Tipped by the independent 2/01/2004

........."And so to our traditional "wild card". Pipex Communications, formerly known as GX Networks, is a telecoms company created by one of the entrepreneurs behind Ukbetting, Peter Dubens. It has been assembled from six smaller players. The ambitious company is generating cash for the first time but is still not widely followed in the City. It could be an undiscovered gem".

What is the market capitalisation now compared to the projected cap of 230m?
How will this affect the share price?

i don't know a lot about market capitalisation and the like i am a newbie the story was sent too me from digital look they have more info there

ok Thanks. do you have the link ?

Moneyam quotes page shows mkt cap for PXC as 108m & for HER = 21.5m. Don't know how accurate/up todate this info is. However, it only comes to a ttl of 130m mkt cap.
Difficult to see where the projected 230m comes from ?

http://www.digitallook.com thats the link for digital look
http://www.guardian.co.uk/business/story/0,3604,1180699,00.html thats the link for the guardians story
http://www.timesonline.co.uk/article/0,,748-1056259,00.html and this is the link for the times story

Many thanks

rememeber before further acquisitions, pipex value was 12p+ a share. now a furthur acquisition is almost definate, take your bets people, we see how far it gets..

Checked on Yahoo Finance website.
PXC mkt cap = 202.5m
HER mkt cap = 27.6m
This is how the 230m joint mkt cap comes about.
Be interesting to see where the SP now goes. I'm not going to make any upside predictions cos then the SP will dive ! :)

Do we ignore all the selling again 3M so far?

its been goin on for awhile now, the sells are out weighing the buys, with results so close why would people want to sell. its all in the open about pipex. the companies share value is worth around 12p to 16p currently, theyll will be anoucing a new acquision soon. yet thers little interest in this baby. i think this will be a long term buy. be patient..

Big buy at 17:30

will see the rise 2morrow!! hopefully... are results on the card whos knows anything can happen..

The deal must be done!

Results posted, excellent news too regarding Host and only up .38 whats going on does anyone know? Is the news of Host having an adverse effect?

I reckon results were not exactly sparkling anough. Too much jam tomorrow ! although results for 2004 will be good and 2005 excellent! Also, there's a fund raising involved to finance HER. I think, in the short term, we're going to have to rely on broker BUY recommendations and good press over the weekend.
Should also get good mentions in next weeks shares mag. & Inv. Chron.

Need to keep in mind that the market overal is in the doldrums, not much buying going on. This may change once the new tax year gets under way next week

So am I correct when I say that Pipex is trying to pay for HER by creating more shares, therefore diluting what our current shares are worth?? I guess if the purchase of HER is a good deal then Pipex will be worth 30 Million more, but that would have been paid by the new shares, so in the end is this going to make any diffence to the share price short term???

I hope we do see some movement on this share, I think people will run short of patients soon and start selling, or have we already seen this, hense the price not moving...

Simon

Simon - this deal should not be earnings dilutive to Pipex. From memory, the prospective no(2004)for HER was around 1.7 mill pretax and at the take out price of approx 2.5p/share HER investors are being taken out on a p/e of around 20x. On the other hand, Pipex are - at the issue price of 10.5p (per placing share)- issuing its shares on a p/e of around 26x (based on a prospective profit no of 6.5 mill) ....therefore the deal should be earnings enhancing!

Although the placing shares are being issued at a smallish discount (10.5p)to the current price - I would now regard this as a floor. The institutions involved with the placing would have had access to the management/brokers/advisors and should have been able to gauge the merits of the deal (and prospects)first hand before agreeing to part with over 30 million.

As an aside......I didn't see much commitment from the principal vendor (he is going on the board but didn't take any of his proceeds in Pipex shares) - perhaps he may not be in for the long term. [I see the vendor of the "original" Pipex resigned for the board today.] Mr Abby Hardoon Adulayavichit certainly had a colourful time at HER....an extract from an EGM notice (May 2003):

"Mr Hardoon, Victor Gareh and Marcus James Paul Lauder (the "Requisitionists"), who each have substantial shareholdings in Host Europe, have requisitioned the EGM for the purpose of proposing resolutions to remove from office the entire Board of directors, with the exception of Mr Hardoon, and to replace it with a new team (the "Resolutions"). The recommendation of the Board of Host Europe (except Mr Hardoon) to shareholders is to vote AGAINST the Resolutions."

Part of the circular also disclosed....

"'The Company has been considering dismissing Mr Hardoon for the last few months on grounds which include the following:

- Lack of leadership skills combined with an ineffective management style and a track record of consistently poor management decision-making;

- Inability to communicate effectively, including inarticulate written and oral communication;

- Highly irregular attendance at work;

- Favourable remuneration and benefits given to the directors' secretary (with whom Mr Hardoon has been having an extra-marital affair), which were unilaterally implemented explicitly against the will of all other directors and contrary to the provisions contained in the budget as approved and signed off by the Board'."

I wonder if his secretary will be coming with him to Pipex.........??

Rgds

sit back for a couple of months people, u aint gonna see a good rise yet..

nav

I dont mind the wait, just I had the good fortune to purchase my stake in Pipex at its highest ever price :) another 5% or so and I would have been "in the money" (just).

Simon

Pipex results in brief


Pipex Communications PLC
02 April 2004

2 April 2004





PIPEX COMMUNICATIONS PLC



RESULTS FOR THE YEAR ENDED 31 DECEMBER 2003





PIPEX Communications plc, the telecoms network operator and provider of business
broadband solutions, today reports its results for the year ended 31 December
2003.



Financial Highlights

Turnover of 35.2 million, up from 8.1 million in 2002
Gross profit of 15.3 million, up from 2.0 million in 2002
Gross margins increased to 43.5% from 24.5% in 2002
Loss before tax of 9.9 million, down from 11.8 million in 2002

Month on month EBITDA positive by year end



Operational Highlights

PIPEX established as the 5th largest broadband operator in the UK by
customer numbers
Acquisition and integration of XTML Ltd, CIX Ltd, Firstnet Services Ltd
and PIPEX Internet Ltd
Annualised cost savings of 15.2 million
Customer numbers increased from 25,000 to over 150,000
Group rebranded PIPEX Communications plc in November 2003 (formerly GX
Networks plc)



Peter Dubens, Executive Chairman, commented,

'2003 was an extremely important year in the development of the company. It saw
the completion of the first phase of a transformation plan that was launched in
September 2002. During this period revenues increased more than fourfold and
the Company moved from heavy losses to being month on month EBITDA positive by
the year end. We now have the necessary scale to take advantage of further
opportunities in the UK market.'



Mike Read, Chief Executive Officer, commented,

'Since 2002, we have been successful in creating a telecoms company that seeks
to provide first class services to its customers. Our successful integration of
the acquisitions has produced a balanced portfolio of products and services for
our customers, and leaves us well positioned in the UK data services and
broadband markets.'