Ideagen Dividends - IDEA

Ideagen Dividends - IDEA

Best deals to access real time data!
Level 2 Basic
Monthly Subscription
for only
Monthly Subscription
for only
UK/US Silver
Monthly Subscription
for only
VAT not included
Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Ideagen Plc IDEA London Ordinary Share GB00B0CM0C50 ORD 1P
  Price Change Price Change % Stock Price High Price Low Price Open Price Close Price Last Trade
  2.00 1.36% 149.00 149.00 148.50 148.50 147.00 09:00:06
more quote information »
Industry Sector

Ideagen IDEA Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

yump: I had these at a similar price and luckily ? decided to sell around 160p. I've wondered quite a bit whether global competition has now made it very difficult to build a business that continues to grow profits for years and therefore its very unlikely that you would happen to have one in a portfolio. Conclusion from that is that you sell in the golden period and don't do the LTBH thing that has been a mantra of investing for so long. But as far as I can see, the long term argument is always based now on the very few businesses where it would have succeeded. Also when they look like they're going to do it for any length of time, the share price rockets to a high p/e, so perhaps you get your used-to-be-long-term return in a few years anyway.
leavers: I had an exchange with the Ideagen CFO recently and he was pretty helpful in clarifying the way the company is planning its growth. As I tried to explain in my posts in mid July when I exited my position entirely I have become concerned about how the company would fund its growth plans, the risk the company would take on to achieve them and the impact this could all have on shareholders from the perspectives of company leverage, EPS dilution and execution risk from stretching to bigger and bigger acquisitions. This is what he kindly explained to me: The funding requirements to hit the £100m 2022 revenue target is around £90m. That £100m of revenue will be hit by organic growth accelerating from 8% to 11% and from them buying approx £9m of EBITDA at 30% EBITDA margin at a multiple of 10 times EBITDA (as per recent acquisitions). This £90m would come pretty much equally from bottom line cash generation, new debt and new equity. The equity or debt mix could be flexed according to market conditions (ie if the cost of the debt at the time was low or if they could take advantage of a high share price with an opportunistic placing). £30m of debt would equate to 1 x EBITDA in 2022 so although that ratio would need to be higher initially to achieve the EBITDA target, if achieved successfully it wouldn’t result in an over-levered business by normal convention by 2022. Growing the proportion of recurring revenues expected over the next 3 years gives them a high degree of confidence in their ability to repay borrowings - he confirmed that debt funding in many ways is sensible as long as they don’t push it too far. An equity raise would likely be around 10% of market cap, so a 10% dilution to us. We have been warned! He pointed out that after a bit of dilution-driven eps stalling this year Finncap (ie the Ideagen board) are forecasting eps of 6.0p for the current financial year which would be 25% growth on last year. I also asked about acquisition size and his view was that they would continue to acquire within their historical range of transactions relative to the size of the group which has worked well for them to date and clearly reduces risk. The market is fragmented but more so at the market end of the market and large targets would be harder to acquire within the investment criteria they have set. So we should expect more £5-20m add-ons, anywhere in the world pretty much. So all of this confirms that they will need a lot of capital (pretty obvious) and that we will suffer some dilution such that EPS growth might not match sales growth. What is news to me is the higher than expected cash generation, the debt / equity split and the accelerating organic growth (welcome and very important). I don’t know if this makes me run out and re-purchase my position but I think it raises the price at which I would be happy to do that and it re-assures me that they are thinking about everything in a measured way (though I had no reason to doubt they were t doing that). Hope helpful.
