Touchstar Share Discussion Threads

[rivaldo] 06/12/2023 13:36

New interview with the Sales Director about TST's plans for US expansion:



Extracts:

"Gordon Hyland, sales director of Touchstar Technologies — fuel logistics division, sat down with BPN to share his views on the future of fuel logistics, the role of digitization and Touchstar’s plans for the North American liquefied petroleum gas (LPG) market. Hyland has 25-plus years of experience supporting customers with complex, field-based technology solutions."

"The European market has widely adopted a digital strategy that proves there are cost savings and efficiencies to be generated through fewer miles driven; accurate identification of tank storage locations; efficient routing and scheduling coupled with a real-time view of what happens in the field back at the planning office; and reconciliation of invoices and other issues, often happening the same day.

How does the European fuel logistics sector differ from North America?

The most obvious difference is the geography. European countries are smaller than the United States or Canada. This tends to result in areas of denser population, which creates differing requirements for fuel distribution networks.

What this has meant, though, is that the adoption of digitization of field-based processes has come quicker in Europe. Most large fleets now have in-cab mobile computing systems. Any that don’t are the rare exception. This is not yet the case in North America.

Digitization offers immediate legislative benefits by managing the data that a business needs to prove compliance with industry regulations.

It also brings practical operational benefits, such as instantly sending a driver a digital manifest in the morning, updating it in real-time if plans change, and not having to worry about lost, incomplete or damaged proof of deposit (POD) slips, without which a company won’t get paid.

Digitization means that drivers can capture a client e-signature on the glass of a connected handheld, along with the geo-coordinates of the driver at the time of delivery, for a complete POD. An invoice can then be generated within minutes of POD for improved cash flow."

[cocker] 16/11/2023 17:23

Almost two months without any contract news, in what historically is TST busiest period. Lets hope my concerns are without cause!

[rivaldo] 13/11/2023 09:01

Interesting new article by TST's sales director about digitalisation and decarbonisation in the O&G sector:



Extract:

"A perfect example is the national energy supplier, Flogas. Flogas has sought to break down silos and promote collaboration across its supply chain. Previously relying on fixed delivery cycles or an algorithm that predicted when they were going to need gas, the company has now invested millions implementing tank telematic systems, providing regular readings of their customers’ consumption and tank levels. By obtaining this vital information in real-time, Flogas has been able to centralise its orders, meaning it can now draw volume at quieter times, outside of peak periods.

By investing in a computer-based scheduling system, Flogas is also able to implement seven-day, rolling scheduling, increasing visibility. Additionally, demand sensing enables Flogas to fulfil requests across its forecasting operations, while also taking a more detailed look at customer consumption to extrapolate three months of rolling forecast data.

The Fuelstar on-truck computing system, supplied by Touchstar, ties all this together. Scheduled routes go out to the driver and, when they complete a job, an invoice goes out in real-time. If Flogas doesn’t deliver on that day, it goes back to the order pot for immediate rescheduling.

This increased efficiency automatically delivers decarbonisation through fuel and resource savings as well as the significant benefits of going paperless. We estimate that our existing client base saves 83 million sheets of paper (the equivalent of 20,000 trees) simply by eliminating the hard copy POD and invoicing.
Unexpected benefits

In addition to decarbonisation other benefits include:

Improved cash flow and better oversight of productivity levels
Enhanced safety and easier-to-manage compliance
Customisable tools and reliable data transmission
Increased customer satisfaction"

[rivaldo] 09/11/2023 15:15

TST's cash generation is usually second half weighted. WH Ireland are forecasting £3.3m net cash at the 31st December.

The £0.3m PBT in H1 was tripled from £0.1m year on year. Last year TST made £0.32m PBT in that H2. So this year's H2 forecast of £0.4m PBT, for a total of £0.7m PBT, will hopefully be met at worst and is conservative at best.

The m/cap is barely £8m, so the EV/EBITDA multiple is barely around 3.5. Which is very good value imo given the prospects and recurring income.

[mr macgregor] 09/11/2023 14:12

Reading the H1 report - introducing dividends and talking about acquisitions - I assumed they were throwing off cash, but profit was a meagre 0.3m and cash declined 0.7m over the six months. Acquisitions are often used to mask the fact that growth is running out of steam.

[rivaldo] 09/11/2023 11:33

RNS - another 25,000 shares bought back at 96p. That's 275,000 bought back to date:

[cocker] 09/11/2023 10:32

Ex divi at the end of today!. One would perhaps expect more contract news given that this is their most productive period if previous years are a guide.

[rivaldo] 08/11/2023 12:25

Thanks davidosh, should be good.

The shares look in demand online at present - currently you can only buy a maximum 5k shares at 98.5p, whereas you can sell 12k at 91p.

[davidosh] 02/11/2023 20:34

Just to let shareholders and prospective investors know that Touchstar will be one of the companies featured in our BASH MelloLondon. We have also invited Ian to join us and do two presentations on the 30th November but not confirmed as yet. We try to attract the best small to mid sized listed companies and we have some very good ones exhibiting this year

The event will take place at the Clayton Conference Centre, Chiswick on Wednesday 29th and Thursday 30th November, where you can expect over 700 investors, 50 Aim listed companies and 10 or so Trusts and Funds.

Tickets are still available and if you would like one at half price then enter the code MMTADVFN50.

For more information, visit

[smithie6] 02/11/2023 19:53

..I recall that you didn't agree with the buy back
...but it was only ~3% of the shares.....& the shares will be needed at some time for fulfilling share options....so it all seems pretty logical/normal from my viewpoint.
..but each person to their own view.

