Velocity Composites Share Discussion Threads

[fr4dge] 02/7/2009 17:51

We don't know the interest rate on the loan - they have ommitted to tell us.

We do know that the arrangement fee was equivalent to 14% of the total loan amount - in shares - at market value.

It is totally wrong to say that it has cost them nothing - it's cost them / us 14% of the total amount raised.

The fact that they did it with shares is neither here nor there.

It's not the action of competent management that had a lot of choice IMHO.

Either they are idiots or they couldn't raise the cash any other way.

Both alternatives scare the life out of me - which is why (in best Dragon's Den stylee) I'm out.

Good luck to the remaining holders.

[nurdin] 02/7/2009 17:00

Dilution is only 2.5%...and in fact the arrangement fee has cost them nothing !!

[nurdin] 02/7/2009 16:35

We dont know the terms of the loan facility...quite likely they were able to negotiate very favourable terms in return for the up front payment in shares.

I am holding and may even add if the price recedes further.

[stegrego] 02/7/2009 16:32

Must admit id not really taken notice of how many shares issued for the load facility. Does seem an awful lot of 'money' (paper) £1.38 million to arrange a £10 million loan.

14% - ive no idea what the usual going rate is, but seems excessive. Although, i suppose if it saves them cash and the insti's dont sell the shares, its probably not as bad as it appears.

[fr4dge] 02/7/2009 15:33

865,000 shares to arrange a £10m loan facility!

WTF!

Just sold mine.

Outrageous.

[deucetoace] 02/7/2009 14:42

well Q1 revenue was up 50% from the rns about the acquisition. the H1 revenue is 20 m euro's v just under 16 million last year so +25% rather suggesting a slowdown even if margins are higher. I have sold.

[pro_better] 02/7/2009 13:27

875,000 new shares of 5p each !!!!!!!!!! ARE THEY OUT OF THEIR MIND??

i am very dissapointed...

[yz426] 02/7/2009 13:23

Additional shares dilute the price to £1.55 ish.
They're still a growth company on an undemanding rating in a good, niche market.
Hold or long term buy I reckon.

[deucetoace] 02/7/2009 13:08

not a good update IMO, smoke and mirrors about definitions of revenue and capex to ensure that they can say they did what they said they would do and what about the up front fee on this new loan facility, rather expensive is it not.

[nurdin] 02/7/2009 08:22

Hat made of chocolate thankfully :o)

[stegrego] 02/7/2009 08:02

You prefer Tomato or Brown sauce with your hat Sir?

[nurdin] 02/7/2009 07:32

Eat my hat if Velti dont get rerated on that statement..:o)

[nurdin] 02/7/2009 07:24

Trading statement out:


Pre-close trading update


Velti plc is the global technology leader in the provision of mobile marketing
and advertising solutions for advertising agencies, brands, mobile operators and
media. Velti has continued to achieve strong growth in revenues and profits for
the six months ended 30 June 2009. Total revenues are expected to exceed EUR20m
and net revenues (revenues minus third-party costs) to increase by more than
50%, over the comparable period last year, delivering higher margins.


The Board is pleased by the financial performance in the first half of 2009.
Velti's revenues have traditionally been stronger in the second half. The Board
is confident that this seasonality will continue and the company is on course to
post a further year of profitable growth.


The momentum in revenue growth reflects increasing repeat business from existing
clients, as well as significant new client wins across our geographic footprint
in Europe, Asia and the Americas.


The company is experiencing strong demand from mobile network operators seeking
to strengthen customer relationships and loyalty, and has won new contracts
during the period with Vodafone, Orange, Batelco, COSMOTE, AVEA, Orascom-WIND,
PT Smart Telecom, Vivatel, and Telefonica's Movistar. Agencies and Brands are
continuing to increase the allocation of marketing and advertising budgets to
the mobile channel and this was reflected during the period in the acquisition
of new customers like Honda, Coca Cola, Nutella and Colgate. The overall
economic conditions have caused some delays in the roll out of certain mobile
marketing projects, but our pipeline continues to be very robust and we already
see signs of acceleration.


Velti is pleased to announce the collaboration with Telefonica's Movistar in
Mexico, where the operator will be using Velti's award winning MMP. Movistar is
one of the largest mobile operators in Mexico with over 16.3 million
subscribers. This is Velti's first multi-million dollar engagement in Mexico and
demonstrates that its measurable mobile marketing technology can provide results
even in today's challenging environment.


In 2008, Velti invested heavily in its Software as a Service (SaaS)
infrastructure across five global data centers. In 2009, capital expenditure has
been much lower with net capital expenditure (capital expenditure minus
depreciation and amortisation) of about EUR1.5m, compared with EUR5m in the
corresponding period in 2008, and we expect this trend to continue. Overall
there has been a cash outflow for the period, which included the acquisition of
Ad Infuse announced in May.

Because of its timing, the acquisition of Ad Infuse had no material effect on
our results for the first half of the year. Integration of Velti and Ad Infuse
to provide improved services to clients is well underway and the first results
are very encouraging.


