New Aquisition Just seen the $7m acquisition. Looks pretty expensive to me unless they see significant synergies or cross selling opportunities
Trimming Managed to buy all of my stock back at 120-121 before this results-driven pop (thankfully). Nothing too surprising in the results that I can pick out. With 4.19 eps, 4.8 for 2019 continues to look extremely conservative. I would think the shares are just about at a level where results justify it and any new positive news, an acquisition, will move them to a new place. Looking forward to more great things from them!
Re: Three-bagger from here? I actually find that interview a touch disconcerting. On balance I think I am fine with Hornsby's role change but at the end of the day there is now a CEO in the seat who's previous experience was running a minnow talking pretty flippantly about this being a billion £ business - it all sounds a bit unnecessarily egotistical to me and this reminds me of previous AIM bosses who's lofty ambitions never quite came to fruition. Whether it works out for him (and for us) is all going to depend on the acquisitions....those are going to get bigger and further from home and so the risk goes up accordingly. To grow to £1b in 4 years suggests acquisitions of £500m+ - a totally different scale to what they have done so far - and that all need to be funded. I'd imagine the company's b/s will look very different in 5 years time, there will be a lot of LT debt there and a lot of equity issued. They need to get good advice, make the right decisions and execute it all well.
Re: Three-bagger from here? Thank you gretel as always for garnering sound information .This sets out the objectives of the company and identifies the growing market , look no further than the European GDPR legislation adopted by the UK which at a stroke has forced companies like mine to remodel their data control risk assessments with considerable associated cost . This is still a minnow , so the CEO's naked ambition is understandable and I admire the clarity of his market vision . Many are sitting on sizeable gains , so the sp will fall back periodically from understandable profit taking , a support level which Willow sets at 115-120 p seems logical from the chart . . However the gradual market awareness of the growth story may offset the profit taking selling pressure on the sp once the recent high of 126p is significantly breached. After which I see no reason why this will not run up to 200 p taking a 12 month view.
Three-bagger from here? Here's a new interview with the CEO, whose target is to become a £1 billion company - a three-bagger from here:[link] lags behind in tech for complianceIdeagen operates in a corner of the tech community that is slightly behind the curve traditionally, according to Ben.Many organisations still use spreadsheets or, at even worse, paper filing systems to log issues related to risk and compliance.It means there is plenty more room for growth not just in the UK, but globally.Ben adds: We want to double the business over the next three years in terms of staff, revenue and value of the company.That will be a mixture of double-digit organic growth and acquisitions in the UK and US.If there are opportunities to be more aggressive then we will take them because we want to be worth £1bn in five years.According to a report by Grand View Research last year, the global governance, risk management and compliance market was worth £16.5bn in 2016 but this could reach £48bn by 2025.Having already built a strong reputation and client base, Ideagen wants to be a key component of it going forward.Theres a greater appetite within the business world for the quality, safety and compliance solution we supply, adds Ben.Theres more regulatory red tape and if things go wrong, people die or lose money. Businesses take their responsibility around this extremely seriously.But theres no market leader there like an IBM theres no 800-pound gorilla in the market.Were looking to consolidate the marketplace and grow to take charge of it.
Trimming I was lucky enough to sell a decent block of shares recently (25% of my block) at 128 and buy them back at 120. With the re-bound I have started trimming again by selling around 10% at 127.5p and will do more early next week. At current levels and with formal results not announced for 2 months unless there is an acquisition my gut feel is there is more likelihood of a drift down to 115-120 (where ill buy back everything sold) than a rise to 135-140.
New M25 contract win New contract win - I like the comment about this being a potentially 22-year deal.....[link] teams up with Connect Plus for M25 process and safety management project30 May 2018 Ideagens Coruson software becomes the system that underpins safety and quality reporting processes behind the motorway works and operations Connect Plus, one of the major firms involved in the 30-year project to renew, improve, and maintain the M25, has teamed up with UK software firm Ideagen.Ideagens Coruson software will be implemented by Connect Plus to enhance processes relating to safety, quality and environmental management.Connect Plus is in the middle of a long-term upgrade and maintenance project to enhance the M25 motorway route. They are involved in supervising contractors as well as providing maintenance work and small improvement schemes.Coruson will become its health, safety, sustainability, environment and quality management system, with around 650 users reporting into the system...........Phill added: "This project is all about longevity. We are looking at the potential of a 22-year relationship between ourselves and both Ideagen and Coruson."
New interview re Medforce acquisition Interesting interview about the recent Medforce acquisition in the USA:[link] is a growing, profitable and cash generative organization that has successfully developed its Center suite of enterprise information management, workflow, and compliance software since 1993. Ideagen has always acquired organizations with strong intellectual property, integrating that IP with our existing product suite. As an example, Medforces Center suite of products is used by more than 300 customers globally, supporting business process productivity and legal compliance, and we fully expect to be presented with enhanced cross-sell and integration opportunities going forward, with Medforces CommandCenter, ContentCenter and SignCenter of particular interest."
