ATCG Results due monday expected to be good, returned to profit last interims, major new contracts won recently with Vanco, Siemens and extended contract with BT for a further 6 years. Share price has suffered lately due to Mark Woodbridge leaving (he was previously director of Torex Retail June 2000 to 2003). Expect a strong recovery on back of these contract wins and aquisition of Rocom

AT Communications Group Plc
06 December 2006

6 December 2006



AT Communications Group Plc

Trading update and major new contract win



AT Communications Group Plc (AIM: ATCG; 'ATC' or the 'Group'), one of the UK's
leading business to business communications groups, today announces a trading
update for the year to 31 December 2006 including expected profits and progress
on the integration of Rocom, as well as a major contract win with Siemens.

Trading continues to be generally strong, with the Group awarded a substantial
new contract with Siemens Enterprise Communications for online services using
Rocom proprietary e-trading platform, RocomX, as well as the provision of
managed services.

The Board expects to secure additional contracts during Q4 but the bulk of these
revenues will be recognised in 2007. The Group expects to report pre-tax and
pre-goodwill profits in the order of 4.5 million, having reported a loss in the
previous financial year. The Board also expects to pay a maiden dividend for
the year to 31 December 2006.

Since the Rocom acquisition in August 2006, the Group has largely completed the
reorganisation and integration programme and will fully operate as three key
business units with effect from January 2007.

The Rocom brand is now used for all distribution and channel customers with ATC
indirect (channel) customers now serviced by Rocom, as service teams of both
organisations are fully integrated. Cross-selling opportunities across the
direct sales teams are also already being exploited.

The Group is about to launch a newly branded Service division which comprises
engineering and technical service delivery to direct and channel customers as
well as third parties such as BT and Vanco.

Very good !! Better than expected.

L2 all blue and 3 v 3 @36/40

BUY 25K @ 39.5p

SELL 75K @ 37.25p


A few short term early profit takers selling the past few days rise will hold it back for a while, on line buy limit went up from 2.5K to now 25K so needs a little more buying volume before it starts to move again, which it should do in due course.

Great start to the week, had a feeling this would rock, sorry didn't post it earlier in the week.

AT Communications Group Plc
12 March 2007

12 March 2007

AT Communications Group plc

Profits jump to 4.6m from 1.1m

AT Communications Group plc (AIM: ATCG, 'ATC' or 'the Group'), one of the UK's
leading information, communication and technology (ICT) groups, today reports
its preliminary results for the year ended 31 December 2006.

Financial Highlights

Group turnover up 257% to 54.1m (2005: 15.1m)

Operating profit increased from 0.3m to 3.6m

Pre-tax profit, before goodwill amortisation and exceptional items, up 318%
to 4.6m (2005 1.1m)

Adjusted EPS increases to 7.2p (2005: 4.1p)

Maiden dividend payment of 1.0p

Cash conversion rate of 143% on operating profits (2005: 70%)

Organic revenue growth of 14% driven by new customer wins and additional
services to existing customers

Sale and leaseback of unencumbered freehold property for 3.5m in cash.

p/e now 8.9, strong growth completely undervalued still a buy, should go to 70-80p

Too old to understand the techonolgy, but fundamentals look pretty strong. Took on a lot of debt for acquisitions, but good cash generation and prospects suggest market lack of confidence shown in previous FD now looking perhaps unjustified? Took a small position some months ago at 38p and happy to hold.Always DYOR.

Agreed quite a bit of debt, but new aquisitions strengthening balance sheet, so should reduce this rapidly over next couple of years.

Another very strong day so far, check out iph, as could well do the same come the 27th March DYOR

This am was another good opportunity to top up, coming off the bottom nicely now, could be blue again by end of day :-)

DS update :


AT Communications - BUY Price: 36p Target price: 70p Code: ATCG.L

Equity placement

AT Communications Group has announced that it has raised 2m through placement of 5.3m shares for the purpose of debt reduction and working capital to fund rapid expansion

ATC recently acquired Rocom and reorganised its operations into three client-oriented units (Atcsolutions, Servassure and Rocom) to offer a full range of communications solutions to small and medium businesses

The financing results in 8.0%(E) dilution, indicating a revised FY07 EPS (E) from 7.2p to 6.8p (-6%), and in FY08 a similar adjustment from 9.1p to 8.5p
AT Communications trades on an attractive FY07 PE of 5.3x (FY08 4.3x) or 8.3x FY08 at our target price of 70p, and offers a 3.5% yield on estimated FY08 dividend potential

I'm tempted to get into this. It strikes me that the company must be fairly confident of future profits if it is paying a dividend at this stage, but it also seems crazy that they are going to pay out 662,000 in divis at 1p per share, when they have also had to do a share placing with the intention of reducing debt and covering capital costs.

If I was on the board I'd have preferred not to pay a div this year and would have concentrated on getting that debt down.

Anyway, will take a risk on this on the basis that it's due a revaluation.

Must admit it puzzles me why companies do that, although we all know its to keep insti's happy as the dividend covers their costs of holding for the year (admin).

However, ignoring this silly div/placing issue, the background story is good, the price is cheap, and all the directors were buying today, a good sign.

http://www.investegate.co.uk/Article.aspx?id=200704021417072342U

Plenty of potential upside.....

I agree re director buys; very healthy indeed.

Today's change: ATCG Bid: 40p Offer: 41p Change: 4.5 524k traded.

Shows also that the placing hasn't quenched buyers' appetite for the stock.

A couple of big ones went through, anyway:

02/04/07 10:45 39.0 185,000 O 37.0 40.0 Buy 365,678 31,978 0
02/04/07 10:45 39.0 160,000 O 37.0 40.0 Buy 180,678 31,978 0

It is also interesting that the directors could not/did not take part in the placing at 37p, they purchased from the market at 39p......so demand for placing stock must have been high, and it should also point to the overhang being cleared as well now. So perhaps the rerating can now happen.........

Welcome aboard, this stock is strongly tipped to do 70p+, hope you didn't get into iph as it tanked on great results but reuced growth in short term, but is a good recovery play for later in the year, target on that 200p from current 110p. DYOR.
Will update this board when I have time.

Thanks.

L2 ticking up, now 2 v 1 @ 41/43

ATCG Bid: 41p Offer: 44p Change: 0.5 39K traded

Up again: ATCG Bid: 41p Offer: 45p Change: 1. 38K traded

Pity the spread keeps widening, rather than the bid moving up in line.

Spread would be to attract sells and discourage buys.......cause basically its cheap cheap cheap :)

Right - definitely looks like a move by the MM's to discourage too much buying right now, whilst still allowing the mid-price to rise.

We've been valued at 101p per share!

--this was posted on the other bb ands probably explains the activity today

http://www.danielstewart.co.uk/CMS/nmanagerpro/attachments/ATCG_2pg_Apr07.pdf

Yep, 70p target price.

Sorry for delay, been away.

This is latest consensus on ATCG

On 2nd April AT Communications announced that it had placed 5.3m shares with financial institutions at 37p, raising gross proceeds of 1.96m. The funds will be used to pay down debt and provide additional working capital to support the group's continued growth.

The placing - although improving the balance sheet - has increased the capital base by approx 8.5%, thus marginally diluting returns. Consequently EPS forecasts for this year and next have been reduced to 6.7p (vs 7.0p) and 8.1p (vs 8.4p) respectively - with the fair value also nudging down from 67p to 64p.

Buy recommendation up to 49p

Forward PE for 2008 of only 4.8 (6.0 for current year). Decent.

Thanks for the post, RB - well spotted!

