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Board obviously concludes there's a lack of understanding of the manner and extent to which their products drive down customers costs, to have clients involved in what is essentially an investor presentation geared at further widening the investor base over time.
It is a case of no news ( so far ) being good news. The greater the number of professional investors with relatively smaller holdings the better. MXCP possibly now has sufficient cash for it's next acquisition with Liberty Global. I can only guess at that. It seems probable they will sell more in due course, and once again in a single transaction. MXCP will not want a drawn out process. Those matters are irrelevant to company progress.
Castleton is progressing very satisfactorily. It has made and integrated it's acquisitions, and achieved a strong and growing customer base into which to sell it's broad and developing range of complementary products. Dean Dickinson is incentivised by his personal holding and option share price growth, and an ambitious LTIP put in place to reward senior managers. Confidence and forward visibility on cash generation is now such that there is an intention to implement a progressive dividend policy during the current year, whilst still fulfilling growth plans. It is still in the early stage of cross selling, in the UK, ROI and Australia, and in the very early stage of achieving multiple product sales, following referenceability of it's fully integrated product set. News of a further multiple product sale may not be far away. Underpinned by a model based on cumulative repeat revenue, and a stabilising cost base, the next year should show continued growth, with the share price following.
Still waiting for a clue on who picked up Mxc shares, sale of 7mil shown on 20th in one trade. All we have to work with, but still some other large numbers traded, like on 19th. Nothing new to have unanswered questions on these large trades, but it's interesting. If no RNS very soon, forced to conclude somebody not complying with transparency directives, tardy, or gone to under 3% holders. But they've all gone somewhere at the price, so that's the main thing.
Rising on the backs of the results RNS contents, and the MXCP disposal ( having already disposed of their former evergreen option)
RNS. Chelverton go to 5.39%. They seem to have struggled with the TR1.
I interpret those 4,250,000 shares as being the 3,875,000 ( 4.91%) they held when major shareholder list updated in March, with an additional 375,000 shares added. So it appears very little of Mxcp's 8.8% sold went to them.
Chelverton UK Equity Growth Fund
http://chelvertonam.com/fund/pfs-chelverton-uk-equity-growth/?user_approval=y
Mxcp sale is a result long term for Ctp. I hope Kestrel has not bought a single share, and that the investor base is broadened as much as possible. If they have, there will be a fairly swift RNS.
Haha. Ctp could turn down an offer! But that's not happening.
Haha. Ctp could turn down an offer! But that's not happening.
I can only comment that for reasons given earlier it's most unlikely to be Kestrel. That would put them around 30%!
I can only comment that for reasons given earlier it's most unlikely to be Kestrel. That would put them around 30%!
I wonder who the buyer of all those shares sold is to be? There must be another holding RNS soon as the sp has held up, even risen.
And of course, all those shares are starting again at this new price for the buyer(s) Growth company paying dividend.
MXCP sold some of their holding as per. RNS and as 'foreseen ' yesterday. May get some info as to who bought them.
Anyway, the tobogganing Chairman added today. He's after the divi.
The investors presentation some time ago was to widen the shareholder base. Sellers and buyers both have a price. For one to buy and another to sell in large amounts requires agreement. I have always thought that Kestrel may be holding more than ideal, trading sometimes as they do, and MXCP may wish to realise some gain for one of their new projects. Like FinnCaps target price, results time, particularly when announcing plans for a dividend, is an opportunity to set a new base going forward. It may not be over yet but it seems to me this is the new starting price.
That's a pretty good stab at consolidation Raleigh! Should, maybe, get to see who's doing what. If they've finished, maybe we can get on with some rise that we should have had yesterday.
Lots of bits of detail today, but I think this from the results RNS sums it up pretty well for when the company next reports in November. "With the team now in place, which has been much enhanced during the current year, a broad customer base, a wide range of products and services and solid cash flows enabling repayment of debt, I am confident of our future success and I expect that the Group will show further growth when it next reports. Given our confidence in future prospects, the Board intends to implement a progressive dividend policy during the current year."
Interesting day. Castleton has seen revenue increase by 15%, with contribution from both Divisions. Profit after tax has multiplied by 8, but a truer reflection is the before tax figure, which if you like, is four times to the good. Debt has been paid down, and MXCP paid off. Kinetic was acquired to enable Australian growth. The exclusive IP of Strategic Modelling has been acquired from Brixx, and I read that that is another differentiator in the market. As I have mentioned before, the £600k payments for Agile mobile will stop at the end of this financial year, and they will have taken into account the final payments to dispose of that. The board has the confidence to invest in infrastructure and future software development work, and there is a clear future roadmap. Overall confidence is sufficiently high to announce the intended payment of a maiden dividend, which I did not foresee as being on the cards quite yet. It is a pleasant surprise. FinnCap has, as I thought they might, increased the target figure to £1.25. That is no surprise, taking into account the real progress, and aspiration reflected in the LTIP, which will have had to be seen as achievable both by the Board, and by the senior managers to whom it relates. The share price is resolutely stuck at the time of posting. It is my opinion that a decision has been made to consolidate at this level, and widen the investor base. We may learn more about that over succeeding days.
