Revenue Assur. Share Discussion Threads

[mickharkins1] 07/12/2006 17:04

nurdin - thanks, however, given the change in activities I don't believe there's much relevance comparing to software and computer services companies.

I was wondering if there are any similar revenue assurance type companies to compare against?

Anyway, I agree that the shares are indeed cheap and if they can show some good growth at the next results they should be due a healthy re-rating.

[fse] 07/12/2006 16:54

>mick.... software & solutions providors with that type of growth rate and mkt cap are around 20 PER. Thats all I was saying.
Where they are selling to larger clients rather than a string of smaller ones that sets them apart so I am not sure if that is a good or bad thing perception wise. It might hold them back due to risks of losing a client or it may be seen as a positive that they are chosen by larger companies.
When they were XKO concensus was that they were below average, the change of name and focus should see them re rated.
I still maintain that they are a bit of a no brain buy to 160p..... dont think I have answered your question so maybe we should try for a concensus on here and see what we think as a group ?

Edit: I see nurdin has already answered the Q. I was not comparing them against specific companies due to their client list being larger cap companies which makes them slightly different.

[papalpower] 07/12/2006 16:25

Been a nice day, RAS up and so is CSW, both of them responding to recent decent results.

[nurdin] 07/12/2006 16:25

They are in Software and Computer Services sector Mick.Sector trading on 17x prospective earnings against 10x for RAS.Possibly 70% upside if rerated....higher if the market factors in better margins and forward visibilty

[geezermatic] 07/12/2006 16:21

FSE - treating ourselves to early Christmas pressies and all that...

Were worth it!

[mickharkins1] 07/12/2006 14:09

FSE,

When you say "they are out of step with the sector valuation wise", which sector/companies are you comparing against?

Mick

[fse] 07/12/2006 13:46

We have already had enough news to get these re rated, they are out of step with the sector valuation wise.
Maybe as geezer suggested we all bought some more ? Good value IMO

[papalpower] 07/12/2006 09:31

Lets hope so :)

[nurdin] 07/12/2006 09:29

Starting to move again..suspect there is a news leak...I do hope so :o)

[nurdin] 06/12/2006 15:35

Looking a bit better today...supported by some decent buying.Should start motoring from here imo

[geezermatic] 04/12/2006 14:08

nurdin - shhhhhh - were all trying to accumalate at these levels

[nurdin] 02/12/2006 12:24

Forecasts in the header FSE :o)

Trading on a pe of 11.5 for the year to march 07,falling to 9.8x for 08.Way too cheap for a business that is generating operating margins of over 38%,has high barriers to entry and offers significant growth potential.Brokers are being extremely conservative on their 08 estimates imo and likely to upgrade once RAS announce contracts from their key accounts..of which there are many. :o)

[fse] 01/12/2006 18:13

anyone know what the fwd PER is for RAS ?
They ought to be on a current PER of around 30 with those type of figures.
Looks to me that they are undervalued on current fundamentals.
Anyone any thoughts on this or comparision with sector peers ?
thanks ....

[papalpower] 01/12/2006 10:33

More than likely on news of a contract renewal or something like that.

[mitzis] 01/12/2006 10:27

Whens the next tick up due..?

[geezermatic] 29/11/2006 20:30

Many thanks Papal

[papalpower] 29/11/2006 20:14

Have not seen anything around geezermatic, I'll keep an eye open.

[papalpower] 23/11/2006 12:31

Gaining strength again today and CSW has started a little run into results a week today. RAS has responded well since results, and hopeully CSW will as well with a good set of them.

I have both RAS and CSW with targets of around 150p.

Both of them should also get a full update in SCSW in early December.

[nurdin] 23/11/2006 09:13

A great start...wait till they announce a few contracts...should easily see 150p then.They make money both through volumes of assessed bills and the rise in fuel costs.The later takes time to feed through though but it is now time for the fuel price rises of last two years to start coming through.Current brokers estimates may well prove conservative imo.

[fse] 22/11/2006 16:05

This is shaping up to be a rather decent value play.
They are well underpinned with what is on the table right now and we have the very real chance of a major contract which will be just gravy .
At these levels I have to agree with the tipsheets that they are a buy IMHO and they have plenty of blue sky above them.
XKO in its older guise was always undervalued..... RAS offers excellent value , a clearly defined company and tremendous growth potential with great margins.

[nurdin] 22/11/2006 15:35

I actually think it will be the main tip in SCSW next month...but its only a guess.They have been supporters of XKO for a long time and in their current leaner and fitter form they have much better appeal than previously.Dont think SCSW will let the opportunity pass them by

[geezermatic] 22/11/2006 15:29

Nice and upbeat.
Should see a better informed update from SCSW in early December.

[papalpower] 22/11/2006 10:55

On todays free email from GCI ( ):

November marks the dawn of a new era for the company formerly known as XKO Group, with a new name, a new sector and a new focus on 'revenue assurance'. It has appropriately been re-named Revenue Assurance Services (RAS), having sold the last part of its erstwhile divisions for £15 million in October - making for a gross £28.5 million for the sum of the old business. This allows chief executive Simon Beart to concentrate on the revenue assurance businesses acquired last year.
The group provides three services to its utility company customers: consultancy, where experienced consultants and proprietary software identify and secure un-billed debts; collections, which is telephone-based debt collection of existing debt; and metering services, where a meter-reader is sent to business premises to physically check gas meters. RAS has around 30 per cent of the gas utility market at the moment, including customers Shell, eOn and Centrica - but at three times the size, the electricity market is a significant target.

Utilities face ever more pressure to keep their costs down and RAS offers a great outsourcing option, with no clear competition - yet. Although there is some opposition to their adoption from the utilities' in-house collection departments (and contracts can therefore take around two years to win), Beart stresses that his consultants' levels of success are incomparable and he is confident of adding contracts in both gas and electricity. He says the balance sheet 'is under-geared' and is pondering acquisitions.

The business is achieving 40 per cent margins, taking £3.3 million cash from £7.9 million sales in the half year to September, with profits before tax of £2.1 million. House broker Bridgewell has upgraded year-end numbers to sales of £16 million, profits of £5.66 million and earnings of 9p per share.

Growth Company Investor recommended buying the shares at 106.5p in June but, with earnings upgraded to provide a prospective p/e ratio just over 11, it's worth adding to your holding.

Market cap: £48.44 million Ticker: RAS Share price: 113.5p

[sheik yerbouti] 22/11/2006 10:48

25k buy, this is looking good at last :o)