I-Design Share Discussion Threads

[greenroom78] 26/12/2011 16:42

Has everybody else jumped ship?


Happy xmas those that are still here.

[greenroom78] 08/12/2011 23:09

I've discovered twitter ;)

@atmAd - Burger King selects atmAd for King of the Day campaign!

[rivaldo] 05/12/2011 14:29

I've got hold of Arbuthnot's morning update after the results.

They retain their 90p target and conclude as follows:

"In our view, i-design remains an attractive investment proposition given the likelihood of further contract wins for joono, in new and existing geographies, either directly or through partners. Therefore, we are more than happy to reiterate our 90p target price and Strong Buy recommendation."

It says it all that. despite the Canada contract win, and the Barclays win towards the end of the last financial year, they've left their estimates unchanged at 0.1p EPS "due to the global economic backdrop".

And this also despite IDG's services actually bringing in a new profitable income stream from a previously unutilisable division, which in these times must be manna from heaven for the banks.

[cfro] 03/12/2011 19:01

I was under the impression that there was a good deal of recurring revenue earned from the Barclays deal and others. Obviously we have the intial fee earned from the sale of the licence, but i thought that IDG would typically earn another fee as each advert was 'played' on the ATM's.

This has confused me a little and perhaps i have been too optimistic with my 8p forecast.

But im comfortable to stick with my own forecast for now as i believe that other contract wins are just round the corner, which will go straight to the bottom line anyway.

More than happy sitting on my largest portfolio holding and following the story as it unfolds over the next few weeks and months.

[dugganjoe] 03/12/2011 09:37

flat profit growth is a worry joono

[rivaldo] 02/12/2011 11:42

Cheers Prophet, good to see the tipsters getting behind IDG.

One further point I'd make is that R&D written off in the last 2 years has been £329k and £335k respectively. These are extremely material sums for a company of IDG's size. I'm sure a large portion of this would have been for the development of "Joono", which as we know has now been completed and successfully released.

I suspect that we might see R&D expenses reduce quite significantly for a while as IDG concentrate on making Joono a success and enhancing profitability, until the next product enhancements start to take shape.

[frank1e] 02/12/2011 11:35

Thanks The Prophet :)

[the prophet] 02/12/2011 10:14

-there was an up-date last night on rhps on IDG, bottom line is they have increased their buy limit a tad to 65p
-also a small-ish positive article in shares mag, they quoted some eps figures from housebroker, from memory something like 1.1p and for next year 3p+

[frank1e] 02/12/2011 10:11

Agreed,we will just have to wait for official confirmation though. Anyone subscribe to RHPS with any info?

[dvda] 02/12/2011 09:30

But Bank of Canada wouldn't make any sense, as that would be like signing up the Bank of England i.e. a bank with no customers, ATMs, etc., so far more likely that it is RBC and he's got the name wrong.

[frank1e] 01/12/2011 23:56

On reflection I may have jumped to a false assumption dvda, as you say Bank of Canada was mentioned not "Royal" Bank of Canada.... big difference!!

[dvda] 01/12/2011 22:18

The Twitter info is a little confusing as it mentions Bank of Canada, which is the central bank

Perhaps he's just unwittingly shortened the name? Given that the bank was not named in the RNS, I expect he may get a slap on the wrist for this indiscretion.

[frank1e] 01/12/2011 20:30

The source is pretty good ic2, check out @jayKB on twitter ;-)

[interceptor2] 01/12/2011 19:18

If correct that would be good news, because they are the largest by market cap.

ic2..

[frank1e] 01/12/2011 16:43

I heard on the grapevine that the Canadian deal is with The Royal Bank of Canada. That's superb if confirmed!

[dvda] 01/12/2011 15:33

Rivaldo

This sentence was in the interims (which does actually leave the door open for advertising):

"Barclays will be using our technology primarily for its own marketing campaigns to customers and we look forward to supporting the bank as it makes full use of the market leading features of our solution."

[interceptor2] 01/12/2011 14:45

I read on the Edison notes that Barclays is for in house marketing only. The attention seems to be shifting internationally now, where they already have 2400 ATMs available for third party use.

As they said today, there are no dividends for now, they need to keep the cash surplus for expansion. I would imagine there is much more in the pipeline.

ic2..

[rivaldo] 01/12/2011 13:54

Good points dvda, though that depends on the assumption that IDG have rolled out their solution to the entire Barclays estate before the year end, which they may not have done - it's likely that they have though.

The original Barclays contract RNS didn't specify whather Braclays would use if for their own products or enabled for IDG's external client advertising - how do you know it's for Barclays own use? It's quite likely I've missed something :o))

[dvda] 01/12/2011 12:53

Results get a mention on the BBC website

[dvda] 01/12/2011 12:51

Rivaldo - there is no advertising revenue form Barclays as they are only promoting their own prodcuts. Based on the notes accompanying the results, it seems to me that all revenue from software sales to Barclays will already have been booked i.e.

Software
On a contract by contract basis revenue is recognised fully at the point of transfer of risk and rewards of ownership to the customer. For each contract, revenue is not recognised until it is probable that economic benefit will flow to the Group.

[rivaldo] 01/12/2011 12:34

Exactly, and I'm sure Arbuthnot's forecasts will be equally underpowered because that's what they always do as regards IDG.

Not only do their forecasts not include any assumptions for new software sales, which whilst rightly conservative seems highly unlikely imho, but the new Barclays contract only impacted last year's results for just over two months in terms of advertising and perhaps one-off licence fee income too - next year will have a full year's impact.

Plus the "major" new Canadian contract will fully impact this year. I'm willing to bet there's nothing in the forecasts for that either.

[druinsky] 01/12/2011 12:14

edison forecast - zero profit growth forecast next yr

[dvda] 01/12/2011 11:14

A major factor in the eps growth from H1 to H2 will have been the 4,000 ATM Barclays deal, which presumably would have generated one-off licence fee income and a lesser amount of recurring income in the form of annual maintenance fees. There's no guarantee that IDG can keep landing deals of such scale, so it's understandable that the likes of Edison take a cautious approach to forecasting.

[interceptor2] 01/12/2011 10:51

As I said, don't be surprised is Arbuthnot come in at about 1.5p or lower. I have shares in SAG which Arbuthnot cover, and last year their forecast were next to useless. Without going into detail here, you can see from some posts on the SAG thread how far behind the curve they were.

ic2...