|saintloup:- Interesting set of accounts. Agree with you about debtors at approx 1 year of turnover - Would appear to be a very odd revenue recognition practice - Could be a significant number of bad debts concealed here BUT very significant increase in cash, eps, turnover, number of sites and margin.
On balance a very promising result. (imo & dyor)|
You want the NVUK thread. There's some knowledgeable contributors on there to answer your query:
|anyone follow this.. wots cash and debt levls?|
14 September 2005
Embargoed for release at 7am, 14th September 2005
Interim Results for the Period Ended 31 July 2005
Invu, Inc., the document management software provider, announces its interim
results for the six month period ended 31 July 2005.
* Revenues up 65% compared to H1 2004
* Recurring revenues from INVUCare increased 137% to #0.45m (H1 2004:
* Deferred revenues and sales provisions up to #0.85m (H1 2004: #0.63m)
* Maiden H1 profits recorded
* Overheads at 90% of turnover (H1 2004: 149%), demonstrating emerging
6 months ended 6 months ended
31 July 2005 31 July 2004
Turnover #1.68m #1.02m
Profit / (loss) for the period #0.07m #(0.58)m
Unrealised exchange (gain)/loss #(0.02)m #0.30m
Adjusted profit / (loss) #0.05m #(0.28)m
Earnings / (loss) per share 0.07p (0.61p)
Adjusted earnings / (loss) per share 0.05p (0.30p)
* 379 new customer sites, up 37% compared to H1 2004, including R K
Harrison, Sweet & Maxwell Group, Close Credit Management, Robert Brett
* 5,198 new end users, up 35% compared to H1 2004
* 16 additional accredited partners recruited
* Repeat sales recorded from Persimmon Homes, Balfour Beatty, Power
Networks, Connaught Plc, Severn Trent Water, Collins Stewart (CI) Ltd,
Wincanton, London Merchant Securities and 59 other sites.
Daniel Goldman, Non Executive Chairman of Invu, commented:
"This has been an excellent half year's trading for Invu, with sustained revenue
growth and maiden first half profits. Invu continues to meet market
expectations. Beneath the headline performance there has been continued growth
in recurring revenues, and repeat orders from existing sites, which remain
central to our strategy for long-term profitable growth and increases my
confidence in Invu's future."
David Morgan, Chief Executive, added:
"We have continued to build on the foundations that were laid last year: further
expanding our sales and marketing team, launching the "Invu Promise" which aims
to provide world class levels of customer support and service, investing further
in the development of new products, and inexorably building our brand
recognition. The demand for our products grows strongly, and we continue to
demonstrate our ability to accelerate away from any competition."
Invu, Inc. 01604 859893
Daniel Goldman, Non Executive Chairman
David Morgan, CEO
John Agostini, CFO
Financial Dynamics 020 7831 3113
The first half of our financial year has seen further strong revenue growth
accompanied by maiden first half profits. During the period the Group launched
its new customer support programme, Invu Promises, an initiative which has been
warmly welcomed by our partners and customers. In addition further progress has
been made in developing the partner channel. This channel will benefit greatly
from the release of Version 6, expected during the second half of the year. None
of this activity has distracted us from the core of the business, which
continues to grow strongly. We look forward with optimism to the second half.
Turnover rose 65% during the first half, year on year. This growth, with the
continued high gross margins, enabled the Group to record its maiden first half
profit. Trading continues to be strong both from new and existing customers.
InvuCare revenues (annual maintenance contracts) have risen by 137% to #0.45m.
These figures include a 73% renewal rate for InvuCare contracts beyond the first
year. Deferred revenues and provisions have increased by 35% to #0.85m.
At the core of our strategy remains the building of a successful brand.
Recognition that Invu is becoming the vendor of choice amongst the SME market is
the result of this strategy and will underpin our growth in the years to come.
Following our initial investments last year which included the Invu Partner day
and public relations campaign, we have followed this up with further significant
press coverage and partner marketing programmes with our dealers.
Building on the success of last year, we expect this year to be equally
exciting, with continued strong growth in all of the key areas of our business.
As usual, we would expect a strong weighting to the second half.
On behalf of the Group, I would like once again, to thank our employees,
accredited partners, shareholders and advisors, without whom none of the success
Non Executive Chairman
Chief Executive's Statement
Trading during the first half has been strong. Once again, all of Invu's key
performance indicators have improved during the period, including a 53% increase
in total customer sites to 1,662 (H1 2004: 1,087), and a 66% increase in the
total number of end users to 29,286 (H1 2004: 17,658).
