Willow67
26 Aug 2017
Re: Tip of the Week in today's IC... Read the article. Nothing very insightful. Main points are that the shares trade on x19 2018 forecast which is apparently a little cheap vs peers, the grc market is growing and their current cash position is their to pay for the balance of previous acquisitions, hence the need for a placing for Please Tech. Still nice publicity.
Willow67
25 Aug 2017
Re: Tip of the Week in today's IC... Any new info or news gretel? Quite a pop in the shares
gretel
25 Aug 2017
Tip of the Week in today's IC... I managed to read it free of charge for some reason, though it became subscriber-only on a second try:[link]
Willow67
24 Aug 2017
Re: Profiled in Amati Fund newsletter Nice find, thanks. I am excited by the impact Please Tech will have on the company; their 2016 results alone would add 16% to Ideagen's full year 2017/18 EBITDA and given they have been growing at 40%+, we can expect more. Throwing in organic growth of 10%, that suggests back of the envelope EBITDA for Ideagen of something like £10.5-11m for this year which would be enough to propel the shares through the previous highs I think. Obviously the shares have been in holding pattern post the publication of final results in July and no news in the month or so since but it won't last for too long.
gretel
23 Aug 2017
Profiled in Amati Fund newsletter Amati Global Investors have issued their August newsletter, and in it there's a spotlight on IDEA as their investee (along with FDEV, which I also own) - see p.4:[link]
gretel
04 Aug 2017
IDEA win international award Nice:[link] PleaseReview wins ‘Best Document Review Solutions Provider’ at International Life Science Awards03 August 2017 Ideagen PleaseReview, Ideagen’s document review, co-authoring and redaction software, has won ‘Best Document Review Solutions Provider’ at the International Life Science Awards 2017.PleaseReview is a specialist software solution that makes it easy for teams to work together to deliver high-quality documents. Going beyond simply sharing files – it has the unique ability to control collaboration within the document.Now in its second year, the International Life Sciences Awards 2017 endeavour to reward and recognise shining stars in the life sciences sector – from established and successful organisations to smaller niche enterprises making their mark on the industry.Pharmaceutical, Biotech and other Life Science businesses operate in an extremely document-intensive, highly regulated environment. PleaseReview supports this critical process of producing compliant, quality documents within tight deadlines.David Hornsby, Ideagen CEO, said: “Bringing products to market is a huge task, so implementing efficiency improvements is essential.“To collaboratively edit and review complex documents generated for clinical trials, quality assurance and regulatory submissions, which often require the contribution from various functional area authors and subject matter experts to an organisation, requires specialist technology capabilities. It is why PleaseReview is used by many of the world’s leading pharmaceutical companies.”David added: “We know from our customers how valuable PleaseReview is to their businesses. Recognition from industry peers is a testament to the strength and quality of the product and marks the beginning of another exciting 12 months for PleaseReview.”PleaseReview, which became part of Ideagen’s product suite following its acquisition of PleaseTech in March this year, is used by over 180 organisations worldwide including 70% of the leading pharmaceutical biotech organisations.The software provides simultaneous, controlled and secure collaboration for review, co-authoring and redaction resulting in faster document development and enhanced quality. Reporting and metrics ensure transparency, accountability and facilitate process improvements."
gretel
02 Aug 2017
Covalent implementation success News:[link] District Council receive Complaints Management award with help from Ideagen Covalent 02 August 2017Ideagen Covalent played its part in helping the Council reduce complaints by 36% while compliments increased by 181%Horsham District Council, a local authority in West Sussex, England, has been commended at a recent awards ceremony for its expertise in reducing customer complaints.The Council's Complaints and Feedback team were named the UK Contact Centre Awards' Complaints Management Team of the Year after reducing complaints by 36% in just 12 months.Ideagen's software, Ideagen Covalent, played a significant part in Horsham's success, with the team using Covalent's Feedback module. The module enabled root-cause analysis to allow the team to get to the source of each complaint, ensuring each is dealt with quickly and could not reoccur.Covalent also provided Horsham with live performance data, increasing levels of transparency so that managers could see the amount and detail of each complaint in their department.The success of the Council's Complaints Management project and the impact of Covalent's Feedback module resulted in Horsham's success at the recent awards.etc"
Willow67
01 Aug 2017
Re: Terrific new article about IDEA 23% company growth will get them to Experian's 14b market cap in 20 years. Who would best against them? Thats the kind of hold period that will reward!!!
