Some good news at last from this weeks Shares mag. Tim Freeborn revisits the company and altho no firm details are given about new deals he says they will be announced this quarter. I would think that this could be at the same time as the interim results are announced. I for one will be holding on cos they will fly sooner rather than later! ( 8.30% up today!)

My reading of the note is, on balance negative, even before johnny's strictures. At the interims, EPO stated that two new systems were scheduled for delivery on October and Wanadoo was to go live, having been delivered in May. The annoucement of one only implies that the other two have not yet happened. It may be that everything is awaiting the new systems scheduled for delivery in March but the company hardly has enough cash to go beyond that date. I did argue the corner for EPO a couple of months ago but the balance is going against them in my view.

Eric

EWRobson

yes you are right that they do not have the cash but i know that the cash position is about to be increased, i cannot tell you how, but they will not be asking us. This will leave them with enough cash to complete these deals and if they dont this time then that will spell the end of EPO for good and RC!

ssanebs

Hope you are right with your info mate. I have no reason to doubt you as most things youve alluded to have happened in the past. I also know you like me, are still a substancial holder of this share- bought at a much higher price aswell! i hope they make it.

ssanebs

That is the first positive news about EPO in living memory, i.e. if you have only been alive, say, for six months! Bit concerned that you and jdubb, our column's author, were left alone on the sinking ship. So have just gone back in on a low key basis - it makes you watch events much more closely. So, others say, what is positive about the news? Somebody is prepared to lend EPO cash! They must have done some due diligence and that has told them that it is not all over yet. If it is not all over, then they could come out at the other end of the tunnel. If they do that, the new systems must be working and, lo and behold, their significant USPs, e.g. banking network, Hong Kong project, data base investment, are factored back into the price which then recovers to the levels of only a year ago! Eureka, that's worth a modest stake!

Eric

EWR

I like you eric, you bring a great deal of realism to the party, not to mention your well thought out posts over the last few months. Thx and welcome to the rollercoaster again!!

"cash position is about to be increased"

Will this not result in further share dilution ?

I recollect EPO can issue shares for cash at any time they like. Is this correct ?

Hi Hannick, new to all this and was wondering with this new cash position, will it drive the share price up or down??

hannick

EPO state quite explicitly in their interim statement that shares will not be diluted through fund-raising. Their collective methods for raising funds then were quite ingenious, including hiving off their IT development function. I think it is reasonable to accept that there will not be any dilution this time: the Board would not renege on their commitment even if RC might. What is more surprising is that there are sources prepared to stump up funds but that is evidently the case.

hampi_man

As posted above, I did read this news of new funding as positive. If EPO has a future at all then they are very cheap historically. The silence from the company and the lack of news of business won has had a drastic effect on the share price, with the cap. down to 5m. In one sense, the news re more cash required is negative, implying the lack of sales revenue and the inadequacy of the funds raised in August. What is positive is that a funder(s) is prepared to stump up cash and that must imply confidence that their loan, which is presumably what it is, will be repaid. Some level of due diligence must have been undertaken. If EPO is still trading this time next year, then the price must have recovered to levels early this year, say 3p to 4p, and could be significantly higher. There is little doubt that the market is there. Contracts like Hong Kong and Wanadoo demonstrate the potential. My own view, argued previously, is that the key event is like to be the delivery of updated systems. For those with a background in IT, it is well known that the costs are primarily in the development and that multipliers come into action if a decent sales base is established. They either don't sell enough, in which case they may be out of business; or they are successful and the company could take off. Its worth a flutter but not a major stake as these are certainly risk funds!

EWR

Thanks a million for taking the time to explain that to me. Now I feel I have a base from which I can spring and hopefully get to read the signs along the way.

2.5m trade at the end of the day,
was it a buy or a sell, guess we'll know tomorrow although someone on advfn
bb claims it was a buy as he knows who bought them and that more deals are
on the way.....
hope he's right but we shall see......

well, still a little life in the old girl yet then.....
i mean epo, not er indoors.....

Does anybody know whats happened with wanadoo?
Has it been delayed or wasn't it mean't to go live yet?
Is there anybody home?

i take it thats a 'no' then on all 3 questions......

Is this news that you meant Saanebs ?

Contract news at last! Decent revenues, particularly in year 2 and 3. Looks good - and genuine! Anyway, switched some funds in as price seems unlikely to stay at 1.25p bid.

Eric

another small deal to keep the coffers topped up. As EPO are setting this up for the client the 1st year will prob make nothing if they extend on the deal with clients year 2 & 3 will be good, if EPO are still around!

ssanebs

Given its a sound deal, the value of the futures is that they give a basis for borrowings and thus underpin the share price. I wonder if anyone can vouch, in turn, for Interconsult. I suppose there must be a bit of fear that it is an insider job - scratching the back - particularly as nothing is paid up front. The buying is solid enough; though, with the price of the shares, it only amounts to some 60K worth so far. Nevertheless, it is the second bit of positive news within three weeks; if this keeps going the price will really start to recover. The cap. is only 6m so a reliable 3m in 2007, if it is reliable and followed up by others, should do wonders for the sp.

Where are the old faithfuls - and unfaithfuls?

Eric

ssanebs,

as you are closer to epo than most i thought i'd ask you......
rumour is going round again that wages have not been paid for october....
just wondered whether you can enlighten us further, one way or other?

Do any of our city people know Interconsult? - can't find anything on the websites. First, do they really exist? - at least the anwer to this is yes, because Financial Dynamics say so. In teresting that the co-signatories are a PR advisor rather than financial analysts - no sign of Nabarro Wells; proably better paying the PR firm anyway. Second, are they credible, viable and are the business volumes realistic.

ssanebs

Any info. on funding? Plus dibbles question re cash and staff payment. Or is this malicious rumour from discontented former employee(s) - which we've had before on this bb.

A good trading day. Mind, its only 65K of buys but its 1% of the equity. Marked up on the RNS and then didn't move. Funny, other companies move more, e.g. BNH, on much less volume. Having lost quite a packet last time round, would be good to get it back - not so good to throw good money after bad! On balance, this looks good news and could be a good reference sell for other projects. Other views? Or has everyone else gone assuming the light was out?

Eric

EWRobson - 16 Nov'04 - 22:30 - 632 of 632


Or is this malicious rumour from discontented former employee(s) - which we've had before on this bb.
............................................................................

I assume you are referring to JW, if so this is not a malicious rumour , how dare you suggest this.I challenge you to speak to EPO staff leaving the Chandos Street or New Street Offices ( Behind Magpie Pub off Liverpool Street offices which Terry Smith CEO Collins Stewart used to occupy )They will soon confirm what you need to know, trust you understand.

Interconsult Ltd is a new co with no existing revenues as is one of their associated companies Interconsult International which filed dormant accounts 2002, anyway don't go on what financial dynamics say, check the facts, remember this deal is subject to regulatory clearance, epo chose not to provide timescale for such.

As for fundraising, well expect news very soon or at worst when results are released, interesting to see this announcement including price.