We have also continued to consolidate our position within the SME channel. Many
of the partners accredited during 2004 have started to mature into successful
partners for Invu. As usual, the Group has taken an objective stance regarding
non-performing partners, resulting in the termination of agreements so that our
sales team can concentrate on those that are more successful.
Demand for our products remains strong and during the first six months on
average over 60 new customers have installed products each month in comparison
to 40 per month during 2004.
Turnover for the period was #1.68m (2004: #1.02m), an increase of 65% on the
prior year. Recognised recurring revenues from InvuCare increased to #0.45m
during the first half as compared to #0.19m in the half-year ended 31 July 2004.
Gross profit margin during the first half improved slightly to 93.5% of turnover
(H1 2004: 92.9%). This is well in excess of our internal benchmark of 92%, and
reflected a slight change in product mix.
Technical and support expenditure, which includes research and development, was
#0.29m for the year (H1 2004: #0.26m). We continue to maintain an active
development programme, covering upgrades of core products and product
innovations. It is the Group's policy to direct research and development
according to the needs of the market, and to ensure that every new product
adheres to our core brand values of ease of use, high quality and price
performance. It is important to note that we adopt the policy of writing off
research and development costs as and when they occur.
Sales and marketing expenditure increased by 48% to #0.62m (H1 2004: #0.42m), or
37% of turnover (H1 2004: 41%), reflecting our determination to invest in sales
and marketing in order to build both turnover and brand recognition.
General and administrative expenses (excluding exchange gains) were #0.63m
during the first half compared with #0.54m for the first half last year. This
now represents 37% of turnover (H1 2004: 53%).
Operating profit for the 6 month period ended 31 July 2005 amounted to #0.06m
(H1 2004: loss #0.57m). As ever, our second half weighting will have a
disproportionately positive effect on profits.
The net profit after tax amounted to #0.07m (H1 2004: loss #0.58m), giving
earnings per share of 0.07p (H1 2004: loss 0.61p). Net profit after tax adjusted
for the unrealised exchange gain is #0.05m (H1 2004: loss #0.28m).
Cash flow from operations has improved significantly as compared to the
corresponding period in 2004. Cash balances have remained consistent with the
amount held at 31 January 2005. Debtor days have fluctuated during the period
between 86 and 181 days but despite these fluctuations the group recorded cash
receipts of over #2.2m during the first half (H1 2004: #1.2m). Debtor days now
stand at 106 days and credit control remains a constant area for close
Creditors (excluding accruals and deferred revenue) of #0.61m (H1 2004: #0.72m)
were covered 5.6 times by current assets (H1 2004: 2.8 times covered). At 31
July 2005 shareholders funds were #2.29m compared to #0.9m at 31 July 2004.
The Group is virtually debt free and therefore effectively ungeared as at 31
Taking into account the ongoing investment in the business and accumulated
losses to date, the Board is not proposing the payment of an interim dividend.
Trading during the first half has been strong as reflected by the number of new
customers and partners. We now have an installed customer base of over 1,650
with almost 30,000 end users of our software. 66 existing customers extended
their use of Invu within their organisations during the half.
Amongst the new customers acquired during the half are RK Harrison, a leading
insurance brokerage, Close Credit Management, Sweet & Maxwell, a leading legal
and regulatory publisher and Robert Brett & Sons, a large construction materials
company. I am very pleased with the rate of new customer acquisition which
continues to be a key growth driver for the business.
The company has launched several new initiatives during the year including Invu
Promises and most recently Invu Finance, in addition to Partner marketing
programmes for lead generation and PR.
Invu Promises is Invu's customer service and support programme, which aims to
provide an exemplary standard of support within the software industry. This year
we have launched and maintained new levels of dialogue with our customers and
partners, with bulletins, satisfaction surveys, random support call reviews and
distribution of a regular customer magazine. In addition to these, Promises is
an initiative designed to affect every aspect of Invu's relationship with its
customers, during the sales process, after-sales care and of course ongoing
support and maintenance. The initiative allows Invu to remain close to its
customers and partners ensuring that we maintain an intimate knowledge of their
current and future needs.
Invu Finance has just been launched in partnership with Syscap, the UK's leading
independent IT finance provider. This will give partners and customers access to
pre-credit cleared finance to make Invu even easier to purchase and deliver
faster returns on investment. This will be Invu branded with on-line finance
agreements ready to download for easy purchase process.
Both Invu Finance and Promises have been designed to fit with and support Invu's
core branding, which is built on ease of use, high quality and price
Invu continues to grow the partner channel successfully and has become the
dominant UK channel player for document management products in the SME market.
