Ideagen Share Discussion Threads

[rivaldo] 31/7/2015 10:22

Shares Mag are positive this week about IDEA:

"Ideagen eyes record breakers
Red tape software firm anticipates new business scale-up

COMPLIANCE AND RISK management software supplier Ideagen (IDEA:AIM) hopes to beat its biggest contract success to date with the help of public cloud platform, Amazon Web Services (AWS).

Ideagen’s software-as-a-service (SaaS) AWS-based risk and compliance toolset is
called Enlighten and analysts believe it will be fundamental to the company scaling up its new business victories, and should drive the 47p share price higher.

The UK Government remains committed to its ‘paperless NHS’ initiative, launched in 2013 under the previous coalition leadership, but largely driven by current conservative Secretary of State for Health, Jeremy Hunt. The aim is for a completely digitised patient records system by 2018, an objective that provides huge new business opportunities for Peak District-based Ideagen, as will expansion in other verticals, say analysts.

‘With the sales and marketing teams integrated into a single entity, management
anticipates opportunities to cross-sell the group’s capabilities into existing clients and win new clients in the aviation, defence, transport and healthcare markets,’ spells out Michael Larner, an analyst at IT consultancy website
TechMarketViews.

Ideagen’s biggest single win to date is the £1 million deal with the Doncaster and Bassetlaw NHS Trust secured on 2 October 2014.

SHARES SAYS:
Rising red tape remains a big growth engine for the small cap."

[rivaldo] 29/7/2015 13:49

The July issue of Techinvest is now available free on their web site, so here's what they had to say about IDEA, which is one of their Best Buys for H2'15:



"Ideagen (IDEA:40p) is another of our New Year Nap Tips for 2015 that has yet to achieve real traction. Most recent Update note was in last month’s issue (Page 5). This provided a positive update for the year that ended April
30. In particular, it confirmed that all is well with the two most recent acquisitions, EIBS and Gael.

The Company is a leading supplier of Information Management software to highly
regulated industries. Most recently, it was awarded a place on G-Cloud 6 by the UK government’s Crown Commercial Service, as a result of which it has already received its first, albeit tiny, clinical contract software.

Since the G-Cloud 6 framework was launched in 2012, public sector organisations have invested more than £467m in cloud based solutions."

[rivaldo] 28/7/2015 07:44

News:



"Ideagen plc works alongside leading accountancy firms to drive compliance with international
27 July 2015

Ideagen Group plc (AIM:IDEA), a leading supplier of information management software to highly regulated industries, is driving compliance with financial reporting disclosure standards by working closely with some of the world’s leading accounting firms.

Ideagen’s Pentana Disclose software is used by accounting firms and larger corporate clients to highlight non-conformance with accounting standards and other financial disclosure requirements. Pentana works by asking detailed tailoring questions to ensure that only directly applicable financial statement disclosures are considered when reviewing client financial statements. PwC, Ernst & Young and BDO are among eight of the UK’s top ten accounting firms who are ensuring regulatory compliance using Pentana’s UK disclosure checklists.

David Hornsby, Ideagen Chief Executive Officer, said:

“Ideagen has built an excellent reputation during the last decade, providing financial statement disclosure software to organisations such as PwC, Ernst & Young and BDO. Our software and expertise in this area has benefited some of the world’s leading accounting firms in protecting the reputation of their clients against the possibility of incorrect financial disclosures.

“We have a strong foothold in the UK, with eight of the top ten accounting firms and their clients relying on Pentana Disclose software. An increasing number of accounting firms are introducing the international version of the product to their global network of firms, presenting the Ideagen Group with significant opportunities for growth in the international accounting profession.”"

[glasshalfull] 26/7/2015 21:38

IDEA

Rivaldo has kindly posted the finnCap update which confirms results in line with expectations. Don't think there's any material changes that require me to update the header just yet.

RoCE indicates IDEA delivered 17.2% in 2014 & 9.6% in 2015. Probably due in part to the placing for Gael which only contributed a couple of months to the results while integration ongoing & fact that IDEA have historically retained significant cash on the b/s. RoCE is forecast to rise above 15% in this financial year and up to 16% in 2016/17.

Importantly, we should see operating margins rise in the next few years following the integration of Gael & removal of duplicate costs, and the delivery of synergies in product development & marketing.

I believe the management team are comfortable with the progress of the company and once Gael is properly bedded may consider further acquisitions, but at this time with the NHS trust landscape much improved following the hiatus that surrounded the General Election, I am more than happy with more of the same.

Congratulations to DH, management & employees.

