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

Similar articles to this in The Independent and Daily Mail today;


Coms gains broadband and phone services contract boost
News of a £15m contract to supply broadband and phone services sent shares in Coms, the Aim-traded telecoms group, soaring on Friday, writes Duncan Robinson.
The deal – which is worth five times all of the contracts Coms signed in 2012 – lifted the group’s share price by 173 per cent. Coms said the supply contract, which is already under way, is with an outsourcer that has revenues of £2bn and will run for two years.
Dave Breith, chief executive at the group since January, said: “This represents our largest contract win to date. We are delighted to have signed such an important deal, which aptly demonstrates Coms’ scale capabilities across different product lines.”
London-based Coms had revenues of £1.8m for the six months to 31 July 2012, but made a loss of £337,000 over the period.
Shares in Coms closed on Friday at 2.1p – to record an overall rise of 170 per cent for the week.

Just been reading about this company, it's all over the weekend press. COMS a £5m company has an order for £15m over 2yrs with Gr historical margins 33% (see last results announcement) and CEO Breith is very confident (has price target of 10p ps soon) http://www.directorstalk.com/coms-plc-ceo-dave-breith-talks-about-his-company Surely worth a punt Monday? Sp has been in 30s now only 2p but new management seems very highly regarded with Breith having built a company up from nothing before. any views?

I bought a few of these on Friday, robstuff, after doing some research. Breith does sound very bullish and he expects to get the share price to 10p in the near future. I was waiting for the sp to dip on Friday before buying in, but it just kept going up! It will be interesting to see how much the MMs mark the share up tomorrow morning and then how much profit taking goes on. I wouldn't put the farm on this, but as you say it must be worth a small punt.

Good luck db I think it should be rising quite nicely this week, I have read a few articles and they are very bullish indeed!

Interview with CEO of COMS - worth a read.

Background interview, 31 January with Dave Breith.

The founder and former CEO of O-bit Telecom Dave Breith played a blinder to grow the business and sell it to Daisy Group two years ago; and by bringing new energy and ideas to the table as incoming CEO of AIM listed ISP Coms Plc the serial entrepreneur is already well on his way to pulling off yet another remarkable coup.

Breith has set in train another potential success story and is basing the ascendency of his new venture on, for the most part, a tried and tested formula. Towering over his profession Breith's presence has already made an indelible impression on the future look of Coms Plc, but with a talent for seeing the whole picture he never loses sight of the fundamentals. "The first thing I will be doing is getting under the skin of the company," he said. "I will be concentrating on putting the basics back in place and ensuring the business is best positioned for the type of growth I have planned. Coms Plc has a fantastic route to market and offers services to the indirect channel but it has not experienced the type of growth I know it is capable of achieving. I intend to jump start sales and help establish the company as a main contender in the telecoms market."

Breith's opportunity looks bigger by the day but conducting a root and branch review of the organisation is a strategic priority that cannot be delayed. "I am not about to jump in feet first making changes before a proper assessment," he commented. "I need to assess the challenges of the business as well as the areas we should be promoting. Coms Plc offers the right mix of technical expertise and quality, which mixed with my skills in sales and marketing will, I believe, prove to be a recipe for success that will ultimately produce a fantastic return for our investors."

Breith's modus operandi illustrates an unyielding grasp of the core issues as if programmed to resist distracting thoughts about anything other than the task in hand. "I won't be underestimating the challenges," he stated. "I'm the new boy, involved due to my experience in developing a channel business and I appreciate that every business is different and has its own story. An AIM listed company brings new challenges and a steep learning curve for me. I have limited experience in this one area but we have some great people in the business who have been patient with me. I am surrounded by advisers so it will not take me long to get up to speed."

In tandem with Breith laying down the foundations of a channel growth strategy Coms Plc's staff are busy building a consensus of approval that will help to ensure the business plan is rapidly advanced. "I am fortunate in that the entire team wants a strategic growth roadmap and they have all been highly receptive to the changes I have proposed," commented Breith. "I have also been able to call on the experience of past colleagues and to an extent bring together some of the people that helped to make O-bit a success. Having a good track record has helped, but the proof will come over the next few months."

Breith plans to grow Coms Plc's market share in the channel substantially. The process and internal structures are already in place and he is not short on options. "I have many ideas based around the overall proposition being taken to market, in particular how bundle buying will influence the distribution/reseller relationship. But they also extend to include the whole Coms Plc team in the direction of the business," noted Breith.

"The environment I promote is to play to the key strengths of the personnel to ensure the service offered to clients is second to none. Therefore invigorating the team and generating an enthusiasm within the business is important to the success of my strategy. In terms of the new ideas, that would be telling, but think value add, think wrap and think best of breed and you won't be too far off the mark."

Coms Plc will be offering a service wrap the allows resellers to manage base margin rather than product. This approach, says Breith, encourages strategic relationships and the development of business synergies that will ultimately protect clients from churn. "Resellers and distributors need to look at the whole picture as well as the margins and keep a keen eye on operating cash," he added.

