Ssp Hold Share Discussion Threads

[engineer66] 28/7/2008 14:06

Thanks mud for drawing my attention to SSPH. A good company and a rewarding investment. I'm almost inclined to buy some more with an offer price of 187p and a bid of 190p. Its a very modest but adequate return. Say at least 1.5% over 3 months at worst, may be over 2 months so a return 6 to 10.5%. I am looking at Tenon TNO just now.

[wjccghcc] 23/7/2008 09:48

Yup. Nice return. Will do me.

[mudbath] 23/7/2008 08:56

Well O.K.,£1.90 then. That will do very nicely !

[mudbath] 22/7/2008 20:56

Between 180 and 222pence woud be my target-IF a deal is concluded.So call it £2.01.

[nick of the north] 26/6/2008 10:11

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] 24/6/2008 12:40

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

[lomax99] 24/6/2008 11:39

Decided to dip my toe back in, also looking for £2+.

[nick of the north] 24/6/2008 09:17

Suppose it's to be expectect to see a small drift downwards until we get some more news as nervous PI's take some profit. Still believe this will be above £2 before the deal is complete (if it completes). IMHO.

[keepitup] 19/6/2008 11:20

Nick - this is yet to go sigficantly higher i feel. Just healthy consolidation, if i had spare cash i would top up now. Great opportunity.

[nick of the north] 19/6/2008 09:10

Will have to see whether any other buyers are interested in joining the party now that a possible bid has been announced.

[keepitup] 19/6/2008 09:05

Thats a whole lot more than now

[tole] 19/6/2008 08:56

Read comment from broker yesterday on the news - they dont expect any real premium to the current price, (8.5x 2009e EV/Ebitda) Primarily based on the facts that the interested party is a financial buyer, current debt market state, and recent NorthgateInformationS/Civica deals.

[walker10] 18/6/2008 18:56

Uncharacteristicly quiet Mud, I should have followed you but didnt, what with this and FLO, UMM!! what else are you holding?

Are you still in STL because looking at the volume today thats going to make you the treble. Quite a feat in this market !!.

[nick of the north] 18/6/2008 16:55

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?

[keepitup] 18/6/2008 14:23

we should expect an RNS any day now re July date prelims, well whatever the bid its going to be siginificantly more than now as the company is way undervalued. bidding war sounds good!

[nick of the north] 18/6/2008 14:07

Have looked into Towergate and they acquired OpenGI who are a competitor. Wouldn't have thought they'd be allowed to acquire SSP aswell.

[lomax99] 18/6/2008 13:52

Towergate would be my guess, wish I had not sold these a little while back.

[nick of the north] 18/6/2008 13:43

Suppose it depends whether this sparks interest for other possible buyers. Could be a lot higher if a bidding war ensues.

[keepitup] 18/6/2008 13:24

at least 2 pounds i would imagine

[nick of the north] 18/6/2008 13:07

LONDON (Thomson Financial) - SSP Holdings Plc. confirmed that it is in talks with a financial buyer, which may lead to an offer being made for the company.

However, the software services company said the discussions are at an early stage and there is no certainty that they will result in a formal offer.

[e-mail] tsm


There we go.

[keepitup] 18/6/2008 11:33

who knows, but someone is keen on making a position

[nick of the north] 18/6/2008 11:09

Loads more coming KeepItUp. Would love to know why.

[keepitup] 16/6/2008 12:40

Lots more to come imo

[nick of the north] 16/6/2008 09:24

The upward march continues. What's going on?

[mudbath] 11/6/2008 13:09

Could be Nick of the North.The trades cetainly were significant-and sales.