Re: Main Buy tip in Shares Magazine Thanks for that, Management are clearly excited!The 2019 forecast EPS of 4.8p is low unless the company has a problem. Organic growth of 10% puts them at 4.6p and the Medforce acquisition should add another 0.2p (perhaps thats how the 4.8p forecast was formulated!). I would hope we are looking at for 5p minimum. I dont need convincing about the prospects for the company but given I now have a £ holding worth well over 6 figures I am trying to trade it smartly. If you look back at the PER based on adjusted diluted EPS on the actual financial year end dates of the last few years you find x20 (30/4/16), x28 (2017) and x26 (2018). On 5p and a sensible historic PER of x25 the shares in 30/4/19 should be at 130p, todays price. So for me at this level they are probably up with events (unless there is another non-diluting acquisition). I hope they overshoot...in the mid 130s I will be starting to sell and at 140 I would go down to 50-70% of what I currently hold. What do I know but that kind of strategy has worked well in the past with this stock. Nice weekend everyone
Main Buy tip in Shares Magazine Hi Willow - IDEA have indeed been tipped in this week's Shares Magazine, and it's an interesting article.It discloses that management have a 200p share price target and notes that current forecasts could be beaten "by a wide margin".Other useful snippets:GRC "is a $7bn-a-year GRC market yet it remains highly fragmented. Ideagen, which has been around since 1993, wants to act as an industry consolidator as well as driving consistent organic growth.""It aims to double revenue and profit every three years and has met or beaten those targets in the past. For example, in 2015 it reported revenue of £14.4m and £3.6m pre-tax profit. The year to 30 April 2018 is expected to show £36.1m of sales and £9.7m of pre-tax profit. Throughout this growth the company has remained highly cash generative and paid modest dividends.The US is now its number one growth market, as it is the world£s single biggest place for GRC spending. That means accelerating acquisitions growth, such as April£s $8.7m purchase of Medforce, a healthcare compliance business.""The net of regulation red tape and compliance accountability is getting ever tighter around industries and organisations across the world. The next big one is EUwide General Data Protection Regulation (GDPR) which comes into force on 25 May and is the latest in a long list of rules designed to keep us better protected.All this puts UK software supplier Ideagen (IDEA:AIM) in a sweet spot thanks to its wide range of off-the-shelf specialised tools. The Midlands-based company concentrates on what it calls the governance, risk and compliance (GRC) space, providing information management solutions to highly regulated industries. Think healthcare, aviation, banking/finance, complex manufacturing, defence and energy."
Re: New highs, and a contract win It was mentioned in the share magasine....I dont subscribe so cant read/copy . Anyone??
Re: New highs, and a contract win I was curious about the Falklands contract win. Research shows that it has a population of circa 3000. This is less than the patient role of most UK GP Surgeries ( 0.6 GP's per 1000 population).If this contract win deserves publicity they must be scraping the barrel. It's not even as if it's an important strategic win a new country.
New highs, and a contract win Great underlying demand for these shares, and today's news may have contributed to the new highs:[link] quality management software to be rolled out across Falkland Islands health and social services17 May 2018King Edward VII Memorial Hospital will implement Ideagens Q-Pulse software for improved quality control, visibility and efficiency of safety and service levelsIdeagen is to work with the Falkland Islands Health and Social Services Department to help improve local services for residents and visiting tourists.Based in Stanley the Islands capital King Edward VII Memorial Hospital is the only dedicated medical facility within the Falklands. The hospital will be rolling out Ideagens Q-Pulse software to centralise documentation and data management, while standardising operational processes.Q-Pulse is used by hundreds of healthcare organisations globally and will provide staff working for the Health and Social Services Department with control, visibility and improved continuity when following practices based closely on healthcare standards, which are currently mandatory in the UK.etc"
Re: Good year end trading update today As long as Hornsby is in an executive role I think its ok. If he had gone non-exec I would have a little worried. Great results . Always would love to see the organic growth above this 10-11% number but their acquisition strategy seems so successful it doesnt seem to matter. I think well see some upgraded 2019 numbers come through soon which will support a higher share price. They look far too low right now.
Re: Good year end trading update today Nice comment today too about doubling revenues and adjusted EBITDA every three years.Techmarketview like the statement and the Board reshuffle. BD came across very well at Mello, and DH should continue to thrive in his new role:[link] 08 May 2018Ideagen appoints new CEO to drive strategic objectivesA trading update from Ideagen, the AIM-listed specialist in quality, safety, risk, audit and performance management software, shows that firm has grown revenue and adjusted EBITDA for the ninth consecutive year.The company is expecting to report revenue up 33% to c£36m and adjusted EBITDA up 40% to c£11m for the 12 months to the end of April 2018. Organic revenue growth looks set to come in at 11% (Ideagen has been acquisitive, including a purchase made in the US just last month).To sustain the execution of its objective of doubling revenues and adjusted EBITDA every three years, Ideagen is making some adjustments to its leadership structure. Former CEO, David Hornsby, has become Executive Chairman with a specific remit around strategy, M&A and Investor Relations. Ben Dorks (former Chief Customer Officer) will take Hornsbys position as CEO focusing in particular on operational performance, customer acquisition and retention, and product development. Both seem like sensible moves to us, with the Execs playing to their strengths."