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|Software & Computer Services
Real-Time news about Intechnology (London Stock Exchange): 0 recent articles
|pbracken: You can stay with the company, SundayT, as a shareholder in a private company. The premium is the sweetner for those who choose not to. Wilkinson will argue that the share price will stagnate if ITO remains a PLC, but will flourish if it is delisted. I gather that investors will be given 'windows' (every six months) to sell their shares following delisting.|
|pbracken: "This business motivates me," he says, noting a share price around 30p. "I can see a share price of £1.50. "
A quote from Wilkinson's interview with the FT.|
|pbracken: Thanks for the post, chris. I only hope we get a chance to share in the spoils before (if) PW makes a bid to take it private. The Interims will be a time to flag-wave and spur on the share price - I mean, ITO has not exactly communicated its recent successes, has it?|
|pbracken: lburby: re TRT; I just felt the share price had got ahead of itself in that it was pricing-in revenues that won't be seen for a good while yet. I've scaled back my holding and await some substantial developments beyond those already announced.
Very positive on its propsects, though.|
Thanks for the article- it still tells me absolutely nothing about the actual fit today with current networked managed storage services and with a euro 200K? turnover I can't see any contributions to positive market share price coming soon.|
|thailand43: philjeans- I'm referring to the logic/ fit of the purchase to ITO, if in fact it is anything more than old mates helping each other out with cash at hard times that I suggested in my recent post. I couldn't access your linked SE announcement but maybe it was similar to the AFX of the 25th:
"InTechnology buys 80 mln Mobile Tornado shares for 4 mln stg
LONDON (AFX) - InTechnology PLC said it bought 80 mln shares in Mobile
Tornado Group PLC for 4 mln stg.
The purchase will be financed from InTechnology's existing cash.
InTechnology said its investment in the mobile data software company will
complement the activities of its managed services unit.
In the six months to December 2005, Mobile Tornado made an operating loss
56,951 stg and had net assets of 868,441 stg, of which 616,747 stg was in cash."
I'm making the point that ITO states that the investment will,"..complement the activities of it managed service unit." This explains nothing and when I say that the bid is 3p it would probably be nearer 0p of ITO tried to dump the stock and run so we may have blown all 4m on a purchase that looks very questionable at this stage.
Believe me that I am on your side as a holder but if it is not profit warnings that plague the ITO share price it is poorly justified/ executed strategies that may include this Mobile Tornado deal.
We are just recovering from
-Early expansion into Europe with managed storage and costly subsequent withdrawal
-Purchase of Allasso security distributors in Europe and recent costly retreat
If only they would stick to successfully optimising sales and development of the core managed storage services, hopefully soon without the distraction of the distribution business, then I think the share could fly.|
|philjeans: 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: Rumours persist that ITO may flog its Dirstibution arm - now THAT would be a shot in the arm for the share price.
|pbracken: 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: You make a fair point about the sale price of the european business, she-ra. But it is a good business, and better management of it will pay handsomely. Because of its potential, I don't think ITO will give it away. Also, the price I calculated is nowhere near twice the current price of the group company - that would be daft.
Your comments on the debt and your description of the company as being on life support are much less valid. Net debt stands at around £25m and the interest payments are easily seviceable from operating profit.
The 50p share price target is achievable in the short term.
As regards Spring, I have only recently taken up a small trading position; like ITO, it could prove to be a lucrative recovery play.
Edit: as for your remark about reality - the market priced these at 350p a share a few years back, when they were less than half the size and when their managed services operation was much smaller still. So, the market can get it wrong, she-ra - it can place too high a price on a stock, and - as is the case today - too low a price. I suggest you fill your boots whilst you can...|
Intechnology share price data is direct from the London Stock Exchange