Regards
GHF

[buffetteer] 24/7/2015 18:24

No surprises in the results .As Rivaldo says its on 16x which is probably about right if earnings are growing at 15-20% .Target is 4p in a couple of years.
My only issue is that the v.important Roce is v.poor and if you believe Terry smith who says that investing in anything with less than 10% is not increasing value and Charlie Munger who says a company tends to grow its value in line with its long term Roce over time .Thats a worry ! If there any accountants out there who would care to comment on why our Roce is so poor it would welcome ?

[rivaldo] 23/7/2015 15:45

Cheers hastings.

The current year P/E, using 2.7p EPS forecasts and stripping out the cash pile, is only around 15.9, which is pretty decent value for this type of company, particularly one with such high recurring revenue and good prospects.

Another acquisition is likely using IDEA's cash, and that could bring that P/E down further to only say 13 or so.

[hastings] 23/7/2015 08:24

A few thoughts that may of interest and currently pursuing a chat with management.http://www.privatepunter.co.uk/News/idea-22-july-2015

[welsheagle] 22/7/2015 21:13

Ideagen was one of Techinvest's half year tips, with the highest nap value of 9.

[rivaldo] 22/7/2015 11:53

Techmarketview are pretty positive:



"Wednesday 22 July 2015

Ideagen structured for success

ideagen logoFY15 saw revenues at Ideagen, supplier of information management software to highly regulated organisations, increase by 60% yoy to £14.4m with adjusted EBITDA growing by 43% to £4.0m. In Ideagen bedding in future success we outlined the steps taken to integrate Gael and EIBS into the firm; today Ideagen reported proforma organic revenue growth of 5.3%.

Revenues from governance risk and compliance (GRC) were up by 13% (FY14.9%) while funding uncertainty in NHS market curtailed revenue growth from that sector to 3% (2014: growth of 16%). By focusing on account management and customer retention, Ideagen achieved 53% recurring revenues along with a support and maintenance contract renewal rate of 96%. Maintenance and Support was the largest source of revenues at 49.1% (£7.07m) followed by software licences 26.3% (£3.78m), professional services 20.2% (£2.90m) and hardware 4.4% at 640K.

Going forward the Conservative Government's ongoing strategy to deliver a paperless NHS will drive healthcare revenues. With the sales and marketing teams integrated into a single entity, management anticipates opportunities to cross sell the group’s capabilities into existing clients and win new clients in the aviation, defence, transport and healthcare markets. Enlighten its SaaS Risk and Compliance platform on Amazon Web Services (AWS) will be key to bidding for larger contracts."

[rivaldo] 22/7/2015 07:19

Good results today, with 2.11p adjusted EPS beating (just!) expectations, though the 0.165p dividend is behind forecasts.

Lovely recurring income now makes up almost 75% of total revenues.

In particular, the outlook statement is VERY confident:

"Outlook

The new financial year has started strongly and we have seen continued progress across all of the Group's product and markets. Furthermore, in the wake of the General Election in May, purchasing patterns in the NHS appear to have returned to a more normal level following a period of uncertainty in the lead up to the Election. The Group has a strong pipeline of new business opportunities and continues to develop sales levels to existing customers which provides the board with confidence for the year."

[rivaldo] 16/7/2015 09:40

Cheers GHF, useful stuff.

We're now well into the 2015/16 year, which at 2.7p forecast EPS gives an ex-cash P/E of around 15.5/16, which imo is still good value for a company growing fast organically and by acquisition - and most importantly with an excellent management team and strategy.

[glasshalfull] 15/7/2015 22:03

Couple of updates…I have little time to post on the various bulletin boards these days, so apologise for the delay.

Firstly, confirmation that the header has been updated to reflect the current position of Ideagen.

Secondly, investors & those interested in IDEA may have observed that competitor KAINOS (KNOS) arrived on the market in a blaze of glory. Floated @ 139p they have subsequently risen to 185p with founders and existing shareholders selling down existing stakes.

Amongst the Kainos product set is their EDRM product “Evolve” which (I believe) is a direct competitor to IDEA’s “dart E-casenote” solution.

While both companies diverge in relation to their respective offerings, I’ve provided a snapshot of current valuations in relation to earnings as I believe KNOS may prove to be a decent benchmark on the value of IDEA moving forward.
There are no forecasts available for Kainos given proximity to IPO and blackout period that is enforced before broker coverage commences.

