Touchstone Grp Share Discussion Threads

[tole] 23/3/2007 09:27

"Keith Birch's Touchstone jumped 7p to 190p as dealers gave the thumbs up to its £2.977m acquisition of ETC Global Solutions, a Microsoft business solutions consultancy."

[charterhouse3] 22/3/2007 12:56

Excellent acquisition.

Market waking up to the news now !!!!

Onwards and upwards to 200p and beyond !!!!!!!

[glasshalfull] 22/3/2007 07:50

I concur.
Looks like an excellent acquisition on good terms.

Regards,
GHF

[hazelton] 22/3/2007 07:44

Indeed , I am not much of a judge of these things but it all didnt seem to cost that much and it improves the strategic position. I think its important to get good knowlegable people onboard in this game. The do not grow on trees. My initial reaction was positive.

[tole] 22/3/2007 07:37

Yes looks nice and earnings enhancing from the off.

"Management accounts for the 9 month period to 28th February 2007 show an operating profit of £413,000 on turnover of £1.7m. Subject to ETC achieving earn-out targets, the Board anticipates that this transaction will be earnings enhancing in its first year."

[hazelton] 22/3/2007 07:35

Acquisition of ETC Global Solutions Ltd

ETC is a small Microsoft consultancy. Firming up the Microsoft thing.

[glasshalfull] 21/3/2007 23:39

Hi Tole, just noticed your post.

I also found the wording slightly strange.....part of it relates to disclosure as "Below 5%" which I interpreted as a reduction on my initial read.

I've been through my own notes and don't have Gartmore listed, so nice to see they now hold over 7%.
With the Birch family holding 49% and declared Institutions holding 37%, this only leaves a free float of 14% which I'm quite sure there are quite a few tightly held by a number of PI's.
Any positive statement could therefore see these sharply higher with such a small free float (rose tinted specs on again :-)

Good results released by Oracle tonight.
Further evidence that market is very strong.


Regards,
GHF

[tole] 21/3/2007 18:01

Thanks GHF - Yes TSE are always quietly releasing these new contract wins through their website...and as you say in relation to KBT , here we have an order almost twice the size!!

One thing if anybody can help on this...



Appreciate these holdings announcements are compulsory disclosures with a number being reported thes last few days as "Re-notification under the Disclosure and Transparency Rules" or "restating their historic interest in the Company in compliance with the FSA's new Disclosure and Transparency Rules"

Yet in relation to todays holding annoucenment - I cant say I saw Gartmore before having a stake here - and yet they are reported to having 935,648 which is 7.784% ??

Or am I reading this wrong?

These are the major holders that I have down...

Major Shareholders %
Birch, Keith Gerard Joseph 24.5
Birch, David Philip 14.0
BNY SG Nominees 9.66
P Birch 9.43
HSBC Global Nominees (UK) 9.12
Giltspur Nominees 5.79
Societe Generale asst mgmt UK 5.24

[glasshalfull] 21/3/2007 17:20

Thanks for the info Tole (just updated the NBI thread with some good news :-)

I find it encouraging and also amusing that TSE have simply announced the order via their web site ie. without too much fanfare, yet KBT released the following RNS this morning to flag up a £650k order for the installation and integration of a Microsoft Dynamics system.



More importantly is the business that Microsoft Dynamics appear to be capturing in the market. With TSE No 1 partner in the UK then I anticipate that forthcoming figures will testify to the buoyant market.

Regards,
GHF

[tole] 21/3/2007 09:46

Nice folio review over on TMF late yesterday - with many stocks mentioned that I hold or have held recently. Good to see Touchstone TSE get a mention - a good favourite of many over there.

[tole] 21/3/2007 08:17

Noticed this reiteration from a few days back.
Broker Brewin Dolphin says buy and has a 12-month target price of 250p.

2007, 2008
Date, Rec, Pre-tax, EPS, DPS, Pre-tax, EPS, DPS,
Brewin Dolphin Securities 13/03/2007 BUY 3.09, 18.6, 4.20, 3.62, 21.3, 4.40

[tole] 20/3/2007 11:45

Delayed buys coming through from the flurry at 9.38 this morning (or perhaps rollovers) - I picked up some more also - not showing as yet.

[tole] 20/3/2007 09:51

Yes nice find (posted it accross on the CHR thread too) - and puts things into perspective here with TSE currently trading on a lowly forecast 2007 PER of just 9.7 and 2008 PER of 8.5.

