Total Systems Share Discussion Threads

[davidosh] 16/9/2009 11:14

8trade....Agreed absolutely dire spread. The directors do not seem to be buying either even at these low levels with such asset backing. Maybe they see the company falling into heavy losses.

It is the AGM this Monday...Anyone attending ?

[8trade] 16/9/2009 10:43

One market maker winterfloods quoting 16-23p !

More or less is saying dont invest no matter how good it may appear.

Will be virtually impossible to make money unless the stock jumps
50% and then it will be a small 10% profit.

Avoid.

[hugepants] 25/8/2009 22:07

Recent Fool thread. TTS - Whats The Point?

[hugepants] 25/8/2009 21:53

Dan's Investment Blog

Jottings about my investments
Sunday, 16 August 2009
Total systems
I've been having a look at a tiny company listed on the main exchange: Total Systems. Its profit record is patchy, but its share price is underpinned by a fantastic balance sheet.

Current assets
Trade and other receivables £1.45m
Cash at bank and in hand £3,35m

Non-current assets
Property, plant and equipment £0.9m (but see below)

Current liabilities
Trade and other payables £0.99m
Current tax liabilities £0.18m

So according to the balance sheet this company is worth £4.5m. However, they own outright a 6600 sq ft office in Central London, EC1. This is listed on the balance sheet at cost of £742,000. It was bought in 1987, and property prices have increased somewhat since then! I found a property nearby, 50% larger, on the market for £4m. That would suggest a value for Total Systems' office of around £2.7m.

Property in this area can be rented for around £27.50 per square foot. A 6600 sq ft property would therefore cost £180,000 per year. The long-term average commercial property yield is 6.4%, which would translate to £2.8m.

Let's have a stab at their being around another £2m of hidden value on their balance sheet. Not to mention their intangible assets - none of their R&D appears on the balance sheet, and they are carrying no good will.

So it looks like Total Systems have around £6.5m of tangible assets, no debt, and presumably some intangible assets to boot. The market capitalisation is £2.5m at Friday's close of 23.5p.
Posted by Dante at 03:59

[hugepants] 25/8/2009 21:48

Some good comment at the Fool. This could see these shares re-rated.


"...Then there's the little fella Total Systems (LSE: TTS). He'd be the first to admit he's bin a total waste of time so far, but the boy has strength in depth..."

[davidosh] 19/8/2009 22:47

egoi...I must say it did surprise me when you said you had sold as there were a few other boards where you said you prefered TTS to other similar small caps. You always fought your corner over here.

[essentialinvestor] 19/8/2009 18:41

"Glad I did choose to sell.." LOL

Having highlighted the positives on this thread for nearly 2 years
and waxed lyrical about the Capita contract at lenght.

[hugepants] 17/8/2009 14:34

egoi
From the recent finals TTS has 32p cash per share and 34.5p net working capital per share. Last weeks update says cash has remained the same after Q1 despite posting a loss for the quarter.

[egoi] 14/8/2009 13:30

Glad I did choose to sell this, as I said before, but what have we now? A share price barely 20p, cash 'at a similar level' to previously (29p a share), a property, no debt and a slightly better second half hinted at.

Now that's cheap imho!

[cyberpost] 14/8/2009 10:44

Dont know if Total are in similar line of work as Eg Solutions (EGS). EGS are doing quite well in this torrid climate and winning contracts from big clients (Abbey National etc)., A big contrast to what Total are experiencing.

[davidosh] 14/8/2009 10:40

RNS Number : 4577X
Total Systems PLC
14 August 2009


Total Systems plc - Q1 Interim Management Statement


Total Systems plc ('the Company') suppliers of cost effective and flexible software systems to the financial services industry, primarily in the insurance and warranty sectors is pleased to provide its Interim Management Statement for the quarter ended 30 June 2009.


The Company's trading over the period from 1 April 2009 to 30 June 2009 has been weak with turnover significantly down on the same quarter in the previous year. This has resulted in a loss being made for the first quarter.



The second quarter of our financial year is unlikely to see appreciably higher activity than the first quarter and it is likely that a considerable loss will be incurred for the half year. However, with the cost savings made in the first half of the year the bottom line performance for the second half of the year should show an improvement over the first half year. The cash position at the end of the first quarter has been maintained at a similar level to that reported in the Annual Report & Accounts.


