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.

Here is the new broker update, from the new broker, Cenkos, thanks to a post at AFN :

"rivaldo - 28 Sep'07 - 15:11 - 692 of 692

I have the new Cenkos note. It's pretty definitive. They have a 70p target, and they forecast 7.7p EPS for this year on a 13% tax rate and 7.1p EPS next year on a 30% tax rate. They say:

"Undervalued on every measure

AT Communications (ATC) has reported encouraging interim results today with
significant progress made on a number of fronts during the period: Rocom and
Britannia, acquired in 2006, have now been fully integrated; the restructuring into 3 operating divisions has been completed and the group has recruited almost 60 new staff to help drive and support the growth anticipated in the short to medium term. It is clear that this restructuring is beginning to deliver results, with over 100 customer cross selling opportunities in the pipeline and a number of landmark deals announced recently.

We believe that ATC is on track for a strong second half to 2007 and that the run-rate will make our 2008 forecasts look very comfortable indeed.

ATC looks compellingly cheap on every measure and we believe that there is significant scope for a re-rating during the remainder of this year.

Results

ATC delivered a 25% increase in PBT to 2.3m (stripping out exceptionals and amortisation costs) on sales up 168% at 42.7m. This increase in PBT was achieved despite the significant number of staff added during the period and a 0.5m increase in the interest charge to 0.7m - to service the debt taken
on in August 2006 to finance the acquisition of Rocom. EPS decreased to 2.1p (2.5p) primarily due to exceptional costs and amortisation. Stripping out these costs and normalising the tax charge gives EPS of 2.6p. Debt increased to 19.8m (18.5m) during the period due to the increased working capital
requirements of the business, but a placing in August raising 4.8m (net) together with operating cashflow in H2 should see debt levels fall to c15m by the end of the year. Interest cover remained very comfortable at almost 4x.

Growth and Visibility

ATC has established a strong platform for growth in the first half of 2007. The group now has a compelling product offering and the ability to reach a very broad target market, ranging from the smallest to the largest companies in the UK. Organic sales growth of 11% in the first half was achieved
despite the upheaval of the reorganisation and at a time when 60 new recruits were being integrated and trained. We believe that the building blocks are in place to deliver growth in excess of this level in the medium term. Furthermore, the transition towards more managed service revenue and longer term contracts in general is likely to significantly improve the quality of the group s earnings in 2008 and beyond.

At present, c60% of group revenues are contracted and recurring - we expect this number to be nearer 70% by the end of 2008. We believe that on a PE of 7 to December 08 the market is significantly undervaluing ATC s earnings stream."

Nice little write up on ATCG.


http://www.sharecrazy.com/tipsheet/atcg.html


.

Thanks for that PP - might as well do some background reading while waiting for Moneyam to stream prices to us again...

2 page comment on the interims is out from Edison ;

http://www.edisoninvestmentresearch.co.uk/research/category/AT%20Communications

Oct 01 2007

Rerating overdue

AT Communications (ATC) reported interim results last week ahead of market expectations. A strong sales pipeline will underpin growth in the second half and well into 2008/09. After a period of investment and reorganisation, management focus is on organic growth, which we estimate will be at a level of 10 to 15% per annum for the next three years. We believe that the shares, on a P/E of less than 6x 2008 earnings, represent a significant opportunity for rerating to more...............................................

PP this share has been heavily punted by TW and LH are you part of this group?

halifax, LH has only recently tipped ATCG, and TW never has. Perhaps your referring to Share Crazy printing the LH tip ?

I have been in well before LH made his call on ATCG.

Considering I have been posting here well before LH made his buy call, why do you consider that I would be part of this group ? Seems strange to me...........

Recent interims encouraging on sales front, but business remains highly geared and in present climate I am now out.

http://www.investorschronicle.co.uk/Columnists ......



Interest in telecoms is reignited

Created: 3 October 2007 Written by: David Malony

Investment banks have raised their recommendations on European telecoms operators in the past month, but this does not mean it is any easier to see which companies have found a winning formula. Indeed, the real action is likely to be found at the smaller end of the sector.

For several years now, telecoms companies have been fighting declining voice revenues. Selling broadband has helped, but subscriber addition rates are slowing down. So telcos are now following IT services companies into managed services. But the real pay-off will come from next generation networks they are building, such as BTs 21st Century Network.

These services will be hosted in data centres and virtual (shared) servers and billed as service and applications-led contracts, instead of charged on time or bandwidth used. Internet applications from telephony to productivity software will also be managed from the new network. As a result, upgrades, user admission and performance monitoring will be quicker and better co-ordinated.

