Safecharge International Group Live Discussion

gretel 09 Aug 2016

Ex-cash P/E of just 12 looks cheap imo Moving up once again.The two latest forecasts from Shore and Canaccord average out at 14.83p EPS this year and 17.66p EPS next year.There are also 9.0p and 10.35p dividends respectively.SCH had £103m cash and available for sale investments at 31/12/15, against the £370m m/cap, i.e 28% of the m/cap.So SCH are currently trading on an ex-cash P/E of just 12 for this year and 10.1 for next year.Which strikes me as extremely cheap.

gretel 28 Jun 2016

Excellent trading statement Looks like a very good trading statement today - and the likely $140m+ cash pile is now worth a few £m more since the fall in the pound:[link] "The Group has enjoyed strong trading in the first half. As a result, Adjusted EBITDA* for the period will be comfortably ahead of US$16 million and the Directors are very confident of the outcome for the full year."

gretel 07 Jun 2016

Tipped in SCSW magazine Saturday's SCSW definitively said Buy and concluded:"Numis forecasts record pretax profit of $US35.8m/eps 20.9 cents and we suspect the shares are overdue a bounce. Buy."Not to mention the forecast 8.4p dividend or the $115m cash pile which should fund more acquisitions.

gretel 26 May 2016

SCH looks extremely cheap SCH's cash pile amounts to around 53p per share.That leaves an "EV" of around 179p per share, against for example Shore Capital's forecast of 13.23p EPS this year and 15.9p EPS next year.With 8.22p and 9.04p dividends.And the likelihood of earnings-enhancing acquisitions.Canaccord have a 320p price target, and Numis go for 350p.Last week's AGM statement was exceedingly strong.

mcescher 14 Mar 2016

Growth + value report Apparently 27% EPS growth next year and good value based on DCF:[link] on their screener tool which is quite impressive.

wineberry 12 Nov 2015

Stock comparisons I've copied a Motley Fool article just published and appears under 'news'.. Useful to have the information about the three companies in the sector, and puts Safecharge in a fair light, although the retraction of the share price from around 290p was getting me worried.MOTLEY FOOLTaking Stock Of The UK Payments Sector: Worldpay Group PLC, Paysafe Group plc & SafeCharge International Group LtdMotley Fool | Tue, 10th November 2015 - 15:41Share thisGiven the recent IPO of Worldpay Group (LSE:WPG), the UK payments sector now has a king. Before this coronation, there were already few names in this very attractive sector: Optimal Payments' purchase of Skrill to create Paysafe Group (LSEAYS) was a solid deal, and little-known SafeCharge (LSE:SCH) has been silently winning the technology game in the sector. It now seems constructive to examine the investment case for each.Before we sort the wheat from the chaff, let's outline what to look for when judging a payment business. First, bricks-and-mortar payment services are a good business. After all, we are all using less cash and more cards. However, processing e-commerce is better: the market is growing fast (at least 10% p.a.), it is fragmented, and penetration is still low (so the trend will continue). Second, though we hear that 'mobile payments' are the future (and it is true by all accounts), definition of 'mobile payments' is nebulous at best: ApplePay is a debit card in your phone, while Square allows you to use an iPad as a store checkout. Both solutions count as 'mobile payments', but are very different. Third, value-adding analytics are becoming more important. Customers not only want a 100% robust payment solution, but also an ability to analyse customer data and predict behaviour. Finally, if you are going to stick to the more mature bricks-and-mortar business, then scale is crucial for success. Worldpay GroupWorldpay Group is solid in all areas of the payment world. In particular, it has a fantastic bricks-and-mortar platform and an e-commerce offering. In particular, it is a market leader in the UK and has a strong 'omni-channel' offering in the US. It may be lagging some upstarts in mobile or data analytics, but offers more than 'hygiene level' services in both (especially in the US). Also, services such as ApplePay will actually use its bricks-and-mortar system, and by accelerating substitution away from cash, ApplePay could be a positive. However, as I mentioned before, Worldpay is expensive. A trailing 2014 EV/EBITDA of more than 18x cannot justify anything but sustained 'high-teens' growth rate (at the EBITDA level). Although it is possible, past financials only hint at such an outcome and nothing more.Paysafe GroupFull disclosure: this is my favourite of the pack, despite the recent news of a breach by hackers. Paysafe Group, which used to be called Optimal Payments, is solely involved in online commerce. Its focus on the gambling sector provides a sense of security: online gambling is growing (despite facing some regulatory uncertainty) and it allows the firm to develop know-how and scale so it can be competitive in its e-commerce offering outside of gambling. the way, PayPal does not allow use of its wallet for online games.Recently it become apparent that, due to a hack, data was stolen form the company's NETELLER and Moneybookers divisions. It may be true, and the hack may have been damaging to Paysafe's clients. There are few points to consider, however. 1) NETELLER and Moneybookers were competitors at the time of the alleged hack, and were both leading wallet providers for online games. If they were hacked, it is an industry problem, not a company-specific one. 2) Consequently, given the combination of the two leaders, there is actually very little competition for these wallets. Other providers are probably less secure. 3) Future for Paysafe lies mostly in e-commerce payments and expanding of the Paysafecard pro