Whilst 2006 results were encouraging, debt levels looked uncomfortably high and pleased to see additional new equity raised via placing at 37p (1p below what I paid several months ago for a modest stake). This will hopefully ease pressures on cash as the business grows, but I will wait for interims before considering putting in more.

from:

THE TIMES

April 13, 2007

"In the know

Rumour of the day, director deals, bet of the day and tiddler to watch
....
Tiddler to watch

AT Communications, an AIM-listed network integrator, rose 1p to 41p on takeover news in its sector. South Africas Datatec has made a 20.7 million bid for Crane Telecoms. Analysts feel AT stock would be worth 102p using the same metrics. "

Up this morning: ATCG Bid: 42p Offer: 45p Change: 2 on 55K traded. Low volume compared with yesterday's 500K turnover.

But at least I've now broken even :o)

Nice....102p :)

up some more: ATCG Bid: 44p Offer: 47p Change: 4 now 615K traded

Tipped in Trendwatch earlier this week it appears from a post on AFN. Trendwatch refer to the latest DS Note and quote a prospective PE of just 4.7 for 2008 and a PEG of just 0.15. Their conclusion was that those who had originally participated in the placing last summer (to partially fund the Rocom deal) will see a share price well ahead of the 48p that they paid then !

PP, I too calculated a ridiculously tiny PEG. Nice.

All ATCG now needs is a bit more media mention......

- and today it has broken through the 45p resistance level!

More like crawled through - but hey, the volume was decent by the standards of this stock. 400,000-odd.

The move up looks not solid as yet, a move to 46p bid price would be better imo.

Tick up, 2 v 1 but still not 46p bid yet......

Nice news :)

http://www.investegate.co.uk/Article.aspx?id=200704180700300372V

AT Communications Group Plc 18 April 2007

2.5m voice services contract secured

AT Communications Group plc (AIM: ATCG; 'ATC' or 'the Group'), one of the UK's
leading information, communications and technology (ICT) groups, has secured
2.5 million of annualised reseller contracts. ATC's Rocom division will now
manage the reseller contracts on behalf of a leading UK-based telecoms operator
and carrier. These contracts were migrated to ATC as a result of the Group's
ability to provide a broad range of communications technology and solutions.

In addition to the enhanced earnings visibility through the existing annual
voice services contracts, ATC is now actively working with these customers to
cross-sell additional products and services from the Group's broad portfolio
under the existing supplier relationship.

Alex Tupman, AT Communications Group Chief Executive, said:
'This is a significant development as it demonstrates that our revamped reseller
and end-customer propositions are extremely strong and broad. Our strategy of
focusing on both direct and indirect routes to market is enabling us to maximise
the opportunities across the UK ICT market.'

pp - we needed that!

Comment from DS this morning :

AT Communications - BUY
Price: 47p Target price: 70p

ATComms announces 2.5m reseller contract

AT Communications Group has announced a 2.5m (annualised) reseller contract via its Rocom division for a leading UK-based telecoms operator

In addition to the enhanced earnings visibility through the existing annual voice services contracts, ATC will cross-sell additional products and services

Comment:

This is an extremely encouraging endorsement of ATCs strategy in acquiring Rocom, and the clearly-stated rationale for the acquisition which is to cross-sell a wide range of managed solutions to its customer base.

ATC remains highly attractive on 6.7x DS&C 07(E) or 10x at our target valuation, with 19% CAGR (EPS E) to 2009, compared to peers Alternative Networks on a (FY07 consensus) multiple of 15.0x; Maintel 15.1x; BNS 14.2x; Vanco 18.2x

Great news, let's have some more like that!

SP: ATCG Bid: 44p Offer: 47p Change: 0.5 108K traded.

DS 11th April 07 update for reference :

http://www.danielstewart.co.uk/CMS/nmanagerpro/attachments/ATCG_2pg_Apr07.pdf



.

Makes very good reading doesn't it. :-), good price at the moment won't stay there too long.

Contract Win RNS this morning, and DS comment afterwards is as follows :


"AT Communications - BUY Price: 39p Target price: 70p Code:

ATCG.L Analyst: Mike Jeremy | 020 7776 6570

First contract win for SiNET hosted VoIP service

AT Communications has announced its first major contract for its SiNET hosted IP telephony product. The contract is for FADS, UK decorating specialist, via the integrator division ATC Solutions and is evidence that the hosted IP market has appeal in the UK.

ATC Solutions will provide SiNET to 60 (of 70) FADS sites (plus HQ) in a 3-year contract including voice telephony, IP-based trunk provision, installation and maintenance. ATC reports trials underway with other prospective clients.

Subsequent to the acquisition of Rocom in 2006, ATC reorganised into three divisions; ATC Solutions, offering systems integration solutions to SMEs; Servassure providing resale, distribution for telecoms carriers; and Rocom, a distributor and base for the introduction of other services.

Following this major reorganisation we expect FY07-08 to be a phase of implementation, as is evident in the FADS contract and a 2.5m Rocom win in April.

ATC currently trades at a huge 65% discount to an average of its peers, 5.8x compared to 16.3x (FY07 E) whilst offering 16% 07-09(E) EPS CAGR against a comparable 18.8% average. BUY. "

Ticking up again today, good support at 40p now, should start moving upwards from here, what was that target again? 70p.............tasty.

Trading statement

http://www.moneyam.com/action/news/showArticle?id=1984000

Nice bullish AGM statement.


AT Communications Group Plc 24 May 2007

AGM Trading Statement

At today's Annual General Meeting of AT Communications Group plc (AIM: ATCG;
'ATC' or 'the Group'), one of the UK's leading information and communications
technology (ICT) groups, Gerard Spencer, Non-Executive Chairman of ATC, will
make the following statement:

'I am delighted to report that current trading continues to be in line with the
Board's expectation.

'The Group continues to benefit from its strategy to focus on large enterprise
customers with significant new contract wins including Nottinghamshire Primary
Care Trust and Thistle Hotels. The Nottinghamshire PCT win is a good example of
cross-selling; a previous Rocom Corporate customer, the account is now part of
ATC Solutions, and the historical trading relationship was a crucial factor
behind ATC Solutions winning the IP telephony contract. Thistle Hotels is
benefiting from our Servassure service delivery business through its contract
with BT.

'The Group has broadened its IP product portfolio with an additional
distribution agreement with Nortel for the Rocom division. This agreement is for
the distribution of Nortel's range of BCM IP telephone systems, which are
targeted at SME customers, and for Nortel's SME range of data products.
Nortel's share of the market in traditional PBXs is amongst the largest in the
UK, so this distribution partnership positions Rocom at the forefront of the
shift to IP technology through the reseller channel.

'The acquisition of Rocom has bedded down well, and the integration of back
office systems and the centralisation of the Finance, IT and Procurement
departments is underway, resulting in greater efficiencies in the medium to
long-term.

'In April, the Group announced a migration of 2.5 million annualised reseller
contracts for the provision and management of voice minutes services to end-user
customers. The expansion of our reseller base provides continues to provide
considerable opportunity for cross-selling and enhances visibility of earnings.
Major telcos continue to re-evaluate how they manage their customers and
channels, and we anticipate that this trend will result in further deals along
similar lines during the course of this year.

'The formal launch of Servassure as an independent service delivery business has
already meant that our year-to-date business with BT has grown significantly. We
have developed a web portal for BT to engage with Servassure, which has helped
to facilitate increased levels of assurance contracts being placed by BT with
Servassure. The web portal and helpdesk model of engagement is now being
established to engage with other Servassure partners, including Rocom resellers.
There has been significant channel interest in using Servassure's suite of
engineering and network services to complement and complete their offerings to
the market.

'Yesterday, we announced a significant three-year contract for SiNET, our hosted
IP telephony service, with FADS, the UK high street decorating specialist. This
is our first major contract for SiNET and a significant endorsement for the
product which is being trialled with several major UK retailers. The contract
will cover the provision of SiNET, combined with voice minutes, IP trunks and
full installation and maintenance services, across 60 sites and FADS'
headquarters. Another SiNET trial will be underway shortly with Empire Cinemas.

