18th October 2007 : Leadcom voted "AIM International Company of the Year for 2007"




Main Web Site : http://www.leadcom-is.com/

Investor Relations Email : investorsinfo@leadcom-is.com

Short summary.

Messed up late last year.
Chasing too much revenue, not keeping their eyes on margins.
Project over runs. Margins lost. Profit warning.

Corrective action now taken.

Q1 results hit with redundancy costs but cash positive, Q2 and Q3 results should show the results of corrective action.

Large seller has offloaded their holding. Might have stopped now.

Will be dual listed on TASE "very soon".



*******************

Try listening to the Q1 webcast, my earlier post from AFN below :



The Q1 webcast is worth a listen to for anyone interested :

http://viavid.net/player/dcem.aspx?sid=00005197

Lots going on :

1800 employees reduced to 1450.
Focus on high margin countries only, from 40+ countries focus now on circa 20 countries.
Countries walked away from, moved to "dormant" status - easy to start up again should opportunities at decent margin arise.
Impact of this move on revenue minimal, impact of margin expected to be great.
North America and South America merged into just one America's area, with one GM.
New Chairman
Dual listing happening very soon - to be TASE and AIM listed.
Benefits of changes made in Q1 will be seen mostly from Q2 and Q3 onwards
Asia-Pacific and Africa business growing well.


Concerns for margins going forward :

Weakened dollar - effect via impact on Israeli operations as Shekel strengthens.
Steel prices - could effect.

Outlook for 2008

280m US$ revenues for FY.
Better margins than Q1 going forward, Q1 08 better than Q4 07 - continuous improvement target.


etc....... worth a listen.

Thanks Papalpower, much appreciated.

Every little tick up helps, and its actually making a kind of upwards trend now.

My main holding is at 19p so any moves up now add to nice profits, and a few Dec spread bets are on from 17p, so it all adds up nicely.

The seller certainly looks to be holding off (for now) so we might get to say 23p before they start again ?

Who knows.

I think its a bargain too so GS can join the club. Myself holding at 19p average, time will tell if this will make me a few bob or not from 19p :)


http://www.globes.co.il/serveen/globes/docview.asp?did=1000360632&fid=942

Goldman Sachs builds Leadcom stake

Tali Tsipori 10 Jul 08 17:15

Goldman Sachs International has become a party at interest in Leadcom Integrated Solutions Ltd. (AIM: LEAD), after acquiring 4.9 millions shares in the company, amounting to 4.11% of its share capital.

Londons Alternative Investment Market (AIM) regulations stipulate a 3% threshold for becoming a party at interest in a company.

Goldman Sachs considers Leadcom, which builds communications networks for cellular operators, a bargain at its current price. The share has fallen 67% since January to give a company value of $44 million. The share is down 74% from a year ago, and down 80% from its peak price. Goldman Sachs' holding is currently worth $1.8 million.

Published by Globes [online], Israel business news - www.globes-online.com - on July 10, 2008

New major holder :

http://www.hansacap.com/Home/Mission+Statement



Leadcom Integrated Solutions Ltd

July 18, 2008, Hod Hasharon, Israel -

Leadcom Integrated Solutions Ltd.('Leadcom' or 'the Company'), (AIM: LEAD), was notified on July 17, 2008 thatHansa Capital Partners LLP holds 5,500,000 of Leadcom's ordinary shares, representing approximately 4.57% of the Company's issued ordinary share capital.

Enquiries:

Eytan Mucznik - Leadcom
Tel: +972 9 769 0002

Andrew Godber - Panmure Gordon
Direct: +44 (0) 20 7614 8385
*T

For those that want to read it, the Q2 results today from Nokia :

http://www.nokia.com/A4136001?newsid=1236588


Relevant Snippets (note Leadcom is no longer reliant on any single company like NSN, however trends and comments are worth noting) :


- Nokia Siemens Networks net sales of EUR 4.1 billion, up 18% year on year and up 20% sequentially (up 26% and 23% at constant currency).

