Hi all,
I've noted the frequent (not quite daily) purchases of Uls Technology (LON:ULS) stock by Kestrel Partners , with a ULS 's NED as a beneficiary of theirs.
They are now up to 28.5% holding which has grown from about 22% over the last couple of years.
I'm sensing that this is a directed move rather than a simple holding, does anyone know of any background here?
Is there a threshold over which they are obliged to make an offer for the company?
thanks for any thoughts.
I may have answered this for myself now, but I'd still welcome any other thoughts on a background here or any known circumstances that are applicable.
credit to Burges-Salmon for the detail
I was looking at this company yesterday, seems interesting. I don't know that I love the actual company but it seems like it could be a short-term trade. Have bought a small holding to see where it goes.
Thanks for flagging it.
Had a look at Uls Technology (LON:ULS) myself recently. This is either a very good investment opportunity or I am missing something here:
£52M Market Cap, £25m cash post sale of CAL in Nov 2020. Existing eConveyancer business worth >£25m. New DigitalMove platform is not valued by the market, however it’s getting quickly adopted by the industry and has potential to significantly rerate this stock.
Management seem to be very excited by DigitalMove.
"Accelerated Investment to monetize DigitalMove. While DigitalMove firmly helps enhance our existing platforms, we also believe that it has huge potential as a standalone product and that there is significant opportunity for it to become the leading player in the conveyancing digital client-interface market. Initial feedback and case statistics have been very positive and as a result of expressions of interest from a number of conveyancers to integrate their case management systems with DigitalMove, we believe that now is the time to capitalize on this opportunity. Therefore, we plan to utilize existing cash facilities to accelerate the development of DigitalMove as we significantly increase the resource devoted to this new product. In the short term this investment is expected to impact Group profitability by circa £1 million in the next financial year before the product starts to generate significant revenue and margin later in the development plan. However, we believe that this is a unique opportunity for the Group and that time to market will be a decisive factor in determining the extent of the success of the product. The accelerated investment is a key driver in the Group’s new ambition to double profitability within three years of the investment, a target which we expect to be able to achieve from internally generated cash flow. Importantly, DigitalMove presents a substantial new revenue opportunity. We aim to have an annual run rate of over 50,000 incremental transactions going through DigitalMove by the end of FY21 and to be starting to earn revenue from some of those transactions by that point. The Group is determined to take advantage of this unique product and looks forward to updating shareholders on the acceleration of investment over the coming months."
