The chart for this stock says it all.

The company is quickly becoming a real gem in the telematics field, over the last month the co. has announced re-seller contracts which will bring in min. 2m or >30% of last years T/O alone.

The company is already experiencing massive organic growth so the co. should be profitable now following last years 500k loss.

The co. has approx. 6m cash and is in one of the hottest growth areas at the moment.

With a market cap. of 25m this will be re-rated x2/3 minimum within the next 6-12 months IMHO.

MM buys went through on Friday with T/O continuing to build, one to put on your monitor...

optomistic

Quite right. Another of those SM's! The new SPs will be in the same region for the two companies. HCEG have moved ahead since the announcement although plenty of good news as well. They were written up as a 'penny share' in IC and that hardly gives the impression the directors would like to create.

Eric

Anyone,

If the shares do get consolidated (1 for every 50) what will happen to the price? Is it a simple case of 50x the price when it gets consolidated? Or is there another way of pricing the new shares?

skids

Sorry folks posted on wrong thread..

skids.... Your right. 50X the price. ie; 1.5p becomes 75p

Bought some for the bounce, nothing doing.

Think I'll wait till the consolidation is done with now.

skids

They could move a bit ahead of the consolidation if you take a lead from HCEG. One reason may be that they will look more stable and the spread might drop. Just got this feeling that you might be better in first.

Eric

Is this going to follow TFC or take advantage of their falling share price ????

no surprise here RED again!!!!!!!!!!!! :-[

All sells this AM but only 1.9 million shares traded, can't expect things to change much for the better yet Douggie, the results were a bit of a shock to all and will take some while to rebuild some confidence in the stock.
But CYH does have a good product and has a chance of making good in the future.
Not too happy consolidation though, not got happy memories of those from the past!
I also hold HCEG, they seem to be weathering the pre consolidation period well but they do have a product which is 'in the news' which I think must be helping it along.
regards
opto

I think this has just followed tfc down, poor sentiment in the sector. We will return!

Unless there's a crisis at work, I'll slip over the bridge and go to the EGM Monday morning. If there are any (sensible) questions anyone would like me to put to the board and I'll do my best. I'll take notes and post replies Monday or Tuesday evening.
IN

ironnick, If the subject isn't covered I would like it explained, in laymans terms, how the new accounting system is responsible for the loss this year and yet it is said to be likely to increase profits in future.
Have a good morning out,
regards
opto

ironnick
can you ask them why when they announce these deals why there never seems to be any indication of projected revenue ,as its ok having loads of deals but we need to know what there worth !!
Regards Richard

ironnick - I would have liked to attend but distance and work load stops me - thanks.

I would like some assurances that the consolidation isn't so they can further weaken the share, by issuing another bucket load over the next 6 to 12 months.

I really feel this question needs to be hammered home and some commitment from the board, that this isn't the direction we are heading.

Another way of putting that would be: are they planning to raise capital via a share issue in the coming 12months? - Are there any major investment plans for the coming 12 - 24 month period?

have a good day.

regards

NF

ironnick, optomistic

First, optomistic and your question re the effect of the accounting change. cybit had taken credit for a contract when sold; quite normal. They have changed to apportioning the credit over the life of a contract; again quite normal. The hit is taken when you move from (a) to (b): you haven't got the revenue flow from previous contracts and the new ones are too spread out for a short-term impact.

The question for ironnick to ask is when does this work itself out and they will be back into posting profits. More specifically, we need revenue and profit projections for the coming two years.

Oh! and by the way, if you can get the answers so that we know but other are still in cloud cuckoo land, that would be best as I am not currently in and don't want to niss out on the fun when it happens!

Eric

:o( ;-\

I attended the EGM this morning and put the following questions to RH & NJ. The questions were put to them prior to the EGM starting, so it was a bit like getting a private shareholders briefing! The Finance Director helped out in places. I'm sorry if the answers are not as full or complete as those that posed the questions might have wanted, but it's probably my fault for not being able to write as quickly as RH speaks! I can't remember who asked what, but it's here for all to read and digest.

CybIT Questions for the Board
1.What happens to TFC warrants at 4.5p after consolidation?
A. Amounts will be divided by 50 at whatever the share price is at the time after consolidation.