'Our recruitment process for a new Group Finance Director is progressing well.
We hope to be in a position to announce an appointment soon.

'Finally, the Group has just been named as 'Networking/Comms Reseller of the
Year' at the MicroScope awards, in recognition of our capability in delivering
complex ICT solutions to larger businesses.'


Enquiries:

AT Communications Group plc 08700 55 80 80
Alex Tupman, Chief Executive

http://www.atcommunications.co.uk

DS comment this morning :

AT Communications - BUY Price: 42p Target price: 70p Code:

AGM: trading in line with expectations

Gerard Spencer, Non-Executive Chairman of ATC will state at today's AGM I am delighted to report that current trading continues to be in line with the Boards expectation.

ATC highlights ~ the FADS SiNET contract (announced yesterday), a distribution agreement with Nortel, contracts with Nottinghamshire Primary Care Trust and Thistle Hotels.

It also highlights continuing integration of back office systems and the centralisation of the Finance, IT and Procurement departments, and progress towards the recruitment of a new Group Finance Director, stating "we hope to be in a position to announce an appointment soon".

The SiNET FADS contract, in our view was highly-significant as it establishes a track record of delivery on the strategic goals set at Y/E FY06. Clearly the next major event should be the installation of a new Group Financial Director.

BUY rating maintained.

Post from Colin on TMF who attended the AGM last week :

"AT Communications (ATCG) Harlow Business Park is big, man. The company has the most amazing chair in reception, every time you seat down it emits a loud sound. Breaks the ice.

In all three cases, a number of private investors turned up.

I was lucky enough to be with Carmensfella at Harlow, so we split the most of the questions between us. Two men with beards attended, plus a competitor who had travelled six hours to get to the meeting, exciting stuff. Thmk from ADVFN seemed to have attended the meeting, if he is reading this post were you the gent with the white beard or dark beard? Carmensfella and I were given a site visit, we also spoke to all the directors on a one-to-one basis, plus we also spoke to number of other individuals.

Observations:

Excellent trading update issued at 7.00 a.m. on the day of the AGM:

http://www.investegate.co.uk/Article.aspx?id=200705240700501431X

The previous day ATCG announced a contract win:

http://www.investegate.co.uk/Article.aspx?id=200705230700400674X

Contract Win with retail chain, FADS, for SiNET Hosted VoIP.

The SP did tick up on the day of the trading update but having suffered a nose-bleed due to reaching the giddy heights of 43-46p, the shares have since ticked down.

The 600 lb gorilla sitting in the corner seems to be the debt position. Otherwise from a non-technical viewpoint, the strategy looks fine, all three divisions are doing well, cross-selling should provide a lot of opportunities, plus first VoIP contract just announced.

The appointment of a new FD should be announced in the next couple of months, another non-exec (non-technical, in other words someone with City background) is likely to be appointed this year. The directors are looking to make presentations to City institutions in due course.

If ATCG continue to meet expectations, the City should eventually wake up to this dynamic Essex company.

A variation on the term of board's expectations at the 2006 Renew Holdings AGM, a non-exec said that board's expectations is shorthand for beating market expectations by 10%. In the case of ATCG, the board seems to believe the term means that the board's expectations equates to market expectations.

Casting an eye at Digital Look, forecast adjusted EPS is:

2007 6.8p on sales of 96m
2008 8.6p on sales of 107m

Turnover in 2006 was 54m, so the need to finance the increased working capital requirements in 2007 as a result of the step-change in turnover will hold back substantially reducing debt in the current financial year. As at 31 December 2006, net debt stood at 18.5m. A sale and leaseback in February 2007 generated 3.5m of cash, a placing in April 2007 generated 2.0m of cash, so I would expect a debt figure as at 31 December 2006 in the range of 15m to 18m.

The position of ATCG FD should be a wonderful job for a bright-eyed FD if the rest of the executives can ensure that the company meets market expectations. International accounting standards will remove the need to charge goodwill amortisation, so adjusted EPS becomes the 'normalised' EPS figure.
The new FD needs to demonstrate that he is a safe pair of hands, the memory of Mark Woolridge will fade, the whiff of Torex Retail will disappear, then everyone can, hopefully, focus on ATCG being a fast-growing company that can/will thrive during the IP revolution but is currently on a PE ratio of less than 5."

Featured as a BUY in Shares Mag, so its said.

AT Communications Group Plc 14 June 2007

AT Communications Group PLC ('ATC' or 'the Group')

Board Strengthened: Senior appointments underpin growth

The Board of ATC is pleased to announce two senior appointments: Mr Ian Crawley, ACA, (aged 45) has been appointed as Group Finance Director with effect from 17th July, and Andrew Parsliffe, ACA, who acted as Deputy Interim Finance Director, has been appointed Commercial Director with immediate effect. These are key appointments for the Company which will underpin the foundations for the financial management of the Group and its strategy of being a 'one-stop' ICT solutions provider, the success of which is evidenced by recent contract wins.

Mr Crawley has nearly 20 years of senior finance and telecoms experience. His most recent position was with Shell International, where he was responsible for major international M&A and project finance transactions.

Prior to Shell he was Chief Financial Officer at British Telecommunications Plc's BT Openworld division where he played a key role in transforming the business from a loss maker to a profitable UK leading internet service provider.

Earlier in his career he was a Director of Commercial Contracts at BT heading a group responsible for BT's customer and distributor contracts worldwide. Prior to that, he was joint Head of Corporate Finance with responsibility for BT's M&A transactions worldwide.

Mr Crawley was also Group Chief Financial Officer of Interoute Communications Group Ltd, an international telecommunications services provider. He began his career as a commissioned officer in the Parachute Regiment. On leaving the Army he trained as an accountant with Deloitte before embarking upon his career in telecommunications with Cable & Wireless.

At the same time, the Board is pleased to welcome Andrew Parsliffe (aged 52) as Commercial Director. Mr Parsliffe, who holds an MBA from Cranfield, has 30 years of senior finance and commercial experience within multi sector FTSE 100 and 250 companies including Scottish and Southern Energy Plc where he spent seven years as Group Financial Controller. He has played a key role in supporting the Group since his appointment as Deputy Interim Finance Director four months ago and his new remit will capitalise on his extensive experience of growing businesses.

Alex Tupman, AT Communication's Chief Executive, commented:
'I would like to welcome both Ian and Andrew to the Board at a time when AT Communications is rapidly growing its business. With their significant financial and commercial experience they will play key roles as we accelerate our growth and take advantage of the significant market opportunities that exist. Recent contract wins with FADS, Thistle Hotels and a new distribution agreement with Nortel are testimony to the strength of our solutions and services and with our integrated business model in place we can now service customers with five to 50,000+ employees. We have significant in-house ICT expertise, which is totally focused on securing long-term, higher margin, service-based customer and channel contracts. We are poised for growth and I look forward to reporting on further progress in due course'

Market likes the news, good rise.

Now that is some director buy, and a real statement to the market :)


RNS Number:3635Y
AT Communications Group Plc 14 June 2007

AT Communications Group PLC ("ATC" or "the Group")

DEALINGS BY DIRECTOR

The Board of ATC was informed today that Ian Crawley, recently appointed Finance Director, today purchased 1,511,429 Ordinary Shares of 1p each at a price of 38 pence per share which represents 2.28 per cent. of the Issued Ordinary Share Capital of the Company. Mr Crawley held no shares in the Group prior to this purchase.

Alex Tupman, ATC's Chief Executive commented:-

"I welcome Ian's commitment which is a clear message to the market that the ATC management team are focused on driving growth."

RNS Number:4987Y AT Communications Group Plc
18 June 2007

AT Communications Group PLC ("ATC" or "the Group")

Significant Contract Win with Dixons

The Board of ATC is pleased to announce a significant contract win with PC World
Direct, a division of Dixons Stores Group International, which is anticipated to
generate revenues in the region of #2m over the next 12 months.

