Market's view on Cppgroup
Published on April 2024
- The total aggregate consideration of approximately £5.1 million represents a 7.1x multiple on forecast EBITDA for the 2023, 2024 and 2025 calendar years, with final consideration based on audited EBITDA and subject to a maximum adjustment of plus or minus ten percent.
- Concerns about the impact of exchange rates on the company’s performance have been raised.
- Insider purchases are viewed as a positive signal, with insiders buying throughout the year.
- Discussions include views that the company is undervalued and bargain buys below specific price points are suggested.
- A new partnership is seen as promising, but it is acknowledged that it may take time for these partnerships to bear fruit.
- Predictable RNS announcements are noted, with beliefs that the share is worth double its current price.
- There are hints of something significant happening within the company due to the nature of share transactions and stock being gobbled up quickly.
- The company is perceived as a bargain, described as trading below net restricted cash with an underlying EBITDA of almost £7 million.
- Concerns are expressed about a long, managed decline of the company, with little to show from various business pivots.
- Discussions about a bizarre recent RNS and the potential implications for the company’s future.