THE NEW PNC TELECOM

If Sim4Travel are only doing just about £12k per month thats only a T/O of around £145k p.a so we are in effect paying just over 16x earnings which does seem a little expensive even when taking into account the Sim4Travels assets. That said we know very little about forward projection and the figure is given as only for the seven months trading since start-up.

I would guess by the end of 'first years trading' Sim4Travel would be doing a great deal more than £12k a month and with out seeing the earn-out requirements would suggest a monthly T/O more like £40k as being something like it. If I,m right we are looking around half a million p.a giving a very respectale 5X earnings, which looks good value to me.

The all paper deal, no doubt locked in for a couple of years, gives us some pretty substantial and very commited holders. This I see as very positive from the PI,s point of view as they will not want to see any delution of their holding, which is large enough to give them some real clout.