Ideagen Share Discussion Threads

[battlebus2] 09/12/2013 19:29

Good luck Techno you have your stated reasons for selling but i fail to see how the rating is not cheap going forward and as for the caveats...

[techno20] 09/12/2013 08:15

Have taken a call to exit this morning. Principally as I need some cash to pay off a chunk of the mortgage before the year end, but also a 30'odd% return in three months isn't too bad.

I like the story here, but....even discounting the cash, the rating is not that cheap, there were lots of caveats in the trading update and clearly there is execution risk associated with the number of small bolt-on acquisitions.

Will keep a close eye on progress and may well come back in 2014.

In the meantime GLA.

Techno

[battlebus2] 05/12/2013 18:18

Welcome back Woodcutter, that GHF has definitely got the powers of persuasion :))
I hope to see 50p medium term and have added my proceeds from several sales CSG and TCM. Markets have overvalued a lot lately so i've liquidated quite a few from the portfolio but plenty of value here imv.

[woodcutter] 05/12/2013 12:36

i bought back in too a few days ago too thanks to ghf, i said it before he's very persuasive! Will continue to build based on performance. Made a nice little return last time so hoping for more of the same. With hindsight perhaps i should have held but you don't get poor taking a profit.

Woody

[battlebus2] 28/11/2013 16:25

Geezzz! welcome onboard Ali, as you say a great company with great prospects.

[investali] 28/11/2013 16:18

Guess who has joined the Ideagen NHS revolution?? Thirty pence for starters BB, this company has it all in place.

Ali.

[cheshire man] 28/11/2013 16:11

Indeed bb,,,,,,,,,nice tick up today

[battlebus2] 28/11/2013 15:49

Looks likely to push on to the thirties now with plenty of buys today.

[cheshire man] 20/11/2013 09:08

Market likes it :-)

[yump] 20/11/2013 08:45

GHF
Crossed posts there ! I won't take over - just thinking aloud...

[yump] 20/11/2013 08:40

By my reckoning, £400,000 on the bottom line for IDEA would generate another 0.3p per share in earnings. Then you can add on any gearing and extra sales they get because of cross selling.

Not bad when finals showed adjusted EPS at 1.49 pence. Another 0.3p is a 20% rise, or a bit less on the year to 2014 forecasts.

Not that figures are everything. It feels like the right sort of acquisition at the right sort of time, if contracts are generally picking up.

[glasshalfull] 20/11/2013 08:39

Lanzarote - Yep, this is a very positive development.

Pentana provides software that is used primarily to plan and manage internal audits of a client's financial processes and systems. This allows for the adoption of further risk and compliance software for policy and process management...cue Ideagen's existing product base...Ideagen therefore has a ready made client group to a new vertical market.

So, they have bought a great recurring revenue base; cross selling opportunities & also ability to remove £400k through efficiency savings.

Looks an excellent deal to me & FinnCap have raised EBITDA by £500k for next year and EPS moved up to 2p, PER 13....and they will still have £3/£4m net cash.

Well done DH & team!

Regards,
GHF

EDIT - yump beat me to it ;-)

[lanzarote666] 20/11/2013 08:16

Paying £2.25m or £3.05m for a business making £10k of profit. Even with the £400k of savings that is still 5.5x or 7.5x multiple.

I read that positively in that they must feel pretty certain that they will deliver on this and exploit the opportunity within the accounting firms;

"The combination of Pentana and Ideagen will enable the enlarged Group to rapidly develop new markets and we believe provides an outstanding opportunity to leverage the growing risk and compliance outsource market. We are confident that we can make the Pentana business significantly more profitable over the next 12 months as we integrate it into the rest of the group."

[battlebus2] 20/11/2013 07:24

Yep can only be good.

[jakleeds] 20/11/2013 07:07

Looks like a decent acquisition...

[themachine99] 19/11/2013 21:24

About 160 in the UK......most dont have systems due to inertia created by the national programme (now disbanded)...if each is worth 400k....there is a big opportunity here !

[lanzarote666] 12/11/2013 14:01

Anyone for Darts. How many NHS Trusts are there to go?

'Ideagen Plc, a leader in information management solutions to the NHS and corporate sector, has signed up Central Manchester University Hospitals Foundation Trust for its leading electronic content management solution and services.'

From the Company website today...

[hastings] 07/11/2013 19:11

Small comment here,

[techno20] 07/11/2013 08:09

Short article in today's Times.....

Tiddler to Watch

"Shares in Ideagen rose by 4.75p to 26.75p as the IT company announced a maiden dividend of 0.5p and reported strong revenue growth in a six month trading update. David Hornby, the chief exec, said that the AIM listed company, which makes regulatory software, was benefiting from work dismantling the NHS's failed IT programme"

Apart from getting the divi wrong - nice to see profile building.

Techno

[yump] 06/11/2013 22:43

Yes, thanks for the header GHF. Proper detail - made my investment all the easier.

If they are confident of full year to next April, then things have got to be going pretty well, as we're only a month into the second half !

[lanzarote666] 06/11/2013 16:16

What a lovely day for holders. Up 20%.

As well as the positive news release, there are two aspects that would have introduced new buyers to this stock today.

Some funds and investors will not hold stocks that do not pay a dividend. Although the 0.05p is paltry in amount, it will mean that some will now consider for inclusion in their portfolio.

The move through 25p should see a close at an all time high, often a trigger for buyer interest.

With some positive press coverage later in the week we may yet test 30p in the next seven days.

[aishah] 06/11/2013 12:45

Healthy H1 for Ideagen:

[cheshire man] 06/11/2013 09:59

Lovely :-)