According to Breith the growth trends to watch include mobile and the impact 4G will have on working environments along with BYOD. "Data, however, will remain the biggest driver," he noted. "Resellers are finally understanding the technology and are able to promote it effectively to their base. It is likely to be this solution that drives down the margins on traditional voice as resellers choose to look to the overall margin of a client."

Breith also believes that hosted IPT is on the cusp of widespread adoption. "End users have a far better understanding of the technology and there is a growing demand for this among resellers," he added. "The PBX vendors all now have their IPT offerings and cannot push them enough. They know their current boxes have a shelf life and they are all eager to gain momentum on their IPT offering."

Breith believes that resellers are having to work a lot harder and 2014 will separate the men from the boys. "The whole sales process has evolved," he stated. "You can't survive by selling a line here or shifting a box there. The relationship has to be far more strategic. There is simply not as much margin in products, which means a full service wrap needs to be addressed with a true understanding of a client's business in order to build value into what resellers are doing."

Not surprisingly the main product development in the first quarter will be the introduction of a full communications package into the current IP-focused business along with traditional products and services. "We will use this suite of tools to help partners facilitate a move from traditional technologies into the solutions of 2013 and beyond," explained Breith. "The introduction of the Merlin portal will help achieve this seamlessly. It is not only a tried and tested platform it ensures the entire portfolio of services is centrally managed from provisioning to billing through to customer service and faults."

Breith's gaze has also fallen on Coms Plc's network proposition and its key suppliers to ensure that all services offered by the firm are complementary and best of breed. "I will then be introducing the Ask Merlin platform to offer resellers an interface between them, the business and all our suppliers," added Breith. "This platform gives resellers access to the type of instant information they require to run their business successfully."

Mission accomplished? Not quite. Breith will also be introducing a new suite of communications services to complement the existing hosted proposition, meaning that Coms Plc will be supplying a full portfolio of solutions from traditional PSTN and broadband through to hosted IPT and wider area networks. "All this will be coupled with creating great awareness around our activities through an integrated sales and marketing plan," added Breith. "It is going to be a busy few months but this is something I know very well. It is a very exciting time."

Breith is building a platform for resellers who are struggling to find a new role in the changed world of communications by combining IT and telecoms expertise to truly bring together the local and wider area network proposition. "IP and IT will enjoy a closer relationship in 2013 and we will be working hard to establish ourselves as the largest value added distributor in the channel," he added.

Breith's remarkable career to date has recorded many highlights and triumphs but his biggest achievement so far, he pointed out, is adapting to changes in the market while retaining a smile and the ongoing hunger to help communication resellers build their businesses. "I learned a tough lesson in my 20s when I realised that ownership over your base was paramount," he said.

"This prompted me to start O-bit Telecom and I have not looked back since. I truly believe in what I do and I still believe it is simple to achieve, you just have to be careful not to get clouded by outside influences. I am proud to say I have never lost sight of the big picture for either my company or my resellers. And it is nice to look back on all my clients and realise I have grown to consider quite a few of them as personal friends."

I'm not a fan of Evil K, but I know he certainly has a following.

Evil Knieval Diaries just out on t 1ps. Here is an extract:-

"However, it seems possible that I might recover some of my losses on Coms (COMS). This penny stock has advanced sharply on the news that it has landed a £15m contract over the next two years. Given Coms's capitalisation of £9m at 2.5p and on the assumption that this contract will not be the first of its size and scope, the idea that this stock cannot go sharply higher is silly. As ever, delivery must must be demonstrated."

Acquisition

Coms plc. (AIM: COMS), The company is pleased to announce it has acquired the broadband customers and certain other assets of So Purple Tech Limited trading as "ADSL24". This includes almost 4,000 broadband customers as well as cloud based mail and hosting for a total consideration of £800,000, of which £50,000 is in cash and £750,000 in Coms ordinary shares of 0.1p each at an agreed price of 1.8p per share. At 30 June 2012 So Purple Tech Limited had gross assets of circa £40,000 and the ADSL24 network presently generates a monthly gross margin of approximately £20,000 on revenues of circa £75,000.

As part of the same transaction, it has been agreed to sell £50,000 of Ordinary Shares shares to Gavin Wheeldon (So Purple CEO), also at a price of 1.8p per share. Both Gavin Wheeldon and So Purple Tech Limited have agreed that sales of their shares will be limited to 5 million per Month and no more than 300,000 per day.

Dave Breith (Coms CEO) states "We are delighted that we have finalised this transaction and this will give the Company some further upsell opportunities on our now broader range of services that we offer. We have been negotiating this transaction for some time and negotiations over the past few days have been made particularly challenging with our share price increasing. We are nonetheless delighted at the increasing confidence investors have in the future of our Company".

Bouncing nicely from a rocky start to the day!

Day traders having their fun with this all day again, each to their own I suppose. I certainly wouldn't want to join the stampede for shares when the next contract is announced.

