Sondrel (holdings) Share Discussion Threads

[topvest] 05/6/2011 21:17

It's not unusual for software companies who get paid up front for annual licence fees. The deferred income is recurring every year due to the high recurring licence fees, which means that many software companies can comfortably operate with current liabilities. Nothing to worry about in my opinion. Indeed the recurring licence fees are a very high quality revenue stream.

[effortless cool] 05/6/2011 11:00

I'm reviewing the accounts on SND and am puzzled by the very large Deferred Income entry under Current Liabilities (£6.9m at latest interims).

Deferred income would normally represent commitments for products/services for which payment has been received but the products/services have not yet been provided. There would normally be a corresponding prepayment entry in current assets. This is not the case here and, as a result, net current assets are significantly negative.

It would therefore seem likely to me that the cash from prepayments is being expensed, i.e. prepayments for future work is being used to pay expenses for current work. I find it hard to see this being a sustainable business model, although SND have run this large negative net current asset position throughout their existence.

Can anyone shed any light on this?

[envirovision] 21/5/2011 08:16

volume 1.3 Million @ 28p

[tech] 18/5/2011 14:00

Results ok today, good steady progress

[battlebus2] 04/5/2011 18:54

Yeah there doesn't appear to be any bad news so as you say top up time.

[envirovision] 04/5/2011 12:48

Just added 7.5K crazy price.

[tech] 04/5/2011 12:43

Just bought 10k, too cheap

[stegrego] 04/5/2011 12:30

Clearly some dont think this is value on a p/e of 5.

Odd market. As usual.

[topvest] 22/4/2011 08:09

Commodities - but they will eventually get burnt. This is a great little company and should deliver good returns over the medium term, particularly after the debt is repaid.

[envirovision] 21/4/2011 22:30

In reality 60p would seem fair, this is the worrying thing about the market. I mean where is the smart money ?

Certainly is not finding its way to undervalued smaller caps that's for sure.

[battlebus2] 20/4/2011 21:16

JUST LEAVING THESE IN THE DRAWER TILL 40P.

[envirovision] 20/4/2011 08:09

On target for eps well of 5p, 6p next year. On a fwd Pe UNDER 5.

Any reason why?

[topvest] 11/3/2011 21:25

Yes, a good update - 9 new customers in 2m is pretty impressive stuff and shows that Sanderson are still winning in the market place. They are a quality company and shareholder value creation looks a good prospect here over the medium term.

[battlebus2] 10/3/2011 13:38

Guys the main thing is the company is progressing well and is still undervalued.

[stegrego] 10/3/2011 13:23

Good riddence

[envirovision] 10/3/2011 13:20

Stegrego

filtered

[stegrego] 10/3/2011 12:53

Well if you put these two bits together:

'Sanderson has a robust business model with pre-contracted recurring revenues accounting for over half of total turnover'

and

'Across the Group, nine new customers have been gained in the current financial year up to the end of February, compared to 28 during the whole of the previous year'


it doesnt read badly.

[edmondj] 10/3/2011 12:45

Probably the key word is a "steady" start to the year.

[cb7] 10/3/2011 12:42

yep, the statement sounded positive, but perplexed about the 9 new customers to end of Feb compared to 28 all last year.... err 5 months gone and just 9 customers... thats a worse ratio than last year... perhaps it was a typing error and it should be 19, or the 28 should have been 18????

[stegrego] 10/3/2011 12:16

Very suprised this is down after the AGM statement, which read reasonably bullish. Yes gearing is fairly high but they are paying it down quite quickly.

P/E is 5 on current forecasts.