Foresight Share Discussion Threads

[rambutan2] 07/10/2010 00:20

re the above shareholder list, Hambro and North Atlantic are one and the same thing (activist investor Chris Mills), and I'm sure that Bluehone sold out a while ago.

[davidosh] 07/10/2010 00:01

It is a minor correction to the above holdings info but this was reported a few days ago....

Focus Solutions Group plc, (AIM: FSG), a leading provider of multi-channel
distribution software to the global financial services industry, announces that
on 21 September 2010 it was informed that J O Hambro Capital Management ("J O
Hambro") had, on 17 September 2010, acquired 42,000 Ordinary Shares in Focus,
bringing their total number of shares to 1,485,000 and their total voting rights
to 5.01%.

Do not forget the chairman has a decent stake too....

Focus Solutions Group plc, a leading provider of proven enterprise solutions to the financial services market, announces today that it has been informed by Alastair Taylor, Chairman, that he has increased his notifiable interest in the Company following the purchase on 4 November 2009 of 35,000 ordinary shares of 10 pence each ("Ordinary Shares") at a price of 38 pence.
Following this transaction, Alastair Taylor holds 300,000 Ordinary Shares in the Company, representing 1.01% of total voting rights.



There cannot be very many at all in free float here. Any further contract announcements are going will not be accounted for whatsoever in the current forecasts so prepare for upgrades IMO. The company have also been promising a dividend for years and should surely have plenty of spare cash with which to pay one now ?

[simon gordon] 06/10/2010 20:05

Top Ten Shareholders - 6/10/10:

Azini Capital - 28.9%
John Streets - 26.89%
Liontrust - 11.01%
Hambro - 4.99%
Bluehone - 4.84%
North Atlantic - 4.84%
Octopus - 3.26%
Mark Thelwell - 2.4%
Blackrock - 1.27%
Sarah Rockcliff - 1.26%

Total = 89.66%

[cockneyrebel] 06/10/2010 17:33

Oh, and by the way - the directors are well motivated to see the sharprice hits 170p between now and this time next year:



CR

[cockneyrebel] 06/10/2010 17:28

Fwd PE 6.5 is remarkably cheap for the growth and the fact they are wrapping the market up here imo.

I picked up more today.

CR

[simon gordon] 06/10/2010 17:01

Share hasn't been this high since early 2002. I bought some more today as there was no sign of a pullback. I wonder if they'll upgrade eps forecasts with the TU next week. Got to be on the radar of some small cap fundies, though they'll find it hard to get a decent weighting as the shares are tightly held.

[envirovision] 06/10/2010 16:55

On a to be revised upwards 2012 forward PE of 6 and revenue, the only possible correction would be to the upside I should think.

I never understood that bit about the unnamed just buying them, strange comment? Since when did banks start buying their software vendors? or do they?

[nicedude1976] 06/10/2010 16:41

good to see the trend accelerating. watch out for possible corrections though. long term still has potential.

[envirovision] 06/10/2010 16:36

Kinda hoped IC would do an update.

[simon gordon] 06/10/2010 15:35

IC - 6/10/10:

Focus Solutions bags big banker

Financial services software firm Focus Solutions jumped more than 40 per cent to 76.5p after bagging a contract with an unnamed "major global bank" worth up to £20m.

The deal, to roll out its Focus360 solution, represents final confirmation of its successful three-year transition from IT services company to software vendor, while also reducing its dependence on its other big bank customer, HSBC. As we flagged in our last update (Buy, 38.5p, 10 Jun 2010), the Financial Services Authority's Retail Distribution Review is transforming the way many financial services are sold, including cutting commissions on product sales for independent financial advisers (they will charge upfront fees in future), and that's playing into the hands of Focus Solutions.

One odd point is that the unnamed global bank didn't just buy the company and be done with it - but maybe it will in future.

IC VIEW:

On FinnCap's EPS estimates of 7p this year and 12.2p in 2012, the shares trade on just 11 times earnings, falling to six next year. Despite the leap in the price from our buy advice at 40p (18 Dec 2007) that's still cheap given the potential for Focus360. So we stick with our long-term buy advice. Buy.

[mikeja] 05/10/2010 18:16

Bt 55k today

[cockneyrebel] 05/10/2010 15:11

I think Small Co Sharewatch covered these in Ideas and Updates a little while back - if so. does anyone remember the issue number?

ta

CR

[envirovision] 05/10/2010 13:38

Wonder why FinnCap are being so cautious?

[mikeja] 05/10/2010 08:38

The license fees are presumably pretty much pure profit so there may be no problem with booking them at the start of the contract.

