Financial Objects Share Discussion Threads

[shiny000] 17/6/2003 09:01

No you're not the only one!

[master rsi] 17/6/2003 09:00

A nice 25K buy well above market size.

The L2 is the same as yesterday closing 2 on the bid 2 on the offer.

[puber] 17/6/2003 08:48

You are not alone. However, even though I have a contact within FIO (not in UK), I have nothing to report. I have no idea why FIO is suddenly rising, nor why it has fallen so far.

My information is that service and maintenance contracts continue to provide loads of cash, even though the large investment in new software systems does not appear to have paid off.......yet.

Therefore, I am quietly lurking.

[sreed] 17/6/2003 07:38

am I only one holding these

[master rsi] 16/6/2003 23:29

sreed

The only way is up, though the MMs kept the spread large, so the punters stay a bit clear, but the odd buyer was there.

The Indicator RSI, did not bother to move up, still at 41 after 3 days the share price rising, so plenty to go for yet, before is goes overbought, stochastic starting to move up because is more a short termer, just like momentum.

[sreed] 16/6/2003 22:05

Any idea how how this can go tomorrow?

[a7009090] 16/6/2003 16:02

sreed: could you stop ramping on other threads - if fio is as good as you think, it will get there in the end! Just relax & take it easy.....

[sreed] 16/6/2003 14:52

thanks for reminding that high was 800p dutch
latest is only 43-47 and cash of 29p!

[master rsi] 16/6/2003 12:40

FIO has a strong order book and substantially reduced cost base for the last 3 month, still has £8M cash left (29p), paying dividend and with the last contract and alliances with Microsoft, it augurs well for the future.

The rumours of bidding from Misys is surfacing time and time again, also MBO by directors after the 30% shares buy back last November at 50p.

Considering the big recovery on most technology companies, FIO at 41.50p has been left behind, time to get some at this lowly price.
Update 9th July 03
Cash still there 29p, that give support to the share price up to 30p, plus the company business in for nothing, ActiveBank is a money spinner, though the sales to clients have been slow, the cost cuts implemented last year has put cost base much lower so the cash is still intact.
Change at the top and a new sales director, maybe that will do the trick for the sales.
dates
4 Sep 07
Small Cap Shares says FIO is a BUY Buy Financial Objects at 57.5p Says Small Cap Shares

Financial Objects (FIO) provides software, and services and support for its software, to the banking, wealth management and energy industries. To compliment its primary software products, the company has several software offerings in other markets including property asset management, document management and financial advisory services. Revenues are derived from licence fees for its software and from ongoing annual maintenance fees which are typically 20% of the licence fee. Additional revenues also come from professional services and support. The company has over 600 customers in 40 countries worldwide that use its software, including blue-chips such as Abbey, Siemens and Lloyds TSB, although around two thirds of revenues come from the UK. Customers are served from regional centres located in Europe, Asia and North America and from the company's development centre based in Bangalore, India.

Financial Objects was founded in 1995 and has a strong history of growth through acquisitions. In 1996 IBIS, the international wholesale banking systems business, was bought and integrated into the company giving the enlarged group banking software and services on two major platforms: IBM iSeries and Microsoft Windows. 1999 saw the acquisition of international retail banking systems supplier, Global Financial Systems which extended Financial Objects' range of new generation banking solutions and provided an established retail product to complement its existing product suite. Early in 2000, 9000 Limited was acquired along with its risk management products and later in the year Afrocom Technologies, an Indian company based in Bangalore, specialising in developing technology based around the Microsoft platform joined the group. In 2005, the company acquired Wealth Management Software, a provider of a range of investment, property, healthcare and financial adviser management services, cross-industry document and business management solutions and bespoke service capabilities. The most recent deal, in 2006, saw the addition of Raft International to the portfolio and expanded the range of products into the energy sector. In the same year the Danish subsidiary Financial Objects A/S which was acquired as part of the Raft deal and focused on providing software consultants to banks and financial institutions was disposed of so Financial Objects could focus on its core software business.

