|Is it my imagination or did i see somewhere that QDG was changing its name to Synectics ?|
|and locally in the Yorkshire Post
|When chief executive John Shepherd joined security services specialist Quadnetics back in 2008 he inherited seven disparate businesses. He has since knocked the operations into shape, stripping £2 million from overheads and shifting the focus towards higher-margin markets.
Now employing over 450 people, the AIM-listed company is spread across three continents. It has a particular focus on control room surveillance, spanning urban surveillance, offshore adverse areas (oil, gas, chemical and mining), casinos, transport, retail and prisons.
Recent results confirm that Quadnetics is in rude health, as it hoisted sales 13 per cent to £69.1 million, but more impressively boosted pre-tax profits 79 per cent to £2.5 million. It has net cash of £1.3 million, as well as a bulging order book up 19 per cent to a record £32.5 million.
The largest business is in integration and managed services, which provides design through to the management of large-scale systems. Though the lowest-margin operation, it has landed £4.4 million of new retail work as well as significant new contracts with police custody and local authority clients. The London Olympics is also providing plenty of new business to Quadnetics.
In network systems it enjoyed a record 2011, fuelled by huge demand in the US market for casino security. A specialist in critical infrastructure protection, it is also winning work in the Middle East and Asia.
The Mobile arm has just landed a £2.5 million deal over five years to provide CCTV support on over 600 London buses. Last year it suffered from unrest in the Middle East, where it lost two contracts, but expect an upward shift in its fortunes in 2012.
Key to the shift in profitability has been a conscious effort to sell more of its own intellectual property. In addition, it is on the lookout for acquisitions. Last year it picked up Germany-based Indanet, which is a provider of surveillance systems to the transport market.
Serving the Berlin, Frankfurt and Munich public transport authorities, as well as Deutsche Bahn, the business is already profitable but has to deliver impressive returns in order to receive the maximum 10 million consideration.
Quadnetics is soon to change its name to Synectics, as this is the brand better known by its customers. In addition to expanding its margins, management are keen to boost market share, in what remains a highly fragmented industry.
Speaking to Growth Company Investor, Shepherd said, 'There is plenty of scope to expand, but we will not overpay so any deals will be extremely selective.'
With a growing element of recurring revenue being added to the mix, house broker Westhouse argues that the target price for the shares should be 350p. As security becomes ever more prevalent, so too should the requirement for its services. At current levels, shares in Quadnetics are attractive. Buy. Miles Nolan
Security and surveillance technology specialist Synectics, a subsidiary of Quadnetics Group, is to provide CCTV solutions for the Golden Eagle Area Development project in the North Sea which is currently being developed by Nexen Petroleum U.K. Limited.
The Golden Eagle twin platform complex, situated approximately 70km offshore from the UK coast, is scheduled to commence oil production in the last quarter of 2014. Working with telecoms system integration specialist Nessco, Synectics' industrial division will develop a complete IP based CCTV system to closely monitor and protect key platform operational areas, including the flare, compressors, process areas, utility areas and the helideck.
Synectics' ATEX certified, explosion protected COEX C3000-V camera stations are ideally suited to this large scale offshore project, the harsh North Sea conditions posing no problems to the high grade, corrosion resistant technology.
Utilising Synectics' Synergy technology, which facilitates interface with multivendor solutions, the system will enable onshore monitoring and control of offshore cameras. Integrated with process and access alarm systems, operators will be able to view and record simultaneously, and conduct analysis of recordings using motion, time and camera search criteria.
Synectics' expertise and heritage in delivering bespoke CCTV systems able to withstand the rigours of harsh offshore and onshore industrial environments is a message the security specialist is keen to convey as it prepares to exhibit at OTC 2012 (30th April 3rd May, stand 2341-F, UK pavilion).
Paul Webb, Managing Director of Synectics' industrial systems division, said: "For over 25 years we've been providing specialist CCTV technology to some of the world's biggest and most challenging industrial projects, making high quality image capture, and efficient, effective CCTV control possible in some of the most hazardous conditions. The Golden Eagle project is a great example of this and we'll be using this year's OTC to showcase just how relevant and valuable these kinds of solutions are to the offshore industry."
The Golden Eagle win is the latest in a line of North Sea contracts for Synectics, its portfolio including end of life upgrade and new system development for platforms including Jasmine/Judy, Jacky, Erskine and Gannet.
Synectics' North Sea success reflects its growing reputation as a developer and provider of large scale solutions for high profile projects across the globe. As well as protecting the entire Shell Pearl GTL Project, the world's largest GTL plant in Laffan Qatar, including CCTV solutions to secure its unmanned offshore platforms, Synectics has also been responsible for developing CCTV monitoring and control systems for projects such as Gorgon in Australia and the Kashagan offshore oilfield in Kazakhstan.
For further information on the products, services and systems offered by Synectics' industrial solutions division, visit stand 2341-F in the UK pavilion at OTC, or email [email protected]x.com.
|Yes. It's one of my (HR7) thread choices|
|MTG, be interested to know do you hold QDG?
