Hss Hire Share Discussion Threads

[orange1] 05/7/2011 21:33

This from Growth Company Investor:

Profits surge at Highams

05/07/2011 Robert Tyerman

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Niche recruiter Highams Systems Services (HSS) is winning new clients after hoisting annual profits 130 per cent to £303,000 pre-tax.The Caterham, Surrey-based company, which also provides IT and other consultancy and kindred services to insurance and financial companies, increased revenues 20 per cent to £9 million in the year to March, which it ended with cash up from £4,000 to £176,000 and no borrowings.

Chaired by significant shareholder and former stockbroking chief Ken Ford, Highams drew a third of last year's revenue growth from new clients. Managing director Mark de Lacey says the current market is good, as companies in its sectors adapt to new possibilities in IT and e-commerce, while those in insurance prepare themselves for the impact of next year's European Union Solvency 11 reserve requirements, and those in banking adjust for the impending Basle 111 global capital adequacy ratios.

Highams, which has been hiring to add to its mostly long-serving staff, increased the proportion of job-specific contracting recruitment, which is relatively more profitable and brings more repeat business, to 65 per cent of the total, as against 'lumpier' and more volatile permanent recruitment, which accounted for 35 per cent. With good banking analysts commanding £550 to £600 a day, the target is 80 per cent contracting and 20 per cent permanent.

de Lacey wants to take Highams further into the asset management sector, where it already has a useful toe hold in Belgium, and sees Germany and Holland as particularly attractive markets. The company is opening a London office in the autumn to improve its client network and attract more sales people of the right calibre, and remains open-minded about corporate acquisitions.

Analysts see Highams increasing pre-tax profits to £400,000 this year, with £500,000 on the cards for 2012-13, and bulls suggest £800,000 pre-tax is a possibility for 2013-14. By then, the company, which has been nursed back to health by the present board after previous losses, might have decided to return to the dividend list.

Highlighted at 2p by Growth Company Investor in 2009, Highams shares have hit 4p over the past year and now trade at 3p, up 0.25p today, valuing the company at £2.1 million. A prospective p/e ratio of six seems grudging, and the shares should make further progress over the medium term.

[glasshalfull] 05/7/2011 17:36

Look decent value.

Flagged to me today and they look significantly undervalued on a market cap of £2.07m, margin improvement, PTP up, positive cashflow with net cash and all on a current PER of 4.

Illiquidity & spread will put investors off and the company only update market on 3/4 occasions during a calendar year (AGM Statement, Interims & Finals) which won't interest many that are looking for a bit more excitement. Also looks like reinstatement of a D/V is on the cards this year if the improvement continues.

Regards,
GHF

[orange1] 05/7/2011 08:13

Results out today:



EPS of 0.74P (higher than forecast - giving a PE of less than 5).

Highlights

0 Increase in revenue, gross margin and profit

0 Group revenue at GBP9m (2010: GBP7.5m)

0 Group profit before taxation GBP303,000 (2010: GBP131,000)

0 Profit margins improved to 18 per cent. (2010: 16.8 per cent.)

0 Earnings per share 0.73p (2010: 0.34p)

0 Market activity continues to improve

0 Increase number of contractors on site and permanent placements

0 Stronger Highams team, both in size and delivery capability

0 Increase in new clients in specialist areas

Ken Ford, Chairman of Highams, commented:

"I am pleased to report our full year results to 31 March 2011, which have seen an encouraging and sustained increase in revenue, gross margin and profit and the continued turnaround and growth of our business.

The Group's financial performance, along with an improved balance sheet and cash position, now provide Highams with the opportunity to build on its existing strong client base and to move into new specialist areas within the financial services arena."

[meict] 09/3/2011 15:06

Well, what's happening here?

Highams have 69 million shares in issue of which more than 53 million (or 77.375%) are tightly held by the Directors, Sanibel Investments, OMX Securities Nominees and E.l. Andrews but yesterday a sale of a little over 100,000 sent them plunging .25p!

Any ideas?

[meict] 05/11/2010 11:16

Just out of interest, HSS made The Times this morning with this in their 'Deal of the Day' column:

'Higham Systems Services shares jumped 1p to 4p on AIM as Seymour Pierce started coverage by applauding results and urging clients to buy them. The IT recruitment specialist for the insurance industry is chaired by Ken Ford, the former chief executive of Teather & Greenwood, the stockbroker bought by Landsbanki of Iceland in 2005.'

This is not 'exactly' true as the Market Makers had lifted the share price to 4p before Seymour Pierce's statement was issued – alas, it was really just a reiteration with the target price still at 4.5p.

Finding no punters the MM's have already started dropping the share price

[scott84] 04/11/2010 14:35

Careful CR, you will have smellyjim on your case because your holding
is so small, remember you and him are always attacking me if i have a
small holding but why do you think i have small holdings, because the
stocks are illquid, this of course confirms what an arrogant bitter
person you are because you attack me for having small holdings in illiquid
stocks calling me a penny share scalper but of course it's ok for you :-))

[scott84] 04/11/2010 14:32

I remember exactly when i sold, it was on my birthday, i remember the
day well and the price was 4.5p and it was many years ago, the thread
is over 4 years old CR.

