Section Items

Clarification
The comments on this page are some of the thoughts that I had when considering this company and not a recommendation to take an action or to refrain from taking an action.

As you know we have no information about your circumstances, understanding of your investment goals or the level of risk that is acceptable to you. So it would be completely unreasonable to read these commentaries as recommendations.
Is This Just Pump And Dump?
I may or may not own the shares which have commentaries on this site.

Commentaries tend to be created when I look at a share and decide if it is one that I want to buy either now or when I next have an unallocated pot.
Financials
As companies often report numbers in slightly different ways there are a number of entries to cover this and as these are rough notes there will usually be empty items.

The debt columns are shown as positive values if there is any debt, all other negative values are shown within parenthesis and without a sign.

Commentary On ITE Group plc

Title: Hyve – A Rights Issue After All
Company: HYVE - ITE Group plc
Share Price Then: 15p
Author: Ian Smith
Date: Tue 12 May 2020
Comments: Hyve have just announced a £127m rights issue along with a share consolidation.

Fully underwritten rights issue of up to 9 New Ordinary Shares at 69 pence each for every 40 Existing Ordinary Shares, equivalent to 9 New Ordinary Shares at 69 pence each for every 4 Consolidated Ordinary Shares

I dislike share consolidations even though they don’t actually do anything, all too often they are a way to hide previous mistakes that hit the share price.

The plan in this case is to do a 10 for 1 consolidation taking the share price to around 150p which would be twice its typical value over the last 5 years and then roughly double the number of shares in circulation bringing it back to a price that the companies share holder’s are used to.

In other words they are hiding a "real" share price of around 7p.

The interim accounts look terrible but they do include £166.8m of non-cash impairments as a result of the coronavirus outbreak.

A £146m of the impairments were Impairment of goodwill £124m and Impairment of intangible assets £42m which seems like a very tidy tax loss for the future.

Post the rights issue it seems likely that the company will be reporting COVID has shut down or reduced attendance at their events for quite a while.

This suggest to me a share price that could easily just drop and drop yet if 2021 starts with all scheduled events taking place then the company seems well placed.

Monitoring the share price along with COVID 19 seems to suggest that there may be a time towards the end of the year where buying would make sense.
Financials:
ItemCurrent PeriodPrevious Period
Year20202019
Period6 Months6 Months
Revenue£96m£108m
Earnings
Adjusted Earnings
EBITDA
Adjusted EBITDA
Statutory Profit(£168m)£2m
Adjusted Profit£20m£24m
Total Debt
Net Debt£157m£109m
Read Count: 146

Commentary History

Date Ticker Title
Tue 12 May 2020HYVEHyve – A Rights Issue After All
Fri 24 Apr 2020HYVEHyve Group PLC – FTSE 250 Event Organiser.