leavers: As I posted on 14/5, my concern was that EPS growth in these results wouldn’t be that impressive and indeed 4.8p EPS and 15% growth is the lowest in many years. I don’t believe it’s right to dismiss this, it's integral to value of our shareholdings. At 146 the shares trade on a current year PER of 30 and a PEG of 2, toppy stuff. The focus on recurring revenues adds a strong defensiveness to the share price, it doesn’t necessarily add growth to the bottom line and support a higher share price. The management and brokers are looking for a doubling of EBITDA to £30m over 3 years to 2022 - the simple maths tells you that even if organic growth accelerates to 15%, the company would need to add £8m of acquisition-generated EBITDA in that period, equivalent perhaps to around £50-100m of enterprise value acquired (at the current 8% its more like £10-11m needed). The company has always run almost no leverage (one of the reasons I have been invested) but to achieve its targets in my view it is going to need to push net debt/editda towards 2-3 area over the next few years to avoid further share placings. That isn't crazily high especially with the strong recurring revenues but nevertheless the risks rise for shareholders. I don’t mean to be down on the company - their track record is absolutely first class and they keep delivering. But as an investment I have become less excited about the company in the last 12-18 months because to support their growth targets and a x25-30 valuation they will need bigger and bigger acquisitions which in turn will require dilution of shareholders or weakening of the balance sheet and greater execution risk. The 180p broker target to me rehires EPS of 7p+ and I don’t see that around the corner. Great company but not quite so sure a great investment.
rivaldo: Excellent and sizeable earnings-enhancing acquisition for £15.8m this morning - notably addressing compliance in the financial sector: Https:// Lots of recurring income, great cash generation and a blue chip client list: - Insight is used by over 40 organisations including 7 FTSE 100 and 2 Fortune 100 companies - Customers include Nomura, Santander, Investec, Hargreaves Lansdown, and Rathbones OT : snap multibagger!
leavers: Solid results, very nice. One point of caution is that adjusted EBITDA is +30% but they had a big placing in Sept so after that dilution adjusted EPS might only show a +20% increase to around 5.2p, giving them a current PER of 25-26 area. Recurring revenues are jumping but on that multiple and with organic growth of just 8%, I don't think that gives the shares a ton of short-term upside potential. If you look a year forward and guess adjusted EPS of +25% to 6.5 that could maybe justify a 160p ish share price but the stock will need some further news on acquisitions to get there. So my view is solid results, a touch light on organic growth and as always watch the valuation. The shares have been pretty weak for the last month and are flat over 6 months which suggests to me they are up with events. I was hoping for a little more on the revenues/ebitda growth side and given I am very heavy in the shares I will definitely trim my holding at the 150 area if we see that again soon.
glasshalfull: I’m currently writing a brief synopsis on each of my holdings...& IDEA remains one of the cornerstones of it. Not sure if the earnings table can be transferred over so here’s the link HTTPS:// SPRING PORTFOLIO 2019 WRITE-UPS (1) IDEA (IDEAGEN PLC) - Mr Dependable * Share Price 147p * M/Cap £323m * Enterprise Value £324m * Shares in Issue 219.8m * Stock Rank 41 (Quality 67 / Value 4) Similar to my previous updates, Ideagen is now a 14x bagger for me in my 9-years invested & unsurprisingly remains a cornerstone of my portfolio. They provide Integrate Risk Management (IRM) software & services to organisations operating in highly regulated industries. We are talking industry sectors across the globe from aviation and healthcare to banking & finance. It has a global presence & a customer base that includes many of the world’s blue-chip companies. Over 4,700 organisations use Ideagen's products including 7 of the top 10 UK accounting firms, ALL of the top aerospace & defence companies AND 75% of the world's leading pharmaceutical companies. Importantly they have a fantastic customer retention rate which has been circa. 