gretel
30 Jul 2017
Terrific new article about IDEA Much too long to copy, but here's some extracts::[link] software developer that wants to become Nottingham's next major firm alongside Boots, Experian and Capital One""As CEO David Hornsby points out several times, there won’t be many businesses in the county that have rocketed in value on the stock market from £1m to £170m in less than a decade.But that’s what his Ruddington-based business has done through both organic and acquisition-led growth. The path is clear for plenty more expansion, too, for a company that counts organisations like Heineken, the NHS and British Airways among its clients.Operating in a world where governance compliance becomes more prevalent by the minute, there will always be scope for more opportunities for Ideagen, which makes quality, safety, audit, performance and risk management software.Dave says: “Experian is a giant of the industry but in 20 years’ time, Ideagen will be up there with it.”"AIM-listed Ideagen, which is currently on the lookout for 50 new staff, has increased revenue at a rapid pace.Turnover was up 24 percent from £21.9m to £27.1m for the year ending April 2017, while profit also rose by 24 percent from £6.3m to £7.8m. Next year, revenue and profit are expected to hit £34m and £11m respectively.Exports make up about half the business, with a prestigious list of clients both home and abroad.David points out that Ideagen supplies its information management programmes to eight of the top 10 accountancy firms in the UK, seven of the top 10 global aerospace and defence companies, 17 of the world’s top 25 pharmaceutical firms, and 80 percent of the UK’s NHS trusts.BAE Systems uses its software for compliance and risk management on its Eurofighter Typhoon model; Heineken and Shell’s internal audits are controlled by Ideagen programmes; and the Rail Safety and Standards Board (RSSB) uses it for risk management across the entire rail industry, logging 70,000 incidents a year and analysing the data to help prevent recurrences.""Other elite names among Ideagen’s client list include Airbus, British Airways, Emirates and the European Central Bank.While the company’s expansion has be largely explained by a series of acquisitions, there has also been organic growth helped by the market it operates in.Legislation for complex, highly-regulated businesses is always changing, meaning organisations must have the right systems and procedures in place to make sure they are compliant.Barnaby says: “There’s more and more companies around the world, in pretty much every sector, where risk has a greater emphasis.""One of the most recent examples of this is the General Data Protection Regulation, which comes into force next year to address the increasingly complex cyber security threat that came to light most prominently in the global cyber-attack that crippled the NHS in May.Data has already proven to be an invaluable asset in the industry – in what Barnaby calls “evidence based risk management” – in improving flight safety.""In order to keep up with the changing landscape, Ideagen employs a third of its staff in research and development to bring new software to the market, as well as two ethical hackers whose job is to break into systems so they can identify vulnerabilities and respond.The company also has one eye on competitors in a bid to stay ahead of the game.David adds: “About 50 percent of the marketplace doesn’t have specific systems to manage risk management.""“They have spreadsheets and word documents – manual systems – and these are big companies.“If you said that 50 percent of the world didn’t have an accounting system, it would be crazy.“But everyone has to get tooled up and that’s our job to help them.”"
gretel
24 Jul 2017
Finncap : results beat expectations Finncap note in reiterating their 108p target price that results were ahead of expectations on all the main metrics:"Consistent strength in deliveryTypically impressive prelims are in line with the May trading, pleasantly ahead of prior forecasts: EBITDA of £7.9m (£7.8mE); revenue of £27.1m (£26.2mE); net cash of £4.2m (vs £1.6mE) strong even after adjusting for an abnormal creditor of £0.8m. The year delivered 10% organic growth, enhanced by benefit of four acquisitions in the period, and supported by an oversubscribed £10m placing at 75p, a premium to the then shareprice.Ideagen management’s tried and tested methodology continues to deliver, evidenced by relentless execution at or ahead of forecasts; adding new customers and retaining existing customers; stable margins and increasing cash generation; and increasing visibility through a growing recurring revenue base. Target price 108p reiterated, with unmodelled inevitable acquisitions expected to continue to add to the strong core.Results in line with the May trading update, with continuing improvement in earnings quality through the increase in recurring revenue (£15.5m, up from £11.4m) equivalent to 57% (54%) of group revenue. Recurring revenue growth is driven by the rising base of SaaS revenue (£4,8m), adding to the ongoingmaintenance and support from previous, and current, licence sales, given the hybrid model. We push up FY17 revenue expectations +3%, EBITDA unchanged; with net cash expectations lifted to £7.0m (formerly £5.6mE).Group organic revenue growth of 10%, (including proforma performance by the four businesses acquired during the period), was derived principally from 13% organic growth within the core GRC business, representing 84% of group revenue. Revenue growth was accompanied by margin growth, with both gross margin of 89.5% (FY16: 88%) and EBITDA of 29% (28.5%) highlighting consistent expansion, which we expect to continue. Customer growth in the period is encouraging, especially given the strong account management focus to ensure a 97% (FY16: 96%) renewal rate.The board appointments of the Chief Operating Officer and Chief Customer Officer highlight the depth in senior management evident at the June capital markets day, with a further NED appointment expected. The momentum for Ideagen is evident, and we expect the tried and tested formula to continue to generate healthy returns. Target price 108p reiterated."