To provide funding for Ad Infuse and general financing for the future, Velti has
secured two new medium term facilities totaling approximately EUR10 million. The
facilities are being provided by a special purpose vehicle backed by a group of
institutional investors. The company has issued 875,000 new shares of 5p each to
the group in lieu of arrangement fee. Application has been made for these shares
to be admitted to trading on AIM, which is expected to occur on or about Friday
3 July 2009.


David Mann, Non-Executive Chairman, said: "I am delighted that we have secured
new medium term facilities and demonstrated our ability to tap different
financing markets. These new facilities, together with our existing credit
lines, are allowing us to take advantage of key opportunities for the further
development of the business.


Alex Moukas, Chief Executive added: "As a result of investments in the past,
Velti has already become the largest and most profitable player in the global
mobile marketing and advertising space; able to offer solutions for campaign
planning, execution, analysis and reporting. We believe that this uniquely
positions the company at an inflection point between ad agencies, brands and
mobile operators, which are all critical elements of the industry. We see the
skills brought to us by Ad Infuse as being important in our plan to achieve
this."


The company will announce interim results for the 6 months ended 30 June 2009 in
mid-September 2009.

[deucetoace] 12/6/2009 10:42

V nice move up, perhaps ahead of a TU which last year was 1st July. Given Q1 was over 50% ahead in revenue terms (and hopefully more in EPS terms) the TU should make v good reading - I have bought a few more.

[nurdin] 11/6/2009 14:13

Preparing for a lift off...:o)

[nurdin] 29/5/2009 11:10

Over the last year, Velti has raised its profile considerably, creating marketing campaigns for major brands like Coca Cola, MTV and Disney. It now plans to integrate Ad Infuse's personalisation and ad routing/serving technology within its own Mobile Marketing Platform (MMP).

[nurdin] 29/5/2009 10:58

Veltis mobile marketing platforms seem to have helped get Obama elected :o)

[nurdin] 13/5/2009 06:47

There is also a hint in that statement on current trading:

Velti recently announced strong 2008 organic revenue (up 164% on 2007) and
profits growth: sales reached $70 million, with an EBITDA of $17 million.
Revenues in the first quarter of 2009 are expected to be more than 50% higher
than Q1 2008. Velti's balance sheet continues to demonstrate strong cash and net
assets positions and the company will fund the acquisition in cash using
existing and pre-arranged resources. Management expects that following modest
dilution in 2009, the transaction will be EPS enhancing in 2010, the first full
year after closing...

More than 50% up on last year for Q1..that is some advance !!

[nurdin] 13/5/2009 06:37

Blimey,how did I miss that? Cheers Steg....

[stegrego] 13/5/2009 00:07

News today and not a peep on the BB.

Acquisition of Ad Infuse

Doesnt say how much they paid other than its from Cash and pre-arranged resources.

Management expects that following modest dilution in 2009, the transaction will be EPS enhancing in 2010, the first full year after closing.



Ad Infuse' s leading mobile ad serving and routing technology platforms enable advertisers, publishers, brands, and operators to place mobile ads on multiple networks and manage them in real-time. Ad Infuse works with leading advertisers, publishers, and operators in the US and Europe, including: Procter & Gamble, Dell, AT&T, Disney, Swisscom, France Telecom, Orange and Microsoft.



Says a Velti company on the web logo - bloody hell they moved fast on that one!

[nurdin] 07/5/2009 07:41

cheers Steg....way undervalued imo.Broker has a target price of 300p which is more reasonable.

[stegrego] 05/5/2009 19:34

GCI 6/3/09

Velti – looks good value

Another sound of balance sheet is Velti, the Greek-technology concern behind a mobile marketing technology platform used by 'blue chips' including Pepsi and Pernod Ricard.

Following a half to June 2008 in which the company grew sales by 115 per cent to €16 million (£14.3 million) and operating profits by 86 per cent to €2.6 million, it sat on a net cash pile of €4.26 million (£3.8 million). Robust in terms of cash, a more recent end of year update flagged up 2008 sales growth of 125 per cent to more than €45 million, bettering the expectations of City number crunchers, who expect pre-tax profits of €8.2 million for last year ahead of €13.1 million for 2009.

Expanding profitably, Velti looks nicely placed with global clients increasingly shifting their advertising spend to highly measurable mobile channels in the midst of this savage downturn.

Based on the 2009 €0.29 (26p) earnings forecast, the 117p shares are trading on a lowly prospective of 4.5 times, despite the fact this growing business is outperforming many a peer.

[stegrego] 05/5/2009 16:25

Just found this on a screen - looks interesting.

Nurdin, got any research you can point me to?

Ta

(looks like i should have spotted it a couple of weeks ago, but presumably plenty left in the tank)

[nurdin] 04/5/2009 08:02

''Market research firm ABI Research expects worldwide mobile marketing to jump from $1.8 billion in 2007 to $24 billion in 2013...''

It is little wonder that Veltis revenues have been doubling yoy since 2005

[nurdin] 01/5/2009 12:14

Someone taking a keen interest in VEL judgng by the trades yesterday and the 12,670 trade today.