Vanco Share Discussion Threads

[cockneyrebel] 03/4/2008 13:12

Charles Stanley reinstated their 'Buy' with a £2 target I see.

LONDON (Thomson Financial) - Shares in Vanco Plc. were higher midafternoon following a reassuring trading update which prompted Charles Stanley to raise its rating on the virtual network operator to 'buy' from 'hold' with an unchanged 200 pence price target.

At 3:23 p.m., Vanco shares were 10-1/2 pence higher at 80-1/4, while the FTSE Small Cap index was 5.9 points firmer at 3,061.3. Earlier today, Vanco said its current trading continues to be good and that the pipeline of opportunities is strong with 20 percent more new business opportunities over last year.

The form also said it has extended its existing revolving credit facility by 23 million pounds to 123 million pounds until 2012 on the same covenants to meet temporary fluctuations and early implementation of its cost reduction programme. In reaction to the news, Charles Stanley highlighted the fact that Vanco has successfully negotiated an extension to its existing bank facilities, as well as the fact that its business remains strong.

The broker said, in its view, Vanco's results due mid-May will provide a new basis for earnings-based valuation of the group.

Charles Stanley added that the firm's subsequent results should then provide evidence of the cashflow sustainability of its core business model. In conclusion, the broker said it is sufficiently reassured by today's news to restore its original 'buy' recommendation on the stock. [e-mail]

CR

[02bursar] 03/4/2008 12:52

WJ

More evidence of the FD at work 'sweeping up'.

[02bursar] 03/4/2008 11:46

WJ - Message 868

New broker appointed 2nd April coincided with latest newsflow from VAN.

[windjammer] 03/4/2008 11:00

MM`s seem keen to push this one north, wonder what is going on, could it be shorts closing.
we are on the constant gainers board 6 days second position

[02bursar] 02/4/2008 11:33

moob - 20 Mar'08 - 20:43 - 4 of 4

"NEXT LEG SHOULD GO TOWARDS 40P?"

What would be the basis of that valuation?

[02bursar] 02/4/2008 09:15

moob - 2 Apr'08 - 07:21 - 866 of 866

"A nice way of saying "an arm & leg job".The market is VERY VERY tough at the moment. No indication as to how much extra this will cost. "

Care to speculate on the margin over Libor that a business of the scale and quality of this one would pay, assuming also that it has an excellent credit rating?

[moob] 02/4/2008 07:21

PUGUGLY - 1 Apr'08 - 08:07 - 861 of 865


"The additional facility is at a margin and fees consistent with the
market."

A nice way of saying "an arm & leg job". The market is VERY VERY tough at the moment. No indication as to how much extra this will cost.





good post pug

[02bursar] 02/4/2008 07:13

T&G Mesage 864

With news of that appointment, whatever happened to Diarmid Massey who was appointed to the same post 13 months ago? Under-performed?

[tomandgerry] 01/4/2008 20:34

Link posted on LSE thread - sorry if already posted, I have not read any posts yet.

[windjammer] 01/4/2008 09:22

we have 11.2% of this stock out on loan as we start to head north these positions will have to close.

also because of the credit crunch, it must be seen as positive that they have been given the extra facillity

[pugugly] 01/4/2008 09:07

"The additional facility is at a margin and fees consistent with the
market."

A nice way of saying "an arm & leg job". The market is VERY VERY tough at the moment. No indication as to how much extra this will cost.

[masurenguy] 01/4/2008 08:35

Positive operating update with a combination of overhead cost savings and further increases in the sales pipeline. Admin expenses were up by £5m in H1 so if they can cut back by £10m over the whole year they should remain broadly inline with last year. However the downside is the increase in the RCF of a further £23m which just underlines the working capital consumptive aspect of their undercapitalized business model which will continue to be regarded as a negative in this credit crunch climate.

This is the fourth trading update over the past 4 months and during that time the share price has fallen by a further 60%. Management are certainly keeping shareholders and the market abreast of both progress and developments but still seem to be unable to address the real issue of undercapitalization.

Share price has been marked up by more than 10% this morning on a comparatively low volume of Buys. Is this rise sustainable or will it run out of steam as some holders take advantage by selling into the rally !

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Vanco plc
Trading Update

Vanco, the global Virtual Network Operator, is pleased to provide a further
update on trading.

Following a review of the working capital requirement of the business, typically carried out each year at this time, the Company has extended its existing Revolving Credit Facility by £23m to £123m until 2012 on the same covenants. This provides good working headroom to meet temporary fluctuations as required and facilitates the early implementation of the cost reduction programme updated below. The additional facility is at a margin and fees consistent with the market.

On 22 February, Vanco announced a cost reduction and efficiency programme that
improves the cash generation outlook for the business. Savings of £6 million in
the current financial year to 31 January 2009 were identified at that point
which, when fully implemented, should result in annualised savings of £8
million. Vanco is pleased to announce that additional savings of £2 million have been identified, increasing annualised savings to £10 million. The programme is expected to be completed largely by 31 July 2008 with most of the financial benefit falling in the second half of the year. The cost reduction is largely being achieved through general overhead control and head count reduction which has been made possible by the significant investment in software and systems the Company has made in the last few years, and by moving certain jobs to its low cost centres in South Africa and Eastern Europe. To date, 105 jobs have been moved from high cost countries, and that will be increased to 150 jobs by 31 July 2008. This cost reduction programme will not impact on the growth outlook for the business, will enable us to maintain and improve service delivery to customers and, for the first time, will result in the year-on-year operating costs of the business being lower.

The company is pleased to confirm that current trading continues to be good and
the pipeline of opportunities is strong, with Vanco selected as preferred bidder for over 20 per cent more new business opportunities as at 31 March 2008 than at the same time last year (these are all subject to contract).

[caram] 01/4/2008 08:35

To reduce costs Moob!! Securing funding is incredibly important because many investors must have been concerned about their ability to keep going. That qustion seems to have been answered satisfactorily....

[windjammer] 01/4/2008 08:34

moob

read the RNS cost saving thats what all good co`s do, as a share holder thats what i want to see

[moob] 01/4/2008 08:28

ask then why they are sacking staff lest right and centre

[windjammer] 01/4/2008 08:26

we are flying can see this heading back to the 150 range

[masurenguy] 31/3/2008 09:16

Still sliding, even on a paltry volume of less than 3K shares sold so far today !

[moob] 20/3/2008 20:43

NEXT LEG SHOULD GO TOWARDS 40P?

[masurenguy] 17/3/2008 18:59

LOL - okay, sorry about the error, it's a small cap on FTSE All Share but it doesn't change the fact that it fell 14% today !

[02bursar] 17/3/2008 18:47

"Masurenguy - 17 Mar 08 17:11 - 852 of 852
Ouch - second biggest AIM faller today !"



It's a constituent of the Small Cap Index - not AIM.

SmallCap Index Constituents&dl=&p_encoded=1

[masurenguy] 17/3/2008 17:11

Ouch - second biggest AIM faller today !

[astol] 17/3/2008 14:31

New Low again-tanking could end up being a real penny share at this rate ie