Fd Technologies Public Share Discussion Threads

[steveo18] 18/6/2013 07:44

Financial Review

Post-tax profit for the year was GBP5.1 million (2012: GBP5.9 million) on turnover of GBP56.5 million (2012: GBP46.1 million). Gross margin was broadly maintained (data centre costs were reclassified from administrative expenses to cost of sales). Our balance sheet is strong with equity attributable to shareholders up to GBP39.4 million (2012: GBP32.2 million), an increase of 22.4%. This, and our confidence in the Group's ability to generate cash, enables the Board to recommend a final dividend of 8.40p per share (2012: 8.15p) which means that we will have paid a total dividend of 11.50p (2012: 11.15p) per share for the full year.

Outlook

Based on the health of our current sales pipeline we anticipate reporting further growth in the year to 28 February 2014. As well as organic growth the Board will continue to pursue acquisition opportunities where we see a strategic fit and have access to the necessary sources of finance. On a macro level we are confident that we have positioned ourselves to benefit from global trends in technology and consulting and that with our recurring revenue model and continued reinvestment in the business we will deliver further significant benefits in the years ahead

Brian Conlon

[aishah] 15/5/2013 08:55

Sanlam Securities re-iterates Buy with 700p target

[snatander] 14/5/2013 19:12

first move for a while

[woodcutter] 05/4/2013 17:05

M2 i figure you are most likely right and goodbody may have been given some guidance to get their figure. As with all these negotiations there is likely to be a range from/to. I'd like to know the worst case (not likely i know) so the uncertainty has kept me out.

From the info i have available Charles Stanley and Nomura had £8.5m and £9.6m respectively pre-tax at end of last year so pretty dated.

Sanlam have £5.3m pre-tax at beginnning of March, Goodbody only gave eps but similar to Sanlan so quite a diverse range.

Digital Look £6.35m pre-tax so it's a bit all over the place.

I tend to think it will drift lower with until some certainty on the provision becomes clearer, as has happened again today.

My limited charting knowledge suggests it's not yet set any buy signals.

Woody

[aishah] 04/4/2013 12:55

Sanlam Securities re-iterates Buy with 700p target

[moorsie2] 03/4/2013 09:03

One can only assume the debt discussions are at a delicate stage and to detail the provision could show their hand??

Ideally by the time they report results in mid May they can report that they have recovered the disputed debt with the benefit in 2014 figures..

[moorsie2] 03/4/2013 08:35

Here is their report...

First Derivatives Strong start to FY14 but bad debt provision in FY13
First Derivatives released a trading statement this morning noting that trading in H213 (to end Feb) has been broadly in line with that in H113 (Adj. PBT of £2.9m). In terms of trading in FY14, the group notes that it has made a strong start to the year and prospects for the business remain positive.
The group has made a provision for a bad debt (we estimate c. £1.2m) arising from the acquisition of Cognotec in 2010. It is pursuing the contracted payments due but has made a prudent provision on a significant proportion of these payments. With reference to the ASIC deal announced in December, the group notes that the deal is progressing well and it has committed significant resources to the implementation of this contract. The majority of the implementation revenue will be recognised in FY14 and licence revenue recognition will begin after FY13 year-end.
The company expects that excluding the provision for bad debts, the company will report in line or close to current market expectations for FY13 (Bloomberg consensus revenue: £58.5m and PBT: £7.1m). Based on this, we will be bringing back our FY13 numbers by -4% to come in line with market expectations prior to the bad debt provision, which is significant. Overall, we remain positive on First Derivatives given our belief that the underlying business remains intact and due to the strong start to FY14 as highlighted by the company.

[djon] 02/4/2013 16:36

Bad debt estimted at 1.2mln GBP by Goodbodys. No detail on how they arrived at their estimation but it must be with regards to the contracted payments involved in Cognotec aquisition.

