Touchstar Share Discussion Threads

[rivaldo] 11/3/2024 08:36

WH Ireland have raised their valuation for TST to 140p (from 120p).

They've also updated their numbers. They have £7.2m turnover for last year (up from £6.7m in 2022), rising to £8m this year and £8.5m next year.

They now forecast 7.6p EPS for last year (up from 6.6p in 2022), rising to 8.7p EPS this year and 10.0p EPS next year.

The cash pile is due to rise to £3.4m this year and £3.8m next year, with the dividend rising to 2p and then 2.5p.

With that cash pile now backing up almost 40% of the m/cap, for me it represents firstly a backstop in terms of NAV and share price downside, and secondly an opportunity as TST have stated that they wish to expand either or both internationally (via partnership) and by acquisition. So given that the cash pile puts TST in the position to do so this potential may well be recognised in the share price at some point by canny investors out there.

[adamb1978] 11/3/2024 08:17

It does look very cheap, and I own a handful, but only a handful, however the bear arguments include

- Sequential half yearly decline in turnover?
- Market doesnt appear to place any value in the cash balance (not just for TST, but looking at ex-cash PEs in my mind is theoretical rather than ever recognsied in share prices)
- illiquidity

Any guesses for FY24 turnover?
Thanks

[rivaldo] 11/3/2024 07:24

The 2023 trading update notes that PBT will be 60% up on last year at around £0.65m, so this and revenues will be just slightly behind forecasts - but EPS will be "well above" expectations due to a lower tax charge and the buybacks.

I'd guess EPS is likely to be around 7.5p.

The 2024 forecast is already 8.7p EPS, but this may be increased due to the buybacks.

The cash pile is steady at £3m - almost 40% of the m/cap. So the historic ex-cash P/E is only around 7.5.

Most importantly, the outlook for 2024 is extremely positive:

"Trading remains on track for 2024 to be a year of

· Further revenue growth
· Maintenance of healthy margins
· Positive cash generation
· Progress in profitability

Ian Martin, Chairman, commented: "Touchstar entered 2024 in good shape. In the market sectors in which we operate activity continues, which gives reassurance for the outlook in 2024. The medium-term prospects for the company have improved. The team is now focussed on making such opportunity a reality, enabling a long term continuation of the positive trends in financial performance, building upon the solid platform we have developed and making Touchstar a better business."

[smithie6] 10/3/2024 11:48

Not so easy to sell the hardware units directly imo. Clients probably mostly buy new hardware when they upgrade their whole system and that only happens every X years.

The hardware units/terminals should be with agents to try to obtain sales and I think the company is expanding that, including overseas, yes.
Strategy looks correct imo.

(Imo I'm amazed that such a small company can design, document, make & get certified (some terminals certified for use in explosive air vapour environments ) it's own terminals, since it is a big one-off cost.
I guess that the company has looked at options such as licensing their designs to hardware terminal companies & decided against it. If you give your designs out there are many risks of course such as not getting paid the correct licence fees, similar/copy designs being made which get around your licence fee & then undercut your price in your home market, ....or the designs getting to Asia & then being made much more cheapily & then undercutting your price in your home market.
The company will look at the different options every year, & have been doing so for years, & know much more about it than us, & I'm confident they are making the best/correct decisions.

Touchstar uses some units made by other companies in Touchstar systems (is Zebra one of them?), one hopes that those companies also buy some hardware units from Touchstar.

[cocker] 09/3/2024 18:21

Cyber essential plus accredited to TST and geofencing as standard now. Clearly the company seems to have the technology and the people to supply a fit the systems, especially given the many complimentary assessments. However , they need to sell more ,thus get some hardened salesmen in to do so!

[smithie6] 09/3/2024 13:19

What is that claimed added feature ?!

[cocker] 07/3/2024 15:26

I have just read another added feature to the fuelstar offering, it just gets better and better. However, I have said it for some time now, Touchstar lack salesmen who can actually sell the great product!

[rivaldo] 05/3/2024 12:33

Nice £15,000 buy at 95p just reported, well above the published 93p offer price.

