||EPS - Basic
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Real-Time news about Sbs Grp. (London Stock Exchange): 0 recent articles
|harry punter: these shares are going to £2 -00 soon imho
regards harry and the boys in dark glasses
buggr - 25 Oct'05 - 16:27 - 3 of 4
What is going on here, no announcement of any substance, no clear direction given, yet substantial move in share price. Does someone know something that the rest of us don't and if so should they be buying?
harry punter - 26 Oct'05 - 03:50 - 4 of 4 edit
one for the future buggr --|
|buggr: What is going on here, no announcement of any substance, no clear direction given, yet substantial move in share price. Does someone know something that the rest of us don't and if so should they be buying?|
|fossildog: Nice one Harry ... although I suspect a 'We have noted the share price and can offer no explanation for the rise' type RNS|
|snappy: a few links for anybody who is interested
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|rajesh pampapathi: --> Braindrain
This has taken rather a long time, I know, but we have some answers at last. I've spoken to Philip Holt fd, whom I found very amiable and relaxed, despite the fact that he told me was very busy and was concerned about how long the questions would take to get through. Having found it so difficult to get through to him, he seemed in no way reluctant to make give answers to your question.
Regarding the share price, Holt said, comparison with competitors such as Harvey Nash, Spring, NSB and Parity which Holt said he did a few months ago shows the decline to be an industry phenomenon: "We are basically mirroring what's happening in the sector," he said.
So is the decline justified? Well, there is a slow down in the demand for IT contractors, Holt says and admits the prospects for industry and company alike are not good, saying, "We certainly don't see any growth in the next six months."
Nor is this grim half-year outlook going to be saved by any of the company's recent acquisition investments. Holt said the purchase of JCC Group in March and Quest Recruitment Limited in June last year had been significantly responsible for reported growth in the last twelve months, but will not be able to stem stagnation of that growth over the next six.
The blame for all this, as you expected, Braindrain, was laid squarely at the feet of Y2K: IT managers are simply not prepared to take the risk in investing in new projects until they are sure that their Y2K preparations have succeeded, Holt says. But he doesn't think there is any shortage of demand or intent for new projects: "we believe there is a lot of pent-up demand out there which will get released around February/March time next year." The post Y2K recovery, Holt expects, will translate quickly into promising results by SBS's year end in August 2000.
"There has been a Y2K bubble," Holt admits, but claims the market has historically grown by 12-15% annually and will, subsequent to the boom, return to its historic rate. "Most companies would be happy with a growth rate of 12 to 15%," Holt comments, "...and we believe that's what our market will return to."
Holt was not going to be drawn on share dealing by directors, but he did say the share price is of direct internal concern to the company as many employees are stake holders. He had no share price targets, and said the company had strong creditors, which lessens the need to raise required funds in the market. However, as turning to the market was not ruled out, share price was obviously still important, Holt said.
"We are looking at acquisition and there are a number of business in the market, but it's a matter of getting them at the right price. If we see acquisitions that meets our strategic objectives, we will pursue them," Holt said, but wasn't really going to give away anything more than that.
In summary, Holt basically believed that the company was about to go through some testing times, but had what it takes to ultimately survive and recover: "Trading will be difficult over the next six months, but we don't see a major decline." Holt claims that the company's presence in three geographical markets US, Europe and UK - will help it outlast its competitors during the period of drought.
Now that information took a long time to extract, Braindrain, but I hope it helps, and hope the delay doesn't discourage you from coming back with more if parts of this are interesting, not detailed enough or do not really answer the right questions.
ADVFN Journalist Team|
|rajesh pampapathi: Braindrain - 10 Sep 11:41 - 7 of 19
Can you find anything out about performance or likely announcements at SBS Group. They are an IT contractor suppliers and have taken a battering over the last few months. Interims were impressive, eps up 150% but the price has nearly halved since then. Year end was 31/8 with FY results out in October. Now trading at a pe of c. 10 on last years eps.
I'd be interested in the following:
1) Does the fall in price reflect anything other than the general slump in the sector?
2) Is it justified?
3) Has the company suffered from so-called Y2K freeze?
4) Has the first half performance been sustained and are any announcements going to be made before FY results? (i.e. profits warning)
5) Do the directors consider the share a buy at this price?
Basically unless there's something nasty they're not telling us yet, I consider them to be grossly undervalued but they are very tight lipped. I'm just trying to get a feel for second half performance really. I e-mailed the FD a few weeks back who sent me a non-answer. The brokers are Rathbone Cobbold Nielson who may be more forthcoming.
I mentioned this a few weeks back but it might have been overlooked. They're a pretty small AIM outfit but have made a great start since floatation. Yet to catch the City's eye perhaps?
Thanks in advance
Quite a lot of delay on this, I know, and I haven't yet managed to the speak with the bigwigs in the company, but did get some info from one of its senior PR people. A very unfriendly guy indeed, but he said some interesting things.
I asked about the slump in the share price, especially in the wake of such good interims. Firstly, he claimed that, nowadays, company share prices do not necessarily move on the strength of results (mmmm, can you, as a full time investor, verify this?), and then, without hesitation, he launched into an obviously oft repeated spiel about the slowdown in the sector as companies wait to see the outcome of Y2K.
So are they optimistic/concerned about their FY results? Apparently optimistic, as stated in previous announcements. But doesn't a slow down in a sector herald a slow down in a company's performance? Apparently, "[that] doesn't necessarily follow, the company [specifically SBS] has made a series of acquisitions recently," and this will make a difference. So the economies of scale, or other business advantages, resulting from the acquisitions will result in reduced costs and increased profits? "Well, no company makes acquisitions without having positive reasons for doing so..."
Well is the company seriously undervalued? "In my opinion yes, but like I said, the sector is slow... and [anyway] I don't set market value...!"
Does that sound interesting to you? Hope so.
Will not give up on the boys at the top though, will let you know when i get to them.
ADVFN Journalist Team|
Sbs share price data is direct from the London Stock Exchange