charlie51 28 Sep 2015

FORECASTS Latest views:Comment from Whitman-Howard on 16th Sept below and Shore Capital below that and attached. *SAFECHARGE – HY Results…slight upgrades to come through post numbers, continued growth with new products and a strong pipeline, they have a number of new clients committed for the 2H, given that they are delivering at a reasonable pace the high valuation is justified. Please see Phil Pickard’s commentsAnalyst Commentary: Continued good growth, new product development, with a very strong pipeline. New clients committed to come online in H2. >100 new clients signed in the period. Now have VISA acquiring to add to and complement Mastercard. e-wallet and pre-pay card (PAY.com) to launch in Q4. Credit Guard and 3V acquisitions integration is on track. Will look at further M&A opportunities. Valuation: Trading on 24x consensus PER for current year and 2.4% yield, followed by 19.8x and 3%. Looks to me like there may be some upgrade to these numbers, so not expensive, although sentiment on the sub-sector is muted these days. Many stocks in the larger cap have higher PERs with far less growth…Val: PE 20x; EV/EBITDA 13x; Div Yield 2.7%; Net Debt -$115m SafeCharge+(SCH) – Interim Results, Upgrades – House Stock* at 288.5pAhead of forecasts…The international payment services specialist has announced interim results for the period to end June ahead of our expectations. The performance is driven largely by a stronger organic performance than we anticipated, though thestatement indicates that the acquisitions of 3V Transaction Services and CreditGuard (both strategic in nature, adding clients, products & services and completed at the start of the period) are performing well.Revenues grew by c44% over H1 2014 to US$49.5m against our expectation of US$45.0m – so a beat of 10%. The gross margin dipped a little (130 bps) to 57.7% driven by emerging mix including the dilutive impact from acquisitions;however, management indicates an expectation of the margin firming as the business develops with the core processing margin stable at 59%.EBITDA rose by 41% to US$15.2m, our forecast US$14.0m – a beat of 9% therefore. Our forecast for EBITA was US$12.7m, the outturn being US$13.0m and compared to US$9.4m last year; depreciation and amortisation rose sharply from US$0.5m last year to US$1.4m, reflecting acquisitions and ongoing investment in the business. At the adj. PBT level the outturn was US$13.2m against our forecast of US$12.8m (so a beat of c3%).EPS growth benefited from tax income from deferred tax accrued through the acquisitive activity, so adj. EPS of 9.1 cents compares to our forecast of 7.6 cents and the 6.9 cents generated for H1 2014. We expect this tax benefit to be reflected for the full year earnings. The interim dividend rises by 39% to 4.0 cents (2.88 cents paid last year. The balance sheet remains robust with net cash as at end June of US$115.7m (down from US$146m at the year-end on acquisition costs). Cash conversion was at the 96% level to operating profit at US$14.5m.Strong growth metrics…Looking behind the reported results, growth metrics remain strong, increasing our confidence level for the current period and beyond. Headcount continues to grow and we note the c34% increase in employee costs to US$9.1m, resourcing continuing growth. Customer churn is indicated to remain low and we note momentum in new customer additions in the period and strong pipeline as indicated by management. Customer, product & service and geographic expansion are all combining to propel SafeCharge forwards. We note that acquiring activities are now fully launched with the benefits now just beginning to accrue. The full launch of Pay.com is still anticipated towards the end of FY2015F, with Pay.com gift cards already available in UK supermarkets (leveraging 3V’s capabilities). CreditGuard is said to be already delivering growth in industry sectors including retail, travel and aviation.Forecast upgradesThe str

