The Lemon Fool

SKYSHIP wrote:CASH of £4.8m;

Coming back to the OP. I looked at the RNS for PRIM and could not see a cash entry in a balance sheet of £4.8m.

ADVFN says cash of 0.03p per share. Stockopedia says cash of £45,000.

johnhemming - as with most companies, we get a Balance Sheet with the Interims & Prelims; not with Qtly Updates.

Read this from the Qtly Update on 12th November:

Highlights

-- Fully exited its investment in Greatland Gold PLC ("Greatland"), as announced on 4 November 2020, via a recently
completed programme of sales of the remaining 20m Greatland shares for gross proceeds of approximately GBP4.6m
to compliment the 6m Greatland share sale announced on 1 October 2020 which grossed GBP0.888m. Total gross
proceeds have been received in the Quarter of circa GBP5.5m.
-- Total Greatland investment was approximately GBP633k giving a gross return over investment of approximately
GBP5.9m or a 933% ROI over the life of the investment.
-- Invested A$1.86m (approximately GBP1.1m) in 2m Zuuse shares as part of a now complete circa A$50m capital raise
alongside IFM Investors Pty Ltd ("IFM"), a leading Australian fund manager with over A$150bn under management,
and Leigh Jasper, co-founder of Aconex construction software which was bought by Oracle in 2018 for A$1.6bn.
-- Jeremy Larkin and Adrian Kerley, both of IFM, have joined the Board of Zuuse as non-executive directors alongside
Leigh Jasper who has also become a non-executive director.
-- Fresho annualised Gross Order Volumes have rebounded to over A$500m which is approaching pre-COVID levels. B2C
gains over 75k sign-ups and Fresho retains a significant cash balance.
-- The Company finishes the Quarter debt-free with significant cash reserves.

SKYSHIP wrote:johnhemming - as with most companies, we get a Balance Sheet with the Interims & Prelims; not with Qtly Updates.

Read this from the Qtly Update on 12th November:

Highlights

-- Fully exited its investment in Greatland Gold PLC ("Greatland"), as announced on 4 November 2020, via a recently
completed programme of sales of the remaining 20m Greatland shares for gross proceeds of approximately GBP4.6m
to compliment the 6m Greatland share sale announced on 1 October 2020 which grossed GBP0.888m. Total gross
proceeds have been received in the Quarter of circa GBP5.5m.
-- Total Greatland investment was approximately GBP633k giving a gross return over investment of approximately
GBP5.9m or a 933% ROI over the life of the investment.
-- Invested A$1.86m (approximately GBP1.1m) in 2m Zuuse shares as part of a now complete circa A$50m capital raise
alongside IFM Investors Pty Ltd ("IFM"), a leading Australian fund manager with over A$150bn under management,
and Leigh Jasper, co-founder of Aconex construction software which was bought by Oracle in 2018 for A$1.6bn.
-- Jeremy Larkin and Adrian Kerley, both of IFM, have joined the Board of Zuuse as non-executive directors alongside
Leigh Jasper who has also become a non-executive director.
-- Fresho annualised Gross Order Volumes have rebounded to over A$500m which is approaching pre-COVID levels. B2C
gains over 75k sign-ups and Fresho retains a significant cash balance.
-- The Company finishes the Quarter debt-free with significant cash reserves.

In which case.

Was any of the cash used in the Zuuse purchase? If so they wouldn't have the £4.8m in your OP, only the "significant cash reserves" they mention in the 12th November update.

If they sold Greatland Gold PLC, how do you know the "portfolio of private co. investments at cost of c£5.00m" in the OP is correct?

RE Zuuse investment – 1st Oct’20:

“To part fund its participation in the Transaction, the Company has sold 6,000,000 Greatland Gold PLC ("Greatland") shares at an average realised price of GBP0.148 per share through a structured series of sales in the weeks leading up to the Transaction.”

Cash position – 4th Nov’20 (after the 20m GGP sale):

“Current cash reserves of Primorus now exceed the market capitalisation of the Company."
NB – At the time the MCap was £4.8m

All the information is there - you just have to read the RNSs

Thanks for this. I assume there is a corporation tax bill due on the cash, but otherwise it does appear to have assets of around 7-8 Million. I think Rupert Ladrums strategy of reducing continuing costs looks sensible. Hence I will look further at this.

Extremely low market cap of £5m. Low liquidity...

Gan020 wrote:Extremely low market cap of £5m. Low liquidity...

It all depends upon how much you want to invest. Personally I don't mind lower market caps. My guess is that this is at about a 30% discount to NAV, but I quite like what appears to be the strategy of the new Executive Chairman who owns 18.36% of the company. Someone with the same surname who may be his wife owns about 2%.

I suppose it is also a case of what you feel about the new management, who also have skin in the game:
=========================================================================================

About Rupert Labrum

Rupert Labrum is a former investment banker, who retired after a successful career in the City of London. He was involved with Treasury and funding operations of international banks and building societies. He worked as a fund manager at Gartmore Investment Management and previously ran a proprietary derivatives trading desk at Deutsche Bank. Over the last several years, Mr Labrum has been an active investor in multiple private and publicly quoted companies. He has held notifiable positions in several AIM-quoted companies, and is the Company’s largest shareholder, holding an aggregate interest in its shares of approximately 18%.

