Have a look at todays news threads for EVS, great first half results, important acquisition announced, more exciting news promised in February. Up 25% so far today.

Starting to head upwards now

28 February 2005


Envesta Telecom launches 'Cheaper Call Rate'

The first flat-fee, single-access service for making international calls


Envesta Telecom plc ('Envesta Telecom' or the 'Company') the AIM quoted premium
quality international telephony provider, today announces that its subsidiary,
Seven Telecom, has launched 'Cheaper Call Rate', a unique flat fee service that
dramatically cuts the cost of calling overseas for UK based residential and
business users. The service operates via the first ever 'single-stage' access
method from any location in the UK.


While traditional low cost international calling alternatives have been
cumbersome and complex in their access and charging methods, Cheaper Call Rate
(CCR) provides a simple and easy-to-use service that can be used for the same
cost at any time during the day or night and from any UK-based phone (whether,
land line or mobile).


The advantages for the consumer are clear:

No change of supplier
Calls are billed by a customer's existing supplier
No connection fee or set up charge
No access number to dial
Calls are only charged when the call is answered
All calls billed at the flat rate, no matter when the call is made
High quality connections


Cheaper Call Rate works via a unique single-stage access method. On registering
at
www.cheapercallrate.com,
the fully automated system 'translates' the
international number the customer wishes to call to a non-geographic replacement
number. This number has a pre-determined price associated with it, such as
Australia for 2p per minute (inc VAT). Once the number is translated the new
non-geographic number effectively becomes the new telephone number, which can be
shared with friends and family in the UK so that everyone can benefit from the
same savings.


The move into the retail arena, with no distribution channel involved, will
deliver higher gross margins to the Company than those associated with the
current wholesale business. Cheaper Call Rate will initially concentrate
marketing activities directly within the consumer and business market, later
extending into the brand community, where opportunities exist for organisations
with a large customer base to enhance distribution and market penetration
through affinity partnerships and white-label options.


Commenting on the launch, Kevin Jauncey, Executive Chairman of Envesta Telecom
stated 'This is an exciting new addition to the Seven Telecom product range. Not
only is Cheaper Call Rate the first product of its kind to market, we also have
significant supplier arrangements in place that support Seven's marketing
expenditure for Cheaper Call Rate, therefore not burdening the cash and
profitability position of the Company. In addition the service works via a
rebate payment method, thus revenues are assured.'


'Key to Cheaper Call Rate's success is its ease of use, calls are billed at the
flat rate via the customer's existing telephony supplier. A great deal of
development and testing has gone into the service, but due to the utilisation of
existing resource and infrastructure very little additional cost is associated
with the new product. Even while offering some of the lowest rates in the
market, Cheaper Call Rate remains a very high margin product for us. The UK sees
over 43% of the population making international calls, our move into the retail
market strengthens and complements its growing wholesale proposition, current
forecasts for Cheaper Call Rate indicate a significant contribution to
profitability within the next 18 months.'

http://217.37.133.10/cheapercallrate/index.cfm

Nice.......very nice.......


