Idox Share Discussion Threads

[version5] 16/1/2014 11:21

Another high volume day, big buyer at 35p which is promising as I expect after the results the large funds have decided to buy after speaking to management. Anyone know what messages they are giving ?

[rivaldo] 15/1/2014 11:37

RNS out showing Liontrust increasing their holding to over 13% with 45.67m shares:



They're increasing quite substantially, since their last holdings RNS I can see showed them with 42.26m shares last May.

[battlebus2] 14/1/2014 13:44

IDOX plc

Additional Listing

Idox plc (the "Company") announces that 3,012,195 new ordinary shares of 1 pence each ("New Ordinary Shares") have been issued and allotted following an exercise of options by former employees and directors.

Application has been made to the London Stock Exchange for the New Ordinary Shares, which will rank pari passu with the existing shares in issue, to be admitted to trading on AIM, and admission is expected to become effective on 16 January 2014.

The Company's total issued share capital after the admission of the New Ordinary Shares will be 353,142,251 ordinary shares. The Company holds 52,000 shares in treasury. Therefore the total number of ordinary shares with voting rights in the Company is 353,090,251. This figure of 353,090,251 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

-ends-

[rivaldo] 14/1/2014 13:40

:o)) Yep, over 2.2m shares traded today including those four 440k's.

A positive article overall here about IDOX, notably:



"Initiating coverage, with the shares at 32.5p, recently appointed house broker to the company, N+1 Singer, noted that "we have set our forecasts conservatively and believe there is significant scope to re‐rate from the current 12.6x cal'14 P/E rating". The broker notes that the rating "is on a c40% discount to its peers and given our view that Idox's challenges in 2013 have and are largely being addressed, we see these multiples as attractive. A conservative DCF approach yields a 48p intrinsic value, with further upside potential with strong execution of its strategy"."

[pj 1] 14/1/2014 13:28

Just for the record those x 440k lots were NOT mine.......

[pj 1] 14/1/2014 11:28

LOL
Lets hope I have the Golden touch..!!!!

[m1das_touch] 14/1/2014 11:11

Not that we're desperate for you to buy or anything PJ 1 ;)

[pj 1] 14/1/2014 11:03

lol
I noticed
14400 on the way..

[rivaldo] 14/1/2014 10:57

Moving nicely above 34p now PJ1....

[pj 1] 13/1/2014 11:14

Yes, good Co this, with prob. short term poor trading which Management seem to be getting to grips with. Looking for it to hold above 34p and I'M back in, subject to funds elsewhere.

[rivaldo] 13/1/2014 11:09

Beaufort Securities say Buy with a 44p target:

[techno20] 10/1/2014 16:41

Concur MT - idox has been part of my portfolio on and off for a decade, albeit I sold too early.

I have significant faith in RK-C, so with him back at the helm I think we'll see a steadier stream of new business coming through in 2014.

Pleased with the market's response to the results - ESP the newly initiating brokers.

Don't expect fireworks here, but think we'll see a steady recovery in the share price over coming months.

Topped up earlier.

Techno

[m1das_touch] 10/1/2014 16:21

I've bought back in today, as from the latest results management appear to have taken sensible action to turn things around and the final outcome for the year was far better than I was expecting. This has good recovery potential at these levels in my view.

Idox has served me really well in the past, I was a holder from 17p upwards and fortunately got stopped out at 57p, banking a very healthy profit and avoiding the share-price slump. (If only I'd done the same with Silverdell - i.e. locking in a nice profit, rather than getting wiped out!)

Aside from the troubles of the last year, Idox has a really good track record of growing profits and generating cash. I'm quietly confident that it can be a winner once again over the next couple of years.

[version5] 09/1/2014 14:04

I'm new to this thread but sold out of this earlier in the year at 47p after the AGM statement as the forward picture provided was just too unclear. After the June and November warnings it looked like it was slowly imploding but actually the final results are not half as bad as the share price drop indicated - it is just a shame that expectations got ahead of reality. By their own admission this was an annus horribilis yet they delivered only marginally lower EBITDA of £15m, 26% margin and only a slight drop in underlying revenue - there are plenty of companies out there on higher valuations who would take that result. So I think this is far from broken and with clear momentum coming out of the second half and managements track record of bouncing back from disappointments I've just bought in again and see it going to 40p in fairly short order before pausing for further evidence of delivery. IMHO

[rivaldo] 09/1/2014 13:55

Agreed. Good also to see the respected Richard Holway Techmarketview blog is optimistic that trading is turning upwards at IDOX:



"Wednesday 08 January 2014

Idox: pulling through a year of change

The year-end numbers only tell part of the story of document management software provider Idox, a company that has undergone significant change and a reality check.