Telecoms and software consultancy Ovum estimates that in the UK alone this market is currently worth 2.1bn (excluding traditional voice services or mobile services) and is set to grow to 2.8bn by 2010. There are no clear market leaders yet and new service providers include Alternative Networks, Azzurri Communications and Matrix Communications (not listed, but a subsidiary of Dublin-listed Calyx Group), as well as more familiar names such as Pipex, Redstone and Thus.

These UK companies are modelling themselves on a combination of IT systems integrators and telecoms network resellers, following the example of Vanco, a virtual network operator that started out as an IT distributor. And all are launching more network-based managed services such as Thus' recently launched Demon virtual server.

Admittedly, service providers do not have the scale of the incumbents, but this can work to their advantage in picking up business from companies that want bespoke network service. And given their modest size, they are all vulnerable to being taken over, too. However, the big telcos are also biting back by bolstering this side of their business. For instance, BT has made a number of acquisitions in traditional IT services - like Basilica Computing and, just last week, Lynx Technology in the UK, CS Communications & Systemes in France and SA in Belgium.

ATCG looking oversold, has been caught up in fears over its contract with Vanco. Vanco has cash flow problems but its order book is at very healthy levels, concern is it could reign back its orders with ATCG.

Even if this is the case, ATCG has shown itself to be quality operator in telecoms market with many other blue chip clients and this is likely to continue to grow.

Could therefore be due a likely recovery soon, good opportunity to get in. DYOR

THought this was due an update, seems stuck at the bottom at present but news is all good.

Recently renewed and increased a contract by 2.5 million a year and director buying.

p/e currently about 7.

Expect to see 50p in the medium term.

The Company was informed on Friday 16 November 2007 that Alex Tupman, Chief
Executive of AT Communications, has acquired 500,000 ordinary shares in the
Company, representing 0.65 per cent of the Company's issued share capital at a
price of 34.5p per share. Following the acquisition, Mr Tupman has a beneficial
interest in 12,597,044 ordinary shares, representing 16.3 per cent of the
Company's issued share capital.

Bought into these today seem to be winning some nice orders, on a low PE and I'll see how they are post the March results. Got them cheaper than a couple of directors paid for theirs. Good luck all.
2517

They have had some good contract wins and the news today is positive re awarded approved supplier status to OGC Buying Solutions. The last trading update was positive, and good to see they are trying to reduce debt levels, now forecast to be cut another 4.0m this year to 12.8m.

Still have ATCG on watch list, I'm just wary of buying AIM companies until markets settle down, and the new capital gains tax measures have worked there way out for this financial year.

Will keep following with a view to buy.

http://www.investegate.co.uk/Article.aspx?id=200803030700021456P

AT Communications Group Plc
29 February 2008

AT Communications Group plc
('ATC' or 'the Group')

ATC is an award-winning supplier of Information and Communication Technology
('ICT') solutions

www.atcommunications.co.uk

De La Rue plc awards multimillion pound contract to ATC

The Board of ATC is delighted to announce that the Group's ATC Solutions
division has secured a landmark three year contract with De La Rue plc, the FTSE 250, world-leading currency production and cash handling company.

Under a three year global master services framework contract, ATC will provide,
install and service IP Telephony across De la Rue's global business units. The
deployment will take place in stages commencing with immediate effect and will
cover the UK, Switzerland, USA and Canada. The contract is anticipated to be
worth several million pounds over the period with maintenance revenues
generating a similar amount.

Chris Johnson, Director of IS at De La Rue plc commented:-

'We selected ATC Solutions because it could provide our business with a
complete, full-spectrum service right through from consultancy and design to
implementation. This integrated approach also removed the need to engage
multiple suppliers which, as a global business, is both more efficient and cost
effective.'

Alex Tupman, CEO of ATC, commented:

'This is a landmark contract win with De La Rue and a quantum leap for the Group as it demonstrates our ability to deliver managed solutions on a global basis, providing business transformation to our customers and enabling them to maximise the benefits of IP technology. In tandem with recent contract wins including Amazon plc, this demonstrates the significant progress that the Group is making in securing larger, blue-chip contracts and it is testimony to the success of our recent divisional re-organisation. I look forward to reporting further progress in due course.'

what seems to be the problem with this stock

Write up in the sunday press indicating they were cheap in view of the De La Rue contract.
2517

its the debt position holding ATCG back otherwise I would expect a re-rating

What exactly is the debt situation here?
It would seem that the share trading ,i.e. all sells this morning , bears no relation ship to the companies prospects.

Nice contract win.
2517

This is all very well,but nothing seems to be able to shift the price much.
Results out next week,maybe that will help.

Let's hope so cp.
2517