[davidosh] 01/3/2024 15:45

Just to remind ourselves as no updates from the company for six months since the interims...

* TOUCHSTAR PLC H1 PRETAX PROFIT ROSE 195.2 PERCENT TO
307,000 STG


* TOUCHSTAR PLC H1 EBITDA 657,000 STG


* TOUCHSTAR PLC H1 BASIC EARNINGS PER SHARE 3.2 PENCE


* TOUCHSTAR PLC H1 PROFIT AFTER TAX 271,000 STG


* TOUCHSTAR PLC H1 REVENUE 3.73 MILLION STG


* TOUCHSTAR PLC - BOARDS EXPECTATIONS REMAIN UNCHANGED FOR
FULL
YEAR OUTCOME

[rivaldo] 27/2/2024 09:10

New contract win just announced with Eliquo Hydrok "for a technology rollout of the latest rugged tablets and handheld computing devices":



Eliquo look quite a substantial operation - could be a reasonably sizeable win given all the "depots throughout the country":



"ELIQUO HYDROK has extensive experience and track record of working with all the major Water Utility companies throughout the UK and Eire. Head office and main manufacturing base is located in Cornwall, with additional satellite 'service and installation' depots throughout the country in the areas where we operate."

[cocker] 12/2/2024 12:27

Contract win with Damart for rugged computer system. Well lets hope that's the start of a string of contracts as they seemed to be thin on the ground in what normally is TST busiest period!

[cocker] 07/2/2024 07:48

So happy with no TU then Rivaldo?, as next news likely to be April now.

[cocker] 31/1/2024 07:19

Absolute shocker that Mark Hardy feels there's no need for a TU!

[rivaldo] 26/1/2024 09:41

Last year's "ahead of expectations" trading update was on a Monday, the 23rd January. A Monday RNS normally indicates good news (as opposed to a Friday!) - let's hope this coming Monday fits that scenario....

It was certainly encouraging to see the company issuing (at 211,000 a relatively limited number of) options 10 days ago - exercisable at 95p. There wouldn't be much point in doing so at this time and at such a price if the results were going to be disappointing.

Fingers crossed :o))

[cocker] 05/1/2024 14:02

@Present can sell 7500 on line and only buy 250 with firm quote.

[rivaldo] 04/1/2024 12:24

Good to see the share price move up 5p after just a 2k buy. Likely not much stock around.

[rivaldo] 03/1/2024 11:23

And an especially Happy New Year to the downticker on my post above :o)) How strange.

[rivaldo] 29/12/2023 10:32

Great to see the newly introduced interim dividend hitting my bank account last week - a sign of the company's confidence going forward.

HNY to all TST holders - much to look forward to methinks.

[jeevsje] 13/12/2023 07:36

Mark Hardy, Chief Financial Officer said: "I am delighted to welcome Natasha to the Board who began her career with Touchstar in 2007 as Touchstar's financial controller."


How useless can WHI be not to spot that Mark is listed as CFO in the above? Useless bunch.

[rivaldo] 12/12/2023 13:43

TST are publicising their move into the American markets:



"Strategy Update: Touchstar Fuel Logistics in the USA
11 December 2023

Strategy Update: Touchstar Fuel Logistics in the USA

Touchstar has embarked on a strategy to extend it's market penetration to North America and Canada. As a market-leading European supplier there is already huge interest within the US market as epitomised by the recent press coverage in two leading industry magazines.

Butane-Propane News currently has a feature in it's December 2023 edition entitled "Assessing Challenges & Changes Within the Fuel Logistics Industry". The article features an interview with our Sales Director, Gordon Hyland, and can be viewed HERE.

LPGas magazine is currently running an article entitled 'Touchstar Technologies eyes North American LPG market'. This feature can be found HERE.

Touchstar will be consolidating it's strategy via an aggressive sales & marketing campaign which entails PR, extensive online & offline advertising, partnership formation and attendance at various key exhibition events. The first key trade event is 2024 Southeastern Propane Expo which is taking place at the Charlotte Convention Centre between 5th & 7th April. If you're attending and wish to meet up please contact [e-mail] or visit this page and hit the appropriate 'want to meet up?' button."