More of the same from them, but with a little more insight into the future on new products. http://www.techmarketview.com/ukhotviews/archive/2018/06/19/castleton-makes-more-progress Incidentally, Indian interests were mentioned at the Castleton Sales Conference, but I didn't know what it was about. The inference was that it would help drive the business forward at the end of this and in next financial year.
Progressive dividend. Will increase each time AT LEAST in line with the earnings per share. This makes the share very attractive for fund portfolios.
Thanks LBG. When they mention a firm intention to pay a dividend as opposed to considering it you know they're confident of future cash generation. And as you say, a further incentive to potential investors. Hoping for some comment from the pundits now.
FinnCap ups target price to 125p ( as forecast by Raleigh ) and progressive dividend police ( as mentioned previously, thanks ) Castleton Technology swings to profit as it acquires financial modelling platform Share 08:27 19 Jun 2018 The AIM-listed software and managed services provider reported a pre-tax profit for the year of £1.8mln, up from a £0.5mln loss the previous year Laptop The firm also said it would implement a progressive dividend policy in the current year Castleton Technology PLC (LON:CTP) has swung to a profit in its full-year results as it exercised its option to acquire the financial platform upon which its modelling solution is based. The AIM-listed software and managed services provider reported a pre-tax profit for the year of £1.8mln, up from a £0.5mln loss the previous year, while revenues climbed 15% to £23.3mln from £20.3mln. The firm also said that it intended to implement a progressive dividend policy during the current financial year. In its outlook, the group said although its level of penetration across its customer base was low, this represented a significant opportunity for development and was accompanied by a strong pipeline of new business. The firm added that it had established a long-term incentive plan to incentivise its senior management team to create shareholder value. The plan provides for the options to vest in stages dependent on the share price growth, with full vesting being dependent on the group's share price growing at 40% per annum over a three-year period from a base price of 68p. Acquisition of strategic modelling platform In a separate announcement, Castleton said it had exercised its option to acquire an exclusive, perpetual and assignable licence in relation to the platform upon which its modelling solution, Castleton Strategic Modelling, is based. The group said the £1.6mln acquisition from Brixx International Ltd would mean no further license fees would need to be paid and would result in a margin increase of £0.3mln per annum in relation to sales of the Castleton Strategic Modelling. The firm also said it had agreed to pay Brixx International £0.06mln for further development of the platform. In a note to clients, analysts at City broker finnCap upped their target price for the group to 125p from 90p, saying the results “describe a growing, profitable, cash generative business, with a balance sheet able to support further investment and enable board consideration of a maiden dividend”. They added: “77% of FY18 sales were into the existing customer base, and 60% of clients still take one product, showing the evident cross sales opportunity”.
Worth a watch. No doubt investors have. This current financial year FinnCap give £26.3m revenue and £5.2m PBT. I can well believe the former and they were spot on for these results. The latter, well, much better than this year anyway. But there won't be as much tax credit for the bottom line. Now watched the video. Repeat of encouraging figures and prospects. Castleton now truly a one stop shop for housing associations. Multiple product sales increasing by cross selling, and only 30 new associations to go to get to their 700 target to optimise cross selling. The new Business Intelligence product sales starting to move well, and prospects for the new Data Cleansing. Continually developing existing solutions, and outsourcing some development work to enhance their capability, speeding up delivery of planned new solutions. Pleasingly, they have a backlog of orders on which they are yet to deliver ( presumably they will be delivered in a timely fashion for this quite slow moving market ) It is Mr. Dickinson's view that business will also be driven by Govt. edict on efficiency, requiring more and better digital systems, and compliance. They say all is well set up for the current year. They have already said it is ' comfortably' in line with expectations.
If CTP can achieve 40% with the carrot of the LTIP to the management then this share is ideal. Too many investors want huge returns next week. Well 40% is huge. My yearly target for my portfolio is 42%. 42% doubles my funds every second year. So if the target price is hit in 3 years time, and you bought at 68p, you will approximately have tripled your investment. Atb
CTP is doing well and in-line with expectations. Sounds a little boring but when you look at facts that want to increase the share price by 40% each year for the next 3 years. This started at 68p on 22March. First years target price 95p Second year target price 133p Third year target price 186p Making dividend progressive will bring in more investors too. Keep up the posting Aphrodite, I read them all.