I have been playing around with some indicators this afternoon and QDG has been flagged up.|
|dave - have you stopped following RECI/RECP? Always found your posting of the Liberum updates useful & informative...|
QDG.L / 275.0p / £48.32m / TP: 350p
Event: Business gain / loss
Likely % change in earnings forecasts: No Change
Quadnetics has announced a six-year contract with Magnox that has a potential value of £7m. The contract is to service and maintain the integrated security systems at the majority of the nuclear reactor sites throughout Britain. We view this win as further evidence that Quadnetics is gaining market share through a combination of its technology and its increasing capability to service its targeted sectors.
We are making no changes to our forecasts at this stage and are happy to reiterate our 350p target price and Strong Buy recommendation.|
|GBP7million, 6 Year Contract Win
Nuclear Reactor Sites Throughout Britain
Quadnetics Group PLC, a leader in the design, integration and control of advanced surveillance technology, networked security systems and strategic security solutions, is pleased to announce a new contract win with an overall potential value of up to GBP7 million over a 6 year period.
The Group has been awarded a major contract by Magnox Limited for the service and maintenance of integrated security systems at the majority of their nuclear reactor sites throughout England, Wales and Scotland.
Quadnetics will provide and maintain a wide range of complex and integrated security systems at Magnox sites which are still generating electricity and also at those currently undergoing decommissioning.
John Shepherd, Chief Executive Officer of Quadnetics, commented:
"We are delighted to announce this major contract award which highlights the continuing success of our strategy of creating complex surveillance systems, increasingly differentiated to serve the needs of the specialist customer sectors we target - critical infrastructure, transport and hazardous areas."|
|i saw 2 large trades today Friday going through any info welcome|
|The results and the news of new business should move the share price upwards, the market prices what it thinks the company will do in the future, i am sure the share holders of QDG will see the target price raised by the analysts, and 20% above the 300p target is very easily achieved in the short term, and the dividend is good, so i expect good reviews and a higher re-rating on the share price.
Good to see a company with its directors showing that good quality companies can expand and grow the business, this will be one company to invest in this year.|
QUADNETICS GROUP* [Strong Buy] 08:06
QDG.L / 242.5p / £42.61m / TP: 300p
Event: Research issued
Quadnetics addresses global security and surveillance markets so can focus on those areas likely to show the best returns. We expect the group to continue to deliver good profit and earnings growth in FY2012, largely through "self-help" measures with respect to margins, such as increasing the use of its own IP in both software and hardware. As well as the organic growth prospects, we expect shareholder value to be enhanced by any further M&A. Our 300p target price is based on a FY2012 P/E of 15.4x and given its growth potential, we believe Quadnetics is a top pick for 2012.|
|Market Cap only 38M & T/O 100m makes me think they are 2 1/2 times under valued. They have got to be worth a fiver in my opinion|
|Broker revised forecasts after trading statement:
From the company broker's note dated 13th December 2011
Year to: November 2011 2012 2013
EPS 15.6p 19.5p 32.0p
P/E 13.5 10.8 6.6
Based on share price of 210p at 13th December 2011|
|Year End Trading Update
Quadnetics Group plc, a leader in advanced surveillance technology and security networks, provides the following update on trading following the end of its financial year on 30 November 2011.
Trading was strong in the final months of the financial year and early indications are that results for the year as a whole will be at the higher end of the board's expectations.
Sales growth has been strongest in the Synectics Network Systems and Synectics Industrial Systems divisions, which provide specialist surveillance systems worldwide to the critical security and oil & gas markets respectively, continuing the trend seen in the first half of the year. Comparable year-on-year revenue in Synectics Networks is estimated to have increased by around 20%, and in Synectics Industrial Systems by around 30%. In both divisions, the growth in revenues has also had a significant beneficial impact on margins.
Revenues in the Integration and Managed Services division, and in the transport sector of the Synectics Mobile Systems division, were broadly flat compared with the previous year. The defence activities within Synectics Mobile Systems improved their performance in the second half, but still suffered from the combination of limited UK defence orders and disruption to expected contracts in the Middle East from local political unrest.
Indanet AG, a leading supplier of high-end surveillance systems for integrated transport hubs, was acquired in July 2011. Since acquisition Indanet has performed somewhat ahead of the board's expectations, and is now anticipated to have made a positive contribution to Group results in the period to 30 November 2011. This has arisen from a combination of improved trading and slower increases than originally planned in marketing and development expenditure. The integration of Indanet is going well, and we continue to be excited by the prospects for this business within Quadnetics.
The Group's consolidated firm order book at year end was approximately GBP34.7 million, including GBP3.3 million at Indanet. The comparable consolidated order book as at 30 November 2010, which did not include Indanet, was GBP27.3 million.
