Intechnology Share Discussion Threads

[pbracken] 06/10/2006 11:22

philjeans: your figures are very close to those forecast by PANMURE (who has a BUY recommendation on the stock)

Its forecast is for £8.48m this year, or 4.21p per share, rising to £10.54m in 2008 and £12.33m in 2009.

ITO does represent one of the best BUYS on AIM, no question.

[philjeans] 05/10/2006 10:07

PB thankyou kind sir.

Last year the underlying profit from continuing operations was approx £6M, before exceptionals and losses from the european business (since sold for £19M cash) which made the historic P/E about 9.

If we get £8M this time, at current share price of 38p, the p/e drops to around 6.5.

That's too low for a now tightly managed, well established and growing IT company with no debt and ambitions.

Any thoughts on the numbers?

[pbracken] 05/10/2006 07:44

well done, philjeans - a decent summary, methinks. I suspect the UK distribution division may be sold - not soon, perhaps, but next year when it will become clearer that ITO intend to concentrate on its managed services business and VOIP.

[philjeans] 04/10/2006 18:11

Looks a good bet for a sustained rise into the interims expected next month - losses from Europe now extinguished and re-organisation mostly complete and previously posted.

Positive report at the finals in June and AGM statement confirmed Q1 on track.

Should be 50p now and will get back to 80p when profits confirmed.

I've started a new thread to try and precis recent history.

[philjeans] 04/10/2006 18:04

ITO is a 23 year old, well established AIM listed company providing IT solutions in all its forms to businesses, but focussing on data storage. It has 360 staff, now virtually all UK based.

Basically, despite margin pressure, the UK part is profitable but they got into trouble with the european side, consistently losing money and wasting management time and focus. The euro division was sold in March this year, freeing up much needed human resource and capital - the net proceeds of approx £19M will/has cleared all uk borrowing and there is £12M net cash already in the balance sheet.

The business works very closely with IBM, Nortel, Symantec, Check Point and has won many awards. Turnover is substantial at £215M and management are now determined to gain more profitable new business and increase margin on existing/renewal contracts - something that is already happening.

With the euro business sold (it lost them £9M last year!) the turnaround in profit this year will be significant - last year's figures also included exceptionals of several million for complete re-organisation of the various uk sites and divisions. Debt servicing has also now disappeared.

The share price has failed to recognise the full impact of the cleaner, sharper UK business and continues to reflect the difficult and loss making past few years. A very positive report from the Chairman in June was followed up with an AGM statement that Q1 results were in line with expectations.

ITO have a small but growing VOIP division and last week spent £4M of their cash pile buying 43% of Mobile Tornado, an aim listed mobile data software company with good growth prospects to "complement the activities of its managed services unit".

A good time to buy ITO I believe with the bad news already dealt with and the better times ahead, not yet fully revealed, or anticipated in the current share price.

Directors hold large stakes - Peter Wilkinson CEO 57%

I hold. DYOR etc.

[pbracken] 03/10/2006 08:55

Rumours persist that ITO may flog its Dirstibution arm - now THAT would be a shot in the arm for the share price.

[philjeans] 27/9/2006 17:50

OK but it could still be a bargain, for all it's incest!

ITO now cash rich and we've bought 43% of a distressed business for peanuts; if they can get the deals they suggest, this could just be a very shrewd investment.

[thailand43] 27/9/2006 17:40

Hoping for news from ITO and thought perhaps Mobile Tornado purchase was a pointer but OH NO.. just ex founding ITO director Chris Akers tapping up fellow founding director Wilkinson for emergency funding...

[woody1869] 21/9/2006 13:57

I have been with ITO for some time now first, herd about it off a friend and bought in

Sat on it for ages and I am down quite a lot but think it is going to make a move soon

[philjeans] 21/9/2006 08:27

PB- purely by chance! Noticed the 5 year graph and did some research.

I honestly believe this is an undiscovered gem and would appeal to many investors if we could bring it to their attention.

May start a new thread if I can find the time!

[pbracken] 21/9/2006 08:03

pj: How did you get to here to about ITO?

[philjeans] 20/9/2006 19:14

pb; yes - bought a small wedge today and may do so again at this price.

Need to tell a few punters about this one I think.

[pbracken] 20/9/2006 16:28

That your 10K BUY today, philjeans?

As you might expect, I agree with your analysis - just hope Wilkinson doesn't take it private again...

[philjeans] 20/9/2006 15:20

Just a superb recovery story here; if you believe it, you'd better buy soon.

Sold the loss-making overseas bit; kept the profitable UK side where they are improving margins and cross sales; debt being virtually cleared; now cash rich.

Huge opportunity to get in whilst share price still languishing on the floor after trials of european division wasted cash and management time.

Completely overlooked, unknown and abandoned by investment sector.

Bargain!

[pbracken] 15/9/2006 13:41

4% up; talk of consolidation; news on the way?

[13579] 14/7/2006 22:12

Thought you would fall for it Bash.

LOL

[Abuse team] 14/7/2006 22:04

Post removed by ADVFN

[pbracken] 05/7/2006 10:18

Well, the re-rating is, as expected taking some time! New BUY note issued by Panure might help, but I remain resigned to waiting for the half year trading update for any significant change in the share price

[pbracken] 09/6/2006 07:43

Generally, the FY results are good - much improved cash position, improved levels of operating profit, and a bullish outlook.

Of course, because ITO have disappointed before, the markets will need some proof that propsects have indeed turned for this company, so I expect that the re-rating will take some time time.

However, the share price should recover to well over 40p within 6 months and thereafter - depending on whether subsequent trading updates confirm the story told yesterday - to at least 50p.

My longer term price target (within 2 years) is well over a quid.

[pbracken] 07/6/2006 11:11

Results out tomorrow. ITO will obviously hit its revised forecasts; question is, will it raise guidance for next year based on a likely improvement in current trading. If it does, we'll fly; anything cautious and we'll be stuck here for a while yet...

[thailand43] 11/4/2006 14:16

If we drop from here, for sure I will be adding.

[affc21] 04/4/2006 19:22

Pbracken,

Nice find.

[pbracken] 04/4/2006 10:38

LONDON (AFX) - Shares in InTechnology PLC ticked higher midmorning after Panmure Gordon & Co upgraded the stock to 'buy' from 'hold', dealers said. The broker added that InTechnology has announced the completion of the sale of its Continental European distribution business to Magirus AG. The consideration includes repayment of the inter-company loan which the broker says is positive for equity valuation.

It increased its target price to 45 pence from 35p. At 10.08 shares in InTechnology were up 0-1/2 pence at 41. [e-mail]