Bond International Share Discussion Threads

[markt] 06/1/2011 09:15

....now I see who Liontrust are....ticker LIO..investment fund manager/operator..1200 million assetts under management !

results in 1st quartile....

43 staff

net cash and assetts of the fund manager itself of 15M...so it could almost buy Bond from its nett cash, if anyone let them !...

Bond with 100000 users (ref. Bond results)....too cheap...at some time it will go up imo ...just needs 1 small announcemente of 'all is ok at Bond, or a contract win or contract extension....

in addition to being very cheap (1/2 of turnover)....good chance of new sales because of the acquisition of VCG or whatever it was called....and possible beenfits in products section...

[markt] 05/1/2011 13:36

..anyone know who Liontrust is/are ? (RNS that have 1.7M shares)

[sper] 13/12/2010 08:55

In the announcement they talk about VCG and what VCG has. I believe, and it is only a belief, that VCG will give them access to the following:

Contract payroll (temp payroll) and client billing, something that Adapt did not do and a major limitation to a whole operation package.
Industry pecific expertise and a demonstrable track record in these markets

Beyond that, unless VCG has something else in their products that is worth buying, I think the major wins will come from consolidating the product range and taking benefit of upgrade revenue and recurring maintenance revenue

[markt] 12/12/2010 21:38

....continuing my last post...

what software from VCG will be used in the medium term in the recruitment sector inside the combined BDI/VCG ?

noting the following statement....(Bond adapt for front office functions and Oracle for back office for super overall solution)

Richards continues, "Now our global clients can get the best-in-class Oracle Peoplesoft for Staffing back-office solution integrated with the terrific front-office business process improvements available through Bond Adapt as a single, powerful solution."

so what purpose will the VCG software serve ?

anyone know about this ?

[markt] 12/12/2010 21:05

Anyone understand the deferred tax situation of BDI ?

BDI can defer paying this tax until it suits them ?...or the taxman can ask for it at any time ?

Anyone understand the software aspects of the acquisition of VCG ?
.....are the products of VCG competing with BDI products since both in recruitment software sector.....does it mean that some BDI or VCG products will not be updated and that in the medium and long term the company will only update the best product from BDI or VCG ?

Will there be one off costs, to affect/hit the next BDI financial report, due to layoffs at VCG ?

...in any case I assume that the boss of BDI is still earning over 1k pounds per working day....300k/year if I remember correctly...about the same as the after tax profit of the company

[boadicea] 09/12/2010 10:18

markt - I partially agree with your assessment of the balance sheet and that BDI could experience a cash squeeze. Where I disagree is on the tax situation.
The tax liability is deferred and non-current so there is no prospect of it being demanded for a year or two. There is also a deferred tax credit so that the net liability is only £1.782M.
For the current year, there is actually a tax repayment due of £292k.
It seems unlikely to me that the company will incur any significant current tax liability until trading improves.
There appears to be significant potential to produce non-cash-flow losses by amortisation and depreciation of the significant goodwill and intangibles in the balance sheet. Not being a tax expert, I cannot say what effect these would have in terms of delaying tax liabilities or translating to deferred tax assets.
However, the value of deferred tax assets (dta) is entirely dependent on having taxable profits against which to offset them. So it may become questionable in the absence of foreseeable profits (on a more likely than not basis) to what extent (if any) that dta should continue to be credited in the balance sheet.

That is all looking at the negatives. It could be argued that we are currently near the bottom of the cycle and that the future direction should be up. While broadly plausible, I am not convinced that the 'up' will apply much to those sectors from which BDI tends to derive the bulk of its revenue.

What is abundantly clear is that the company needs to manage its resources to preserve cash, possibly to the detriment of notional profit - imho.

[markt] 07/12/2010 15:26

....the BDI numbers are....painful in my view....

such as 5M debt and low profits...a risk of X% of problems to pay the interest on the debt or return the debt if called in

reduction in turnover from recruitment sector is partly hidden in the words of the report imo......the reality is shown in the numbers and is painful imo
...I think it says reduction from 4.9M to 3.6M, reduction of 1.3M. If happened again then 3.6M would change to be 2.3M.

Anyone understand the tax liability numbers ?....says 5.X M pounds.....and only 0.8M cash....and the taxman does not like to wait to get paid....and BDI can not pay....
also, 5M tax liability is massive number/% relative to the profit of the company (1.X M, excluding everything they can exclude !)

Recently done 1 cash raising......the market may not like it if they have to do another one to raise cash within X months.

(also, I think everyone is agreed that the recruitment market is not about to recover in the short term......economic situation could well get worse, eg. bail out of Ireland, risk of the same for Portugal/Spain, cuts in Govt. spending is reducing expected growth numbers for 2010/2011 and 2012).

...whether a 'nice' company or not, I dont discuss, I am just looking at the numbers with short term view....