Existing client business is likely to be weak overall in the current financial year and sales prospects are expected to take longer than normal to convert to sales, though recent indications are that the decline in business is now levelling out. Activity levels are likely to increase in the second half of our financial year based on current information available, but by how much it is impossible to forecast with any accuracy. Nevertheless, turnover for the financial year ending 31 March 2010 is likely to be substantially less than the prior year.


Total has always maintained a strong balance sheet as a counter to the inherent uncertainty and risks of technology markets. In the current turbulent economic climate this policy stands us in good stead. Our financial position remains healthy with no debt and reasonable cash balances to support operations. The Company owns its office premises outright.

[cfb2] 27/7/2009 17:23

scburbs - 27 Jul'09 - 08:38 - 354 of 355

Understandable precaution when they only have 32p per share of cash!

Completely understandable. When they were renovating their premises they found some cracks in the floor and, as a precautionary measure, have assumed that it's a gateway to hell opening up. Sheesh!

If the future is looking so bad why don't they just close the business and return the money to shareholders. Perhaps because they haven't managed to move all the money into their pension funds yet?

Seriously, the majority shareholding by the management who are content to freewheel has scuppered any possibility of a profitable investment. I've never seen a better example of a company that should delist.

CFB

[weatherman] 27/7/2009 14:23

New Bluescape product range and increase in sales staff offer hope once economic uncertainty is past.

[scburbs] 27/7/2009 08:38

Understandable precaution when they only have 32p per share of cash!

[pugugly] 27/7/2009 08:33

no dividend in view of lack of forward clarity.

[pork belly] 20/7/2009 11:50

Five Very Cheap Micro Caps
20 July 2009

[liarspoker] 07/7/2009 13:21

I like ( in alphabetical order ) APG, AVR, HDT & TON as net working cap stocks. Although most have risen to over N.W.C they are still well below tangible asset value with 3 out of the 4 paying a divi ( AVR is still in its investment phase ).

[egoi] 07/7/2009 13:13

HP I think the statement today just attempts to 'justify' the cashpile; hence why I doubt the divvy. I had an unexpected need for extra cash of my own dd while back, had to sell something.

[hugepants] 07/7/2009 13:11

It will be interesting to see results on 27th July but I dont see how TTS can justify NOT paying a dividend. 4p earnings so they should have approx 32p per share in cash now.

[davidosh] 07/7/2009 12:45

egoi....When did you sell out ? I thought you were a long termer here and felt comfortable with all that cash.

The growth companies with cash are the best...MUBL,LNG,LOQ,GVC and FDMG etc The latter two actually pay decent dividends and MUBL and LNG should commence one this year.

[egoi] 07/7/2009 12:06

HP yes agreed, they usually come up with something; however I'm glad I'm not holding at the moment as this does, as Dd says, knock any prospect of a divvy on the head for some considerable time.

Incidentally I've been buying into LIN for anyone interested. Genuinely very mild profit warning (they will make more bad debt provision, that's all) means a p/e of 4 instead of 3; but it is another one with almost its market cap in cash; there will be in October the question of whether bondholders convert, but either way the company will be well served.

If they didn't convert, eps would be about 18p on a share price of 29p; if they did, then they will have 2/3 of market cap in cash and eps about 7-8p as well as good cash reserves still.

[davidosh] 07/7/2009 11:57

I know I always ask this but....'What is in it for shareholders?' Sadly there simply is no outer. No dividend so nothing to give me say 5% return whilst sitting and hoping. The spread is awful and the growth in share price very unlikely.

[hugepants] 07/7/2009 11:51

Not really sure how many steps back or forward rossco. £0.6M pre-tax comes out at 4p earnings after 30% tax. But it would have been 5p per share but for the exceptional £140,000 spent on the property.

Its a really disappointing stock this. When things are going well the company always plays it down and the house broker usually woefully underestimates earnings. When things arent so rosy they make it sound like armageddon is imminent. But then "unexpected business" usually materialises later in the year and the company ends up posting a decent profit.

[rossco] 07/7/2009 10:13

One step forward then two steps back.

[hugepants] 07/7/2009 08:42

Another classic from TTS: