-off items of around £1.5 million in the period, compared with a profit of 1.1 million a year earlier. Revenue dipped to £12.2 million from 15.5 million in 2007, the year in which TG21 disposed of anumber of its legacy businesses.

Sales from Public Transport Monitoring Systems rose 54 percent from 2007 to £7.7 million, lifted by first sales the EcoManager driver monitoring device to public transport operators at the end of the year.

The company has a pipeline for delivering 2,000 more EcoManager systems in the current year. The product pipeline also includes live on-bus CCTV currently being trialled by Transport for London."

[rivaldo] 25/3/2009 12:07

Good post baner.

Quite right - the PTMS division made £1.6m operating profit last year, and we can expect Vehicle Installation to be considerably better this year with the reduction in headcount and with the growing PTMS business.

You may be right about a 0.5p divi - that would only be £400k.

Unfortunately Daniel Stewart don't make their morning notes available free any more, but hopefully we'll see increased forecasts from them for 2009.

[baner] 25/3/2009 09:54

in fact, the 21st Century subsidiary made £1.6m of EBIT already in 2008 and should do better again in the current FY. take minority and tax out and this is almost 1p/share! such a growth company is no doubt worth 10 PER even in today´s market = 10p/TG21 share. add net cash of maybe 4p and deduct for Central Costs that should be max £400k/year and the shares will be north of 10p no doubt. remaining rump business should now breakeven going forward.with such a strong balance sheet, the risk/reward is VERY sound in this stock. we should see a 0.5p/share dividend in 2009, after all these years of suffering - or maybe an opportunistic bid once the site is sold.

[rivaldo] 25/3/2009 09:26

At 4.375p the m/cap is now £3.6m, yet there are £4m of tangible net assets...

In fact TGP already have £200k net cash. This could rise to £1m by the end of this year. Then (potentially) add in the £2.7m from the property, plus recoveries of the Cyberlyne debt, and TGP could have £4m of net cash.

Add the existing and growing businesses making historic £600k operating profit, for which the optimistic outlook statement makes extremely pleasant reading.

If the TFL CCTV trial results are successful then we could be looking at an extremely interesting year ahead.

The TFL trial results are due soon - in May - as it was a 6 month trial.

[rivaldo] 25/3/2009 08:37

Number 2 on the top risers list :o))

[halfpound] 25/3/2009 08:21

Let me know when the share price gets to 16p please, I'd like to get out at breakeven.

[supreme mo] 25/3/2009 07:50

for the first time i am filled with optimism... we shall see though!!

the comments are often as important as the numbers and the comments seem positive to me!!!

[rivaldo] 25/3/2009 07:32

And surprisingly good they are too - ahead of expectations and net cash now with no debt!

Remember the m/cap is only £2.9m, yet there are £4m of tangible net assets...

If TGP receive the £2.7m from the property sale they'll have say £3m of cash, plus growing businesses making a minimum of £600k operating profit.

Highlights:

ADVFN competitor.uk-wire.com/cgi-bin/articles/200903250700114158P.html

Record sales from Public Transport Monitoring Systems up 54% to £7.7m (2007: £5.0m)

Net debt reduced to nil at the year end (2007: £0.6m)

Gross profit increased from 55% to 60%

Operating profit from continuing operations* at £0.6m is ahead of expectations for the year (2007: £1.4m)

Excellent final quarter results for 2008 continue into first quarter of 2009"

[supreme mo] 25/3/2009 07:23

Results out....

[rivaldo] 11/3/2009 07:48

Interesting news from TFC's results today - PAYD still has prospects:

"During 2008 we were disappointed that Norwich Union ended its pioneering Pay As You Drive car insurance service in the UK, which was enabled by Trafficmaster technology. This service allowed drivers to pay for insurance based on location, time of day and age of driver. Following on from this programme, we are currently trialling a similar service with a significant US-based insurer and are actively progressing discussions with several other potential partners."

[nod] 09/3/2009 20:28

Loverat

I always think the long term chart gives a clearer picture as to what the market thinks, and the market doesn't seem to have liked TGP over the past five years.

The TGP business is now a very small niche business. A business that is hovering around breakeven is hard to value and isn't very attractive to any potential investor in the current climate. Unfortunately, the PAYG insurance doesn't look like taking off at the moment - I'm sure it will one day but not yet.

Unless TGP can expand significantly through acquisition, I can see them being delisted some time soon, possibly through a private acquisition or MBO. There's no point in being listed unless you intend to use the market.

As for Syndicate (SAM), I wouldn't touch them with a barge pole - even if they were 2p. There's definately something very wrong in that company. The share price has fallen 95% and continues to fall (down 7.8% today).

[loverat] 06/3/2009 20:59

nod

Every time I pop in here, nothing has changed. share price depressed, moaning investors and more pipe dreams. If you had stuck a few quid in SAM this week you could have doubled your money in a day. You may not like them for holding on to your dosh but you have to dabble where the opportunities are.

This ain't going nowhere.

[rivaldo] 06/3/2009 11:08

From Arriva's results yesterday - they're rolling out TGP's Eco-Manager...looks like it's a success:



"Building on successful trials, we have continued to roll out driving aid technology which, combined with driver training, is helping to reduce fuel consumption. Further deployment is planned during 2009."

[supreme mo] 13/1/2009 22:17

whoever it is was made to pay full price for offer.

the spread is quite hefty on this at the mo...

will be interesting to see where we go from here - glad the co has got rid of the poor businesses and strengthened the balance sheet prior to the recession.

[whatlp] 13/1/2009 18:35

10k buy earlier today, what gives?

[rivaldo] 09/1/2009 12:54

Thx call-logger. I'm pretty sure we'll see another RNS from Gyllenhammer once he reaches the 25% threshold of around 20.4m shares - he had 19.9m back in October.

I assume he's hoovering up small selling as it comes in.

[nod] 09/1/2009 09:56

although the share price has fallen significantly over the past five months Mr G has bought 'only' two million shares in that time. he may be waiting for the price to fall or he may be hoovering up the small sells.

[supreme mo] 08/1/2009 21:30

interesting rise, i wonder who has been buying... this stock goes days without any trades and then the quarter of a mill goes through - good sign imho.

[call-logger] 08/1/2009 15:28

Still on here though

ZF000WOQZG 3.875 250000 OK 3.5 4.0 16:28:50 250,000