ATC will advise PC World Direct on achieving the optimal sales mix of telecom
products and will be responsible for product supply, direct branded delivery as
well as marketing and training.

All telecom products will be supported by ATC's inventory management system
which will supply the client with a data feed providing instant product pricing
and stock information.

The contract, secured via the Group's Rocom division, is for an initial 12
months.

Alex Tupman ATC's CEO commented:

"I am delighted with this contract as it highlights the strength of our sector
expertise, products and services all of which will play key roles as we
accelerate the growth of our business."

DS comment this morning :


AT Communications - BUY Price: 44p Target price: 70p Code: ATCG.L

New contract win ~ PC World

AT Communications Group has announced a contract with PC World Direct (part of Dixons Stores Group International) worth 2.0m for an initial 12 months, to advise on sales mix of telecom products, product supply, direct branded delivery, marketing and training.

All PCWD's telecom products will be supported by ATC's inventory management system which will supply the client with a data feed providing instant product pricing and stock information.

ATC has now redressed many of the issues of 2006, with the rationale for its acquisition of Rocom now bearing fruit. We expect further contract wins engendered by the opportunities created through the acquisition and the all-important crossover to ATCs two other divisions. In addition, the appointment of a new Financial Director, Ian Crawley, concludes a period of uncertainty. He joins effective July 17th. In his most recent role he was responsible for major international M&A and project finance transactions.

ATC remains excellent value at PE 6.x, EV/EBITDA 5.4x. BUY.

http://www.investegate.co.uk/Article.aspx?id=200707090700438498Z

AT Communications Group Plc 09 July 2007

AT Communications Group PLC ('ATC' or 'the Group')

Significant Contract Win with BT


The Board of ATC is pleased to announce that, in addition to its recently
extended six year contract with BT to support a wide range of Traditional and IPTelephony systems, it will now include the supply of the Mitel 3300 ICP and
SX-2000 range of products.

This is a significant announcement for the Group as it is now combining its
traditional support role via the Group's Servassure division with complementary
product supply to BT via the Group's Rocom division. The inclusion of the Mitel
product line together with associated support services is expected to generate
revenues in the region of 9m to the Group over the next three years.

ATC is an existing Mitel premier partner, the top tier of Mitel's channel
partner programme, and the Group will now provide BT with comprehensive Mitel
product supply and support enabling it to meet the demands of its customers who
require IP Telephony and associated applications. In addition, ATC will supply
BT with Mitel sales support, sales consultancy and customer help lines as well
as engineering support and product training.

Alex Tupman, CEO of ATC, commented:

'This contract represents a strategic development for ATC, which is now
supplying BT with products in addition to our established support service role.
As a result, we expect good growth in product revenues going forward. Mitel
recognise the value of the Group's end-to-end support capabilities to BT's
business customers. We have tremendous traction in our core market as indicated
by recent contract wins and we continue to consolidate our position as a leading telecom solutions provider to UK based businesses'.

Shaping up well for a good year.

DS comment this morning :

AT Communications - BUY Price: 44.5p Target price: 70p Code: ATCG.L Analyst:

Mike Jeremy | 020 7776 6570

ATC Group announces BT contract win

ATC Group has announced that it will supply a range of Mitel IP-based exchange equipment to BT Group, augmenting its current support role (via Servassure) with product supply via the Rocom division. It expects the BT contract to generate additional revenues of some 9m over the next three years.
For ATC this is a further example of the rationale for the acquisition of Rocom, following its agreement with Dixons to supply the full range of telephony products, and the cross-selling strategy that underpins the reorganisation, early in 2006, into three client-facing operations.

ATC remains compelling value at 6.7x FY07(DSC E) PE.

Nice write up from Colin at TMF on ATCG :

http://boards.fool.co.uk/Message.asp?mid=10615068


.

Excellent, that gets debt down and sorts a few things out. Nice to the new FD wade in with more big purchases, he appears to like what he sees then


http://www.investegate.co.uk/Article.aspx?id=200707130700411879A

RNS Number:1879A AT Communications Group Plc

13 July 2007

AT Communications Group plc

Placing to support accelerating growth Trading Update

AT Communications Group plc (AIM: ATCG, "ATC"), the business-to-business communications group, is pleased to announce that 10,638,298 ordinary shares of 1p each ("Shares"), have been conditionally placed at a price of 47 pence per ordinary share, raising gross proceeds of #5 million, (the "Placing").

The proceeds of the Placing will be used to reduce indebtedness in line with strategy and for working capital to fund the growth of the business.

As part of the Placing, Ian Crawley, who will become the Group Finance Director on 17 July 2007 as announced, has purchased 851,064 Shares, increasing his total holding to 2,362,493 Shares or 3.07 per cent. of the total Shares in issue following the Placing.

Admission to AIM of the Shares is expected to take place on 7 August 2007 and is conditional upon approval by shareholders at an EGM to authorise directors inter alia to disapply pre-emption rights which has been convened for 6 August 2007.

ATC Directors in addition to Ian Crawley represent 24.34 per cent. of the Issued Share Capital of the Company and will vote in favour of the resolutions at the EGM.

The Company's recent strategy built on the twin platforms of IP-based telephony and cross selling through its three divisions has been very successful. A good new business pipeline is beginning to build for the second half and prospects for the year as a whole look very encouraging.

Interim results for the six months ended 30th June 2007 are expected in September at which juncture shareholders will be updated on ATC's further progress.

Daniel Stewart comment this morning :

AT Communications - BUY Price: 48.5p Target price: 70p Code: ATCG.L Analyst: Mike Jeremy | 020 7776 6570

Debt addressed

AT Communications has raised (gross) 5m through the placement of 10.638m shares conditionally placed at 47p, with proceeds allocated towards debt reduction and for working capital to fund growth.
Ian Crawley (Group Finance Director from July 17) purchased 851,064 shares
Post issue the key ratio is net debt / EBITDA, which should decline to 0.98x by the year-end, creating conditions for reduced interest costs and for the flow-through from top-line contract wins (the most recent being the BT 9m Mitel contract) to EPS. We estimate 18% EPS growth 07-09.

AT Comms trades on an extremely attractive 7.2x FY07 PE, 6.0x 08 (post-issue calculation). Buy.

Colin covers ATCG in the "The Week That Was" post this week on TMF

Link to the post is : http://boards.fool.co.uk/Message.asp?mid=10621144


Extract of the part on ATCG is below ;


"....................Placing of the week take two

AT Communications Group plc (ATCG) announced on Friday 10,638,298 ordinary shares of 1p each ('Shares'), have been conditionally placed at a price of 47p per ordinary share, raising gross proceeds of 5m, (the 'Placing').

The proceeds of the Placing will be used to reduce indebtedness in line with strategy and for working capital to fund the growth of the business.

http://www.investegate.co.uk/Article.aspx?id=200707130700411879A

The new FD is keen, Ian Crawley, who will become the Group Finance Director on 17 July 2007 as announced, has purchased 851,064 Shares, increasing his total holding to 2,362,493 Shares or 3.07% of the total Shares in issue following the Placing.

ATCG also announced a trading update: The Company's recent strategy built on the twin platforms of IP-based telephony and cross selling through its three divisions has been very successful. A good new business pipeline is beginning to build for the second half and prospects for the year as a whole look very encouraging.

Placing was at a shade below the opening price, the market thought the placing was a 'good thing', ATCG's SP ticked up 7% on the day.

The SP finished the week at 52p.

