Ideagen Share Discussion Threads

[glasshalfull] 19/7/2013 09:24

I am attempting to arrange a "remote" presentation with the CEO.
No, I don't mean out in a field in the middle of nowhere, but possibly an interactive presentation via the web.

Please email me if you're interested.

[e-mail]

Regards,
GHF

[glasshalfull] 16/7/2013 21:57

Busy all day. Only managed a quick look at results but pleased to say they tick the box for me.

Excellent cash generation; good level of recurring revenue; nice spread of contract wins (many with blue chips); prospect of further earnings enhancing acquisitions; strong balance sheet with over 25% covered by net cash...therefore the current valuation looks very reasonable IMHO.

Here's what TechMarketView had to say,

Ideagen: vertical focus pays off
Georgina O'Toole, 09:57, 16 July 2013

Ideagen, provider of compliance-based information management (CIM) software, has released its maiden full year results since floating on AIM at the beginning of July 2012 (see Ideagen joins AIM). Its results for the year ending April 2013 reveal 63% top-line revenue growth to £6.5m boosted by a full year contribution from its acquisition of Proquis and a four-month contribution from Plumtree (see Ideagen enters UK healthcare market via Plumtree). At the organic level, the Group states that in the health business, organic growth was 25%. The overall organic growth rate is not revealed but, by our calculations, it looks likely to have been somewhere between 20% and 25%. Not bad going! And represents the fourth consecutive year of organic revenue and adjusted EPS growth. Adjusted EBITDA (including contribution from earnings accretive acquisitions) stood 71% higher at £2.02m. At the year end, net cash stood at £6.37m (compared to £1.5m), boosted by the £6m share placing completed in January.

Ideagen's portfolio of products comprises elements of Enterprise Content Management (ECM) and Governance, Regulation & Compliance (GRC) software. The broader areas of ECM have all but been consumed by broad-based vendors, but Ideagen's combination of ECM and GRC (or CIM!) should work well as it focuses sectors such as pharmaceuticals, aerospace & defence (A&D), healthcare, utilities and manufacturing where organisations must comply with strict regulations around document and file management.

So far, much of Ideagen's focus has been on the health sector, as highlighted by the acquisitions of Plumtree, and more recently, MSS (see Ideagen takes on MSS for patient management solution). However, it has also had some good wins over the year within the A&D sector, with the MoD, BAE Systems and Northrop Grumman. The challenge going forwards will be managing its growth as it ventures into other vertical markets and further develops its SaaS business model.


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I reckon this is a share to simply tuck away and offers accelerated growth through both organic and acquisitive means. The outlook statement indicates strong trading and they are clearly gaining momentum.

Well done to DH and the company.

Regards,
GHF

[yump] 16/7/2013 09:09

I don't normally get into companies that are growing by acquisition, because more often than not they appear to be just empire building with shareholder's money.

Now and again, you get a company that actually is trying to exploit a fragmented market by consolidating a mix of businesses. A bit like the good old days of conglomerates that actually grew profits and earnings, despite doing plenty of acquisitions. Because they had a good business model and sound strategy for acquisitions.

I'm hoping this is one. The market is certainly fragmented and they seem to be getting what they intended from acquisitions so far. There seems to be plenty to go for and each new company opens up more cross-selling opportunities and client contacts.

[lanzarote666] 16/7/2013 07:26

Results out today and your sources are good GHF - slightly above market forecasts.

I particularly like 'The company has a strong pipeline of business, and we have secured a number of new contracts in the new financial period including the GBP150,000 DartOCM contact announced in June 2013 and the GBP300,000 DartEDM contract announced separately today. In addition our recurring revenues and contract renewal rates remain high'

I think we may see 27p later this year.

[hazl] 16/7/2013 07:13

No wonder its been creeping up!

Thanks Themachine for your reply and ghf,yump.

[yump] 15/7/2013 22:00

Be interesting that's for sure. I wasn't sure about the exact eps, but the rapidly growing revenue and particularly the profit figure are pretty impressive.

It doesn't look like a company that's going to keep issuing shares and making 'grand' acquisitions. Appears well-run and I'm sure the valuation will reflect that at some point in the next year, or earlier.

Many good companies can't actually be bought for a p/e less than 15, once they are recognised as such.

[glasshalfull] 15/7/2013 21:49

Well forecasts for tomorrow are for £6.5m turnover, £1.8m PBT and 1.5p EPS (given tax charge rising from 16% in 2012 to 22% in 2013).