2. Can theboard clarify or expand a little further on whether they are actually negotiating additional opportunities at this time, and if so would these major contracts be of more significance that those already won.
A. No comment apart from what has already been said or is on the web site.

3. Also in which set of results should we start to see the benefits of the new A/C policy show through.
A. 2006, then the effect will be cumulative.

4.We've seen a first European contract & FSOL launched in Sweden. Is this Mr Colin Cartwrights' input?
A. Colin Cartwright is part of the business and it was the business that won the contract.

5. Are there any Whitehall (Government) anticipated prior to the next AGM? (ie from Sir John Wheeler)
A. None known specifically, working hard to win contracts (blah blah!)

6.Are there plans to launch FSOL/ Mapamobile in other European countries?
A. No, but we are not limiting our horizons. (Politician's answer)

7.Why not disclose the cost to buy Mapamobile?
A. Commercially sensitive information. (NJ did say that it was a very good deal though)

8. Will the board be announcing projected revenue figures for Mapamobile?
A. It is an integral part of the business and revenues will feed into the business.

9.Mapamobile was purchased partly with 2.5m shares @2p, was this because the board & MI International regarded this as present fair value or because of projected future growth?
A. Commercially sensitive information.

10.The board has previously stated that they were using a more conservative accounting model than their competitors but then went and changed the accounting procedure to 'a more conservative accounting model'. How do they reconcile the apparently conflicting nature of these two statements? Is it even more conservative or was it not that conservative in the first place?
A. More conservative, sensible and prudent policy (Finance Directors answer)

11.What are the perceived benefits of ISO 9001:2000 accreditation? I.e. will it help to win contracts or was it a prerequisite for the Sainsbury's contract?
A. It is a necessity and a requirement to win some contracts , it puts checks and balance into the business. It provides huge benefits .

12.Was the switch to CybIT programme launched to take direct advantage of MPS'S difficulties? How is the programme going?
A. No comment. (Both RH & NJ acknowledged the difficulties that MPS are in. Neither would elaborate any further)

13.Will the board list details or resellers on the website and if not why not?
A. Most information is on the website. There is insufficient time to put everything on the site. They do what is required.

14.Are Artemis happy with the companies progress?
A. All institutional investors are happy (Not just Artemis). (My take on this - Judging by the numbers of the voting (200m+ V's 59m against the resolution) is it would appear that this consolidation was institutionally led!)

15.Are there any plans to develop (or acquire) RFID tracking technology to be used, with for instance Sainsburys?
A. Looking for technical opportunities, the business (industry) is evolving.

16. The board (RH) stated at the AGM that it would take steps to keep investors/share holders better informed. What has been done since the AGM?
A. Most information is on the website. There is insufficient time to put everything on the site. They do what they are legally required to do.

17.Can the board explain, in laymans terms, how the new accounting system is responsible for the loss this year and yet it is said to be likely to increase profits in future.
A. They are taking their revenue in proportion. More conservative, sensible and prudent etc (Finance Directors answer).

18.Why when the company announces deals/contracts are there any indications of projected revenue? Is there any the board can communicate to investors/share holders details of the revenues so that they can be better informed?
A. Commercially sensitive information.

19.Are they planning to raise capital via a share issue in the coming 12months?
- Are there any major investment plans for the coming 12 - 24-month period?
A. Don't know (I wasn't convinced by this answer!).

In so far as the trading statements are concerned there have been no material changes to announce (See latest RNS). RH did say that the No of units in use now was about 12000 and customers, about 600. This represented a significant increase on a year ago, on both counts. The renewal rate for their original customers is about 85%. For their newer customers the retention/renewal rate is higher (no figure given). He talked a bit about being a grown up business, market leader etc. I believe that the board will be far happier with the institutional investor, rather than the likes of you and I. I am, however in for the (very) long haul (at least 4+ years).

Sorry it's a bit long and dreary, but I did my best.

ironnick many thanks for doing your best, to you the very best of good Wishes for Christmas and a most Prosperous New Year. (wish we could look for it coming from here) but I suspect not! Doug. :o)

ironnick, thank you.
opto