Telit Communications (TCM)

Telit Communications TCM Logo

A global enabler of the Internet of Things (IoT).

23-Nov-2017 – 189p – £247m – PER 12.3

Board Changes And A Trading Update – The Chairman says “These board changes mark a new beginning for Telit” – It certainly seems like it “the Board expects adjusted EBITDA for the year to be materially below previous guidance”.

This was on my Avoid list after reading a great insightful update by Paul Scott here – There was more detail (warnings) in previous updates of his too – Respect Paul.

15-Dec-2017 – 158.25p – £206.8m – PER 10.1

Trading Update – In-line but still in discussions about covenants.

I’m steering well clear.

30-Apr-2018 – 155.7p – £203.5m – PER 21.0

Results For The 12 Months To End December 2017 – New board, cost optimisation plan in place, business units being integrated, etc. Revenue flat, Loss Before Tax -$10.7m (Profit of $33.1m last time), Net Debt almost doubled to $30.2m.

I’m just not brave enough to invest here, it remains on my Avoid list for now.

11-Jul-2018 – 155p – £202.6m – PER 27.3

Trading Update For The 6 Months To End June 2018 – In-line – “Our gross margins have now stabilised and together with the revenue growth and costs rationalisation, we are making headway towards a return to being a sustainably cash generative business”.

I’m still not brave enough to invest in this one – It remains on my Avoid list.

4-Sep-2018 – 162.4p – £212.2m – PER 27.0

Interim Results For The 6 Months To End June 2018 – Always suspicious when the RNS contains a PR headline “Interim results – turnaround plan on course”.  Revenue up 13.6% to $201.7m (back to double digit growth they say) but Profit is down slightly.

I’m not convinced, this remains on my Avoid list.

15-Jan-2019 – 132p – £173m – PER 19.9

Trading Update For The 12 Months To End December 2018 – Revenue expected to be at the top end of expectations ($427m), growth of 14%.

There’s just not enough information here for me to take this off my Avoid list yet.

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