Contract of the week

Busy week for ATCG on Monday a significant contract was announced:

The Board of ATC is pleased to announce that, in addition to its recently extended six year contract with BT to support a wide range of Traditional and IP Telephony systems, it will now include the supply of the Mitel 3300 ICP and SX-2000 range of products.

http://www.investegate.co.uk/Article.aspx?id=200707090700438498Z

I have written about ATCG earlier this week:

http://boards.fool.co.uk/Message.asp?mid=10615068

For the avoidance of doubt, the phrase The inclusion of the Mitel product line together with associated support services is expected to generate revenues in the region of 9m to the Group over the next three years means an additional 9m of revenue over the next three years..............."

Bought into these on Monday, looks undervalued on forecast EPS however upbeat noises about additional deals and growth due to cross-selling, heavy director buying and placing at 47p to reduce debt and provide working capital all gave me confidence to buy some. May buy more if there is any weakness.

Good idea Andy!!!

Profit-taking and last weeks general market sell-off means that in a loss now but hey, it has today triggered my buy order and have added at a price I thought I'd missed. Nothing has changed with this company in one week, still under-valued on forward earnings, good growth and if FD can spend amost 1m of his own dosh including 400k in the placing at 47p then that is good vote of confidence.

More good news :)

http://www.investegate.co.uk/Article.aspx?id=200708020700393671B

AT Communications Group Plc 02 August 2007

AIM: ATCG

AT Communications Group PLC ('ATC' or 'the Group')
http:// www.atcommunications.co.uk

Marks & Spencer plc (M&S) Contract Win

The Board of ATC is pleased to announce that the Group is supplying M&S with a
range of Freeplay environmentally friendly electrical products, which will be
launched at the end of August. This contract was secured via the Group's Rocom
division and is expected to generate revenues in excess of 1m per annum. The
product range will be branded Freeplay and will be in M&S packaging.

Freeplay Energy plc is the original and leading global brand of clean,
dependable energy products. Freeplay Energy's patented technology harnesses
human, solar and rechargeable energy and converts it into electricity to power
unique portable, consumer products replacing conventional disposable
battery-powered systems that are environmentally toxic and expensive.

The current product range includes mobile phone chargers, radios, torches,
lanterns, and standalone foot powered generators. Freeplay Energy's Lifeline
radio is distributed throughout the developing world by the Freeplay Foundation
(www.freeplayfoundation.org) as well as by aid and humanitarian organisations
such as Unicef and other United Nations agencies.


Alex Tupman, CEO, commented:

'We are pleased to announce this contract win with M&S as it further
demonstrates the Group's combined strength as being able to sell to and supply
major high street brands. This follows on from our recent contract with Dixons
Stores Group International.'

Daniel Stewart comment :


AT Communications - BUY
Price: 47p Target price: 70p Code: ATCG.L Analyst: Mike Jeremy | 020 7776 6570

New Contract Win

Following the recent news of a 5 million placing to reduce debt, AT Communications has this morning announced a new contract win to provide M&S with a range of environmentally friendly electrical products through its Rocom division.

The win demonstrates the Group's continuing ability to sell to recognised high street brands, having recently won a contract with Dixons.
The stock now trades on a PER of 7.1x, falling to 5.6x.

We recommend buying up to 70p, 48% upside.

Post from AFN :

Stegrego - 6 Aug'07 - 22:00 - 479 of 490

Given 'Share of the Month' in Hargreaves Lansdown Penny Share Prophet

After a period of acquisition and reorganisation
ATCGs prospects have never looked better in our opinion.
The shares, however, are currently priced on 7.6 times estimated earnings for 2007, falling to 6.0 times if forecasts for 2008 are achieved and we think that the shares look cheap at current levels.
The company is one of the UKs largest independent business communications groups, providing a comprehensive portfolio
of voice, data, mobile and video solutions, specialising in Information Processing (IP) technology. It focuses on small to medium enterprises (50 to 5,000 employees) and operates through three divisions:

ATC Solutions, which deals direct with end users, mainly towards the higher end of medium in size;
Servassure Strategy, which has a Broad Network and Engineering Services portfolio and its services are packaged
for resale, distribution or wholesale consumption;
Rocom Strategy, with a primary focus on volume channels.
Since coming to AIM in 2005 there have been four acquisitions, Rocom Strategy being the most significant. It added 30,000 customers and effectively transformed the group.
The significance of this was demonstrated by the announcement on 09/07/07 that the major ongoing contract with BT has been expanded to include the supply and maintenance of Mitel and SX2000 products, strategic development bringing together products and support functions.
2006 was a year of progress with the formalising
of the operational structure and the announcement of pre-tax profits of 2.8m compared with a previous loss of 22,000.
Earnings per share were 7.12p and a maiden dividend of 1p net was declared. Acquisitions and strong organic growth pushed turnover up from 15.1m to 54.1m. Operating profits
more than trebled from 5.7m to 18.8m.
The group is now focusing on the fast growing IP sectors of the market.
Acquisitions have increased the breadth of coverage and its in-house expertise means that it can attract more lucrative contracts and further acquisitions are likely. The market
consensus is that pre-tax profits for the year to 31/12/07 could emerge at around 6.3m and in 2008 at 7.8m. Consider as a buy.
(A T Communications is quoted on the higher risk Alternative Investment Market. We met with the management on 26/06/07).

A good write up from Colin who attended the EGM :

http://boards.fool.co.uk/Message.asp?mid=10653137


.

Nice to see it waking up again.

L2 now 2 v 2 @ 45/46

In The Times today :

"Rumour of the day

AT Communications, steady at 44p, which has contracts to manage telecoms for DSG International, Thistle Hotels and Somerfield, is due to report its interim results tomorrow and the word is that they will be better than hoped. Daniel Stewart, the broker, has a 70p short-term price target. A potential bidder could pay 100p."

Hi PapalPower, many thanks for the link in 69 above - makes interesting reading. I've been keeping my eye on ATCG for a while and have bought recently.

Have you looked at Infonic (IFNC)? Price going up nicely in recent days - Interims due 28 Sept. H1 revenues expected to be 100% higher than same period last year and the Company expects to report positive EBITDA for the period. Current price: 6.75-7.25. (Guess this should really be a new thread for IFNC, but I'm still new to this game!).

Not as yet Toya.


http://www.investegate.co.uk/Article.aspx?id=200709240701513221E

AT Communications Group Plc
24 September 2007

AT Communications Group PLC ('ATC' or 'the Group')

ATC is an award winning supplier of comprehensive Information and Communication
Technology ('ICT') solutions to UK businesses servicing over 30,000 customers
nationwide

www.atcommunications.co.uk

New Client Contract Wins With HMV And Relate

The Board of ATC is pleased to announce that the Group, via its ATC solutions
division, has won a new client contract with HMV Group, one of the UK's leading
music retailers and book sellers with outlets including Waterstones and
Ottakars. ATC will provide all voice (outbound calls, lines and inbound)
services across over 600 stores and head office sites in the UK and the
management of c3000 lines.

The initial 24 month contract will generate revenues of 1.8m over the period
and follows on HMV's strategy of rationalising service providers in favour of
those who provide value for money and ensure cost efficiencies.

In addition, ATC Solutions has won another new client contract with Relate, the
UK's largest provider of relationship counselling, to provide it with a fully
managed voice (IP Telephony) and data (MPLS WAN) service with desktop management
across all 80 sites, including a recently opened interactive contact centre in
Doncaster.

The initial 36 month contract will generate revenues of over 1m during this
period and it is anticipated that additional services will be provided, such as
voice minutes and line rental.


Alex Tupman, ATC's CEO, commented:

'I am delighted that ATC has secured two new significant client wins. The HMV
Group contract demonstrates the strength of our best of breed telecom solutions
and services and highlights our capability to provide UK businesses with a
nationwide service.

Similarly, our ICT solutions enable Relate to facilitate its changing business
model as it moves to provide a single point of contact to clients - from initial
contact and consultation through to the appropriate Relate service. Our
solutions will enable this business to be more efficient and cost effective as
it moves towards being an accredited provider of services to Government
agencies.

