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.

moneyplus: It certainly seems well and truly undervalued. Revenues looks set to hit around 15 million for the full year which is twice their market cap. They remind me of MXC a year ago; growing stongly, good strategy, good management, etc.

Envesta Telecom PLC
21 January 2005


ENVESTA TELECOM PLC


Envesta Telecom plc ('Envesta Telecom' or 'the Company') today announces that
the Board has granted options to Executive Chairman, Kevin Jauncey, over
5,000,000 ordinary shares in the Company. These options are vested now, and are
exercisable on or after 12th November 2006 but before 21st January 2015, and are
exercisable at a price of 2.9p per ordinary share, the closing middle market
price as at 20th January 2005.

The Board has also granted Kevin Jauncey incentive options over a further
20,000,000 ordinary shares in the Company, which will only vest if and when the
Company's share price reaches certain targets. The target share prices, number
of options vesting at those prices, and exercise prices of these options are as
follows:
Number of Shares over which
Target Share price Option exercisable Exercise price per Share

4p 5,000,000 3.4p
6p 2,500,000 5.1p
8p 2,500,000 6.8p
10p 10,000,000 8.5p

These options are exercisable two years after vesting, but in any event no later
than 20th January 2015.

From This Is Money......

Envesta Telecom: Trading for the six months to end December will show significant improvement on the same period a year previously. The company has experienced continued high growth throughout the period, in particular during Christmas and New Year, achieving record levels for December. Un-audited like-for-like comparisons show that revenue for the period was more than 9m compared with 5.24m in the same period last year. Envesta has bought The Airtime Group for around 340,000 in cash.

Thanks Grevis2. MP

Grevis2, in your opinion, can the target prices of these options be used as a useful guide as to what the Co might expect to achieve? or is it merely to act as an incentive to the directors, be it realistic or not. Your comments and thoughts would be greatly appreciated, incase you hadn't already guessed, i'm quite new to this game!

Cheers

paulbrooks71: I think it's a good indication of the company's confidence and their belief that the share price will grow. I would expect them to keep us well informed of developments to encourage the price higher. On the basis of fundamentals, the price is already cheap and does not properly reflect how well they are doing. Incidentally I've just topped up. Good luck!

Just look at the way this company is growing. If they can keep this up and options give them the incentive to do so, then that's terrific in my book. The increase in their gross margins is particularly significant.

19/01/05
Envesta sees H1 revenues up 70 pct, plans significant product launch UPDATE
AFX
LONDON (AFX) - Envesta Telecom PLC said revenues in the first half are expected to be up over 70 pct after continued high growth throughout the period, in particular during Christmas and the New Year with record levels in December.

The group also said that, in the six months to Dec 31 2004, gross margin contribution is up over 120 pct, reflecting the company's concentration on higher quality and higher value business streams.

This greater margin contribution combined with an increase in the efficiency of its specialist telephony infrastructure has resulted in the company experiencing significant net profit growth, as operating costs have not increased in line with revenues.

Unaudited like-for-like comparisons show that revenue for the period was in
excess of 9 mln stg compared to 5.24 mln for the same period last year.

Envesta Telecom PLC
28 September 2004
ENVESTA TELECOM PLC
PRELIMINARY RESULTS
Envesta Telecom plc ('Envesta' or the 'Company'), the alternative telephony
provider, announces preliminary results for the year ended 30 June 2004.
Key Financials
- Turnover up 14% to 12.4 million (2003: 10.8 million).
- Turnover increased by 36% in second half of year compared to first
half.
- Gross margins up to 20% in second half of year and maintained in the
current year.
- Gross Profit 2.2 million (2003: 2.1 million)
- Net Funds increased 56% to 0.75 million (2003:0.48 million)
- Formation of Corporate Service to ensure maximum usage of Envesta
switching and routing services
- Eurotel Exchange has established new trading relationships in Italy,
Portugal and Spain.
- Employment of Voice Over Internet Protocol ('VOIP') technology increasing
margins.

Support seems to be on the increase. A lot of blue is appearing. Should get a tick up around 2.00PM I reckon.

big drop today - 2.675p now

Corporate Synergy & Seymour Pierce have issued predictions for EVS forthcoming results.

Corporate Synergy' were issued on 14/01/05 and Seymour's on 20/01/05. The consensus is for net profits of 760K this year, rising to 1.62 million in 2006, giving prospective PEs of 9.41 in 2005 and 4.95 in 2006.

