Does anybody know much about this company, graph looking good from previous lows??

looking a cracking recovery stock now, p/e circa 3.5 yield 9%, overhang appears gone, 4 annoucements of new Internet & WI-fi business in August.....................take a look at the graph.

Steady progress, despite other small AIm shares suffering, p/e of circa 5, shut London Office, paid off 1m of debt & only c33% gearing, and a fast exapnding tech side.

Bit high on the debt level isnt it Peter?. Always thought you kept well away from companys with debt to service.

FINANCIALS

Mkt cap 7.9m
Net borrowings 5.7m
Share price 23.5p
EPS at interim stage 3.72p
Broker f/c to June 2006 6.5p eps & 1.9p dividend.
Broker f/c p/e ratio 3.6
(No tax payable on eps 2006)

Must admit it does look tempting and could have a good run in the next 6 months. Its very cheap for a telco stock.

Debt was 11m Roger, now 5m, paid 1m off last year alone.

The figure above isn't accurate, if you check the last trading statement, it's now 5m.

Now they are (excluding exceptionals this year for london office closure etc) making 2m a year, so debt is just 2.5 times profit, also with circa 15m of assets, it's only geared at 33%.

Companies I am wary of are those with 100% or more gearing.


The tech side is really growing fast, and will overtake the 'cash cow' side, I think it's overlooked by many, because of growing things like advertising,ATM's & Microcells & Wi-fi, even the payphone cash cow only declined 6% overall.

Furthermore I they have over 80% of Airport people footfall, in their airports for Internet & WI-FI may become a new section on it's own with over 1m t/o this year expected.

Even on a 20% tax charge, eps is expected to hit circa 6p at 25p share price that is cheap.

And even the boring recent payphone acquisitions are going to pay for themselves in little over 24 months, that's good business, especially as they were bought to get leads into the faster growing interactive area.

Along with Ashpool a major holding for me Roger.

Blimey if its a s big as your ashpool holding you must be backing this one very seriously. Im very tempted.

Many thanks for the analysis above.

No problem, a pleasure.

News for Early Sep & August:

September 2006
UKs fastest growing airport (Blackpool) gets Spectrum Internet desks
August 2006
Spectrum add WiFi CCTV at University of Sunderland

Sinatra- London Palladium show..... promoted on over 200 Spectrum central London payphone sites.

Spectrum Internet services sign 3 Landscove Holiday Parks

St. Christophers Inns extend internet contract with Spectrum

Spectrum add Bristow Heliport to its Aberdeen Airport operations ... providing WiFi & Internet Desks

Spectrum are pleased to announce the completion of their installations into nearly 170 Premier Travel Inn hotels across the UK.

Spectrum expands Travelodge WiFi internet services from 26 to 96 (270% increase)

New 5 year contract signed with Bristol Airport, Internet kiosks doubled.

Profits expected to be slighty below forecasts excluding exceptionals (f/c 2.2m) Directors confident of reasonable growth in Revenue & profits for 2006-7.

Wifi expected to exceed 1m t/o for 2006-07

Net debt reduced by circa 1m in 2006 to 5m.

Peter are they in direct competion with BT with the old pay phones what used to be the old red kiosks? or have they bough some of the BT estate?.

Thanks in anticipation.

Roger their payphone estate is mainly London, with some cracking locations like Leicester Square. They are the second biggest after BT & payphone services made just short of 1m at the interim stage, a superb cash cow, to pay off debt & fund the fast growing interactive side, also payphones are having ATM's attached to them, to bring in further revenue, advertising as mentioned, Wi-fi hot spots in conjuction with T Mobile, & also Microcells which should further increase with 3G.

Their phones seem to be kept in good clean order and many pics can be found on the website http://www.spectruminteractive.co.uk/index.php

Thanks peter Ill have a look at the site.

Forgot to mention the final divi should be around 1.5p too...results 26th of this month.

8th-September-2006

PRESS RELEASE

Spectrum open latest Internet Retail Shop at BAA Heathrow T1 Arrivals



Spectrum has taken the opportunity offered by BAA, to add an additional Internet Retail Shop at Heathrow T1 Arrivals.

The new Retail Shop located in the Heathrow Terminal One landside arrivals area, in ideally situated and operated unmanned 24/7 in a prime location. The new area is in addition to other recent retail investments within BAA including Heathrow T1 checking and Gatwick Village shopping areas.

