Quadnetics Share Discussion Threads

[josh devil] 17/1/2007 16:27

I have just worked out what has caused the share price rise.

The resignation of Westcott -the link to the old failures has been cut!!!!!

[the analyst] 16/1/2007 17:59

It's been a good thing that the bulletin board is quiet - allowed me to quietly accumulate at 225p!

[greek islander] 16/1/2007 17:26

Further
I tend to hang around the brilliant RCG BB. RCG is a company in a similar sector to Quadnetics and the share price has gone up 150% in 18 months.
I like these sort of companies and I look for this one to do at least as well. It is a massively profitable and exciting sector.
Just hope that ths BB can be as interesting as the RCG BB.
Wish you luck everyone my first month here has been excellent and I hope we are in for an exciting ride.

[jswift] 16/1/2007 16:22

Starting is not what I am thinking, no share goes up like this unless there is news out in the market, seems to be very little volume but a 60p plus increase this year

[rogerl] 16/1/2007 12:38

Staring to look real good

[greek islander] 15/1/2007 18:09

I love it when the share price rises in the weeks leading up to results.
It is the strongest sign possible that we are in for something special - or am I being cynical?
I am building stock in what is the very sort of company I am currently directing my investments to.
Having just recently bought TAN and APN (please go see) alongside this one and having RCG as my biggest share and almost a 3 bagger you can see that I am almost bullet proof: having a wonderful run. Follow me up there.

[maurillac] 15/1/2007 12:47

looks a good bet analyst as long as interims are good & outlook positive imho
m

[the analyst] 11/1/2007 13:27

Jolly good, looks like it has broken out of a trading range. Wonder if it can break that 385 barrier at some stage this year?

[rogerl] 11/1/2007 10:14

A bit early for a rise before interims due in feb.

[jswift] 10/1/2007 18:01

Seems to being moving over the last few days with out any volume, any views what might be happening?

[rogerl] 15/12/2006 13:24

GI- Thanks for that, nothing new but as you say raises the profile

[greek islander] 15/12/2006 11:21

QUADNETICS TIPPED TODAY should boost the sp

Buy Quadnetics at 307.5p

A tip from Techinvest Newsletter
Quadnetics designs, installs and maintains advanced security surveillance networks and is the largest independent integrated security systems provider in the UK and also operates in the Republic of Ireland, and Middle East. Its products are the industry standard for large scale CCTV systems in the UK and are rapidly gaining acceptance in the huge US market. As analogue technology platforms are replaced by new digital and IP applications, new ways of connecting and managing security and surveillance systems are emerging. Advances in wireless technology are expanding the possibilities by reducing transmission costs and extending coverage dramatically. This is creating some exciting opportunities for innovative product developers such as Quadnetics.



Over the last two years Quadnetics shares have been as high as 385p. Some minor trading glitches saw them fall back to around the 200p mark and stay there for most of this year. The latest full year results in September, however, breathed new life into the shares which are now up to the 300p level again and look like they will push higher still.



Quadnetics' strategy is two pronged: maximise the growth opportunities of digital CCTV control systems and recording technology; and become one of the UK's leading electronic security services companies by building on its market leading positions in key sectors. Plans to expand the business are based in part on a major sales drive in the North American market. The market for large-scale digital CCTV systems in the US is evolving rapidly and is potentially very large. Quadnetics plans to focus on two sectors where it has experience and technical advantage: casinos and public space surveillance. It already has successful CCTV reference sites in some of the largest casinos in North America.



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Recent acquisitions should enable the Company to substantially accomplish the second objective. In February 2004 it acquired Look CCTV, a leading supplier of CCTV systems on buses. This was closely followed by the purchase of Coex, a global supplier of CCTV products for the oil/gas and marine industries. In May 2005 it established a sales and service base in North America by acquiring Alphapoint LLC, a specialist provider of digital surveillance technology. Further expansion was achieved in November 2005 after the purchase of Protec, a complementary business that doubled the Group's sales and also brought with it a route into the Middle East market.



