Our data analytics suggest an increase in interest from investors seeking information on 4Sight Holdings. We prepare a snapshot of recent activity in the business.
The company share price is down 74% year to date and has declined 64% over the past 6 months. This leaves the company trading with a market capitalization of R211m and a price to earnings multiple of 11.
Annual General Meeting:
The company held an Annual General Meeting (AGM) on 15 June 2018 with 73% of the issued share capital voting. The only significant development was 75% of the shareholders present voted against the appoint of Conal Keith Lewer-Allen as a non executive director of the business.
CEO “resignation”
On 22 November 2018, the company released a Stock Exchange News Statement (SENS) saying that the Prof. Antonie Van Rensburg had resigned from his position as joint-CEO with Jacques Hattingh. Van Rensburg continues in his technical role as Chief Digital Officer with Hattingh adopting acting CEO role.
Buying spree
As a relatively new listed entity, the figures are difficult to interpret but 4Sight released financial results for the 6 months ended 30 June 2018 and at a high-level:
- Turnover was $19.37m
- Operating expenses rose to $11.47m from $7.114m for the 6 months ended 31 December 2017
- Operating profit was $1.2m
The company appears to have taken a number of positions in smaller technology businesses as part of its “Industry4.0” strategy acquiring the following businesses over the period:
– Foursight Holdings Proprietary Limited (“Foursight”) for a purchase consideration of $0.3 million;
– Casewise for a purchase consideration of $1.4 million;
– Fleek Technologies Holdings Proprietary Limited for a purchase consideration of $1.8 million
– Visualitics for a purchase consideration of $0.8 million;
– Corporate Lifestyle Management Holdings Proprietary Limited for a purchase consideration of $0.07 million;
– SET for a purchase consideration of $3.6 million, of which $2.2 million remains subject to the achievement of a profit warranty within the next year;
– AccTech for a purchase consideration of $8.4 million, of which $6.3 million remains subject to the achievement of profit warranties of the next two years;
– Dynamics for a purchase consideration of $2.1 million, of which $1.6 million remains subject to the achievement of profit warranties of the next two years;
– SRATEGIX for a purchase consideration of $0.2 million. The remainder of the consideration to be determined based on Net Profit After tax, multiplied by a Price Earnings of 8, divided by 3 over the next three years less the original consideration already paid;
– Onesource Africa for a purchase consideration of $0.1 million. The remainder of the consideration to be determined based on Net Profit After tax, multiplied by a Price Earnings of 6, divided by 3 over the next three years, less the original consideration already paid;
– XWES Proprietary Limited (“XWES”) for a purchase consideration to be determined based on Net Profit After tax, multiplied by a Price Earnings of 6, divided by 3 over the next three years
Profile Data indicates that the company has a Net Asset Value of R1.60/share. The company currently trades at a steep discount to this at 42c/share.
