Touchstar Share Discussion Threads

[johnwise] 18/4/2023 08:10

Bought in to this 23/1/23 On Good Update, will hold

18/04/2023 7:00am

RNS Number : 4947W

Touchstar PLC Final Results

[cockerhoop] 18/4/2023 07:42

Seems like my basic maths (6.3p prediction) is better than WHI's 5.8p :-)

Ian is a class act and will be missed. He's though never been keen on acquisitive growth so perhaps looking to hand over to someone with a different skillset for the next phase.

[rivaldo] 18/4/2023 07:28

Excellent results as expected, with 6.6p EPS achieved and the £3.5m cash pile representing 50% of the m/cap.

Recurring income is up again to 40%, and cash generation is terrific with £1.8m cash generated from operations in the last year.

Crucially the outlook is excellent, with the order book up massively to £1.7m and the outlook described as "very positive".

There's also the promise this year of (1) a dividend and share buybacks, (2) bolt-on acquisitions and (3) international expansion.

Ian intends to step down in 2024 having done a fantastc job, but that likely gives him another year in charge, and I have no doubt he'll find a like-minded successor.

TST is now a growth company with sizeable recurring income and huge liquid asset backing per share. It deserves to be priced at minimum 120p imo and possibly up to 150p.

[hastings] 18/4/2023 07:27

Very good results and momentum continues. Feeling a bit of a wally for not adding at the full ask yesterday!

[bio_tango] 18/4/2023 07:27

Excellent set of numbers.

[metis20] 18/4/2023 07:24

Today's FY RNS

"After tax profit growth of 63.6% to £558,000 (2021: £341,000)

Net cash of £3,476,000 at year end 2022 (2021: £2,380,000)

Opportunities are being identified to enhance our products and enter new markets by potential bolt-on acquisitions.

Once capital reduction process is approved by the courts, which we expect to take place during the course of 2023, it is the Board's current intention to increase shareholder value by using excess cash by way of the introduction of a dividend and via a share buyback programme."

[cocker] 18/4/2023 07:23

A great update indeed!. Not sure share buy backs are the way to go as barely can trade as it is, infact a special divi would be more appropriate.

[cockerhoop] 13/4/2023 09:49

It's on there - 12000 @75p, looks like they were subsequently purchased later in the day at 81.75.

[cocker] 12/4/2023 20:51

Each to their own, but with full year numbers likely to be out either tomorrow or early next week, a strange decision indeed. Since year end at least another 6 contracts added in the 1st quarter alone and with almost half mrk cap in cash, I would argue that there can hardly be a safer investment here on AIM. Obviously the biggest sticking point of all is the liquidity of the share, which I have brought up in conversation with the relevant personnel and if you struggle to get 12k away I guess I would have no chance.

[the oak tree] 11/4/2023 15:29

The drop today was because of my sale 12000 shares. Very small market size of 1000 shares.

Am sure Touchstar will be ok , I just see better co I wanted to buy today so needed the cash. I also dont like to invest in co with a market cap of less than £15m nowadays.

GLA

[rivaldo] 06/4/2023 13:13

This new article sounds promising (subscription-only unfortunately):



"Touchstar – a value ahead of results Buy?...

By HotStockRockets | Thursday 6 April 2023"

"A late January trading update from Touchstar (TST) included “revenue and profits in line, net cash generation and EBITDA ahead of expectations… the buoyant level of the current order book and trading momentum underpin the prospects for 2023” and that it expects to report results in “late April”. Ahead of those, we suggest there looks strong value in the shares from an 85p offer price.

etc"

[cocker] 04/4/2023 09:49

Happy to hit this year's eps, but would expect nearer 10p for following

[rivaldo] 04/4/2023 09:24

WH Ireland's latest 2022 forecast is for 5.8p EPS rising to 6.7p EPS this year.

With the £3.5m cash pile representing almost half the £7.2m m/cap, and giving an ex-cash P/E of 6.4 for this year, I'd be very happy with that.

I suspect they'll also raise their current 120p price target when the prelims are released later this month.

[cockerhoop] 03/4/2023 18:52

We know pbt is around 100% above last year so 207k x 2 = 417k add 2xH1 tax credit to get 537k PAT. Divide by 8.475m shares to get 6.3p eps.

[cocker] 03/4/2023 17:40

At the half way stage eps was only just under 2p, so as much as 10p would be very welcomed, it certianly would take some doing imho.

[varies] 03/4/2023 17:20

After 6 years in the doldrums, TST shares have been amongst the few holding up well these last 18 months.
Norbert Colon's heading dated May 2016 reminds us that WHI had a target price then of 103p with EPS forecast 10.3p in 2016 and 12.6p in 2017.
I would be delighted to see EPS of 10p for 2022.

[rivaldo] 03/4/2023 15:40

The excellent trading update stated that the prelims would be out in "late April".

However, I've just had an email from WH Ireland noting that TST will be doing an investor roadshow from 18th-25th April.

Which pleasingly suggests that the results will be out more quickly than anticipated, and certainly on the 18th at the latest.

[cocker] 17/3/2023 15:40

Well I guess TST must be one of the most undervalued stocks on AIM when you consider that at the Jan update half of its value was in cash, so I guess probably even more now. TU last year was late April so not long to wait.

[elited10] 01/3/2023 13:46

Well they haven't been that much help in getting the share price or volumes up.

[smithie6] 01/3/2023 13:30

WHI

why do you believe they are a hindrance ?

[elited10] 01/3/2023 13:28

Fair point and they obviously use a fair amount for working/cap. Interims 21 1.3m cash, interims 22 1m cash (twas a bit tongue in cheek). Whats more interesting is the strategic partners and much larger orders and order book. The chief is doing a good job, although he should stop giving any info whatsoever to WHI, I see them as more of a hindrance than a help. Maybe a new broker???

[smithie6] 01/3/2023 11:03

probably need to start using the cash or risk getting a takeover offer....

the cash reduces the real nett price to any possible buyer

[rivaldo] 01/3/2023 10:56

Elited10's £5m cash pile forecast is probably pushing it a bit. The current £3.5m cash is now forecast to rise to £3.6m at the end of this year by WH Ireland, which on the other hand seems overly conservative.

Around £4m seems more realistic imo, especially with recurring income growing nicely.

Acquisitions are now on the agenda. I'd rather the company grew using its own cash without dilution than fund a small maiden dividend or start share buybacks which would further reduce liquidity.