Topped the share charts on Friday following a lucrative contract announcement and is rumoured to have several more contracts in the pipeline.

Website www.coms.com

I'm confused now - it doesn't take much - but I suppose that RNS on 10th Feb. could be construed as a trading update !

Trading Update

Coms plc (AIM: COMS) is pleased to issue the following trading update ahead of the Company's final 2013/14 annual report and accounts.

The company is pleased to state the following:-

· Revenues for the year will be approximately £14.0 million.
· EBITDA for the year will be approximately £0.75 million
· Profit before tax for the year will be approximately £0.45 million

The company anticipates that the annual report and accounts will be audited and signed off and released in May 2014 with the AGM being held in June 2014.

Dave Breith, CEO of Coms, commented:

"The company embarked on an incredible journey 12 months ago and I cannot stress enough the hard work and determination of all the Coms group staff. They have all been instrumental in achieving such an excellent financial performance. Growing a company in the manner that we have, by efficiently acquiring and integrating numerous complementary businesses, whilst ensuring continued fast organic growth in the core business and achieving profitability is certainly the hardest task I have ever had to perform. It has been a privilege to lead the Coms team and to turn this business around and I am very much looking forward to sharing my vision for the future which will be outlined in detail in my CEO statement in the audited annual report & accounts."

Ouch! Down 13% already. Not sure which bit of the trading update didn't meet expectations.

The sell off didn't last very long early on - onwards and upwards now.:-)

You either believe in the potential growth story of this company, or you don't. The Trading Update was good, figures ahead of expectations as David Breith said they would be - he's only been in the job for just over one year and I think that's a pretty impressive performance in a short space of time.

LISTEN: Coms Plc - Trading update

Click here

Charles Stanley update:

Coms trading statement for the full year, ended January, is far ahead of our
expectations with revenue of £14.0m, EBITDA of £0.75m and PBT of £0.8m.
This compares with our recently raised estimates of £12.0m, -£0.2m and £0.2m.
We view this as an exceptional performance and further evidence of
management’s execution given the acquisitions that were made during the year.
We reiterate our Buy rating and raise our price target to 13.0p from 12.0p
given the further de-risking in the shares provided by execution in a year of
turn-around.

A year of turn-around and another big year ahead - To put these numbers into
context, Coms had revenue of £1.6m last year and an EBITDA loss of £0.8m. Through
a series of acquisitions, the new management team has reversed the fortune of the
company. While a lot has been accomplished, we believe there is still much to be
done in the year ahead with our revenue/PBT estimates of £46.8m/£2.4m,
representing further top-line growth of 234%. Much of the task in the year ahead
will be to integrate the acquisitions of Communica Holdings, representing
approximately 95% of Redstone Plc's assets and CloudXL, which was agreed two
weeks ago.

We raise our estimates for 2014 but leave 2015 and beyond unchanged - We
are leaving our estimates for the year ahead (2015) intact for the time being but will
look to review at the time of the company’s full year that we believe will be issued
sometime in May. However, this full year results date still needs to be confirmed
with the company.

Raising price target to 13p from 12p based on further de-risking - We have
raised our price target based on the reduced risk we see given the company’s
performance in the year ended January 31st, 2014. Based on conservative discounted
cash flow assumptions, we see fair value above 13.0p, but assume this level for the
time being. We cross check our DCF-based target with valuation multiples that imply
19.5x EV/EBITDA and 2.2x EV/Sales at our price target of 13.0p in 2016 (effectively
calendar 2015) which we believe is reasonable, given we expect EBITDA to rise a
further 104% during the year. The company currently trades at 14.2x EBITDA and
1.6x EV/Sales.

Update from citywire.co.uk today:

Helium’s Newton adds to Coms holding


Small company hedge fund manager David Newton, of the sector-beating Helium Special Situations fund, has exploited a share placing to up his stake in business telecoms provider Coms Plc (AMAN.L).

Newton upped his stake in the company from 72.5 million shares to 95.5 million. Accounting for the dilution impact of the new shares, that took his holding in the business from below 9% to 9.95%, worth £5.73 million at a placing price of 6p, or £8.59 million at the open-market price of 9p.

Newton invests in under-researched small companies where he believes the market has misunderstood the value in a business, returning 129% over three years versus an International equity index of 8.7%. Helium Special Situations is an offshore fund managed by IS Partners in Switzerland.

Shares in Coms Plc have spiked 68.3% this year versus a FTSE AIM return of -1.74%.The new issuance will fund the company’s acquisition last week of cloud and data management business Actimax.

In a trading update at the end of January Coms said that revenue for the full year would be ‘significantly ahead’ of expectations.

13p .... they're having a laff but in all fairness they do say it's a conservative estimate.