Daniel Gray, Head of Group Marketing and Product Innovation, comments "we are committing to BAA with serious new investment, and with new bespoke designs, focused on their retail and airport environments. Our other recent BAA retail areas have proved highly successful, and we look forward continuing close relations with BAA, to maximise these areas". 8th-September-2006

.
============================-----------------------------------



11th-September-2006

PRESS RELEASE

Spectrum Interactive complete clean sweep of London Airports - Internet now at Luton Airport


Spectrum Interactive plc is to install Internet Desks at London Luton Airport, resulting in Spectrum operating Internet Desks at all five of London International Airports, (Heathrow, Gatwick, Stansted, City and now Luton).

London Luton Airport and Spectrum have agreed to build an Internet Retail Shop, similar to four others that Spectrum has built this year at BAA's Heathrow and Gatwick Airports. The desks will operate a range of functionality including surfing, MSN Messenger, word, excel and USB port functions.

The latest addition to Spectrum's BAA retail installations is at Heathrow Terminal One Arrivals area which opened this week, with a bespoke design, 10 internet desks, and even a helpdesk telephone area.

With nearly 1,800 installed desks Spectrum has been a leader in public access Internet Desks & Kiosks for a number of years, and are the market leader in UK Airports. Spectrum has contracts directly with 21 airports in England and Scotland, as well as operations with concessions within two further airports.

Daniel Gray, Head of Group Marketing & Product Innovation for Spectrum Interactive, commented, "we are extremely pleased to complete this agreement and to reinforce our position as market leader for public Internet Access at UK airports. In line with our product strategy, we are currently developing new features and services to offer through our desks, which will generate new revenues for Spectrum and it's airport partners. Spectrum continues to operate successfully in the busiest, most demanding, and high profile locations!"

Up 4.5p but still the p/e is little over 6 & a cracking divi, to boot.

I understand from the latest broker note that

Advertising revenue was up 32% in street phones.

Payphones didn't decline as much in the second half as the first half.

this year financial forecasts are 2.5m profit before tax 5.9p eps (20% tax c)

next year 2.8m profit before tax 5.8p eps (30% tax charge)


Yield 6%+ at current price.

PRESS RELEASE

Spectrum Internet Services with Coffee Mania at the Wales Millennium Centre

Spectrum Interactive have installed two internet kiosks and WiFi service with Coffee Mania at the Wales Millennium Centre (Cardiff).

Wales Millennium Centre is a vibrant, living centre with activity throughout the day and into the night. Visitors can listen to free music over a cup of coffee or glass of wine, visit the hands-on interactive gallery, or join in with one of the wide range of creative workshops. It is a place to browse, relax and soak up the atmosphere.

Now visitors to the Millennium Centre are able to access the internet at Coffee Mania and surf the net whilst they relax with a coffee. Spectrum Interactive have installed two internet kiosks on site, enabling anyone to browse the internet.

Spectrum also provide wireless access on site (WiFi) so that customers with their own laptops or PDAs are able to log on to the internet using their own equipment.

From IC this w/e

Spectrum is switching between two quite different telecom businesses. On the one hand, it operates over 9,000 payphones (over half of which are in London) whose revenue is rapidly diminishing. On the other hand, income from internet terminals and wireless internet links in hotels and airports is rapidly increasing. So in 2005-06, profits from payphones more than halved to 749,000, while income from internet terminals jumped from 211,000 to 511,000. And these trends will continue as the company is spending no working capital on the payphones, but over 2m this year supplying 80 internet terminals a month in the UK and Germany as well as wiring 10 hotels a month with wireless networking. To date 300 hotels have been wired including Travelodge and Premier Travel Inns, covering 30,000 rooms.

Before goodwill amortisation and one-off costs, last year's profits were little changed at 2m. If there's no goodwill charge this year, brokers think that profits could rise to 2.5m on sales modestly higher at 18.4m. But in place of a nil-rate tax charge (and a 734,000 deferred tax credit in 2004-05) there could be a 20 per cent tax charge. So broker Seymour Pierce is only looking for earnings of 5.9p a share and a little-changed dividend. BUY.

Nice and steady progress.

Just me in these?

New thread

http://www.moneyam.com/InvestorsRoom/posts.php?tid=10629#lastread

New thread

http://www.moneyam.com/InvestorsRoom/posts.php?tid=10629#lastread

No Im in Peter. Nice to see the steady rise of the last few days.

P/E now 5/6?.

GF

What do you see as the catalyst to drive these back up to the 90's or back up to Jan 05 prices. Don't hold but trawling for new investments.

MS