Research Alert Monday 28 February 2005 6th tranche
1 Seymour Pierce Research
*Envesta Telecom plc
Specialist Telephony Supplier BUY
4.1p
AIM EVS.L
New product launch and forecasts
Today Envesta released a new product called Cheaper Call Rate. The
new product should have a significant impact on future revenues and margins
for Envesta.
Cheaper call rate will interface directly with Envestas back office, which will
be directed at the retail market, thus increasing margins and assuring
revenues. The product can also be White Labelled to other companies. The
product allows the customer to enter its usual international or mobile numbers
and in return will be provided with a unique telephone number, which can be
used by anyone from any UK location.
Envesta has agreements with global incumbent wholesale suppliers, which
provide the user with very high call quality, but at a very low cost. The user
makes substantial saving, but does not have to change its supplier, as
minutes used appear on the customers regular bill.
We suspect trading is well ahead of our forecasts and is gathering
momentum. Our revised numbers have been substantially revised to
reflect the performance of Envestas principal subsidiary, Seven Telecom.
Our forecast for the year ending 30June 2005 have been revised upwards
from 0.75m to 1.1m, whilst turnover has been moved from 20m to
23m. 2006 numbers have also been revised upwards. Its re-focus on its
core business, Seven Telecom, has had a dramatic effect on the growth
of the business, with little incremental cost, resulting in gross profit falling
through to the bottom-line.
Envesta is at the early stage of substantial growth. We have moved our
short-term price target to 6p and reiterate our recommendation as a BUY.
Year end Sales Pre-tax Tax rate EPS PER Net div Yield
30 June (000) (000) (%) (p) (x) (p) (%)
2004A 12,364 (254) 0 (0.12) 0 0 0
2005E 23,000 1,100 29 0.34 12.0 0 0
2006E 32,000 2,000 24 0.66 6.2 0 0
Source: Source: Seymour Pierce Limited and Company data
pre-exceptional
*Seymour Pierce Ellis Limited acts as Broker to Envesta Telecom plc
No of shares (m) 229.6
Market cap (m) 9.4
Net cash (m) 0.751
Enterprise value (m) 8.6
(%) 1m 3m 12m
FTA relative +50.3 +115.6 +46.4
12 month high/low (p) 4.35/1.65
Next news
Interims March 2005
Business
Alternative telecoms provider, specialising
in supplying high quality international
connections.
www.envestatelecom.com
Price and price relative (-2y)
ENVESTA TELECOM 28/2/05
M A M J J A S O N D J F M A M J J A S O N D J F
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
PRICE
PRICE REL. TO FTSE ALL SHARE - PRICE INDEX
Sourc e: DATASTREAM
Source : Datastream
Contact
John Beddoe
020 7107 8004
johnbeddoe@seymourpierce.com
Research Alert Monday 28 February 2005 6th tranche
Seymour Pierce Limited
13th Floor
Bucklersbury House
No. 3 Queen Victoria Street
EC4N 8EL
Switchboard: 020 7107 8000
Fax: 020 7107 8102
www.seymourpierce.com
Important Notes
This document has been issued and approved for distribution within the United Kingdom by
Seymour Pierce Limited only to market counterparties and intermediate customers as defined
under the FSA rules. No other person should rely upon this document. The information
contained herein is compiled from a number of sources and is believed to be correct, but cannot
be guaranteed. It is not to be construed as an offer, invitation or solicitation to buy or sell any
securities of any of the companies referred to herein and any opinions expressed are subject to
change without notice. Seymour Pierce Limited and/or its associated companies and ultimate
holding company may from time-to-time provide investment or other services to, or solicit such
business from, any of the companies referred to in this report. In addition, they and/or their
directors and employees and/or any connected persons may have an interest in the securities of
any of the companies in the report and may from time-to-time add to or dispose of such
interests. Seymour Pierce does not meet all of the FSA standards for managing conflicts of
interest, as a result our research should not be regarded as an impartial or objective
assessment of the value or prospects of its subject matter, though of course we will always
ensure that it remains clear, fair and not misleading. Seymour Pierce Limited is authorised and
regulated by the Financial Services Authority, and is a member of the London Stock Exchange.

"Definitely one to watch" thats todays Shares Mag opinion after commenting on this weeks new product launch.

Just checked with Barclays online to find max buy limit has dropped to 37.5K.

magic 5p broken - roll on short term target 6p

Share magazine has re-iterated its BUY recommendation on EVS this week. Great potential. It will go higher

hlyeo98: On a forward PE of only 5, it's hardly surprising. Still cheap as chips!

My prediction is 5.8p by the close and 6.4p on Monday.

Its on a mission - can see it touching 6.5p later today.

It will reach 10p next week

5.88p now. Yippee!

I'm sticking to my prediction of 5.8p at the close and 6.4p on Monday. Good luck!

hello guys, very exciting stock, join in this family @5.56p, wish it is not too late. :-)

swseun: There's a lot more to come.

thanks grevis, wish u hv a very nice weekend!

Thanks swseun. Trust you will enjoy your weekend as well.

Envesta will go higher next week to 6.7p

how could you figure out 6.7p? just interested as I am quite new in stock market and like to know more.