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BCT Business Ctl

1.25
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Business Ctl LSE:BCT London Ordinary Share GB00B07YXJ41 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.00% 1.25 0.00 00:00:00
Bid Price Offer Price High Price Low Price Open Price
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
  -
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 1.25 GBX

Business Control Solutions (BCT) Latest News

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Business Control Solutions (BCT) Discussions and Chat

Business Control Solutions Forums and Chat

Date Time Title Posts
20/4/201218:08Business Controls113
01/7/200509:17Blue Chip Trader1
12/7/200207:27Blue Chip Trader-

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Business Control Solutions (BCT) Top Chat Posts

Top Posts
Posted at 01/3/2011 17:39 by bachellor
what is the latest on this share
Posted at 16/4/2008 13:11 by truckertee
Buy Business Control Solutions (BCT) at 3p

Says exclusive small cap specialist website UKMicrocap.com

The 200 members of UKMicrocap.com were exclusively tipped to this stock on 4 April 2008 at 2.125p. If you wish to join the waiting list to get access to this exclusive site click HERE

The Investment Case:

The credit crunch has left many financial institutions paranoid about the integrity of their balance sheets; none of them want to be the next Northern Rock or Bear Stearns. The stage is set for a huge overhaul of the procedures used by the banking system, of which software will play a major role. With the recent launch of its Balance Sheet Integrity product, which provides instant visibility over the account substantiation process across multiple regions, businesses and currencies, Business Control Solutions (BCT) stands to gain from these developments.

Company Description:

Business Control Solutions provides management consultancy services and operational control software to financial institutions. Its software packages are aimed at giving its clients visible control over day-to-day business processes while ensuring accurate reporting to meet regulation requirements. Its clients include six of the world's top 10 banks, and the company has offices in London and New York with software development in Peterborough and Romania.

The company was formed out of an amalgamation of two companies, B2B (founded in 2000) and Buttonwood (founded in 2001), which, having pursued different clients in the investment banking world, encountered each other at Abbey in 2003 and realised there was potential for co-operation. A joint venture named Visual Control Management was set up soon after, and in 2005 all three entities were combined and listed on AIM through the reverse takeover of cash shell Honeysuckle. Since then the company has significantly increased its client base, thereby reducing the group's reliance on one client, which accounted for 70-80% of revenues in 2004, and giving a much broader spread of revenues.

Current trading looks positive, with the company pursuing a transition for its clients to an annual licence model that will ensure an increasing level of recurring revenues for the group going forward (they now account for 25% of software revenues). The company also said it has been enjoying strong growth across its client base and its range of services and that levels of interest in its new balance sheet software have been high.

Financials:

During the year to 31 December 2007, the group posted losses before tax of £399,000 on revenues of £9.66 million, representing improvements of 44% and 20% on 2006 respectively, and resulting in a loss per share of 0.15p. However, the main issue was the fact that the company turned a profitable second half, at both the operating and pre-tax level. Revenues at the consultancy business increased by 26%, while the software division managed a less impressive 4% increase due to investment in new products and the ongoing transition to an annuity-based model. This is a strategy that appears to be bearing fruit, with contracted annuity income within the software business up by 88% at £776,000 year-on-year. Gross margins were maintained at 38% despite a shift in the sales mix towards the traditionally lower margin consultancy business. Net cash at the year end stood at a useful £2.8 million.

Year to
31 December
Sales
(£m)
Pre-Tax Profit (Loss) (£m)
Earnings (Loss) Per Share (p)
PE Ratio

2006A
8.04
(0.68)
(0.31)
N/A

2007A
9.66
(0.4)
(0.15)
N/A

2008E
10.2
0.3
0.11
27.3

Management:

The board carries a hefty weighting towards the banking world, giving the company an essential contact network it can utilise when pursuing clients. Most notably, Non-Executive Chairman Steve Russell has spent the last 20 years managing some of Britain's largest and best-known companies, and is currently a non-executive director of Barclays Bank; while Chief Executive Nigel Walder was a senior IT manager at Bankers Trust, before moving to take up the position of Head of Technical Infrastructure and then CIO for NatWest Global Financial Markets.