- Nokia Siemens Networks operating margin of 3.8%, excluding special items, and 6.7%, excluding special items and purchase price accounting related items arising from the formation of Nokia Siemens Networks

- Nokia and Nokia Siemens Networks continue to target for Nokia Siemens Networks market share to remain constant in 2008, compared to 2007.

- Nokia and Nokia Siemens Networks continue to expect the mobile infrastructure and fixed infrastructure and related services market to be flat in Euro terms in 2008, compared to 2007.



Nokia Siemens Networks

Second quarter 2008 net sales increased 18% to EUR 4.1 billion, compared with EUR 3.4 billion in the second quarter 2007. At constant currency, Nokia Siemens Networks net sales would have increased 26%. Net sales year on year growth was strongest in Latin America, followed by Middle East & Africa, Greater China and Europe. Net sales were down in Asia-Pacific and North America. The higher year on year net sales primarily reflected the favorable comparison to the second quarter 2007, which was negatively impacted by challenges related to the start of operations of Nokia Siemens Networks, which commenced on April 1, 2007.

The following chart sets out Nokia Siemens Networks net sales for the periods indicated, as well as the year on year and sequential growth rates, by geographic area.

NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC AREA
EUR million Q2/2008 Q2/2007 YoY Change Q1/2008 QoQ Change
Europe 1 412 1 186 19.1% 1 212 16.5%
Middle East & Africa 553 369 49.9% 448 23.4%
Greater China 413 294 40.5% 269 53.5%
Asia-Pacific 1 076 1 183 -9.0% 944 14.0%
North America 158 164 -3.7% 192 -17.7%
Latin America 455 242 88.0% 336 35.4%
Total 4 067 3 438 18.3% 3 401 19.6%



Outlook Nokia Siemens Networks

- Nokia Siemens Networks signed a multi-year managed services network operations agreement with Embarq Corporation in the United States. Nokia Siemens Networks also won a consulting contract with China Mobile Group Beijing Ltd to improve the operator's user experience.
- Nokia Siemens Networks demonstrated its Internet High Speed Packet Access (I-HSPA) solution with the world's fastest data call using a mobile device in a test with Mobilkom Austria, in which data speeds reached 10.1 Mbps.
- Nokia Siemens Networks launched the industry's first DWDM single optical platform serving Metro to Core and added internet access to its Village Connection solution.
- Nokia Siemens Networks won contracts with Celcom in Malaysia, Tusmobil in Slovenia, TIM in Brazil, Zain in Iraq, DTAC in Thailand and both Indosat and Telkomsel in Indonesia.
- Nokia Siemens Networks signed contracts for Mobile TV services with Swisscom (in partnership with Nokia) and SingTel in Singapore. It also signed a contract with T-Mobile Austria for its subscriber data management solution, which allows the operator to manage its customers' experience more proactively.
- In May, a consortium led by Nokia Siemens Networks launched a commercial hosted mobile broadband service throughout Thalys' high-speed European rail network. Nokia Siemens Networks also concluded deals with GSM-Railway in India and Europe.

The annual report is on line, and well worth a read imo.

http://www.leadcom-is.com/siteImages/Annual_Report_2007_Final.pdf

.


I may be rose tinted with Leadcom, as I have a significant holding which is at 19 pence average levels but I am expecting them to turn it all around, and recover strongly from here on in. As was noted in Q1, the benefits will be seen of the changes in Q2 and Q3, and Q3 onwards should see the biggest "gains" from the restructuring.

They are pushing ahead with the TASE listing and as said in the AR it should happen during the second half of 2008.

Goldman Sachs think its a bargain, the CEO has been buying shares and imv interims later in August and the Q3 update should be compelling in terms of a solid recovery and giving a very positive outlook.

If that is the case, the present price, as Goldman Sachs think, is a bargain.

Roll on late August and the interims :)

From anther board, as someone asked me to look at it.


I have had a look at LEADCOM, and to me it looks like they have done all the hard and nasty work of downsizing already, before the credit crisis.

If this was done right, and it appears to have been done so, then Q3 and Q4 should see a decent profit made.