03 May Zak Mir Article on COMS 5p Target On Share Prophets:

"It is very often the case that as fire as minnows / penny shares that move around in fractions of pennies, there is not as much as one would like to go on in terms of charting furniture. However, it could be said that in this respect Coms is the Heals of charts currently, given all the signals we have to go on, with most people positive or very positive. What we have been treated to over the past week is an unfilled gap to the upside, followed by a bull flag consolidation, implying that we are no more than mid move or even just a third as high as the shares are going to climb on their “hockeystick” type vertical spike. While such moves may accompany fraudulent claims regarding alleged global warming, credibility here is backed by the way that before the late April gains the shares spent several days with intraday probes for support at and just above a 2012 uptrend line at 0.75p. In fact, the starting gun for the break above 1p to where the stock is now stemmed from a January break above the 200 day moving average currently rising at 0.65p. The implication is that all the hard work done over the first quarter of 2013 has started and should continue to pay off, especially while the shares of Coms hold above the initial January 2012 resistance at 1.6p. This provides an ideal end of day close stop loss as we await a new 1.5p – 2p leg to the upside which could stretch the shares towards the top of a 2 year rising trend channel on the daily chart pointing at 5p. The timeframe on this ambitious sounding target is no longer than the next 1-2 months."

Keeps having a go at the 3p resistance level - fourth attempt about to get going!

Agree 3p may be left behind nxt week, especially if more favorable news is announced. I wouldn't want to be out of these when another deal is announced, IMO very undervalued at present and starting to get noticed - I think IC will get hold of it and then we'll see it rocket. CEO's short term target for the sp is 10p!!!

Trading Update

Business growth
Since the start of the year under Dave Breith's leadership the newly re-structured Company has announced several contract wins including agreements to supply Vonage and Worldstone and the substantial business announced on 26 April 2013.

In addition, the Coms sales team has been building up a pipeline of potential new business.

· The Company's new in-direct sales (wholesale) division has built a pipeline of sales prospects, which represents a potential of just over £7m annualised revenue. We will be looking to convert as many of these leads as we can over the coming months.

· The retail division has won 3 new contracts with two NHS Trusts based in the North and a Police Constabulary based in the South East. Its sales pipeline is currently showing a potential gross margin of over £100,000 per month.

· The Company has commenced its Government sales activity initiative and anticipates that this will generate additional sales for the remainder of this financial year and beyond.


Operational Growth
· In order to ensure that the Company delivers a "best in class" service and can manage effectively its anticipated growth, it is expected to recruit up to 20 new members of staff over the next three months.

· In addition, the Company is reviewing the possibility of establishing a 20 person call centre to further enhance its offering and support its growth.

Corporate Strength
· Since the start of the year, the Company has announced the acquisition of both World Telecom and So Purple Tech Limited and also the licensing of the Ask Merlin software, all of which has significantly broadened the Company's technology platform and customer base. These acquisitions are so recent that their numbers are not included in the first quarter's trading. A number of other potential enhancing acquisitions have been identified and the Board will continue to assess and investigate these opportunities with a view to further augmenting the overall business as appropriate.

· The Board in liaison with the company's professional advisers is continuing to review the best ways to fund the growth of the business including the opportunity to raise additional working capital through the placing of shares on attractive terms.

· The Company is looking to strengthen its Board through the appointment of up to two additional non-executive directors to bring in the skills needed to support the rapid growth of the business and this initiative is being led by Iain Ross, who joined the Coms board as a non-executive director in February.

I'm in.

Welcome aboard Dil. Usual nutters on other bulletin boards who have jumped on this share when it shot up 168% one day and then they get restless when it doesn't shoot up every day. The RNS sounded very bullish to me and I'm quite happy with the phrase - "The Board in liaison with the company's professional advisers is continuing to review the best ways to fund the growth of the business including the opportunity to raise additional working capital through the placing of shares on attractive terms."

As long as the company doesn't try to expand too quickly - 20 new members of staff + a 20 person call centre + 2 additional non-executive directors, that seems enough to me at this point is their development.

Looks like they chucked the kitchen sink et al in with last years results which were expected to be bad to give themselves a clean start.

It's what happens from here on that counts.

I (finally) bought in late on - so the only way now is down!

Nah , this time next year we'll be millionaires Rodders :-)

Hmmm - Issue of Equity

Coms (AIM: COMS) is pleased to announce that it has raised £1.5m, before expenses, through the issue of 81,081,081 new ordinary shares of 0.1 pence each ("Ordinary Shares") at a price of 1.85 pence per share to Novum Securities Limited. Under the terms of the deal, each new Ordinary Share has a Warrant attached, entitling its holder to subscribe for additional Ordinary Shares at an agreed exercise price of 3.7 pence per share. The Warrants, which will be granted subject to shareholder consent, can be exercised at any time up to 24-months from the date of signature or, at the Company's election, if the share price achieves and remains at 130% of the Warrant exercise price (i.e. 4.8p) for a period of 10 business days, whichever is the sooner. A notice will be sent to Shareholders convening a general meeting to grant the Coms directors authorities to issue these Warrants.