Good morning!

Things I've been looking at:



Pebble Beach Systems (LON:PEB)

  • Share price: 3.7p (-1%)
  • No. of shares: 125 million
  • Market cap: £5 million

Trading Update

We used to cover this when it was known as Vislink (VLK), so I'm curious to see how the story will end.

It now claims to be a world leader in broadcasting software.

I see that it issued final results for the year ending 31 December 2017 on 25 June this year - terrible.

H1 revenues this year are lower than last year (£3.9 million vs. £4.6 million). The backlog and pipeline will hopefully lead to an improved H2. There is no reference to performance versus expectations.

When I saw the wheels come off at Vislink, I assumed that it was going to go bust. Miraculously, it has avoided that outcome (through disposals) and even managed to avoid diluting shareholders. The share count has barely increased in recent years.

But that doesn't mean the existing equity is worth terribly much. Net debt of £10 million was recorded at December 2017 (twice the current market cap) .

I don't consider this investible at present but I'll keep an eye on it, to see if any signs of life will emerge now that it has been restructured.



Harvey Nash (LON:HVN)

  • Share price: 130.5p (+17%)
  • No. of shares: 73.5 million
  • Market cap: £96 million

Recommended Cash Offer

A takeover offer for this international recruiter from Dbay Advisors, its largest shareholder.

Note that Dbay appointed a Director to the board of Harvey Nash last year, so he is not independent when it comes to this proposal.

The offer is at 130p plus an interim dividend of 1.75p that would have been paid in November anyway.

To go ahead, the shares not already owned by Dbay will have to vote in favour of the deal, with a majority of at…

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