They may have been lucky in that they have done all the hard work (downsizing, laying off etc..) before the credit crisis.

If they are lucky then going forward they could well now deliver strong results and be in a very good position, whereas other companies have to go through the pain of downsizing and slowing growth.

Therefore, the debt is a concern, as is any impact on their credit lines, but if they remain fine, then there could be a significant turn around here. Risky, yes, potential, lots of it.

Q3 results will give the guidance everyone needs.

On a PSR basis, it must be about 0.1, which means price to sales this is a raging buy (ignoring the debt).

I seriously think LEADCOM is going to see its last lap.

For anyone still following this one, I do have a look from time to time, it appears they are now buying back their own debentures, as quite simply with banks offering very low interest rates, its cheaper to borrow from the banks.

Not only that, their bonds are junk status, so they can use low interest bank loans to buy back their own high interest bonds (as people want cash), not only reducing their finance costs in future, but they can buy them back at well under face value due to junk status.

Quite an astute move, and should move them back into being profitable, as one of their major "costs" is the finance costs of the bonds.

Might be interesting to watch again moving forward.


http://www.tradingmarkets.com/.site/news/Stock%20News/2101983/

Leadcom swaps debentures for bank loans: The company will buy back up to NIS 20 million of its bonds.

Mon. December 29, 2008; Posted: 03:34 PM

The board of telecommunications infrastructure integrator Leadcom Integrated Solutions Ltd. (AIM: LEAD; TASE:LEAD) has approved a plan to repurchase up to NIS 20 million its Series A debentures, which will be financed by bank loans and/or other means. The company said that a bank had agreed to provide a $3 million loan (about NIS 12 million) for the plan.

Leadcom became dual-listed on the Tel Aviv Stock Exchange (TASE) earlier this month. Two years ago, the company raised NIS 125 million in an issue of Consumer Price Index (CPI) linked bonds to institutional investors. The company's stocks and bonds are both listed on the TASE.

Leadcom said that its board had authorized management to buy the debentures on the TASE or in off-floor transactions, at times and prices of its discretion.

Leadcom's share rose 5 percent in morning trading on London's Alternative Investment Market (AIM) to aen0.032, giving a market cap of aen3.85 million. The share has fallen 95 percent since the beginning of the year. The company's bonds are currently traded at junk yield of 41 percent, at a price of NIS 0.70 compared with their nominal price of NIS 1.10. The share was unchanged this morning at NIS 0.22 on the TASE.

In effect, Leadcom is exchanging its bonds for bank loans because the low interest rate in Israel enables it to obtain loans at a much lower cost. At the same time, the buyback of the bonds at their current price enables the company to obtain bank loans that are less than the debt it has to cover. The buyback may also help restore investors', especially Israeli investors, confidence in the company.

Leadcom said, "The company's board of directors believes that the plan will reduce the company's liabilities, will improve the company's financial ratios, and will enable the company to recognize a profit from such reduction in its liabilities."

Leadcome had $26.7 million in cash at the end of September and its current liabilities to banks and bondholders totaled $40.7 million. The company's long-term liabilities totaled $31.3 million. Its shareholders' equity totaled $31.2 million, amounting to 18 percent of its balance sheet total.

pp yet another of your dead duck ramps.

halifax, this was a very nice share for anyone buying from 40p to 90p, or that later big rise as well.

Nobody tells you to buy or sell, thats your own choice, I even made money at the end on this (after making some going long) shorting it from 27p to 17p.

As it stands now, if the banks are willing to lend them money, and it seems they are, and they can buy 1$ of debt debenture for 0.5$ cash.......then they will turn a profit, and a profitable company with access to bank cash, well, they will rerate upwards.

No position myself, but watching how it pans out.

BATM is almost certainly a better bet in this sector

This one has not moved. Results should be some time this month.

Notice a 250K bid on the order book at 4.6p today and a 50K AT buy at 5.1p.

Wonder if this old woofer might have a bit of a run up, certainly has not moved from this level for some time.