.

i;ve emailed KJ suggest you all do but my main q was why no mention of CCR and
also sentiment await my response if not I will call him we do have power and suggest unhappyness/anger vented at company not just on bb's

Here is one to tie your brain in knots, Corporate Synergy on the trading update day of the 20th Sept reiterated the 2.0 million PBT and 0.66p EPS forecast for this year 05/06.

What is going on ?

I`m going back to lay down in a darkened room !
DB66

PP Hi,

Whats going on is the P.I's are running scared, and the institutions are buying all the stock dirt cheap .... this is easy money for them, 100% profit is pretty much guaranteed, although I bet they stick around for a massive profit .....

Cheers,
PM

Another Pauly ramp ... last one was a bit crap mate , your losing your touch.

another bad day where to now ?? could they go bust

My thoughts exactly Gordon.
DB66

Hardly likely to go bust !

No debt
Were making a profit
Lots of Institutional backing for aquisition(S)
Selling part of the business for cash
New calling cards product expected to do well
VOIP is growing fast, and EVS can capitalise by moving fast now with aquisitions.

I just received e-mail to say a results date has not been confirmed yet, but I will be informed as soon as one is set.

Cheers,
PM

Too many posts decrying the company over the past few weeks (H has been at it for some months) and seemed to have caused turbulence in the minds of many. That's why herds run.
We have braved the storm and hope people like PapalPower and others see a return on their investment.
We won't mind a loss should that happen because we are a load of stubborn ba**ards. (Although we may well be proved right.)

As always remember -

DYOR

haystack
i believe in free speech, so squelch nobody. i accept a contrary view......what sane person wouldnt? its your arrogant know it all attitude that gets up my nose. be negative by all means, but dont be negative for the sake of it.

A tale of two trading updates ....

I have merged them together, so we can see the context and changes of each part easier .... Sections titled in italics are from the latest update

===========================================================

Focus within the business has been to prepare the company for the medium and
long term strategy to remove its dependency on one market. The thrust of our
strategy is to build a retail product to complement our managed wholesale
business, build or acquire a VoIP (Voice over Internet Protocol) capability
then, through acquisition, move further towards a retail offering ready for a
fully converged Voice and Data world over the next few years.

Strategy
In an acceleration of the strategy originally set out in March 2005, driven by
the recent market sector moves such as ebay's purchase of Skype (the VoIP
retailer) and recent trading in our core managed wholesale business; the Company
will be moving away from its concentration on the wholesale voice business into
retail, focusing on the new era of Voice over Internet Protocol and IP.

Over the last few months the Board has been in detailed discussions with a
number of significant acquisition targets that have the requisite attributes to
contribute to Envesta's focus on Retail Voice and IP Data delivery. Upon the
successful completion of these acquisitions, the new operating companies will
work together as part of the Envesta Group, moving towards using VoIP as the
chosen platform for delivering voice to end-user customers. The presentation of
Envesta's strategy to these companies has been warmly received along with
institutional interest in investing in the acquisitions.

As part of this strategy and given the continued volatility within Seven
Telecom's managed wholesale calling card business, the Board has decided to
divest the Seven Telecom operation in order to focus on its acquisition strategy
to move into the more stable retail voice and IP space.

===========================================================

Trading

Revenue and PBT were in line with market expectations. Revenue increased by over
75% on last year, whilst absolute gross profit was more than double that of last
year. This growth, along with significant investment in the new product areas,
has however put a strain on our working capital and we will look to address this
early in the new financial year.

Current Trading Update
The competitive market position in the managed wholesale part of the Seven
Telecom business has dramatically changed, with the current market leader
growing from 8% to 60% of the 495 million pre-paid card market (Source: Schema
Market Analysis 2005) in less than 6 months (Jan 05 - Jun 05). This has been
achieved by extremely aggressive pricing and cash collection.

During the second half of the last financial period, (January to June 2005), our
sales were not adversely affected, however the cash collection cycle slowed
considerably in the last quarter. The Company's actions to secure cash
collection have however adversely impacted revenues in Q1 of the 2006 financial
year and we expect this to continue. In this competitive environment where such
major changes in market share have occurred, the Board's opinion is that the
only sustainable long term protection mechanism would be to introduce a
direct interface with the end user pre-paid retail customer, hence ensuring that
cash collection is direct and greater margin is secured. Creating this
interface is not consistent with Envesta's strategy and as such the Board
believe that Seven Telecom should be divested to an acquirer who has this
capability. In preparing Seven Telecom for divestment operating costs are being
adjusted to a level consistent with the reduced revenues.

===========================================================

Cheaper Call Rate progress report

Following the launch of www.cheapercallrate,com on 28 February 2005,
the Company now has a growing position within a UK retail market worth 460 million per
annum(1). We are particularly pleased with the level of Gross Margin achieved to
date, which is in excess of 33% and we expect the product to deliver
profitability in our current financial year.


