Escher Grp Share Discussion Threads

[battlebus2] 11/2/2014 17:05

Thanks Knackers i'll take a listen..

[knackers] 11/2/2014 17:02

Clear and concise, interview with Escher CFO Jonathan O'Connell at the recent Shares Mag Investors Tech Conference:

[knackers] 04/2/2014 19:32

Hi Ed, little to report from today. BAU really, and I sense things are ticking along nicely. USPS development work sounds like it's done and dusted. Focus now on Interactive Services division/product set. This is a great up-sell opportunity for Escher with their key accounts and the interest has been building. Also a number of key tenders are in the wings, could be an interesting next 6 months but we'll have to wait for the deal flow. They remain v well positioned against the competition as not only do they know their client's businesses inside out, they understand their challenges - oh and their technology is VERY affordable.
These guys seem to know how to tender, and win.

[knackers] 29/1/2014 11:09

Nice starter-for-ten here, Ed. Escher are communicating a more confident narrative.

[edwardt] 29/1/2014 10:47

probably not- will welcome your summary! sorry being lazy!
Ed

[knackers] 28/1/2014 11:59

Tech teach-in to Instl investors by Escher currently underway at Panmure Gordon:

George O Connor ‏@GeorgeO 33m
@escher_group #investorteachin There are 200 National Post authorities 34 are Escher customers they are the largest retailers in country


Something of a market opportunity...

[knackers] 28/1/2014 11:14

I'm registered for the 4th, Ed. You...?

[edwardt] 28/1/2014 10:43

are you going??

[knackers] 28/1/2014 08:33

Escher hosting a capital markets presentation today that on-top of their CFO speaking at MSM Conference for PIs (Shares Mag) next week - 4 Feb.
Whatever next! Most unlike Escher to beat the drum... ;o)

[stegrego] 23/1/2014 13:10

Bit bullet.

Figure the upside to forecasts will come and by 2015 will look cheap.

[knackers] 22/1/2014 16:23

PJ, welcome - yup I too have seen that EPS forecast on BSL.com. Post tax net figure am 99%. 2015 is a long way off, I'd like to see Interactive Service achieve serious traction amongst Escher's many key accounts over the next 12 months and blow that [2015] number away, i.e. perfect opportunity to build on the 2014 rev kicker ;o)

[pj 1] 22/1/2014 13:11

Barclays have eps as 19.8p for 2015. I assume that is due to Tax ? Can anyone confirm.

Yet another thread with some very respected Posters on, think I'll bring the standard down lol !

[knackers] 22/1/2014 07:47

Happy with that. Given the $6m USPS licence payment is not in those numbers the core business is underpinning things solidly enough. Also good to see the attention now being given to Interactive services and Riposte TrEx. Not before time.

All in all solid progress and plenty to look forward to this year esp H1 ;o)

Shares remain very good value at ~£2.55 IMHO this is the year we should start to see some sparks flying about. Plenty of upside here.

[glasshalfull] 22/1/2014 07:40

Appears they have marginally exceeded forecasts for the year gone with $21.3m turnover and $3.9m EBITDA pencilled in.

As they note a satisfactory performance & with the USP contract expected to deliver this year & pipeline of opportunities, hopefully this will turn into a strong performance in 2014.

Regards,
GHF

[battlebus2] 22/1/2014 07:21

Year-end trading update

Escher Group Holdings plc (AIM: ESCH, "Escher" or the "Group"), a world-leading provider of outsourced, point-of-service software to the postal industry, has published a trading update for the year ended 31 December 2013.

The Group has traded satisfactorily in the twelve months ending 31 December 2013. Reported revenue for the full year is expected to be approximately $24.7 million (2012: US$23.0 million) an 8% increase over the prior year. Adjusted EBITDA* is expected to be approximately $4.0 million (2012: $6.4 million). Net debt at 31 December 2013 was US$2.3m (December 2012: US$2.2m).

Escher's Postal Solutions business performed strongly during the year, with services revenues increasing following new contract wins in 2012. During 2013, there were also a number of contract renewals and contract extensions with customers including An Post, Posten Norge, Saudi Post, Brunei Post and Israel Post.

The Group continues to invest in its Interactive Services business, which provides retail/mCommerce, eGovernment and community based message solutions (RiposteTrEx). These solutions are now gaining traction with customers. In December 2013, the South African Post Office selected the RiposteTrEx(TM) platform to deliver its eRegistered mail solution following a rigorous tender process. In July 2013, Escher signed its first contract to provide peer-to-peer mobile payments for Irish restaurant chain Graham O'Sullivan Restaurants.