Bull Points:


- Transition towards a recurring revenue oriented approach should ensure a more stable and reliable earnings stream.

- Rise in awareness of control-related issues in the financial services marketplace.

- Broadening client base.

- Very strong net cash position significantly de-risks the investment proposition; provides scope for earnings enhancing acquisitions.

Bear Points:

- Difficult to foresee how investment banks' cost tightening will affect the company, although there has thus far been no sign of a downturn in any of the group's divisions.

- loss of one of the larger customers could adversely affect the business.

- The spread is wide

Valuation and 1-year Target:

The shares have been hit hard over the past few months, having traded at around 7p back in May last year. However, with the company having recently moved into profitability and offering products which play to the concerns attributed to the current financial climate, we believe a re-rating is in order. If we discount the net cash position of £2.8 million, we arrive at an enterprise value of just £5.3 million for the company, and the shares therefore trade on an EV/Revenue multiple of just 0.52 for the current year. This is extremely low, as most peer group companies trade on EV/Revenue multiples of not less than 1. If we attach the same value to BCS shares, this implies a price target of 4.845p, giving us upside of 62%

Assessment:

Business Control Solutions is a profitable and growing company, with products that are of increasing interest to their target markets. Throw in a net cash position covering more than a third of the market capitalisation, and the investment case looks compelling. Buy.
Posted at 02/4/2008 13:50 by barn owl
The recently announced results for 2007 seemed rather positive, with sales up 20% this year at £9.7 million and ahead of house broker Arbuthnot's £9.2 million estimate. The losses were reduced from £684,000 to £399,000. The company seems profitable in the second half-year and finished 2007 with around £2.8 million in the bank. At just under 2p a share to buy today,the market cap is around £6.8 million, with a possible profit of £300,000 on sales of £10.2 million for 2008.
The company seems to be growing at 20% year on year, or am i missing something apart from the market turmoil. Looks like a reasonable long-term speculative punt at these levels.
Good luck all.
Posted at 19/9/2007 06:47 by chrisbra1
What will the share price do today I wonder... could go either way!
Posted at 10/7/2007 12:23 by r6cox
Anyone watching these shares know what is going on? They have posted results in line with forecasts for H1 and still they are going down. Is there anything beneath the surface pushing investment away or are they just an unpopular share at present? Be interested in comments from anyone with an insight.
Posted at 05/4/2007 07:51 by latifs100
Business Control Solutions Group plc (BCT: L), the provider of consultancy and
software control solutions, will be announcing its preliminary results for the
twelve months ended 31 December 2006, on Wednesday 18 April 2007


they should mention contract value, and should move back above to 8p
Posted at 11/2/2007 07:03 by silent_angel
I bought 10000 on Friday, based on the news, a strong buy broker rating, its overall cheap price and after I saw it go from up 40% to up 20% in the same day.
Posted at 09/2/2007 08:57 by devil20
I had a bit of cash spare in iDealing so I've bought another 10K which is the max you can buy online with idealing. Tuck them away in case BCT does well.
Posted at 23/11/2006 17:32 by iroll
I regret its not good news!

1000 Honeysuckle shares will have been redesignated as 10 BCT shares (plus 90 BCT Deferred Shares which are worthless).
Posted at 17/10/2006 14:51 by 59david
Not sure whether anyone is following this share but looks interesting to me. Share price fallen today looks overdone (result of a sale of approx £23k of shares at well below spread. Placing done at 6p, results looking promising, change of broker should mean better coverage once placing approved. Personally can only see this go up hence have bought a few buy, as usual DYOR
Business Control Solutions share price data is direct from the London Stock Exchange

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