Dye and Durham goes Public with IPO

   Dye and Durham(DND) was a legal stationary and forms business that started in England in 1874.It evolved gradually and in the 1990s acquired several legal forms businesses.Then in 2014 it acquired Stanley Davis which is an software and technology firm and this changed the way DND did business.Now it provides a cloud-based platform for legal services and risk management services.On July 17 of 2020 it created one of the largest IPOs for the year at $150 million(CAD)The IPO price was at $7.50 a share.It's British shareholders picked up a chunk of the new shares to now own 35% of DND.Before the close on July 17,2020 the price had moved up to $13 a share.

      A Hot Summer

     DND has still not shown it's shareholders the first quarterly report.Likely that will be in October at the end of the quarter on  September30.But before it went public it had quite good news for shareholders to view.For example, revenues increased from $18 million in 2017 to $66 million in 2020.Adjusted EBITDA was $19 million for 2019.And for the 9 months ending March 31,2020 revenues increased 80% compared to the 9 months of 2019.Yet it's net loss went from $1 million in 2019 to $7.5 million in 2020.So the first quarter reporting will have negative e.p.s. until adjusted EBITDA climbs higher.This is the same trend seen in all the new online phenomenons- large increases in revenues but earnings trail behind at the first.Later the structure and expenses will be reduced and earnings will emerge.But shareholders certainly believe in the DND business as they have bid the share price from $7.50 on July 17 to it's present $27 in September.It certainly has been a hot summer for Dye and Durham.                  

      Fall is Coming

   The first day of fall will be on September 22.This blog sees a continuation of the price movement seen in August.So it is very likely that DND will be in the $30 price range before the quarterly report in October.It is indeed possible that Dye and Durham will show shareholders revenues of  $80 -$85 million for it's first quarter and $100-$110 million for the year.However the net loss may be as high as $10 million for the quarter and $12-$17 million for the year.It is also possible that DND makes another small acquisition in the real estate research area to expand it's market.The future seems rosy but the future price is hard to predict.               https://www.zacks.com/   https://www.goodblogs.com