Having got kicked by Carillion in the past week or so, have decided to lower my risk profile and have sold my 12,000 share holding today. Made a healthy 25% profit over 2 years so happy with that. Switched the proceeds into an initial purchase of Playtech. Wise? Time will tell. Good luck all still holding here and bye for now...
The RSN has a tantalising mention of Virtual Reality. OM are look like the market leaders in this motion capture software and I believe that if they can apply it to VR then there's huge potential. Ignoring the VR it's a hugely positive step to be launching the new software to coincide with the new strategy of concentrating on selling these core products.
However looking at the last year going back to December 2015 there have been 3 million director sales and only 0.1 mil buy - The company has paid out good dividend past 2 years no doubt - the yeild/ and the books look good - news have been far and apart.
Anyone any contribution to what lies ahead? Any price traget on this ?
Its 14:00 and nothing as of yet - or do they publish the results at the end of the business day?
Or has Mr. Bolton overslept today ? because they were all celebrating last night what a good year its been?
Can anyone please shed some light on this - my keyboards F5 key is kinda wearing out
Yes I quite agree, the spinning off of the IP into a compant to be eventually led by the founder Julian Morris is very interesting. It is becoming ever more apparent that this company is very rich in technologies and all credit to the founder for this. However, his move to the spin-off IP company suggests to me that he may feel more comfortable in a technical start-up role rather than commercialising products and services. It seems to me that the big change at OMG over the past few years has been in its ability to monetise its technologies and this process appears to be continuing.
The interims are full of positive facts and descriptions.
The hiving off of IP re imagery and robotics looks interesting.....
The actual monetary value I suspect will be relatively minor initially <0.5m but i think it is interesting that they are deciding to hive off as this means they are focused on having a simple and clearly focused plc which will command a higher rating than one which includes 'speculative play technology' - note how the founder is becoming a NED. this is a significant change of status for the plc i feel.
The 2 underlying businesses are performing well - both +20% in profit terms, almost +10% in revenue terms and OMG confident of the future.
They also seem quietly confident re the commercialisation of Life in 2016 92 engineering projects) and this could be a catalyst for a further re-rating.
As before, net of CASH the business is on a fcst p/e of 10x despite being a growth business in good sectors and significant value to be released from the IP in Life.
Not sure about another special dividend but there could be a little news which might provide further insight into the value of the company's technology in consumer devices such as cameras & mobile phones. I have recently become a shareholder at a price just below the IC's March 2016 buy tip. For me, the company ticks most boxes as the founder still has a sizeable stake (has not sold any recently) and it appears to be quite conservatively run, with plenty of cash and no net debt on the balance sheet. I also like the fact that the company is profitable and addresses world markets, some of which it appears to have a strong or dominant position in. There is also the "blue sky" upside which may result from applying the company's technology to consumer devices. It also seems to me that the the 50% increase in the share price since the fully subscribed placing at 29p in July 2013 is no more than would be merited by the improvement in financial performance since that time. In other words, I don't think the company is being overpriced by the market and this tends to be confirmed by the p/e ratio. Negatives are that the return on capital invested has not been good up to now, but is improving, and I would guess that the loss of a couple of key contracts could have a material impact on the company's financial performance.
"LSE:OMG:OMG has always thrown off lots of cash, but it's almost drowning in the green stuff after selling its defence software division for $25 million (Â£17 million) in April. There was another special dividend in these full-year results, with ..."
I've decided to take a plunge and have bought 12,000 shares at 47p this afternoon. A little ahead of what I wanted to pay but I'm feeling quite positive about the future for this company. Let's hope I'm proved right :-) As ever, GLA that are holding...
"LSE:OMG:OMG's share price is up by 50% since we said "cash-rich OMG looks cheap" at the full-year results in December. Since then, management has sold its defence software division for $25 million (Â£17 million) and handed back a slug of the ..."
Presumably once they have received all of the disposal cash they will have approximately £25m in net cash against a market cap of a little over £50m, plus remaining businesses producing a profit of £5m or so a year plus valuable IP.
