Tp Share Discussion Threads

[tiltonboy] 10/7/2017 14:36

Surprised there has been no comment on the circular, giving more detail on some of the potential acquisitions.

I concur with PA that some of these businesses have few choices, hence EBITDA multiples of 4 to 6. Hate the word, but I bet there will also be plenty of synergy savings as well.

It may well take a bit of time to clear some loose stock, and I would have preferred to have a done a deal or two using cash, and getting the share price up to issue shares at a later date.

[grinley boy] 10/7/2017 10:43

When do we anticipate hearing about the open offer, I have shares through online account, I take it we will get a message or a letter?

[zcaprd7] 10/7/2017 10:34

Sorry. I'm not psychic, saw it in the digital telegraph last night lol. Although I do know he's a deal junky, as that's what he did at the last place...

[napoleon 14th] 10/7/2017 10:24

Thanks for the follow up PA.

Interesting move - not surprising in view of their game plan.
Far more interesting than most others & I'll take up what they offer.

[cerrito] 10/7/2017 09:18

Despite all my concerns on over reach I take heart from fact of support of the three major shareholders including Hargreave Hale who have taken more of their share of the placing so that once the open offer is dealt with there is no dilution of their holding.

[pavey ark] 10/7/2017 09:10

rhomboid, these companies are finding themselves faced with considerable challenges especially in the complex field of compliance with security issues.
The government cut,and continues to cut, the MoD civil servant staff numbers and obviously don't have the manpower to deal with small individual tenders from these small contractors.
TPG is in a very strong position as it is a major supplier and has all sort of security clearance through its extensive and long term contracts with the MoD and all the major contractors.

[septblues] 10/7/2017 09:05

They're buying approx half of a growing £21m revenue business moving into profit and valued at £20m after cash of £9m for £24m to create a "cash rich vehicle" where cash accounts for c60% of the value. That's enterprise value of £53m when combining operations with cash. I wonder who and how they fixed the enterprise value.

If they get it right, it'll be large enough to be taken out by another company at say 1.5 X revenue of £100m ie £150m.

So one of the ways of looking at the punt is can they triple the value in 3 years?

It'll probably have an impact also on their ability to pay dividends.

[rhomboid] 10/7/2017 08:59

Hi PA
That's a very good summary, I'm interested in the implied level of encouragement that the MoD must be giving to TP to tidy up their supply chain, it suggests vendors will have little choice but to play ball with TP unless they can find an MoD approved white knight & that'd be an impossible ask.

[pavey ark] 10/7/2017 08:52

Well EBW it looks like we both got what we wanted with you getting your big deal and me getting my £2m here £3m there approach but I must admit I didn't see it on this scale.
With current cash TPG has a war chest of over £30m.
Quick calculation (only just at my computer: Monday is usually a slow day for most shares !!!!) £3.9m open offer and if specifically for TPG shareholder this this c. 15% of holdings at 6.5p but with £20m placed then this is a done deal and we are certainly on our way.

More details would be good but commercial consideration/confidences and all that...

The nature of the acquisitions I like and taking over small enterprises over a period of time looks good to me rather than going for a large make or break deal.

The nature of the acquisitions suggest to me that the target companies supply the MoD but are now out of the recent FATS arrangement and would have to enter a "thin prime" arrangement with the TPG or similar approved supplier.
TPG in in all sorts of cyber security and supply arrangements with the MoD and all the major defence contractors so it is is my guess that they intend to tidy up the lower/smaller end of the engineering supply chain and provide a one stop shop for the MoD and larger contractors.

Cartmell is the man who bought the £40m+ submarine business for £10m and has spun the Engineering unit and the MS unit out of this purchase.

Hopefully we will get more details soon.

We will get one line nonsense posts today but we got plenty of them last year when the share price was under 3p.

I hadn't read this bit before posting :

The Directors understand that both the Government and the tier-1 contractors
are keen to see a rationalisation of their supply chains and would
therefore welcome a consolidator amongst the lower tiers of the supply
chain and believe that TP Group, with a stronger balance sheet, would
be well placed to be such a consolidator

[cerrito] 10/7/2017 08:48

To me concerning news given the big commitment of management time to make all these acquisitions work...I take the point that all in the same line of country which will reduce the transaction risk but I have no idea if TPG has the necessary management resources.
I have a slight concern at how the UK political situation affects defense spending

[timojelly] 10/7/2017 08:45

What shareprice for a company with annual revenue £100 million?

[timojelly] 10/7/2017 08:42

'The Directors anticipate that the first acquisition will happen during the second half of this year and that the remainder of the net proceeds identified for acquisitions are expected to be deployed within 12 months following Admission 'We are in for a busy year if they expect all 10 aquasitions to be completed in that time frame!

[trentendboy] 10/7/2017 08:32

Interesting. I think this is excellent news long term - they need to get bigger fast or be taken out themselves

[tiltonboy] 10/7/2017 08:08

Open Offer for shareholders.

[nw99] 10/7/2017 08:02

Can private investors participate?

[opodio] 10/7/2017 07:53

OMFG

#1m bonus to Cartmell?

[fernandesb] 10/7/2017 07:40

If the share price goes below 6.6p,I will be buying a lot,however if the price goes above 7.5p i am sure there will still be Investors prepared to take up more shares.The long term prospects for this company look good.

[timojelly] 10/7/2017 07:26

Pavey....... Get your head around that

[timojelly] 10/7/2017 07:24

I have no idea what this will do to the shareprice

[timojelly] 10/7/2017 07:13

20mill in the bag, rest on offer

[nw99] 10/7/2017 07:08

ZCA amazing you new that

[fernandesb] 10/7/2017 07:05

how the f..did you know this zcaprd7?

[zcaprd7] 10/7/2017 00:14

Big placing coming... 20 acquisitions lined up, 10 on discussions apparently... Cartmell is a deal junkie!