About Hedley Clark

Hedley Clark is a Fellow of the Institute of Chartered Accountants in England and Wales. After nine years working in private practice, the last five at KPMG, he left to take up senior financial and management roles in various companies where he gained a wealth of international business experience. This included two successful start-ups. For the last 11 years, Mr Clark’s principal role has been as the managing director of Credence Background Screening Limited, a successful background screening company which, since his initial involvement in 2009, has seen significant revenue and profits growth.

About Matthew Beardmore

Matthew Beardmore is a practising solicitor and commercial manager. He has acted on many investments, commercial transactions, property transactions and major projects amounting to several billion pounds during his career. Mr Beardmore was previously a non-executive director of AIM-quoted lnfraStrata plc, where he was instrumental in both completing and managing the company’s EU grant applications.

Great looking chart - has bounced 7x on the support line during prolonged whipsaw. Breakout looking likely. Do take a look at the chart - P. No.1804 on Advfn's PRIM thread:

https://uk.advfn.com/cmn/fbb/thread.php3?id=40576350

Good move UP today. Now quoted at 3.7p-4.1p. Over 1 million shares sold this morning at 3.85p...buyer pays 4.08p-4.10p...

Today's 3.3m volume at 13:15.

So, yesterday's big buyer was our own Exec Chairman - Rupert Labrum - who bought 2.8m at prices up to c4.09p...
I think one might deduce that the Review will show at the very least that valuations are secure.

Hi Skyship

I very rarely post but wanted to say thanks for highlighting this share. I bought in December at around 3.5p only a very small holding. Keeping posting

Regards

Steve

Buying this sort of share is an act of faith in the Executive Chairman, nothing more or less. I am not clear how anyone can tip it on that basis, unless the Chairman has had a very good success rate in the past and for all I know he may have had.

I am afraid I will stand well back.

Dod

Dod101 wrote:Buying this sort of share is an act of faith in the Executive Chairman, nothing more or less.

It is true, but sometimes it is worth going along for the ride. I bought a few a bit ago.

A key thing in corporate finance is always "Skin in the game". I quite like his initial strategy of minimising costs.

Dod101 - 101 crashed in flames I recall! Happily many of our Skyships still flying after 35yrs...

Anyway - you say - " Buying this sort of share is an act of faith in the Executive Chairman, nothing more or less. I am not clear how anyone can tip it on that basis, unless the Chairman has had a very good success rate in the past and for all I know he may have had."

Well, a few things there:

# Firstly, I did tip it, in fact made it my Tip of the Year on my ADVFN thread

# I did so, because it traded at a 50% discount to NAV and was backed 100% by CASH on the B/S

# I did so because the Exec Chairman & wife had a 20% shareholding - now 22% after be topped up yesterday. I like to see directors having "skin in the game".

# I did so because the Exec. Chairman's CV suggests he may well be a man worth following - see my earlier post of 24th December

What exactly did you mean by "this sort of share"?

Closed at 3.95p Bid today.

Persistent small buys; so closed at 4.20p-4.50p. Getting seriously profitable; but a lot more to go for IMO...

Share option scheme just announced. Has been well received on the ADVFN b/b. The shares are to be issued at the current market price (4.1p), targeting price rises to 6p. 8p & 10p. Aligns the interests of management with those of shareholders - without being excessive:
================================================================

Grant of Share Options

Primorus (AIM: PRIM) announces the award of 12,000,000 share options ("Share Options"). Each Share Option is exercisable over one ordinary share of GBP0.002 in the capital of the Company (the "Ordinary Shares"). The Share Options represent approximately 8.58 per cent. of the current issued share capital of the Company. On a fully diluted basis, the Share Options represent approximately 7.9 per cent. of the enlarged issued share capital of the Company (assuming the Share Options are exercised in full and no additional Ordinary Shares are issued save for those in connection with such exercise).

The Share Options are exercisable at a price of GBP0.041 per Ordinary Share (being the mid-market closing price of the Ordinary Shares on 1 March 2021). One-third of the Share Options shall vest when the mid-market closing price of the Ordinary Shares ("Closing Price") reaches GBP0.06; one-third of the Share Options shall vest when the Closing Price reaches GBP0.08; and one-third of the Share Options shall vest when the Closing Price reaches GBP0.10. The Share Options are exercisable at any time, following vesting, prior to (and including) the day falling on the fifth anniversary of grant. If an option holder leaves the Company, such option holder shall retain any vested Share Options but any unvested Share Options shall lapse unless otherwise decided by the Board at its absolute discretion.

The total options granted over Ordinary Shares to Persons Discharging Managerial Responsibilities within the Company (each being a "PDMR") are detailed below.

PDMR Options Exercise Price Lapse Date
Rupert Labrum 3,000,000 GBP0.041 1 March 2026
Hedley Clark 3,000,000 GBP0.041 1 March 2026
Matthew Beardmore 3,000,000 GBP0.041 1 March 2026
Simon Holden 3,000,000 GBP0.041 1 March 2026

No further news, but 1.66m turnover today in 30 trades. Sp rose again & now at 4.55p Bid. Holding tight...

18/03 - Director purchases:

Rupert Labrum - 1,000,000 at 4.49p average (takes him to 21.1%)

Simon Holden - 224,606 at 4.45p average

PRIM provides an encouraging update on two of their main investments - Engage & Zuuse.

Sp steady at 4.8p - 5.2p

https://uk.advfn.com/stock-market/londo ... e/84753886