Gladstone is a company which has recently become cash generative and is experiencing a turnaround in its buisness. Following a board change the group has turned the corner in securing future profitablility and is on track to report profit ahead of expectations within the next few months. Currently valued just over 5mil this stock is need of a re-rating and seems to have been exempt from the recent rallys.

Excerpts from Full year:

"Gladstone has made a full year profit after tax for the first time of 184k (last year loss 1,676k).

- Earnings per share before goodwill and exceptional items has risen to 1.53p (last year loss 1.50p).

- The quality of earnings has improved. Software support contracts and rentals now represent 37% of turnover (last year 31%).

- Ongoing investment in our core product MRM.plus2 continues to position us ahead of our competition."

"Our MRM trading division is performing in line with management expectations. We raised 260k by an equity placing in September 2003 and will continue to use
this cost efficient route to raise funds for expansion when appropriate. We are
continually looking for the right international opportunities and are exploring
the use of overseas distributors. Holmes Place, one of our private sector
clients, recently decided to upgrade to our central database solution and will
be using our software across 5 European countries. We have good reason to be
optimistic about the future."


Chart:




Full year:

http://moneyam.uk-wire.com/cgi-bin/articles/200312231436156124T.html

Gladstone MRM are the only operational business of Gladstone, which is why it probably re-directs.
My only problem with the site is that the news section needs updating as well as some other areas - many sites use flash now.
They have done multiple sites for Six Continents, Marriott Hotels, John lloyd Leisure & many others, so i don't think it's any lack of web knowledge.

I have just taken a look at the sites..they are poor by any standards and why do they appear so out of date and lacking in news?

Could they be so busy they have no time top spend on own website? Also waste of resources, maybe thats the trick in making profits, which is what the company is now doing rather than wasting time on areas that do not bring a return.

If I had more funds available now..I would buy as I only see value.

Well aI would assume they dont make a lot of buisness via their website. Thus they dont feel the need to make it aesthetically pleasing.

Interesting to note the RNS from yesterday:

LONDON (AFX) - Gladstone PLC said it raised 110,000 stg before expenses via
a placing of 1 mln shares at 11 pence per share.
It added the proceeds of this placing will be used to strengthen the balance
sheet for business development.
rn

Possible reason for the lack of movement on high volume days.

I see from the returns yesterday that Ben Merrit C.E has bought 200000 shares at 11p. While another non ex has sold over 1 million at 12.7p.

A bit odd but I see this as a vote of confidence by Ben in the business.

I just look forward to the results or a positive trading statement before they go into a closed period.

Why do you think they needed to raise the cash though as I though they had over 500,000 in the bank and were ahead on profits from May statement?

Do you think they may be buying another business so to expand?

Could be, it wasnt a large sum of money - if it was I would have been a bit worried but waiting and holding these ones - still fundamentally undervalued.

Trouble with this one it looks like dead money until results. However, just the time that one sells it shoots up for some unknown reason so I will sit and wait and even buy a few more if it slips back to 11p

This is looking very interesting now. Acquisition in the making:

LONDON (AFX) - Gladstone PLC said it has issued and allotted a total of 1.5
mln new shares via a placing at 11 pence per share, raising 165,000 stg before
expenses.
The proceeds of this placing will be used to strengthen the balance sheet
for business development.
rn

Key part is the latter sentence.

Has not done anything for the share price Kael.

Of course it hasn't, reason being that it was placed at 11p. current mid price is 11.25p There needs to be further clarification on the company's position. Of course a trading update wouldn't go amiss current value stands at 11.25p = @ 4.7million.

Question that investors would like to know is why would they need to make a placing when they are cash generative? There are only a few possible reasons for this. The only reason I would panic about is that they are in the red atm.

This imo is not the case. Therefore it leaves us with a few options, most of which would be encouraging. The only inkling for the moment is that last sentence, which, the way it is worded, could mean any number of things. IMO they would either be looking to make an acquisition, funding for international expansion or funding for a new product. Whichever option proves to be correct they are the market leaders in their buisness and that can only be encouraging.

I am currently still holding and will until the share price represents fair value. I expect that to occur after full year results. At the very least this little company is worth 10million. Full year results will give a clearer picture, it's just a shame they are a few months away. :(

As with so many AIM companies the directors take the piss and give small sharesholders no information and do not give a stuff. So many insider deals done. Here we have one director selling over a million shares at 12.7p and another buying at 11p and no information as to whom purchased the others.

The current CEO only added 200,000.

Do you think the buyers were kept in the dark and shelled out 250K?

I agree we are at the mercy of company directors on many of the companies we invest in, but as far as i can see they have done everything above board.
I'm sure if you emailed or rang them they would probably tell you a bit more within the realms of legality.
Apparrently they had a good show at the LIW in Birmingham the other week & I'm sure patience will be rewarded - hang in there.

Orion..you seem to have a fair knowledge of the company..Are you an informed investor that has gleaned greater information from a source that is fully clued-up on the current state of affairs/current business/assoiciates (soon to be?)

Were you at the show?

You say hang in there - sounds as though you know this could be rewarding?

I notice this has started to rise today, are the results due very soon?

i rang the company the other day to enquire re the date for results i was informed that they have till the end of feburary to issue the results for this year ... but stated that it will be more likely before then as per last year ..in which case we are looking at the start -mid december ..expect some movement ( most likely upwards around then )

i hold gladstone

Yes, beginning of December is expected.

What are the fixed assets made up of? It has a high net assets value against its market cap.

i have sold out on these today.. good company with a static share price.. there is value elsewhere ....

Well I never, people selling out of GLD! Fair enough, yes there is value elsewhere and I expect the share price is being held down for the upcoming consolidation. However, giving the recent rises in tech stocks this is looking even more undervalued than it was. Not for those who like the rollercoaster ride, but the AGM and interims should prove interesting and hopefully the end of the price manipulation.

Kantona - Static for 9 months yes, but the 50 & 200 day MA suggests that GLD could well break out on the upside very soon; and when it does break, well there looks to be an easy 50% upside. That 9-month plateau will act as a considerable springboard, so I would recommend you look at the chart and reconsider. This share is now a strong Buy - currently c.13p

One of the few good techs not to have broken out yet - when it does be ready!