Triplearc Share Discussion Threads

[johnthm] 01/6/2007 05:15

Don't understand why the price is going up but more seller than buyer??!!

[knowing] 30/5/2007 23:58

Need to stop for a little breather.

[red dog] 30/5/2007 13:22

If one has followed this share, they will have the feeling that the share price will pass 7p in the very near future. Those not yet on board, will not make such a good profit as those who purchased some weeks back, but none the less, will still make over 30% profit by buying in now and having no fears of a large down side. STILL A STRONG BUY.

[red dog] 30/5/2007 10:24

My 3,000,000 shares are currently making me GBP60,000 plus and my friend in the City is ahead of me on profits. I do hope that many of you purchased these shares after my buying and tipping them.

My City friend believes the share price will now pass 7p in the short term and therefore advises all those holding not to sell out yet, as there is more upside to come. We shall see.

Good investing to all.

[knowing] 29/5/2007 12:54

Starting to need oxygen

[kimboy2] 24/5/2007 16:26

Debt down by £800k in 3 months and repayment of 600k in first quarter.

Not bad for a £9m market cap company.

[clarkyboy1] 21/5/2007 14:44

Adzecc, are these directors or managers?

[kimboy2] 20/5/2007 07:22

Which 3 key pesonel and what are the targets they are not reaching ?

[adzecc] 20/5/2007 01:21

just fired 3 key personel, not reaching targets,or cost cutting !!

[tunturiflyer] 12/5/2007 09:40

Apropos the debt issue:

Freehold building are depreciated on a straight line basis at 2.5% per annum. TPA has £1.02 million of freehold property, with £144k accumulated depreciation. £17k was charged in the year,

£933k at cost of freehold property first appears in the 2003 accounts, as a result of the Access Plus acquisition. £933 remained in the 2004, and 2005 accounts.

Don't fully understand what drove the increase in cost, and accumulated depreciation in the 2006 accounts.

So, there is at least the possibility of a sale and lease back of the freehold property, if debt repayments get tight. There might, I guess, the the hope that the freehold property is of greater value than the book value, as well.

[guythomas] 11/5/2007 17:02

yet the price falls...back to ya drawing boards

[clarkyboy1] 11/5/2007 17:01

And LIBOR is increasing, you may have read somehwere...............

[clarkyboy1] 11/5/2007 17:00

The broker has been clearly drinking with his weetabix at breakfast. £4m EBITA - dream on.

[kimboy2] 11/5/2007 15:47

If you re-read note 19 it says that the interest rate paid is a fixed %age over libor. Last year interest rate was about 8% and I think it will be less this year.

EBITA was £2.5, excluding Stream, in 2006 and £1.5m of that was in H2/06. I believe the broker is forecasting over £4m for 2007.

As you point out they have to repay the debt within 5 years and that is confirmed in note 21.

However that is the rescheduling that they have agreed to.

I would suggest that it shows some confidence in the future and IMV they may well do it quicker than that.

[clarkyboy1] 11/5/2007 15:26

Kimboy, note 19 in the accounts says average interest rates on their debt are in excess of 11% now, up from 8% in 2006; if anythng the interest charge looks likley to increase.

EBITA was £2.6 before exceptionals. Even if the company achieves an EBITA of £3m in 07 they're still £600k short of making the debt repayment.

[kimboy2] 11/5/2007 13:00

Hi Clarkyboy
I think that they are obviously out of the emergency ward and the new relationship with HSBC supports this.

The capital repayment this year is £2.331m plus interest.

EBITA last year was £2.6m and I expect interest payments to be under £1m due to the lower debt, £14.9m, and a new footing with the bank.

EBITA in H2/06 was £1.5m. I would expect this to grow further as the new contracts kick in.

Assuming a reasonable cash conversion I can't see a problem.

A nice little recovery stock IMV.

[clarkyboy1] 11/5/2007 12:14

Interesting point. Debt is actually £15.1m and all of it is due within 5 years according to their accounts. I think I may have made this point on my original post...................

[tunturiflyer] 11/5/2007 11:31

Clarkyboy - would be interested to understand how you got to £900k per quarter. From memory, they have about $16 million debt, so at that level of repayment, they would be debt free in 5 years.

[clarkyboy1] 11/5/2007 09:46

I've just had a look through the accounts, the debt due > 5 years in the 2005 numbers has gone so it seems that the debt repayments have been accelerated. By my estimates the company needs about £900k - £950k per quarter in free cash flow to repay the capital and interest, higher than last year.

During 2006 this cash mainly came from screwing down debtors and maintaining creditors, plus a healthy refund from the tax man. This year they don't have any of this available to them so I think they're going to struggle badly.

[knowing] 10/5/2007 17:31

GuyThomas - 10 May'07 - 16:54 - 2032 of 2033


don't get sucked in..still has massive debt...took my profit and ran

sort of sums it up doesn't it.

[tunturiflyer] 10/5/2007 17:16

Agreed debt is huge, but cash flow generation is fairly good. I got a free Cash flow estimate of about UKL 1.5 million, on fairly pessimistic estimates. Slight problem is that they are supposed to pay back a couple of million a year, and not certain where that comes from. - I'd guess that they can just about manage it if revenues grow about 5% a year. Guess they could reschedule the loan, as HSBC, their senior lender has options at 7.5p, so presumably wouldn't screw them, when they could make a decent amount out of the options.

50% of their revenues are recurring, and the proportion of recurring revenue is growing rapidly.

[guythomas] 10/5/2007 16:54

don't get sucked in..still has massive debt...took my profit and ran

[knowing] 10/5/2007 16:53

Wonder if it may break from it's trading range this time.

[dickyno1] 08/5/2007 10:28

LOOKING AT THE TRADES IT SEEMS THAT THERE MAY BE A BIG BUYER BEHIND THE SCENES, OR THEY MAY BE CLEARING OUT A SELLER.