Good morning!

To get you started today, here is the link to yesterday's article. I updated it in the evening, having run out of steam during the afternoon. It now covers;

Ab Dynamics (LON:ABDP) - results

GAME Digital (LON:GMD) - results (I added more to this section)

Wey Education (LON:WEY) - unnecessarily deep discount on placing

Walker Greenbank (LON:WGB) - profit warning


On to today's news...

NB. I tend to update the article header to show what companies I intend reporting on. So please refer to this before posting comments below requesting me to cover companies that I'm already intending to report on. Thanks!


Keystone Law

Intention to float - this announcement caught my eye this morning, and might be potentially interesting. Although I got burned on the disaster that was Fairpoint, which went to zero in the end. So I'm very wary of legal services companies.

Key points;

AIM, ticker "KEYS"

Expected to commence trading on 27 Nov 2017

Placing price 160p

Total shares after placing, 31.27m, market cap of £50.0m

Raising £15m (before costs) - of which £5m goes to the selling shareholder, and £9m goes to the company, however this is mostly (£7.4m) to be used to pay off shareholder loans. So in effect, most of the placing monies are to cash out the selling shareholder. Generally I dislike situations where an existing shareholder is using an IPO to exit, because quite often problems subsequently emerge.

Company will be debt-free after the above transactions.

Panmure Gordon is broker & nomad.

The business model is a disruptive legal firm, with its lawyers being self-employed and working from home. Therefore its central costs are low, and fixed. Also, the suggestion is that it can grow profits in future, from operational gearing - due to having fixed costs.

Good 3 year growth of 20%+ p.a.

Results for y/e 31/1/2017 - revenues of £25.6m, EBITDA of £2.1m - grrrr, why on earth do companies give us EBITDA, and not proper profit? This is such an annoying trend.

I would want to see proper numbers before considering investing here, which would be in the admission document. A point to note is that when private companies…

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