The Group is also seeing a good pipeline of tenders in both Postal Solutions and Interactive Services.

Escher expects to publish its year end results in the week commencing 10 March 2014.

Liam Church, Escher's Chief Executive, commented:

"The investment in and expansion of our offering during 2013 has positioned us well to benefit from the investment that postal services are making in their post office networks and in diversifying their businesses.

"Governments also continue to invest in post offices as their front office in the community and in providing public digital services, an area in which we are gaining traction."

* Operating profit before, depreciation, amortisation, share based payments and exceptional items.

[battlebus2] 21/1/2014 21:03

Yep still the case but no reason to put you off.


12 13 14 15
Sales 23.0 21.3 29.6 26.7
Gross profit 15.1 14.0 20.7 18.7
EBITDA 6.4 3.9 10.3 8.0
EBIT 5.6 2.9 10.1 6.9
Continuing pre-tax profit 5.5 3.2 10.6 7.6
Reported pre-tax profit 4.4 1.7 8.9 5.8

[stegrego] 21/1/2014 20:43

I seem to recall that the numbers looked good for this year due to usps contract but then went backwards again in the following years.
Is that still the case here, as that put me off before.

[knackers] 21/1/2014 18:30

Looking at trades towards the close today, Glass, I think someone would concur with us ;o) and I couldn't agree more with you on the valuation of BLUR, utter nonsense which will only end in tears (will people ever learn!?)

I think Escher should report a perfectly respectable top line performance this year, which given that it will exclude the lion's share of the USPS licence payment ought to concentrate minds.

[glasshalfull] 21/1/2014 17:49

I agree with what you say Knackers. ESCH look extremely good value at the current price, given the development of their product set which Post Offices across the globe require to compete in the new Digital World.

Respected analyst George O'Connor with Panmure released a note yesterday reiterating 495p price target (100% upside) and indicated that a trading statement won't be too far away.

Market sentiment clearly impacted following their Nov 2013 announcement indicating that licence revenue recognition would simply move into calendar 2014 for the USP contract & little notice generated by South African RiposteTrEx win during December against strong competition and pipeline of further national opportunities such as Norway' who appear to tendering for a digital mailbox with award anticipated around Spring 2014.

With the $6m of licence anticipated to be recognised in H1 2014 this should underpin current year forecasts of 42.6 cents (25.9p) and would place ESCH on a prospective PER 9.6 for the current year.

I'd suggest the shareprice offers great value for a company with a leading global position...especially when the likes of WAND, BLUR and a number other tech companies are on blue sky ratings with little in the way of revenues or profitability.

All IMHO.

Regards,
GHF

[knackers] 20/1/2014 16:46

Re relative value I couldn't agree with you more, Ed...don't forget there's also the Royal Mail tender this year within which I'd expect TrEx to feature, though likely UK PO's current core postal service tech also is in need of a thorough re-vamp...

In addition to secure online mailboxes for all consumers and businesses, TrEx also enables a new slew of products + 'interactive' services to be offered.

PG make the point well in a recent note, Escher know this market so well they are perfectly positioned to help Posts both streamline and reinvent their service propositions. In effect redefine their offerings and show them what 'good' looks like, i.e. they're offering strategic thought leadership alongside their technical IP. Not sure that's in today's price.

[edwardt] 20/1/2014 16:16

just added a few -there are obvious risks on execution with usps but when i look at what else i own - this looks relatively good value! think the norway tender maybe good news too, fingers crossed.

[knackers] 20/1/2014 14:59

;o) think I might be in for a few more, Ed. What d'you think...?

[edwardt] 20/1/2014 12:59

well at least we have got some volume - panmure re-iterates price target this am...

[knackers] 19/1/2014 17:17

17 January 2014

StockMarketWire.com - Escher Group Holdings has received patent approval from the US Patent and Trademark Office and the Intellectual Property Office of Singapore for its electronic business postal system. The system manages the two-way communication of messages between mailboxes and portals through a network of secured system end points. Authenticated users can send and receive digital mailings from personal portals, business portals or mailbox portals.

The electronic business postal system patent, along with the previously announced digital mailbox system patent, are the foundation for Escher's RiposteTrEx digital services product.
- See more at: