Triad Share Discussion Threads

[effiert] 25/9/2016 11:19

Agree however if the results are better then expected and a divi is announced for the future then £1+ is not out of the question

[red army] 24/9/2016 19:47

My target from the chart is 80p

[battlebus2] 24/9/2016 18:51

Cheers bamboo2...

[bamboo2] 24/9/2016 16:21

A quick reminder of this flag target,

[effiert] 24/9/2016 13:59

Someuwin fancy doing a new thread with volumes and updated info etc?

[effiert] 24/9/2016 13:58

Paul scott mentions TRD as strikingly cheap in Junes Stockopedia

hxxp://www.stockopedia.com/content/small-cap-value-report-13-jun-2016-fitb-watr-egs-trd-135317/

Triad (LON:TRD)
Share price: 32.7p (up 29.4% today)
No. shares: 15.1m
Market cap: £4.9m

Results, y/e 31 Mar 2016 - a reader has asked me to have a look at these figures.

I must say, I'm impressed. This share looks very good value for a company that has just reported very good profit growth. If profits are sustainable, then I could see this share gaining another 50-100%. It's too small & illiquid for me, and I don't really want to buy anything new at the moment.

Triad seems to be an IT consultancy, for both private & public sector clients. I'm not entirely clear what its activities are exactly.

Key points:

Turnover up 20.6% to £28.3m

Operating profit up a very impressive 112% to £980k. Quite a slim profit margin though, at 3.5% of turnover.

EPS is heavily boosted by a negative tax charge (as previous tax losses are brought back onto the balance sheet). So the jump in diluted EPS from 2.32p last time, to 7.72p this time, needs to be treated with caution.

Balance sheet - looks OK overall. Debtors has risen a lot, as you would expect from the increase in turnover. There's negligible debt, and overall it seems to have net cash of about £0.9m - pretty good.

Note the provisions for empty properties, which will be a cash outflow in due course.

They don't capitalise development spend, which is a positive thing in my eyes.

Outlook comments sound fairly good. Although presumably increasing headcount means increasing overheads? So maybe that might hit profits in the short term, possibly?

Further to the progress achieved during the year we have started the new financial year with a strong order book and healthy pipeline of opportunities. Underpinning the Group's success will be our ability to develop new and existing accounts and deliver successful outcomes for our clients.

In order to capitalise on the opportunities being developed efforts to strengthen our business model continue. A key aspect is the need to increase the headcount across the business.


My opinion - overall this share looks strikingly cheap. Just £4.9m market cap, for a business that's just reported a profit of just under £1m.

The key question is whether that profit is sustainable, or whether this was just a one-off bumper year for some reason? So more digging is needed I think.

I've not found anything untoward in the figures - the accounts look clean to me, with real profit, and positive cashflow.

Overall, it's probably too small & illiquid for me, but it certainly looks worthy of more research for any readers who delve into the really tiny end of the market. It would be interesting to meet the Directors, and better understand the business model, and strategy.

[effiert] 24/9/2016 13:53

lets all do i bit and dig deep behind the sofa then prior to the nov rush ;-)

[s34icknote] 24/9/2016 13:29

Would be good if 50 p could hold here Needs a little push . Would like to see 70 p before Nov results ! Before a 50 percent woosh on results day to over a pound !!!Am I dreaming ? Or is reality sinking in .

[bamboo2] 23/9/2016 19:39

Excellent!

[red army] 23/9/2016 19:26

Still have 80 P target

[cfro] 23/9/2016 18:15

50p held into the close. :-)

[s34icknote] 23/9/2016 16:53

Happy weekend and still cheap as chips !

[interceptor2] 23/9/2016 16:44

Agree battlebus, I will try and hold on this time also.

Even at 50p they are likely to be on a PER between 5 and 6, bonkers cheap imo.

[battlebus2] 23/9/2016 15:55

Maybe it'll hold this time.......

[netcurtains] 23/9/2016 15:54

actually this is quite strong to come back into the 50s on no news. I think people are slowly beginning to believe...

[effiert] 23/9/2016 12:58

Best to load up before it gets noticed.

Paul scott recently stated that he like TRD also

[photon] 23/9/2016 12:56

Each time I have a look to remind myself of the market cap, I have to pinch myself! Still only £7.5m... as if it is still priced to go bust, when in fact the opposite is happening.

[effiert] 23/9/2016 12:49

it will be. no reason why the shares wont be trading at £1 levels by november.

nicely under the radar also

[someuwin] 23/9/2016 12:44

This is actually a very high quality business which deserves to be on a much higher rating - imo.

"...Our footprint across the public and private sectors has expanded, with new clients including UK Export Finance, Department for Business, Innovation & Skills and Highways England. In addition, we have been awarded new contracts to deliver additional services to long established clients including Home Office, Ministry of Justice, and IMServ. We have also secured substantial increases in the call-off limits for two of our central government contracts, providing us good visibility of potential work in to the next financial year."

[effiert] 23/9/2016 12:32

not many shares in issue and small free float hence to deter buyers.

[netcurtains] 23/9/2016 12:19

spread too wide. Its as if they do not want anyone to buy.... What is going on...

[effiert] 23/9/2016 11:30

about to breakout? Buying pressure will only grow in anticipation of results which we know will be strong and may even annouce a potential divi

[netcurtains] 23/9/2016 10:42

I think with people investing in Johnson Press - shares with very very very low PE ratios are now in vogue...

None is lower than TRIAD!!!!!!!!

[someuwin] 23/9/2016 10:12

Pennant formed in the chart.

Does that mean a big move up will follow?

[s34icknote] 20/9/2016 08:34

Less than two months to go before results and to confirm our growth story !