Triplearc Share Discussion Threads

[clarkyboy1] 13/9/2006 11:50

The company is not generating anywhere near enough profit to make the debt repayments and are instead having to provide funding by squeezing debtors. The debt book needs to be maintained but turnover is dropping. Please explain which part of this is sustainable enough to lead to repaying £15m in 3 - 4 years while leaving sufficient investment cash to generate profits of 6 -7m, especially from a base of £1.5m which looks likley for this year.

[pippit] 13/9/2006 10:49

Clarkyboy1 you may be all ears but I doubt if you have much between them. On August the 18th you doubted that the then 3p share price base could be held. Well it is now 5p some 70% above it. The company has gone through a bad patch and will come right. If anyone had listened to you they would have sold out weeks ago and missed the upward trend that is creeping back in now. As I said before if you have nothing contructive to say then if I was you I would keep quiet.

[kimboy2] 13/9/2006 10:30

Cashflow was 2,532 in the first half which after working capital changes was 426k.

Included in that is exceptional costs of 397k and the operating loss on Stream which seems to be another 300k.

That would more than cover the repayments in the 2nd half without any working capital changes. The fact that they have made repayments from working capital would suggest to me a pretty good financial control.

They also say that operational gearing is high so I would expect these extra contracts that they are gaining to be more profitable.

I can imagine in 3 or 4 years time the company being debt free and making 6 or 7 million.

Not risk free IMV but a good upside if the present progress can be maintained.

[clarkyboy1] 13/9/2006 09:52

The company paid £1.2m in debt, net of interest, in 2005 which suggests they didn't pay HSBC everything that was due, IMHO if the bank isn't willing to allow another payment holiday the money has to come from debtors because they aren't generating the profit. I agree though Dell, I don't know what the normal debtors days should be but there can't be much more to go.

[dell314] 13/9/2006 09:36

At first glance, the debt repayments roughly match the reduction in debtors.
Current liabilities have consequently taken another increase.
Surely, there's a limit to how far they can generate cashflow from working capital control?
Is this a voluntary process, or are HSBC squeezing them.......

All IMHO, DYOR etc.

Rgds
dell

[clarkyboy1] 13/9/2006 09:14

So the company makes £700k profit after exceptionals, and needed about £1.6 just to make the debt repayment, turnover down £3.6m, gross profit down by £2.7m, profit only improved by lower amortisation, creditors higher than debtors by almost £3m.

Pippit, anytime you want to make that apology, I'm all ears.

[knowing] 13/9/2006 08:00

Interims out

[skank doggy] 09/9/2006 18:00

DID "STEVE" USE WEB POLLS TO GATHER INFORMATION ABOUT HTD POSTERS?

[ma3stro] 09/9/2006 17:15

hello..everyone sold out of this potential 10 bagger?...results should be worth waiting for and could be this week

[ma3stro] 05/9/2006 19:36

good top up opportunity...

"The Board is pleased with the progress the Company made in the year to date,
which is in line with its expectations, and is seeing positive signs from its
strategy of winning large, long term contracts and developing business with its
existing customers.

"The Group has continued to generate good levels of operating cash flow and has
made #1m in debt repayments to its senior lender since the start of the year."
A further update will be included in the announcement of the Company's results
for the six months ended 30 June 2006, expected to be released in September
2006.

[pippit] 05/9/2006 15:23

Clarkyboy1 I doubt very much you know the definition of objective, subjective for sure. Time will tell but please please do not knock the company and its management even when it spouts good news.

[clarkyboy1] 04/9/2006 10:26

Pippit, I'm merely trying to be objective. If the results are good, then I'll apologise for being wrong. If they aren't, I presume you will.

[fairdealer] 04/9/2006 09:47

Hello all;
This company is making vast leaps and have turned the corner; To be awarded with a multi million pound deal they can deliver the goods.Well done too the management and shareholders.

[minho] 03/9/2006 20:58

There is a turn around in this company, the turn around could be for a long period. Looks a very good start from the bottom.

[ma3stro] 02/9/2006 08:45

"The Board is pleased with the progress the Company made in the year to date,
which is in line with its expectations, and is seeing positive signs from its
strategy of winning large, long term contracts and developing business with its
existing customers.

"The Group has continued to generate good levels of operating cash flow and has
made #1m in debt repayments to its senior lender since the start of the year."
A further update will be included in the announcement of the Company's results
for the six months ended 30 June 2006, expected to be released in September
2006.^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

[ma3stro] 02/9/2006 00:22

uk analyst

shares in TripleARC surged by 1.25p to 34.48p after winning a "multi million pound" contract to supply all of the marketing print materials needed by AOL. Broker Altium reckons that the party has just begun and set a 10p price target for the shares.

[elaridg10] 01/9/2006 18:08

trying this out myself -

[knowing] 01/9/2006 17:40

pippit some people will always look on the negative side !

[pippit] 01/9/2006 17:36

Clarkyboy1 after all that you have been saying over the past weeks I would have thought you would have bowed your head in shame and stated that you have got it wrong. "Good news clearly" you say but then go on to spoil yourself again by saying you doubt AOL have look too closely at the balance sheet. You must have a huge grudge against the company or someone in it. You are obviously not a very nice person to know.

[sithuk] 01/9/2006 17:35

When are the results?

[clarkyboy1] 01/9/2006 17:20

There are some very optimistic and naive people around. Dell and Dave are right, a multi-million pound contract over three or more years isn't much, and this figure is sales, NOT profit. If you assume the margins in this market are about 15 - 20%, and then take off the cost of servicing the contract, you aint left with a whole lot. Good news clearly, but I doubt AOL will have looked too closely at the companys balance sheet.

Await the results.

[markthecarp] 01/9/2006 11:43

davethehorse - previous BBA pm deal was not mandated and there were very many ordering points with only small spends. High cost to service with only small reward even though they claimed a 10m spend on print. Virgin deal still 2 years to run but with Virgin/Telewest and ntl all coming together will TPA hold on to it? Anyway nice move up for them today.

[wiganer] 01/9/2006 11:32

Long time no see dave. Hope you're well.

[davethehorse] 01/9/2006 11:30

Multi million deal - how much profit?

How much profit has come from the multi million deals with Matalan, BAA and Virgin - TPA are very conservative with info - multi million is meaningless unless margins are quoted IMO.

Well done to those in at around 3p anyway - wish I had been.

Dave (not holding)

[pippit] 01/9/2006 11:01

Oh dear Oh dear!This smell of bear is terrible.