We have launched a new initiative this year partnering with business solutions
partners in key application areas. These have included Draycir and CGA. Draycir
was awarded Sage Developer of the Year in 2004 and has a range of add-on
products for Sage. CGA is a provider of business and financial solutions and is
working strongly with the SAP channel in the UK. Both Draycir and CGA have
completed initial testing of joint product offerings for the Sage and SAP
channel. We would expect further partnerships of this type to come on stream in
the coming months, giving us access into these significant markets.
Holland continues to be the only foreign market in which the Group is active.
Growth in Holland was in line with the growth of the Group. In particular, our
new relationship with Panasonic Netherlands has shown early promise with a
number of customer wins and implementations.
Following the introduction of Version 6 of the core Invu product, the Group can
start planning the penetration of further overseas markets including other
territories within continental Europe, as localisation becomes an inexpensive
and simpler process. This will be on an opportunistic basis in the first
instance, where we feel that the local partner can add significant value over
Research & Development
The key goals for the rest of 2005 are the completed development of Version 6 of
the core products and the first commercialised product in the IPE range (IPE
stands for "Intelligent Processing Engine" and this technology recognises words,
numbers and layout of documents, automates indexing and launches routing of
documents with minimum human activity). Our expectation is for both of these
events to take place in the second half with a soft commercial launch at the
beginning of 2006. Both of these products have strategic importance for the
Group in the coming years and we will complete the strategic planning process
during the course of the second half. The impact of these products will start to
be felt during the 2006/7 financial year.
This has been our strongest first half ever and we have experienced growth in
all areas of the business. The second half has started well and I am
particularly pleased with our improving cash generation.
Invu is now the lead brand for document management software in the UK's SME
market and it is our intention to consolidate and leverage this position during
the coming months and years. We have a strong, loyal and growing customer base,
and they are serviced and supported by Invu's stable, intelligent and highly
Given the strong progress that the Group has made during the first half, I am
confident that this will be another very successful year for the Group.
Chief Executive Officer|
|2morrows the big day hold onto your hat|
|whats the difference between nvu and nvuk? thanks in advance|
|Rise ahead of results tomorrow|
I believe this was tipped in the IC on Friday...|
|this was from june last year incase you missed it from citywire
Published: 15:11 Monday 14 June 2004
By Joanne Wallen, Associate Editor
Invu has a proven software product, a growing customer base, a business model that resembles that of Sage and a seasoned management team with strong links to that company; and valued at just £9 million it has to be worth a second look.
Invu has developed a suite of document management software that enables users to scan in paper documents, retrieve them and route them to the appropriate place using workflow.
The company has taken advantage of recent technology changes to enable it to develop a system that can be sold 'out of the box' at low cost. More importantly, it prides itself on not selling document management but on selling real solutions to real problems for different industry sectors. 'We just automate the mundane,' chief executive David Morgan told Citywire.
For example, independent financial advisers (IFAs) have to be able to store and retrieve all customer data for compliance purposes. If a paper file happens to be out of the office when the compliance officers call, life can get very tough. The Invu system enables all documents to be scanned in and retrieved instantly.
IFA firms Millfield and St James' Place are two major Invu customers.
The company floated on AIM in January, having de-listed from the Nasdaq over the counter market. As we pointed out last month, this could be one thing holding the shares back, since there are currently two lots of listed shares, NVUK, the majority of the UK shares, trading at 9.25p, above the 8.5p placing price, and NVU, a residual of the US shares, which are at 14p. There are some 66 million UK shares and 30 million US, with the US shares held mainly by 'insiders.'
There is nothing inherently wrong about this, the US Securities and Exchange Commission (SEC) obliges the company to hold both lots of shares for two years after de-listing. But it may well cause confusion and put some investors off the UK shares.
However, that in itself could present a buying opportunity for those willing to wait a while.
The company is chaired by Daniel Goldman is the son of the late Sage founder David Goldman, and the managing director of Goldman Investments and non-executive director of BATM Advanced Communications. Non-executive director Tom Maxfield spent 13 years as a main board director of Sage.
The Sage connection is important for two reasons. Firstly, these are people who understand the dynamics of a business that produces boxed software that can be sold through a large reseller channel in large volume. Secondly, Sage has had to look outside of its core accounting software to protect its future growth path, and so far it is focusing on CRM (customer relationship management).
However, Invu's product would equally fit well within Sage, and this fact has almost certainly not escaped Goldman and Maxfield.