Quadnetics will issue preliminary results for the year to 30 November 2011 on or around 29 February 2012.|
Just seen a volume of 1.9m- have I missed something?|
|I believe this share is undervalued and when I tried to buy over the market size I was advised the MM's are bidding for 25,000 at present!|
|For Immediate Release 4 March 2011
Quadnetics Group plc
Preliminary Results for the 18 months ended 30 November 2010
Quadnetics Group plc, a leader in advanced surveillance technology and security networks, reports its preliminary results for the 18 months ended 30 November 2010.
-- Underlying profit* before tax up 77% to GBP2.6 million
(2009: GBP1.5 million)
-- Underlying EPS* up 92% to 12.5p (2009: 6.5p)
-- Recommended final dividend 4.5p per share making 7.0p
for the 12 month period to 30 November 2010 (2009:
-- Profit before tax for the 18 month period ended 30
November 2010: GBP1.2 million (12 months ended 31
May 2009: GBP0.5 million)
-- Basic earnings per share for the 18 month period ended
30 November 2010: 5.5p (12 months ended 31 May 2009:
-- Net cash at 30 November 2010: GBP3.3 million (2009:
-- Order book up 24% to GBP27.3 million (2009: GBP22.1
-- Operational restructuring completed and benefits starting
-- 3 major new Synectics product launches
-- Significant contract wins in banking, prisons and
oil & gas sectors
-- Acquisition of defence joint venture partner brings
new surveillance product and technology team
Figures quoted are unaudited figures for the 12 month periods to 30 November 2010 and 30 November 2009 unless otherwise stated.
* Underlying profit represents profit before tax, exceptional costs and share-based payments charge. Underlying earnings per ordinary share is based on profit after tax but before exceptional costs and share-based payments charge.
John Shepherd, Chief Executive, commented:
"It is pleasing to see the results of integrating and refocusing the business starting to bear fruit. The significant profit improvement compared to the prior year has been delivered in spite of a 5% reduction in sales. This is in line with our stated aims of striving to increase both absolute profit and return on sales. As we continue to focus on selling higher margin integrated systems in our chosen niche markets, we expect this profit trend to continue. The significantly reduced overhead cost means that we will be able to take advantage of improving global market conditions to deliver higher profit margins.
"In our July statement I promised that we would increase our pace of innovation and this has resulted in the launch of three new market leading product families. The establishment of the Synectics Group Technology Centre at our Sheffield facility will enable us to develop more common-core hardware and software products which we can exploit in many different market opportunities. The higher order book gives confidence for further improved performance in 2011."|
|On looking a bit further, I don't like the look of the local authority one - the others don't bother me.
Key thing is my investment could be 'dead money' for some time with limited upside at the end of the period, so think I might be out. Obviously not a panic job, so having a careful think.|
|"Three Key Delay Issues QDG cited three key reasons for the shortfall against forecasts: a supply-chain issue affecting the fulfilment of large orders for the US casino market; a new UK banking customer whose rollout slipped beyond November 2010; and a large anticipated Synectics order, for November delivery to a UK local authority customer, which has been delayed until next year. "
a) How do you have a supply-chain issue these days?
b)UK Banking - likely to be fewer branches and fewer offices etc
c)UK local authority customer slippage - not surprising. Presumably until budgets allow. Earliest will be April 11, but wont be surprised at further slippage|
Quadnetics (B)(A) Greig Aitken (0845 213 4206)
Trading Update BUY (Unchanged since 04/02/09) Current 12m Price Target: 220p Current Price: 178.5p Market Cap: £31.4m
· FY10 to fall short of expectations Today's trading update contains disappointing news of an expected shortfall against FY10 forecasts, though the fact that this shortfall is largely attributable to contract slippages which will soon be resolved reassures us that Quadnetics' post-restructuring recovery story remains on track. This assertion is further supported by an increasing order book and some significant new contract wins.
· Three Key Delay Issues QDG cited three key reasons for the shortfall against forecasts: a supply-chain issue affecting the fulfilment of large orders for the US casino market; a new UK banking customer whose rollout slipped beyond November 2010; and a large anticipated Synectics order, for November delivery to a UK local authority customer, which has been delayed until next year.
· FY10 forecasts downgraded With the delays impacting some particularly high margin areas of business we expect there will be a leveraged impact on bottom line earnings in FY10, therefore we are reducing FY10e sales forecast by 9% to £61.9m (£67.6m) and EPS adj. forecast by 21% to 12.0p (15.3p). We highlight however that this would still result in strong earnings progression against FY09 (FY09 EPS Adj.: 6.6p). With uncertainties in the market, particularly surrounding local authorities' spending cycles, we are leaving FY11 forecasts unchanged at present, though clearly the year will get off to a strong start through the delivery of the delayed FY10 contracts. The increase in order book to £28m (Nov 2009: £22m) lends further confidence to our expectations of strong growth into FY11.
· PT unchanged Our current target price of 220p is 13.0x FY11e earnings, which is a 21% discount to peers who currently trade on 16.6x FY11e therefore we leave it unchanged. We maintain our BUY recommendation.|
|Looks mainly like orders moved beyond year end, but although there's substantial order book increase, I think that was in the price already after outlook at interims.
Think its a 'hold and worry a bit' share until Feb ?|