Both of these new client wins again are testimony to the strength of our telecom
solutions and I look forward to updating shareholders with further progress in
due course'.


For more information:

AT Communications Group plc 08700 55 80 80
Alex Tupman, Chief Executive
www.atcommunications.co.uk

Cenkos Securities plc
Stephen Keys 020 7397 8924

Biddicks
Shane Dolan 020 7448 1000
www.biddicks.co.uk


About AT Communications Group plc

ATC is one of the UK's largest independent business communications groups and is
listed on the London Stock Exchange (AIM). The Group offers a comprehensive
portfolio of voice, data, mobile and video solutions, specialising in IP
technology, alongside managed services, ecommerce, design consultancy,
installation and maintenance. ATC operates under three divisions to ensure total
market coverage. Each division operates independently but shares resources to
ensure best practice at divisional level without duplication of effort. For
further information see www.atcommunications.co.uk

ATC Solutions:
A leading business systems integrator, ATC Solutions is accredited at the
highest level with leading ICT manufacturers and continues to craft
best-of-breed solutions, supported by in-house services capabilities to SME and
corporate customers directly. ATC Solutions' base of customers now numbers over
10,000 and includes the majority of the Times 500 companies. www.atc.co.uk

Rocom:
Rocom has over twenty years of experience in the communications market and
focuses on resellers and dealers as well as retail channels for online services.
It is the only UK distributor with the ability to distribute IP-based Customer
Premises Equipment, Hosted IP Communications, and in-house Network Services to
assist channels and their customers in managing the transition to IP-based
solutions. www.rocom.co.uk

Servassure:
A fully independent third party service provider to channel partners in the UK
ICT market - including ATC Solutions and Rocom, Servassure was formed in January
2007 to provide traditional and IP-based carrier and engineering services with
a 100% channel focus. Servassure targets and supplies large channels including
network operators such as BT and Colt and systems integrators such as Siemens
who require a more customised level of service and support than a traditional,
smaller channel. www.servassure.co.uk

193K X trade at mid price, lets hope that is the recent seller being cleared out.

Results tomorrow (Thursday).

Summary of director share dealing in 2007 equates to a run of all buys, totalling over 1 million sterling, with the most bullish sign for me being that of a newly appointed Finance Director purchasing nearly one million pounds worth of stock after joining.

13 Jul 2007 Ian Crawley Finance Director Buy 851,064 @ 47p = 400,008

14 Jun 2007 Ian Crawley Finance Director Buy 1,511,429 @ 38p = 574,343.02

02 Apr 2007 Richard Carter Executive Director Buy 64,103 # 39p = 25,000.17

02 Apr 2007 Scott Charles Kean Operations Dir. Buy 25,642 @ 39p = 10,000.38

02 Apr 2007 Timothy Tupman Managing Dir. Buy 26,026 @ 39p = 10,150.14

02 Apr 2007 Gerard Spencer NE Chairman Buy 25,642 @ 39p = 10,000.38

http://www.investegate.co.uk/Article.aspx?id=200709270703125860E

27 September 2007

AT Communications Group plc

AT Communications Group plc ('ATC', AIM:ATCG), one of the UK's leading business communications groups, today publishes its interim results for the six months ended 30 June 2007.

Highlights:

Group revenue increased by 168% to 42.7m (2006 H1: 15.9m).
- The full impact of the acquisitions made during 2006 was included for the first time.
- Proforma organic revenue growth excluding the acquisitions was 11%.
- Over 60% of this revenue is either based on long term contracts or recurring...........


Current trading and outlook

As highlighted, during the first half of 2007 we have invested heavily in reorganising and restructuring the business into three focused divisions. We have also recruited a number of additional staff, particularly in sales and operations, building excellent foundations for future growth. Significant successes have already been achieved and our strategy to cross-sell our product and service offering is achieving real traction from clients that increasingly recognise the speed and efficiencies that our complete one stop shop of 'best of breed' solutions can offer.

We expect a good second half based on a strong sales pipeline, which will also underpin the Company's growth into 2008 and beyond.

What's going on? I thought this was a good set of results but the price is diving!

A little surprise is the rise in net debt.


DS comment this morning :

AT Communications - BUY

Price: 49p Target price: 70p Code: ATCG.L Analyst: Mike Jeremy | 020 7776 6570

1H 07 PBT 2.3m (adj) but net debt 19.8m

AT Communications reported 1H07 revenues at 42.7m (+11% underlying growth), adjusted operating profit of 3.0m (unadjusted 1.842m compared to 1.954m in 1H06), adjusted PBT of 2.3m (unadjusted 1.097m vs 1.778m) and interim EPS of 2.1p (1H06 2.5p) inclusive of dilution resultng from the issue of new equity totalling 6.7m.

The (negative) surprise is net debt, which increased from 18.51m at y/e 06 to 19.8m, a factor ATC attributes to additional working capital requirements.

We expected interim net debt to be closer to 10m following the sale of Rocom's Wetherby offices for 3.5m and two equity issues which together raised some 10.2m towards debt reduction.

At divisional level, ATC Solutions recorded revenue of 16.4m (our estimate was 16.1m), Servassure 6.5m (DSC E 8.3m) and newly-acquired Rocom 19.8m (DSC E 21.7m), clearly indicating a loss of momentum at the profitable Servassure level.

In sum, the focus must be net debt and AT Communication's strategy for future control / reduction. Net debt now stands at 2.5x FY07 EBITDA (E).

Ah right - thanks for that PP.

Have ATCG on watchlist, the interims look OK and like Toya was surprised at 5p fall this morning. The ony reason I haven't invested yet was a nagging worry about debt levels, I was waiting for debt to decrease. Debt at 19.8m with interest payment of 0.700m is still high, and I would hope that going forward, they will address his issue.

Still keen to invest at some time in future, I believe when debt levels are seen to be reducing the sp could really star to move up. imo

If you take out one off's, the underlying EPS is 3.4p..........not sure why they did not highlight this...........anyway, yes debt is a concern, but the company is growing and should do 6p EPS this year.

Cheap really.

Good to see it come off the low, not good about the debt, this should be a priority to reduce it, however hopefully most of the investment costs have been shown and they can now start to produce further growth in business and earnings, which should start to reduce the liabilities. As you say Papal this stock is still cheap.

Future is bright.

Don't forget this is Interims to 30th June 2007.

The placing was in July 2007, and so, the money raised then to reduce debt and also to increase working cap is not recorded here, it will only come into play on the prelim figures.

27 September 2007

AT Communications Group plc
("AT Communications" or the "Company")

Director Shareholding

The Company has today been informed that Alex Tupman, Chief Executive of AT
Communications, today acquired 330,000 ordinary shares in the Company,
representing 0.43 per cent of the Company's issued share capital at a price of
45p per share. Following the acquisition, Mr Tupman has a beneficial interest in
12,071,018 ordinary shares, representing 15.6 per cent of the company's issued
share capital

Well that's a good sign I guess.

He's probably been waiting eagerly to get the interims out of the way, and was blessed by a cheaper price. I'm sure he'll be smiling in due course.

Re Debt: Papal thanks for pointing the dates out, we can assume the balance sheet is in fact alot better. look forward to next set of interims.

Papalpower
re post 78 the comment from DS this morning, surprised they seem to have factored in the July placing which as you point out was out of the reporting period.