I think these will prove to be conservative and would nudge up forecasts ever so slightly to £1.9m PBT and 1.6p EPS

Hoping that 2014 forecasts will be ratcheted up as this year progresses. At this time they look pretty conservative but one should remember that this is due in part to the placing they undertook in Dec 2012 (31.5m shares issued at 19p...1.3% premium to the prevailing shareprice) and part consideration for Plumtree (4.5m shares issued at 20p each). These additional shares amounted to an increase in equity in the company by approx 45% & we also had 7.2m shares issued in deferred consideration for Proquis.

Add this all up and the number of shares in issue has risen from 77m to 121m. This has the downside effect of suppressing the EPS growth in the short term BUT the upside is we have a well capitalised company with over £6m net cash on the balance sheet...and we can now see it adding what appear to be excellent earnings enhancing acquisitions in the healthcare sector with Plumtree appearing to have integrated well into the business and MSS looking like a great strategic fit. These will hopefully augment the companies organic growth and recurring revenue.

The VA contract clearly knocked the shares from the 23p level but again given the structure of the deferred consideration entered into as part of the initial Proquis deal, it appears that the contract loss won't effect the company much given reduced dilution as the shares will no longer be issued & profitability this offset.

So, all eyes on current trading and outlook statement tomorrow for the fist signs that current year EPS forecasts do indeed look conservative.

Regards,
GHF

[themachine99] 15/7/2013 15:59

Whatever the forecast is I suspect it may well be beaten as 1) Idea has outperformed market forecasts consistently and 2) There is a big pile of cash to make acqusitions with no further dilution.

[hazl] 15/7/2013 10:13

your very interesting forcasts for the years ahead,

ghf, will presumably be altered, in a positive way, by the acquisition, I imagine, going forward?

[hazl] 15/7/2013 09:03

sounds good to me yump

[yump] 15/7/2013 08:35

I'm assuming given earlier statements that this is going to be on a p/e of around 10 after tommorrow, which should mean that there's a bit of catching up to do on the share price.

I know small companies can sit on a low p/e for quite a while, even if they are growing well, but if profits almost double, something's got to give at some point.

[glasshalfull] 12/7/2013 20:20

Yep noticed that yump. Interesting finish & while you may well be right I wonder if an overhang has just disappeared?

I've added a 6-figure stock amount this week & delighted to have achieved this sub 19p given the positive acquisition announcement, although there was clearly a seller. Like the company and management.

Regards,
GHF

[yump] 12/7/2013 17:34

That was an unexpected move late on. Tipsheet at w/e ??

[hazl] 12/7/2013 07:54

interesting delayed trades lately.


separately

[hazl] 10/7/2013 09:09

fair enough

so 16th for the next announcement then.

[glasshalfull] 10/7/2013 08:59

hazl - it was just a trade that went through after the market close at 19.5p & provided a false closing price. Absolutely no shenanigans and if you look at a few stocks on a regular basis it happens fairly regularly.

Regards,
GHF

[hazl] 10/7/2013 08:56

thanks. will do.

amuses me the way the share price was put up 0.50 at the bell last night so they could pull it back by the same this morning.....they are a crafty bunch these mms! lol

imo

[glasshalfull] 10/7/2013 08:40

Hazl - Yep, I was also invested when they were listed on PLUS, albeit towards the end of their PLUS listing. There's been a few crackers on this thread - still are. OMIP listed on AIM earlier this year and has doubled. You may also wish to cast your eye over SPRP's trading update this morning....and they will be making the jump to AIM in the next year.

Regards,
GHF

[hazl] 10/7/2013 08:18

ah ,jimbobaroony, I admire anybody risking that market, at that point, but you

were clearly able to spot a good thing !

[jimbobaroony] 10/7/2013 08:09

Hazi, I was in when they were on plus. There could be months between trades back then!

[hazl] 10/7/2013 07:53

'Ideagen's financial results for 2012/13 show a turnover increase of 62 per cent to £6.5m and operating profit up 70 per cent to £2m.'

[hazl] 09/7/2013 09:04

glasshalfull were you in these when it was on plus ?

[hazl] 08/7/2013 10:43

'Revenue growth has been particularly encouraging in both the US and UK Healthcare sectors driven by the acquisitions of Plumtree Group Ltd and Proquis which have been successfully integrated into the group and have both delivered significant organic revenue and profit growth during the year. The Company will issue its preliminary results in mid-July. David Hornsby, Chief Executive of Ideagen, commented, "I am delighted with the progress that we have made this year particularly in our key Healthcare sector. Our solutions continue to solve critical business problems for highly regulated organisations and I look forward to further organic and acquisitive growth next year '

from announcement

[hazl] 08/7/2013 09:30

decided to dip my toe in here last week.

good luck folks.