Simigon Share Discussion Threads

[rivaldo] 03/5/2016 08:30

Fabulous contract win today. Finncap's 45p target price looks more and more realistic.

Lovely long-term earnings providing great visibility going forward. And as it's for civil aviation it "underlines SimiGon's potential to access a much larger addressable market and has the potential to enable SimiGon to expand further into other civilian aviation industries with similar opportunities."

The m/cap remains at just £9.6m at 19p, yet at 31/12/15 SIM had almost £7m of cash and net current assets and is on course for 1.9p EPS with a 0.49p dividend this year.

[battlebus2] 03/5/2016 07:40

Yes great news.

[multibagger] 03/5/2016 07:27

Fantastic news on landing another big contract :)

RNS Number : 9402W

SimiGon Limited

03 May 2016

Tuesday May 3, 2016

SimiGon Ltd

("SimiGon" or "the Company")

SimiGon awarded 5.5 year contract worth $7.9 million for civilian aviation training solutions in the Far East

SimiGon continues to expend into the civilian market

SimiGon (LSE: SIM), a global leader in providing simulation solutions, is pleased to announce that it has signed an exclusive five-and-a-half-year contract (the "Contract Period") to deliver SIMbox based training solutions to a leading provider of training solutions for the civilian aviation industries in the Far East (the "Contract").

Under the terms of the Contract, SimiGon will be paid $7.9 million to license its SIMbox software over the Contract Period, with a minimum of $1.4 million per year starting this year. The revenue contribution from this contract was already factored into management's expectations for the year ended 31 December 2016. It also will contribute to improved revenue visibility for FY 2017 and beyond.

This is another major contract outside of the defense industry and it will further expand the Company's growth strategy to diversify its product offering and increase its addressable market. The Contract underlines SimiGon's potential to access a much larger addressable market and has the potential to enable SimiGon to expand further into other civilian aviation industries with similar opportunities.

SimiGon President & CEO, Ami Vizer, said: "This Contract is part of SimiGon's strategy to focus on long-term, high value, stable license contracts which provide better revenue and profit visibility rather than on single lump sum license sales. We are excited to be awarded this Contract which strengthens our position in the civilian aviation sector; a sector which we strongly believe has significant growth potential. We are delighted to be working alongside a leading regional provider of training solutions to the civilian aviation industries and who have a clear vision of how our technology can leverage their current and future businesses".

Enquiries:


SimiGon Ltd
Ami Vizer, Chief Executive Tel: +1 (407)
Officer 951 5548
Efi Manea, Chief Financial
Officer
www.simigon.com
finnCap (NOMAD & Broker)
Stuart Andrews / Scott Mathieson Tel: +44 (0) 20
(corporate finance) 7220 0500


This information is provided by RNS

The company news service from the London Stock Exchange

END

[rivaldo] 26/4/2016 08:48

...and again - now you can sell at least 50k at 16.62p, whilst you can only buy a maximum 7k at 18p.

The price moved up yesterday on a 20k buy - any buying at all would hopefully see decent rewards here based on the above.

[rivaldo] 21/4/2016 13:39

Looking even better now - you can still sell at least 50k at a premium at 16.22p, but now can only buy 5k maximum at 17.98p.

[thomasthetank1] 20/4/2016 13:42

Read finnCap's note on SIMIGON LTD, out this morning, by visiting hxxps://www.research-tree.com/company/IL0010991185
"The global leader in simulation and training solutions provider has delivered strong earnings outperformance on the expected lower revenue. SimiGon had previously flagged that delayed delivery of its major $6.7m prime contract won in 2013 would affect recognised revenue in FY 2015, and we reduced our expectations to $6.8m. In fact, the company delivered $6.9m. Moreover, there was a dramatic reduction in overheads, across all areas but notably in R&D, which has led to a significant rise in operating margins (from 17% to 25%) and consequently to adj. PBT rising 17% to $1.7m, well ahead of our forecast $1.5m. The adj. FD EPS of 3.3c is up 13%, again ahead of our 3.0c expectations. Trade debtors rose considerably, affecting cash conversion to such an extent there was a $1.7m outflow from operations. With the $0.3m dividend payment in the year, this led to a $2.0m reduction in net cash to $7.4m at December 2015. $1.8m of the $3.7m trade receivables have been collected since the year end and – in a demonstration of confidence – management has maintained the dividend at the 0.6c declared last year. We reiterate..."

[varies] 19/4/2016 19:59

Always a thin market.
I bought 25,000 at 16.70p yesterday and it may be this small purchase that has moved the price.
If we all keep off for a few days (and I make no promise)then the offer price will probably come down to 16.50p again.
I would not like to be a forced seller !

[rivaldo] 19/4/2016 13:36

Looking very encouraging online - you can only buy 5k maximum at 16.98p, but can sell at least 50k at a premium at 16.22p.

[cockerhoop] 19/4/2016 08:37

DGW,

There's certainly a chance, they've worked with Elbit before. I don't think it will be ordered separately though as the prime Affinity contract covers Ground Based Training.

[dgwinterbottom] 19/4/2016 08:00

I will as usual be getting a full hard copy of the results to see what else is there that might be of interest!! be interesting to see if the RAF order for the T6 includes Simbox or whether they might order it separately. It would also be nice to see expansion outside of aviation.

[rivaldo] 18/4/2016 22:49

Excellent late recovery today.