[simon gordon] 05/10/2010 06:56

FT - 5/10/10:

Focus Solutions shares leap nearly 41%
By David Blackwell

Shares in Focus Solutions, the software group, jumped nearly 41 per cent to 76p on news of a contract with "a major global bank" worth £20m ($32m) over the next five years.

The Aim-quoted company reported total turnover of £9.8m for the year to March 31, and pre-tax profits of £2m.

Richard Stevenson, chief executive, described the contract as transformational. It was the result of the change in the business model from a provider of professional services to a specialist software company attracting higher margins and recurring licence revenues.

FinnCap, the company's broker, is maintaining its forecast for pre-tax profits to March 31 at £2.9m on sales of £12.8m. However, it said "the risk to our forecasts is now on the upside and we are therefore increasing our price target from 70p to 105p".

The company is expected to put out a trading statement next week.

[envirovision] 04/10/2010 21:24

I would guess its Barclays.

(SHARECAST) - Focus Solutions Group has won its biggest deal yet for the firm's focus:360° software that allows companies, mainly the big banks, to provide financial services.

AIM-listed Focus will pocket about £10m from the contract with a "major bank" - £6.5m in licence fees, around £2.5m in implementation services and an extra £1m a year in support and maintenance.

There could be another £10m over the next five years thanks to annual support and maintenance fees, transaction fees, and additional implementation services.

It's said the latest contract win is not with HSBC or one of the government-backed institutions, Lloyds and Royal Bank of Scotland.

Focus has weathered the financial crisis pretty well, bagging deals with key client HSBC, which have supported the share price.

Today's rally, 50% at one stage, took the company's value up to levels not seen since the dot-com boom turned to bust in 2002.

"The bank has selected focus:360° multi-channel distribution to provide a single platform to support every customer engagement for financial advice made through the Bank's branches, call centres and on the internet," according to a statement Monday.

"The solution will support over 1,000 advisers and administrators, as well as providing a 'direct to consumer' channel for 5 million account holders."

[simon gordon] 04/10/2010 19:41

Astaire - 4/10/10:

Astaire view: As previously argued, Focus was already trading on a low multiple compared to the rest of the software sector for a company (7.7x FY11 and 4.4x FY12)) that could boast three of the top four UK banks, eight out of 10 UK Life and Pension providers, plus bancassurers, wealth managers and mortgage providers. Its software enables companies to generate a single view of a customer across multiple channels increasing efficiency but also enable compliance with the FSA's RDR requirements. The contract win will result in upgrades for FY11 but also underpin business for the next few years. The experience with HSBC, that was recently extended, suggests that the £20m estimate over five years looks realistic.

[dasv] 04/10/2010 18:32

"Shares in Focus Solutions (FSG) climbed 21.5p to 75.5p after the financial services focused provider of multi-channel distribution software announced that it has won a new contract with a major global bank worth 10 million pounds. The bank has selected focus:360° multi-channel distribution to provide a single platform to support every customer engagement for financial advice made through the bank's branches, call centres and on the internet. What's more, the group anticipates that the contract will be worth up to an additional 10 million pounds over the following five years from annual support and maintenance fees, transaction fees, and additional implementation services. "

[interceptor2] 04/10/2010 17:15

I also had these on my watchlist, and brought in at todays high, and will keep adding into strength. In the past I have learn't the hard way that with situations like this, I have waited for a retrace which never happens. I always bite the bullet now and just buy the shares.

Good luck.

[fairenough11] 04/10/2010 16:59

wtf,

I had these on watch for ages as I liked their business model.I hold a few but could do with a retrace to top up.Some contract that which is gonna repeat itself.

multibagger in waiting imo.

[amt] 04/10/2010 14:59

I have bought as many as I need now so hope that isnt the kiss of death. Looks like a no brainer at 77p to me. DYOR NO ADVICE.

[dasv] 04/10/2010 13:35

yep - i think although the share price has risen sharply today, the market has still underestimated the positive impact of the contract on the future of the business. Besides that, FSG was priced far too cheap prior to the contract win. If only the spread had been lower I would have bought a week or two ago when I was looking at SDM.

-

p.s. thanks to enviro for mentioning these

[simon gordon] 04/10/2010 13:24

Dasv,

FSG looks ripe for Standardized Unexpected Earnings, especially with the sales pipeline bulging.

FinnCap forecast prior to the monster contract:

03/11 - 7p

03/12 - 12p

If they land some more monsters then 03/12 should be smashed to smithereens.

[wjccghcc] 04/10/2010 13:21

Great contract.

Has anyone got to grips with their revenue recognition policies? It looks like they booked the whole 5 year Mastek contract license in revenue last year rather than spreading it over the term of the agreement.

Isn't that a bit aggressive? I note that other software companies like CRW/IGP don't tend to do this.