|LOL You backed a winner here Bud.|
Could you put some charts in the header?
I find the intraday and 6 month chart useful.|
November marks the dawn of a new era for the company formerly known as XKO Group, with a new name, a new sector and a new focus 'revenue assurance'.
It has appropriately been re-named Revenue Assurance Services (RAS), having sold the last part of its erstwhile divisions for £15m in October making for a gross £28.5m for the sum of the old business. This allows chief executive Simon Beart and his management to concentrate on the revenue assurance businesses acquired last year.
The group provides three services to its utility company customers: consultancy, where experienced consultants and proprietary software identify and secure un-billed debts; collections, which is telephone-based debt collection of existing debt; and metering services, where a meter-reader is sent to business premises to physically check gas meters. RAS has around 30% of the gas utility market at the moment, including customers Shell, eOn and Centrica but at three times the size, the electricity market is a significant target.
Utilities face ever more pressure to keep their costs down and RAS offers a great outsourcing option, with no clear competition yet. Although there is some opposition to their adoption from the utilities' in-house collection departments (and contracts can therefore take around two years to win), Beart stresses that his consultants' levels of success are incomparable and he is confident of adding contracts in both gas and electricity. He says the balance sheet 'is under-geared' and is pondering acquisitions.
The business is achieving 40% margins, taking £3.3m cash from £7.9m sales in the half year to September, with profits before tax of £2.1m. House broker Bridgewell has upgraded year-end numbers to sales of £16m, profits of £5.66m and earnings of 9p per share.
Growth Company Investor recommended buying the shares at 106.5p in June but, with earnings upgraded to provide a prospective p/e ratio just over 11, it's worth adding to your holding.|
|New thread for new ticker at the link below :
|Nice set of results (again) and sensible positive forward looking statements.
This company is out of synch with its peers valuation wise.
Mind you it has been this way for a long time now,
The company looks like a leaner meaner fighting machine and really ought to be re rated...... > 160p IMHO
>weatherman.... stick around as thats just what they are doing... ;-)|
|One thing that has held the stock back is that the management has choped and changed too much in the past, and there is no clear evidence of creating value from bits bought and sold. The manager is an accountant, not a business visionary able to develop assets.
I hope that RAS will now focus for the long term in its chosen area. There is huge potential in financial management for utilities, and also in carbon trading and reduction. They could install systems that monitor meters over the internet. Lots of opportunities, let us hope they now manage organic growth over the long term developing the business from the cash flow.
It they can show they are doing this I might stay around.|
|That is excellent news...watch the share price move now! :o)|
|Bloody new thread to set up again.........
I'll do it tonight, as it takes effect from tomorrow :
XKO Group PLC
14 November 2006
XKO Group plc
('XKO' or 'Company')
With effect from Wednesday 15 November 2006, XKO will change its name to Revenue Assurances Services plc and have a new ticker symbol 'RAS'.
XKO's main business activities are now centered on revenue assurance activities
following the acquisition of UBM and Powerdebt in 2005 and the disposal of the
Software and Services Division earlier this year.
This information is provided by RNS
The company news service from the London Stock Exchange|
Right on cue......Details about new name & ticker.
|I have added the T&G comment today into the header, makes it easy for anyone to find now.|
|Looks to me a Directors buy somewhere in there....will know tomorrow
Thanks Papal...think they need to change the ticker as well|
|I am not sure if the ticker will change or not. The name has already changed.|
|i'm in today.|
|Anyone know when does the name change take effect? That should help bury the past ghosts imo|
|Thanks edcrane. I think sentiment will turn eventually, maybe soon.|
Bridgewell have just come out with a 150p target price, so the consensus is 145p them :)|
|Teather & GReenwood comment following results .... raising forecats and BUY recommendation
When Will the Market Recognise the Value Here?
Revenue Assurance Services Plc, formerly XKO Group, has reported interim results this morning, its first since the disposal of the ERP software business and therefore completion of its strategic transformation into a focused provider of revenue assurance services, currently to the utility sector. H1 results, stripping out the contribution from the disposed software business, delivered revenue of £7.93m, adjusted PBT of £2.82m and diluted EPS, on the same basis, of 4.73p. An interim dividend of 0.4p was awarded representing a 52% increase over the previous period reflecting the strength of underlying growth and cash generation.
On the back of this, we have raised our FY 2007 revenue target from £14.6m to £16m, and increased our clean PBT forecast from £5.25m to £6.25m. Our EPS estimate rises c11% to 9.8p, and we have moved our total dividend forecast up from 1.3p to 1.8p. We have been less aggressive with the revisions we have made to our FY 2008 and FY 2009 forecasts, simply as acknowledgement both of the fact that timing of unbilled error discovery is, by its nature, difficult to predict, and to reflect the fact that there was already the assumption of new contract wins underpinning our previous numbers. Our FY 2008E EPS figure moves up to 11.5p, from 11.2p, while our FY 2009E number rises to 13.8p, from 13.6p.
Looking ahead, there is much to attract the investor to this stock. The 'new' entity is now a clearly focused business, operating within a premium growth market with both organic and acquisition-related opportunities available to sustain and, potentially, enhance this growth profile. The balance sheet has significantly strengthened, the business model is highly cash-generative (cash conversion in H1 was c103%), while any concerns over the re-tendering of contracts have been overblown. A calendar 2007E PE of 8.5x also looks outstanding value against a support services sector where multiples in the mid to high teens are common. We are retaining our 140p target which represents a multiple of only c12.5x calendarised 2007 earnings and firmly reiterate our Buy recommendation.|
|Well I got back in today on those results.XKO now ticks every box in my investment creterion:
-high barriers to entry
-growing market place
-high operating margins
-very low PEG
-a robust balance sheet
A rerating should start soon imo.
PS..I think the Board should remove one more layer of management to bring operating margins near to 50%..which is entirely feasible|
|50K MM buy in there earlier, should be and deserves to be a decent reaction to very good results.
We should break up through 120p I would hope in the near term.|
|Nice confident outlook statement.
Recent corporate activity has transformed the Group's prospects and competitive
position. The Revenue Assurance market is buoyant, driven by the cost pressures
facing our customers and the complexity of their processes. The Group now
enjoys low levels of gearing, strong operating cash flows and competitive
margins. Volumes with new and existing customers are encouraging. The Board is
confident that further progress will be made in the second half.'|
|Still room for strong dividend growth as annualised increased dividend covered 5 to 6 x.|
|About time they increased the dividend.|
|Good set of figures, single digit p/e, strong balance sheet with ability to make acquisitions for cash hence no dilution, strong cash conversion, quality customer base, handsome profit margins at the operating level 34%, 52% leap in dividend which would expect to be repeated for the full year, well covered. Its been a long time but looks well set for future growth.|
|Should be a bit easier, post these results, to clear the overhang that's plagued this share.|
|Looks really good,the volumes with new and existing co,s is the best line in the results back above £1.00 easily|