Finncap have reiterated their Buy, with a 45p target, and had this to say - they confirm my earlier post that the results were actually ahead of expectations at around 2.35p EPS:

"SimiGon*: Prelims (CORP)

The global leader in simulation and training solutions provider has delivered strong earnings outperformance on the expected lower revenue. The company had previously flagged that delayed delivery of its major $6.7m prime contract won in 2013 would affect recognised revenue in FY 2015, and we reduced our expectations to $6.8m. In fact, SimiGon delivered $6.9m. Moreover, there was a dramatic reduction in overheads, across all areas but notably in R&D, which has led to a significant rise in operating margins (from 17% to 25%) and consequently adj. PBT rising 17% to $1.7m, well ahead of our forecast $1.5m.

The adj. FD EPS of 3.3c is up 13%, again ahead of our 3.0c expectations. Trade debtors rose considerably, affecting cash conversion to such an extent there was a $1.7m outflow from operations. With the $0.3m dividend payment, this led to a $2.0m reduction in net cash to $7.4m at the December year end. $1.8m of the $3.7m trade receivables have been collected since the year end and management has maintained the dividend at the 6.0c declared last year. We reiterate our 45p target price."

[varies] 18/4/2016 16:49

Rivaldo
Thank you so much for explaining the EPS figure for me.
Yump
I too have had disappointments with foreign-based companies on AIM, most recently with Powerfilm where the directors decided to abandon the London quotation. I sold all my shares at 3p for a 70% loss although the liquid assets greatly exceeded this price.
On the other hand one can be lucky with them. I had a large holding in Silanis bought at about 15p and thought these would prove valueless when they gave up their AIM quotation; I was able to sell only a few shares at 9p then. This proved lucky for me as the company has recently been taken over and I have received about 50p per share.
There seems to be as much luck with these stocks as at the roulette table !
Few of these foreign stocks pay a dividend. SIM's payment of dividends suggests to me that they want to retain the quotation.

[yump] 18/4/2016 15:00

Yes, I was pleased to be rescued from PGB and CHNS, which went through their 'this is surely too cheap' periods for quite a long time.

[rivaldo] 18/4/2016 14:39

Many said the same as regards MWE a while ago. It's since doubled. PGB is another that did well. CHNS another. WCC also. UK-based investments have seen many collapses recently - SPRP was the golden boy of AIM for a long time, and now look at it. LAKE and QP. have similarly halved or more.

There will always be good and bad - it's a case of trying to sort the wheat from the chaff, as in all investing.

[yump] 18/4/2016 13:43

I've given up on all these overseas stocks, there's clearly no demand for them other than people having a punt.

If the combination of the forecast which has been around for a while and the actual results doesn't send them up, then its another dead duck investment as far as I'm concerned.

The only ones I ever made money from were the ones that shot up on initial excitement, when I sold them (thank goodness). GNG, RCG, TAIH etc. when they were in vogue.

Picking 'apparent' bargains since, because they look cheap has not worked at all, not once. I think the folk who used to buy them have gradually become fatigued.

[rivaldo] 18/4/2016 11:57

Varies, the quoted EPS figure is $0.04, i.e 4/100 of $1, which is 4 cents, so SIM are correct.

The results are also very satisfactory to me, and interestingly they're well above Finncap's expectations.

At even 2.2p EPS they compare rather nicely to Finncap's 1.96p forecast EPS. The 0.6p dividend is basically spot on with 0.4p forecasts.

This year's forecasts were 2.03p EPS and a 1.52p dividend.

[dgwinterbottom] 18/4/2016 10:34

I believe the RAF has ordered the T6 trainer to replace the Tucano, perhaps they will pick up some business from that!

[cockerhoop] 18/4/2016 09:40

The accounts at SIM never look quite right to me:

R&D dramatically reduced by staffing costs - yet no restructuring charge
Similar in Sales and Marketing

Carried out lots of free extra work on the $6.7m contract yet profitability actually increased. I would expect it to reduce margins.

Unprecedented rise in receivables probably involving the above contract suggest to me their may be further issues with delivery. I accept 45% of outstanding receivables have been collected since YE.

It seems that I'm not alone as the bare numbers would suggest a higher share price

[rivaldo] 18/4/2016 09:33

Finncap have today reiterated their 45p target here:



Maybe there's a seller around, maybe some have been put off by the comment about the transition to high value, long-term contracts.

I'm happy to stick around as there's lots of upside, little downside (in theory) given the bullet-proof Balance Sheet and successful core business, much optimism in the outlook statement - and the possibility of further transformative contracts.

[multibagger] 18/4/2016 08:27

Surprising...been marked down....maybe a big sell in the background.

[battlebus2] 18/4/2016 07:45

Yes pretty solid results Rivaldo.

[rivaldo] 18/4/2016 07:43

Very good results.

For an £8.5m m/cap at 17p you get:

- I calculate around 2.2p EPS, omitting the tax credit
- £5.3m net cash
- another £1.3m of excess receivables over payables, so £6.6m of cash/receivables in total
- a 0.6c dividend

The revenue from the major $6.7m contract should smooth out the transition to high value, long term license contracts for this year, and there are plenty of contract win prospects mentioned in the narrative.

Looks like SIM have a good handle on cost control too, with the large reduction in operating expenses, particularly R&D.

In addition, I like the comments about:

- increased recurring revenues from training
- the growing involvement in drone/UAV systems

[rivaldo] 13/4/2016 10:35

:o))

I added a few at the 17p mid-price.