News blog

Mobile Streams

• BY: Andrew Hore |
• POSTED: 18/10/2013 |

Mobile content and services provider Mobile Streams says that founder and chief executive Simon Buckingham has sold 6m shares at 55p each.

This follows the sale of 630,000 shares at 70.133p each at the beginning of October. At 67.5p a share, up 3p, Mobile Streams is valued at £24.7m.

Institutional investors have acquired the shares. Buckingham still has 10.4m shares, equivalent to 28.3% of Mobile Streams. Bucking ham says that he will not sell any more shares for 12months. Buckingham’s pay jumped from £204,000 to £302,000 last year.

Mobile Streams is still finding it difficult to take money out of Argentina. In the year to June 2013, revenues were 145% higher at £53.9m and pre-tax profit trebled to £4.8m, after a £334,000 impairment charge on goodwill relating to the Hong Kong operations. . The shares are trading on less than ten times historic earnings.

Not all of that profit was turned into cash. Nearly £4m of trade receivables at the end of June 2013 of £4.57m are overdue but most of those are less than three months late. Cash generated from operations was £1.19m but there is little need for capital investment so cash increased by a similar amount to £2.85m, of which, 73% is in Argentina. Mobile Streams has subsequently received £2.3m owed by an Argentina-based customer.

The only way of transferring cash out of Argentina means that the company would take a significant hit on the exchange rate. That is not required at the moment.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2013_49.pdf