Computerland Uk Share Discussion Threads

[jakleeds] 02/3/2005 15:23

What did you say in your email?

[denpot] 02/3/2005 09:19

did E-mail the company a couple of days ago but dont expect anything.

[jakleeds] 02/3/2005 09:03

Still waiting for some news on the outcome of the bids that they spoke about in their last set of results.

They were saying they will hear something in the early part of 2005

[denpot] 02/3/2005 08:45

anybody in this company,fundamentals look cheap £6mill in the bank although this will be lower as they are investing in the managed services area.it's profitable and on a low P/E ratio.some new contract bids should be announced in the 1st quarter if succesfull.

could creep a bit lower so im holding on for now.

[jakleeds] 10/2/2005 21:47

There seem to have been a few broker to broker trades in the last few days. Anyone have any views on this? Shortage of stock perhaps? Time will tell

[jakleeds] 08/2/2005 10:10

Because a few weeks ago on REFS there were forecasts which were far too low given the recent results, but now it says 'awaiting broker forecasts'.

The pe is only 12 and given a growth forecast of say 30%, they will be on a peg of around 0.4. This is before any contract wins and any potential acquisitions (IC says they are offered two potential acquisitions per week).

The next surge in share price is overdue imho.

Good Luck

[robbiegoodwin] 08/2/2005 08:59

Lets hope so. How do you know the brokers are upgrading their forecasts?

[jakleeds] 07/2/2005 15:53

It can't be long before these start to show some positive momentum. Brokers are currently in the process of upgrading their forecasts, and there should be some news soon regarding the outcome of several bids.

Fingers crossed they win some good business.

[johnroger] 22/12/2004 16:49

Good summary from IC and clear indication of both where growth will come from along with ambitious company targets

22 December 2004

COMPUTERLAND UK (CPU)


 

194p - computer services - Continued success at IT services group ComputerLand has prompted its decision to move up to the next level by boosting its managed services offering. Record interim results produced profits of £1m, ensuring that it is well-placed to meet full-year forecasts of £2.1. "Now we want to push on to £3m, then £5m annual profits," says chairman Graham Gilbert. "To help this, we have decided to invest, and focus on opportunities that will enable us to win larger contracts."

Clearly, ripe market conditions have pushed ComputerLand to the forefront in recent years. And managed services have provided the main boon for the business. By running help desks and outsourcing desktop management, the computer services group sees plenty of scope to continue benefiting from strong demand.

It points out that there are over 1,500 mid-size companies in its target market, of which 80 per cent currently provide most desktop services in-house. So, with 10 per cent of these expected to turn to outsourcing in the next 18 months, there is a £100m market for ComputerLand to target. Add to this the potential that it sees in the public sector, and the future looks good. The three main markets it will target here are academies, building schools for the future, and local authorities.

There are 441 local authorities in the UK, and ComputerLand estimates that the total market size in local authorities for desktop services is worth around £150m. Given that 'best-value' initiatives are increasingly driving local authorities to outsource desktop services,it is clear that this is a big market for the group to grow in. By adding extra sales specialists, the plan is to take advantage of increased opportunities for growth. So, with spending expected to open up, ComputerLand will use its knowledge and experience to boost its position.

Already an established player, the plan for the company now is to increase resources to help it win contracts and strengthen relationships. So ComputerLand is planning to spend around £400,000 over the next few years to build its team, as people are an important asset for the group.

This is highlighted by August's appointment of Gary Barrett as an executive director. He is overseeing the continuing development of ComputerLand's service delivery, and arrived from Atos Origin. By beefing up this side of the business, ComputerLand will have the capacity to deliver on contracts and grow its pipeline.

Results for the first six months of the year revealed impressive growth. Profit and margin growth were attained as a result of a 15 per cent increase in contracted revenues, compared with the corresponding period last year.

And on the hardware maintenance side, January's acquisition of Information Technology Solutions (ITS) has helped to broaden ComputerLand's product range. A full contribution from this business during the first half helped significantly, now that it has been successfully bedded in. Further benefits can be expected moving forwards.

It is also worth noting that the group's cash position remains strong. Despite the £1m cash outflow on the back of the ITS acquisition last year, ComputerLand's net cash position actually improved by £1m during the period to £7.5m. At the end of October, it had £6m in the bank, leaving it well-positioned for further acquisitions.

Now, the key to growth at ComputerLand is investment in its bidding capabilities - and then converting interest into contracts. Clearly, it is imperative that it builds on an encouraging start to the year, but market conditions appear favourable, and the company looks attractive. Buy.




--------------------------------------------------------------------------------
Ord price: 194p Market value: £19.8m
Touch: 190-198p 12-month High: 219p Low: 166p
Dividend yield: 2.5% PE ratio: 13
Net asset value: 42p Net cash: £7.5m




--------------------------------------------------------------------------------
Year to Turnover Pre-tax Earnings Div per
30 Apr (£m) profit (£m) per share (p) share (p)

--------------------------------------------------------------------------------

2002 37.6 0.61 4.73 2.20
2004 56.4 1.86 13.15 4.35
2005* 63.0 2.10 14.80 5.05
% change +12 +13 +13 +16

--------------------------------------------------------------------------------

*Charles Stanley estimates
Beta: 0.53
Market makers: 3
Normal market size: 500
Last IC view: 2 Jul 2004, page 50

BULL POINTS
Strong managed service offering

Favourable market conditions

Encouraging pipeline

BEAR POINTS
Shares are tightly held

Competition is strong

[wjccghcc] 10/12/2004 00:33

Still too much exposure to selling hardware (at reducing margins) for my liking. I prefer ICM (altho higher rating) for managed services as they also offer disaster recovery. Good company though.

