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.

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. "