Atlas Development Ltd.

By Richard Mason


Current Share price 3.10p to buy

CFEP have a broker target of 14p

Last fundraising in December 2014 was at 8.10p a 120% premium on today’s buy price.

Major shareholders stand at about 50% of the 433,063,193 shares in issue.

Last 12 months has shown considerable growth for the company… With management focusing on streamlining the business hoping to be the biggest and best turn-key operator on the continent.

2014 was an extremely important and positive transitional stage for the company due to the acquisition of 2 new businesses which compliment ADSS’s already existent contracts, clientbase and position… these companies we’re acquired in the last Quarter of 2014 however revenue’s for the 2014 period grew 95% from $23m in 2013 to $40m in 2014 and showed a profit of $4.8m instead of a loss of $3.7m.

Cash position currently is around c£7.5m with a mcap at c£13m currently.. The company is now well positioned for huge growth year on year due to new contracts and businesses being added at an extremely healthy rate to the already existent diverse portfolio across the African continent.

The company offers turn-key support services including workforce accommodation, facilities management, medical infrastructure, and logistical support  basically a one stop shop for all mining needs from building roads to supplying security guards… ADSS is based currently within 6 countries in Africa with the Mission of the company to be the biggest turn-key support services provider in the continent.

As said over the previous period the company has begun to implement its buy and build strategy utilising already existing companies and contacts to enhance the future growth of Atlas going forward… The company acquired 2 healthy entities Ardan Logistics Kenya and Ardan Risk & Support Services (excluding Atlas) demonstrating increased revenue to US$40m from US$23m in 2013 and profit after tax of US$4.8m for 2014 compared to a loss of US$3.7m in 2013.

As you can see the kind of growth that ADSS seems to be offering shareholders is extremely positive with extremely strong, in all the acquisitions which will only strengthen and stabilise both the strategy and already existing strong balance sheet.

In the last 6 months the company has secured 2 new contracts and expanded into 2 new jurisdictions in the african continent.. which with statements like the one below taken from the chairman’s statement in the most recent results:

“We are now poised to take advantage of new large-scale contracts to provide complementary offerings across new industry sectors and additional geographies. We currently have a number of tenders out; which have the potential of transforming our long term visible revenues.”

Over the last 6 trading days we have seen some monumental volume on the company with over 1 years worth of stock trading hands… it has over that time become pretty apparent that a seller has been selling down their stock aggressively  … obviously due to the kind of volumes we have been looking at there really is only one it could be, our biggest holder… but with all that said and volumes nearing 80m over the period the seller will be nearing the end of their dumping exercise leaving shares ripe for a bounce back as the eagle eyed pickers jump back in or top up.

With the seller offering investors an opening into the company at over 60% discount to the last placing price, nothing but positive news-flow since then and a strong balance sheet coupled with extremely strong growth… This is without doubt a stonking buy from these levels, a company that if held with a slightly longer view 6-12 months could show considerable upside, and if the rate of growth continues at this rate current market cap will be laughable.

Strong Buy.”


This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Sign up for Investing Intel Newsletter