95% for as long as I can remember. In terms of the numbers, they released positive H1 results in Jan 2019 & highlighted continued strong growth with recurring revs rising to 67% which provides increased visibility on earnings. SaaS revenues grew at +80% & now comprise 26% of overall revenues. This is a v important metric to watch as it de-risks forecasts & reliance of one-off software licence revenues. Ideagen has delivered 8 years of unbroken double-digit EPS growth. Worth pointing out that the growth in EPS is forecast at only +15% in FY19 simply due to a £20m placing in Sept 2018 (142p) & the subsequent timing of acquisitions. Yr end April Revenue Adj PBT Adj EPS 2010 £1.0m £0.2m 0.6p 2011 £2.3m £0.5m (+150%) 0.9p (+50%) 2012 £4.0m £1.0m (+100%) 1.26p (+40%) 2013 £6.5m £1.9m (+90%) 1.55p (+33%) 2014 £9.0m £2.6m (+37%) 1.7p (+12%) 2015 £14.4m £3.6m (+38%) 2.1p (+27%) 2016 £21.9m £5.7m (+58%) 2.7p (+26%) 2017 £27.1m £6.9m (+22%) 3.2p (+19%) 2018 £36.1m £9.7m (+40%) 4.2p (+32%) 2019e £46.5m £12.1m (+25%) 4.8p (+15%) I met the team early in 2019 at their H1 FY19 presentation & came away v impressed. In his first year as CEO, Ben Dorks has done an excellent job, with a superb grip on operational performance. This builds on the excellent development of the company under David Hornsby & I believe they are in very capable hands. By FY22 IDEA are targeting £100m revenue at 30% EBITDA margin with 74% of revenue recurring. finnCap have a 180p price target which is +22% from the current price. While this may appear a touch rich at a first glance, I’d suggest that it’s warranted as they’ve delivered in spades in the last 9-years; operate in a risk management market growing at +13% per annum; have fantastic client retention; strong recurring revenues & an offering that has increased enormously in breadth & depth via 16 x acquisitions that have delivered an enviable product set across multiple industries throughout the globe. Yes, Ideagen is my number 1, my GOALIE in the portfolio team & a company I believe my Mr DEPENDABLE. I’m sure it will remain a core holding for some time to come 😁 Kind regards, GHF
rivaldo: As regards Garbetklb's post, firstly a total of 1.8m shares have been issued, i.e at the current price around £2.7m (no idea where his £5.2m comes from). Secondly, only one director fully sold their resulting shares. The other two have only sold 50% of their additional shares - enough only to cover costs and income tax payable (which would of course be taxed at the higher rate of 40%). Thirdly, the early exercise of the LTIP shares - without a full resultant sale - is a GOOD sign. This is usually done because the people exercising wish to minimise their tax liability by exercising early rather than waiting, since they presumably believe that by waiting the share price will rise sufficiently such that they would have a much higher income tax liability.
rivaldo: Great news - a quick £20m placing at 142p to fund a variety of acquisitions which are already identified and should be completed within weeks. Only recently we'd have been over the moon at raising money at 142p, so no complaints here, and the discount to the current share price is really pretty tiny. And note the para on current trading: Https:// "Current Trading and Outlook Trading remains robust and in line with management expectations. The Company is seeing strong demand for its products from new customers and the Board are pleased to see further growth in its recurring revenues."
rivaldo: Shares Magazine today features IDEA as one of their Great Idea updates, and conclude: "A now largely proven quality business, investors should stick with the stock for further share price upside." Interestingly, they also say: "remember, management have their own 200p internal share price target, and we would not bet against such optimism."
rivaldo: That's an interesting article in Shares Magazine, disclosing the internal 200p share price target and noting that current forecasts could be beaten "by a wide margin". Other useful snippets: GRC "is a $7bn-a-year GRC market yet it remains highly fragmented. Ideagen, which has been around since 1993, wants to act as an industry consolidator as well as driving consistent organic growth." "It aims to double revenue and profit every three years and has met or beaten those targets in the past. For example, in 2015 it reported revenue of £14.4m and £3.6m pre-tax profit. The year to 30 April 2018 is expected to show £36.1m of sales and £9.7m of pre-tax profit. Throughout this growth the company has remained highly cash generative and paid modest dividends. The US is now its number one growth market, as it is the world’s single biggest place for GRC spending. That means accelerating acquisitions growth, such as April’s $8.7m purchase of Medforce, a healthcare compliance business." "The net of regulation red tape and compliance accountability is getting ever tighter around industries and organisations across the world. The next big one is EUwide General Data Protection Regulation (GDPR) which comes into force on 25 May and is the latest in a long list of rules designed to keep us better protected. All this puts UK software supplier Ideagen (IDEA:AIM) in a sweet spot thanks to its wide range of off-the-shelf specialised tools. The Midlands-based company concentrates on what it calls the governance, risk and compliance (GRC) space, providing information management solutions to highly regulated industries. Think healthcare, aviation, banking/finance, complex manufacturing, defence and energy."
Your Recent History
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20191016 04:27:48