Is the penny dropping here at last - with an imminent trading update we should hopefully start a run-up through 200p. Only a matter of time imho.

Nice to see some more interest here again :)

[glasshalfull] 18/3/2007 23:20

I've posted a copy of the following snippet on the MXM thread but thought it relevant here.

"The Times" yesterday commented on MXM's possible take-out value in relation to the proposed CSW offer.
note:- looks like they are basing the 370p figure quoted on a PER of 15 on the projected EPS of 25p for the current year (31/5/07)





"Computer Software Group firmed 6p to 147p after receiving a management-backed takeover approach pitched at 150p a share. Navid Malik, analyst at Collins Stewart, said the price looked low but argued that management support was crucial to any proposal, making a counterbid seem unlikely.
That turned attention on peer software consolidators such as Maxima, up 1p at 286½p, and Chelford, unchanged at 146½p.
Seymour Pierce analysts said that Maxima would be worth 370p using the same take-out multiples."


The proposed management buyout of CSW highlights the low valuations of several peers, of which Touchstone should surely be worthy of some consideration.
If (a big IF) TSE were to command a PER of 15, then based on current estimates of 18p - 20p EPS(the latter is my own) for the year just ending, provides a target price of 270p - 300p which is considerably higher than the present....well at least a 50% uplift from here!

Just my simplistic view FWIW.

Regards,
GHF

[glasshalfull] 11/3/2007 07:36

MXM's recent acquisition of SevenThree Limited bodes well for TSE in respect of the growth in sales of Microsoft Dynamics CRM.
(note SevenThree has a customer base of almost 50 customers and distributes and implements Microsoft Dynamics CRM and Pivotal CRM in the UK and Ireland - only recommended partner for Microsoft CRM in the Construction Industry)





I especially liked the following comment from CEO in the RNS

"We are encountering strong demand for Microsoft CRM software solutions across all the markets in which we operate."

This bodes well for TSE seeing as they are the Number 1 UK partner for Microsoft Dynamics CRM.
Hopefully a trading statement in the not too distant future.


Regards,
GHF

[tole] 27/2/2007 15:49

Nice 5% drop on 5k traded so far. lol
Looks like we'll get the op to add a few more before the y/e update :)

[tole] 21/2/2007 11:09

Seems Hardman agree with you from their latest update in their Feb commentary.....not long to wait for a year end update now imo.

TOUCHSTONE
Touchstone shares are trading close to 52 week highs at around 190p and the software and services environment appears to remain strong. We expect to have more news next month as the company approaches its year end.

Touchstone TSE Price p. 191.5
AIM IT Cap £m 22.2
Y/E March, Sales £m, Dec Pre-Tax, Adjusted Profit, Adj EPS, PER, Divi, Yield
2005A 17.3 0.0 1.2 8.9 21.5 3.6 1.9%
2006A 23.1 1.1 2.6 15.8 12.1 4.0 2.1%
2007E 27.2 1.2 3.0 18.1 10.6 4.5 2.3%
2008E 30.2 1.9 3.6 21.4 8.9 5.0 2.6%

[glasshalfull] 13/2/2007 16:26

Nice to see a few further buys coming in.

I've a feeling that we are at the cusp of a breakout.....:-)


Regards,
GHF

EDIT:- That was before I saw the 25k T trade at the end of the day. May have to wait a while longer. LOL.

[glasshalfull] 13/2/2007 15:45

I've been adding a few more (seems to have ticked up slightly on my last purchase a few minutes ago).
Feel that TSE still offers fantastic value at the present price.

Carmensfella over on T.M.F. is still pleasingly bullish on the stock and I also anticipate a trading statement within the next month which should confirm that the company will at least have achieved estimates circa 18p+
I still believe they will achieve around 20p EPS but either way you look at it they are on a PER around 10 with net cash on the balance sheet with strong order books and decent momentum as evidenced in the recent contract announcements Tole kindly pointed out.

Link to Carmensfella's latest post:-



Regards,
GHF

[glasshalfull] 08/2/2007 09:31

Keep 'em coming Tole.

TSE's year end isn't until end March and last year they released bullish Trading Updates in March and April.
Who'd bet against the same this year.