Me and the tea leaves are going for 16p and thats without any further big deals / takeovers but wtfdik :-)

I much prefer your analysis Dil, why use four paragraphs when one sentence will do !:-)

i donth think coms will break 11.5 target price in next 6 months unless they find a big contract . i should sold my share when price was around 11p. now i am in lost and if its keep going down which more looks like then i will be in big problem hope not.

Sounds like you are completely lost jaknap - just stay on this choo choo and you will be okay. Dil's tea leaves are usually right = 16p target now. Just have patience and you will not have big problem. Simples.

Seems the sp got ahead of itself. Lets hope 8p is a good consolidation level.

lokking coms chart i dont think its gone go up. i think this week it play between 7.30 and 8.30 for few days and begining of 2nd week of march it will break 7.00p target i personely belive it will settle at 6.00p and if its does i shouldnt be getting surprise. lets see how certain am i???

jaknap, I think your talkspeak is a load of utter b----cks. I think you need to go bak to drawking bored. Dil's teacup leaves makeys more senses than yousey doodah nonsense.:-) In other wordeys, if you can't post any sensesy here, then pleeese just flukeys off - tank you.

That's a bit harsh db4!!! I'm hoping it's going to settle at 8p for a while which would form a good support level, but it's only a hope rather than any research based forecast! jak reckons it will hit 7p. Sure Dil's the man, but tea leaves??? ......That reminds me, I haven't done the lottery recently......now what were the odds??? ;o)

Thanks for the translation HARRYCAT, I just think we seem to have acquired a trading chimp from another bulletin board recently - sorry for taking the p-ss if it offended you! :-) I agree 7.5p to 8p would form a good support level right now.

No No....not offended. Takes more than that to ruffle the feathers. I wasn't aware that jak was a predator from another board.....if true. Having said that, I'm still convinced that COMS will come good, so happy to top up at 7p.....or 8p, though felt smug today having added at 8.37p, only to see the sp drop further! ;o(

I'm ashamed to read such a reply to be honest. It would be far more beneficial to current and potential investors reading this board if points were given to put Jak at ease then to mock. Seems like Jak is just a worried holder according to the first post but if he/she is a trader, you really think it'd make a bit of difference to the sp? Jak I'd recommend reading the past few months RNSs (at least) if you haven't already done so. These day to day movements and current levels won't matter much if you are in long term, and have done your research (or do it now at least). Here's recent RNSs to go through http://www.moneyam.com/action/news/processGetNews?retainFormValues=true&archive=true good luck all.

Additional contract wins strengthen Coms' growth
Coms plc (AIM: COMS) is delighted to announce further business wins across the Company. These will contribute to the revenue targets for the Company's financial year ending January 2015 and complement the recently published Trading Statement.

Recent contract awards total in excess of £1.73m worth of revenue and include:
· Significant contract wins from a number of new channel partners worth a total of £696,000 revenue per annum. Primarily delivering hosted lines and calls, they also include the transference of IP traffic via SIP trunks.
· Through its Redstone subsidiary, the Company has been awarded a contract totalling £499,000 to supply a Cisco converged network to a large commercial property company. Through this contract award, it consolidates the Company's ICT business to support its leading position in infrastructure provision.
· Through its Redstone subsidiary, Coms was also awarded further infrastructure installations for:
o two leading financial services client with a combined contract value of £128,000;
o an energy company with a contract value of £55,000;
o leading retailer. Contract worth £51,000;
o a healthcare provider with a contract value of £39,000.
· Coms' recent acquisition of CloudXL is already delivering additional revenue; the Company has secured a three month implementation of a new telephone system for a leading housing trust. With over 15,000 tenants and 8,100 homes, the diverse nature of the environment required the Company's specialist implementation programme. This contract is worth £111,000 in revenue and covers hardware provision and managed service support for the period.
· Additionally, CloudXL has secured additional contract wins worth £25,000 with many recognisable high street names through the implementation of hardware and telephony services.
· Coms Media has recently been awarded a contract to deliver a new season of 11 episodes of a documentary to an engaging, vivid and interesting satellite television channel. This award win is worth over £50,000, and puts the Company's creativity in front of a dedicated audience.
· Additional contract wins including providing Computer Generated imagery (CGi) to a world renowned innovator in the field of home electronics, providing filming expertise to an unrivalled accountancy and consultancy firm and highly specialised Augmented Reality (AR) expertise and innovation to a global corporation who specialise in the provision of home security. Collectively, these contracts are worth £85,000

Dave Breith, CEO of Coms, commented: "Across our Company, we are being recognised in our abilities in delivering a range of services which are being utilised by a range of businesses across the world - from SME to multinational blue chip. The revenue these contracts give us maintains the momentum we've developed. What is also extremely encouraging is the speed at which our new acquisitions have settled into our structure and the opportunities they are presenting to teams across the Company."