Good morning! Let's start with two companies that have dropped this morning on disappointing announcements.
Seaenergy (LON:SEA)
Share price: 15.4p
No. shares: 56.4m
Market Cap: £8.7m
Trading update - this is a rather odd collection of small, sub-scale businesses. However, one particular subsidiary, called R2S did look interesting - it provides software which integrates detailed 3D photography of client premises (e.g. oil rigs, large ships, factories) into the client's database of service & repairs. So it's a visual interface for maintenance records. Growth had looked quite exciting, but since their main market is oil rigs, it's not surprising that the company today reports that business has become more difficult.
Overall, they say that 2015 will produce a "broadly comparable performance to 2014". So a bit below then.
The ship management subsidiary always looked a non-starter, and the penny seems to have dropped with management at long last, and they today say that it is non-core, and "management are reviewing exit strategies".
If I held shares here still, I'd want to see management reviewing their own exit strategies, as they've made a hash of things here, to be blunt.
Outlook - some hope for the future on international expansion;
(had to remove this picture, as it corrupted the text)
My opinion - the group strategy here didn't make sense from the start - a tiny group, trying to do lots of different activities, and ending up doing none of them well enough.
I think there's a strong argument for jettisoning everything apart from R2S, kicking out all the plc Directors, who have turned out to be a large overhead with questionable benefit (in my opinion), and instead focus the stock market listing on the most promising subsidiary company alone, with leaner overheads, R2S - as that's where the growth is likely to come from.
Intercede (LON:IGP)
Share price: 94.5p (down 11% today)
No. shares: 48.4m
Market Cap: £45.7m
Final results for y/e 31 Mar 2015 - we saw yesterday how GB Group (GBG) is rated very highly, as it operates in a sexy growth sector, namely online identity verification.
Intercede seems to be more about online security. This is part of the section on how they describe themselves;
The figures reported today look poor. The company complains about lumpiness of orders, and reports turnover down nearly 10% to…
