Hss Hire Share Discussion Threads

[quotes_4_u] 11/9/2006 17:38

Started a new thread orange1, hope you will join me on it.

[orange1] 11/9/2006 17:10

Suffolk Life have spotted value here. It emerges that last week they bought
250,000 shares in the Company and are now interested in 1,627,300
shares representing 5.1% of the Company's issued share capital.

[quotes_4_u] 11/9/2006 15:13

Institution buys more stock.

Holding(s) in Company

RNS Number:7717I
Highams Systems Services Group PLC
11 September 2006



11 September 2006





Highams Systems Services Group plc

Notification of Holdings



Highams Systems Services Group plc (the "Company") was notified by a letter
dated 8 September 2006 that Suffolk Life Annuities Limited, having acquired
250,000 ordinary 5p shares in the Company, is now interested in 1,627,300
ordinary shares representing 5.1% of the Company's issued share capital.

[quotes_4_u] 10/9/2006 19:12

I think this new thread is needed.

Hss seems to be well off the radar, despite the shareprice trebling
from this years low there would appear still great potential for much
more gains medium term.
Current market cap is 2.4 mil, they have quite a impressive turnover
for a company so small, 18 mil last year, a very small 13k loss for
that period but this year all news seems to be very positive and most
importantly gross margins are improving as stated in their very recent
Agm so you can see the potential, with turnover so high, increasing
margins could mean big profits in relation to their current market cap.
Also stated is sound fundamentals so there seems a lot going for Hss
at present.

Imho this is undervalued, one for your watchlist.

[quotes_4_u] 08/9/2006 12:17

Sorry fund1, it was the Bgt thread i saw you post on.

This still appears unnoticed by the market despite the recent rise.

[terry91] 08/9/2006 12:12

Quotes,


Been looking at this myself. Bought some on the RNS will be topping up as soon as I can release funds but no real size availabe.


Looks to me lie another in before the crowd Quotes share. Cheers

[fund1] 08/9/2006 11:54

Hi quotes,I am a bit busy at work. Have to be careful
that the boss does not catch me. Can not remember being
on here it must have been a while back hoping to make
a quick buck. Yesterdays statement looked very good
should be more upside to come.

[quotes_4_u] 07/9/2006 15:22

Bgt up over 400% today but has very poor fundamentals and will need
to raise money, Hss valued at 2.4 mil and friendless today yet seems
to have everything going for it.

Disappointed to see no support at all today but i dont mind, it will
give me time to amass a reasonable stake before the herd notices the
potential here.

[quotes_4_u] 06/9/2006 13:51

I used to think and trade like that too farsight !

And how it cost me !

Not afraid to pay a recent high if the prospects look good.

ps....150k bid v 1.5k offer online too so mm's have no stock.

[farsight] 06/9/2006 13:39

I wish I'd bought some for tuppence and a bit back in June anf forgot about them. I don't feel like paying sixpence plus now. It shows what can happen though. I'll sit on the LRG I bought for 34p.

[quotes_4_u] 06/9/2006 13:31

Orange1.

I looked at this a while back and forgot all about them and i've just seen
them again and bought immeadiately, only a small amount but that's all you
can get.

Market cap 2.4 mil after todays rise, sound fundamentals, large turnover,
improving margins, not much stock about...i like it simple as that, cant
see much downside from these levels, i know the stock was 2p a while back
but on such a low market cap the upside is far greater than the downside.

[orange1] 06/9/2006 07:28

Over at Highams things are getting quite upbeat:

I can exclusively reveal that at the AGM to be held today, Ted Andrews, Group Managing Director will make the
following statement:

"As we have previously indicated, our first full year with RWP Recruitment
Services integrated into Highams progressed well with a return to operating
profitability.

Since the start of the financial year, I am pleased to say that trading has been
encouraging. As a Group, I believe we have accurately anticipated and
successfully responded to our clients' staffing needs, which have shown a move
more towards higher margin permanent rather than high revenue contract staff.
Consequently, we have enjoyed considerable success in our permanent recruitment
business, which has enabled us pleasingly to improve our gross margins.