As ususual, a matter of being patient as all the signs indicate that they will meet or more probably exceed expectations.
From earlier notes I have 20p EPS pencilled in and at this point in time I have no reason to change my mind.
With a healthy cash balance and operating in a growing market this is a very strong hold at the very least IMHO

Kind regards,
GHF

[tole] 08/2/2007 08:42

And a cracking piece on their no1 spot as top UK partner for Microsoft Dynamics CRM...


1 Million pound contract for Microsoft Dynamics CRM sees Touchstone Group take top spot based on 2006 revenue performance

7 February 2007: Business consultancy and software solutions provider, Touchstone Group, has taken 'pole position' as the official Number One UK partner for Microsoft Dynamics CRM based on license revenue sales generated between July and December 2006, which reflects Microsoft's first half of their financial year. This confirms Touchstone Groups' commitment to delivering CRM based around the latest Microsoft technology.

Touchstone Group sealed its position as the market leader with a recent £1 million contract win, which pushed it head and shoulders above its competitors, making it the undisputed champion of the CRM space.

Adrian McNay, Divisional Managing Director, Touchstone Group, comments, "Our position as the Number 1 Microsoft Dynamics CRM partner in the UK is an excellent achievement and reflects the commitment and professionalism of all of our team. The depth of knowledge of our consultants and their understanding of both the market and of the Microsoft Dynamics CRM system has been the major differentiator in the past year of business growth and development. We are delighted to have achieved this accolade and I would like to personally thank the dedicated and experienced team of people at Touchstone Group who continue to play an integral role in the success of this organisation."

David Brown, CRM Channel Development for Microsoft UK Limited, comments, "This has been a fantastic year for Touchstone Group and they are to be congratulated for their achievements. We have seen their business grow as a direct result of the undoubted quality of the consultancy services they offer. The latest major project win is a reflection of this quality and moves them up into the forefront of their market alongside the major UK consultancies."

[tole] 08/2/2007 08:39

Some more contract news off their website...

Forum for the Future implements TIMEatWORK from Touchstone Group to improve audit efficiency


7 February 2007: The UK's leading sustainable development charity, Forum for the Future, has placed an order for a new time recording and planning system - time@work from business solutions consultancy, Touchstone Group.

The new time recording and client billing software is set to improve the time management and billing efficiency for over 75 users, helping to ensure that the charity's resources are being used effectively. The new time@work software will integrate with Forum for the Future's financial and management accounting software – SunAccounts – and will become an integrated part of its IT systems.

Forum for the Future works with 150 partner organisations in business and the public sector to find ways to build a future that is environmentally viable, socially just, and economically prosperous. Forum for the Future has been operating as a registered charity for 10 years and has more than 75 employees operating from two offices in Cheltenham and London.

John Bishop, IT Manager, Forum for the Future, comments, "Forum for the Future's income primarily comes from grants for projects plus partnership fees from business and public sector organisations who work with us to develop their skills, tools and commitment to act more sustainably. It is vital for our status as a not-for–profit organisation that we can calculate and justify how many hours and what cost is going into any project. Our previous time management and billing system was causing us significant support issues, and was extremely difficult to work with technically."

Bishop continues, "Touchstone Group presented us with time@work as the solution to our problems and after thorough evaluation, we decided to do a complete swap."

Bishop concludes, "From the offset we have received a heightened level of support from the team at Touchstone Group. We are much more positive about time@work's technical abilities and believe that it will perform to a much higher standard. After we have fully implemented the product, we predict that we will benefit greatly from a reduced number of support calls and as a result our IT will be able to operate more seamlessly, efficiently and proactively."

Adrian McNay, Divisional Managing Director, Touchstone Group, adds, "We are still at the early stages with Forum for the Future, but we are working with them very closely to ensure that they receive the very best advice and support. This is a very extraordinary organisation. We are very impressed with the advice and guidance that they offer and understand their unique position in the not-for-profit sector. We look forward to guiding them through each phase of the project development."

About Forum for the Future
Forum for the Future is the UK's leading sustainable development charity. Our aim is to show that a sustainable future is both possible and desirable. We work with forward looking organisations in business and the public sector to find practical ways to build a future that is environmentally viable, socially just and economically prosperous.

[glasshalfull] 07/2/2007 16:02

Thanks for the update Tole.

Nice to see the share price strengthening.
With MXM's rise yesterday, TSE now look to offer best value in the sector (although I'm holding on tightly to both:-)

Kind regards,
GHF