Kbc Adv.Tech. Share Discussion Threads

[gucci] 20/3/2015 13:03

moving up again

[gargoyle2] 20/3/2015 12:59

Interesting presentation by Andrew Howell. 6 weeks old, and maybe nothing really new in it, but he emphasizes pretty well in my view the change in focus that KBC has been going through the last few years. Unfortunately his presentation slides are not visible on the video. Apologies if this has been posted before.

[jashunter] 20/3/2015 11:52

Mentioned as a buy by NT yesterday

[gucci] 20/3/2015 10:29

managed to add 2.5k
mm not happy to part with shares online

[asusasus] 20/3/2015 10:26

Huge rerate coming. Way undervalued.

[gucci] 20/3/2015 09:58

looking pretty good

[apad] 19/3/2015 10:39

50,000 bought at 92p today - significant purchase.
PER of 10 is low given the results.
Back up to 120p seems reasonable, even given the oil sector sentiment.
apad

[paleje] 18/3/2015 14:57

ST articled these today, his conclusion below. Apart from it, hasn't the Chancellor today announced tax concessions, some backdated, to keep more North Sea oil production going and doesn't that go in KBC's favour too:-

Following the earnings beat yesterday, and factoring in the robust order pipeline, analysts at broker Cenkos Securities and research firm Equity Development predict that KBC should be able to increase underlying pre-tax profits by 10 per cent to £10.5m this year. On this basis, Cenkos expects adjusted EPS to rise by around 5 per cent to 9.8p. This means that once you adjust for the latest net cash figure of £15m, or 18p a share, KBC's shares are being rated on just eight times last year's post-tax earnings, or half the average rating of the small-cap software sector.

That's a harsh valuation in my view and one that justifies maintaining my long-term buy recommendation on the shares when I initiated coverage at 69p ('Fuelled for growth', 5 May 2013). I last updated the investment case at around the current level ('Energising growth', 8 Dec 2014). In fact, I still believe that a fair value is nearer 165p, or almost double the current share price. That's because, based on a further increase in net cash to £19m, as both Cenkos and Equity Development predict, the shares would still only be rated on a cash-adjusted PE ratio of 14 for fiscal 2015 if the share price was to double. Trading on a bid-offer spread of 85p to 87p, I continue to rate the shares a buy.

[paleje] 17/3/2015 08:16

Equity Developments quick off the mark this morning:-

KBC is a leading independent provider of simulation software (70% of FY14 profits) and consultancy (30%) to the oil/gas sector. Its sophisticated technology enables customers to optimise their capital and operational spend - effectively allowing them to get 'more bang for their buck'.


It is common knowledge that energy stocks have had a tough time of late due to the crude price plummeting from $110/barrel in June 2014 to below $55 today. However, what's less well known is that within this bloodshed, the oil refiners have actually held up pretty well. Very importantly for KBC as around 90% of the firm's revenues are derived from downstream petrochemical plants, iinsulating KBC somewhat from the worst of the industry's belt tightening.


In fact, demand for differentiated services was the message from this morning's prelims where KBC posted a 'blowout' second half: a record £88m order book (up 40% from £63m in June) and an H2 Book : Bill ratio of 1.25


Furthermore, £40.5m of the backlog is expected to flow-through into 2015 which, along with several consultancy wins since the period close, provides good earnings visibility for this year and beyond.


Turnover jumped +16.7% to £76m with adjusted EBITA up 15.1% to £10.0m (13.2% margin), driven by a record year in Technology (or software), and augmented by a strong performance from Consulting. In turn the dividend was confidently increased 10% to 1.1p


KBC has "started 2015 well" with a number of key consulting wins in the first two months and we maintain our 2015 adjusted PBTA of £10.5m which means KBC shares trade on a mean 10.7x 2015 PE (or just 8.3x if the cash is stripped out). Consequently we reiterate our target price of 162p/share versus the current 85p level.

[lennonsalive] 17/3/2015 07:31

PBT up 13% at £9.5m, Divi up 10% at 1.1p, Strong year end pipeline of contracted work, up by 13% to a record £88.0m

[anumidium] 15/3/2015 20:05

Kestrel buying supported the price before the closed period. Quite sure we are worth more than 120p but the growing working capital position, high tax charge and history of disappointment all count against KBC as well as general oil price related weakness. Hopefully Kestrel will resume purchases post results day. In the meantime I have increased my position...

[p1nkfish] 13/3/2015 12:02

Something I heard from a source I respect.

The close to $100 oil phase made the whole chain from drill to fuel pump fat and happy and inefficient. The recent drop has shocked the whole chain and capex on efficiency improvement is being prioritised.

You can guess the rest.

[gargoyle2] 13/3/2015 05:06

The trading statement at the end of January was very positive, with 2014 results stated to be in line with expectations. They also had a strong second half of 2014, so unless trading has deteriorated markedly in the last 6-7 weeks (i.e. since the TS), I'm not expecting anything disastrous in the results. Business in the Middle East continues to be strong, as far as I'm aware.

[gargoyle2] 13/3/2015 05:06

The trading statement at the end of January was very positive, with 2014 results stated to be in line with expectations. They also had a strong second half of 2014, so unless trading has deteriorated markedly in the last 6-7 weeks (i.e. since the TS), I'm not expecting anything disastrous in the results. Business in the Middle East continues to be strong, as far as I'm aware.

[texaspete2] 12/3/2015 21:05

This could be why:Soco International plummeted after the oil and gas group said profits sank to just $14m in 2014 from $104.1m the year before on the back of challenging market conditions.

[apad] 12/3/2015 13:06

Yup, looks like a tree shake.
I've still lost a lot of confidence in KBC though.
apad

[apad] 12/3/2015 10:09

A lot of small sells - I've been unable to find anything else.
apad

[paleje] 12/3/2015 09:40

IC were pretty positive on them not long ago, last trading update didn't suggest any nasties and Equity Developments, admittedly paid for, target over 160p so hopefully just sector jitters, seem good value.

[sheikh al utrati] 12/3/2015 09:15

..and MMs fishing for SLs at this stage as well..

[sheikh al utrati] 12/3/2015 09:09

I guess it's purely due to O&G sentiment.. Just being dragged down alongside whole bunch..

[amt] 12/3/2015 09:06

Will be interesting to see, if they are bad then odd that the market seemed to know.

[paleje] 12/3/2015 09:04

Why are these selling off, they are well below Kestrel and Chairman's most recent buy prices, are people expecting something nasty next week?

[apad] 06/3/2015 11:57

KBC Finals on 17th, earlier than the estimated date.
apad

[apad] 02/3/2015 18:14

25 March is still an estimated date for the Finals. Lax?
apad

[apad] 12/2/2015 09:43

…and their "the industry is consevative and so a slow adopter" argument is wearing thin.
It's beginning to look as if the software is more of a tool to support their consultancy services.
apad