Redcentric Share Discussion Threads

[a2336418] 01/12/2015 11:15

4....yes 4 shares just sold.....must be leftovers form when Redstone was at £1....would have been 320 old redstone shares...part of someones will?

[carpadium] 21/11/2015 16:00

No more tips from Jim then, RIP.

Most grateful for this one, a winner to date with much more to come next year.

[gargleblaster] 13/11/2015 17:16

On second thoughts maybe a kicker.

[woodcutter] 13/11/2015 16:05

morning star candle pattern now formed, reversal signal confirmed. lets hope it holds!

woody

[woodcutter] 13/11/2015 12:58

accumulated again today

woody


free stock charts from uk.advfn.com

[twonky] 13/11/2015 07:58

I agree Hutch, the debt news caused the drop, but a well run company and as stated the debt will be quickly reversed by early next year and share price will reflect this imo.

[carpadium] 12/11/2015 16:39

Who are reckoned to be RCN's industry peers, those capable of making a take-over bid at any time in the future?

[hutch_pod] 12/11/2015 12:52

Shares mag are also positive, and reckon it might be concerns over the net debt that caused the selloff, and also reckon it was unwarranted given the cash gen and recurring income.

[gargleblaster] 10/11/2015 01:21

IC maintain their buy rating!

Skittish investors sent shares in Redcentric (RCN) down 5 per cent after the managed IT services specialist posted sharp declines in statutory earnings for the six months to 30 September. But ignore one-off expenses - chiefly £3.6m in integration costs following the takeover of peer Calyx in April - and adjusted cash profit leapt 17 per cent to £11.8m.

Organic sales and recurring revenues rose strongly as Redcentric focused on selling lucrative services, rather than computer servers and other low-margin products. The group continued to target medium-sized UK organisations eager to farm out the management and security of their computer systems, and keen to invest in remote data storage and wide-area networks. Indeed, Redcentric inked a £4.5m central government contract to provide hosting, a network and a managed platform, as well as a five-year £1.1m deal with Medica to offer fast, secure, 24/7 access to radiology and imaging reports to NHS trusts across the country.

Funding the Calyx deal meant Redcentric's net debt more than tripled to £16.5m. But broker finnCap expects robust cash generation to slash that figure to below £10m by the end of March. It expects adjusted pre-tax profit of £19.7m in the year to March 2016, giving EPS of 10.4p (£15.5m and 8.1p in FY2015).

REDCENTRIC (RCN)
ORD PRICE: 188p MARKET VALUE: £273m
TOUCH: 187-191p 12-MONTH HIGH: 199p LOW: 123p
DIVIDEND YIELD: 2.1% PE RATIO: 47
NET ASSET VALUE: 64p* NET DEBT: 18%

Half-year to 30 Sep Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2014 46.8 3.9 2.3 1.0
2015 54.0 1.4 0.8 1.5
% change +15 -64 -67 +50

Ex-div: 14 Jan

Payment: 17 Feb

*Includes intangible assets of £92.5m, or 64p a share

IC VIEW:

Redcentric offers strong growth and excellent revenue visibility, while a prudent management team should minimise missteps. The completed integration of Calyx and the prospect of further acquisitions add to the attractions. The group's shares trade at 18 times forecast earnings for this financial year - a discount to industry peers. That provides scope for further upside. Buy.

Last IC view: Buy, 166p, 15 Jun 2015

[gargleblaster] 10/11/2015 00:30

Looking at a two year chart the trend line shows fair value at about 185p, so you arguably that this had run a bit ahead of itself and this correction takes us back close to trend. Also some buying coming in before the close, so the downside looks limited and I expect the uptrend to re-commence in due course - all imho of course!

[carpadium] 09/11/2015 19:58

That's a lot of trades today, a little under one per minute. Can only guess some holders taking profits, it's been a good run. Nothing untoward, or of concern that stands out in ints imo, just a blip today in onward progress. Buying op. for entry or to add more.

Small mention in Sat Tel., RCN equal top holding in Henry Lowson AXA UK smaller companies fund.

[hastings] 09/11/2015 14:01

May be of interest.

[melody9999] 09/11/2015 13:55

took an initial position at 186.01 - showing as a sell. all trades going throught at 186 are buys.

[davr0s] 09/11/2015 13:54

Something a bit screwy going on as I am being quoted 1186.005 to buy and 1186.01 to sell (this is on HL) is the sell price is fractionally higher than the buy price. Never seen this before and I needed to repeat the test 3 times times to check that I hadn't lost the plot!

[modform] 09/11/2015 12:37

quite a strange reaction to the results which I think looks pretty good, not a holder but may take a position if it falls further

[gargleblaster] 09/11/2015 12:07

I wonder if Slater will use this as an oppo to top up?

[woodcutter] 09/11/2015 11:47

must have been a good analyst presentation, finncap raises target from 205p to 242p

wc

[woodcutter] 09/11/2015 11:35

Agreed and in addition to the recurring revenue the cashflow is exceptional. It's possible the debt will be paid down fairly quickly dropping the P&L finance costs to the bottom line.

you don't raise your dividend 50% if you're not confident about your prospects.

aimho

woody

[gargleblaster] 09/11/2015 10:25

For me the key metric is recurring revenue which is up 18% and now makes up over 81% of total revenue, giving a solid platform going forward. Couple that with a low fwd PEG (0.6% before the results) and you have a good long term hold imv.

[gucci] 09/11/2015 09:58

good luck woody
I'm hoping for 180p or below
lets see

[woodcutter] 09/11/2015 09:33

added to my holding. The closure of the didsbury office should see the admin costs come down and the new contracts won in H1 will contribute to the future eps growth.

I feel the drop this morning looks like a potential buying opportunity not to be missed. Always a bit speculative buying on a drop on results day notwithstanding i've began to build a holding here now for the longer term.

woody

[gucci] 09/11/2015 08:50

Could retest 180p before next leg up

[woodcutter] 09/11/2015 08:47

A decent set of H1 results, would like to see the admin costs reviewed they're growing at a faster rate than revenue. Most likely increases in staff from the acquisition, nevertheless it needs bringing under tighter control.

Other than that the growth in recurring revenue streams and the dividend increased are welcomed. nice outlook statement too. I figure there's further growth available here, but as always need to keep an eye on the chart for any change in investor sentiment.

woody

[davr0s] 09/11/2015 08:47

I've not held that long and was comfortable with today's half year report - surprised at the weakness. Was market expecting more than a 50% rise in divi? Quite tempted to add to my holding sub 190