[safman] 09/12/2004 22:23

been picking a few on this ... reckon it looks good...

cheers

saffy

[amorruso] 09/12/2004 22:21

CR

Interesting article, and it looks like CPU should now break out of it's trading range and reach new highs...could be quick too. I'm more into Fayrewood (FWY) myself as it is on forward PER of only 7.9.

Best of luck


Amo

[cockneyrebel] 09/12/2004 12:59

Ed Jackson likes the results - suggests there could be broker upgrades.

CR

[cockneyrebel] 09/12/2004 10:21

I think there's some stock around but it will clear.

A 25% divi rise signals great confidence imo.

Look around for companies with this record of long term earnings growth - MER, TPT, MJW etc, the market pays a premium for this sort of track record.

Looks like a 3% yield here too.

£6m cash in the bank.

CR

[robbiegoodwin] 09/12/2004 10:15

I am in full agreement, however, they need to breakout of the current trading range before we see the next big upturn in the share price. The interims should receive some favourable press coverage. We will wait and see.

[gd150772] 09/12/2004 07:57

Agreed CR

Having looked back at their previous results H2 is always more profitable for CPU..

Given their outlook statement I forecast @ 17-18p for preliminary results.

[cockneyrebel] 09/12/2004 07:48

Great results, forward PE 11, 25% divi hike and five year earnings growth record to die for.

CR

[cockneyrebel] 03/12/2004 15:19

Results next week. PE 12 for this year, 11 for next year and they have said they are in line.

Superb earnings growth here over the past 5 years:

(0.35p), 2.2p, 5.12p, 10.3p, 13.5p - - 15.63p forecast for this year and a 4.2p divi

Worth looking at imo

CR

[johnroger] 31/10/2004 13:18

Investor's Chronicle this week

29 October 2004

COMPUTERLAND UK (CPU)
The profits growth achieved by Computerland over the past two years has been due to "mid-size corporates" - UK companies with between 2,000 and 10,000 computer users - outsourcing management of their information technology (IT) systems. Computerland thinks there are more than 2,000 companies in this market segment, but less than half of those have outsourced to date. Its main competitors are in-house IT teams. Managed services are sold on medium-term contracts (often three years) and are the main reason why margins are expanding.

Last year, contracted revenues from managed services and hardware maintenance only accounted for around £11.4m of sales, but managed services was clearly the profit driver and included an extended contract with credit-rating agency Experian, plus full-year contracts with Egg and Manchester City Council. The rest of the turnover came from project services (£4.3m) and the balance of £40.8m from computer reselling (including e-procurement). It sold more in volume terms, but was hit by falling component prices.

Computerland's goal is to earn margins of 5 per cent (3.3 per cent last year). Company broker Charles Stanley expects 2004-05 profits of £2.16m on sales of £63m, so this year's margins rose a tad to 3.43 per cent. But that's after an increase in the goodwill amortisation charge from £59,000 to £211,000, following the acquisition of a hardware-maintenance business for £1.03m last January. Computerland seems unlikely to spend much, if any, of its growing year-end cash balance this year. For starters, cash comforts clients and, although the company is offered two potential acquisitions a week, it says there are no takeovers in the pipeline.



--------------------------------------------------------------------------------
Ord price: 193p Market value: £19.5m
Touch: 190-195p 12 month High: 219p Low: 166p
Dividend yield: 2.3% PE ratio: 14
Net asset value: 42p Net cash: £7.48m




--------------------------------------------------------------------------------
Year to Turnover Pre-tax Earnings Dividend
30 Apr (£m) profit (£000) per share (p) per share (p)

--------------------------------------------------------------------------------

2000 28.3 -182 -1.40 2.10
2001 36.9 304 2.42 2.10
2002 37.6 611 4.70 2.20
2003 54.8 1511 10.50 3.30
2004 56.4 1,859 13.60 4.35
% change +3 +23 +30 +32

--------------------------------------------------------------------------------

Market makers: 3 Traded on Aim Last IC view: 2 Jul 2004, page 50


Managed services is clearly a growth business with modest competition. Buy.

[diogenesj] 29/10/2004 18:30

No change, but I suppose that is good news.

[johnroger] 29/10/2004 16:14

Good news and a good rise today

LONDON (AFX) - Computerland UK PLC, which provides IT services to medium and
large businesses, said trading in the first half has been in line with the
company's expectations.
In a trading update, it said in the six months to October, both sales and
profits generated were at higher levels compared with the corresponding period
the year before.
The company will release its interim results and outlook for the second half
on Dec 9.
[e-mail]

[diogenesj] 09/9/2004 12:03

Tipped as a play of the week in Shares Rag today, I hear. Probably explains the small mark-up on zero volume.

[diogenesj] 08/7/2004 11:40

No doubt true, but both are suffering from hardware price deflation (offset in CPU's case by higher service revenues).

[wjccghcc] 08/7/2004 09:29

CPU and computercenter are in different markets.