Sirvis It Share Discussion Threads

[mjcrockett] 10/8/2005 08:49

Agree it's not easy to see how much the acquisitions contribute to the 'growth'. However, with earnings before goodwill for the continuing businesses just over 1p per share and a board 'confident' of growth, the shares are not expensive.

mj

[wjccghcc] 10/8/2005 08:32

How much of that growth is organic though? Not the most transparent financials I've ever seen.

[stuartharrison] 10/8/2005 08:31

150% increase in turnover anounced in prelims.

Difficult to buy online - limits suggest a sharp rise on any volume.

[ponty] 15/7/2005 00:34

we can all go back to sleep

[tp100] 08/7/2005 12:56

I wonder if things will start moving again...

[tp100] 25/5/2005 13:41

I don't agree. i willing be buying again soon.

[wwalbers] 10/5/2005 08:31

A dying dog imho.

[ponty] 09/5/2005 18:16

this looks the way forward at last
Disposal of SiR Learning Systems Limited

SiRViS IT plc ('SiRViS IT' or the 'Company') completed the disposal of SiR
Learning Systems Limited on Friday 6 May 2005.


SiR Learning Systems Limited develops and distributes a range of interactive
multi-media products targeted at the UK schools market. In the current year,
this business has continued to suffer from a lack of government commitment to IT
spending in the education sector. This has resulted in the education business
being regarded by SiRViS IT as non-core. SiR Learning Systems Limited had a
turnover of £202,000 in the half year ended 30 November 2004 and had operating
profits of £22,000. Its net assets as at 30 November 2004 totalled £88,000.

SiR Learning Systems Limited has been sold to its management for a cash
consideration of £300,000. 50% of the consideration was payable at completion
and the balance of the consideration is payable on 6th May 2006. The cash will
be applied in reducing SiRViS IT indebtedness and towards the Company's working
capital requirements.

The disposal allows SiRViS IT to focus solely on the strategy of growing its IT
services business both organically and through acquisition.


Enquiries:

SiRViS IT plc Tel: [phone]
Mark Lewis, Chief Executive
Ian Bailey, Finance Director

ARM Corporate Finance Tel: [phone]
John Simpson, Nominated Adviser



NOTES TO EDITORS:

SiRViS IT plc provides a range of IT services including support, consultancy and
systems installation across the UK.


This information is provided by RNS
The company news service from the London Stock Exchange

[ponty] 15/4/2005 19:17

a large drop to day ?

[tp100] 06/4/2005 13:07

Shame I had CGT problems and couldn't sell at 9p. Oh well, I think a few months patience will be rewarded anyway. Nice little company this one.

[ponty] 16/3/2005 16:11

is that a 1250000 sell to day ?

[ponty] 16/3/2005 10:54

i tried to past e mail address last night had no luck still looks a good share

[contactus] 16/3/2005 10:49

got it at last- dont know why i could not get it before.Thanks

[contactus] 16/3/2005 00:38

ponty - i dont get it
tried all permutations - no joy

[ponty] 16/3/2005 00:13

yes sirvis it plc

[contactus] 15/3/2005 20:17

does any one know ? do servisIT have a web site

[ponty] 15/3/2005 13:04

extra school spend on computers all good for this share

[tp100] 14/3/2005 14:37

as expected, price now 9-9.75p

[tp100] 14/3/2005 11:49

You can now sell for 9p although price is 8.5p-9.5p. More to go though.

[tp100] 09/3/2005 16:46

more gentle buying today. Wouldn't be surprised to see 9p bid in the next week.

[tp100] 02/3/2005 13:35

OK, this research is now public - these are the highlights.


Net Debt £0.75m
Gearing 15.6%
Market Cap £10.1m
Year End May
Shares in Issue 114.1m

SiRViS IT

A corporate client of J.M. FINN & CO. This research cannot be classified as objective under J.M. FINN & CO.'s research policy. Visit www.jmfinn.com for details.

(%) Forecast change
05/03 0.9 (0.3) N/A (2.5) 0.0 N/A N/A N/A
05/04 3.2 0.3 N/A 0.8 0.0 11.1 N/A N/A
05/05e 8.1 1.0 33 1.0 0.0 8.9 N/A N/A
05/06e 9.2 1.4 33 1.2 Possible 7.4 N/A N/A
Code: SRV


The successful integration of Linetex and the IT services division of OSE are reflected in encouraging interim results. SiRViS IT 's growing strength in the highly fragmented UK IT services market should provide organic and acquired earnings growth in the near and mid-term future. We believe that the Group's refocusing has not been adequately valued, and the stock remains at a discount to its peers.

Revenues in the six months to November 30th 2004 increased from £528,000 to £3,948,000, and the company achieved an operating profit before goodwill of £589, 000 (£136,000). Pre-tax profit advanced strongly by 170% from £129,000 to £345,000. Contracted services (many multiyear) now account for 75% of revenues, giving good forward visibility of recurring revenues. A high degree of customer stability, and an accompanying high level of business from referrals, reflects the excellent quality of service provided by SiRViS IT.
An experienced management team is implementing close control of overhead costs, and despite future pressure on gross margins, expansion of EBITDA and EBIT margins should be significant as a result of the measures taken.
Future growth will arise from increased sales (including the introduction of the IT Partner service) to existing customers, and from winning new customers. Earnings –enhancing acquisitions are actively being sought.
SiRViS IT is targeting a modest dividend payment in the 2005/06 year.

Interim results encouraging

Introduction
SiRViS IT provides a range of outsourced IT services including support, consultancy and systems installation to over 7,000 sites across the UK.
The present group was formed from the acquisition by SiR of Packpress in January 2004, including its principal trading subsidiary, Linetex Computers Ltd (a provider of IT support services to third party software providers), and the subsequent acquisition in May 2004 of the IT support services contracts division of Open Systems Engineering (OSE) Ltd.

The Group principally operates through Linetex Computers Ltd, into which the OSE acquisition has been integrated. The core activities of Linetex can be summarised:

• Managed services – outsourced IT

• Project services – consultancy, installations, upgrades and roll-outs

• Hardware and software support service contracts

SiRViS IT provides its services to software companies, value added resellers (VARs), small and medium sized enterprises (SMEs), and the public and corporate sectors. The software companies who are customers tend to operate in a broad range of business sectors, but there is a strong focus on important vertical markets like hospitality, leisure, legal and retail. Service contracts account for around 75% of revenues, and with a move to establishing multiyear contracts, sales visibility is good. Linetex also benefits from a high level of customer loyalty, with the majority of its ten largest customer accounts having been clients for over five years.

Interim Results
Interim results for the six months to 30th November 2004 were published on 1st February, 2005, and further highlighted the impact of the Linetex and OSE acquisitions, both of which were successfully integrated into the Group (the IT support services division of OSE has been integrated into Linetex's infrastructure, and there have been reported immediate benefits from economies of scale) and which contributed a full six months trading to the strong results.

In the first half year, turnover increased from £528,000 to £3,948,000, and operating profit before goodwill amortisation of £589,000 (£136,000 in 1H 2004), and £372,000 after goodwill amortisation of £217,000 for the two acquisitions. There was no goodwill amortisation in the same period in the previous year. Around 75% of the Group's turnover is derived from IT support service contracts, with significant levels of recurring income and thus providing a very solid base and stability to the business.

During the last 12 months the Group refocused from being solely an educational software provider, into a provider of a range of IT services throughout the UK including support, consultancy and systems installation, and during this period expanding the number of sites supported from 4,500 to over 7,000.

The Group has also strengthened its sales function by opening a new office in Derbyshire which is targeting new business partnerships in the North of England, particularly in the leisure, hospitality, retail and legal sectors. However, in this six months period the Northern sales force became functional only in time for the final 1-2 months, so the benefits of this new sales force were not fully seen.

The immediate concentration is on selling more products to current customers and investigating new vertical markets.

The market that the Group operates in is best described as fragmented, with over 550 IT companies with turnover of up to £5m pa. International Data Corporation (IDC) values the UK IT infrastructure market at £10.4 billion in 2003, and this market is estimated to grow at a compound annual growth rate of 6% between 2003 and 2008. SiRViS IT has established a good base to exploit the large but fragmented UK IT support services market.

Strong demand for SiRViS IT's products was reported, and given the encouraging level of sales prospects in a strong pipeline and the high level of contracted revenue, the company is bullish regarding this year's trading results.

Valuation

The market has been slow to appreciate the impact of the business refocusing, and despite recent share price strengthening, the company remains at a discount to ComputerLand, Phoenix IT and the sector. Given the earnings growth in prospect over the next two years, and the further potential that SiRViS IT can garner from its ability to make suitable earnings-enhancing acquisitions in a sector that is due for consolidation, we would look for a 2006E PER of 9X, - i.e. a short term target price of 10.7p.

[tp100] 02/3/2005 13:12

yes, and this was despite a collegue of mine selling an hour before the rise. Not expecting great things soon but it looks a solid Hold, in my view.

[ponty] 28/2/2005 19:16

nice tick up to day

[ponty] 17/2/2005 16:21

SiRViS IT PLC
17 February 2005

SiRViS IT plc (the 'Company')

Holding in Company

Dated: 17 February 2005

The Company was notified on 17 February 2005 that following a purchase of
3,153,188 Ordinary Shares of 1p each in the capital of the Company ('Shares') UK
Smaller Companies registered under Chase Nominees Ltd (USS) currently holds
7,065,448 Shares, representing 6.19% of the issued share capital of the Company.

Enquiries:

Mark Lewis 01773 820011, SiRViS IT plc, Chief Executive

John Simpson 020 7512 0191, ARM Corporate Finance Ltd, Nominated Adviser


This information is provided by RNS
The company news service from the London Stock Exchange

it all helps