Financial recently released an excellent set of results for the year ending 31st December 2006. Revenues were up by 43% to 19.9 million, with operating profits up by 130% to 2.3 million and fully diluted earnings of 5.3p up from a loss of 0.5p in 2005. A dividend of 1p per share was paid. The operating margin for the year increased to 12% compared to 7% in 2005 and in the second half of the year it rose to 14%. The balance sheet was strengthened with net cash up by 8% to 2.8 million.

In the next few years the main drivers of growth for the company should be the wealth management and energy sectors. In wealth management, the company believes that there are several thousand target accounts in the UK, with further opportunities in the Middle East, Europe and the US. With any new contract wins there is the opportunity to supply bolt-on services and support to its customers around the sales of its licences which could potentially double the value of any sale made.

In the energy sector, companies have been increasing their IT budgets which provides a new market opportunity for the company, although this is assuming that budget rises continue. In this sector the company's main competitor is the risk management software provider, ROME corporation although it does not have a specific focus on the energy sector. Encouragingly, Financial Objects recently won the contract with Shell mentioned above large against ROME

Financial Objects has said that it wants to grow its revenues up to 50 million in the next three years and acquisitions in the fragmented market will play the lead part in this strategy, as long as they are complimentary and earning accretive. Cash in the bank of 4.1 million combined with strong cash generation puts the company in a good position should any opportunities arise.

Financial Objectives has done well to recover from the spate of profits warnings that it issued in 2002/3 which resulted in a low point in 2003 of pre-tax losses of 12 million. Revenues have steadily grown over the past two years and the company has managed to keep costs under control by relocating all development work to the development centre in Bangalore diversification and diversifying its product offering beyond its banking software. On the back of new contracts and a strong pipeline of sales supported by investment in sales and marketing we are confident of further revenue growth.

As revenues rise the company's operational gearing will kick in, improving the margins and therefore pre-tax profits. Revenues for the year ending 31st December 2007 should be around 22.4 million with pre-tax profits of 2.8 million. Earnings should be around 6.3p. We do not expect the company to pay tax anytime soon due to 11 million of accumulated tax losses. In 2008, revenues should rise to 24.4 million with pre-tax profits of 3.4 million and earnings of 7.4p. That rates the company on a lowly multiple of 7.8 for the year. On a multiple of 14, which is typical for the software sector, we are setting a 2008 price target of 104p which gives 81% upside. BUY

Key Data
EPIC: FIO
Market: Full List
Mid Price: 57.5p

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[dutch5] 16/6/2003 11:10

Well put Master.
Yes the strong financial position and 6% yield with current client base and management spell great times ahead. Perhaps a move to tackle the 100p mark similar to its run from 40p to 105p in late 2001?

BUT what is realy going to assist FIO retrace it's 4yr chart (with 800+ highs) is the flow of contracts....that is what we have instal for the 2nd half of 2003 IMO!!!

Moves fast and so it should as it has not yet been rewarded with the market recovery of recent months.

[sreed] 16/6/2003 09:31

mbo would be nice

[sreed] 16/6/2003 09:02

yep, looking greeeaaattttt

[kitkat] 16/6/2003 08:38

2 at 48p - seems like we'll get 60p this week

[sreed] 16/6/2003 08:29

mmmmmnm tasty

[master rsi] 16/6/2003 08:18

Well it seems we are going places already, with a rush of small orders and MMs moving prices very often as another MM buys 50K. price 43-47 +4.50p

[howmanyfools] 16/6/2003 08:15

any know if any large buys gone through or on the bid, thnaks, oh Master RSI vocalis is on your investtech link, cheers

[sreed] 16/6/2003 08:15

imho, on the way to 80-90p?

[sreed] 16/6/2003 08:07

bid just went up 2p in one go, 42p-43p

[kitkat] 15/6/2003 21:17

60pish is not impossible

[sreed] 15/6/2003 14:01

GGGgggreeeeattttttt!!!

whats the target for next week?

[kitkat] 14/6/2003 23:28

from the chart perspective a good run up should see these at the 90p level fairly easily

[hvs] 14/6/2003 19:29

sreed,

think you better stick to MFW

[sreed] 14/6/2003 19:18

looking for a move to 65p and beyond over next 2 weeks