[cocker] 02/11/2023 19:34

Smithy, your find also worth noting and seems pdi bought them out . I guess it all depends whether we are going alone or via partnerships, obviously any branding issues can be changed if required. Personally given the inflation we have had I would like to have seen more meat on the bone at the end of H1, but if gaining traction abroad is now on the cards great, as the buy back is having the effect I said it would.

[smithie6] 02/11/2023 15:47

Do we agree that there already appears to be a company using the name Touchstar in the USA, so lse:tst will need to use a different name for its products in the USA.

[smithie6] 01/11/2023 10:09

I see that USA Touchstar was bought in 2018 by PDI.
PDI looks to be a major competitor to UK Touchstar in the USA.

[rivaldo] 31/10/2023 15:59

Exciting new article about TST expanding into the USA....for a £7.4m m/cap company (with around £3m net cash) this would be transformational.

What's good to see is that TST are doing this on the back of a sound rationale given that the European market is ahead of the USA's, and also that they're doing this in a careful way via partnerships rather than incurring big expenses.

Plus TST already have the brand recognition in the USA via the name Touchstar:



"TouchStar Technologies eyes North American LPG market
October 30, 2023

An established technology solutions provider in Europe has its sights set on the North American LP gas market.

TouchStar Technologies Ltd. plans to bring its experience, expertise and technology to customers in North America. The U.K.-based company has been supplying mobile computing solutions for oil and gas distribution for almost four decades. It supplies hardware, software, middleware integration services and full pre- and post-sales technical support to its clients.

“We are developing partnership opportunities as well as direct end-user engagements,” says Gordon Hyland, sales director of TouchStar Technologies – Fuel Logistics Division, in a company-generated information piece covering the future of fuel logistics, the role of digitization and TouchStar’s plans for the North American LP gas market. “We believe that our technology will enhance the offering of all LPG distributors, large or small.”

Specifically, TouchStar is introducing its FuelStar suite of products to North America. This includes in-cab hardware, front-end application and back-office software. The solution has full integration capabilities with third-party software (e.g., enterprise resource planning) and ancillary hardware (e.g., digital registers and in-vehicle Bluetooth devices).

TouchStar sees a natural progression into North America because many of its European customers already have offices here.

The digitization of field-based processes has come quicker in Europe, Hyland explains, as most large fleets have in-cab mobile computing systems. The company hopes more customers in North America will realize the same benefits.

“The European market has widely adopted a digital strategy that proves there are cost savings and efficiencies to be generated, through fewer miles driven, accurate identification of tank [and] storage location, efficient routing and scheduling, coupled with a real-time view of what happens in the field, back at the planning office, and invoice reconciliation and issue often happening same day,” he writes.

According to Hyland, digitization brings practical operational benefits, such as instantly sending a driver a digital manifest in the morning, updating it in real time if plans change and not having to worry about lost, incomplete or damaged payment-on-delivery (POD) slips. It also means that drivers can capture a client e-signature on the glass of a connected handheld, along with the geo-coordinates of the driver at the time of delivery, for complete POD. An invoice can be generated within minutes of POD for improved cash flow.

The company looks to become more visible to the U.S. market in 2024, with plans to attend next April’s Southeastern Convention & International Propane Expo in Charlotte, North Carolina.

U.S. propane industry members might recall the company name “TouchStar.” That’s because TouchStar Technologies’ history shows a former connection to Tulsa, Oklahoma-based TouchStar Group LLC, which had been a wholly owned subsidiary of U.K.-based TouchStar Ltd. In 2005, Belgravium Technologies acquired the TouchStar Ltd. U.K. operation – but not the U.S.-based company – and, in 2016, changed its name to TouchStar Technologies. All group brands now fall under the umbrella brand of “TouchStar.”"

[rivaldo] 16/10/2023 09:22

I've topped up recently in the 80p's - looking very cheap again. The online share overhang has now disappeared (as I write anyway).

The forecast is 6.7p EPS this year, rising to 8.7p EPS next year.

TST had £2.8m net cash at 30th June, forecast to rise in the seasonally better H2 to £3.3m. This equates to 40p per share in cash alone.

At the current 89p, the ex-cash P/E is therefore just 7.3, falling to 5.6 from the upcoming January.

And that's with around 40% and rising recurring income. Plus:

- prospects of international expansion
- potential acquisitions using the cash pile
- booming end markets due to Microsoft legacy software replacement

[martinouno] 11/10/2023 20:52

Brokers match buyers and sellers, when there are more sellers then the price drops but it doesn't take much buying to boost the price, this is a thinly traded stock.

[davidosh] 11/10/2023 13:45

The price is falling and by 15% since early September so there must be stock that is available and the brokers would know who may be looking to sell even more

[martinouno] 11/10/2023 09:37

Perhaps they are continuing, but as soon as they start to buy the price goes up, it's not so easy.

[davidosh] 10/10/2023 18:12

on 11 September 2023, pursuant to the authority approved by shareholders at the Company's Annual General Meeting held on 22 April 2023, the Company purchased 25,000 ordinary shares of 5 pence each ("Ordinary Shares") at a price of 98.9 pence per share (the "Transaction").

So why have they not continued with buybacks as the share price is now 12% lower and they will get more shares for the same outlay and give us long term holders more of the company to ourselves with better metrics and higher yield going forward ??

[martinouno] 10/10/2023 16:48

But why is the share price collapsing?

[cocker] 10/10/2023 12:39

Well its a very well run company that should reward investors sooner or later. Trouble is buy back program a farce when one can barely sell 1k or buy 1k at a time which puts off small pi's.

[martinouno] 10/10/2023 08:19

A lot of selling at the moment, price dropping, any explanation? Sorry if this has been posted more than once am having issues.