As stated in our annual report, our emphasis is on finding such higher value
business, primarily from small and medium sized organisations. We continue to
seek and win new clients that meet these criteria in our niche market sectors.

The fundamentals of the Group and of its markets remain sound. We continue to
seek and explore strategic opportunities for the growth and development of
Highams and I look forward to the future with confidence."

So, gross margins are said to be improving pleasingly. Worth remembering that an increase in the gross margin of only a few percent, could, if expenses stay the same, lead to a bottom line profit of a few 100ks. That in turn would leave the PE at something well under five.

[vuelands] 19/8/2006 18:50

Orangel, Iagree with you I just hope that hss can really perform because they have huge potential. The S.E. has the greatest pool of computer A level kids but can the company find the market for them. Im told the demand from financial institutions is strong, but other areas of the econimy are more dfficult. Lets hope they have slashed overheads, which will immediately impact on the bottom line. Im deffinately staying with this, and will add when the directors do the same.

[orange1] 22/6/2006 11:51

guru11
it implies a rolling historic pe of 37. But the company is stating that it is picking up a head of steam. If it makes 320k of profit this year on say turnover of 20m the PE is 3.7.
With turnover of that magnitude the company is heavily geared. A small increase in profit in monetary terms can have a dramatic effect on the eps.

[robby balboa] 22/6/2006 10:49

Sorry wrong thread.

[guru11] 22/6/2006 10:48

Orange1 - thanks for that -
an eps of 0.1 against the current share price does not look so good then,
implies a pe of 37 at 3.7p.

[orange1] 22/6/2006 10:44

It looks to me as though there was an operating profit of 50k in the second half and a net profit of 16k. Doubling that gives 32k for the year which is equal to EPS of 0.1p.

[guru11] 22/6/2006 10:23

If we take the eps only in the second half and double it,
what pe ratio could we be looking at for next year is the question,
as it looks to me like although in the year they broke even,
there was a loss in the first half year of was it 0.83p per share

So are we saying in the second half they made up 0.78p eps and that full years eps could be 1.56p with a share price of 3.7p?

[orange1] 22/6/2006 10:15

So what exactly is the potential here?
The results of HSS show that the cost of sales is approx. 86% of total revenue, with admin expenses at 11%. This leads to an operating profit of 0.4% and a small net loss.
Over at Harvey Nash the picture is as follows: cost of sales represent 80% of total revenue with admin expenses at 19%. Operating profit is at 2.5% and net profit after tax at 1,7%. The company's shares trade on a PE of 10.6.
If HSS could manage an operating profit of 2.5% giving rise to a net profit of 1,7% they would have earnings of 1p putting them on a PE of 3. One could expect the price to rise to 10p maybe to put the shares on a similar ranking to Harvey Nash.
The admin. expenses of HSS are on a much lower percentage than at HN so there is probably no scope to cut them further. The company mentions recruiting extra sales staff so if anything these are likely to rise. It seems that the company is concentrating on improving the top line revenue figure (extra sales staff will achieve more sales) and securing higher margin work (reducing the cost of sales percentage to achieve a higher gross margin).
If the plan comes off, the share price could easily double or treble.

[gantenbrink] 22/6/2006 09:40

Fortunately I got in over the couple of months before they said that results would be okay and you could get them at 2.5. Picture seems to be improving here so let's hope it continues. MM's obviously expected more of a reaction as had marked up even higher but dropped back a bit now. Seems to be a little watched share but will perhaps catch a few eyes now.

[farsight] 22/6/2006 08:48

Jeez. No posts and no trades. I hope you guys held on in there. If not I guess I know who the winners are.

[orange1] 13/6/2006 10:57

I bought a chunk immediately after the reassuring trading statement to add to an existing holding.
The only insider info I can give you is that the ex-chairman (deceased) was an old soak. His departure should have led to a reduction in boardroom drinks cabinet bill.

[mrsasal490] 13/6/2006 10:52

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[orange1] 12/6/2006 11:42

Mrasal490
If so the shares are trading on a PE of considerably less than 10. An absolute snip. Have you been buying yourself?

[mrsasal490] 12/6/2006 10:29

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