I Read The News Today Oh Boy! 2-Feb-2018

Friday, Feb 02 2018 by

Morning All!

Quite quiet out there this morning.

Maintel Holdings ( Maintel Holdings (LON:MAI) ) – 690p – £90.9m – PER 7.46

Trading Update For The 12 Months To End December 2017 – In-line with Revenue marginally ahead of expectations and Net Debt position also better than expected. Reflecting continued confidence in underlying cash flows and the longer-term prospects for the Group the total FY Dividend will be increased 10% YoY, in line with existing guidance. Confident of delivering substantial growth in revenue and EBITDA in 2018.

Quite attracted by this, the main thing putting me off is the poor Operating Margin. Will remain Neutral here for now.

Rotala ( Rotala (LON:ROL) ) – 57.5p – £26.9m – PER 8.12

Trading Update For The 12 Months To End Novmeber 2017 – In-line, Net Debt still circa £27m. Expects next years revenue to be up but the “Bus Services Act 2017” creates uncertainty.

I looked at this company once before (it’s below my usual Market Cap (£30m) but it was a quiet day news wise so decided to have a look) and my opinion hasn’t changed much. Why is a company with a PBT of about £3m running a £25m+ Net Debt position (the same as it’s Market Cap) and paying a Dividend of 4%+. Why not ditch the Dividend and pay down the Net Debt. If this was a debt free company it would be much more attractive than it is now. It’s on my Avoid list.

IDE Group ( IDE Group (LON:IDE) ) – 27p – £56.2m – PER 17.5

Trading Update For The 12 Months To End December 2017 – 50% revenue growth to £65.3m (2016 £43.5m), including organic growth of 18%. Performance broadly in line with expectations, which is to deliver revenues of approximately £65 million (2016: £43.5million) and trading EBITDA in the region of £6.7 million (2016: £5.9million) for the full year. Net Debt is £9.9m and a major cost reduction programme was launched on 2 January 2018, target £3.5m cost reductions, benefits should start to come through before the end of March 2018.

The EBITDA increase is poor compared to Revenue growth (and there’s no mention of actual profit). This could be…

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Maintel Holdings Plc is engaged in the provision of contracted managed services, the sale and installation of telecommunications systems and the provision of fixed line, mobile and data telecommunications services, to the enterprise business sector. The Company operates through three segments: telecommunications managed service and technology sales, telecommunications network services and mobile services. Its managed services and technology division provides the management, maintenance, service and support of office-based voice and data equipment across the United Kingdom and internationally, on a contracted basis. It also supplies and installs voice and data equipment together with providing professional and consultancy services. Its network services division sells a portfolio of services, which includes telephone line rental, inbound and outbound telephone calls, data connectivity, Internet access and hosted Internet protocol (IP) telephony solutions. more »

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IDE Group Holdings PLC, formerly Coretx Holdings PLC, is a United Kingdom-based specialist managed service provider. The Company provides a broad portfolio of information technology (IT) services and technology solutions. Its services include cloud and hosting, network and connectivity, collaboration, cyber-security, managed services and device management. Its cloud and hosting services include co-location, private cloud, public cloud, hybrid cloud and cloud migration. Network and connectivity services include multiprotocol label switching (MPLS) network, cloud connectivity and wireless. Collaboration services include hosted telephony and unified communications. Cyber security services include security operations center, endpoint and threat protection. Managed services include remote monitoring, systems management and engineer field services. Device management services include procurement, build, deploy, manage, refresh, redeploy and retire. more »

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Rotala Plc operates commercial and subsidized bus routes for businesses, local authorities, the public and private individuals. The Company is engaged in the provision of bus services. The Company offers contracted, commercial and charter services. Its contracted operations service two types of customers, including individual organizations and local authorities. The Company offers commercial services in the West Midlands, the South West and the North West. The Company also provides a transport management service to a range of customers. Typically this covers business or service disruption, and event management. The Company operates approximately 600 vehicles. The Company's registered bus services carry over 29,000,000 passengers every year. In addition, it operates a range of corporate transport contracts and private bus networks. The Company's operations are across areas in the United Kingdom, including West Midlands, Worcestershire, South West, North West and London. more »

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  Is LON:MAI fundamentally strong or weak? Find out More »

2 Posts on this Thread show/hide all

MrContrarian 2nd Feb '18 1 of 2

My morning smallcap tweet: Bear bullish.

Northern Bear (LON:NTBR)

Northern Bear (NTBR) Q3 trading strong. Rev and adj pretax (cont) are currently ahead of management expectations and prior year. I hold.

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Beginner 2nd Feb '18 2 of 2

Don't worry about the debt at Rotala (LON:ROL) if you are interested in the company. As a transport firm debt is essential to running a profitable company. Do you really want to OWN a fleet of 'buses that eventually end up with zero worth?

The company is well run, and conservatively managed. Management own c38% of the company, and as they pay themselves reasonable salaries the dividend is maintained at a higher level than might be expected. If it goes sub-50 again it should be worth buying. i missed it last time!!

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