But just to keep you happy i bought at the very high and sold at the very
low and lost a fortune like i do with every stock i have ever touched.

Strange how i'm making my living out of this game ?

[cockneyrebel] 04/11/2010 14:30

Nope - got 150k - too few to worry about.

Can't get overly excited as they are too illiquid to hold a load but decent results imo.

You sold at the bottom Hatey Boy lol! :-)

CR

[aishah] 04/11/2010 13:24

Seymour Buy re-iteration today

[aishah] 04/11/2010 10:45

Interim surge at Highams
Eps fcst of 0.4p ==> p/e=10. Outlook improving finally for HSS. More to come IMO

[aishah] 04/11/2010 10:42

04 November 2010
Highams aiming higher


Interims from Aim-listed IT staff agency (ITSA) Highams Systems Services show a 17% rise in revenue to £4.41m for the six months to 30 September, and profit before tax of £128,000 (margin 2.9%), against just £40,000 in 2009. This is a sharp improvement on the 29% drop in revenue reported in FY10 (see Highams battles on), and sent Higham's share price up 33% to its highest point since 2008.

Highams remains focused on its niche within the financial services and insurance sectors, and it has benefitted from longstanding relationships with existing customers. But importantly it's also been winning a "range of new clients" - a sure sign that conditions in its niche markets are improving and a testament to Higham's attractiveness versus its competitors. Chairman Ken Ford certainly thinks so, and expects a further improvement in revenue and profit in the second half.

[tech] 04/11/2010 08:07

Results look good, recovery play

[balcony] 04/11/2010 08:02

Looks like its HSS day today

[meict] 03/11/2010 14:13

Interesting, somebody sold 250,000 shares but the share price went up 0.125p!

No prizes for guessing who BOUGHT the shares.

[aishah] 09/9/2010 11:45

09-Sep-10 Highams Systems HSS Seymour Pierce Buy 2.88p 4.50p - Reiteration

[meict] 08/9/2010 00:25

Highams Systems Services (HSS) made a mere £40k in the first half of 2009-10 but by the year end it had risen to a credible £131k.

If HSS just matches what they made in the second half for both halves of 2010-11, then profit for the year will be around £180k. But Highams is not standing still! Supposing that they increase turnover by a trifling 20% then even without the economies of scale, they will be making around £220,000. Of course, I expect the actual net profit to be considerably more.

Alas, there is a downside, HSS, is well off the radar and with the directors and large shareholders holding more than 77% of the equity it makes the share somewhat illiquid. This could be advantageous, when the share price moves it will soar.

Yesterday's RSN (AGM statement) had little effect in reality; the MM's raising the price by 0.25p before the market opened. Although this happened two investors were willing to buy 23,468 and 30,000 shares at 2.96p. Another small upwards move and they will be in profit.

The share is not as illiquid as we may think as it appears that the MM's are holding a considerable amount of stock. They are keen to sell but reluctant to buy in any quantity – remove this overhang and the share price can only go one way.

I'd recommend buying on weakness but I think we've seen the last of that.

Meic

[cockneyrebel] 07/9/2010 11:50

nice statement today. Seems to be little interest. Perhaps the next results will wake the market - getting bored waiting here.

CR

[aishah] 07/9/2010 08:15

At the AGM of Highams Systems Services Group plc, the AIM quoted recruitment consultancy and leading niche provider of technology, business and professional services to the insurance and financial services sectors, being held today at 11.00am, Ken Ford, Non-Executive Chairman, will make the following statement:

"As Highams reported at the full year the improvement in trading has continued. Numbers of contractors on clients' sites have increased steadily and revenue for the first quarter was up on the same period last year. Highams has not been affected by public sector cutbacks and providing markets remain firm, we are optimistic of a further improved year."

[meict] 06/9/2010 17:57

Some minor buying before the AGM,perhaps somebody knows something.

[meict] 04/9/2010 21:21

Annual General Meeting on Tuesday 7 September 2010 at 11.00 a.m. at:

Seymour Pierce Limited
20 Old Bailey,
London, EC4M 7EN

Hopefully, I will be able to limp along on Tuesday morning to find out what they have to tell us about what has been happening since 1 April.

As the first six months of 2010-2011 ends on the 30th of this month there may be good news in store.

I am now finalising my list of questions.

Is anybody else attending? Would anybody like me to ask a question or questions on their behalf?

Meic

[meict] 16/8/2010 12:29

Highams Systems

Until recently I hadn't realised that Highams were a quoted company – they floated in December 1996 at 36p but now languish at a measly 2½p!

In the late 1990's and the early years of this century I tried to obtain a job through them in the Netherlands. They never found me a job but I remember how professional they were – unusual these days in IT recruitment. I also remember how unprofessional most of the other agencies were. One day I asked one of Harvey Nash's 'consultants', who hadn't a clue, how long she'd been in selling. She replied that she wasn't in selling but in recruitment – and this was a girlie with an arts degree!

Anyway, today I stuck my toe in and bought 150,000 at 2.65p (they are showing on PLUS). I was amazed! The middle price moved immediately to 2.63p!

A bit volatile! I have high hopes for Highams.

Meic

[aishah] 03/8/2010 10:01

Highams upbeat after £0.5m turnaround