quiet accumulation today nowhere man , page-2

Well, Moodooa, the underlying businesses are all doing well, including Iridium which has now clearly turned the corner. I suspect there may have been a feeling current that the company’s recently announced purchases - the (albeit already profitable) Data and Kiosk business from Healthpoint Technologies Ltd, which it secured for $2m, and the increased stakes in its holdings of Q-Tel Jersey (UK) (up now to 50%) and SMS Access Ltd (up to 40%) – might necessitate a raising.

However, let me assure you, that is NOT the case. I have spoken at length with Michael Boyd raising precisely these concerns (indeed, offering to participate if any such raising was afoot), and was told unambiguously that henceforth there will be no new share issues.

Boyd assured me that there is absolutely no necessity to raise further capital or issue more scrip. (Since he and his family are major shareholders - accounting for more than 70% of shares on issue - it makes sense that like me, he doesn't want to see a dilution of shareholder equity. He also, incidentally, reiterated that Quadrant was his next and only vehicle, the focus of his attention in the coming year.)

It's clear that the Approach Telecom & ETS Direct businesses both continue to grow and perform strongly. It speaks volumes that Quadrant wishes to increase its exposure to the European arm of these, and that such developments can be internally funded. I note that there is also talk of pursuing North American opportunities along similar lines.

I believe Boyd’s confidence might also point to other developments - possibly regarding Quadrant’s 10% holding of the Iridium network which, at US$20.8m, has always been described as “conservatively recorded" in the Company’s accounts.