[sper] 15/11/2010 07:40

Interesting sub RNS, PFJ are a good firm and they would not be investing if they did not see the benefit and if their market would not support it, if that makes sense.

[hiq] 12/11/2010 16:28

Looks like share price will get back up to 75p in a flash IMV

[boadicea] 12/11/2010 16:16

Two news items from Bond, sub-RNS importance but useful -

pfj Chooses Recruitment Agency Software From Bond


Bond Adapt Staffing Agency Software Reduces Weekly Timesheet, Invoicing and Payroll Processing Time From 3 Days to 1/2 a Day


The new director from Constellation was RNS'd.
"Bond is pleased to announce the appointment of Mark Leonard as a non-executive
Director. Mr Leonard, 54, is a Director and the President of Constellation
Software Inc., a position he has held since 1995, prior to which he worked in
the venture capital business for eleven years."

The appointment is a natural corollary of the sentimnts expressed in rivaldo's previous post.

[wjccghcc] 21/10/2010 14:32

If it weren't for the 5 year standstill agreement, I'd be interested too.

[rivaldo] 21/10/2010 14:25

I'm still not holding here, but today's RNS is pretty intriguing - a placing at 75p, a huge premium to yesterday's 54p price.

And Constellation now hold 24% (note the standstill agreement).

The positive trading update also hidden away backs up the good vibes here. I do like BDI, but my AIM funds are fully invested elsewhere at present:

"Additionally, the Company has conditionally raised approximately GBP6.17 million (before expenses) by way of the issue of 3,505,083 new Ordinary Shares and 4,720,558 new Non-Voting Convertible Shares (together the "Placing Shares") to Constellation Software Inc. ("Constellation") at a placing price of 75 pence per share to fund the consideration for the Acquisition.

Following its acquisition of the Placing Shares Constellation and its related parties will hold 24 per cent. of the Company's ordinary share capital."

[sper] 05/10/2010 07:37

I think, long term these will come good. They can survive the recession and their move away from the recruitment sector into providing recruitment/hr software to a wider base of customers was a well thought out decision that will leave them less vulnerable in the long term, so long as they can convert the opportunities they get to build their customer base.

[napoleon 14th] 04/10/2010 21:08

If no T/O, it's a long haul.....
Still, safer than many others.
IOW, I'm stuck with them!

Anyway, JDG more than made up for these.

[amt] 27/9/2010 09:02

Just have to hope for a takeover. I would take 75p now.

[hiq] 25/9/2010 21:48

Pretty awful in most respects

[sper] 24/9/2010 07:33

If I remember rightly, a deferred tax liability normally arises because of the difference in speed at which Capital Allowances adjust taxable profits when compared with amortisation or depreciation. It is a pure accounting adjustment rather than a "real world" transaction and again, as far as I remember, only crystalises if you dispose of the asset. I imagine that is unlikely because a deferred tax liability of that size can really only relate to their own Development costs.

The tax showing as a credit is a potential refund of CT attributable to the loss. I think losses can be set off against future and possibly past profits.

Happy to be shot down if someone knows better

[boadicea] 23/9/2010 22:10

markt - You would be better reading the results from here where they format properly. Some of the lines on advfn are out of kilter.


The tax in the P&L account is a credit, not an expense. Note 3 gives more explanation showing it as negative tax.
In addition there is a further £292K tax showing as a current asset (i.e. it can be claimed within a year) and a further deferred credit (non-current) of £1.327m.
Against that is a non-current deferred liability of £3.109m

You would probably need a company accountant for a full explanation of the convolutions of company tax accounting!

[amt] 23/9/2010 17:35

sper - I think you are correct. I dont know where markt gets his numbers from.

[sper] 23/9/2010 12:58

Markt - I may be reading it wrong but I dont get the same as you.

P&l shows CT credit of £598k for the period and bal sheet shows an asset for CT (they call it income tax) of £292k.

There is £5.2m liability but I think that is actually borrowings, not HMRC.

There is also a deferred tax liability for £3.1m but would imagine that is to do with timing differences on capital allowances and amortisation/depreciation

[markt] 23/9/2010 11:09

....ouch !

...perhaps not looking so good for paying wages.....for wages bill and size of turnover, not so much actual cash in the bank....and tangible assetts is not so big relative to the bank debt (if ignore the value of the software products, which is only what someone would pay)

and also big debt to taxman..5M !!..anyone understand that in detail ?
if taxman asked for immediate payment of tax....then the company could not do it...

company has grown over last few years but bank debt has increased massively relative to tangible assetts (had virtually no debt 3 or 4 years I think) and current profits during same time.....

[amt] 06/9/2010 14:22

Watch out for a takeover also. NO ADVICE DYOR

[wjccghcc] 06/9/2010 09:18

Duplicated post.