||EPS - Basic
||Market Cap (m)
Real-Time news about Inspicio (London Stock Exchange): 0 recent articles
Here is the bit which refers to INP.
The article isn't subscriber-only, I'm surprised to find:
Inspicio started out as a turnround story for the core business, Inspectorate. Inspectorate is an industrial testing business. But management at Inspicio knew the business well prior to acquisition. The team has delivered its objectives for improving margins. The other plank in the strategy has been a "buy and build" approach to broaden the base of the company into other testing areas, including environmental testing. It now also has a stake in a drug and alcohol testing company.
The acquisition strategy has worked well, but it involved the issue of substantial amounts of equity. Until recently this had held back the progress of the share price. Management has made it clear to institutional shareholders that this phase in the company's development is now over, and the focus now is going to be on building margins. The result has been a marked revival in the share price. I now have a useful profit on the shares and look forward to it growing even more.
|jonwig: Independent article:
Our view: Buy
Share price: 112.5p (unch)
In less than a year Inspicio has gone from cash shell to major player in the global testing and inspection market. It has done this via a series of acquisitions, and yesterday came news of two more - in Portugal and Australia.
By Inspicio's standards these purchases were small. However, the slew of deals completed by the group in the 12 months has led to worry that its management have lost focus on its key task of turning around the Inspectorate business they bought in October, and this has weighed on the group's shares.
Inspectorate operates mainly in the oil and mining industries, checking the concentration of hydrocarbons or the quality of precious metals.
When Inspicio bought the business, it promised to make it more profitable by cutting costs. Its aim is to increase profit margins at Inspectorate from 1.7 per cent to 8 per cent by 2008. Many peers enjoy margins of over 10 per cent. If the group's management achieve this, profits should take off.
Analysts predict last year's £2.7m loss at Inspicio will be turned into a profit of £4.3m this year, rising to £11.7m in 2007 and maybe reaching £18m in 2008. This puts the shares on a forward rating of under 13 times.
|simon gordon: Hi Jonwig
I am attracted by the potential of INP yet I think the valuation is pretty full in relation to other growth stocks I am investigating.
If the share price was £1.00 I would be more likely to be a buyer.
*They are carrying 20m in debt and if the turnaround hits a bump it could knock the shares.|
|simon gordon: This looks a very good deal. I'm surprised the share price has not gone up much further. My first number crunch puts INP on a P/E of 9 for 2007.|
|robsy2: Thank you jonwig for the words of encouragement.
In the spirit of sharing ideas I add the following;
I picked up on this company through an artcicle in IC about cash shells. This one was promoted by a company called Marwyn (see below) . Thye have a good philosophy and a good track record,so I had a dig around and ended up here.Had a closer look at the company and the management involved and got quite excited.
If anyone is interested another couple of Marwyn promoted companies that look solid propositions are LNG and AUG.
Marwyn's record has been particularly strong over the past two years, with shells such as Zetar and Talarius coming to the market and making a series of deals. Of the six shells it has brought to the market over the past year, all raised more than £3m at float and five have already done deals.
The quality of Marwyn's approach is illustrated by the share price performance of the likes of Zetar, up from 120p to 335p and Talarius, up from 97p to 185p since the beginning of last year.
The Marwyn shells usually float once they have a potential deal lined up, as managing partner Mark Watts explains: "We won't put a vehicle up unless there are strong enough opportunities. Our deals are set up on the back of the management, who will then sell their business into the vehicle and we retain a stake."|
Inspicio share price data is direct from the London Stock Exchange