Kevin Jauncey, Executive Chairman commented, 'I am delighted that the results
this year showed a strong return to profitability. In line with the strategy, we
continue to hold a number of acquisition discussions, which we hope to bring to
fruition in the next period. In the meantime we are well progressed in our plans
to incorporate additional VoIP capability as a vital piece in the jigsaw.'


===========================================================


Existing Managed Wholesale Business

The Managed wholesale business continues to operate in a very important part of
the UK International market-place. Our current commissioned research shows that
the market for International telecoms via a pre-paid calling card remains
significant at 495 million per annum(1). While this is an important part of the
UK market it has always been and continues to be a volatile sector. Envesta
competes in this market by continually seeking new niche opportunities.
Our strategy is not to grow this business further, but use it as a foundation
from which to move deeper into retail products thus removing our reliance on
this single market.

Equity Raising
In the announcement dated 28 July 2005 we outlined the need to raise working
capital for the current business. This process was put on hold while we
investigated interest in the Seven Telecom business. With the decision now to
divest Seven Telecom as part of the acceleration of our strategy, raising the
working capital is now underway.

In addition to the working capital required for the existing business the Group
will require investment capital for our future acquisition strategy. We expect
the capital raising(s) specifically for each major acquisition to take place
over the next 12 months. The Board anticipates that such acquisitions would be
financed by a combination of the issue of vendor shares and equity cash placing.

Hi All,

Narrowing my last post down to the relevant points below, I see both RNS as positive, and that nothing much has changed, apart from instead of just cutting back wholesale, they are going to sell it.

All the aquisitions were mentioned before, as was capital raising, as PP says the CCR is missing from the second update, so we can only assume that nothing has changed, you don't have to update things that have not changed, so that part is still expected to be profitable, with 33%+ gross margin

The drop is way overdone, because when EVS buy the 'number of significant acquisition targets' and dump the difficult wholesale part, they will be in an extremely good position, and the price will zoom back up. The institutions are backing EVS in that plan, that speaks volumes for the potential.

Sitting tight on 575,000 shares, and waiting for the above to happen ....

Cheers,
PM


July :-

Move away from volatile wholesale voice business
Move into retail
In detailed discussions for a number of significant acquisition targets
Expecting successful completion of these acquisitions
Presentation of Envesta's strategy to these companies warmly received
Institutional interest in investing in the acquisitions.

September :-
Divest the Seven Telecom operation
Focus on acquisition strategy
Move into the stable retail voice and IP space.



In July :-
Revenue and PBT were in line with market expectations
Revenue increased by over 75% on last year
Absolute gross profit was more than double that of last year
This growth has put a strain on working capital
Look to address working capital early in the new financial year.

September :-
Market position in wholesale has dramatically changed for the worse
During January to June 2005 sales were not adversely affected
Cash collection cycle on wholesale slowed considerably in the last quarter
The Company's actions adversely impacted wholesale revenues in Q1 of the 2006 financial year and will continue.
Need to ensure that cash collection is direct and greater margin is secured.
Seven Telecom should be divested to an acquirer
Seven Telecom operating costs are currently being reduced

July :-
CCR now in a growing position within a UK retail market worth 460 million per
annum
Pleased with Gross Margin which is in excess of 33%
Expect the product to deliver profitability in our current financial year.


Kevin Jauncey, Executive Chairman commented
Delighted results show a strong return to profitability
We continue to hold a number of acquisition discussions
Hope to make acquisitions in the next period.
Well progressed in plans to incorporate additional VoIP capability


July :-
Market for Wholesale Business PCC significant at 495m P.A
Wholesale Business Market continues to be a volatile sector
Strategy is not to grow this business further
Move deeper into retail products

September ;-
Equity Raising
28 July 2005 said we needed to raise working capital for the current business.
Now to divest Seven Telecom
Acceleration of our strategy
Raising the working capital is now underway

Group will require investment capital for our future acquisition strategy.
Capital raising(s) for major acquisition(s) spread over the next 12 months.
Acquisitions to be financed by issue of vendor shares and equity cash placing.

superrod
I think your complaints are misdirected. As I said before you should save your complaints for the rampers. The writing was on the wall for EVS and the rampers got in the way.

I have sold all mine and moved on to pastures new. IMHO this is now dead in the water.
Took a small loss and have since made up elsewhere,thank heavens for small mercies.
Anyone looking to buy into this one now should carefully read the last two trading statements and analytically dissect them!
They are far from being positive as to the future of EVS, why the hell would they have to divest 7 if the business strategy was on a firm footing.
They seem to be clutching at straws now to keep investors onboard, there is no way they will be able to compete in the VOIP marketplace with all the big boys piling in.
As always DYOR and be lucky.
I would imagine a lot of people will be losing a lot of dosh on this one in the next few weeks , thinking it is a good recovery play.....