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Helped by a seven month contribution from Protec, Quadnetics delivered strong results for the year to 31 May 2006. Consolidated turnover was 49.6 million pounds, compared to 26.8 million pounds the previous year. Profit before tax, exceptional costs and goodwill amortisation was 3.6 million pounds (2005: 2.7 million pounds). Earnings per share were ahead 21% at 24.2p. Net cash at the year end was 8.9 million pounds, equivalent to 55p a share. Since the continuing and acquired businesses have been managed as integrated activities for most of the second half, like-for-like comparisons of performance against the previous year inevitably involve some arbitrary cost allocations. Nevertheless, the broad picture is that the Group's continuing activities produced consolidated turnover growth of around 12%, on which underlying operating profit declined slightly to just under 2.5 million pounds.





Quadnetics says that this broadly static profit figure from continuing activities stems primarily from reduced activity levels and margins in the UK town centre security sector, and the additional costs associated with establishing infrastructure to support its growth in North America. On a like-for-like basis, turnover rose by 8% to £18.3m. Underlying operating profit declined to 1.8 million pounds from 2.1 million pounds last time, partly due to investment in longer term contracts that initially carry lower margins. Another factor was temporarily reduced demand in the UK local government sector. However, this area of business improved in the second half with momentum carrying through to the current financial year. The continuing businesses within Protec saw sales grow by 25% to 12.9 million pounds. Underlying profits increased by 15% to 1. 4 million pounds compared to 1.2 million pounds in the previous year. Profit growth would have been higher still had it not been for the start-up costs of operating the new US subsidiary and additional research and development expenditure for the product enhancement required for the US market.



Quadnetics says that the investment in North America is now generating the sort of customer response it had hoped for and further substantial orders are expected in the first half of the current year. It has created significant opportunities through the combination of strong positions as a service provider in specific customer sectors, and its leading CCTV security technology aimed at certain key growth markets. Expansion into North American looks to have been well planned and adds a significant kicker to the prospects for growth. Ongoing benefits from the Protec acquisition should also have a further positive impact on results going forward.



According to Quadnetics, aggregate order books for the continuing and acquired businesses at the last year end were approximately 30% higher than a year before. For the year to 31 May 2007, house broker Brewin Dolphin Securities is forecasting earnings per share of 28.6p. This puts the shares on a price-earnings ratio for 2007 of just 10.5. Excellent value for a business operating in a well-established niche and with great growth prospects in the US. Buy.




Key Data

EPIC: QDG
Spread : 300 - 315p

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[rogerl] 04/12/2006 13:54

Thanks T, I am a long term holder (at least until the next set of results)

[tradx666] 04/12/2006 12:08

rogerl,

Only that confidence inside the business appears to be high :-)

regards

T..

[rogerl] 04/12/2006 11:52

Starting to look interesting, anyone know why the rise

[eircomnet] 29/11/2006 19:44

I still have shares in Prc (does any body know if I can still exchange them?

[binley] 09/11/2006 18:59

Pay date is Dec 7

[latifs100] 09/11/2006 14:05

how do i find dividend pay out date..tia

[broadwood] 02/11/2006 15:58

Back over £3 as I write this.

Maybe new contracts in the offing,acquisition bedding down well? Somebody likes them.

[josh devil] 02/11/2006 12:34

Have a look at Indigo which is in a similar space. Their Agm statement says turnover has doubled on last years numbers - QDG will be seeing a similar increase in demand although not across their whole business. This business is significantly undervalued both on a fundemental basis and on a comparative with its peers. If the tick ups over the last few days represent market makers trying shake out some sellers then we could be in for some interesting times!

[jswift] 02/11/2006 12:20

Hi- more movement without any trades, what is happening here? Any views on what a value would be v their piers?

[the analyst] 01/11/2006 12:03

They are trading at a big discount to their peers, so it could just be value investors buying into a good company that appears undervalued.

[rogerl] 27/10/2006 13:01

Looking positive but for no particular reason I can see, anyone any ideas?

[swwikmi] 17/10/2006 09:32

anyone stakebuilding is goog news - they must consider the shares undervalued - and a bid might be just around the corner from another source - bigger fish can grow more easily by buying up companies than internal expansion

[josh devil] 17/10/2006 09:00

I think that the Westcott disposal is great news - could only be improved by confirmation that he is stepping down from the Board!

The pricing on the option will need to be considered by the market as it is a little convoluted but I guess it either underpins a higher valuation now or puts a ceiling on the price in the future.

I also think that there is a link between Bendery and Midia so this is a consolidation of the Turner stake. The only E Bohan I know is a Senator in the Irish parliament so there may be other interesting developments to come!