charlie51 12 Sep 2015

SCSW Comment from the April 15 issue - a useful reminder and it will be interesting to see how accurate the forecasts are. In my view we will see these beaten.... Current trading described as very strong All told, SafeCharge has already described its current year trading as “very strong.” For the year to end December, sales were up 78% to US$76.9m and it recorded a pretax profit of US$29.6m. Earnings per share were up from 5.9 cents to 14.5 cents.For the next two years, Numis forecasts double digit profit and earnings per share growth with US$29.6m pretax/eps 17.3 cents this year climbing to US$35.8m/20.9 cents next year. The cash pile stood at US$145m (before buying 3V) and this will support Avgi’s plans for a move into Asia, a key target for SafeCharge. Only a small proportion of revenue is currently generated in Asia (none from gambling) but given the army of addicted gamblers, such a move could follow Optimal’s shares into orbit. Buy.

charlie51 12 Sep 2015

Re: Results due Still here. Happy to hold. This is quite a 'news lite' stock, however. There's also not a lot of comment on it anywhere from my research which could be a real positive if they continue to deliver the goods and awareness of SCH in the market grows. Wednesday should be interesting.

wineberry 11 Sep 2015

Results due No one interested in SCH any more? It's a strong rise in the share price ahead of results due 16th Sept, and nice to be holding a share which goes up when the market as a whole is rather dismal. The rise suggests that the results will be positive.

megaloss 15 Apr 2015

Looking good? I think this company is going places and will get re-rated fairly soon, and we may not have the opportunity of getting in at this price very often, even though its performance has already been good - I've increased my holding by 50%. Fingers crossed!

charlie51 17 Mar 2015

Shore view Shore Capital comment on - SAFECHARGE (SCH, House Stock*, Current Price 253p) – Full year results, strong momentum. The payment services specialist has reported strong growth in revenues, profitability, earnings and cash flow for its full year to December 2014, slightly ahead of our previously upgraded forecasts. The company, at its AIM float in March 2014, set itself a number of demanding objectives, both for financial and corporate development. SafeCharge has delivered across a broad front, in our view. Growth continued to accelerate through last year, resulting in three upgrades to our forecasts post float; this momentum is indicated by management to have continued into the current year, through the first quarter period. We believe secular growth rates in the payment services industry remain high, providing a positive backdrop for SafeCharge.FY2015F is set to see the fruits of last year’s corporate activity begin to emerge, SafeCharge has now delivered two acquisitions from the US$125m gross funds raised at IPO; we expect further transactions to follow, leveraging continuing organic investment and growth. Additional products and services are set to follow last year’s success in achieving acquiring status for merchant clients and in becoming an ‘electronic money’ institution. As the cost and timing of the launch of these, with associated acquisitive development, continues to be determined; we conservatively retain our current forecast stance (post recent upgrades) for FY2015F, we believe prospects remain bright.FY Results - Dividend. SafeCharge outperformed our upgraded expectations for FY2014. Revenues at US$76.9m were US$1.4m ahead our expectation (forecast on float was for US$61.2m). EBITDA at US$24.7was US$0.2m ahead (US$18.1m on float) of our expectations. Adj. PBT at US$23.6m was cUS$0.3m ahead of our expectation, with adj. EPS at 14.7c being 0.3c ahead. Net cash also ended the year stronger than our expectation (by cUS$3.0m) at US$146.5m. A FY dividend of 8.16c is proposed, compared to our most recent forecast of 7.00c. On our current FY2015F expectations, SafeCharge trades on a PER of 22.9x and an EV/EBITDA multiple of 14.3x with high organic growth rates continuing, support from the strong balance sheet and ahead of excellent continued upgrade prospects, in our view. SafeCharge also offers a dividend yield of 2.1% on our forecasts for the current year.

charlie51 17 Mar 2015

Results presentation Look very strong indeed to me....