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".

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.'

Pipex Communications PLC
05 April 2004




Pipex Communications plc (the 'Company')

Directors Shareholding


The Company was today informed that Christina Kennedy, a non-executive director
of the Company purchased a total of 42,800 ordinary shares of 1p each in the
Company, representing 0.002% of the issued share capital of the Company, at a
price of 11.6p per share. Following this transaction, Mrs Kennedy has a
beneficial interest in 0.0092% of the Company's issued share capital.


The shares are registered in the name of Project Consultants Limited.


This information is provided by RNS
The company news service from the London Stock Exchange


Excellent accounts last Friday and now a director buying shares in the company! Can only mean one thing, lots more upside in the share price to come.

Done deal!

Host Europe PLC
05 April 2004



Host Europe plc (the 'Company' or 'Host Europe')

Update on recommended cash offer by PIPEX Communications plc ('PIPEX')



On Friday 2 April, following the announcement of the recommended cash offer for
Host Europe by PIPEX Communications plc, PIPEX purchased a total of 155,480,000
ordinary shares of 1p each in Host Europe at a price of 2.525p, representing
13.18 per cent. of Host Europe's issued share capital.



Following such purchases, PIPEX now owns or controls 618,602,141 ordinary shares
of 1p each in Host Europe representing 52.44 per cent. of Host Europe's issued
share capital, including 463,122,141 ordinary shares, representing 39.3% of Host
Europe's issued share capital, in respect of which PIPEX has received
irrevocable undertakings from certain Host Europe Shareholders including
Directors.



For further information:

Host Europe plc Tel: 020 8896 7500
Stephen Sadler

ICIS Tel: 020 7628 1114
Tom Moriarty
Archie Berens


This information is provided by RNS
The company news service from the London Stock Exchange

big sells late on

wats on board then, is something goin to hapen...

with regards big sells bear in mind that there are an awful lot of shares issued in pxc so it all comes down to scale of size. most probably usual stuff going on in order for big boys to get their fat greedy mits on smaller holder shares!!!!imho

I sold out today, couldn't resist getting on board with CFP.

Pipex always seemed to have too many shares in circulation for us to see any phenomenal rises in price.

16p is still on the cards for those prepared to wait.

All the best

OG

Nearly did the same to move into CEN but still hanging on with PXC

Anybody have any idea why its down so much today???

Ta

beats me, too many shares flyin around in my opinion..

Money, Should you take AIM at small companies - Apr 2004
"SHARES on the Alternative Investment Market (AIM) have surged by 67% over the past year and companies are rushing to take advantage of the boom. Investors who bought shares in PIPEX Communications, an Internet services firm, when it floated on AIM in October 2002 have seen their original stake soar 400% as the shares have risen from 2.25p to 11.25p". (Taken from The Sunday Times)

PIPEX, the telecom network operator and provider of broadband business solutions, has further proved its commitment to quality after receiving the international standard for management systems, ISO 9001: 2000.

To achieve the standard, PIPEX, had to demonstrate that the company is running efficiently and effectively, through the use of formalised management systems, including written procedures, instructions, forms and records for all key business processes within its offices, data centres and warehouses. These processes cover every stage of the customer journey, from initial contact to billing and post sale support as well as PIPEX's back office activities, such as business planning, human resources and network design.

PIPEX can use the registration, which provides a best-practice model for managing and improving management systems using a process approach, to demonstrate to existing and potential customers that it continues to be dedicated to the constant improvement of its quality management systems.

The ISO 9001: 2000 enables staff members to gain a greater understanding of the organisation's processes, how regulatory and statutory requirements impact on the company and its customers as well as heightening their desire for customer satisfaction. It also improves internal efficiency and employee involvement.

Mike Read, Chief Executive Officer at PIPEX, comments, "PIPEX has always been committed to delivering quality throughout every aspect of our operations, from initial phone contact to pre- and post-sales support. This continued commitment is reflected in our recent registration to ISO 9001: 2000".

"This registration demonstrates to our customers that we operate our company in a way that is compliant with British Standards. This should give them the confidence they need to continue or begin a relationship with PIPEX."

The ISO 9001: 2000 currently covers PIPEX's Putney and Oxford offices, Harbour Exchange data centre and Eynsham warehouse. PIPEX plans to roll out the accreditation to the rest of the company by the end of 2004.

PIPEX was one of the first ISPs to gain ISO 9001: 1994 registration in March 1996. As a customer-focused company, PIPEX regularly conducts surveys to ensure that its customers are benefiting from the processes it has in place. This information is used to improve its processes with the customer in mind.

About PIPEX

PIPEX is a telecom network operator and provider of broadband solutions that combines the best infrastructure, services, support and people to make communication simple for business. A highly respected tier one Internet Service Provider (ISP), PIPEX Communications provides both voice and data connectivity solutions, helping organisations to keep their lines of communication open.

Established in 1991, PIPEX was the UK's first commercial ISP, set up to deliver affordable, high speed, high quality corporate Internet access. The company delivers the same outstanding benefits to businesses today.

Now owning one of the UK's most extensive communication networks, PIPEX has data centres in London, Manchester and Leeds and over 100 Points of Presence (PoPs) nation-wide. This includes 20 point-to-multi-point radio PoPs offering wireless DSL. In addition, to ensure that its customers’ network traffic is always routed via the fastest, most resilient path, PIPEX has over 200 public and private peering arrangements with large Internet backbone providers, including the London Internet Exchange,

With its unparalleled experience of connecting organisations and its multi-award winning service, support levels and dynamic people, PIPEX is reputed, by its clients, to be one of the safest pairs of hands in the telecom industry. As a result, the company has achieved and retained an enviable customer list, ranging from SMEs to blue chip companies and including two-thirds of the UK's top 100 companies (as listed by The Times). Leading to outstanding and unrivalled growth, PIPEX was named as one of the top hundred fastest growing UK unquoted technology companies in the third annual "The Sunday Times ARM Tech Track 100 league."

Talk about a kick in the teeth, is todays dilution part of the Host Europe deal, or is it just pants????

Simon

I see another Photobition