Recovery play my arse, bet it goes bust first!

Tangle Hi,

Sounds like your not reading my posts, Seven never was any good, they have said that several times, and that they want to move from wholesale to retail .... that is where the CASH will pile in from, as opposed to wholsale with long waits for your cash.

Seems your clutching at straws, they don't need to because they have ALREADY been told by INSTITUTIONS that investment is READY AND WAITING so they have NO REASON to try and convince ANY private investor to come here.

As for them being able to compete, that is YOUR OPINION, and you should say so. They have been competing and doing VERY WELL, but the cash flow of the wholesale market is too slow, and thats why they are moving to VOIP, which is going to be HUGE, and room for SEVERAL players, all making a lot of profit.

IMVHO You will be be the one 'losing money on this over the next few weeks' because you bottled out, or were just a trader and have come back to bash the stock, if so, forget it, becuase it's soon going back up.

The way you invest, you will go bust well before EVS ever will, as you already "Took a small loss ", and no doubt will keep making "a small loss" until your broke .... and your also a basher !!!!

I saw loads of similar bashing posts on YOO after I tipped them at 3.75p, loads of bashers saying YOO would go bust, what a load of bollocks, just as your 'EVS going bust' is.

LOL !!!!
PM

Hi Paul,

Lots of good researching there and comment.

I thought it funny today the Investors Chronicle did an article on penny shares, one of the Wrecks to Avoid was.................. IDN (no mention of EVS).

1/ They said the newcomer has not effected their revenue at all. They said that from the 1st of July their own aggressive cash collection policy had affected revenue. Simple, reduced revenue but more cash in hand. By their statement you have to assume this new hardball cash collection policy has worked at the expense of reduced revenue. Better cash in hand and lower revenue than big revenue and no cash. Question, do they still have a cash problem ? Maybe not if the Q1 hardball cash collection/loss of revenue play worked.

2/ From the last 2 paragraphs the equity raising is two stage, first stage appears not to be a placing, but simply divesting Seven Telecom. Second stage is acquisiton from vendor shares and placing(s).

3/ From point 1 you can see they see no future in calling cards, if they leave it at the niche level of say 9 to 10 million revenue a year they can make profit, anything over that and the cash collection cycle kills them. So they are reducing Seven back down to lower revenue but cash in hand profitible before selling it off, if you cannot grow it sell it to someone who can.

4/ Inside information, yes from the 1st of July people might have been laid off as they cut Seven down to size, and those people might have leaked the situation as at July. Things have changed though.

Depending on what they can sell Seven Telecom off for (after downsizing it) the end result might near to a cash shell with a reasonable amount of money in it and then accelerate into a modified phase 3 of their plan ?

Its not that bad a trading update, but its misleading I think. The shorters have had their fun and now results and a real statement of situation might clear the air. I will not add before results and crystal clear statement as the two Kevins did mislead in my opinion with the first trading statement.

Cannot see the admin call being correct from what they said in the update, they are downsizing Seven and losing (deliberate) revenue to get cash back and make it profitable with a realistic cash collection cycle and then selling it, its what I read.

".........The Company's actions to secure cash collection have however adversely impacted revenues in Q1 of the 2006 financial year and we expect this to continue.

That sounds like they have been pressuring their customers to pay outstanding bills sooner or be cut off and the customers have taken their business elsewhere.

Haystack yes but doing so and losing revenue allows the cash out to cash in cycle to catch up with itself. A serious loss of revenue July would leave them sitting on a cash pile by end September. Then divest Seven Telecom and they could be sitting on a large cash pile (plus of course whatever they said they signicantly invested in on the VOIP side)

Just an idea.

DB66 lets hope for some clarity at the results and then a rebound, I hope so anyway.

I have added one of my longer term punts on a new thread. This one will not do anything on its own, but will move as more and more news comes in to confirm their strategy is working, as it looks like the turning point for this one is 2006 so am building my stake at the present low prices.
Have a read I think it should be a good long term punt, something you can tuck away for a couple of years, but after EVS I can understand if you find it not so attractive !

http://www.moneyam.com/InvestorsRoom/posts.php?tid=8727#1

Haystack are you softening your tone or we have an imposter at AFN ?

haystack II - 23 Sep'05 - 19:13 - 21636 of 21649

The whole episodes of the TS and TU have been bizzare in the extreme. They are both at odds with their own and broker estimates. The tone of both is one of a lack of confidence in the future. If it does turn out to be as bad as investors think (I am not convinced that it is that bad though), then something catastrophic must have happened during the last 6 months to change things. A major fall in revenues that was irrecoverable would seem to be the only reasonable scenario.

I have heard that both the calling card and wholesale capacity markets have undergone major changes recently in terms of profitability due to reduced margins and numbers of players involved.

I always though that this was and over valued stock, but not to the extent of such a fall in price.

haystack