Here is the new broker update, from the new broker, Cenkos, thanks to a post at AFN :

"rivaldo - 28 Sep'07 - 15:11 - 692 of 692

I have the new Cenkos note. It's pretty definitive. They have a 70p target, and they forecast 7.7p EPS for this year on a 13% tax rate and 7.1p EPS next year on a 30% tax rate. They say:

"Undervalued on every measure

AT Communications (ATC) has reported encouraging interim results today with
significant progress made on a number of fronts during the period: Rocom and
Britannia, acquired in 2006, have now been fully integrated; the restructuring into 3 operating divisions has been completed and the group has recruited almost 60 new staff to help drive and support the growth anticipated in the short to medium term. It is clear that this restructuring is beginning to deliver results, with over 100 customer cross selling opportunities in the pipeline and a number of landmark deals announced recently.

We believe that ATC is on track for a strong second half to 2007 and that the run-rate will make our 2008 forecasts look very comfortable indeed.

ATC looks compellingly cheap on every measure and we believe that there is significant scope for a re-rating during the remainder of this year.

Results

ATC delivered a 25% increase in PBT to 2.3m (stripping out exceptionals and amortisation costs) on sales up 168% at 42.7m. This increase in PBT was achieved despite the significant number of staff added during the period and a 0.5m increase in the interest charge to 0.7m - to service the debt taken
on in August 2006 to finance the acquisition of Rocom. EPS decreased to 2.1p (2.5p) primarily due to exceptional costs and amortisation. Stripping out these costs and normalising the tax charge gives EPS of 2.6p. Debt increased to 19.8m (18.5m) during the period due to the increased working capital
requirements of the business, but a placing in August raising 4.8m (net) together with operating cashflow in H2 should see debt levels fall to c15m by the end of the year. Interest cover remained very comfortable at almost 4x.

Growth and Visibility

ATC has established a strong platform for growth in the first half of 2007. The group now has a compelling product offering and the ability to reach a very broad target market, ranging from the smallest to the largest companies in the UK. Organic sales growth of 11% in the first half was achieved
despite the upheaval of the reorganisation and at a time when 60 new recruits were being integrated and trained. We believe that the building blocks are in place to deliver growth in excess of this level in the medium term. Furthermore, the transition towards more managed service revenue and longer term contracts in general is likely to significantly improve the quality of the group s earnings in 2008 and beyond.

At present, c60% of group revenues are contracted and recurring - we expect this number to be nearer 70% by the end of 2008. We believe that on a PE of 7 to December 08 the market is significantly undervaluing ATC s earnings stream."

Nice little write up on ATCG.


http://www.sharecrazy.com/tipsheet/atcg.html


.

Thanks for that PP - might as well do some background reading while waiting for Moneyam to stream prices to us again...

2 page comment on the interims is out from Edison ;

http://www.edisoninvestmentresearch.co.uk/research/category/AT%20Communications

Oct 01 2007

Rerating overdue

AT Communications (ATC) reported interim results last week ahead of market expectations. A strong sales pipeline will underpin growth in the second half and well into 2008/09. After a period of investment and reorganisation, management focus is on organic growth, which we estimate will be at a level of 10 to 15% per annum for the next three years. We believe that the shares, on a P/E of less than 6x 2008 earnings, represent a significant opportunity for rerating to more...............................................

PP this share has been heavily punted by TW and LH are you part of this group?

halifax, LH has only recently tipped ATCG, and TW never has. Perhaps your referring to Share Crazy printing the LH tip ?

I have been in well before LH made his call on ATCG.

Considering I have been posting here well before LH made his buy call, why do you consider that I would be part of this group ? Seems strange to me...........

Recent interims encouraging on sales front, but business remains highly geared and in present climate I am now out.

http://www.investorschronicle.co.uk/Columnists ......



Interest in telecoms is reignited

Created: 3 October 2007 Written by: David Malony

Investment banks have raised their recommendations on European telecoms operators in the past month, but this does not mean it is any easier to see which companies have found a winning formula. Indeed, the real action is likely to be found at the smaller end of the sector.

For several years now, telecoms companies have been fighting declining voice revenues. Selling broadband has helped, but subscriber addition rates are slowing down. So telcos are now following IT services companies into managed services. But the real pay-off will come from next generation networks they are building, such as BTs 21st Century Network.

These services will be hosted in data centres and virtual (shared) servers and billed as service and applications-led contracts, instead of charged on time or bandwidth used. Internet applications from telephony to productivity software will also be managed from the new network. As a result, upgrades, user admission and performance monitoring will be quicker and better co-ordinated.

Telecoms and software consultancy Ovum estimates that in the UK alone this market is currently worth 2.1bn (excluding traditional voice services or mobile services) and is set to grow to 2.8bn by 2010. There are no clear market leaders yet and new service providers include Alternative Networks, Azzurri Communications and Matrix Communications (not listed, but a subsidiary of Dublin-listed Calyx Group), as well as more familiar names such as Pipex, Redstone and Thus.

These UK companies are modelling themselves on a combination of IT systems integrators and telecoms network resellers, following the example of Vanco, a virtual network operator that started out as an IT distributor. And all are launching more network-based managed services such as Thus' recently launched Demon virtual server.

Admittedly, service providers do not have the scale of the incumbents, but this can work to their advantage in picking up business from companies that want bespoke network service. And given their modest size, they are all vulnerable to being taken over, too. However, the big telcos are also biting back by bolstering this side of their business. For instance, BT has made a number of acquisitions in traditional IT services - like Basilica Computing and, just last week, Lynx Technology in the UK, CS Communications & Systemes in France and SA in Belgium.

ATCG looking oversold, has been caught up in fears over its contract with Vanco. Vanco has cash flow problems but its order book is at very healthy levels, concern is it could reign back its orders with ATCG.

Even if this is the case, ATCG has shown itself to be quality operator in telecoms market with many other blue chip clients and this is likely to continue to grow.

Could therefore be due a likely recovery soon, good opportunity to get in. DYOR

THought this was due an update, seems stuck at the bottom at present but news is all good.

Recently renewed and increased a contract by 2.5 million a year and director buying.

p/e currently about 7.

Expect to see 50p in the medium term.

The Company was informed on Friday 16 November 2007 that Alex Tupman, Chief
Executive of AT Communications, has acquired 500,000 ordinary shares in the
Company, representing 0.65 per cent of the Company's issued share capital at a
price of 34.5p per share. Following the acquisition, Mr Tupman has a beneficial
interest in 12,597,044 ordinary shares, representing 16.3 per cent of the
Company's issued share capital.

Bought into these today seem to be winning some nice orders, on a low PE and I'll see how they are post the March results. Got them cheaper than a couple of directors paid for theirs. Good luck all.
2517

They have had some good contract wins and the news today is positive re awarded approved supplier status to OGC Buying Solutions. The last trading update was positive, and good to see they are trying to reduce debt levels, now forecast to be cut another 4.0m this year to 12.8m.

Still have ATCG on watch list, I'm just wary of buying AIM companies until markets settle down, and the new capital gains tax measures have worked there way out for this financial year.

Will keep following with a view to buy.

http://www.investegate.co.uk/Article.aspx?id=200803030700021456P

AT Communications Group Plc
29 February 2008

AT Communications Group plc
('ATC' or 'the Group')

ATC is an award-winning supplier of Information and Communication Technology
('ICT') solutions

www.atcommunications.co.uk

De La Rue plc awards multimillion pound contract to ATC

The Board of ATC is delighted to announce that the Group's ATC Solutions
division has secured a landmark three year contract with De La Rue plc, the FTSE 250, world-leading currency production and cash handling company.

Under a three year global master services framework contract, ATC will provide,
install and service IP Telephony across De la Rue's global business units. The
deployment will take place in stages commencing with immediate effect and will
cover the UK, Switzerland, USA and Canada. The contract is anticipated to be
worth several million pounds over the period with maintenance revenues
generating a similar amount.

Chris Johnson, Director of IS at De La Rue plc commented:-

'We selected ATC Solutions because it could provide our business with a
complete, full-spectrum service right through from consultancy and design to
implementation. This integrated approach also removed the need to engage
multiple suppliers which, as a global business, is both more efficient and cost
effective.'

