Zamano (ZMNO). Profitable and valued at approx cash

FrankJohnstone
Posts: 6
Joined: November 29th, 2016, 10:21 am

Zamano (ZMNO). Profitable and valued at approx cash

Postby FrankJohnstone » November 29th, 2016, 10:47 am

http://www.zamano.com

Given the cash on the balance sheet there is hardly any value being attributed to the profitable business.

Based in Dublin Zamano describe themselves as "...a leading European provider of interactive applications and services to mobile devices"

At current 5.875p;

Share price the market cap is £5.8M
Cash is £6.2M
Net cash approx £4.5M

Last years revenues were E24.3M and post tax profits E2.1M so its quite a substantial business. No dividend was paid.

The shares have collapsed from around 11p in September when the company released a warning on trading due to regulatory changes in the UK.
http://www.investegate.co.uk/zamano-plc ... 22043627L/

However on Friday they updated the market and announced redundancies which they expect will keep the company profitable (and imply cash generative). However they don't mention at what level.
http://www.investegate.co.uk/zamano-plc ... 39472203Q/


Major Shareholders Information (at 31 May 2016)
Shareholder Name Amount % Holding
Pageant Holdings Limited 28,771,982 28.93%
Aurum Nominees Limited 13,624,664 13.70%
Ulster Bank Diageo Venture Fund 13,888,889 13.97%
Grillon Holdings Limited 9,085,928 9.14%
Magizano Investments Limited 6,249,999 6.28%
Pershing Nominees Limited 4,709,516 4.74%
Davycrest Nominees 4,271,163 4.29%Major shareholders here:


There was a holding RNS yesterday stating Farringdon Capital hold 9%. I think they must be a new shareholder since I cannot see them mentioned before.

dickscovered
Posts: 12
Joined: November 5th, 2016, 2:06 pm

Re: Zamano (ZMNO). Profitable and valued at approx cash

Postby dickscovered » November 30th, 2016, 10:56 am

I think Wexboy, who used to cross-post his Great Irish Share Valuation on the Fool, covered these in depth. Family controlled IIRC. You can google his moniker for his site.

FrankJohnstone
Posts: 6
Joined: November 29th, 2016, 10:21 am

Re: Zamano (ZMNO). Profitable and valued at approx cash

Postby FrankJohnstone » November 30th, 2016, 11:57 am

Will do. Thanks.

There was another holding RNS late yesterday. The largest shareholder has sold down from 29% to 20%. So that explains where Farringdon Capital obtained their 9% (announced the day before).

I'm not sure who Farringdon Capital are but there a google search reveals a Farringdon Capital Partners who are a hedge fund.

jackdaww
2 Lemon pips
Posts: 208
Joined: November 4th, 2016, 11:53 am

Re: Zamano (ZMNO). Profitable and valued at approx cash

Postby jackdaww » December 1st, 2016, 6:15 pm

lets hope its better than GLOBO...

;)

FrankJohnstone
Posts: 6
Joined: November 29th, 2016, 10:21 am

Re: Zamano (ZMNO). Profitable and valued at approx cash

Postby FrankJohnstone » January 11th, 2017, 9:43 am

These shares have dropped to 5.5p now. I'm estimating they have approx 5p net cash as of now since they should have had 4 months of strong earnings in H2 before the payforit scheme went live in the UK. So the enterprise value of the company is only about £0.5M. I wonder if they are considering returning the excess cash to shareholders since they have abandoned the acquisition strategy. They don't appear to need it now.


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