Bond International Share Discussion Threads

[boadicea] 24/12/2008 00:00

We are seeing the beginning of the process of the weak falling to the strong at knock-down prices (£100k in this case.) The earn-out is only fair compensation for the sellers if things turn up and Bond makes a go of it.
Bond looks like a survivor and such rationalisation must be good for their longer term outlook.

[lord gallivant] 14/12/2008 19:57

Big question is: how much is in the price?

[boadicea] 14/12/2008 19:54

jon - I get your point although with interest rates low there is less advantage in hanging on to cash and delaying payments, especially if it risks the viability of a key supplier. I was actually referring to default such as by insolvency and in general terms across industry, not just delay.
As you say, Bond is possibly less exposed to likely defaults than some other software companies given its particular list of clients - e.g. they don't heavily depend on the Woolworths of this world, I think. (Eftpos/retail software may be a particularly hard hit area??)

[jonwig] 14/12/2008 07:54

I think I should have added that I am, in fact, a holder (at 50p), and just trying not to get over-hopeful at present!

" ...provided not too many customers default on contractual/recurrent obligations."

True - but their client list is pretty strong! (It won't be easy to get Tesco to pay its bills on time, I imagine!!)

[stefield] 14/12/2008 02:26

maybe they could reconfigure the software from recruitment to redundancy, make a fortune . :)

[boadicea] 13/12/2008 21:09

jon - Fully agreed that recurring revenue is a key support for companies in this and the IT field generally.
If recurring rev can cover base costs, then by battening down all expenditure hatches survival through to brighter times is virtually assured, provided not too many customers default on contractual/recurrent obligations.

[jonwig] 13/12/2008 12:24

Boxwellian - basic eps for 2007 were 11.66p, and H1 2008 eps of 3.1p were down from 4.7p in H1 2007.

They've also said (at H1 stage) that there could be some problems with contract timing, which is worth taking pessimistically, and that "transition of sales model will hold back margins and profit in the short term, in return for improved forward visibility of earnings and increased margins".

I'd reckon eps of 9p for 2008 would be good going, and I'm expecting a trading update at the end of January.

That said, it's not exactly a swinging sector at present (even relatively), the order book is excellent, and the balance sheet fine (strip out goodwill and assets are £16m against MCap of £13m).

I think the last thing they should be doing is increasing the divi despite the good cover, as 2009 is likely to be a poor year. The key thing I'll look for is progress on their promise to improve the proportion of recurring revenue.

[boxwellian] 13/12/2008 02:41

P/E ratio could well be approaching 2. Dividend increase to 2p would be encouraging...

[jonwig] 10/12/2008 14:33

Kruger - it's not as though there's any volume to speak of (which would be a concern), so a few small sellers leave MMs with more stock than they're keen to hold.

I bought some at 50p, "at the bottom" as always! But I'm willing to add, as and when the right signals are given.

[kruger2004] 10/12/2008 14:23

can't believe what's happening here- they have a december year end and haven't issued a profits warning so that puts them on a p-e of around 3 now.
What's going on?

[jonwig] 04/12/2008 08:46

Followed by RNS this morning from Bond!
With a grudging appreciation from the share price.

I suppose software companies are latecomers to any recovery in the economy or share prices. Same with the recruitment sector.
Anyone have a different view on that?

[boadicea] 04/12/2008 08:45

Readers will have a hard time deciphering the version on advfn. Try this instead -

[sper] 03/12/2008 12:54

nice announcement in the recruitment sector today for Bond

Retail giant Tesco has agreed a deal with Bond International Software to use its online recruitment and applicant tracking systems.

Bond Talent will be introduced at Tesco's UK head office operations based in Cheshunt, Hertfordshire, where 300 external hires and 400 internal moves are expected over the next year.

The system will be incorporated into Tesco's pre-existing recruitment processes so as to provide a robust infrastructure which will provide greater visibility and access to information.

