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Real-Time news about Ssp Hold (London Stock Exchange): 0 recent articles
|nick of the north: From an insurance mag..
"There has been plenty of speculation as to the potential buyer. SSP identified the company only as a financial buyer, presumably rather than a trade buyer, suggesting a private equity house.
The sticking point to any deal is likely to be the valuation. After Open International's £276m price tag (roughly equating to a price/earnings ratio of 22), expectations have been raised that other software houses will be able to command a similar multiple.
In SSP's case, this would equate to a price of around 240p per share, a premium of 54% on its current share price, and a total sale price of around £200m. Would a buyer be prepared to pay such a hefty sum? In the post-credit crunch worldsuch a valuation would seem extraordinary."|
|lomax99: GCI comment:
Recommended as a strong buy at 136.5p last month, shares in SSP Holdings have skipped 16 per cent higher on news of an approach, and remain compelling fare based on further bid excitement as well as the group's attractions as an independent.
Following upwards momentum in the share price, the largest provider of software and services to the UK general insurance sector confirmed it is in early-stage discussions with a financial buyer, which, in well-worn form, 'may or may not lead to an offer being made for the company'.
The predator in question is no doubt attracted to the various merits of the business that we highlighted not long ago. Namely, it provides 'business-critical' systems to insurers and insurance intermediaries, with its client roster including the likes of Fortis Insurance, Norwich Union and Swinton. Moreover, its high-margin and highly cash-generative revenue model is a source of strength, combining subscription licence fees, transaction fees and long-term managed service contracts, lending the company a high proportion of recurring revenue and high earnings visibility.
Even if a bid fails to materialise, SSP is a superior business worth backing for the long-term, with its exposure to the cash-rich general insurance market as well as industry consolidation playing into its hands.
Next month, SSP is forecast to unveil annual profits of £11.6m and 10.9p of earnings, from turnover of £63.2m, ahead of £15.6m and 13.6p for March 2009. Trading on forward earnings multiples of 14.5 and 11.6, the shares still look great value and investors might consider adding to existing holdings
Market cap: £130.97m
PE Forecast: 14.5
Share price: 158.5p|
|nick of the north: Have been trying to compare this possible acquisition of SSP to the one done by Towergate last year of OpenGI for £276 million.
Can't get exact figures but assuming SSP with the acquisition of SiriusFS last year are now large than OPenGI. If SSP was to be acquired at a comparable price to OpenGI, £280 million and with 82 million SSP shares that would give a possible price of £3.40 per share. Understand the market isn't as buoyant as last year but the current share price does seem a little low. Any views on these figures?|
|nick of the north: Half year result due 5th December.
Will expect a slow walk down of share price upto and beyond this date before another rise.|
Ssp Hold share price data is direct from the London Stock Exchange