After a stellar 2012, expectations were unrealistically high going into 2013 and the punishment came in H1 (see here). Major opererational and management changes were needed but with CEO Richard Kellett-Clarke out of action for much of H1 they were delayed. By H2, the CEO was back in full swing, management had been strengthened, complexity reduced (including reorganising from 4 divisions into 2 and selling off the non-core TFPL recruitment business), and many of the integration issues within the EIM division resolved.

Performance across the year reflects this background. Full year revenue (to October 31 2013) from continuing operations was up a modest 3% to £57m, with adjusted EBITDA down 9% to £15m and PBT down 5% to £7.5m. Talking with Kellett-Clarke, it is clear that H1 was effectively a write-off as the company managed its way through its many issues but there was a real improvement in H2 - revenue was up 8.5% yoy with profits up 10%. Given the level of disruption, managing to deliver revenue growth for the full year was something of an achievement especially as the business mix is also shifting towards recurring revenue from hosted and managed services within the public sector business.

There is plenty of work ahead but its prospects are improving. Although the EIM segment is strengthening and deals deferred from 2013 have been signed in FY14, the challenge is converting the existing pipeline into deals in a predictable manner, although incremental spending from existing customers will help. In the public sector, the drive to cut costs is still a pressure but Idox has credibility within the planning segment and initiatives such as its joint marketing deal with Calderdale county council are opening new opportunities within areas such as revenue and benefits and social care. There is a lot of positive activity within Idox, so it pays to look behind the numbers."

[banking1] 09/1/2014 12:00

H2 PULL THEM BACK INTO A RESPECTABLE YEAR FINISH - GIVEN THE CONTRACT WINS SINCE, I THINK 2014 COULD BE A GOOD YEAR FOR THE COMPANY - 40P WITHIN 3 MONTHS IMO. LONG HERE AT 33.53P

[lignum] 08/1/2014 12:11

I'm a long term holder of Idox and generally I liked the tone of the RNS - focus shift towards operations and away from corporate speak.

However EPS is not reliable as for 2 years now it has been distorted by deferred tax credits of £2.3 / 2.4m. These are non recurring and they will need to make good these amounts from operating profit for EPS to 'stand still'.

Underlying ebitda is c £15m and with an enterprise value of around £135m they are not cheap. However there is a good business here. They need to hire a CFO, stop screwing around with their tax accounting, get their costs down (what is the value of leases that are ending this year?), stop acquiring businesses until the existing ones are fully integrated and focus on bringing in the new contracts that will be needed to support 44p. Having said that I believe there is more upside than downside to the share price

[sammy_smith] 08/1/2014 11:56

LISTEN: IDOX - Final results

Click the link below to listen

[rp19] 08/1/2014 11:15

Good to see you here Rivaldo - you are pretty active on a couple of other threads that I follow; KENZ (holder) and ACM (non-holder).

[rivaldo] 08/1/2014 11:07

I've bought some IDOX for the first time ever now.

The results were evidently better than expected, and the outlook appears promising. Basically IDOX appear to have sorted themselves out, with a good H2.

Adjusted EPS of 3.53p appears to be much better than forecasts, which ranged between 2.5p and 3.2p, though the tax credit obviously helped in this respect. Plus there's a 0.7p dividend.

I note that Finncap have initiated coverage today with a Buy and a 44p price target:

[phillis] 08/1/2014 09:24

Good old tax!

[rp19] 08/1/2014 09:11

Would agree with you there Techno20. Once investor confidence returns the share price should improve.

[techno20] 08/1/2014 07:26

At first glance results read well. More upbeat on prospects than I'd expected. Hopefully provides a platform for share price recovery during coming months.

Techno.

[rp19] 22/12/2013 12:21

New contract - Pan-Ayrshire agreement for provision of various election services.

hxxp://tenderise.eu/notice/431274-2013