---

Kainos (KNOS) – Mkt Cap £218m (185p)

Yr ended 31/03/15

Rev £60.8m
PBT £11.8m
EPS 8.28p
PER 21.7

Net Cash £16.8m

---

Ideagen – Mkt Cap £82m (46p)

Yr ended 30/04/15 (Results released late July)

Estimates

Rev £14.3m
PBT £3.6m
EPS 2.1p (25% growth)
PER 21.9

Net Cash £5.25m

Earnings growth forecast +31% in 2016
Prospective PER 16.8

Revenue of £21.8m currently forecast for 2016
PEG 0.7

---

As you will observe, valuation metrics are fairly similar, both have excellent recurring revenue streams; considerable cash on the balance sheet and both Kainos Admission Doc and IDEA’s recent trading update bullish on outlook.

I’d hazard that IDEA may exhibit stronger earnings growth in 2016 following the Gael acquisition with integration providing further economies of scale, cross selling opportunities and an improved product offering across a number of verticals.

With a week until IDEA’s results, we’ve not long to wait for confirmation.

Regards,
GHF

[droid] 13/7/2015 14:22

Just bought my first toehold which I plan to add to. Hoping this is another JDG and ACAL with good organic growth and regular shrewd acquisitions.

[rivaldo] 09/7/2015 07:38

RNS - final results will be out on 22nd July, so only two weeks away.

[rivaldo] 07/7/2015 12:24

Looks like new highs a-coming.

News:



"Brussels Airlines Improves Safety and Efficiency of Operations Through Risk-based Performance Monitoring
Jul 6, 2015

BELGIUM’s flagship carrier, Brussels Airlines, has streamlined its quality and safety operations by introducing an integrated safety and risk-based performance monitoring management system.

The airline – which operates 49 aircraft and has 3,500 employees – has been working with Ideagen Gael Ltd implementing its Gael Insight suite of software solutions to transform safety and operational performance.

Gael Insight is a suite of products including Q-Pulse, Gael Risk and Performance Monitor which integrate to help aviation organisations achieve operational excellence through efficient safety and risk management and in depth performance indicators.

The suite has allowed Brussels Airlines’ Safety Services Department improve safety and operations as well as anticipate and manage risks – avoiding safety issues from occurring.

Adriaan Charlet, the airline’s Safety Services Manager, said: “Q-Pulse and the overall Gael Insight solution has provided us with much better efficiency in investigating safety issues. It has also provided safety related efficiencies as well as operational reporting benefits.

etc"

[cheshire man] 30/6/2015 15:05

Certainly opens us up to more exposure :-)

[rivaldo] 30/6/2015 14:28

IDEA presenting again tonight - all rather positive:



"David Hornsby, CEO of Ideagen, said: "These are exciting times for the Ideagen Group, including the integration progress we continue to make with our most recent acquisition, Gael. We have in front of us outstanding opportunities for future growth, and I am looking forward to communicating the Group's plans and growth strategy to investors at tonight's Shares Magazine event."

[rivaldo] 26/6/2015 12:33

Nice plug for IDEA in the IC:



"Another option is Ideagen (IDEA), which helps hospitals cut down on costly mistakes by digitising and managing their medical records. It recently inked a contract spanning eight UK research labs and won a £1m contract with an NHS Trust. Like EMIS and Servelec, it has broadened its offering through acquisitions. It snapped up EIBS, an intranet, portal and mobile specialist that counts 40 NHS trusts among its customers, and Gael, whose software is used by over 1,000 clients to manage governance, compliance and risk.

Management expects those deals to help drive a 59 per cent rise in full-year sales to a little over £14m, sending adjusted cash profit up 42 per cent. And there’s still plenty of room for growth, as only about 30 per cent of the UK’s 192 NHS trusts have a completely electronic patient record system."

[rivaldo] 24/6/2015 11:03

Hmmm. I was hoping the price wouldn't go up for a while so I could top up cheaply again :o((

[cheshire man] 24/6/2015 09:22

Prelims next month


(14/05/2015) "...confident that the group will continue to meet its growth objectives for this financial year and beyond"

[nickjoseph] 24/6/2015 09:12

Just starting to break out. Worth the wait and look impressive...

[jaws6] 18/6/2015 11:24

rivaldo
One more thing Regarding Bond helicopter crash,He was keen to go into tier 1 airlines deal if possible via Gail.

Result on 22 July so roll on till then.

[cheshire man] 18/6/2015 08:29

Thanks for that rivaldo,,,,:-)

[rivaldo] 18/6/2015 08:24

IDEA presented last night at Finncap in London and were extremely impressive. If I didn't already have shares I'd be seriously considering getting some!

More detail later hopefully (OT : ZOX also presented and were impressive imo. I hold shares in ZOX).

[cheshire man] 17/6/2015 11:40

Chart turning up nicely :-)