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Real-Time news about AI Claims (London Stock Exchange): 0 recent articles
|goldibucks: Today's results in PDF format;
There is some very useful information on risks and mitigating factors, key performance indicators, and loan covenant conditions.
1) Revenue up 65% £55.7m to £91.9m.
2) Gross margin down from 26% to 18% in line with change in sales mix.
3) Profit for the year attributable to ordinary shareholders up 47% from £1.3m to £1.9m.
4) Basic earnings per share up 47% from 2.13p to 3.14p.
5) Dividend up 10% from 0.60p to 0.66p. Fives times covered.
6) Bank facilities doubled from £15m to £30m to fund working capital growth.
7) Strong start to new financial year with new contract starting on 1 July.
8) Chairman has agreed agreed to extend his 100% share price linked remuneration scheme for a further 2 years.
9) Debtor days up from 98 to 103 but still significantly below industry average. Also, 93% of revenue recognised prior to 30 June 2009 had been collected by 30 June 2010.
10) Net debt up from £8.1m to £18.1m. Based on a revenue increase of £36.2m and debtor days of 103 days, this is entirely working capital driven.
11) Return on capital employed up from 10% to 13%.|
|goldibucks: H1 EPS up 31% bodes well for the full year. Net debt at £12.8m is £0.9m ahead of market capitalisation at 19.5p bid. Debtors days up from 95 to 101 versus 200+ sector average. Probably in the share price after the recent run but doubt many people will be selling on the back of the results. Provided there are no hiccups with debtor days or working capital, the share price is only going in one direction.|
|goldibucks: When you say never any feedback or news, have you read the 64 page 2009 annual accounts?
It's a comprehensive set of accounts for a company with a market capitalisation of £9.2m. If you want regular newsflow you need to invest in a bigger company.
The problem for longer term holders is that Ai Claims hasn't made any bottom line progress in the last 3 years, basic EPS has gone from 2.01p in 07 to 2.26p in 08 to 2.13p in 09. That's not great but if it did that for 7 years in a row it would cover the current share price.
The company has made top line progress but at the expense of lower margins, higher working capital requirements, higher debt, and higher interest payments so the market has got fed up of waiting for bottom line growth and is pricing the earnings on a dull income stock multiple.
Another downside is the directors running Ai Claims don't own much equity and haven't bought much, I own more shares than the CEO and FD. If Directors aren't prepared to put their own money up, they shouldn't be given share options. They should get a modest basic salary with a generous bonus related to EPS growth.
Charles Good, Bluehone, and the other major Ai Claims shareholders need to set targets for EPS growth in the next 3 years. If David Sandhu, Steve Broughton, and Peter Harrison can't achieve them, they need to be replaced, preferably with Directors willing to invest their own capital instead of holding their hands out for share options without delivering anything noteworthy.|
|scotswhaehae: ...yep, still here too!
re post 896, maybe I'm getting ahead of myself but dependent on your view of second half admin costs I think second half profits growth could/should exceed 35% as operational gearing kicks in...
those of us who have been here for a while could yet see very nice share price appreciation (at last!)|
|scotswhaehae: Well, my numbers suggest that sometime in the 2007/8 financial year (which begins in just a few weeks!) ACS will hit 45p plus if EPS of this current half year hits targets and then we see even modest growth thereafter.
That is why the Directors are buying imo...Fundamental growth (plus a bid if the share price doesn't respond!)
Looking very very good to me!|
|scotswhaehae: This is still just a £18m market cap...lol...
I note we had a 40p share price in 2003!
Great upside imo!!|
|scotswhaehae: very true imo alexacj...
and if you are right, as we enter the new financial year we would then perhaps be looking at say 12x historic PER...why not?...giving a then share price of say 34-35p...with a business in increasingly robust mode...
|thelonegunman: Why the drop in share price?
I have heard the suggestion that another insurer (3rd in the space of a few years) is looking to remove its outsourcing away from ACS. I understand the insurer is Provident.
As there has not been an official announcement as to the accuracy of this information from ACS, I cannot vouch for its accuracy - only time will tell. But I heard the news a few days before Christmas.
Can anyone confirm?|
|squash90: so if the news is that good why the drop in share price?|
|alexacj: Scots everyone to his/her own....but it generally helps when you post something that supports your view......just a belief out of thin air lacks credibility.....but I do admit you have a fifty percent chance of being right!......you simply don't believe the forecasts....and that is understandable given the performance to date....but I do think that you understand that generally the market looks forward....and if you invest in stocks such as IQE IND etc.....then you have to have a great deal of faith in forward projections!.....hence why I make the statement on ACS share price IF they hit their targets......they don't just stop at £3 million PBT...especially in a sector where if you put all of the competition together they only currently have about 20% of the business......shows there's still alot to go for.....I think that it's management credibility at the moment that is holding this back..and we may see short term weakness....but...IF they deliver then it will be re-rated......I genuinely thought that you had some specific information that led to your about turn....but it seems not....good luck.|
AI Claims Solutions share price data is direct from the London Stock Exchange