[valhamos] 02/4/2013 13:25

GHF I read the statement as saying they were only achieving what they did in the first half because of the bad debt and that if you ignored the bad debt they are roughly in line with market expectations. My interpretation may be wrong but, if that is the case, then the bad debt cannot be £1m let alone £10m.

[moorsie2] 02/4/2013 09:40

Glasshalffull - I Hear you. However its a one off non trading issue it appears and their property assets have always been very conservatively and prudently accounted for so I see it only as a balance sheet issue rather than a P&L issue. I go with their track history more than the worst cast scenario though I do appreciate it is a punt.

[woodcutter] 02/4/2013 09:39

Just doing todays rns rounds on companies i follow and .........

didn't like the TS, agree with GHF non quantifiable on costs, can see it drifting down much further until figures are known, possibly back to £5. "understanding company news" ...........broadly in line = small profit warning.

Agree it's good company, having held in the recent past, possibly a buy if/when it drifts down to a price in line with known provisions and eps figures.

Woody

[glasshalfull] 02/4/2013 09:07

Moorsie - On the whole I agree with you, but I'm extremely disappointed that they didn't clarify the "significant" bad debt provision...is it £1m or £10m, or perhaps something in between? The fact is, we have absolutely no idea.

It makes the company uninvestable to me as I simply can't quantify the magnitude of the provision and therefore potential impact on the company.

Regards,
GHF

[moorsie2] 02/4/2013 08:43

Any such weakness over the coming weeks is a good buying opportunity.

This company has always been extra prudent as regards results maybe this year they should be just a little less so.

The results will be suppressed with two one off factors

1. The bad debt provision
2. The costs associated with the major contract roll out before the revenue which will be in 2014 results

This creates a buying opportunity for those who can see this over the sellers

[glasshalfull] 02/4/2013 07:50

Don't think they are inline per the wooly trading update.

"Trading... broadly inline with that achieved in first half." Implies that they achieved normalised Pre-tax profit £3.8m or EPS 16.7p in H2, or something akin to this.

Consensus forecasts were for £8.5m PBT & 34.7p EPS...so as I said in my post above, looks like a small miss to me.

Irrespective, a very opaque statement IMO.

Good luck!

Regards,
GHF

[snatander] 02/4/2013 07:38

In line statement from a conservatively run group. I like. Roll on £10

[glasshalfull] 02/4/2013 07:18

@Glasshalfull1: First Derivatives(FDP)Disappointing update Broadly in line=miss & unquantifiable "significant" debt provision #TMFPP

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Why don't they quantify provision of legacy debt? How significant is "significant" ?
Also broadly in line = a slight profit miss in my book.

Disappointing & doesn't encourage me to reinvest.

Regards
GHF

[moorsie2] 25/3/2013 09:37

Buyers have returned this morning with the seller over hang gone

Can see this kicking on now

[moorsie2] 18/3/2013 11:00

looks like the MMs are very happy just mopping up the odd seller.

No buying interest at the moment though.

[moorsie2] 02/3/2013 17:21

Getting a lot of good press and new investors.

Looks like the firm's products around "big data" are really enticing clued up investors and clever money

[protean] 28/2/2013 08:57

Pulled back to around the level of the SCSW tip.

They view the company as "irresistible" and reckon "the best is yet to come".

[moorsie2] 21/2/2013 12:20

2010 saw a trading update issued in Mid March
2011 saw a trading update issued in mid March
nothing in 2012
I hope we get an update this year in Mid March with positive news about H2 trading and wins..

I see the SCSW tip is published on the FDP website. This is clearly the reason for the rise on 11th February as the newsletter is officially dated 12th Feb but would have come out at the weekend of 9th Feb.

Its extremely positive and bullish and therefore such a write up and the ASIC deal merits a financial trading update after year end close next Thursday..

[moorsie2] 12/2/2013 10:32

There has to be consolidation opportunities in this market and a tie up between FDP and Fidessa would be interesting..