||EPS - Basic
||Market Cap (m)
|Software & Computer Services
Real-Time news about Innovation Grp (London Stock Exchange): 0 recent articles
|inki: There was a fund raising for Quindell - a similar business, last November. Perhaps TIG will follow in the same direction. Look at their share price.|
|victor2: Arden partners have a 20 page buy note out today
with a 40p price target thinks the share price
could double within 2 years.|
|spbcscw: I can't believe this share price is still going up as it must be losing some contracts to the likes of QPP? Perhaps a takeover target ;o)|
|steamy001: When comparing Quindell against Innovation Group and Guidewire on FY12 figures on net profit alone
Give you a range where I see QPP will be re rated to very shortly if not then TIG and GWRE are well overvalued!!
Share price off QPP if valued as TIG on Net profit 0.40
Share price off QPP if valued as GWRE on Net profit 0.27
access to my figures is via https://docs.google.com/spreadsheet/pub?key=0Aqs4doStlDDbdHhWemdTanJDaHNEZVAwU3VhRTd5YWc&single=true&gid=13&output=html
Based on FY13 forecasts comparing Quindell against Innovation Group and Guidewire on FY12 figures on net profit alone
Give you a range where I see QPP will be heading after re-rating, if not then TIG and GWRE are well overvalued!!
Share price off QPP if valued as TIG on Net profit 0.54
Share price off QPP if valued as GWRE on Net profit 0.42
Not intended as advise, DYOR|
|yangou: Well it all depends what your here for, the spelling and punctuality or the fundamentals and the share price.|
|mechanical trader: Stock to Watch: The Innovation Group
By Edmond Jackson | Fri, 09/12/2011 - 00:00
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
A compelling aspect of stockpicking is that no matter how bad the business news, there is always some company somewhere, able to prosper. Industries change and technology drives fresh demand. You still need to pay attention to the economic outlook and apply tests for value, but turning a blind eye to shares will mean missed opportunities.
So it is interesting to note how the 6 December prelims (to end-September) from the Innovation Group (TIG), a FTSE SmallCap provider of outsourcing services and software to the global insurance industry, delivered a 54% advance in adjusted pre-tax profit to £15.1 million on revenue up 9% to £175.9 million. Operating cash inflow jumped 119% to £16.9 million. Management says the group is "positioned for continued growth in 2012".
The city consensus as shown by Company REFS expects normalised pre-tax profit to rise about 20% in the current financial year, for a similar rate of earnings growth, compared with a forward price-earnings multiple (P/E) of 15 times with the shares at 18p. A legacy of 940 million shares in issue means it doesn't take much price movement to affect the P/E, even for a firm capitalised at £170 million. There is also no dividend, having only been a fleeting payout of 0.45p a share for the 2007/08 year, which was axed to 0.05p then eliminated. So there are a couple of issues in TIG's financial profile telling you there is some history here.
Yet the outlook message is: "We feel strongly that we have now moved from being a turnaround business to a business delivering sustainable and profitable growth." One broker report after meeting the management post-results cites a revenue pipeline more than twice improved, year-on-year, and the software element increasing, hence better margins.
"Top-down" it looks as if insurance companies will need to continue deriving economies from outsourcing; the group's revenues comprise £152.8 million "business process outsourcing" and £23.1 million software. TIG's Insurer Claims version 7.0 software is described as well-received and expected to build revenue through 2012. Yet the 2008 financial crisis and its aftermath showed how care is needed towards the insurance industry lest the eurozone debt crisis spirals. Profits were hit by "financial turbulence and customer contract delays" despite good progress extending the brand internationally. This coincided with TIG needing to make its own changes towards better efficiency: while 2007/08 revenues grew 27% near £140 million, a £3.8 million pre-tax loss prompted a restructuring also changes among principal board members.
The company also needed beefing up financially to be able to meet the requirements of large insurance companies. TIG's large number of shares issued partly results from untimely offers: after the price dropped from a 30p range to low single figures with the 2008 financial crisis, in May 2009 TIG needed to raise £5 million via a placing at 8p a share and at end-2009 a further £21 million via a placing/offer at 10p.
At least this has helped put the balance sheet in a pretty strong position: at end-September debt was a low £10.4 million, if mainly short term, and outweighed by £43.1 million cash such that the net interest charge was £0.3 million against £10.1 million operating profit. Within £107.9 million net assets, £94.2 million represent goodwill and intangibles, although this is fairly typical of a business involved in software and acquisitions.
Customers are well diversified across global insurance markets, fleet and lease management firms, also in financial services. TIG is not directly exposed to consumers cutting back (renewing) insurance policies because they can't afford them during a recession. Nor should motor insurance reduce unless people are willing to break the law. Accidents and claims will continue and are probably less sensitive to the economy. So TIG's services have an essential aspect, dealing with over five million claims a year.
So this company ought to be reasonably recession resilient now it is restructured and the new management has shown what it can deliver. It is going to need a European catastrophe affecting the wider world to knock this company now, but in a stagnant environment it can prosper.
Brokers have remained supportive despite the post-summer price drop, and following prelims Panmure Gordon has upgraded its 2011/12 earnings per share target from 1.4p to 1.5p also its target share price from 27p to 29p. Given this implies a P/E multiple over 19 times I suspect it will be difficult to achieve in the 2012 environment, although TIG's risk/reward profile looks to weigh on the upside.
There may also be takeover prospects in the current time window before TIG's earnings track record gets better established and its shares return to the dividend list. A profile of operational momentum, good cash generation and aspects of earnings dependability ought to be attractive to an industry buyer.
With the results, a £13 million acquisition of Claims Services Australia was announced, providing similar outsourced motor and property claims management services for Australian insurers. This being the leading specialist outsourced claims management company in Australia, it is hoped that synergies will arise with TIG's current operation by offering insurers the benefit of a broader service offering also sales volume to the target's infrastructure. This kind of acquisition is likely to typify future deals, to enhance earnings.
The overall sense of a relatively attractive share is affirmed by some substantial trades on the prevailing offer price of 18p on 7 December: 1.8 million shares and four other trades of just less than one million shares each. There has not been any directors' buying as the shares retreated from 23p, although the chief executive owns nearly 2.6 million shares, the chairman 1.2 million and the finance director 0.7 million.
In conclusion TIG cannot be described as a truly defensive share while black clouds of the eurozone crisis hang over, but if a major storm can be avoided then it is one to follow in the weak economic environment.
For more information see www.innovation-group.com, and for more stocks to watch visit Edmond's archive.|
|mckenzie one: There is one thing for sure the share price
on 6th December will be 23p.
so a steady rise till then.|
|breliz: MC1 - conspicuous by his absence lately I wonder why ???
October 3rd 2011 TIG Share Price 19.75p
7 Oct'11 - 16:50 - 1083 of 1120
Indicators just starting to turn up.
The price will speed up next week
11 Oct'11 - 16:53 - 1085 of 1120
FOR ALL YE THAT SOLD,
BETTER START BUYING,
OR YE GET LEFT BEHIND
14 Oct'11 - 11:09 - 1087 of 1120
Looks like a move up
14 Oct'11 - 22:36 - 1088 of 1120
My 10 day money flow, shows money flooding in - I would say some people have been caught up in some of the silly selling.
THEY WILL BE SORRY ON MONDAY.
15 Oct'11 - 12:11 - 1090 of 1120
You don't seem to have any idea, how a chart works, i'm in there with out a care in the world.When you don't know about charts you just live in hope. Charts make patterns, TIG has made a bullish triangle,
that tells me that when complete like it now how far the move will be, If you have sold you had better get back in quick.
20 Oct'11 - 12:33 - 1099 of 1120
Its not the chart, its the Indicators that tell you where its going.
21 Oct'11 - 17:44 - 1101 of 1120
Your so wrong. TIG has at last hit the bottom trend line its been on since it was 3p,The top of the trend line is 50p, And to-day it has just set off on its way up.
THAT IS THE CHART TELLING ME.
25 Oct'11 - 16:03 - 1108 of 1120
GET READY FOR TAKE OFF. 50p on its way. O Yee of little faith.
25 Oct'11 - 16:50 - 1109 of 1120
ROCK ON TOMMY.
CHARTISTS VERSUS FUNDAMENTALIST NO CONTEST...
... Yeah Right !!!
November 3rd 2011 TIG Share Price 19.00p
Even people who bother to study the fundamentals, don't dare try to predict share price movements in the current economic climate, especially in the absence of concrete evidence. Yet the delusional Tea-Leaf readers continue to study their crystal balls, and spout their ever-more clue-less edicts.
We must surely have heard the last of him, though probably not, because the minute the share price rises to some willy-nilly predicted level, at some willy-nilly time in the past, according to some willy-nilly chart, that he observed at some willy-nilly time previous ... he will return.
Don't know why I'm assuming it's a He - more likely to be a she - women can never accept they are wrong (sorry dear!)|
|breliz: So the selling wasn't silly then and the sellers won't BE SORRY ON MONDAY (whichever Monday you had in mind) ... You really are a complete fool.
I'll try and paint a simple picture that even you should be able to understand
Tides come in then tides go out and leave patterns in the sand. Even if the weather conditions remain calm, nobody in their right mind would expect the patterns to be exactly repeated. If it rained the patterns would be affected, if it became windy they would be greatly affected, if there was a storm they would be unrecognisable and if there was a Tsunami there wouldn't be any bloody patterns to worry about.
Trying to predict tomorrow's Share Price based on last year's chart is a bit like trying to predict tomorrow's weather from yesterday's pattern in the bloody sand ... IT DOESN'T WORK.|
|bainsey: you idiot why on the far right column on the tig share price on advfn under the flags column does it say xd today ?|
Innovation share price data is direct from the London Stock Exchange