Why is this decent little company so unloved by the market?
"LSE:OMG:OMG's share price has been rangebound for the past year, with progress capped by heavy spending on its wearable camera device. But a decision to ditch the hardwear and instead begin licensing its know-how to big consumer electronics firms ..."
From 19 May 2011 interim results
"Yotta USA reported revenues of £0.8m (H110: £0.9m) and an operating loss of £0.3m (H110: Loss £0.5m). During the first half, the Group has been actively seeking an exit from the USA property surveying market. To this end, the Group released 19 employees in February 2011 leaving a small compliment to successfully the complete the wind-down of the business and fulfil its remaining contractual commitments. In addition, the Group has agreed a deal in principle with a third party to take over responsibility for the Miami Dade Contract, representing the only major long-term contractual commitment remaining. The Group anticipates its withdrawal from the US Property Appraisal market will be completed during the second half. The Group anticipate that a write down of Net Assets will become necessary in the region of £0.4m; no provision is included as at 31st March 2011 in the Interim results."
So Yotta has withdrawn from the US. Whether or not that precludes collaboration with a third party like Carillion I wouldn't know.
On 7 August 2013, OMG Yotta announced a contract with Carillion for road survey work on the M40 worth £375,000.
Perhaps interestingly for the future, on 18 Sept 2013 Carillion announced :-
"Carillion Canada has been selected by the ministry of transportation Ontario as the preferred bidder for the area maintenance contract Peel/Halton that is expected to be worth over £100m over 12 years. Under this contract, Carillion Canada will provide routine inspection and maintenance services, including snow clearance, together with minor capital works, for over 1,000 kilometres of 2-lane equivalent highway."
Noting the phrase "routine inspection", I wondered if Yotta might potentially benefit.
Pure speculation on my part as I have no way of knowing if, having placed their feet under Carillion's UK table, whether this might extend to playing footsie with Carillion Canada - or even whether Yotta has the capacity to operate in Canada.
Does anyone out there know, or have an informed view ?
I agree Pharmaspecialist, it would indeed be most helpful to us to at least have a clue either way. In one of those unnerving flashbacks to a long dead career counting beans, (Barista, not ACA) it occurred to me that OMG are unlikely to expand that to financial detail of individual results on the grounds of "commercial confidentiality" - AKA letting your customer know exactly how much you made out of them. Or, as you rightly say, lost
In a similar vein of trying to understand the business better, I was delighted to note that the first 3 batches of Autographer have already "Sold Out"...but in order to understand how well this is actually selling at £400 a pop, we might first need to understand how many units there are in a batch. i.e. 10 - not so good, 1000- quite encouraging for OMG, I'd wager.
Perhaps I'll give them a buzz tomorrow and report back, if they'll tell me.
Following on from the previous comment it would appear that OMG still does not realise that shareholders would like to know whether its projects are financially successful rather than being fed PR. Pleased that Dead Island Riptide is such a success and that it used OMG input but did it make a loss or a gain for OMG? Presumably a loss or break even, otherwise I assume OMG would be pleased to announce a financial success.
Z for zero meaningful information, are omg in the film promotion business now?
How about telling investors how much profit came from our involvement in the film? it was released last month, or is it zero again?
This news release coming as it does so coincidentally the day after the negative reaction the market gave to the rights issue news and considering the films release date,suggests management may be more concerned with empty pr stunts rather than making a profit for shareholders.
Go on tell us did we make any money from the film?
Nice buying on the run up to prelims on the 6/12,,,,,,one of the reason's its doing well and of course the other is IMV it's a pretty good company and form the trading update on 22/10
AHEAD OF MARKET EXPECTATIONS !
Building upon the solid performance delivered in the first half of the year, the Board is pleased to report that the Group has continued to trade well throughout the second half. As a consequence, the Board expects to report both full year revenue and an adjusted profit before tax result that is ahead of current market expectations. This improved result has largely been driven by a stronger 2d3 performance. At 30 September 2012 the Group's net cash position stood at £4.3m (30 September 2011: £2.8m).
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