Chief executive David Morgan explained to Citywire how the company was spending the £2.5 million after expenses that it raised at flotation. He said the key now to build up the Invu brand, to grow the reseller channel and to boost the servicing of those resellers. The company has also employed three new business development managers, taking it to seven in the UK and two in Holland, and is recruiting a marketing manager to build demand from end users.
Invu now has 974 customers in several different vertical markets, including financial services and mortgage broking, construction, haulage and freight. It also has more than 100 resellers. In the first quarter the company sold new licences for 1,500 users, up 60% on the same period last year. And last month, the first of its second quarter, it sold 702, compared with 880 for the whole of last year's second quarter.
'We are all geared for growth now, whereas 18 months ago we were geared for educating users,' said Morgan.
For the year to 31 January Invu turned over £2 million, up 19% on the previous year, with losses after tax down to £130,000, or 0.36p per share from 1.45p per share last time. House broker Arbuthnot is looking for revenues for the current year of £3.1 million, profits of £300,000 and earnings per share of 0.4p, rising to £4.9 million of sales, £1.5 million profit and 1.6p of earnings per share next year. However, the broker thinks that given the increased marketing spend and the improving environment for the software, it is being conservative, and says that in this case the 'valuation measures would look even more compelling.'
This one will need a bit more patience, firstly to see whether the sales volumes do start to build significantly and secondly to let the US shares work their way through the system.
However as risks go, this one is definitely hedged by the quality of the management team and the fact that the product appears to be selling well. Worth a nibble.|
|doesn't really matter what he bought cos next year (i think) they all become the same - so this "confusing" issue will dissappear - it will also herald the start of coverage by a greater range of analysts and data tools like company refs. sit tight and enjoy the next 18 months.|
|yeah but did he buy NVU shares or NVUK???
All very confusing,
|INVU, Inc. ("the Company")
13 April 2005
The Company has been notified that on 12 April 2005 Mr Jon Halestrap, a Director
of the Company, purchase 48,750 common shares of nil par value (restricted)
("Shares") at 20.5p per Share. Following this purchase, Mr Halestrap is
interested in 148,750 Shares, representing 0.16% of the Company's issued common
|Very interesting this share!
How confident are people of the £2.3 m forecast profit in 07?
Could have a share price of £1.32 if this happens|
|they continue to do all the right things, been a holder since 11p. lots more to come in the next 12 months.
bit of coverage would be nice though!|
|Can somebody advise if this company has any connection with sage. Any info would be appreciated.|
NVUK represents the new shares issued in Jan. They are subject to US securitiues regulation S which means they cannot be dealt in the USA. NVU represents the original NASDAQ shares which can be dealt in the USA, although they have been transferred to AIM and delisted from NASDAQ.
It seems that there may be more liquidity in the NVUK shares. I am not clear why there is a pricing difference between the two, and at the moment at least the NVUK shares would seem to be the better buy. According to the listing particulars the NVUK shares can not be dealt under the CREST system for 12 months, after which they can; whereas the NVU shares can be dealt under CREST now. I suspect (but stress that I do not know) that both classes of shares will be amalgamated into the CREST system at the end of a year, and that the price differential will disappear.
|Confusing! Very confusing!!!
Might be NVUK as I think Reg S stands for regular shares... besides those are what the director bought recently... But you would expect the 3 letter epic to refer to normal ordinary shares while 4 letter codes refer to other securities.
Please advise if you find out anything.
|Help! What is the difference between NVU and NVUK? Which shares would a prospective buyer buy?
|Especially if you bought in at the issue price!
06 January 2004
6 January 2004
FIRST DAY OF DEALINGS ON
THE ALTERNATIVE INVESTMENT MARKET
INVU, Inc. ("INVU" or "the Company"), the document management software provider,
announces that its shares have today been admitted to trading on the Alternative
Investment Market of the London Stock Exchange ("AIM").
At the placing price, INVU is capitalised at approximately #8 million.
35,294,118 new Common Shares have been allocated to institutions and other
investors under the placing, raising the sum of approximately #2.47 million for
the Company (net of expenses). The newly issued shares represent approximately
37.5% of the Company's issued and to be issued Common Share capital upon
admission to trading on AIM. Arbuthnot Securities Limited is acting as
Nominated Adviser and Broker to the Company.
Commenting on the successful fundraising and flotation, David Morgan, Chief
Executive of INVU, said: "We see a significant opportunity for INVU to take
advantage of the growth opportunities in the document management market. This
is particularly true in the SME market where our products' ease of use and
affordability are proving attractive to companies. The funds raised will allow
us to continue to build our presence in this market, to expand our reseller
channel and to further develop the INVU brand."
This is now 71% above it's float price in 7 weeks!
Tipped by IC.|