Interquest Share Discussion Threads

[s34icknote] 02/3/2017 07:00

Results 7 th march next week !

[king kong dong] 14/2/2017 11:36

How do we think the new HMRC IR35 rules coming into force that affects contractors working for public sector bodies?

I'm torn between there will be very likely less contractors working for the public sector (which is bad) with a lot of contractors looking for new roles in the private sector, which could be good for recruitment agencies.

Perhaps agencies win either way, as long as there is large amounts of movement.

[s34icknote] 14/2/2017 09:02

Not much posting here.Results due 7th march ?

[kemche] 28/12/2016 11:33

Hmmmm.....

[malc999] 20/12/2016 07:49

Just noticed that Sharescope and Stockopedia have updated their broker forecasts, so we now have FYE 31.12.2016 Rev 150 PTP 3.32 EPS 6.90, FYE 31.12.2017 Rev 176 PTP 3.70 EPS 7.60, FYE 31.12.2018 Rev 189 PT 3.70 EPS 9.62.

Best to ignore FYE 2018 for now and wait for the trading statement in March and if we are trading in line with managements expectations then this is clearly good value and should hopefully prompt the next leg up in the share price.

[kemche] 06/12/2016 14:00

saf, All fine thanks. UPL :)

Best of luck to you too.

[safman] 06/12/2016 13:55

Hope everything is good with you Kemche..

Still holding everything as i tend to do.. December for me, generally tends to be more of a buying time and around the beginning of the year.. I tend to see stocks shooting upwards..

So with advent of Trump.. whether peeps like him or not.. I'm expecting a blue start next year.. (I'm certainly no Trump fan..)..

Best of luck with all your investments..

saffy..

[kemche] 06/12/2016 13:48

saf, we must stop bumping into each other so regularly :)

[safman] 06/12/2016 13:45

@ these levels.. i certainly think its worth a dabble here..

With Jim M buying a few.. a bit of initial blind buying.. however there could be a sustained rise from here ..

saffy..

[philjeans] 06/12/2016 13:35

From the T/S last week;

"Looking forward the underlying technology markets that the Company serves should deliver structural growth in the medium to long term. As a result of taking action, InterQuest has seen an improvement in profitability since August and the acquisition of RDW, a permanent search business, in August 2016 has immediately contributed to profits and generated cross selling opportunities.
The Company has seen an improvement in average permanent fees and margins on professional contractors have also increased since 2015. The Company's Recruitment Solutions business has added one further managed service client and remains robust.
Gary Ashworth, Non-Executive Chairman commented:
"I am pleased with the progress that the new management team has made in restructuring underperforming divisions of the Company but acknowledge the challenges the business has faced this year. We continue to focus on building InterQuest to be the market leading "digital transformation" recruitment business."

[philjeans] 06/12/2016 13:04

Hold for 50p minimum.

Immigrants are pouring in here now, and will for the next two years! Until we finally leave the Eurozone.

We need skilled IT staff as never before and this company is going to clean up.

BUY for me.

[aishah] 06/12/2016 12:42

Could we be in play? Cheap morsel for someone looking for a bolt-on for in a high growth industry sector which ITQ serves.

[malc999] 06/12/2016 12:29

Some institutional buying coming in from the recovery funds, namely Helium and River & Mercantile crossing the 5% thresholds, although as I write the first of the sells are coming in which is not surprising bearing in mind we are currently at the 40p mark - round numbers always act at profit targets for some. The institutional funds wont have bought in with a 40p profit target so I would expect some more selling around the 40p mark from private investors before this starts rising again, with the next barrier being 50p and some more substancial selling.

Even at 50p the valuation is still attractive - I am guessing EPS of 8p for FY 2017 although it isnt much more than a back of the envelope estimation from me - we will find out more in the March 2017 trading update.

[philjeans] 05/12/2016 17:38

We'll see. Leave me to it now ta.

[effortless cool] 05/12/2016 17:00

Miles down to 23.6p, anyway!

[philjeans] 05/12/2016 15:50

Nice 10% rise on the day for starters.

Miles to go here.

[effortless cool] 02/12/2016 21:42

I thought there might be some value here after the latest price fall, so have updated my valuation model. I set a target PE ratio of 7, to allow for the recent record of underdelivery and the very questionable management competence. After adjusting for excess cash, debt, in-the money options and tax (but not for the RDW acquisition), I get a target price of 23.6p.

Hence I'm staying well out.

[effortless cool] 02/12/2016 14:51

The adverse cash flow in the last set of interims was mainly due to a big increase in trade receivables. To the extent that this reverts to a more normal level, there will be a corresponding cash inflow in due course.

The concern is that the interims don't give any indication as to why this line item has reached an historical peak; is there is a risk that there will be an issue with collecting all of those receivables?

[dusseldorf] 02/12/2016 11:08

The Shuffle Man - I'm mildly concerned, which is why I'll wait for FY to get a clearer picture. The indication from interims was not positive:

-- Net cash used in operating activities GBP2.9m (2015: net cash generated GBP2.8m)

-- Net debt, consisting of our working capital facility which we use to finance fluctuations in contractor levels, and cash increased during the period to GBP9.9m (2015: GBP6.9m)

a 40% jump in debt levels, could well be a fluctuation, but it's a big one. Given instis are not buying (AFAIK) I suspect a funding round/instrument may be under discussion. The future is bright, but would be better to have cash in reserve to weather any storm.

[the shuffle man] 02/12/2016 10:50

Is anyone worried about the debt position which at the interims was £9.9m

[dusseldorf] 02/12/2016 09:45

Am watching, progress on cost savings sounds good, but they run on empty in terms of cash reserves which is a concern. I suspect the profit warning with subsequent price decline may be a precursor to a fundraise, could be wrong - as they haven't highlighted cash as an issue.

[aishah] 02/12/2016 09:22

Agreed. Restructuring should now deliver returns over the medium term. Derisory mkt cap and PSR. Strong hold or add on weakness for me.

[philjeans] 02/12/2016 07:20

Jim Mellon adding and now has 5%.

Good value here.

[saj3] 01/12/2016 18:32

Most of it is already in the price