21st January 2005
Envesta Telecom PLC

Detailed Broker Forecasts
Date Rec Pretax Eps Dps Pretax Eps Dps

Corporate Synergy
14-Jan-05 0.75 0.33

Seymour Pierce
20-Jan-05 BUY 0.77 + 0.24 + - 1.62 + 0.54 + -

Consensus 0.76 0.28 - 1.62 0.54 -
1M change +0.01 +0.00 +0.32 +0.14
3M change +0.01 +0.05 +0.32 +0.15

Max online buy is currently 100K with Barclays. Can sell 250K with ease.

From Hemscott: All very positive!

Envesta Telecom PLC
Outlook

(19/01/05) ANN: ch - "...the company will continue to explore alternatives to organic growth to further build the business"

(07/12/04) ANN: ce - "I am delighted to announce that recent performance has more than met our expectations"

(11/11/04) ANN: ch - "Lyndon has made a huge contribution in turning around Envesta and i am looking forward to applying my industry experience and working with the management team in implementing the exciting growth opportunities Envest has"

(28/09/04) Prelim Report: ch - "We are now looking forward with confidence to continuing our programme of growing top line revenues to enhance overall margins and increase capacity utilisation"

(27/09/04) Annual Report: ch - "Your board expects positive contributions from all divisions during this financial period and believes Envesta Telecom PLC is now better placed than at any time in its history to deliver strong growth"

21st January 2005

Does Investa Telecom still hold 27% of Formjet? If so, then their holding is currently worth over 1 million.

Monday's Constant Gainers & Losers
MoneyAM

Formjet is 43.2% ahead at 6.625p since announcing a new product launch last week.

Grevis2, thanks for keeping the info flowing on Envesta, i agree all the news seems to be positive, i too have just topped up. As far as i can tell envesta paid 100,000 for a 27% stake in Formjet, however this was subsequently diluted to a satke of 13.75% following a pre-IPO share issue.

What do you make of the maximum buy you mentioned earlier? What does it mean in practice? Is it due to lack of liquidity?

Cheers

paulbrooks71: Thanks for clarifying Envesta's stake in Formjet. Had a feeling that it had been diluted but could not find the relevant RNS.

Just noticed someone bought 1 million EVS at 2.95p. Would be nice to see a few more of those. Good luck!

Hi guys,

Just found this thread and read all the good posts :-)

I've been a holder of these since mid December and am very pleased the way Envesta has been progressing since the appointment of Kevin Jauncy.

I agree that Envesta seems to be undervalued, maybe overlooked by most, and will top up again tomorrow.

Good luck to all,

tangle.

Tangle

I agree Envesta is undervalued. Mrkt Cap 6mill on a t/o of 15/18mill and all the recent good news in terms of profit margins etc. Suggests that the currenrt sp should have plenty of upside. Question is when will the mm's re-rate it. Product launch due in Feb and finals in March hopefully we'll see significant movement during this period.

It will be interesting to see IDN'S finals on Monday and how the market responds as they are in the same sector as EVS and of similar market size.

Like you I think I'll be topping up in EVS soon.

Cheers
Warren

Valued at 6.5m
Cash - 0.75m
Completely debt free
Limited exposure to taxman thanks to previous years losses
Record turnover and on course to meet broker forecasts of 750k profit for full year then....

in January we are told turnover is achieving new highs again
Exciting and important product launch announced for February which incidentaly comes at a very low cost to the company and the results for this exciting period in March. Can't wait for that exposure myself.

A high margin profitable 1m turnover business has also been acquired for a measly 340k and some very reputable names are appearing on the board. The Directors stand to make a serious amount of money if they can achieve 8p plus and i believe we will see more director buys before very long. They will be well rewarded but so will we if these respectable individuals simply keep the company on its current path.

I sincerely believe this share is under valued at a modest 2.85p and that a re-rating will occur within six months following further success across the expanded business. A market cap of 15m on an undemanding p/e of 15 with a turnover of 20m + come end of year results. This will still leave room for serious upside.

Easy money? The board thinks so. For thier expertise and guidance to 7 figure annual profits they want to ensure thier hardwork pays off via the share options. Great attitude with plenty of motivation and an everybody wins scenario.

Let the good times roll.....

If Seymour Pierce are right then Envesta will make 1.62 million next year which makes this stock a complete snip. Growth stocks would normally command a PE of around 20 which gives the potential of a 5 fold increase in Envesta's share price. Good luck!