Tim Richards, managing director of Bond International Software, says: "We have extensive experience in meeting the recruitment needs of the retail industry and in providing effective talent management solutions to top brands. The fact that Tesco have undertaken exhaustive research and chosen to partner with Bond is further testament to our ever-growing presence in the corporate e-recruitment market."

[jonwig] 04/11/2008 14:20

Googling "Bond International" gives lots of stuff like James Bond, International spy ...", but one (a month old) is for BDI:



What caught my eye was that the boss of TeamSpirit is called Roger Moore.

[masurenguy] 31/10/2008 14:55

Slipped a further 10% over the past 2 weeks but it could have now bottomed at 50p !

[boadicea] 17/10/2008 18:41

There share must have had some highly distressed holders. We can only hope they're mostly out by now.

[boxwellian] 14/10/2008 17:07

Sales £15m
Gross Profit £14m
and more and more recurring Income

[williebiz] 06/10/2008 11:38

Looking tastier by the day

[napoleon 14th] 23/9/2008 12:57

Signed it, Malkie.

Shorting scheisters should be shot!
LOL

It just took a near-global meltdown for "them", FSA & US,
to find the B-R-A-I-N-Z & B-A-L-L-Z to see that & do it!

Otherwise, still long BDI since '05.
Safe & sound, so back to shleeepzzzzzzzzzzzzz!

[boadicea] 23/9/2008 08:31

rivaldo - Just arrived here with identical quote on my clip-board!

[rivaldo] 23/9/2008 07:35

Interesting broker comment from Oriel received via a market round-up e-mail from UK-Analyst:

"Our recommendation remains unchanged at 'buy' despite the downgrade as the long term prospects for the group remain encouraging and the quality of the earnings is definitely improving," commented Oriel Securities. "As the market appreciates this change we expect to see a re-rating from the current PE multiple of less than 8, and an EV/EBITDA ratio of 5."

[rivaldo] 22/9/2008 16:45

Hmmm...let's at least get our facts right (per lynnex's post).

The 14.5p EPS broker forecast is prepared on figures adjusted for intangible amortisation, as virtually all sensible broker forecasts are these days. BDI achieved 7p adjusted EPS in the historically weaker H1 (and with an acquisition to include in H2), i.e almost 50% has been achieved already.

And how much of the debtors figure is "other receivables" rather than just trade debtors, i.e the debtor days figure quoted above is misleadingly high? Worth a look at the last finals for a guide methinks.

BDI did actually generate £3.1m cash in H1 from operations - the reasons for cash remaining the same are outlined in the statement, i.e acquisitions, dividends etc.

The value in BDI lies in its high recurring income, global market leadership etc etc, as well as decent fundamentals. It doesn't exactly stretch the brain to note that the current environment is bad for recruitment companies, and BDI have stressed caution, but then that's why BDI presciently moved into other areas and sell products which reduce costs for corporates - a nice selling point in times like these.

Plus there's all those lovely large long-term contracts with Michael Page, Adecco and Vaco giving rise to a large order book.

EDIT - snap boadicea!

[boadicea] 22/9/2008 16:41

lynnex - A couple of points on your comments above.
The receivables may look high but on your simplistic assumptions the "103 days" is actually down from 123 days over the half year. There is probably significant contractual seasonality in these figures with specific efforts being made to tie up capital (i.e. system) sales before the close of a 6-month accounting period resulting in an exaggerated but not necessarily long term carry-over of debtors.
As explained in the narrative, cash flow includes the £1m cost of an acquisition -

"The group's net cash position remained broadly the same at around £1.4m. This follows our acquisition for cash of £1.0m of the trade and assets of Team Spirit Software and Headcount Services and our investment of £1.4m in the development and enhancement of our product range. These together with the dividend payment of £0.5m accounted for the cash which we generated through operations in the first half of 2008."

[malkie] 22/9/2008 16:09

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[slapdash] 22/9/2008 16:08

one to avoid for now me thinks... slap