Alex Tupman, CEO of ATC, commented:

'This is a landmark contract win with De La Rue and a quantum leap for the Group as it demonstrates our ability to deliver managed solutions on a global basis, providing business transformation to our customers and enabling them to maximise the benefits of IP technology. In tandem with recent contract wins including Amazon plc, this demonstrates the significant progress that the Group is making in securing larger, blue-chip contracts and it is testimony to the success of our recent divisional re-organisation. I look forward to reporting further progress in due course.'

what seems to be the problem with this stock

Write up in the sunday press indicating they were cheap in view of the De La Rue contract.
2517

its the debt position holding ATCG back otherwise I would expect a re-rating

What exactly is the debt situation here?
It would seem that the share trading ,i.e. all sells this morning , bears no relation ship to the companies prospects.

Nice contract win.
2517

This is all very well,but nothing seems to be able to shift the price much.
Results out next week,maybe that will help.

Let's hope so cp.
2517

Well it didn't (help) sold out this am.
2517

Despite good profit before ammortisation etc, the debt situation will continue to hold back the sp of ATCG in the current climate but there is a good underlying story here that will eventually see a correction in sp aligned to sector PE or maybe a take-over.

KBC Peel Hunt say "SELL"



AT Communications (ATCG) Initiation of Coverage:

Results in line EST: N/A, REC: SELL

While AT Communications appears undervalued, at only 5x adj EPS as reported today for the period ending December 2007 and in line with our forecasts at every level, we will wait for confirmation of delivery of positive key operating trends before upgrading our recommendation. With more potential negative than positive company and market triggers, we believe we are at least six months away from a change in the tide of sentiment should the company continue to deliver in line with expectations, as that is when improving fundamentals might confirm control of net debt (which admittedly is already less than 2x EBITDA, but still must deter consolidators and prevent AT from making further substantial acquisitions).

Keep an eye on ATC: development of trends to the September interims will be the key and we are impressed with the developments in the product lines. Despite recent good newsflow in contract wins, and improvement in metrics, we still need to see these are a trend. One for the brave at the moment and one to watch in six months time when interim performance becomes apparent, with a potential 50% upward shareprice movement, if recovery is proven, in our opinion.

At 4.4x December 2008E PER, and a 3.5% dividend yield the stock appears cheap but not yet compelling with so many macro and stock specific risk factors.

Easy money ??

http://www.independent.co.uk/news/business/news/management-poised-for-technology-buyout-877990.html

Management poised for technology buyout

By Simon Evans
Sunday, 27 July 2008

The management of AT Communications, an Alternative Investment Market technology firm, is expected to table a buyout offer for the firm this week.


Led by chief executive Alex Tupman, who founded AT in 1999, management is thought ready to table an offer to shareholders of around 40p to take the company private.

The shares closed at 22.95p last Friday, up 3 per cent on the day. However, AT's share price has halved in just over a year.

Cenkos, the company's broker, is said to be advising the management team on its attempted buyout.

Results for 2007 at the Harlow-based AT, which employs around 500 people, showed turnover up by 63 per cent to 88.4m, while pre-tax profits grew by 35 per cent to 6.2m.

The company revealed earlier this month that it had signed a three-year deal with Cable & Wireless that would boost revenues by more than 5m.

A spokesman for AT did not return calls.

worth buying today then?

If you believe the rumour then yes.

If its true you should be able to see around 37p after its confirmed.

If its not confirmed you might get stuck holding them, thats the downside.

desnt appear to be true then

Interesting statement, so the rumour must have come from a recently departed perhaps, telling the media in order to prevent or at least disrupt the plans and make others aware who might come in with a bid ????

Do not know who it could be........


I think therefore in the coming months there will be an offer, all they have said today is they are not in official talks regarding an offer as of this morning.

If you have any faith left in quality value stocks and are taking a long term (2 year) view then this must be as close to the bottom as we are ever going to get. Speculative talk of management buyouts will certainly raise the profile of this undervalued growth stock. Debt should be reduced comfortably and the potential is great.

However market conditions dictate that even the best stocks will get knocked by sentiment and none more so than tiddlers on AIM.

There can be no question that there are bargains out there with respect to fundamentals but they (fundamentals) no longer matter when sentiment is causing funds to sell off and investors to turn to cash.

Up over 305 this morning.

RNS Number : 2398H
AT Communications Group Plc
03 November 2008






ATCG.L






AT Communications Group plc

('ATC' or 'the Group')




ATC is an award-winning supplier of Information and Communication Technology ('ICT') solutions




www.atcommunications.co.uk




Multi-million contract wins & potential interest in subsidiary



The Board of ATC is pleased to announce a series of new contract wins for its ATC Solutions and Servassure divisions.




These wins include a two year Network Services Voice Contract with Carpetright, Europe's leading carpet and floor specialist retailer. The contract will result in significant cost consolidation and streamlining of Carpetright's entire UK and Ireland estate of nearly 600 stores. It also represents another major client win for ATC Solutions' retail portfolio, which includes HMV and Somerfield.




In addition, the Group's Servassure division has won a three year voice and data estate maintenance contract with BT for Comet, the electrical goods retailer. The contract which covers over 250 stores, distribution centres and head office sites across the UK is worth in excess of 1million over the period.




Both contract wins are working capital positive and are expected to make partial contributions to the current financial year but will make full contributions in 2009 and beyond.




ATC also confirms that it has received unsolicited potential interest in a subsidiary of the Group. Since the Group's continued priority is to reduce debt levels, the Company is exploring this interest, together with its advisers. Discussions are at a very early stage, and a further announcement will be made in the event there are material developments.




Alex Tupman, CEO commented:-




'I am delighted that our recent investments have delivered these multi-million contract wins, which will help underpin the Group's future revenues. In addition, an approach for one of our subsidiaries is currently being considered with initial discussions underway. Shareholders will be updated on this development as soon as appropriate.




The Board remains confident of the Group's long term prospects, which are underpinned by a solid new business pipeline, and I expect to announce further new contract wins shortly.'







AT Communications Group plc
08700 55 80 80

Alex Tupman, Chief Executive



www.atcommunications.co.uk



Cenkos Securities plc
020 7397 8924

Stephen Keys



Biddicks
020 7448 1000

Shane Dolan








This information is provided by RNS
The company news service from the London Stock Exchange

END

Staggering that a company that just 1 year ago was moving ahead strongly has just gone into administration. Just goes to show that shares of small companies are there to be traded and not to be held long term particularly in a downturn.

I have traded these in the past but don't own now thankfully. It didn't look good over the past 6 mnths with directors jumping ship no matter what the company said.

A real lesson to be learnt here.

Good example of cash being king - small highly geared businesses are imo to be avoided unless you have high appetite for risk.

As you say dd this seemed to be a company on a good growth track 12 months ago, very sad for everyone concerned, I fortunately sold out april 08.
2517

I've been reading the statements over the past 18 mnths. Although HSBC I think it was gave them 5 yrs loan/credit, it was probably on the back of them reducing their debt pile. When trade fell off a cliff Sept 08, they weren't making the cash to do this which forced them to sell a large subsidary. Sure their debt went down but now they were a really small company at risk to market forces. The CEO left on the back of this quickly followed by the chairman.

The first sign of trouble was the FD left the company in July 08 after only joining a yr or so earlier and also he bought loads of shares in Jan 08 which he presumably then got rid of. As they were renegotiating their bank loan, a large contract was delayed giving them a real liquidity problem for this yr and the final straw was the company who bought their subsidary put in a claim against the company of 3m+ for wrongful info when they sold it. With no cash flow, presumably the bank pulled the plug and administration was inevitable.

Just goes to show how dangerous small illiquid companies are. You can make a lot of money on them in good times but are best left alone when we've had the sort of downturn experienced recently.