Small Cap Value Report (Fri 31 May 2019) - MRS, TLY, BOOM, LOOK, STR, CAY

Friday, May 31 2019 by
54

Good morning!

Not many of our usual types of companies are reporting today. With the May half-term, lots of people are away at the moment, and the mood is quiet on the RNS.

This list is evolving:




Management Resource Solutions (LON:MRS)

  • Share price: 2.95p (unch.)
  • No. of shares: 223 million
  • Market cap: £7 million

Update 31 May

This share lies outside my investable universe of stocks: it's an Australian mining services group. Not my bag.

But I've been aware for some time of a grassroots shareholder campaign to eject the Chairman and the Finance Director.

This campaign was catalysed by certain transactions, in particular the purchase of a start-up company for £1.3 million from individuals described as "close business associates" of the Directors.

In the end, the campaign failed at a general meeting, on a high voter turnout. Its motions were defeated by 16 million votes, less than 10% of shares outstanding. Close, but no cigar.

Today, the Board confirms there will be an independent legal review of the controversial deal. This is on top of an independent valuation report.

What do I think of all of this? Well, I try my best not to get involved in this sort of thing. If I think that the wrong people are running a company, that will pretty much ruin my interest in it. Why go to all the effort of running a campaign to replace management, when there are plenty of decent management teams running other companies that we can invest in?

So the most obvious strategy is to avoid and sell shares in companies with the wrong people running them.

There certainly is a place for shareholder activism to remove directors, but I would use it only as a last resort, and with great reluctance. 

The MRS campaign nearly succeeded, so it's understandable why the activist shareholders thought that they had a chance and went to the effort of organising it. Now that it has been shown they…

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Disclaimer:  

All my own views. I am not regulated by the FSA. No advice.

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Management Resource Solutions PLC is a United Kingdom-based company engaged in the supply of technical and strategic services to external organizations in project management; health, safety, environment and quality (HSEQ), and engineering. The Company's segments include Papua New Guinea and Australia. The Company's services include maintenance support, mining support, labor hire and civil support. The Company's maintenance support is designed to cater for workshop operations and facilitate onsite maintenance/repair servicing. The Company offers a range of resources that directly support mining across every phase of the mining cycle. It offers a range of labor hire to the mining industry to support the mining workforce. The Company provides wet plant hire solutions with low hour equipment and operators, which provide earthworks solutions. The Company provides a range of structural repair and fabrication services for mining equipment, components and machinery. more »

LSE Price
2.55p
Change
 
Mkt Cap (£m)
5.0
P/E (fwd)
n/a
Yield (fwd)
n/a

Totally PLC is a holding company. The Company is engaged in the provision of solutions to the healthcare sector. Its segments include Innovative Solutions to the healthcare sector and Head Office Costs. The Innovative Solutions to the healthcare sector segment represents the operations of Totally Health Limited (Totally Health). The Head Office costs segment represents central costs that are offset by internal cost recoveries. Totally Health provides personalized Clinical Health Coaching to support patients with long term health conditions, and manages outcomes and healthcare costs. The Company offers My Clinical Coach, a direct-to-consumer health coaching service for people with long-term health conditions. The Company's subsidiary, Premier Physical Healthcare Limited, provides a range of treatments and advice for musculoskeletal injuries and conditions. The Company's subsidiary, About Health Limited, provides community-based health services. more »

LSE Price
9.65p
Change
1.6%
Mkt Cap (£m)
17.3
P/E (fwd)
7.2
Yield (fwd)
n/a

Audioboom Group plc operates an audio platform for hosting, distributing and monetizing content. The Company works with approximately 2,400 active broadcasters, content creators and podcasters around the world, and hosts in over 7,400 content channels. The Company's hosting and distribution platform allows partners to embed, share through social channels and re-syndicate their content. The Company receives over 40 million listens per month. It also works with its partners to monetize their audio through live in-reads, the dynamic insertion of pre and post roll audio adverts and video advertisements. Its audio, cloud-based, software as a service (SaaS) platform enables the creation, broadcast and syndication of digital audio content across various devices, networks and geographies. Its subsidiaries include Audioboom Limited, Audioboom Inc, One Delta Limited and Audioboom Pty Limited. more »

LSE Price
210p
Change
4.2%
Mkt Cap (£m)
28.2
P/E (fwd)
n/a
Yield (fwd)
n/a



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


6 Comments on this Article show/hide all

mercury61 31st May 1 of 6
2

Audioboom (LON:BOOM)
Final audited results for 13-month period ended 31 December 2018
Financial highlights
· Revenue increased 92% to US$11.7 million (12 months ended 30 November 2017: US$6.1 million), with significant growth in the final three months of the period
· Adjusted EBITDA* loss reduced to US$5.1 million (12 months ended 30 November 2017: loss of US$5.6 million), with much improved performance in the final three months of the period
· Group cash as at 31 December 2018 of US$1.6 million (30 November 2017: US$1.0 million) - operating cash flow breakeven achieved in the final three months of the period
*earnings before interest, tax, depreciation, amortisation, share based payments and before material one-off items (including the costs of the aborted Triton Digital transaction and corporate restructuring)

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MrContrarian 31st May 2 of 6
17

My morning smallcap tweet: Bagir suit loot pursuit reconstitute dispute

Stride Gaming (LON:STR), Nautilus Marine Services (LON:NAUT), Bagir (LON:BAGR), Audioboom (LON:BOOM)

Stride Gaming (STR) - approach by Rank at 151p.
Nautilus Marine Services (NAUT) proposes delisting. Already has 73% in favour.
Bagir Group (BAGR) suit mfr Shandong Ruyi has failed to pay the remaining cash payment of $13.2m to acquire 53.7% nor met other commercial commitments. Wants extension to 18 June to renegotiate. Board agrees but clearly pissed off.
Audioboom (BOOM) FY & trading Q1 ahead of management expectations with rev up 180%. Hang on, BOOM said that in April. Misleading to still says ahead of management expectations.

| Link | Share
tomps3 31st May 3 of 6
1

Charles Stanley (LON:CAY) FY19 results overview by Paul Abberley, CEO & Ben Money-Coutts, CFO (video)

FUM +6.5%. EPS +3%. Medium term target 15% profit margin.

https://www.piworld.co.uk/2019/05/31/charles-stanley-cay-full-year-results-2019/

| Link | Share
AlanJenkins2 31st May 4 of 6

Patagonia Gold announces share exchange scheme with Hunt Mining.However,Hunt Mining is loss-making and has a lower market cap than Patagonia.

| Link | Share
Nicowilson 31st May 5 of 6
5

Later RNS states that takeover of Stride Gaming (LON:STR) by Rank (LON:RNK) is agreed

| Link | Share
Graham Neary 31st May 6 of 6
4

In reply to post #479696

^^^ thanks for the summary of Audioboom (LON:BOOM) this morning. I wasn't terribly impressed, as you will see! G

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 Are LON:MRS's fundamentals sound as an investment? Find out More »



About Graham Neary

Graham Neary

Full-time investor and independent analyst. Prior to this, I spent seven years in the financial markets as an analyst and institutional fund manager. I'm CFA-qualified, also holding the Investment Management Certificate and the STA Diploma in Technical Analysis.Away from finance, my main interests are recreational poker and everything to do with China, especially Mandarin Chinese. more »

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