EVS - success in the making...

Pal of mine holds these also and received this reply from EVS a couple of months ago in response to a few direct questions - I don't see any reason not to post as it may prove useful:

"Lyndon is away on business so asked me to apologise for the delay in responding and reply on his behalf.

First of all many thanks for your continued support, I will try and address your issues in turn

Acquisition targets- We are continuing to look at a number of businesses that fit with our three channel strategy, namely UK, European and Corporate. Unfortunately we have had to walk away from a number of these after due diligence and we will advise on the outcome of the others as and when we reach completion. As I'm sure you can appreciate I am not able to advise on timing.

Valuation- Regarding the Market Capitalisation of Envesta I believe that the market has reflected the expected slowdown in growth of profitability for the current year but also the appointment of the two non-executives, broadening channel structure and the opportunities for the future that these will bring. I have been encouraged by the performance of the share price considering the dilution that occurred when the preference share liability was removed via conversion into equity as well as the large amount of stock that has been traded after our former Chairman disposed of his holding into the market. Now that stock has been placed into the market we are further encouraged by the volume of trading and the increase since April. Naturally there are investors concerned about further dilution for acquisition and we have considered our gearing and funding requirements carefully for all our acquisitions and will be structuring ourselves appropriately, obviously all acquisitions will be value enhancing.

Directors Shareholdings- I can't comment on the other directors other than a very significant element of Matt Baker and Steve Evans wealth is already tied up in Envesta and Lyndon and I are aware of market sentiment regarding the desirability of us buying. As I am sure you are aware we are all restricted in the period that we are able to purchase shares and this is something that we are all reviewing as individuals.

Regarding PR as I have said before we are a small company and we have to balance talking about the business with actually running it. I take your points on board but we think it is more valuable to have a regular relevant news flow rather than a constant stream of less relevant news. We do try and keep the trade and investment community abreast of new developments and will continue to do so, we had a reasonable number of shareholders attend the AGM where we were able to discuss current developments in some detail and I would welcome the opportunity to meet next year.

I trust these responses are of some help, please get back to me if I can help any more."

Kind Regards

Kevin McGovern


My comment would focus on the points about directors shareholding, if they were really confident about the existing business surely the money just spent would have done well for them in EVS shares. I assume as Mr. McGovern only holds 100,000 or so that he feels happier putting his money in something else with the financial help from EVS!!! Bit arse about face if you ask me - unless they clarify the reasoning to shareholders. Especially as he appreciates the sentiment towards directors holding shares!!!

I still hold a few shares but sold out most a good while ago, fortunately at a slight profit and put the money into gold stocks - 'nuff said except wish I had done it sooner!!

The rest I will hold onto and await developments.

Please remember that the above is a couple of months old - not fresh this week.