Good morning from the island of Paxos! My internet connection here is at best very weak, so am hoping this report will find its way to you at all, let alone promptly! I've hired a small motor boat, so once this report is filed, I'll be wandering down to Loggos, to spend the rest of the day whizzing around, bay hopping, slapping on the factor 50 and trying not to get eaten alive by mosquitos.
Digital Barriers (LON:DGB)
This is the first small cap I've observed to blame the Ebola outbreak for a profit warning. It says that contract negotiations are being delayed due to restrictions on staff travel. Some positive noises are made about other potential contracts. An excerpt from this morning's announcement says;
We have invested significant time and effort in developing a strategic sales pipeline in the fast growing economies of West Africa and our hope and expectation is that although we will see inevitable delays, we can work with our local partners to ensure these delays are kept to a minimum. In the interim we are already seeing very significant sales traction with customers across other target regions and expect positive contract news throughout the year.
The company certainly has a mountain to climb just to reach breakeven, after several years of heavy losses. So the £60m market cap rests entirely on hope for considerably improved results this year & next. Too speculative for me at anything near the current price I suspect these shares might lurch a long way lower as one disappointment follows another.
CityFibre Infrastructure Holdings (LON:CFHL)
This is an interesting company, which is building fibre optic networks in British cities. An announcement this morning is for a new network to be built in Kirklees.
These shares are on my watch list, but at the moment financial details are too skant to consider it anything other than blue sky. I need a much more concrete idea about what shareholder return there is likely to be, before considering buying any shares here.
Westminster (LON:WSG)
News is published today of a contract win with an African Govt to operate a ferry service in Africa, with potential revenue of $300m over 25 years. Sounds interesting, although this company has always seemed a bit…