gretel
20 Jul 2017
Tipped in the IC as follows:"Management at Ideagen (IDEA) were keen to emphasise the value-add from acquisitions made over the full year to 30 April 2017 – not just buying companies for the sake of it, but finding ways to integrate new businesses in a way that enhances their current offering. Revenues for the IT software specialist grew by almost a quarter during the period, which included underlying organic growth of 10 per cent, suggesting that it is not simply inflating its top line via acquisition. But the costs of the strategy meant operating profit fell 30 per cent to £0.7m.In an attempt to boost recurring revenue, Ideagen is increasingly moving from a licencing model towards a subscription-based model. Progress has already been made, with recurring revenues comprising 57 per cent of Ideagen’s total, up from 54 per cent last year. Management expects that this could reach 70 per cent in the medium term.The four acquisitions made in the period were intended to add intellectual property and recurring revenue, as well as vertical integration; with one such example being Covalent – purchased to add a risk management element to Ideagen’s audit management offering Pentana. Analysts at FinnCap expect £9.7m of pre-tax profit in the year to April 2018, giving EPS of 4.2p, compared with £6.9m and 3.2p in FY2017.IDEAGEN (IDEA) ORD PRICE: 83.5p MARKET VALUE: £ 165m TOUCH: 83.0-84.0p 12-MONTH HIGH: 98p LOW: 52p DIVIDEND YIELD: 0.3% PE RATIO: 209 NET ASSET VALUE: 23.4p* NET CASH £4.2m IC ViewIdeagen has proved that it grow organically and by acquisition. Shares aren't cheap at 20 times forward earnings, falling to 18 times in FY2018. But there's net cash on the balance sheet and good forecast top-line growth. Buy."
Willow67
20 Jul 2017
Re: Good results today Any Ideagen investor is going to have to buy in to the notion that their 'real' earnings are their adjusted ebitda numbers, not their reported operating profit. They 'lost' £5m of their £7.8m ebitda through amortisation of intangibles created through their acquisitions and this pattern is going to be repeated going forwards. If you don't buy into that, you shouldn't invest. To me the cash generation is very important and it seems to be good and improving all the time; in simple terms they made £8m, raised £10m through the share placing, borrowed £2m and spent that £20m on acquisitions and product development, leaving their net cash position of £6m unchanged on the previous year. It is perhaps a little concerning that without continuously spending money on acquisitions they are only growing at 10% - given that, perhaps that a PER 1 year forward of 20+ is a slight stretch and each time they report I am hoping that organic growth number is more like 15%+. You could equally point to the fact they don't have any debt and have demonstrated they can consistently find complimentary businesses to buy. My hunch (total speculation on my behalf) is a big GRC acquisition will be tackled at some point, funded by a mix of debt and a large equity placing, something in the £30-50m area. The GAEL acquisition in 2014 shows they will be bold if they find the right business at the right price and the balance sheet strength would allow it
gretel
19 Jul 2017
Tipped this morning Nice tip for IDEA here:[link] IDEA), a leading supplier of Information Management software, revealed a surge in annual profits earlier today as it announced its full-year results for FY2017. The AIM-listed technology business reported another strong performance for the year to 30 April. It was its eighth consecutive year of sales and earnings growth, with total revenues coming in 24% higher at £27.1m, and adjusted pre-tax profits rising to £6.9m, from £5.7m just a year ago.Fourfold increaseThe Nottingham-based firm provides quality, safety, audit, performance and risk-management software and expertise and has operations in the UK, EU, US, and the Middle East. With an excellent portfolio of software products, it helps companies to improve operational efficiency, strengthen compliance, and anticipate and manage every detail of risk, helping to reduce costs and improve efficiency.With a market value of £166m the AIM-listed group may be considered small-fry when compared to software giants such as Sage Group, valued at £7.2bn, but it can still boast a customer base of over 3,000 organisations that use its products. These include many blue chip names such as BAE Systems, Emirates Airlines, Royal Dutch Shell and the European Central Bank, as well as 180 hospitals in the UK and US.Despite a fourfold increase in the share price over the last five years, the shares have never breached the £1 mark, but I think this is about to change. With City analysts forecasting a further 28% improvement in underlying earnings for the current year to April, investors should look past the premium P/E rating of 21 and see that this is a price well worth paying for rapid growth."
The Dutchman
18 Jul 2017
Re: Good results today Too many adjustments to the IFRS numbers I think. You could equally have said " profits and earnings per share almost halved", which indeed is the case!
gretel
18 Jul 2017
Good results today Extremely solid results, with EPS etc up almost 20% and spot on forecasts. Lots of recurring income makes this a must-have stock for institutions.Good to see a £4.2m cash pile at the year end too. The dividend is slightly above expectations.Above all, trading for this year looks good and the outlook positive:[link]
